Running your business is a challenging task. Being the owner, you are bound to play several roles. Sometimes, you play the CEO role; other times, you have to manage your finances or become director of marketing departments to promote your business, and the list is neverending. Besides playing all these roles, you even have to manage your bookkeeping for your business. It is one of the most essential tasks if you want to keep your company afloat, even though it may not be your favorite task.
You are not alone in this boat. Several other business owners also do not find this activity fascinating. Business owners love to admire the ever-increasing profits but hate reviewing the ledger accounts and crunching numbers. However, bookkeeping is essential to your business if you want to track all your expenses and monitor growth. E2E Accounting can help you simplify your finances by providing expert bookkeeping services. With our specialist bookkeeping services, you can easily gain more insights into the feasibility of upcoming expenses and avoid any errors.
One fundamental business rule you must follow is to keep your personal and business finances separate! We are sure we are not the first to advise you to adopt this rule. There is a significant reason why everyone suggests you about the same:
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Making bookkeeping part of your daily routine is one of the best and simplest ways to manage your business finances. Rather than doing all the work in the last minutes right before your year ends and tax deadlines, this will only create a panic situation for you. It is always better to do a favor for yourself, take up this task every week, and make it a part of your routine. Block your calendar and prepare your routine checklist of all your tasks, including the following aspects of bookkeeping:
This checklist will help you keep track of your records and stay up-to-date with your finances. You will also feel part of a business, as your books are clean and you can make informed decisions. If you find it difficult to make bookkeeping part of your daily routine, partnering with a professional bookkeeping services: such as E2E Accounting, can significantly lighten the load.
With increasing digitalization, even payments towards transactions can easily be made through various online modes. However, there is no hard and fast rule for avoiding cash transactions. The fundamental rule is that you need to pay extra attention while bookkeeping your cash transactions and not lose track of the cash. Following these guidelines can help you avoid cash-related hassles:
As per the statutory norms, HMRC, IRS, and others can conduct audits for up to six years. It means that storing the records cleanly for at least six years is essential. However, the key benefits of maintaining all the documents in a sorted manner are:
To do so, you must practise saving all the receipts and invoices and jotting down all the essential notes. Store it by giving it a proper name for all the files and records. Also, ensure that all the records are stored digitally to avoid losing documents.
Having all your documents sorted and stored in one place will avoid chaos and frustration while closing the books.
Late payments will affect your business and relationships with customers or vendors. Also, chasing up the bills at the last moment will make your accounting difficult at the end of the month.
One of the easiest ways to avoid all these hassles is by monitoring your accounts receivable and payable. It is one of the most enjoyable works, especially for small businesses. Make sure all your bills and invoices are paid on time, and you remember all bills or invoices from your previous clients before you move ahead with your next project.
When your accounts receivable and payables are simplified, you will be ensured that all your cash flows are accurate and in constant movement.
Your weekly accounts receivable and payable tasks must include:
Try setting aside the money for essential recurring expenses, such as rent, insurance, office supplies, etc. Following this practise will help save time for recording those expenses over and over. Setting aside such money will also help you properly budget for major expenses and keep track of such costs during your monthly budgets.
For example, if you are about to acquire an important project but need a larger budget, you can do this only when your expenses are streamlined. When the money is set aside beforehand for recurring costs, you can easily visualise how much your budget for the new project is over the period.
It can be tempting to push bookkeeping to the back of your mind, especially when you’re overwhelmed with other business needs. But bookkeeping should be a priority if you want to keep your business up and running. Set some time aside weekly to check your transactions and ensure they tally with your purchases. It will make things easier at the end of the month. Or you can get help from professional bookkeeping services like E2E Accounting to help you keep your books up to date.
While you are keeping track of your business finances, it is also essential that you set aside a certain amount of money for paying your business taxes. You will not prefer to miss all the tax payments due to inadequate finances. When your books are well maintained, you will get an idea of how much tax you will pay for the financial year and accordingly set aside the relevant provisions. In short, tracking your finances is not limited to keeping track of your expenses; when you follow your finances smartly, you also set aside money for paying your business taxes. If you feel that you are unable to keep track of your business finances and set aside money for your taxes, partnering with a professional bookkeeping services: such as E2E Accounting, can provide you with effective tax advice and manage your finances.
By regularly updating your books each week, you can easily pull your financial documents that are true and reliable whenever required. Your accounting software will help you quickly generate financial reports at the click of a button, be it for the current month, current quarter, year, or only for today. If your finances are readily available, you can share them with others whenever required. Therefore, it is always advisable to check your finances regularly.
Payroll forms one of the most substantial expenditures for your company. Sometimes, you pay your employees through bank transfers or manual monthly payments. However, this can at times create discrepancies. As an employer, ensuring timely payments to your staff can also help you build stronger relationships and trust within the team.
That’s why opting for automated payroll is the optimal approach to maintaining efficiency and punctuality for everyone involved in this process.
The most effective approach to simplifying bookkeeping for new businesses is to explore methods for automating recordkeeping, often achieved through the utilisation of online accounting software.
There are several online accounting software options available on the market that are tailored specifically for new businesses. These platforms typically provide users with a range of functionalities, which include fundamental day-to-day administrative tasks such as:
By opting for automation for your bookkeeping processes, you’ll free your valuable time to concentrate on other aspects of managing your business. Nevertheless, it’s imperative to conduct thorough research before committing to a particular software solution since the needs of each business can vary significantly. If you find it difficult to use accounting software, partnering with a professional bookkeeping services: such as E2E Accounting, can significantly lighten the load of understanding and using software.
Delegate the task to experts. Do you know what’s even more effective than relying on software to automate your bookkeeping? By entrusting the responsibility to a professional bookkeeper.
Your business demands your undivided attention, and sometimes the simplest choice is the wisest one – outsourcing tasks that you don’t have the time for allows you to concentrate on the tasks that truly matter to you. A professional bookkeeper possesses the expertise to handle the intricacies of bookkeeping, relieving you of the burden and enabling you to focus on revenue generation rather than documentation.
In conclusion, it’s evident that maintaining accurate financial records plays a crucial role in the success of small businesses in today’s fiercely competitive market. While the task may appear daunting, partnering with a professional bookkeeping services: such as E2E Accounting can significantly lighten the load and unlock numerous advantages.
E2E Accounting offers expert support and specialised knowledge to help small business owners streamline their financial management. By leveraging their services, businesses can ensure that their records are well organised, up-to-date, and compliant with tax regulations and other relevant laws. Get your finances in order with E2E and arrange a consultation to connect with one of our experts.