K is for keeping good bookkeeping records! - A to Z Accountancy Top Tips
Okay so that’s a bit of a tedious link with K but keeping up to date records is important!
It is never too late to get organised and bookkeeping is essential when running a business.
Businesses must keep good records so that they can complete their tax returns correctly and pay the right amount of tax. If HMRC complete a record keeping check on your business, will you get a fine?
I’ve put together some top tips for bookkeeping!
- Set up a routine for regular bookkeeping. Put a slot on repeat in your calendar to work on your records. This might be daily, weekly, or maybe monthly. BUT NOT ANNUALLY like so many people!
- Have a separate bank account – if you are limited this is a must and it is such good practice for sole traders too as it makes identifying business transactions so much quicker.
- Use apps like receiptbank or hubdoc to scan in your receipts and invoices and this will make sure you don’t lose them and do some of your bookkeeping for you!
- Accounting software like Xero. You can produce your invoices and therefore these are already on the system and have a direct feed with your bank so that the transactions are included almost instantly. Giving you more time to do business.
- Use your up-to-date bookkeeping to plan for the future, whether this is goals and business plans or budgeting for tax. If you keep up to date you will have an idea of the profits you have made and the tax that will be due.