What is Book-Keeping & Basics For Your Business

Having sufficient book-keeping means being able to make wise financial choices that can help you GROW your business!

Book-keeping is the process of recording your business transactions so you know exactly how much you're spending and what you are spending it on.

To make life easier, I have listed some ways below on how to stay on top of your book-keeping…

• Choose your book-keeping method

• Set up your general ledger

• Create your business accounts

• Record every financial transaction

• Balance the books

• Prepare financial reports

• Create a book-keeping schedule

• Store records securely

Whether you do it yourself or outsource your book-keeping tasks to someone else, it is always good to understand the basics so you know exactly where and how your money is being spent.

If you are going to do your own book-keeping, here are some mistakes to avoid…

Get a separate bank account for your business - this is going to make your life so much easier. Rather than going through hundreds of transactions that may be personal as well as business, you will have all of your business transactions all in one place.

Not taking your book-keeping seriously - while book-keeping is mainly done for tax purposes and HMRC, it also helps you to budget, helps you assess your business performance and helps you identify your strengths and weaknesses and it helps you plan for your future!

Not keeping digital receipts - rather than having paper receipts that can easily be lost and may lose their ink, having digital receipts is the best way to keep track of your expenses. After all, you do need to keep them for 6 years and having a stash of paper receipts will take some time to go through!

Feeling overwhelmed? It may be time to hire a book-keeper. Here are ways a book-keeper can actually add value to your business…

• They can save you time

• You won’t miss unpaid invoices

• They will pick up any cash flow issues

• You can focus on growing your business

• You will be prepared for an audit

Ready to get started? Send us an email or book a call with us today!