Streamline Your Business Finances

Streamline Your Business Finances: Expert Bookkeeping Tips and Software Solutions

We all know that compliance with HMRC regulations is mandatory but well-organised record-keeping practices offer other benefits too. Accurate records mean that you can not only manage cash flow but also identify areas for growth or improvement so solid record keeping is essential for any business.   

In today’s digital age, there are so many excellent accounting software packages out there to help with Bookkeeping but it can be a bit of a minefield trying to work out the best one for your business. Choosing a software package will enable you to enjoy instant access to your financial numbers, key performance indicators (KPIs), and cash flow metrics. However, without good bookkeeping, this access can quickly deteriorate along with the accuracy of your financial insights.  In this blog we learn why fast and accurate bookkeeping is so important and what the key bookkeeping tasks are that every business should prioritise.

Why Solid Bookkeeping is Essential

Bookkeeping is the backbone of your business’s financial processes. It’s the foundation upon which your accounting software operates, and should be relied upon for up-to-date figures.  Your accountant depends on this to assess your business’s financial health. Properly recording financial transactions is also a legal requirement for registered businesses, especially when dealing with goods and services tax and VAT.

Good bookkeeping creates a historical trail of your finances, enabling you to track cash flow, revenue, and profits over time. Without it, your financial decision-making can become compromised, putting the stability and growth of your business in jeopardy.

What are the Seven Vital Components of Good Bookkeeping Practice?

• Record every item connected to your business, remember to include anything paid on a personal credit card or in cash. Also attach relevant documents to the accounting entry. 
• Issue and send out sales invoices ASAP after completing the job (or when agreed). Send reminders from day 1, making these stronger as the delay increases.  This sets a precedent and encourages timely payments.
• Carry out a bank reconciliation often and regularly.  This confirms the bank transactions are correct but also keeps you up to speed with the heartbeat of the business.
• If there is no payroll operated, try to keep personal expenditure through the business account tidy and minimal, eg: pay yourself a regular amount each month.  Try not to mix personal and business expenditure.
• Monitor business expenditure religiously.  Regular payments can creep up under the radar. Create budgets and stick to them unless there is a good reason not to.
• Put money aside for taxes.  Estimate tax becoming due and when the payment dates are and allocate accordingly each month to another bank account. 
• Whilst not strictly bookkeeping, it is important to take time out to reflect on your business operation.  Is it streamlined, organised and manageable?  If not, consider outsourcing to get back the control you should always have on your bookkeeping and finances.    .  

How to keep on top of Bookkeeping

You should keep track of your expenses making sure you retain receipts or make a note of purchase details and categorise each item clearly for your records.  Always keep personal and business finances separate as this makes it easier to keep track of what you’re spending.  Also try to avoid cash transactions if possible.  By using a debit or credit card you can keep track of the amount spent, where it was spent and on what, which is easier for tracking purposes.

Keep on top of your sales and purchase invoices by doing this little and often so it doesn’t build up into an onerous task.  Reconcile your bank account at least weekly so you know what funds you have available.

Check your records are accurate before sending them to your accountant and do this in a timely manner so that they have time to liaise with you over any queries or missing information and are able to file your paperwork ahead of the dreaded HMRC deadlines to ensure you don’t incur any fines.

Go paperless with a cloud-based accounting package, it’s one of the best things you can do. Accounting software assists companies and individuals with managing their financial data.  It tracks your income and expenses and can be used to produce financial reports. 

Accounting Software packages at a glance

Accounting software packages allow you to automate accounting tasks such as calculating taxes, recording financial transactions and generating invoices.  They are really intuitive and enable you to streamline accounting processes as they can be integrated with existing payment systems.  There are a whole range of accounting packages out there and there is one to suit every business, large or small.  Here we have highlighted the most popular software packages currently on the market.

Quickbooks is the world’s leading accountancy software. It is cloud-hosted and conveniently has direct connection with HMRC. It can assist with calculation and filing of VAT returns, invoice creation and expense receipt management to name but a few of its features.

Xero is a highly functional accounting software that can really help reduce the time it takes you to keep on top of your accounts.  It enables you to stay up to date with your cashflow and business finances.  It also produces real time reports and has the option to customise invoices. The accounting application makes reconciliation quick and easy by allowing you to import bank transactions if not using a direct bank feed.

Sage is a good online accounting option for SMEs.  It has a range of built-in features and is straightforward to set up and user friendly.  It conveniently automates billing and invoicing and syncs with your bank software, offering a real-time overview of your business finances to help you keep on top of your numbers.

FreeAgent is also a good choice for small businesses.  It provides a comprehensive bookkeeping solution and also has the facility to forecast UK tax liabilities. It makes the process of accounting simpler which leaves you with more time and energy to focus on growing your business.

Top tips from our Bookkeeping Experts

We asked Judith and Charlie, JMB Accounting’s expert bookkeepers, for their top tips and here’s what they said …

Judith suggests “Try to add as much detail as you can on each transaction, particularly if you have no paperwork to attach to the entry.  This makes it easier for the accountant to review your data.”

Charlie advises “Try to carry out the bookkeeping on a regular basis.  The longer it is left, the more it may become a chore and the more likely that errors will start creeping in.”

Call on JMB Accounting for all your Bookkeeping Needs

Whilst all these hints and tips are really helpful, even with the software packages, when it comes to your bookkeeping it is still nonetheless a complex process and can cause a real headache if it is not done correctly and accurately.  It can also be very time consuming and distract you from other areas of your business so it is advisable to outsource your bookkeeping to an expert.

At JMB Accounting we have vast experience in bookkeeping  having helped many businesses large and small in Hampshire.  We have experience in a number of software packages and can offer help and guidance when it comes to setting up your accounting software.   Once you’ve selected a package we can provide training to get you started.

We can assist you in customisation options for your business and can reduce the risk of errors by overseeing the setup process. We ensure your system is streamlined and create default, bespoke sales invoicing too.   When it comes to selecting a software package, we also offer excellent introductory rates and fees and will always match any online deals.  

Don’t just take our word for it, though. Here’s what our clients say:

 

“⭐⭐⭐⭐⭐ The Team at JMB Accounting have been so supportive and helpful in all areas of my business. They have provided sound advice across a number of issues and have taken me step by step into the digital age by helping to transfer my bookkeeping from Excel to Quick Books. This will improve both my efficiency and reporting processes. I could not recommend Jan and her team more highly.”