One of the more time-consuming tasks of running a small business is keeping on top of your books, with mistakes incurring costly errors. Let your Worcester accountant deal with this for you.
Setting Up the Right Software
For many small businesses bookkeeping is carried out using a spreadsheet. But however good you are with a spreadsheet there will come a point where things don’t work as expected. Worcester Accountants can set up your business on cloud accounting software such as Xero or QuickBooks to ensure your business bookkeeping is up to date and correct at all times.
Reconciling Your Bank Account Regularly
Bank Reconciliation – this needs to be done monthly and an accountant will do this for you and highlight any errors, duplicates or missing transactions. This is something that needs to be done on a monthly basis and not left until the end of the year when it could take weeks to go through months of transactions and sort out any errors.
Keeping Categories Correct Throughout the Year
Miscategorised income or expenses can have a large impact on your tax liability and the way you view your business’ performance. Accountants in Worcester will apply the correct categories consistently to your book keeping records. This will ensure that you are separating items such as travel, materials and subscriptions accurately.
There is more on Worcester Accountants at https://www.randall-payne.co.uk/services/accountancy/worcester-accountants.
Organising Invoices and Receipts
We come across a lot of missing receipts and invoices when we start to work with a new client. There are some excellent digital receipt capture tools on the market that allow you to take a photo of a receipt with your smartphone and store it against the relevant invoice online. These are ideal for storing all of your paperwork in one place online and keeping it up to date in good time for your tax returns.
Producing Useful Management Reports
Your books contain much more information about your business than the amount of tax you owe. This information can be presented in simple management reports such as cash flow statements, trading accounts and reports of outstanding invoiced amounts on a monthly basis.
Having tidy books throughout the year will mean that tax returns are a doddle and you’ll be in a good position to apply for finance when required.