Chances are, as a sole trader, you are going to be so busy on what you actually do for a living that the last thing you want to do is worry about your finances. So here are a few easy, daily tips which will save you a headache at the end of the year when handing over to your bookkeeper:
Don’t mix business with pleasure – Get yourself a business bank account. This will enable you to keep your business money to itself, from this you can pay yourself from drawings. At the end of the year or throughout the year it will speed up the processing of your accounts and hence, saving you money.
Always ask for and keep receipts – You need to be able to prove what you have bought throughout the year. The best and easiest way to do this is by keeping your proof of purchase. If you are not offered a receipt then ask for one. This way you can file it away and leave it for your bookkeeper.
Keep a sales record – It’s always a good idea to keep a record of your sales both by managing a spreadsheet of running totals and also a folder with copies of all your sales invoices. Doing this will help you check that you have accounted for everything and nothing has gon amiss.
Keep note of your expenses – As well as keeping your receipts, try to keep a running tally of your daily expenses. Even if it’s just parking for £1.00, note it down. This will also help you if you missplace a receipt.
Check and keep your bank statements – These are vital documents for the smooth running of your business. Not only can you check the status of your bank account but they will really help your bookkeeper reconcile your transactions at the end of the year.
Give your paperwork priority – The sooner you can get your paperwork to your bookkeeper the sooner it can be processed. You don’t want any nasty surprises at the end of the year by leaving your bookkeeping to the last minute.
Save for your tax – It’s a good idea to save for your tax, whatever tax you are registered for, be it income or VAT and not forgetting your national insurance. Your bookkeeper can help you with this. A good rule of thumb is to put away between 10% and 15% into a savings account everytime you are paid. This will help take the brunt off any tax bill you receive at the end of the year.
If you’re not sure, ask! – Your bookkeeper is there to help you, if you have a question just stick it in an email
Following these easy steps will help to keep you on top of things , your bookkeeper happy and your bookkeeping expenses lower .
Contact me for more advice . I can help set up processes to help us easily work in your books together .