Bookkeeping Tips To Help You Get A Handle On Your Finances
Being in control of your finances is key to keeping your earning model afloat. That’s why it’s so important to stay on top of your books as a sole trader, small business, contractor or someone with multiple income streams.
It’s all too easy to end up looking back over your financial spreadsheets at the end of the year and feeling confused by the figures that sit before you. That’s why we’ve set up this list of essential bookkeeping tips, to take the headache out of your finances…
Put money away monthly
Regardless of whether you enjoy a profitable month or stutter through 30 days of slow business, you need to put at least 20% aside for the taxman.
It’s a good idea to set up a dedicated savings accounts, so you can put money away monthly to give to HMRC later down the line. This can make a huge difference when it comes to paying your tax bill. Instead of scrambling around for funds, you can simply dip into your savings pot and send the money you allocated straight to the taxman.
Pay by card
This might sound obvious in today’s climate where card is king, but using this method of payment for the little things in life – a coffee with a client, a car tank top-up en route to a meeting – is a boon to good bookkeeping.
This is because it makes reconciling your accounts much easier. Receipts can subsequently be used to claim back money spent on business-associated transactions on the Self Assessment tax return deadline at the end of the year.
And every little helps.
Actively work on improving your cash flow
Staying on top of your books involves bringing in money before you pay money out. And to do this successfully, you need to work on your cash flow. If your income relies on clients, get strict on invoice payments and consider requesting money up front (you can encourage this by offering discounts for early payments).
Make it simple for people to pay you by giving them the information they need from the off, and always communicate regularly with any suppliers to ensure you have plenty of time to pay them.
All of this will help you manage your cash flow effectively and ensure you remain on top of your books in the long term .
Use SimpleBooks software
Bookkeeping software is the ace in the pack for anyone attempting to strengthen their grip on their finances. A premium bookkeeping tool powered by cloud technology, SimpleBooks lets you organise your finances on the go – removing all the complicated jargon to keep things straightforward. Raising invoices is simple, and you can easily collect payments thanks to our recent integration with WorldPay.
It can help you with all the essential elements of bookkeeping, revealing how tax brackets work and giving you guidance on:
- VAT reports
- Bank reconciliation
What’s more, you’ll receive a support service that’s second to none. SimpleBooks’ overall average feedback is over 90% positive; businesses and the self-employed all over Britain continue to use our software and turn to our staff whenever they need support.