When the pandemic hit us at our most vulnerable, many small businesses had to transfer their operations fully to the wim of the internet, resulting in waves of transference to the digital world and thousands of new small business ventures established. It was an exciting and rewarding time for many of us, but it also came with many challenges – especially with accounting. As a small business, staying on top of your finances to record a profit and comply with your tax obligations is vital, but it is also a learning process. Here are some tips from the Pebbles Bookkeeping services team to help keep your online business bookkeeping on track.
Keep Your Records Updated
The first rule of good accounting in your business is keeping your records in good organization. That includes keeping strict records of all sales and expenses, including documenting all receipts and invoices.
In keeping these in a strict state of order, you will find it much easier when it comes time to prepare your tax return at the end of the year and ensure that you are paying the correct amount of tax. It also reduces the risks of incorrect filing that can lead to penalty charges from HMRC.
Separate Finances
Even when working by yourself, we recommend keeping your business and personal finances in separate accounts. It can be complicated when trying to separate business expenses from your personal account expenses, yet much easier if you operate a separate business account to identify that money going in and out.
Making tracking your business income and expenditure much easier is a godsend, and it eliminates all of those mistaken personal transactions that can get tied up in your calculations.
Learn Accounting Software
The progression of accounting software is now making it very easy for small business owners to keep on top of things, helping to track all income and expenses, generate invoices when needed, and prepare any financial statements for you.
Also good news is that there are many different options to do it. We recommend using one specifically designed for small businesses that can integrate with your online selling platform, such as Xero, Quickbooks, or FreeAgent. Don’t worry if you are not technically gifted – there are training sessions you can get from small business bookkeeping solutions to get you up to speed and using them effectively.
If you need help with online business bookkeeping or bookkeeping services in Manchester, don’t be shy to contact the helpful team at Pebbles Bookkeeping and we can help you get organized.
