Keep on top of your receipts and invoices
- Make sure you keep all of your receipts and categorise between expenses (those that you need to claim back as you paid them personally) and those paid for from a company bank account or credit card – ensure you then create expense claims using the receipts you have paid for personally.
- Enter all other receipts and invoices paid via the bank or company cash/credit card onto the purchase ledger and code them to the relevant category.
- Raise your sales invoices in a timely manner, being clear on how you would prefer them to be paid and what your payment terms are.
- Monitor and track overdue invoices – and chase accordingly!
Make use of accounting software
- Obtain simple accounting software, such as Xero, that meets your business needs and check out the associated apps to make life so much easier.
TOP TIP: Not Just Numbers recommend a few really useful book-keeping apps that pair seamlessly with Xero. My favourite two are Receipt Bank (a fantastic app for uploading and scanning receipts and purchases) and Tripcatcher (for effortlessly recording your business mileage).
- Seek appropriate training for software so you are using it as efficiently as possible (NJN often run clinics and workshops to help you get to grips with some of our favourite accounting software – get in touch to find out more!)
- Reconcile your bank at least once per week and ensure it matches the bank statement. Cloud accounting software such as Xero runs direct bank feeds to your software saving you a huge amount of input time and prevents errors.
- TOP TIP: Make book-keeping a regular task, weekly at least so you stay on top of your finances.
- Enter your payroll journals weekly or monthly as soon as the payroll is run, or request your accountant or book-keeper does this for you.
- Ensure you have accounted for any fixed asset purchases, hire purchase agreements or new loans. Alternatively, make sure that you send the relevant paperwork to your accountant or book-keeper so that they are aware of the changes.
- Stay up to date and organised. If you do not have time, or do not wish to do your own book-keeping, employ a book-keeper to do this for you. Accounts running in real-time will give you valuable insight into your business finances and enable you to make solid decisions, monitor and plan your cash flow, and ensure your debts are collected.
- Staying up to date also helps your accountant plan your tax, capital spending and offer more added value.
- Make book-keeping FUN. It isn’t like it used to be, automate as much as possible with some of the fantastic software available to you!
If you have any questions or need help getting to grips with your book-keeping, give us a call on 0113 385 4656 or email firstname.lastname@example.org