Top Accounting Tips For Your Business
Here at PPS Chartered Accountants, we have come up with some more tips and advice that you should implement when it comes to monitoring the accounts of your business, big or small.
We are able to offer professional advice on all matters related to accounting and tax. Any questions you may have will be answered within 24 hours and we are more than willing to help in any way possible.
Carry Out Regular Audits
Compare your budget against your cash flow. Have your projected profits risen or fallen since the last time you checked? Do you notice a pattern? For example, you may notice that you are incurring further and further losses each month.
By carrying out regular audits on your business, you will become much more adept at noticing patterns in your finances, and can then make changes to your expenditures or other strategies well before it becomes a problem.
Use Accounting Software Packages
Accounting software packages such as Xero and Quickbooks have made the process of filing tax returns and income statements a lot easier.
Apart from the small monthly (or yearly) cost, there are really no drawbacks to using accounting software. It is certainly a lot simpler than using countless spreadsheets to keep your financial records, and the software can save many hours by automatically calculating totals and sending invoices. Leaving you with more time to focus on the more engaging aspects of business.
Separate Business and Personal Accounts
It is ideal to have a separate bank account (or at least a different card) for your business expenses and income.
When the time comes to carry out a self-assessment tax return or anything else tax-related, it can be quite complicated and tedious to distinguish between personal expenditures and purchases that were made for company purposes. Having separate business and personal accounts will eliminate any confusion regarding this matter.
If you already have a personal account with a bank, it will be a lot easier to open a business account with the same provider. Furthermore, there are many benefits for a business to use business credit cards and accounts, the reasons for which can be found in (this) article.
Update Your Books Regularly
In order to maintain awareness of your company’s financial stability, your books must be updated often.
We recommend spending a couple of hours each week to keep track of income and expenditures, so you know where you stand in terms of profits.