Top 10 Bookkeeping Tips
Does this sound familiar?
You work hard every day delivering your product or service. Every Monday you promise yourself that this week you will get organised and tackle the intimidating pile of paperwork on the corner of your desk. Only to find that by the following Monday the pile of paperwork has got bigger and you make yourself the same promise all over again.
For many business owners that intimidating pile of paperwork is made up of invoices, invoicing, receipts and bank statements. Bookkeeping, and it is the one thing that they dread the most!
Many small business owners try to be an expert in all aspects of their business but Bookkeeping is the one thing that causes the most stress and gets in the way of delivering their product or service.
One of the key tasks to running your small business is to get your bookkeeping right. Here are our top tips for taking the hassle and stress away.
It sounds easy but we all know it’s easier said than done. The easiest way is to develop a system and stick to it. It can be as simple as putting your receipts in the same safe place at the end of every day, the last thing you need is to be trying to find a fuel receipt months later that you left in your pocket . All the little things you do every day add up to take the pain of Bookkeeping away.
Little and Often
Paperwork can be intimidating especially when faced with a large pile of invoices, receipts and bank statements that has been growing ever bigger for months. If you can set some time aside to do a bit every day or every week you will be surprised how quickly it becomes habit.
Bookkeeping software can be daunting but there are on-line tutorials to help you find your way through. It also really helps you to stay on track and see how you are doing each month. For example, software automatically helps you to see if you are making a profit and who owes you money!
Keep Business and Personal Finances Separate
If you haven’t done so already open a business bank account. Keeping business and personal finances separate will make running your business a lot easier. Trying to remember what a receipt was months later, is even less fun than hunting for it in the first place!
Keep hold of everything
It is important that everything is kept and that you and any employees get a receipt or invoice for all expenditure including employees’ expenses.
Even petty cash receipts are important. Each time you dip into petty cash, you need to make some sort of record in order to keep track of the amount being spent. You should reconcile your petty cash account regularly to help you stay on top of where the cash is going.
Raise invoices for work completed
Raising invoices in a timely manner will have a positive effect on your cash flow and in turn your profitability. The sooner you invoice the sooner you will have money in the bank.
It is important to keep an eye on the customers who owe you money and to manage them effectively. Slow and late paying customers will harm your cash flow and in turn your business.
Payments such as VAT and Tax will creep up on you and there is nothing worse than getting a fine from HM Revenue & Customs. Set aside funds in a separate bank account, so that when it comes to pay those bills there is money available and no need to panic.
Can you do everything?
There may come a time when you realise you can’t do everything and your focus should be on your business not paperwork. Employing someone might not be an option as you don’t have desk space or there might not be enough regular work.
Outsourcing provides you with the extra skills you need when you need them the most.
If you find yourself with not enough hours in the day whilst still wanting to grow your business, maybe outsourcing is your answer.
With experts in Bookkeeping, Payroll, Sales and Marketing, Administration we can provide you with the extra skills you can use when you need them the most. It is a cost effective solution.