Top Bookkeeping Tips
Follow these straight forward tips to help your business save time and money when it comes to your bookkeeping.
Top bookkeeping tips for clients
- To stop having to sort through several personal receipts when preparing your books transfer the money for yourself from your business bank account to your personal account in the appropriate manor (drawings, salary, dividends, reimbursed expenses) this will save lots of time when it comes to completing your books!
- To ensure that business income and expenditure is being recorded accurately, reconcile your business bank account on a regular basis.
- Find an appropriate accounting system for the size and complexity of your business. If you are a small sole trader you will not need a high-tech high-expense system, a manual ledger would be more suitable.
- Make sure you have a good understanding of the accounting system you are using, you can do this through an official course or 1-2-1 with your bookkeeper.
- Set time slots in which you are going to prepare your bookkeeping. Weekly or monthly. This will allow you to always have up to date information and help with cash flow forecasting.
- Taking up to much time? Then The Hollies Bookkeeping Service is exactly what you need!
Essential elements of bookkeeping
- Sales ledger – sales invoices, including date, invoice number, customer name, brief description, VAT if relevant, amount of invoice, date paid, payment method. You can also categorise invoices into different types (Labour, Materials etc)
- Purchase ledger – purchase invoices – date, invoice number, supplier name, VAT, amount, date paid, payment method. Categories – cost of sale, employee costs, fixed assets, rent, stationary etc.
- Bank reconciliation – this allows you to check that all bank transactions match your bookkeeping records
- Full PAYE records – We would recommend Sage which does everything required for a full RTI process.