Tips For Improving Bookkeeping
- October 19, 2020
- Posted by: Raymond Gibbons
- Category: Business Support
Tips for Managing your Bookkeeping
Staying on top of bookkeeping is a chore for most business owners. What should be a simple and straight forward process can become a difficult and time consuming exercise. And in the main this is down to poor organisation and control.
There is no substitute for having a simple, user friendly filing system at your fingertips. Remember to make the job as easy as possible. You are not an accountant, your job is to sell your product or service and grow your business.
After all, ‘Frank Sinatra didn’t move pianos!’
- Allocate time each week to do your bookkeeping.
Choose a set day if possible and block it out of your diary so there are no interruptions. Even allowing for unplanned interruptions, by putting it in your diary you are more likely to do the job.
- Be organised.
Stay on top of your paperwork. Don’t let your filing build up by ignoring post. All post should be opened daily and preferably by you the business owner. Delegating this duty to staff might mean you miss something critical.
File your paperwork in an orderly fashion. Depending on the size of your business 3 or 4 files might be sufficient! A file for your purchase invoices and statements, a file for sales, one for bank statements and one for payroll should do the trick.
- Keep all your receipts and invoices.
If you are registered for VAT you can only claim vat back on genuine receipts or invoices that contain a vat number. Visa/Laser card receipts do not count as vat receipts!
So make sure you request a valid vat invoice or vat receipt for all expenses.
You can only write off or claim genuine business expenses only. If you are unsure about an expense, forward details to your accountant for clarification. They are the experts and will advise you if you can claim the expenses as a business expense.
File your receipts in an orderly and timely manner. Don’t wait for weeks before handling the filing. The task will take so much longer and be a lot harder than it should have been.
- Invoice customers immediately.
If you raise invoices then raise them as soon as you complete the job or supply the products. Don’t wait. Delaying your invoice can result in delayed payment and give rise to your customers querying your fees.
Remember ‘Eaten bread is soon forgotten’.