If you’re just setting up in business, your bookkeeper will have pressured how important it is to remain on top of your record keeping.
Although other elements of your business may appear more pressing, it’s necessary to set aside enough time every week to ensure that your books are to be able – keep placing it off, and you will quickly find that your accounts become unmanageable.
Here are five key ways to use charge of your bookkeeping.
- By using your bookkeeper, build a calendar or spreadsheet of important tax-related dates and stick it where it’s easily noticeable. When you have an everlasting reminder of key dates,you will have an improved overall picture of what needs to be done by when.
- Implement something that ensures you can maintain three collections of documents:
- Cash book – keep a record of all the ventures into and out of your business bill.
- Purchase invoices – keep a chronological record of how so when you pay your invoices.
- Sales invoices – again, maintain a chronological record of when and whom you have invoiced, and when you receives a commission.
Ask your bookkeeper if he or she can recommend appropriate accounting software for your business. A good program will help you keep an eye on all your income and outgoings, however,it’s essential that you receive the correct training. A badly used accounting program is much less effective than newspaper records and files. In any event, a good system can make your bookkeeper’s life easier and keep your costs down. Please remember if you decrease the accounting software route, make regular backups of your computer data.
- Keep your individual and business accounts completely separate. Even if you own your business outright if you begin to use your business bank account to cover private components of expenditure your accounts will be much harder to reconcile. In the event of a tax enquiry by HM Earnings & Traditions (HMRC) your private bank account will be cared for as a small business account if you are using it regularly to make obligations or lender any sales receipts there.
- With regards to the type and complexness of your business, try to be steady about when you do your books. It’s tempting to do them by the end of the day or week, but this is if you are apt to be most worn out and potentially make mistakes. Try to do your books in the morning – and remember the more frequently you choose to do your accounts the simpler they are to keep.
- Get insight once you feel things are going astray. It’s counterproductive to let your accounts can get on top of you as you’re much more likely to make possibly costly mistakes. If possible hire a part-time bookkeepers Melbourne to help you stay on the monitor – it’s liable to prove affordable in the long run.
Keeping current accurate records and regularly reconciling your accounts is your responsibility. As well as making your life easier as it pertains to your 12 months end, good record keeping will provide valuable financial information that will help you run your business better.
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