Bookkeeping can be an overwhelming task but having a system in place can make it a lot less daunting! Here are five ways to take charge of your bookkeeping:
- Create a list of important tax-related dates and place it where it’s easily visible. If you have a permanent reminder of key dates you’ll have a better overall picture of what needs to be done by when.
- Implement a system that ensures you can maintain three sets of records:
- Cash book: keep a record of all the transactions into and out of your business account.
- Purchase invoices: keep a chronological record of how and when you pay your invoices.
- Sales invoices: again, maintain a chronological record of when and who you have invoiced, and when you get paid.
This can be done either using a paper-based method, a more progressive approach such as a spreadsheet in Excel, or an accountancy based computer package like Sage or Xero. A good system will help you keep on top of all your income and outgoings.
- Keep your personal and business accounts entirely separate. If you use your business account to pay for private items of expenditure or vice versa with your personal account, your accounts will be much harder to reconcile.
- Set time aside to do your accounts regularly and try to do your books in the morning – It’s tempting to do them at the end of the day or week, but this is when you’re likely to be most tired and potentially make mistakes.
- Get help and advice whenever you feel things are going astray. It’s counter-productive to let your accounts get on top of you as you’re more likely to make mistakes. If you feel like it’s too much, approach your accountant – they may provide a bookkeeping service for a reasonable price which takes the stress away from you.
Green & Co have a dedicated bookkeeping department who are trained on a number of different bookkeeping packages including Sage and Xero. If you would like to discuss your situation with one of our team, contact us on 01633 871122.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.