Starting a business is not for everyone, and those who take the big leap (and succeed) can truly say that their leap has been worth it. But if you are a new business owner, it can take up all of your time, so you have to be prepared for it and be committed enough to see it through. There are various aspects that make up your operations, and these include keeping track of your income, expenses, and other financial transactions. If you can keep proper track of your finances, you will have a better idea of how your business is faring – and where it is going. Correct bookkeeping is critical to the success of your business, but how can you do it right? Here’s how you can properly deal with bookkeeping tasks.
The daily running of your business involves a lot of tasks and responsibilities, but when it comes to bookkeeping, you essentially have to start by checking your cash flow. Do this at the beginning of the day, so you have a good perspective of how much cash you have on hand. Ensure that you have an adequate amount of cash to cover daily expenses, such as payments, the purchase of stock, and the like.
Every week, there are several things you need to do. First of all, make it a point to prepare and then send out your invoices. Make this a priority weekly because it will give you the cash flow you need to run your enterprise. Another thing you should do is record your financial transactions, and you can do this via a standard program like Excel or with special software, which comes highly recommended by bookkeeping experts such as www.kenbellaccounting.co.uk. Software designed for accounting and bookkeeping is now used by a majority of business owners as it makes it easier for them to keep records and generate reports of their financial standing.
You should also file your receipts and documents every week, keeping hard copies of your invoices and receipts for cash payments. Pay your suppliers and review your company’s cash flow to ensure you have enough for the near future.
Every month, make the required payments to HMRC and settle payroll for your staff, and do a review of any payments that are incoming. Check if you need to follow up on any late payments. Additionally, assess your bank statements, review your monthly profit or turnover, and review any payments you still need to make. If you can, it’s also best to make an advance payment on your VAT.
Your annual responsibilities include filing your self-assessment tax return if you are a sole trader or filing your annual accounts with Companies House if you are a limited company. You also need to settle your income tax and pay your NI contributions based on what you have earned.
All this may seem complex, and it can take time. If you feel you need professional help with an accounting or bookkeeping service, you can weigh up the cost of the service based on your requirements and the overall time it takes for you to accomplish your tasks. Getting help is a good option if you would like to focus more on your other responsibilities.
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