Open a Business Account
Being forced to explore through too many statements for a little but crucial financial transaction is the worst. You may lose track if you haven’t segregated your personal and corporate funds, which always combine into one account.
Open a new bank account to separate your personal and corporate finances so there’s no confusion. Financial information will be easy to access when doing your books.
Budget for Taxes
Budget for tax as you go to avoid a huge bill when the taxman comes. Set aside some of your income in a savings account or similar account so you can simply pay off your tax debt with peace of mind.
Always organise records
If looking through one account for personal and corporate finances is difficult, crowded records will make bookkeeping considerably harder.
Keep your records structured regularly, not just once.
Track Your Costs
A company credit card can help you track all your business costs, which can be challenging. Simply categorising your bills by expense type makes this easy.
Example: automobile mileage. If you go far for meetings, you may track your miles and costs.
Keep Daily Records
Keeping daily records is a basic tip. Without proper daily records, tracking your business’s finances is tough. Being able to quickly locate documents that are neatly arranged saves time. Having organized your records will come in handy if tax deadlines are fast approaching and you’re busy and don’t know where to search.
Correct records every day and avoid mistakes while submitting your taxes.
READ MORE: BOOKKEEPING BASICS: A BOOKKEEPING GUIDE FOR SMES
Leave Audit Trail
You must leave an audit trail if you do your books manually. The software can rapidly and easily retrace your financial operations, making record-keeping more effective.
You can quickly trace an error if you have an audit trail and organise your bills.
Monitor your accounts receivable. Late-paying customers can negatively affect cash flow. Know when your receivables are due and respond quickly when they’re overdue.
See if you can arrange to obtain the money you’re owed as quickly as possible, as waiting can hurt your cash flow.
Remember Tax Deadlines
The tax deadline may stress anyone. Set a reminder so you have enough time to file your taxes correctly. By keeping precise records, you can send your returns on time and avoid HMRC penalties for inaccuracies.
You prevent undesirable penalties.
Utilize Software Now
Digital tax can save you from storing mounds of papers and receipts because year-long books may be done in minutes.
Digital apps help you organise your incomings, outgoings, and everything in between, making financial records easier to maintain.
While it may seem like another load to add to your books, certain apps include basic and easy-to-use features that make the procedure efficient and painless.
Instead of feeling overwhelmed, an accounting app will make doing your books easy, providing you peace of mind.