Get an invoice or receipt for everything you buy
Statistically, the longer you are in business, the higher your chances of a VAT or tax investigation. They’re normally nothing to worry about as long as you have a professional accountant like Harrison Hinchliffe Accountants on your side and all your paperwork to hand.
Get used to keeping a piece of paper for every transaction. If you buy something online print off the invoice. It’s easier to collect paper as you go along, rather than try to find it years down the line.
Keep your accounts clean – separate business and personal expenses
If you run a limited company, the business’s money is not your own – even if you own it 100%. As a director you can’t spend the company’s money on your own purchases, unless they are a legitimate business expense.
As a self-employed person you take drawings from your business, but you should still maintain a separate bank account. Keep your accounts clean by keeping your business and personal finances separate.
Check bank statements
You should spend time checking your bank statement every month. Apart from combating the risk of fraud or a mistake by your bank, you will gain a better understanding of where you are spending money.
Successful businesses have great credit control and are spend money smartly – make this a habit from day one.
Put time aside to do your book-keeping regularly
When you are starting out it’s tempting to leave your book-keeping until the evenings. But if you’re tired simple tasks will take longer, and you’re more likely to make mistakes.
If you need to tackle a job like this outside of working hours when you could be earning money, then consider letting us handle this stress for you.
Get help with your finances
If there’s one area you shouldn’t skimp on professional help, it’s with your finances. We will save you more money than they cost.
If you are struggling to keep up-to-date with paperwork, consider doing what you can and get us to get your books in order on a regular basis.
Online accounting systems
You may well find that using a suitable accounts software package takes much of the pain away. We highly recommend the Sage One online accounts system – you can access anytime, anywhere which is great for a busy new business. We can assist with selecting the correct package, setting it up and also linking your bank account so the transactions automatically populate the software.
