Make Financial Accounting Manageable: Tips for Small Business Accounting
A small business start-up has a hundred things that need to be done. Amidst all the running-around that needs to be done for catering to business requirements, calls, pickups and deliveries, etc., the financial accounting for all the expenses and the incomes gets side-lined and overlooked. After all, when you jump on to start a small scale business with creative impulse, bookkeeping in Dartford isn’t probably the first thing on your mind.
But well, accounting is important. Well organised finances are a boon for any business, small or big. If you are just starting out and think you want to hire an accountant in Dartford, but don’t know where to start, you re at the right place!
Listed below are some crucial points that can make you bookkeeping savvy:
Keep Business and Personal Finances Separate
Using business credit cards to clear personal expenses is nothing new. But here’s the tip: keep it separate. The amount of labour and time that can be saved by following this simple thing is way undermined. If you do mix up business and personal expenses, make sure to record relevant transactions so things don’t get complicated down the line. There are also some applications which can handle automatic crossover expenses, but spare yourself the headache of all that and try to run personal and business transactions as independently as possible by maintaining separate bank and credit card accounts.
Pen In Expenses and Incomes
Keep aside at least half an hour every week to go over weekly expenditure and income receipts. This way, things don’t pile up at the end of the financial year and dump you in a place where you have no clue what to do. You can always hire professionals for bookkeeping Dartford to help you sort out the financial mess.
Store and File Receipts and Invoices
You are a small business owner, so get in the habit of storing vouchers. If you don’t have time to file them properly every day, at least dump all vouchers (neatly!) in a box or somewhere. So, when you have that 30 mins time every week, you can calmly sort them as you pen down transactions. Make sure you don’t throw out any voucher at least before the end of the accounting year.
Keep Track of Labour Related Expenses
You won’t think it, but many small business owners lose track of labour expenses. Overtime costs, bonuses, advance payments, monthly cheques, etc. All needs to be recorded properly to have a good idea of deductible expenses.
Track Your Customer Payments and Invoices
Don’t forget about receiving payments. Outstanding invoices, customer payments, etc. as all this actually add up to a hefty amount. Maintain a record so you don’t forget to get paid for all the hard work, goods and services you provide.
Don’t Shy on Calling in an Accountant from Dartford When Required
If you feel that your business is in a financial soup and you simply don’t know where to start, don’t be reluctant to call in expert professionals for help.