Some business owners see bookkeeping as a necessary evil but hiring a good accountant can make a huge difference to the bottom line of any company. It can often mean the difference between the success and failure of an organisation.
So, as the end of the April tax year looms on the horizon, let's look at just three accounting-based activities any successful entrepreneur should be doing before the year-end deadline.
1. Get yourself into a routine
It might sound a simple thing to do each week, but you'd be surprised at how many business owners leave their accounts until the very last moment. What makes the entire process much easier is if you keep track of your expenses, invoices (issued and paid) and receipts on a regular basis – preferably daily, but at least weekly.
To do this you could write yourself a simple procedure or a list of jobs you need to carry out daily, weekly and monthly to make sure you're on top of your incomings and outgoings. Getting into a regular routine can save you time and, more than likely, money.
2. Employ a bookkeeper
It's very easy to push your accounts to one side if you're a busy business owner. Most have their eye on winning new business and ensuring current clients are happy - as well as looking after HR, operational issues and marketing; it's not uncommon for business owners to wear three or four hats at the same time.
However, two things you simply can't let slip are 1) getting paid on time by your customers and 2) how much tax you should be paying, so that this seamlessly fits into your overall payment plan.
As the owner of the business, you should keep your eyes on the overall strategy and daily functioning of the business. You can then outsource the financial side of the company to experts in accounts. This will ensure you can switch off from time to time without having to make your working week even longer, but also get a different set of eyes on the business.
A good bookkeeper will analyse your monthly performance, highlighting parts of the business which are working better than others, drilling down into your figures to give you a comprehensive forensic report on how you're doing - and how you could be doing better.
What's more, if you're busy running your business, the last thing you'll need are letters from HMRC dropping through your door asking you why you haven't filed your tax return on time. Depending on how your business is set up, you'll have more than one payment to make a year. A bookkeeper can also help with the likes of Corporation Tax, VAT and other filings you might have to make.
3. Adopt cloud-based technology
Humans make mistakes - that's only natural, but accounting mistakes can be costly. Using accounting software, such as Xero, will help you understand the real-time position of your business with the touch of a button and allow you and your accountant to have access to a central portal where you can collaborate on your business accounts without the timely process of face-to-face meetings.
Add to this automated invoice reminders and bank reconciliation - which can cut down on fraud and track any unusual transactions - online software now truly goes beyond the nuts and bolts of simple paper accounting.
Why not leave it to RWB Chartered Accountants to look after your bookkeeping, so you can focus on running your business?
Our Xero certified team will give you complete bookkeeping and account support. We can take care of everything from payment processing to VAT returns, payroll to expenses, right through to accounts processing. Contact our expert bookkeeping team on 0115 964 8864 or email firstname.lastname@example.org today.
The views provided in this article are for general information purposes only. Nothing in this article represents advice of any nature whatsoever. Accordingly, RWB CA Limited does not accept any liability or responsibility for the information contained in this article or any decision or other action that may be taken in reliance upon the information contained within it. RWB CA Limited accepts no responsibility for any errors of fact or opinion and assumes no obligation to provide you with any changes to its assumptions.