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6 Tips For Small Business Accounting

By April 10, 2018August 23rd, 2018Blogs

As a business, your financial performance is the most important thing to grow a successful business. Without accounting correctly, you will struggle to monitor finances correctly and constantly achieve the best financial performance. Every business must complete accounting to successfully run their business.

Coleman & Co can help every business effectively manage their finances. We can offer any accounting advice you require or complete all accounting work for you.

Track All Expenses

No matter how insignificant it may seem, you must track every single expense your business makes. Many business owners will continue to monitor the costs within their business but fail to notice the impact of costs. By tracking all expenses, including, meals, entertainment and travel, you keep a record of what payments your business is making.

This could help you in the future if you look to reduce costs and wonder where the majority of your expenses are occurring. Tracking your expenses will also support you during tax returns, ensuring all payments throughout the tax year are considered.

Create Payroll System

Nothing makes your staff unhappy like missing wages. Creating a payroll system to ensure all staff members are paid accurately and on time is essential. Small business accounting can be made much simpler with the support of a payroll system and will also keep your staff happy.

Having your own payroll system allows payment to your staff members to be much more efficient. Staff will always know how much they are being paid and what date they should expect their wages. Payroll systems also makes accounting much easier, rather than manually paying your staff every month and having to record this yourself.

Monitor Invoices

Making sure your clients pay you for your service must be done. You can not afford to simply hope clients are paying you, without taking any action whatsoever. Invoices could easily be cancelled without you knowing and you must constantly monitor this to ensure you receive the expected money.

If you notice a missing invoice for one of your clients, you can easily keep updated with this. Either you can stop providing the service they paid for or follow up the cancellation. All payments should be correct and you must effectively monitor this to avoid losing money.

Meeting Legal Requirements

Finances must be recorded at all times, whether it is coming in or going out of your business. Regardless of whether you are submitting tax payments correctly, all company accounting records should be kept for a minimum of 6 years, as a legal requirement.

We would advise recording all payments that go on in the business. Even if you do not think some transactions to be necessary, this information may become useful at any time. Not only could it support you for tax payments, but it could also settle any disputes you have with your clients.

Keeping your previous business data safe and available must always be a priority.

Tax Returns

Its never too early to start planning for your tax returns. This is something you should consider all year round as you should have a good understanding of what taxes you will be required to pay. All your income must be taxed before HMRC payments are made, as a result, recording your finances is necessary.

All profits your business makes will be taxed and if you fail to do this, fines can begin to rack up. When completing your business accounting, tax should be a priority at any point during the year, ensuring you do not face any punishment for incorrect tax returns or failing to meet tax deadlines.

Create Budgets & Forecasts

For effective accounting, you should always be looking at the future of your business. Creating a budget and forecast for the future of the business can help you save on costs and improve revenue. A budget will help you reduce costs massively and ensure payments are only made for items that are necessary for the business.

Creating a forecast can help you achieve all targets and ensure the business performance is of the right standard. By creating these two features as part of your accounting, it can massively boost your overall financial performance.

Contact Us

If you require advice from our team or would like to discuss our accounting services, do not hesitate to call us. Coleman & Co are happy to support all businesses throughout the Lisburn area with a wide range of services. Call us today on 028 9266 3599 or fill in our contact form to make an enquiry.

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