The thought of doing your own bookkeeping is pretty daunting right? That’s the general consensus. Having your own business involves enough work as it is. Why not just leave the accounting bit to the professionals. Fair enough. If you never want to deal with tax offices and worry about learning financials so be it. But you would be surprised how easy it can be.
These days there are superb accounting package and courses. You can sort out your tax online. Even the small things like recording invoice amounts into an excel sheet can save you precious time and money with your accountant.
The first thing you should do is set up a system where everything is filed in the right place every month. All money coming in and out should be recorded on computer, like in an excel sheet. Make sure all your files have dividers for each month. Then get your office organised with the following:
Keep bank statements in a file and print electronic bank statements and file them (these help to cross reference what you have recorded). At the end of the month input this onto your computer in the excel table, or similar.
You will need 2 separate files for these. One for your company sales invoices and one for invoices which have been made out to your company. Separate each file into paid and unpaid. As the amount gets paid, mark the invoice paid with the date it was paid and move it into the paid section of your file. Again, at the end of the month input this onto your computer sheet.
Make sure your staff and you keep all expense slips. From petrol to stationary anything spent on the company from your own pocket needs to be claimed back at the end of the month. Your driver must have a log book where mileage is recorded with the date and client visited. All petrol slips must be handed in with this log book at the end of the month.
If an employee needs cash in advance for expenses then a petty cash box must be topped up at the beginning of every month. Every time money is taken out the box, a note must be made and put in the box. The employee should sign this and they should also bring the invoice afterwards.
Again this must be recorded each month on a computer spread sheet.
Following these guidelines will prepare you for the end of the financial year calculations.
Donna Van Wyk writes on behalf of Oxbridge Academy, a provider of long distance accounting courses, among other study programs.
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