If you’re just starting out in business you may not be quite ready to outsource your bookkeeping. There will come a time when you need to let go of your bookkeeping and hand your accounts over to a professional bookkeeper so that you can focus on growing your business. Until that time comes here are some top tips to guide you.

Be consistent

It’s best to keep on top of your transactions on a regular basis. If you’re not quite ready for investing in software then keep a spreadsheet of all your incoming and outgoing transactions. Make sure you keep any receipts to back up any expenses. There’s plenty of software out there to help you keep electronic copies but even just snapping a picture of your receipts and saving them in a folder in cloud storage is a start. Make sure you reconcile your transactions with your bank account, does the balance match your records? By keeping on top of your finances on at least a weekly basis it will be easier to see what discrepancies there are and get them resolved before they spiral out of control.

Do your research

Make sure you know what you can and can’t claim for when it comes to your expenses. This will depend on your business structure. For example Sole Traders can’t claim for everything which Limited Companies are entitled to, so make sure you are aware of what you’re allowed to claim so that you don’t get fines further down the line. If HMRC investigates you, which they don’t have to have a reason for (they can do random checks) , then you need to make sure you have evidence to prove your expenses. Make sure you set yourself reminders for any deadlines you need to meet such as submitting your tax return. If you miss these deadlines you will be fined and interest charged.

Keep your personal and business finances separate

This may seem like a really obvious tip but you would be surprised at how many businesses use their personal account for business expenses and vice versa. Having a separate business account and restricting the use to business transactions only will make it easier to keep track of all your transactions. 

Reach out to a bookkeeper for advice and support when needed

When your business starts to take off you will find that your bookkeeping is pushed to one side. Afterall that’s not what’s bringing in the money. Once this starts to happen, get in touch with a bookkeeper, just like Bluebells Bookkeeping. We can advise you on a package which will suit your requirements without breaking the bank. Our aim is to keep costs down for all of our clients, that means reviewing your current outgoings and finding out if we can save you money. We can also look into transactions which aren’t necessary in order to reduce your outgoings. Bookkeeping doesn’t have to cost you the earth and it is well worth the investment in order to ensure your paperwork is all in order.