In business administration, it’s critical that records are kept comprehensively and you start as you mean to go on.
One such area is efficient bookkeeping and accurately recording everything that comes in and out of your accounts.
With a ‘tidy desk; tidy mind’ mentality, keeping on top of your accounting records helps minimise time and money spent further down the line.
AUTOMATED SYSTEMS
More traditional records, using the double entry method and keeping figures on spreadsheets, with manual reconciliation, unquestionably get the job done.
However, using online banking in conjunction with a cloud-based bookkeeping software provides a slick alternative.
By using this method, you will have synchronised, up to the minute records at your fingertips.
RECEIPTS
To ensure you maximise all the benefits available to you, keep a note of all receipts for all purchases made.
Following this golden rule and recording all business expenses will allow your accountant to ensure that he or she does the best possible job for you.
With the right set of available information, an accountant will be able to give you the necessary guidance on what kinds expenses are tax deductible which will save you money.
OUTSTANDING MONIES
Keeping a close eye on money coming in is crucial in good bookkeeping practice.
Alongside submitting timely invoices, it’s critical to know whose account is not up to date. For example, if a customer is late in settling an account, it may be a sign that they are in financial difficulty. If that is the case, it is advisable to tackle the issue head on and set up some sort of instalment plan.
By taking this tack, if the outlook is really bleak for your customer, you will at least get part payment.
GET EXPERT HELP
The most important consideration from the very outset of any fledgling business is to ensure you employ the services of an accountant.
Hiring any expert in their field means they can focus on the area in which they excel and you can focus on your business.
In addition, as experts, they have the information you need. For instance, an accountant will guide you on tax submission deadlines; what expenses you can set against tax and how to plan your finances to name just a few.
However, when handing your records to an accountant; accuracy is the order of the day. For instance, wherever possible, accountants need all expenses recorded in line with debits on your bank statement and all receipts recorded in line with invoices raised.
To learn more, get in touch with us today.
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