Bookkeeping is a necessary task for all small businesses, and when not completed properly it can lead to chaos and confusion. The coming New Year is a great opportunity to get organised and sort out your accounts for the coming year.

Here are some useful resolutions you can make to improve your bookkeeping skills and benefit your business:

Track every expense

Track your cash flow and label and categorise each expense on a spreadsheet. Use a business account card for all your purchases, and when you have to use cash make sure a digital copy of your receipt goes onto your accounting software.

Separate business and personal expenses

Having a separate business bank account and card makes claiming expenses on your annual tax return much easier.

Dedicate time to update your books, ideally every week

This is essential to avoid letting receipts and invoices pile up. You’ll thank yourself when your tax return is due and can be submitted early.

Record all your deposits 

It’s easy to lose track of loans, revenue from sales and other cash infusions. Accurately record these to avoid paying more income tax than you should.

Start factoring in labour costs

Paying yourself and any employees may well be your biggest expense. Don’t forget to record overtime or bonuses to prevent over or underpaying.

Follow up on invoices

Unfortunately, sending someone an invoice doesn’t mean you automatically get paid. Avoid overpaying taxes and hours sifting through your accounts by prompting people who owe you money. Accepting online payments can help automate this process for you.

Begin to expect major expenses

Replacing equipment, upgrading a computer and your annual tax payment deadline shouldn’t come as a surprise to you. Plan ahead to avoid taking a massive hit when you don’t need to.

For more information on how you can improve your company’s bookkeeping or for any help, contact us on 01623 490 120 or email This email address is being protected from spambots. You need JavaScript enabled to view it..