Sales and purchases daybook

What the sales and purchases daybook does

A daybook is the simplest record of what you sell and buy. Record each transaction with the date, the other party and the amount before VAT, and the daybook works out the VAT and the total, and shows the sales, the purchases, the VAT on each and the VAT payable or refundable, ready for your VAT return.

Who it is for

Small VAT-registered businesses, bookkeepers and shop owners who want one simple record of sales and purchases.

How to use the workbook

1. Check the VAT rate on the Rates sheet.
2. Record each sale or purchase on its own row.
3. Enter the amount before VAT; the VAT and the total are worked out.
4. Use the totals at the top for your VAT return.
5. Save a copy under a new name for each month or year, so earlier records stay as they were.

What is inside

• Sales and purchases in one list
• VAT and total worked out for every row
• Totals of sales, purchases and VAT
• VAT payable or refundable at the top
• Summary by type with a chart

The workbook has these sheets: Instructions, Daybook, By type, Rates. The main table has the columns Date; Type; Customer or supplier; Description; Amount before VAT; VAT; Total. Yellow cells are for you to fill in and grey cells calculate by themselves, so leave the grey cells alone. The example rows show how it works; type over them with your own entries.

Tips for getting it right

• Record transactions the day they happen.
• Keep the invoice or receipt for every row.
• Only claim VAT on purchases with valid tax invoices.
• Check the totals against your bank statement each month.

Why keep this record

Accounting records let you answer three questions at any time: what came in, what went out and who owes whom. Kept consistently they also make tax returns, loan applications and the sale of a business much easier, because the evidence is already organised. Entering transactions the day they happen is far cheaper than reconstructing them at year end.

Questions people ask

Do I need to know Excel formulas? No. Type into the yellow cells and the rest is worked out for you. The formulas are visible if you want to see how a figure is reached.

Can I add rows or change the layout? You can add your own columns to the right and your own notes. If you insert rows inside a table, copy the grey formula cells down so the new rows calculate too.

Will it work on my phone or in Google Sheets? Yes for viewing and typing, but dropdown lists and the charts look best in desktop Excel or LibreOffice.

Keeping it safe and up to date

Good accounting records are a legal duty as well as a management tool: keep the supporting receipts and invoices with the workbook, and keep each year's copy for at least five years. Work on a copy, never on your only file, and back it up.

Read how to keep business records for KRA for the wider picture. Free calculators that go with it: Vat calculator, Vat return calculator. See more accounting templates or ask us for a custom one.

The workbook works in Microsoft Excel, LibreOffice and Google Sheets. It is a tool to help you work out and record figures, not tax, legal or accounting advice, and it is not affiliated with the Kenya Revenue Authority. If something does not work as described, contact us and we will put it right.

Related guides, calculators and templates

• Free calculator: VAT Calculator
• Free calculator: VAT Return Calculator
• Guide: How to set up an M-Pesa till or Paybill for your business and account for it
• Guide: How KRA uses data matching and what it means for you
• Guide: How to protect your business from fraud and theft
• Another template: 13-week cash flow forecast
• Another template: Accounts payable ageing schedule
• Another template: Accounts receivable ledger (up to 1,000 invoices)

Need something different? Request a custom template, browse all guides or see every Excel template.