Here are some simple bookkeeping basics tips for your business. Putting some simple procedures in place can assist your business rather than complete all your accounts at the last minute.
Our Bookkeeping Basics Tips
- Complete all your bookkeeping regularly. This may mean putting an hour or two aside each week to update your records. Doing this will give you up to date reports, which can be essential for any business.
- Keep all your records separate. Try not to mix your personal records with business receipts; where possible, file all your paperwork as you go. With online storage, this is even easier. You can set up separate folders for each different category. Most modern online accounting software packages allow the document to be imported to the transaction.
- 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 from your personal finance. If you are a limited company, you must have a business bank account.
- Complete credit control regularly. 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. Read our section on credit control.
- 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. Read our section on claiming business expenses. We have also created an Excel expenses template free to download and use.
- 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, and 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. If there is a difference you will need to complete a bank reconciliation.
- 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.
You can find further bookkeeping basics tips in our bookkeeping basics section.