Bookkeeping is a vital task that all businesses need to conduct. Let’s face it; it’s hardly the most exciting job in the world, yet good record keeping is imperative if your business is to be a success. It is not uncommon for business owners to neglect this pivotal task and put it to the back of their mind until the end of the financial year arises. However, by doing this, not only are you giving yourself a mountain to climb, but it is extremely likely that errors will be made and you could end up costing your business more money in the process too. So, let’s take a look at some easy and effective bookkeeping tips put together by a firm of accountants in north london to help you stay on top of this aspect of your business.
- Invest in accounting software – Any top accountant in London uses software and they will advise that your company does too. There are many different software products for you to choose from, and thus it is vital to look for something that is suited to the needs of your business. You should also read reviews that have been left by previous customers and it is a good idea to go for cloud software to ensure regular backups and that you can access your information no matter where in the world you are.
- Allocate time each week to bookkeeping – The best way to keep on top of this aspect of your business is to ensure you allocate time each week and devote it to record keeping.
- Track billing effectively – You will need to keep a close eye on your invoices, as late and unpaid bills can have a detrimental impact on your cash flow, which can be especially damaging for small businesses.
- Keep receipts – A lot of people make the mistake of chucking out their receipts, and then they land themselves in trouble if they are asked to prove their expenses. Whether you do your taxes yourself or you employ the services of a chartered accountant in London, you need to keep your receipts and any applicable documents. This includes stocktake records, bank accounts, financial statements, records of payments to employees, invoices for goods and services, and much more.
- Track expenses – You need to make sure you keep track of your expenses effectively, as failure to do so could mean that you miss tax write-offs. One of the most basic ways to ensure this does not happen is to use a credit card solely for business purposes. You will then have full clarity regarding all of your expenses.
- Open a business bank account – In fact, this leads perfectly onto the next point, you should have a bank account solely for business use. One of the biggest errors business owners make is mixing their business and personal finances.
- Tax and compliance obligations – Last but not least, it is vital to ensure you have all of your tax and compliance obligations right. This is something a reputable accountant in London can assist you with. A lot of people don’t even realise they are disobeying tax regulations that are in place, and this can lead to substantial fines.