Bookkeeping and accounting can be an overwhelming task even for the most experienced business owners; however, there are a couple of straightforward strategies that can keep you on top of your financial records.
It can take a lot of time to prepare your accounts, especially if all your bookkeeping is unorganised. Here are some top tips for keeping your bookkeeping organised:
What should I have in my accounting records?
Your accounting records should be built up of:
- Bank statements
- Supplier invoices
- Customer invoices
- Business credit card statements and receipts
- Business expenses
How can I keep all of my records more organised?
- Make sure to file all your invoices in a safe place, preferably in alphabetical and date order so they are easy to find at a later date.
- Use a separate business banking account for all of your business transactions. This way when it is time to do your accounts it will be a lot more organised and less time-consuming.
- Keep and file all of your cash, credit card and bank transactions
- Keep backups of your computer records so all of your important data isn’t lost if something were to happen to your computer.
- Keep all of your receipts for cash payments in one place, perhaps a file or even a box. That way when it is time to do your accounts they will all be in one spot and not scattered in various places.
- Keep good records of all income received and track any debts.
- Get into the habit of setting time aside once a week or once a month to do your bookkeeping
It is a good idea to digitise paperwork where possible. Now with the new making tax digital scheme, there are more and more software’s available to help with your bookkeeping. Cloud bases software like QuickBooks, Sage one and Xero are very helpful in keeping all your bookkeeping organised. They are an easy way to keep your books up to date and secured securely. You can even connect your bank account to most cloud-based software’s so it updates your transactions automatically. You can input any expenses and income easily with a few clicks.
By keeping your bookkeeping and accounts in order you will free up valuable time and reduce stress when your accounts are due. If you need help or advice with your bookkeeping and accounts please do not hesitate to contact us here.