Bookkeeping is one of those tasks that’s essential for your business, but not at the top of your ‘tasks I love’ list! However, it often gets a bad rap, purely because it seems more complicated than it is.
With the introduction of cloud-based bookkeeping software, bookkeeping can be simple, intuitive and automated. So if you’re looking to get your bookkeeping system up and running, here are the top 10 tips that will make that job easier for you.
#1 Keep personal and business finances separate
Not only does this make it a lot easier and faster to manage your business finances, but it also stops the water from getting muddy. When you group your personal and business finances together you’ll inevitably spend money that belongs to your business and find yourself mistakenly investing your personal funds in your business.
#2 Use cloud-based bookkeeping software
Cloud-based bookkeeping software makes bookkeeping so much easier for you! There are some free and low-cost options out there, so have a look around and find the most suitable option for you.
#3 Use Receipt Bank
Receipt Bank enables you to capture an image of your receipts and input the extracted data into your bookkeeping software. You never need to worry about losing a receipt again or losing out on claiming expenses!
#4 Connect your bank in line with MTD regulations
When you connect your bank in link with the Making Tax Digital regulations, you’ll make reconciliation hassle-free and a lot faster than manual importation.
#5 Set aside time at least once a week to update finances
Bookkeeping is something that needs to be done regularly if you don’t want to get overwhelmed. So set aside time each week, to check your records, add missing entries and reconcile your accounts.
#6 Keep an eye on your receivables
It’s always good to know exactly where you are with your finances, especially when it comes to what you’re owed. Ensure clients are paying you in a timely manner and follow up, if necessary. Cloud-based bookkeeping software can be set up to send out reminders for payments and notify you of overdue payments if you set the functionality up in your account.
#7 Automate whenever possible
Talking of automation, make sure you’re automating whenever possible. Recurring invoices, payment reminders, receipts, transaction matching – are all things you can set up in your software, to help make your bookkeeping easier for you.
#8 Perform quarterly bookkeeping reviews
Take time out to give your bookkeeping account the once-over every quarter. Use this time to review your finances, including checking if you still need everything you’re paying out for and seeing if you’re on target to hit your financial goals for the year.
#9 Keep an eye on those tax deadlines
If you miss a deadline you’ll get a late payment penalty, which can be up to 25%. You’ll find a breakdown of the UK Self Assessment tax deadline dates here.
#10 Know when it’s time to outsource your bookkeeping
Not everyone is great with figures and it’s no different with your business bookkeeping. If it’s always stressful, overwhelming, takes up too much of your time, or becomes too difficult for you, look into outsourcing it.
Bookkeeping is one of those tasks that’s essential for your business but often preempted with dread. But it doesn’t have to be that way. Cloud-based bookkeeping software can help make it a lot easier and faster to action, plus the tips above will help keep you on top of your finances.
However, it’s also worth remembering that for some people, it’s a lot easier to simply hand it over to someone else to do. If it’s causing your stress or leaving you overwhelmed, take a look at the financial admin and bookkeeping services we provide and know that, if you outsource it, not only will the task get done, but it will free up your time and lower those stress levels!
