Autumn Winter 2016

30-31 / 36

If you are interested
in accounting software
packages or cloud
accounting or would like
us to help improve your
bookkeeping processes
please contact Daniel
on 01900 878000.
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AUTUMN/WINTER 2016 AUTUMN/WINTER 2016
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Let Daniel help you make the most
of your business’ finances, call him
today on 01900 878000.
Why is bookkeeping important?
Up-to-date accounting records provide
an invaluable indication of how your
business is performing throughout the
year, helping you make better financial
decisions.
It makes good business sense to
maintain financial records and it
is also a legal requirement. HM
Revenue & Customs (HMRC) normally
require sole traders, partnerships and
limited companies to retain financial
information for at least six years. HMRC
can request to review your records at
any time to ensure you are paying the
correct amount of tax.
“Setting aside some time each
week to review and record
business transactions will
save time in the long run...”
Here are some helpful tips
to help you stay organised:
1. Keep it separate
Keeping business expenditure separate
from your personal transactions will
help to simplify your accounting
records, saving you time and money.
Your business current account can do
the work for you when used purely
for business. By paying electronically
wherever possible, you can manage
and access all of your expenses in one
place.
Structured payments of wages or
drawings to a personal account each
month will help unclutter your business
bank account statements. This will
also have a positive impact on your
accountancy fee as time won’t be spent
analysing transactions irrelevant to your
business.
2. Little and often
Don’t delay! The longer you put off
preparing your records, the harder it
becomes to catch up, increasing the risk
of error. Setting aside some time each
week to review and record business
transactions will save time in the long
run, as you will not have to remember
specific details at a later date. This
approach creates an excellent
opportunity for you to be more in
control of your business expenditure,
as well as reducing the possibility of
tax deductible expenses being missed.
You can also improve your cashflow
by tracking customer invoices more
regularly, sending statements to chase
late payments and avoiding the risk of
bad debts.
3. Plan for major outlays
Saving in a business deposit account
each month can be a helpful way to
smooth out cashflow problems in the
future. Planning this way can help you
prepare for large one-off payments
such as a tax liability falling due or a
major asset purchase, which can often
throw business finances off balance.
4. Remember to reimburse yourself
If you pay personally for a business
expense, ensure you keep a
record along with any associated
documentation, such as receipts.
These expenses can be included in
your accounts, reducing your tax
liability and ensuring that you’re not
left out of pocket.
If you use a private vehicle for business
trips, keep a mileage log and receipts
for all expenses incurred, such as fuel,
insurance and MOT.
5. Have a system
Sometimes even the simplest of
systems prove to be effective. Ensuring
bank statements are filed in order and
invoices are numbered correctly can
save headaches in the future if you
need to refer back to them. As your
business grows in complexity it may
be beneficial to move to an accounting
software package. Accounting software
offers increased functionality to that of
a handwritten cash book or computer
spreadsheet, enabling you to run
banking, VAT, debtors and creditors
reports instantly. Our Business
Software Specialists can help advise
you on the most suitable approach for
the size of your business.
6. Consider the cloud
Recently there has been an increase
in the popularity of cloud accounting.
Cloud accounting software avoids the
pitfalls of more traditional bookkeeping
software and paper methods. Packages
are designed to be simple and intuitive
to use, providing secure, real-time
information to you and your accountant.
This saves time in particular when
reviewing financial statements at the
year end and at the close of each VAT
quarter.
Software is automatically upgraded
and is accessible online from any
device with an internet connection.
Cloud service providers work with a
wide range of banks to automatically
enter transactions in to the software,
minimising the time required for manual
data entry and reconciliations. With the
numerous benefits on offer we believe
cloud accounting provides an effective
bookkeeping solution to a wide range
of businesses. We are on hand to
discuss this with you and support the
transition to an automated system.
How can we help?
Our dedicated team will take the time
to understand your requirements and
help you to find a bookkeeping solution
that works best for you and your
business.
Simple steps to e ective
bookkeeping
Bookkeeping may seem like an administrative burden
when you are trying to run a business. However, it could
actually be a tool to boost your revenue and profitability.
Simplify
Streamlined
Paperless
Efficient
Real time
Organised
Secure
Daniel Meats
Business Services Specialist