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Top Bookkeeping Tips For Small Businesses

Running a small business can be hard. You don’t have the resources or the cash required to waste time and money figuring out processes, so you need to get things right from the outset. Things like bookkeeping can be a particular challenge for a small business because if you’ve never had to do it before, it’s a massive departure from anything else that you’ve had to do. How do you manage to balance your books without making a massive mistake and landing yourself in hot water? Let’s take a look at some tips and tricks.

1. Stay Regular With Bookkeeping

The best thing you can do to make sure that your bookkeeping is kept taking over is to return to it regularly. Some people go months without looking at the books, and it really doesn’t help when trying to organise your finances. If you keep regular, weekly books, then you stand for a better chance of everything being cohesive and organised.

2. Keep Track of Receivable Accounts

It’s important to know who could be paying you money, which means you need to keep an eye on your accounts receivable when you set out to manage your books. Make a note of who is still to pay invoices or finish making a payment because it will need to be recorded properly, and it also helps you to know how much you’ve got coming in at any given point.

3. Think About Cash Flow

An important part of any business is cash flow. You need to think about your cash flow because it does relate directly to how well your books are managed. Lots of businesses don’t properly record what they spend and when which makes it difficult to provide accurate figures when paying taxes and submitting tax returns. Just keep an eye on your cash flow, and it will come back to benefit you later on.

4. Pay Your Taxes on Time

Nobody wants to pay taxes, especially small businesses that owe hundreds, if not thousands, in national insurance contributions and income tax. It’s perfectly normal to want to put off paying your taxes, which is why you should think about doing it on time.

This might seem like a pain, but paying your taxes quickly means that you can keep more accurate financial records, and there is a clear border between one business year and the next.

5. Consider Getting Professional Support

Because bookkeeping can be a challenge, lots of businesses make the sensible decision to use professional bookkeeping services to manage their accounts properly. Hiring trained bookkeepers or even an accountant means that your books and finances are watched over by a trained professional, which is useful if you don’t have any financial training or a particular ability with numbers.

Final Thoughts

Managing your books as a small busi can be difficult. However, it’s also not impossible, and there’s quite a bit that you can use to make the process easier for yourself. We offer our services as bookkeepers if you need any support, because we understand how important it can be to get the best possible financial support for your company.

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