I’ve just registered self-employed and set up my Quickfile dashboard. I’ve been backdating my purchase and sales records to November when I started trading (which is more than I thought so glad I didn’t leave it any later!).
The majority of my purchases are paid through Paypal and a few through my Debit Card (both attached to my personal bank account); my sales are similarly paid through Paypal in the main with a few going directly to my personal bank account).
I have sifted out business transactions from both Paypal and my Bank Account and added them to Quickfiles; I did this manually before finding the automated Paypal sync function so I manually entered the transaction IDs to created invoices in order to correspond with the Paypal statement. I’m yet to do something similar for my Bank Statements.
My question really boils down to what additional records do I need to keep where transactions go through Paypal? In most cases I do not have separate invoices I can download. For example, I am part of a Facebook co-operative where fabric is imported from the US and this is done on a casual basis where I am “tagged” in Facebook (not by invoice) for (a) an amount of money for the fabric (b) an amount of money to pay Customs Charges and Domestic Postage in the US and © a payment for UK delivery charges from the co-op lead (these payments are made at different times in separate transactions).
These are all paid via Paypal as non-descriptive transactions to the co-op lead, simply a payment to “Mr Smith”. Where I have created Purchases in Quickfiles I have distinguished between these 3 elements and linked them to the Paypal transaction IDs but is that enough? Do I need to take screen shots of the Facebook community where I have been tagged for the specific payments?
Sorry for the long winded question, I want to make sure I am keeping sufficient business records so I don’t get caught out but I’m not sure to what degree each sngle transaction needs to be detailed/evidenced.