Bookkeeping can be a tough task to manage as a new or small business, however, there are ways you can make it less stressful. The easiest way is to brin g in the services of a bookkeeping company. It may seem like an additional cost for your business but for the time it will save you, in the long term, will benefit you and your company, plus you’ll know with a professional bookkeeper that you’re getting the job done properly.
If you do decide to start your business running the bookkeeping yourself here are some top tips for making it a lot easier and less stressful.
- You need to allocate time each week that is devoted solely to managing your books, these regular reviews will show you how your business is doing and it will allow you to ensure you have complete control over your cash flow. It’s really important you keep on top of your bookkeeping.
- It is recommended that you open a bank account just for business earnings and expenses, keeping your business transactions separate from private transactions will be the best way to control your business cash flow easily. This is a legal requirement if you are a Ltd company.
- There are lots of accounting software systems available on the market, speak to a bookkeeper to see which accounting software they recommend if you are unsure of the best programs and systems for you. Make sure you back up these files regularly.
- Make sure you get all tax and compliance obligations right, if you employ staff make sure you register for this and pay staff , PAYE and National Insurance on their behalf. There are lots of documents and obligations you need to be compliant with so keep on top of these to save you from last minute panics.
- Keep your receipts. Anything you buy on behalf of your business you need to keep the invoices and receipts for, you need to keep financial statements showing profit and loss and you need to keep statements of bank accounts and credit cards. Updating these reports regularly will save you dredging through piles of receipts at the end of the year.
Have you got any top tips to share with other small or start up businesses in Peterborough that want to manage their bookkeeping themselves?