Bookkeeping is an essential task for any business. Big or small, established or at day 1, it’s something you need to do if you want to stay on track and keep compliant as a business. And while you might think it’s a small thing, the tasks involved can add up quickly. For example, as part of your day-to-day running, you will need to:
- Send invoices
- Pay bills
- Chase late payments
- Process payments
- Keep track of your expenses
- Stay compliant with tax regulations and paying your tax bill
All of which can pile up very, very quickly! But staying on top of your bookkeeping from day one makes all of these things much easier to manage, and means you can get a clearer view of your business performance. But if you’re feeling overwhelmed or drowning in receipts, how do you start? Well, here are 5 steps to get you going.
Bank Accounts
One of the absolute basics that every business needs. I usually recommend that you set up a separate bank account for your business, since this makes accounting and bookkeeping a whole heap easier. Reconciling your accounts is much easier when you don’t need to worry about filtering out personal transactions, and lots of banks will offer business accounts that are both physical and online-based and charge minimal (or no) monthly fees.
Even if you’re an established business, it’s always worth reviewing your banking. Many banks will offer special discounts or deals for opening new accounts, cash bonuses, and even free access to software. For example, Natwest Business customers get free, unlimited access to FreeAgent!
Bookkeeping Software
Thanks to MTD, digital bookkeeping software isn’t really optional anymore. LTD companies have to submit quarterly returns with HMRC digitally through their accounting software, which means if you aren’t signed up with one already, that should be on the top of your to-do list. Signing up to an online bookkeeping platform is the easiest way to run your business financials, and there are a lot of different solutions out there to choose from. FreeAgent, Quickbooks, Xero and more, give some a try and find one you like. If you aren’t sure how to do this, give me a call and we can help you set it all up.
Staying on Top of It
Once you have everything up and running, the trick is to keep on top of it all. It’s important not to let your bookkeeping and reconciliations build up, as it becomes even more difficult to deal with. And yes, while several years’ worth of receipts in a plastic bag can be sorted through and reconciled, (believe me, I’ve done it!), that doesn’t mean you should! Instead, try to put aside a little time each week or month to go through the previous period and reconcile everything. Little and often is much less complicated (and soul-destroying) than going through 12-months of bank statements in one go.
Make sure you’re keeping all of your invoices and the receipts for anything you buy for your business. If you’re using online software, you can even snap a photo of the receipt and upload it straight away with connected apps like Apron, which makes your bookkeeping a breeze.
Your HMRC Obligations
At this stage, you’re all set up and you’re managing your bookkeeping on a regular basis. Now you need to find out all of the dates HMRC need you to submit things. These will be different depending on whether you’re self-employed, a limited company or a partnership, and whether or not you’re registered for VAT. There might be multiple things you need to file for, which is why it’s important to check what your submission requirements are and put them in your diary so that you don’t miss any. Add in reminders in advance so that you have plenty of time to prepare.
Ask for Help
If you find yourself struggling to keep up with your bookkeeping, or you don’t understand something, it’s important that you don’t bury your head in the sand. Reach out to a qualified bookkeeper for advice or support, and make sure your books are kept in good order. We can help you understand how things work, answer any questions and even support you with your day-to-day bookkeeping.
At Bluebell Bookkeeping and Admin, I meet a lot of business owners who are feeling a bit lost with their bookkeeping, or who are just starting out and aren’t sure what they need to do. I can work with you to guide you in the right direction, make sure you have the processes in place and even help you get set up with your software. I’m big on technology, so I’ll always have new ideas on how to use new technology to make your business more efficient. I can also manage your books for you going forward, so you don’t need to worry about that aspect of your business at all – just relax and focus on doing what you do best. To find out more, just get in touch with me today.