For busy small businesses, the last thing you’ll want to be looking at is your accounts. From keeping the customers happy to acquiring new clients, your small business has to do a lot of work with a small team.
However, it is essential for your success that you keep your business finances in order. To help you to manage the accounts more efficiently, here are some of the best accounting hacks that all small businesses should be utilising.
Great businesses keep a record of all their invoices and receipts to make their life easier when it comes to the end of the financial year. It is essential to keep a record of all of your incomings and outgoings so that you can be fully compliant for tax purposes.
One of the best ways to do this is by having a separate banking account and using a phone app or software (see tip 4 below – it’s our favourite) that makes it easy for you to keep track of receipts. Some software will even categorise your expenses to make analysis easier, allowing you to up your game on a regular basis.
Create calendar reminders
Tax returns are extremely important. Missing your deadline can result in a fine, something a small business can really do without. To ensure you keep as much of your profits as possible, keep reminders strategically placed, so you are always on top of your tax returns.
Don’t just set a reminder on deadline day, give yourself a few weeks to prepare. Paying tax in instalments can really help your business to manage finances throughout the year.
Learning should be a lifelong endeavour
Learning about your finances and keeping up to date with the latest rules is one of the best accountancy hacks you can possibly do. If you keep learning this can help you stay on top of things, increase your margins and boost your profits. Ask for support and make time to read up on the latest updates so you can help your business to adapt to changes in technology, markets and trends.
Head to the cloud
Using cloud based accounting software is one of the smartest things that a small business can do. Not only are cloud based accounting platforms such as a Pandle agile, easy to use and affordable, they are accessible anywhere in the world from any computer or device.
You don’t need to worry about falling afoul of HMRC at the end of the tax year – Pandle will tell you exactly how much you owe and prompt you to set this figure aside as the year progresses. That’s simple – and smart.