Check out these simple tips for keeping your accounts in order.
1. Use a separate business account
Make things easier for yourself by keeping separate personal and business bank accounts. This way it’s far easier to keep track of what your business expenses are, plus it will help when it comes to filling out your end of year Tax Return. Try to keep your personal and business receipts separate too.
2. Set up a petty cash fund
It can be useful to have a small amount of money available for low cost or unexpected purchases such as buying postage stamps, paper towels, or cleaning supplies. Make sure each expenditure is approved and recorded, and when you need to replenish the pot, don’t forget to record that as an expense in your accounting records.
3. Keep your files in order
Set up and maintain files such as Unpaid Customer and Supplier Invoices, Paid Customer and Supplier Invoices, Open Purchase Orders, Open Customer Orders , Monthly & Quarterly Tax Reports and Monthly Bank Statements & Reconciliations.
4. Accept Credit Cards
You may end up missing out on sales if you don’t accept credit cards. There is a small fee, but the advantage is you get paid almost immediately. Shop around for the best provider, checking out services like PayPal or Google Checkout.
5. Use a bookkeeper
Employ someone to keep accurate and up-to-date business records of your incomings and outgoings. A bookkeeper can also take care of paying bills, chasing debts and submitting tax forms.
6. Hire an accountant
Ensure that you fulfil all your tax obligations by using an accountant. An accountant can also provide advice on complicated tax matters.
7. Use accounting software
Using accounting software to raise and track invoices and credit notes will help make your accounting process simpler and more efficient.
8. Prepare and maintain a budget
It’s important to keep track of your finances and having a budget can help you to do this. Prepare a monthly budget to keep track of business income, expenses and losses and use it compare your performance from month to month.
Do you have any accounting tips? Leave a comment and let us know. For more information on how SliQTools can help you with creating, raising and tracking professional invoices, quotes and credit notes, get in touch.