As the economy picks up and we are seeing an increase in new sole traders and limited companies, we thought this would be a great time to have a look at a few basic bookkeeping tips to help you keep on top of your finances from the start!
1. Get Into A Routine
Scheduling routine times to go over your books is a vital way to prevent stress when the financial year comes to an end. We suggest using Google Calendar or a planner to find time once a week to update your books. This will keep the task manageable and save you some headaches going forward.
Even if you choose to outsource your bookkeeping to a professional, this practice will keep you aware of your company standing and allow you to plan for the future.
2. Keep Your Records Organized
All businesses should keep a record of their sales, expenses and bank transactions. It is good practice to store these files for at least 6 years.
Maintaining your records either manually, in a box/folder, or digitally will make your life much easier come the end of the year.
Our top online accounting software packages for small businesses blog can also advise on the best option for your business.
However, if you don’t want to take the online route, we can provide spreadsheet templates for you to use.
3. Separate Your Personal And Business Finances
Having a separate bank account and credit card for your business will make it easier to navigate your records. Not only will you be able to detect discrepancies in cash flows, you will also be more accurate in claiming tax deductions for your business costs.
You can learn more about this by registering for our next Startup Webinar.
4. Take Control Of Accounts Receivables
The best way to stay on top of your accounts receivables is by setting standards early on. This includes sending out invoices with clear terms of payment and communicating potential consequences if payments are missed. When deadlines are approaching, do not hesitate to follow-up and send reminders. Without consistent credit control, your business is at risk of having a negative cash position.
5. Find A Good Advisor
Small business owners often find themselves stressing over technical requirements that do not directly impact their bottom line. By outsourcing your bookkeeping to a professional, you can save your company both time and money.
A good advisor can:
- answer specific questions
- teach you how to effectively navigate hurdles
- serve as a fresh set of eyes to identify and solve mistakes
Here at Accountant Online, we offer accounting services for new startups that aim to meet your compliance obligations, while keeping costs low.
Accountant Online is a firm of award winning Chartered Accountants serving Ireland and the UK. We understand how important it is for you to meet your compliance obligations, while minimizing your tax liability. We aim to save our clients money without compromising on the quality of our service.