When you first start a small business the accounting side of things can appear daunting but it's as simple as just making sure you start recording all your incomings and outgoings as well as all your expenses right from the start. Starting off the right way will definitely benefit your business.
If you are completely lost with your accounts, then think about hiring a bookkeeper right at the start of your business journey since it will work out much cheaper than waiting for your accounts to get in a mess, then it will be a time consuming as well as an expensive task for your bookkeeper to get your accounts back under control.
When starting out the key thing to remember is to ensure that your business finances are always kept separate from your personal finances, even if you are a sole trader, a separate bank account is a must, and keeping a good record of all your transactions is so important so do this from even before you start earning money. Record all your start up costs, you will be able to put these down as expenses so make sure you keep your receipts and they are logged.
For a list of business expenses you can claim for, download your FREE copy of the expenses list - Expenses List
Keeping your books in order does not have to be difficult, you can use a simple excel spreadsheet.
Or
just sign up to one of the accounting systems,
I would highly recommend FreeAgent (Free with Natwest, RBS, Mettle or Ulster Business Accounts) or Xero or there is Quickbooks or Sage (but I wouldn't really recommend Sage for a small business).
Using these are a great way to ensure all your accounts are in order, plus you can email your invoices directly from them as well as set up overdue invoice reminders so that your customers will be emailed once the invoice goes unpaid so this will help you keep track of payments. Also, you can add your accountant as a user so they can access your accounts when they need to file your End of Year accounts or Self Assessment to save you and them time.
Ensuring your business finances are in order also gives you piece of mind and takes the stress away when it comes to your End of Year or time to do your Self Assessment Plus, it will bring your accountants bill down because if your accounts are all in order, it takes your accountant less time to submit your End of Year and/or Self Assessment, which results in a cheaper bill.
Remember if you are late submitting your End of Year Accounts, or Self Assessment you will be stuck with a heavy fine so making sure your accounts are in order really does benefit your business.
Need any advice or assistance with your bookkeeping or just need some admin support or Canva designs, please get in touch.
Always remember an hour a month reconciling your accounts is the best way to keep your business running well. ☺
Written By
Heidi - Virtual Assistant
Creative Edge VA Ltd
If you would like any advice on Xero, I'm a Xero Partner so if you are interested in changing to Xero or you are struggling to understand how to use it please get in touch.
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