For many people, keeping track of their business finances can be the most tedious part of running a company, but understanding the basics is essential to becoming a success. With a little time and effort each week, you can stay on top of your bookkeeping.
In this post we hope to give you a little insight into the different bookkeeping options so that you can use the best system for you and your business.
Cloud Accounting Software
There are many accounting software available, each offering their own tailored services. Some banks even provide a free bookkeeping software with their account.
When using an accounting software, the simplest way to stay on top of your reconciling is let the bank feed drive your work. Rather than the labour-intensive option of uploading receipts, which can sometimes lead to double counting expenses/income, let the automation of bank feeds assist you by allocating the payment to the correct categories within the software. As you do this, the software will learn where you post similar transactions and create suggestions, all you then need to do is make sure the correct accounts are being selected. Speeding up the process even more.
If you are interested in using cloud accounting software, our partners Walton Accountancy are accredited to provide full support to both Xero and QuickBooks. They will be able to get you set up and provide you training on how to use the software.
All 99p Company Formations customers can opt into receiving a standard or VAT spreadsheet, these are emailed from our sister company Walton Accountancy. If you did not request this during the formation process, feel free to drop us an email and we can get one sent over.
These spreadsheets are a simple way to record your income and expenses. They are even designed to accommodate multiple sales categories with multiple income streams. The inbuilt formulas will then allow you to see your monthly totals and allow you to keep track of your expenses each month.
Paper bookkeeping records
Although this is becoming an outdated system, if you do not wish for the added expense of bookkeeping software and have limited transactions, this can still be an effective way to record your income and expenses.
Our recommendation is to group your expenses into simple categories. For example, put you fuel, MOT, car repairs and car tax in motor costs. This will make your bookkeeping and lot simpler and clearer for you.
With all forms off bookkeeping, we always recommend keeping your business receipts and invoices in a box file or folder just in case they are ever requested by HMRC.
We hope this has given you a little insight into the option available for you and your company when it comes to bookkeeping. If you would like to discuss this the best options for your business and the other services Walton Accountancy offer you can call them directly on 02392 593917.