Bookkeeping can feel difficult when you are a beginner, but the good news is that it becomes easier over time. Larger businesses will have their own accounting function that includes bookkeepers and accountants, but small businesses and startups may find they need to handle their own books, especially when they are starting out. Let’s look at some top tips to make bookkeeping easier.
Keep business expense records
Business accountants such as https://www.hazlewoods.co.uk/expertise/business-accountants/ are likely to say that their top tip for bookkeeping is to always keep records of your expenses. You can then speak to your accountant to obtain advice on any expenses you can legitimately deduct. It is important to keep detailed records for items you plan to claim, and you can do this quickly by scanning receipts and digitising them. You can also use a business bank card for your purchases to further simplify things.
Use time tracking software
Using cloud-based time tracking software makes it far for your employees to clock their working time on their phones or devices. This is hassle-free and makes your life easier by recording overtime. There are solutions for time-tracking in all industries; what’s more, they can generally be integrated with bookkeeping software.
Check your accounts receivable
Your customers not paying on time is bad news for your cash flow. Avoid this problem by keeping on top of payments due and nudging customers when they are paying late. If they have financial difficulties, set up a payment plan to do your best to recover what is due.
Keep your tax deadlines in mind
It is important to have money set aside for tax bills and pay by the deadlines to avoid fines. Set reminders in your calendar so you aren’t caught out and sign up for updates from HMRC.
Obtain help
It is important to ask for help when you are stuck. Whether your business account or HMRC, there will be an expert who can help you with all bookkeeping issues and enable you to get it right first time.
