Accountancy tasks are certainly not the most exciting part of running a company and you’d be forgiven for deferring until the last minute. Although we do have some empathy with this, we must also advise it isn’t a healthy approach.
In fact, your life will be made a whole lot easier if your books are in order from an early stage. There are plenty of ways you can achieve this, but the main focus should be on devising your own personalised system and maintaining a disciplined approach throughout.
Accountancy software has flourished in recent years. There are a whole host of programmes at your disposal, each of which is tailored to varying budgets and requirements. Data entry is made far easier, automating the calculation of complex financial sums and reducing the possibility of mistakes.
As more companies begin to utilise accountancy software, and online banking becomes the norm, it makes sense to take the plunge yourself. However, be aware that staff have to be trained with the software, constant updates may be needed, and human error can still play a part.
Even in a technological world, a bit of graft is still needed so you don’t fall behind. A good ploy is to allocate time every week or two and set reminders in your work calendar. Neglect these duties and the work will simply pile up as time goes by.
Accountancy phone apps are a useful tool in the modern age. There’s a variety of software on the market, some of which are free, that can act as a reminder when you’re on-the-go. In the era of quarterly returns, this can be a great lifeline for ensuring you don’t face tax penalties.
Whilst not the most exciting part of running a business, keeping records of all income and expenditure is a must. In relation to your tax responsibilities especially, doing so in real-time will save countless headaches further down the line.
Know exactly what you need to keep, namely invoices and receipts, and designate a suitable place in the office to store them. Also ensure you separate business and personal records to avoid added confusion when dealing with the HMRC.
A common problem for SMEs is dealing with late payments from customers. Although some companies may be prepared to offer their services on credit, this can play havoc with your accountancy practice over time.
Although your ‘accounts receivable’ will detail all monies owed, you need to be firm with customers when it comes to completing payments. Another good tip is to anticipate debts not being paid at all, maintaining a cash reserve so you’re never left in the red.
There’s no shame in admitting you need some help balancing the books. In fact, seeking professional accountancy advice is highly recommended whatever stage your business is at, freeing up time and resources. It allows you to concentrate on generating revenue without the constant headache of dull accountancy practise.
At Neil Smith Accountancy, we’ll not only help with your accounting duties but also offer sound financial advice along the way. Please get in touch via our contact page to find out more about our services.