Our 10 tips to bookkeeping like a pro.
Bookkeeping can be confusing.
At Rosemary Bookkeeping, we know that better than anyone.
So, sometimes you might need a helping hand.
Here are some top bookkeeping tips from our experts that’ll make your bookkeeping a breeze.
Procrastinating is a no-no
Are you a procrastinator who leaves everything until the last minute?
Well, with bookkeeping, you can’t be!
It can quickly get out of hand and pile up on your desk.
As a small business, it is imperative that you keep to financial deadlines like Making Tax Digital (MTD).
If you don’t have time to do your bookkeeping while running your business, it might be time to outsource to help your capacity.
Avoid bad filing systems
You must keep your old receipts and file them correctly alongside relevant paperwork.
If you’re reading this and thinking, “Oh dear, I don’t keep my receipts,” – don’t worry.
There are plenty of business owners like this around the UK. Trust us!
Here’s a good habit to get yourself into:
When you get in the office every morning, pop your receipts in a folder.
Even if this is being filed correctly later that day, at least you’ve made a start.
Are all of your invoices and bills in sequential order?
If they aren’t, then they should be!
This will make life much easier when dealing with deadlines, audits etc.
Don’t mix business and personal expenses
If you’re bookkeeping for yourself while mixing your business and personal expenses, you’re making your bookkeeping a lot harder.
You would have to sit and sift through hundreds of receipts and separate them into business and personal.
Keeping these expenses separate will spare you this headache and give you time to do other things.
When the tax return deadline comes around, if you’re organised and have split your business and personal expenses, you’re more likely to pay the right amount of tax for your business.
Set a monthly date to sit down for a few hours to get your bookkeeping and accounts for the last calendar month.
If you feel like you’re bogged down with too many other tasks, you can always contact Rosemary Bookkeeping to take over the bookkeeping side of your business.
An easier way to keep an eye on and make your bookkeeping easier is to ensure all business transactions are paid on your business card and not with cash.
This is obviously, because of the information your bank would provide on a statement; amount, date and the recipients/company name.
Have distinct employee classifications
Many businesses have different classifications of employees.
Be they full-time employees, part-time employees and independent contractors.
Keeping these separate and correctly classified is vital to avoid overpaying taxes or misfiling.
Backup, backup, backup!
We all know what technology is like.
It can turn off or have an inconvenient error at any time.
This is why backing up your data securely on a cloud-based platform is extremely important.
You must ensure this is a secure platform that complies with GDPR to guarantee the safety of your data.
Concentrate on a bit of light reading
You would be surprised how many business owners don’t read financial statements and add them to their procrastination pile.
There are plenty of reasons why financial statements can help with your business and avoid a financial breakdown.
Here are a few:
- See current/upcoming financial trends within your business sector
- Gain insight into maximising your tax deductions for the year
- Share with existing/potential investors how your business is performing
- Stay in control of all of your cash flow
Choose the right bookkeeping software
It’s vital to choose the right bookkeeping software for your business.
There are many different types, from cashbook-only software to that that covers everything from ledgers to foreign currency transactions.
Here is our recent comparison of some of the different bookkeeping software.
Outsource your bookkeeping
If you, the business owner, are also doubling as the office administrator/bookkeeper, you won’t have time to do the most crucial thing, grow your business.
That’s why outsourcing your bookkeeping can benefit you and your business.
Outsourcing is also cost-effective and more accurate.
You’ll only need to pay for the hours worked on your accounts rather than paying a monthly wage for an in-house bookkeeper.
You will also get the necessary work done on your accounts professionally, so you can be confident they are consistently correct.
If you are confused by the bookkeeping side of your business or don’t have time to dedicate to bookkeeping, find your nearest Rosemary Bookkeeping expert to see how we can help you today.