Basic tips to keep your books organised!Bookkeeping for small businesses and sole traders is not rocket science!
For the majority of people the task gets put off because their priority is running their business on a day-to-day basis. However, if left too long or ignored, it can become a headache, or a major issue - especially if you can't find all your receipts!
Sorting the problem is then very painful and stressful and can also become very costly - if the tax man is kept waiting!
So, don't bury your head in the sand! Here are a few easy (and very basic tips) to keep your books in order!
- Take action now! Put a date in your diary when you will make a start on sorting out your bookkeeping and then allocate yourself a day each month where you will set aside some time to update your information!
- Go shopping! You need to buy a few basic items of stationary to help you get started - a decent sized A4 lever arch file, a set of monthly dividers and some plastic A4 punched pockets.
- Be organised! In month order, simply place your bank statements at the front, behind those, put any copies of invoices you have sent out followed by invoices you have paid. Then in the plastic wallets place the loose receipts - don't forget to write on them, so you know exactly what they are for, as anything paid out from your account, without a receipt could be discounted by HMRC.
- Invest in a system! You need something that is simple, easy and accessible for you - and one that you will use! This could be anything from a simple Excel spreadsheet with formulas to a basic accountancy package, such as Xero, Quickbooks or Kashflow. Any of these options will allow you to simply input the information and the system will work it out for you.
- Invest in a bookkeeper!
By spending a bit of time doing the above, on a regular basis, you will find that your bookkeeping/accounts isn’t the daunting task you once thought. It'll become part of your routine and will give you knowledge of how your business is growing and where you are financially.
If you need any help or advice on how to get going with your bookkeeping please get in touch: email@example.com or call 01952 402 632 or 07814 690 878.