Do you look after your own bookkeeping?
Many businesses choose to complete their own bookkeeping, while others look to outsource this. There is no right or wrong decision but there are some things that you can do to help to make the process easier. Here are some top tips to help to keep you on track:
Don’t wait until the end of the month to scramble around for invoices and receipts. Have a file, either paper, digital or both, and store invoices and receipts daily.
Check your bank account regularly. Look for payments in from customers and make sure you keep a record of these, consider what bills you have to pay and what that will do to your balance. It’s also important to do a reconciliation monthly.
Run regular reports. You will only be able to make informed financial decisions about your business if you have a clear view and understanding of your finances. Digital bookkeeping software makes running a regular Profit & Loss or debtors and creditors report much easier.
Keep your business and personal finances separate. If you find that you are using your personal account for your business it will very easily become confused.
Don’t forget about your tax. Many small businesses don’t make provisions for their tax and find at the time of completing a self-assessment they can become stressed and anxious if they don’t have the money set aside. Look at opening a business savings account and putting aside 25-30%.
Find an accountant that you trust and can advise you on areas of your bookkeeping where you might have concerns. Don’t wait until the end of the year to open this dialogue.
If you get overwhelmed by your bookkeeping, don’t ignore it. You’re more likely to let things build up if you are struggling with it or don't want to do it and then it can be hard to get things back on track. Seek help if you need it.