If you’re not great at keeping your accounts organised don’t worry, you’re not alone! It’s not the most exciting job, and you probably have more pressing tasks to focus on when running your own business, but messy accounts can end up costing you more time and money in the long run.
Here at Magpie Accounting, we have put together a list of accounts admin tips for small businesses that will help you to keep your accounting records organised and HMRC compliant.
What accounting records do you need to keep?
By accounting records, we mean things like:
- Bank statements
- Invoices (both customer and supplier)
- Cash expense receipts
- Credit card statements & receipts
- Mileage claims
- Statements detailing any online earnings such as eBay Statements, Paypal etc
Whilst you’re not required include these records when you file your tax return, keeping them somewhere safe will make it easier for you to work out your business profits, claim any tax relief and allowances you might be entitled to, and locate any records easily if requested by HMRC.
How to keep your accounting records organised
Do it online
Keeping all invoices, receipts and statements in an online folder such as Dropbox will allow you to locate any records easily, as well as freeing up space in your office.
Scan in anything on paper such as receipts, and load them into your online folder as well. Make sure your business name, address, and VAT numbers are clearly visible.
Set up an easy to use filing system
Whether your records are stored online or in a physical folder it’s important to have a good filing system in place.
Have separate folders for different records, for example have all your VAT documentation in one folder and all expense receipts in another folder.
Clearly label each folder and store everything somewhere safe and secure.
Have a business bank account
It’s not a legal requirement to have separate personal and business banks accounts but it is recommended by HMRC.
Keeping your business bank accounts separate will also make life easier for you as you can be confident that everything is in one place. You will be able to easily give your bookkeeper or accountant access to your bank account without worrying about any personal expenses.
Ask someone else to do it
If admin really isn’t your thing, or you simply don’t have time to do it, it’s a good idea to employ an accountant to take care of it all for you.
When you find an accountant or bookkeeper you can trust, you can hand over all receipts, invoices, statements and bank account details and let them keep it all organised for you so that you can get on with running your business!
If you would like to talk to Magpie Accountancy about helping with your accounts, please do get in touch.