Whether you’re the brains behind a small business, a micro venture, a start-up or even just the inkling of a lightbulb moment with legs, you need to start thinking about your bookkeeping.
Far too many entrepreneurs think that they’re too small for bookkeeping and accounting to apply, but trust us when we say that no matter what your scale, these things won’t just slip under the radar. Honestly. Really. (Sorry).
You might get away with lackadaisical bookkeeping in the very infancy of a brand-new enterprise but it won’t be long before cracks start to form. It’s always advisable to start good habits early and stand your empire in great stead for growth and success further down the line.
So, whether you’re working from a laptop in bed, a workshop in the garden shed or out in the field, all of these bookkeeping must-dos apply to you.
Set up a business bank account
This might sound like an obvious one – and maybe even borderline offensive to some of you – but so many new entrepreneurs drag their heels about setting up a business account. Even if you’re only processing two invoices a month at the moment, keeping things in one place is crucial for best practice bookkeeping and will help you if HMRC come a-knockin’.
Keep work and play separate
At this scale it’s easy to let personal and business expenditure overlap, but it’s essential for good bookkeeping to keep them separate. Keep your business account for business-related spending only. Nope, not even the odd night out or your monthly Netflix subscription.
Be like a dog with a bone when it comes to late payments
Large companies will likely have an accounts department who can shoulder the pesky task of chasing invoices and overdue payments. As a small business owner, this most probably falls to you – along with everything else. It’s paramount that you step up to the task.
For a small business, even just one late payment can have a hugely detrimental impact on cash flow so chase, chase, chase.
Squirrel away some savings for tax
Don’t risk falling foul of HMRC fines. Doing your taxes is crucial – both submitting a return and paying the bill! Put money away with each sale, to make paying your tax bill easier.
Invest in a reputable accountant
So many small business owners think hiring an accountant is just for the big dogs but this isn’t really the case. There are plenty of accountants who work with entrepreneurial novices, helping to meet deadlines, be tax efficient, and generally stay out of trouble.
Read more about how Pandle’s features can keep you in bookkeeping health, or use the Live Chat button to talk to the team.