The management of your business’s accounts is something that you may not entirely be looking forward to, but it has to be done, nevertheless. Whilst recording your transactions can take time and effort, it’s an essential component of your business operations, and there’s no escape from it. It’s crucial to understand where your business is going and how it is currently faring, and it’s also a necessity when it comes to tax time. But if you want to do it right – and more efficiently, at that – here’s how to properly deal with your bookkeeping tasks for your business.
- Begin as soon as possible
No matter how pressed you are for time; you need to set aside a specific schedule for accomplishing your bookkeeping tasks. It’s not a wise idea to leave it at the last minute, and you should begin as soon as possible. Ideally, you should be recording whatever transaction you make as soon as you make it, but you can also make it a point to do it once every week for a few hours. Don’t forget to save your invoices and receipts and have backup copies as well. In business, as in life, it pays to be organised. You’ll thank yourself for it later on.
- Establish a good system
Speaking of being organised, you should try establishing a good system. Your system should be based on the kind of business you have, but the key is to separate your business income from your business expenses and categorise all of these according to their precise nature. If you are not sure about the kind of system you need to create, you can always turn to central London accountants from Griffin, Stone, Moscrop & Co. if you need accountants and professionals.
- Plan your budget with taxation in mind
Making your budget is already a given, but you should also plan your budget with taxation in mind. What does this mean? It means saving around 25 to 30 per cent of your overall profit and reserving it for taxation. This way, you can be more confident of your funding come tax time, and you needn’t worry about any funding issues. But, of course, it still pays to confer with the experts about this; they can give you the recommendations you need when it comes down to it.
Remember that you can also take advantage of tax incentives and rebates if you are running a business. For instance, a work trip counts as a business expense, and you can file claims for any work-related activity and the costs that come with it. In addition, if you work from your residence, you may even be able to claim a part of your utility bills and rental costs as a business expense.
- Take advantage of workshops
We should never stop learning if we are to get ahead, and with this in mind, you may want to take advantage of workshops. HMRC, for instance, can provide you with guidance on your VAT, how to properly set up your company (whether it should be a limited company and so on), and provide you with information on running and filing your payroll.
At the end of the day, you may also want to work with an expert, and there are many certified accountants and experienced bookkeepers who can take the burden off your shoulders.