One of the most important things when running a business is to make sure you stay on top of your finances. Take a look at our top tips for keeping your finances in check…
Make sure you have your Unique Tax Code
First things first, you need to make sure you are registered with HMRC. Download the relevant forms for your business to ensure you are sent a Unique Tax Reference number, which you will need when you fill out your annual Tax Return.
Set up a separate business account
A separate bank account for your business payments and deposits will help you to keep on top of your finances. It’s far easier to track business-related payments if they’re not mixed up with your personal transactions. Research online to see which is the best business bank account for you. Remember, the Inland Revenue can ask for bank statements going back six years and failure to produce these can create delays in any investigation, so keep hold of your bank statements.
Hire a professional
Hiring an accountant can save you time and hassle, as they can be on-hand to give you advice during the year, as well as completing your tax return for you at the end of the financial year. Do your research and make sure you accountant is accredited with one of the national accounting bodies.
Keep your receipts in order
Keep all your receipts in a file, and log them in an Excel spreadsheet, or use accounting software to keep track of them. You need a monthly record of all your incomings and outgoings, including things like office rent, wages, business supplies, advertising, etc. This will help make filling out your Tax Return far less painful.
Keep track of your invoices
Create an online diary or email reminder system for tracking invoices so that you always know what amounts are outstanding. Consider using invoicing software to create, raise and track your invoices.
Set aside money for tax
Don’t risk facing a panic when the inevitable tax bill comes – plan ahead and set aside some money each month so that you will be prepared when you need to pay your tax. You might want to set up a standing order that automatically deducts from your bank account into a separate savings account. Many business bank accounts have a linked instant access savings account for this very reason.
- For more information visit the Government’s Business Link website for small businesses
Do you have any tips for keeping your finances in order? Leave a comment and let us know. For help with invoicing and billing, take a look at our easy invoicing software packages http://www.sliqtools.co.uk