When it comes to keeping our business’ accounting records in order, most of us are (admittedly) not as organised as we would like to be. The problem is that we tend to ignore the organisation and leave it for a later period, only to find out after some time that we are already in deep trouble. With accounting, it’s always best to stay on top and to make sure that you are on track. So how can you do this without too much effort? Here are some top tips you should remember to keep your business’ accounting more organised.
Have separate bank accounts
If you are a small business, it’s easy to mix your personal bank account and your business bank account – after all, the finances all come from you, right? But this is where many small business owners make their first mistake. Have separate bank accounts for your business and personal use. There’s no excuse for it: nowadays, it’s not expensive to have a separate bank account for your business.
Only use cash when absolutely necessary
Another tip to make your business’ accounting more organised is to only use cash when necessary. If you have to purchase something, use a card (or, if possible, write a cheque). This can help you keep track of your transactions, and when the time comes to reimburse yourself, make use of a proper expense claim.
Pay attention to your receivables
More often than not, we become too busy making sure our business’ daily operations run smoothly that we lose track of other important matters, such as receivables. If you have a business, it’s important to make or create a system for keeping track of and recording all your receivables from clients and customers.
One more thing: it’s also a good thing if you can have a system that keeps track of debts – especially old ones. This way, you will know which receivables are way overdue and can begin chasing payment for them. If possible, have a system which can also record special payment arrangements with customers, as well as record excuses by customers for non-payment.
Make it digital
You still have the option to keep everything on paper, in hard copy form, but would you really want to do this all the time? Paperwork – especially financial paperwork – takes up a lot of space, and you simply will have to digitise after some time. Start early, making everything in digital form, and you’ll be happy you began when you see all the files start piling up.
If the process of keeping your accounting records is too overwhelming, you can always turn to an accountant who can take care of all your accounting needs. Accountants in central London such as those from GSM Accountants know all too well how important proper accounting is – consider it an investment for your business’ success.