Better Small Business Money Management

Better Small Business Money Management

As a small business owner, if you have no previous experience of running a venture you may be slightly confused at all the things you have to do. There is all the bookkeeping and payroll to deal with, as well as your employees, sales, and legal requirements for things such as health and safety.

When it comes to these matters, ignorance is not accepted as an excuse if you get your accounts or payroll wrong. You cannot just guess how much tax you should have deducted from your employees, or how much employers national insurance you should have paid. It has to be correct or you will face the wrath of the Inland Revenue, and no one wants to have them breathing down their neck.

There is no end of software programs to help you, but where is the best place to start looking?

Automate Your Bookkeeping And Payroll In The Cloud

Speak with your IT provider about software programs for accounting and payroll that are in the cloud. These tend to be the most advanced of software programs and most of them will allow you to automate all of the processes.

Organisations can utilise compensation software for instance, as this is designed to handle straightforward and complex remuneration requirements. You can use cloud-based software to input all purchase invoices by putting them in front of the camera on a digital device instead of having to laboriously input every detail by hand. These are just two examples of how cloud-based software could help to make your business more efficient, and mean there is less work for you to undertake on these matters.

Keep Personal And Business Expenses Apart

One of the things the Inland Revenue will look at closely if they decide to check your records is that you are not claiming a personal expense is a business one. The more separate you can keep them the better. In fact, the best way is to draw a set amount of money for your personal bank account and pay all your own expenses from there.

Maintain Good Records

The idea of bookkeeping software if so that you have good records of your sales and purchases. Any software is only as good as the information it is given though. This means you should enter all the details on a regular basis. There are two reasons for this. Some receipts are so tiny they are easily lost and lost receipts will cost you more money in tax, as the expense may not be claimed.

The other is that if there is a query from a couple of days ago on a receipt you are more likely to remember the answer than you are of the receipt or invoice is from 6 months ago.

Realise When You Need Help From Professionals

The more your business grows the larger your bookkeeping and account job will become and there will come a time when you are better off handing it over to professional accountants. They usually have bookkeepers on their payroll, but if not you could outsource the bookkeeping side and let them do the accounts for submission to HMRC.

Your accounts are an important part of the business as without accurate ones, you cannot be certain if you are making any money.

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: