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Our 6 tips below could help small businesses really get on top of their bookkeeping
Don’t let the paperwork pile up
Set aside time each week to go through your paperwork, uploading, processing etc. Apps like Pleo, Apron, Hubdoc, and Dext can really help manage the paperwork and reduce workload. The last thing you want is for it to pile up and cause yourself unnecessary pressure. If you don’t process paperwork regularly, your accounts won’t be up to date so you won’t be able to create accurate financial reports.
If you use apps, this also reduces the amount of paperwork you actually need to keep around. For instance, once you have scanned something into Dext it’s then stored for 10 years (provided you keep paying your subscription).
Pleo allows you to use a “top up” style card to pay for purchases, where you can change the limit for each staff member. It then prompts you to take a photo of the receipt, and reminds you if you forget. This is a great tool for reminding you to do your paperwork and you know you can throw away the receipt afterwards.
Use software and apps that link together
Firstly, if you don’t already have reliable accounting software, you need to start there. Secondly, find other apps that connect to your accounting software. Some examples of really useful apps are Apron, Dext, Pleo and Satago. You can find more of our favourites here. By linking software together you’re saving time and creating a holistic approach to your accounts which will benefit your business.
For instance if you link Apron to Xero, Apron will capture your supplier invoices and pull them through to Xero or QuickBooks. You can also pay suppliers and employees through Apron as it uses the data in Xero/QuickBooks to identify who needs paying. Just by linking those two software’s together you’ve saved time and achieved a number of tasks.
We are passionate about this holistic approach to accounting and can recommend a troop of apps that connect together, for your specific challenges. Simply book an appointment for a software review.
Do some training and keep up with it
One of our favourite quotes is “You don’t know what you don’t know”. The best thing you can do to empower yourself is to do bookkeeping theory training and software training – and keep this knowledge up to date. There are huge risks to processing things incorrectly and if you’re processing payroll, that’s a whole other minefield if you don’t know what you’re doing.
It’s important to remember that just because you’ve always done your bookkeeping one way, does not mean that’s still the best way to do it. Things change, technology changes and so do regulations. Change can be hard and intimidating, but we’re here to support you with this.
Our recommendation is to do training little and often, that way the information goes in easier and you have a chance to use that information practically, before moving on to the next subject. This is why our classroom and virtual training are only short sessions. We offer a range of subjects and you can see what’s upcoming via our Eventbrite page. We also offer bespoke training to suit specific needs you may have. This could mean a 1-2-1, or training entire departments.
Stay up to date
This leads on from the previous point. It’s your duty to stay up to date with the latest laws, legislations, pay alterations, new taxes etc that relate to your business and industry. It can be a real stress to have this burden.
HMRC have a number of mailing lists you can join, specific to your circumstances and industry, and they will email you with updates. These updates include links to YouTube videos and webinars. You can also make use of the HMRC community forums.
Following on from that, a quality bookkeeper and accountant will keep you up to date with changes. After all, they are dealing with this sort of thing every day, so they should be a reliable source for you to ask questions. Sign up to their mailing lists. It’s also worth talking to HR specialists as there are certain instances where you’ll need to get their advice in a scenario.
Don’t leave things to the last minute
Start by diarising important dates like year-ends, tax returns and payroll week. Speak to your accountant and bookkeeper (if applicable) about any important dates or preparations you need to do to support them. The more organised you can be with this, the less likely you are to find yourself in a dire situation.
We’ve had enquiries asking us to do urgent work to meet a deadline due to fear of a HMRC fine. This creates unnecessary stress for the client and it’s not always guaranteed we can provide support in the short time window.
At any time HMRC can decide to do inspection on you and your business. Give yourself the peace of mind that everything is in order, by not leaving your paperwork to the last minute.
Think about getting a bookkeeper onboard
We appreciate that small businesses don’t always have the budget to hire extra staff so we offer support services as a sort of “bookkeeping best friend”. We can check you’re doing things right and you can ask us questions when you’re worried. This support can increase or decrease as needed. If you feel you’re fed up with doing the bookkeeping altogether, we can take it over too. Book an appointment today via the link below.