Editor | 4 December 2017
Four simple tips for managing your own books

Four simple tips for managing your own books

So you’ve set up your own business. Now the hard work begins.

Your head is probably swimming with ideas, possibilities and strategies that could help your business grow.

One thing you probably aren’t thinking about is bookkeeping. Recording financial information is not really the fun part of starting a new business – but it is crucial to start-up success.

You don’t have to waste money employing someone to manage the books for you, handling it yourself doesn’t need to be daunting.

Think finance first

Before you do anything else – you need to make sure you have a system for recording finances set up. This allows you to start recording all incomings and outgoings right from the word go.

The only thing more important that starting bookkeeping right away is making sure that you keep on top of it and know how much you owe before you owe it.

Invest in a system

When they are first starting out, many people like to use spreadsheets to manage their books – but there is often a lot of set-up work goes into these and it is easy to make mistakes.

We recommend start-ups use a cloud accountancy software package like FreeAgent or Xero. These systems have powerful time and money-saving features and are very easy to use – which is particularly valuable if you aren’t using an accountant in the early stages. 

Find free help wherever you can

Initially at least, bookkeeping can be straightforward, but as time goes on and your business grows, you often have carry out some more complicated calculations.

To help manage these, you can look for free help wherever you can. There are lots of blogs and forums where accountancy questions can be asked and HMRC also run some free workshops that you can take advantage of.

With certain cloud based software packages, you can also get free help from the companies involved.

Claim for business expenses

One of the most important things you can do is claim for expenses that are incurred wholly and exclusively by the business.

This is at the root of everything when it comes to efficient management of your business finances. Make sure you keep hold of all business receipts and invoices, make sure you can claim for them, and put the all in the correct place on your financial program.

If you do decide that you need some help with this then an accountant can help you file your taxes towards the end of the tax year. They can also help you claim for expenses you might not have thought of, such as home office expenses, heating and telephone charges.

For more information email team@cloudaccountant.co.uk or visit www.cloudaccountant.co.uk