Set up a simple profit and loss account for your business
Business income: other
As well as reporting sales income, you need to report income to the business from other sources, for example:
- interest on business bank accounts
- sale of equipment you no longer need
- rental income to the business
- money you put into a limited company from personal funds
Recording other income
- Record equipment sales in your sales ledger, or on a separate schedule of assets if you prefer.
- Keep a record of any rental income, for example if you sub-let part of your office to someone else.
You must keep paying-in slips and/or bank statements to account for your additional business income. Ideally, you should be able to cross-reference this documentation to the above 'other income' records.
Subjects covered in this guide
Also on this site
HM Revenue & Customs
Institute of Chartered Accountants in England and Wales