This month we are focusing on Bookkeeping and this week we look at – Why do bookkeeping – is it helpful?
Business Owners keep a lot of the financial details of their business in their heads. Doing so has its advantages: No new software to learn, no danger of a system crash that loses all your data, and you can tweak your budget as often as you need without sitting down at a desk.
But when you don’t have a system and some processes in place, unpleasant surprises can pop up, goals can be easily missed and important paperwork forgotten. Getting a better handle on your money can help you to make and keep long-term goals, smooth out the seasonal ups and downs of your cash flow and maybe improve your profits. It can also help you to stay out of trouble with the HMRC.
Five Top Bookkeeping Tips:-
- Regular bookkeeping
As much as you may not like the job, if you do it regularly – it not only ensures you have up to date information to make important decisions but it is easier to manage in smaller amounts.
- Plan for major expenses.
You’re less likely to miss business opportunities or have to scramble for a loan when the expenses become unavoidable.
- Set aside money for paying taxes.
HMRC can levy penalties and interest for not filing returns or making payment on time.
- Good Credit Control System In Place
Late and unpaid bills hurt your cash flow. Assign someone in your organisations to track your billing. Then put a process in place for issuing statements and reminders.
If you know of a local business that needs help with their bookkeeping, please do pass on our details