As the tax return deadline comes ever closer accountants and bookkeepers nationwide will be pulling their hair out and racing against time to get all the last-minute tax returns filed. It’s probably the most stressful time of the year for us and at some point we may say ‘why do I do it?’. I think it would be safe to say that everyone utters that phrase at some point during the year when work becomes stressful.

So WHY do I do it?

Personally I love bookkeeping because I enjoy working with figures and working closely with clients to help make sure that their business runs smoothly on the financial side of things. I have an analytical mind so quite often can spot problems/trends that a business owner may not notice, it might only be something simple but it could make my client’s business run more efficiently.

I also love meeting new clients as each business is different and has different needs: They may only need the books doing once a year, or once a month. Or they may ask me how they could save money or is there a better way of doing things. I love the variety that this profession brings with it.

It’s also nice being my own boss and to earn extra money alongside my main job, which one day I dream of quitting to run RS Bookkeeping on a full-time basis. My aim is for RS Bookkeeping to become a well known and respected business within my local area.

Enough about me, why do you do it?

There are many quotes that people take inspiration from, the one that I particularly like is:

“Don’t put off until tomorrow what can be done today”

Running a your own business can be very hectic, especially if you combine it with a full-time job. It’s very easy for the admin side of the business to be neglected in favour of making those all important sales. But putting off what could take half an hour  today until tomorrow will then become an hour when tomorrow’s work is added on to it. As you then struggle to remember what happened on day 1, the time taken to sort out all these little annoying admin tasks spirals out of control. As my mother says ‘Tomorrow never comes’.

The task which is put on the back-burner most often is the book-keeping side of things. You will know in your head how the business is going, but it’s essential to make sure that your records are updated each time a transaction occurs. It’s easy to forget that a payment needs to be made, or an invoice to be processed if you keep putting things off.

If you really hate doing the books, or would like some extra help, contact someone who enjoys being involved with the financial side of business. I recently read this article which explains the benefits to a small business of having someone to help them with their book-keeping.

Each night when you leave the office, make sure that everything is up to date. It may only take 5 minutes to do that filing, but what happens if something out of the ordinary occurs tomorrow morning? You’ll already be behind with things before you’ve started.

As the deadline for the self assessment tax reutrn looms ever closer, below are some of my top tips to help keep your business records in order. They may seem simple enough, but if you insist on sorting out your business’ financial records at the last minute these tips will help you keep on top of things.

Just remember that the information you are filing by the 31st January 2012 relates to transactions between 6th April 2010 and 5th April 2011. If you throw everything in a shoebox and expect to remember every detail, what can be up to 21 months later, you may forget some things. Follow these tips to keep on track:

 Buy 2 folders and some plastic wallets.

Label one folder ‘Invoices’ for the invoices you raise and the other one ‘Expenses’ for your business receipts. Put 12 plastic wallets in each one (one for each month) and put all the documents for the relevant month into the relevant folder. This helps to keep things in order.

Keep track of when you are paid.

When you have filed your invoices away, make sure to put a mark/stamp on them once you have been paid. That way you will know who to chase up for payments

Set aside time to get everything in order

If you do not want to employ someone to compile your business accounts, make sure that you set aside at least 1 or 2 hours a month to go through everything to make sure you have filed all your receipts and received all payments.

If you have a lot of transactions you may need to do this weekly – either way if it takes a large chuck of time away from running your business you should consider contacting a professional to do it for you. What takes 3 hours of your time may only take 1 hour of their time – can you afford to loose 3 hours pay just to get the books in order?

Keep a separate bank account

It’s very easy to think ‘I’ll remember that’ when paying cash into a personal account. To avoid any confusion consider opening a separate account just for your business transactions. Your payments and receipts can then be easily reconciled to your bank statement

Keep notes

If you have a transaction that is a little unusual for your business, make sure you put a note on the relevant paperwork to remind you about it. Things can be easily forgotten, but taking a few seconds to stick a note onto the receipt can save you a lot of head scratching later.

Regualarly check your cash-flow

It’s a great feeling if you are receiving lots of work and are constantly busy, but make sure you have enough money in the bank to pay for the bills. All businesses will have to pay insurances, membership fees to professional bodies, car tax etc… Use your phone, email, PC’s calendar to remind you well in advance so you can make sure that you have the money available to pay the bills

Ask!

If you are unsure about anything, ask someone who can help you. It’s easy to stick your head in the sand, but small problems can soon become big ones if they aren’t sorted quickly.

I hope these tips are of help to you, have you got any that you use to keep organised?

My shiny new business cards have arrived. What do you think (other than that I need a better camera!)

Business Card Front

Business Card Back

If you are looking for any book-keeping or accounts work carrying out and your business is based in and around the Pontefract area (or anywhere), please contact me sooner rather than later!

I offer a winning combination of expertise and and experience for sole traders and small businesses all with helpful advice and a friendly, efficient service as standard.

Now that the 2010/11 tax year has ended it makes more sense to sort out your financial affairs out NOW whilst things are still fresh in your mind. By leaving it until the end of the year you run the risk of forgetting something important. The sooner you have your accounts prepared, the sooner you will know what tax you will need to pay at the end of the year.

By employing a professional to compile your accounts you will have peace of mind that your accounts will be compiled correctly, and it also gives you time to focus on running your business.

RS Book-Keeping can help with all your book-keeping and accountancy needs at extremely competitive rates, contact me today to see how I can help you