Easy Bookkeeping

ScotiaAccounting  |  5th December

If you are the proud owner of a start-up business then getting a handle on your bookkeeping is essential.

Here are Scotia’s five top tips for getting started with bookkeeping…

Make it a priority

It can be tempting to forget about your books and leave them for another day but we can’t overemphasise the importance of scheduling this into your timetable.

Melinda Emerson, author of Succeed As Your Own Boss, says:

“Many businesses which would otherwise have been successful have been brought down by their failure to maintain proper financial records. Whether you do it yourself or hire someone else to do it, bookkeeping is essential.”

Track your expenses

A good idea is to use a business-only credit or debit card. That way you can keep a basic record of your expenses.

If you pay by card, your electronic statement will itemise your outgoings which makes it easy for you to refer back.

Paying in cash means keeping hold of paper receipts which are more likely to get misplaced.

Keep a diary

If you regularly travel to client meetings it’s wise to keep a diary.

When it comes to your bookkeeping you can look back through your diary and, by using Google Maps, plot and record an exact mileage for each business trip.

This means you wont ever under or over estimate!

Keep tabs on your invoices

Make sure that you know when payment is due from your clients and have a system in place for the rare occasion when invoices go unpaid.

Eileen Gunn writing for entrepreneur.com says: “Every late payment is an interest-free loan and hurts your cash flow.”

Someone else’s failure to pay can have a serious effect on your business so knowing what to do in this situation is essential.

Find a good accountant

The HMRC website states that “you may find that a good accountant can help you manage your finances more easily” and this is certainly true.

Why not ask other small business owners which firm they use?

You will find that a good accountant is worth the money you pay for them and more!