The life of a small business owner is hectic. It’s a never ending cycle of ups and downs, mistakes, victories, advice you wish you’d known sooner and processes you just never seem to get the hang of. For many business owners, this includes handling the finances of the business. Unfortunately, finance is the bread and butter of the business world, and it can be difficult to keep it all under control. Fortunately, we’ve got a few tips for you, from managing your own bookkeeping to hiring a small business accountant, that will help you run your business smoothly and prevent any financial mishaps.
Separate Your Business And Personal Finances
Becoming a small business owner brings about a lot of changes in your everyday life – including how you handle your finances. We’ve seen a lot of people start out by just having everything paid into their own accounts – but while this might seem simple at the time, it’s much more complicated long term. Every financial aspect of running your business is more difficult if you don’t have separate accounts. Even simple things like invoicing and checking payments, or ratifying expenses can become a nightmare if you’re having to sift through hundreds of personal transactions to find them. So right from the beginning, we recommend you get yourself a business bank account and make sure all incomings and outgoings for the business are dealt with from there.
Maintain Accurate Accounts
Everyone’s way of working is different. Some people prefer things to be very neat and tidy, while others work well with a bit of clutter. But when it comes to business financials, it pays to be neat. Efficient bookkeeping not only makes the every-day tasks much easier to handle, but it also makes the bigger ones much less stressful. So if getting things organised isn’t your thing, it might be worth looking at hiring a bookkeeper to keep everything in order for you
Keep An Eye On Tax Deadlines
There are a number of different deadlines small businesses need to watch out for, and they only increase as you add things like VAT registration in as well. But a looming tax deadline can be quite stressful, and the last thing you want is a form returned at the nth hour because it wasn’t filled in right, and you end up paying a fine. If you want to handle your accounts in-house, you will want to set calendar reminders months in advance. Or if you don’t your accountant will be able to send you reminders and even file for you.
Embrace Accounting Software
In the digital age, technology is completely unavoidable. Even HMRC has gone digital, so you will need to embrace the digital technologies sooner or later. There is not a single industry that hasn’t been affected by the digital revolution, and accounting is no different. Accounting software provides the perfect digital tool for a business owner to manage their accounts, whether you’re doing it yourself of you’re using an accountant. No matter which package you choose, you can keep your incomings and outgoings organised, arrange your taxes and even raise and ratify invoices. And if you are using an accountant, you can give them access and let them look after things for you.
Hire A Small Business Accountant
Even if you’re the most organised person in the world, the more time you spend on other things, the less time you can be earning money and increasing your income. Outsourcing your accounting means you can spend more time in your business, while having the peace of mind that your accounts and tax affairs are all in order. Outsourced accounting services are becoming more and more popular in today’s busy marketplace, where time is precious for everyone.
As a small business owner, finances and accounting are just one branch of a complexed tree. The accounting tips above aren’t complicated and don’t require a financial genius to take on board, but they are no less vital to the success of your business. At Cove Accountancy services, we specialise in helping small business owners understand and manage their accounting, from simple advice to a fully managed service. For more information, or to book your free consultation, just get in touch with our team today.