If you are soon to be launching your own business, accounting and bookkeeping are aspects you do have to factor into the running of the business. Failing to record every transaction can quickly lead to confusion, and with that in mind, here is a guide to help you manage your business finances effectively.
Make Good Use of Available Technology
While you can use the old-fashioned ledger book to record all of your expenses, most small business keep online accounts. Microsoft Excel spreadsheets can be used to list all expenses, and by creating a sheet that has many columns, you simply list the expense and allocate a receipt number. Having a cloud-based bookkeeping system has many advantages:
- You can enter data from any location.
- Your accountant can also be granted access, which means they can easily prepare your quarterly audits.
- No bulky books to carry.
Of course, every payment you receive will be recorded in yet another spreadsheet, and corresponding invoice numbers are allocated to each payment, along with details of the amount, the client name, when and how it was paid. Any accountant in East London would set you up with a good bookkeeping routine that covers all income and expenditure.
Getting into a Daily Routine
There is no easier way to keep track of all business transactions than allotting some time at the end of the day to update your spreadsheet files. Luckily, there are unlimited free resources online about how to best manage business finances, which will help you create a bookkeeping system that works for you.
After a short while, it will become second nature to do this at the end of every business day, and this also makes it much easier for your accountant to keep track of things.