In this brief post, we shall be giving you a couple of tips that will help make your business’ record keeping easier and less of a hassle.
First, you need to open a business bank account for all your business’ expenses and earnings. Your business transactions should be kept separate from your personal transactions to avoid confusion and unnecessary frustrations. Taking bookkeeping training London can help you understand more in this regard
Secondly, ensure that you play your role in taxes and compliance. The law requires that all limited businesses are registered. If the company’s turnover is more than £72,000, it’s required that you apply for vat registration. As such, you need to keep all receipts for all acquisitions to claim on your expenses.
It is also advisable that you get an accounting software that best suits your business accounting needs. If you are not sure about the proper software, you can consult a business accountant or a business consultant, who will advise you before you can make the purchase. I would software that integrates cloud computing.
The good thing with cloud software is that you will be able to access your financial information from literally any location in the world. Ideally, you can have an accountant work on the documents even when not on the company’s premises. As if that is not all, an accounting software with cloud technology will give you the ability to back up your documents online. However, it is essential that you keep backups of the data as an added measure of security. With such software, you’ll need to make backing up your files a habit.
It is also important that you keep all your receipts. The Taxation Office requires you to maintain records for at least five years. Some of these records include:
- The receipts and invoices that you provide for services rendered by your business or the sales that your company makes.
- The invoices for products, services as well as other business acquisitions bought for your company.
- All the financial statements including the balance sheet, profit and loss statements.
- Tax return information
- Records of the payments made to your staff plus other organizations on their behalf such as PAYG Tax and Superannuation funds.
- Bank accounts as well as credit card statements.
- Anything else that has a monetary value to your business.
In regards to this, you can make digital files on your computer to keep this vital information or even keep it a well-organized file cabinet. Just remember to keep a backup of it all.
Finally, it’s important that you take some time weekly to go through your books. Regularly reviewing your financial information will allow to control the business’ cash flow and be in the light about the company’s progress.