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How to do your Business Accounts

Are you a last-minute person when it comes to updating your business records?     Well, lets look at your system.   I have found some people think they need to have a computerised system.

For the small business person, the good news is that there is a way of your bookkeeping “doing itself”.

The end goal of bookkeeping is getting a list of Sales (money coming in) and a list of expenses (money paid out). 

Try these four steps to simplify your bookkeeping

  • Get a separate business bank account to your personal account.   Most banks offer up to two years free banking and you can always change after two years if you think the charges are high.
  • Get a debit card (or credit card) for your business account.  If you ever pay by pay pal for items over the internet, add your business card to the payment method, as you can add several cards for payment of items.    If your business accepts card payments, ensure they are paid directly into your business account.
  • Keep all your receipts, it will save you tax.
  • Now here’s the important part, ensure you always use the correct bank account when paying for goods and/or services.  Use your business bank/debit card for business items and your personal bank account for your personal items.

You can see that your business bank statements will be a full record of your accounts all in one place, nice and tidy.   All your sales and expenses will be paid directly into this business account, this produces a list for you. Sticking to using the correct bank account, means you will not miss any expenses (keeping your tax correctly lower). It will record payments by for incidental items such as travel or stationery or payment made for internet items.

For larger businesses who are Vat registered Accounts software is recommended here.    

There is a large selection of software, some pricy and some free.

I like one called Quickfile.  It has all the features of major software such as invoicing, banking and statements etc but is free to a small business (less than 1000 transactions) and for the bigger business, it is £45 per year. That’s really good value.

Have any questions about your business accounts

Drop me an email   Dinah@JonesAccountants.co.uk

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