Copy
Bookkeeping Tips
 
Accurate bookkeeping is a necessity if you run your own business. It may seem to be something of a burden but it’s vitally important that you keep track of your revenue and outgoings when you are trying to grow your business.
 
Record Keeping – Records should be kept in an organised approach by doing so this can reduce the risk of fines or penalties from HM Revenue and Customs; note that records should be kept for a minimum of 6 years plus the current financial year. For more information on what you need to know, click here

HMRC launches overview on Business Records Check, ensure you are keeping adequate records so that tax returns are completed correctly to avoid paying too much tax or receiving penalties by clicking here.
 
Taxes - You will have to provide information to HM Revenue & Customs regularly about your business’s profits or losses so that they can assess the amount of tax you owe. This information has to be accurate and presented in a professional manner. Failure to keep up to date with your tax affairs can lead to serious repercussions, as HMRC can impose large fines and penalties.
 
Cash Flow - Keeping track of cash flow is critically important for any business and it’s only possible if you have accurate financial records. Bookkeeping can assist in the budget and forecast of your business so you know exactly where you stand on a day to day basis.
 
Bank Account – Monies relating to the business should always be dealt with directly through the business bank account. Any personal expenses should be kept separate, if you need to, transfer funds from the business bank account to your personal bank account this will be recorded accordingly to drawings.
 
Profitability and Growth - Accurate bookkeeping allows you to see whether or not your business is actually making a profit. It is surprising how often business owners fail to keep track of this but it is extremely important. Bookkeeping also allows a business owner to have a greater understanding of how much progress has been made. You can look back and see patterns and draw comparisons with previous business years. This can provide a greater understanding of the areas within the business which make a profit and where costs might be trimmed. This kind of financial analysis can help you to avoid problems in the future.
 
Frequency – We recommend you update your records and reconciling the company’s bank accounts regularly usually weekly or monthly depending on the size of the organisation. Keeping on top of this can reduce the risk of irregularities occurring, debtors and creditors are up to date and any additional expenditure is captured and allocated accordingly for example, office stationery and postage paid personally.
 
Outsourcing – If you choose to outsource your bookkeeping to an independent company this can save you money on accountancy fees and save you time to build your business. It is, of course, possible to purchase software which you can use to carry out these bookkeeping tasks which would provide you with the data required to submit a return to HMRC. 

However, employing the services of a professional firm of accountants or a bookkeeper to manage the financial affairs of your company could prove to be profitable for your business in the long term. Not only would they help you to minimise your tax liabilities, but they can also provide valuable advice on other aspects of running a successful and profitable business.
 
For more information about how we can assist you or your organisation, please do not hesitate to contact us on 01424 216817.
Copyright © 2017 Fairbook Business Services, All rights reserved.

Telephone: 01424 216817
Email: info@fairbook.co.uk
Website: www.fairbook.co.uk

Important Information
This document is solely for information purposes and nothing in this document is intended to constitute advice or a recommendation.

Licensed and regulated by AAT to provide services in accordance with license number 1000171

Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list

Email Marketing Powered by Mailchimp