Accurate and systematic bookkeeping records are essential for any small or start-up business. The general perception of bookkeeping is that it is an overwhelming task involving boring and monotonous recording of tiny details. But this is not actually true. In reality, bookkeeping is a highly useful practice which helps business owners to understand where they need to reduce their expenses and how they can increase profitability.
The following tips should assist you to keep your books up to date and maintain hassle free accounting records:
- Keep track of your income: Every time money is paid into your account you should be able to identify it, and which client it comes from. It is a good idea to issue each client with an numbered invoice. You can buy an invoice book, or you can make your own using a word processor. Include your name (and business name if you have one), a brief summary of what it is you have sold, and the amount.
- Consistency is essential: Always ensure you record your income and expenses the same way if you are using paper bookkeeping system. It may seem a trivial consideration but it saves you and your bookkeeper time and stress. Their bill may also be cheaper as your organised and ordered books will mean they spend less time trying to make sense of your accounts.
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Seek professional advice if you are not sure. Tax is complicated, and it is hard to get right yourself. If you are not sure about something, it is worth seeking the advice of a professionally qualified accountant.