Here are some simple bookkeeping basics tips for your business. Putting some simple procedures in place can assist you business, rather than trying to complete all your accounts at the last minute.
- Complete all your bookkeeping on a regular basis. This may mean putting an hour or two aside each week to update your records.
- Keep all your records separate. Try not to mix your personal records with business receipts, where possible file all your paperwork as you go.
- Open a separate business bank account. It is much easier to keep track of your business finance if it is in a separate bank account to your personal finance.
- Complete credit control on a regular basis. There is nothing worse than receiving payments late from customers, by keeping in contact with them you may be able to speed up the payment process.
- Make sure you claim all your business expenses. There are many business expenses that you can claim including mileage, telephone, home office and general expenses. Make sure you claim as many of these as possible to reduce your tax bill.
- Keep to all dates especially from companies house and HMRC. As a business there are many dates that you need to keep to including, PAYE, corporation tax, annual returns and self-assessment tax, ensure you keep to these dates, there is nothing worse than getting a late fine.
- Reconcile your bank account. When you receive a bank statement make sure that everything is posted to your accounts, if you use a software package your bank balance should be the same as the statement.
- Use the best accounting system for your business. Choosing the best accounting system for your business can be difficult, but it is worth spending some time looking at the different options including, spreadsheets, paper based and accounting software. If you are not sure speak to your accountant.
Further information can be found on our bookkeeping basics section.