Business is all about profit and profit is all about money. This also affects your personal income tax.
Hence, businesses have to keep a close watch on how much money they make and keep record of it not just for their own reference, but for the government officials and documentation.
Bookkeeping can be quite challenging and you might find yourself struggling to balance your books each month.
Here are 10 little known online tips that can help you save time on bookkeeping.
1. Look for Simple Online Programs
Most entrepreneurs are not sure where to start and therefore they dive into the depth of bookkeeping and search for software and programs that can help them with keeping their books. However, there are various online software and programs that can simplify your bookkeeping efforts which you can use. We recommend Xero to our VIP clients.
2. Different Online Accounts
It might seem that keeping different accounts can be troublesome, but it’s the other way around. Keeping your personal and business online accounts separate will help you to divide your finances in the right way and avoid confusion.
3. Keep Records of Everything
Its important that you throw nothing in the dustbin, even if it’s a small invoice that doesn’t really bother you. Scan copies of receipts to their expenses claims and update it online so that you can refer it whenever you want. We setup Dropbox free for our VIPs.
4. Divide Sales and Purchases
It can be confusing to put sales and purchase invoice together and that could lead to more confusion when you’re going through them. Filing them separately is a better way to keep things under control.
5. Update Daily
You might be having very busy days at work and your business could be flourishing, but don’t skip updating your online books on a daily basis because that will allow you to keep things under control.
6. Petty Cash Receipts
You might not be bothered about petty cash, but every time you give out petty cash you need to keep a record of it and therefore you need petty cash receipts.
If you want a quick & easy way to work out how much you can claim by using your home as an office click here for our calculator.
7. Control Your Debtors
If your customers take a while to pay your invoices, you must keep a close watch on your debtors and ensure that they make payments on time. Remind them on time to ensure quick repayments.
8. Daily Online Banking
If your business receives cash or cheque payments on a daily basis you must deposit them in the bank at the earliest. This will reduce the chances of funds getting lost or stolen and you can record it in your books on time.
9. Plan Tax Payments
Plan your tax payments in advance so that you don’t have to panic at the last moment or get fined from HMRC. We recommend saving 20% of your income each month towards tax bills and unplanned expenses that pop up.
10. Follow a Routine
It is hard to break a daily routine and therefore make sure that you follow a routine to ensure you maintain your books, keep receipts and do a bank reconciliation regularly.
Want help today? In the event of tax, always call Tax Twerk.
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