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HMRC removes penalties for late filing and payment … but here’s our advice!
ADM Accountancy • January 11, 2022
On 6th January 2022, HMRC that they will not charge:
· late filing penalties for those who file online by 28th February 2022 or
· late payment penalties for those who pay the tax due in full or set up a payment plan by 1st April 2022.
This is intended to give customers and their representatives additional time if they need it, and will operate in the same way as the equivalent waivers last year.
ADM Accountancy Comment
We continue to encourage our clients to file and pay on time if they can and it is worth noting some caution as the following will still apply:
There is no change to the filing or payment deadline and other obligations are not affected. This means that:
a. interest will be charged on late payment. The late payment interest rate from 4th January 2022 is 2.75%;
b. a return received online in February will be treated as a return received late where there is a valid reasonable excuse for the lateness.
This means that:
- there will be an extended enquiry window;
- for returns filed after 28 February the other late filing penalties (daily penalties from 3 months, 6- and 12-month penalties) will operate as usual;
- a 5% late payment penalty will be charged if tax remains outstanding, and a payment plan has not been set up, by midnight on 1st April 2022. Further late payment penalties will be charged at the usual 6- and 12-month points (August 2022 and February 2023 respectively) on tax outstanding where a payment plan has not been set up;
c. self-employed customers who need to claim certain contributory benefits soon after 31st January 2022 need to ensure their annual Class 2 National Insurance contributions (NICs) are paid on time – this is to make sure their claims are unaffected. Class 2 NICs are included in the 2020 to 2021 balancing payment that is due to be paid by 31 January 2022.
Benefit entitlements may be affected if they:
- couldn’t pay their balancing payment by 31 January 2022, and
- have entered into a Time to Pay arrangement to pay off the balancing payment and other self-assessment tax liabilities through instalments.
What next?
We believe that keeping effective accounts shouldn’t be a headache to any size business. We do our job well, so that you can do yours even better.
At ADM Accountancy, we support SMEs with all their accounting requirements, from bookkeeping to self-assessment and VAT returns, and Management Accounts and Wealth Management. Speak to one of the team on 01242 679767 or email enquiry@admaccountancy.co.uk today.
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Before listing the components of a cash flow forecast, it’s crucial to understand the concept of what this kind of forecast is. Essentially, it’s a vital tool that helps you understand your finances. To be precise, a cash flow forecast is an estimation of how much money comes in and goes out of your company. And it can be as detailed as you need it to be and for whatever period. But for a cash flow forecast to be useful in any business, it needs to have the following components. 1. Projected Sales This is what all cash flow forecasts depend on. A good way to come up with projected sales figures is to look at historical data. You must use seasonal patterns, promotions, market trends, and past figures to estimate future sales. But if your company is new, it’s possible to make sales projections from competitor, supplier, and industry data. 2. Projected Expenses Every business has expenses, including rent, insurance, manufacturing, and others. That’s why it’s a key component when making a cash flow forecast. It’s essential to have a firm understanding of what goes out of the company for the next month or year, depending on the term of the forecast. 3. Projected Outgoing Payments To make an accurate cash flow forecast, you must know when payments have to go out. Make sure to check with suppliers, vendors, investors, banks, and service providers. Include that information in the forecast to know e xactly when you have to pay more. It should also give you a good idea of any delayed payments. 4. Projected Incoming Payments When working with repeat customers and clients, it’s easy to see patterns with your cash inflow. Look at historical data to see how people pay and identify how many of your customers pay upfront. You also have to figure out how many of them delay payments or perhaps often pay late fees. Knowing when money comes into your business will help you make a more accurate cash flow forecast. 5. Communication and Good Software Working with numbers isn’t as hard as it used to be, thanks to all the technology available today. That’s why software is a vital component when it comes to making a cash flow forecast. Of course, the accuracy of a forecast also depends on communication between various individuals and departments. If people don’t input the right numbers and ignore concerns or inefficiencies, you will end up with bad information in your database. Although cash flow forecasts rely on numbers to give you the desired projection, those numbers come from people. That’s why having clear lines of communication in a business can help ensure the accuracy of the data that you work with. Don’t Sleep on Projections You can’t rely on a single cash flow forecast for the whole duration of the business, especially if it’s a longer-term one. Lots of things can happen from year to year and month to month. And a forecast that looked promising two months ago may not hold true two weeks from now. That’s why it’s critical to create one early on, ideally at the start of every financial year. As you proceed, revisit the projection and adjust accordingly since cash flow forecasts are flexible. If you'd like support with Cash Flow Forecasting, contact the team at ADM Accountancy on 01242 679767 or visit: www.admaccountancy.co.uk
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Keeping your small business financially sound is one of the most difficult - and important - aspects of running a successful company. When something is amiss with your financial management, it can quickly spiral out of control and threaten the very existence of your business. We've put together a list of the most basic steps you need to take to ensure that your small business stays on track financially. Of course, seeking expert advice is always recommended, but these tips will help you get started in the right direction. 1) Track Your Expenses Carefully This should go without saying, but it's important to keep a close eye on your expenses. In fact, you need your records to be impeccable. Many small business owners make the mistake of letting their spending get out of control, without realizing how much it is actually impacting their bottom line. Create a budget and stick to it as closely as possible. You should know exactly what you're spending and why. This will enable you to understand which costs are generating a sufficient return and where you may be able to cut costs. 2) Keep Your Personal and Business Finances Separate One of the biggest financial mistakes you can make is commingling your personal and business finances. Not only does this make it much more difficult to track your expenses, but it can also lead to serious legal problems down the road. If you want to keep your small business financially sound, it's crucial that you maintain a clear separation between your personal and business finances. 3) Manage Your Taxes Properly (from Day One) Another mistake that many small business owners make is failing to properly manage their taxes. This can be a complicated process, but it's important to ensure that you're paying all of the taxes you owe and taking advantage of any deductions or credits you're entitled to. Failing to properly manage your taxes can lead to significant problems down the road, so it's important to get this right from the start. 4) Put a Solid Invoicing System in Place Late payments and unpaid invoices are one of the biggest financial problems faced by small businesses. If you want to ensure that your small business is financially sound, you need to put a solid invoicing system in place. This should include sending invoices out in a timely manner and following up with clients who are late in paying. You may also want to consider using software that can help you automatically send reminders and track payments. This is especially useful if you need to send a large volume of invoices each month. 5) Build a Healthy Cash Reserve One of the best ways to ensure that your small business is financially sound is to build up a healthy cash reserve. Now, this is certainly easier said than done, but it's important to have a buffer of cash on hand in case of unexpected expenses or slow periods. Ideally, you should aim to have enough cash to cover 3-6 months of operating expenses. This will ensure that you're prepared for anything that comes your way. Of course, these are just a few of the most important steps you need to take to ensure that your small business is financially sound. For more detailed advice, be sure to seek out the help of a qualified accountant or financial advisor. Speak to one of the team at ADM Accountancy on 01242 679767 , who would be happy to help.
If you're not using cloud accounting software for your small business accounts, then you're making your life much more difficult than it needs to be. The days of having to manually enter accounting data into outdated software programs are long gone. Cloud accounting simplifies the process by providing a range of features that make managing your finances much easier. Let's take a closer look at how. 1 - Easy access In the past, accessing accounting data could be difficult when there was no one at the office. With cloud accounting, you gain easy access from anywhere in the world, so you can review and manage your accounts no matter where you are. You can do it from your smartphone, tablet, or laptop, so you can keep up with your finances even if you're away from the office. 2 - Automated processes With cloud accounting, you can automate mundane tasks like invoicing and bill payments. This eliminates the need to enter data manually, saving you time and energy that can be put towards other activities. Automation also helps to prevent human errors, making your financial data more accurate. 3 - Real-Time collaboration Cloud accounting allows multiple users to access and collaborate on financial data at the same time. This makes it easier to have real-time conversations about financial issues and make timely decisions that can help your business grow. 4 - Automated data entry No more manually entering data into a system. With cloud accounting software, you can automate data entry for receipts and invoices so your workspace is always up to date. This also reduces data entry errors, giving you greater control over your finances. Plus, let's be honest: data entry is boring and time-consuming. Automation makes it easier and more efficient so that you can put your time and energy to better use. 5 - Security Cloud accounting software keeps your data far more secure than if it were stored locally. It's also updated regularly, so you can be sure that your data is always secure and up to date. And because multiple users can access the data at the same time, you don't have to worry about keeping track of multiple copies of documents. Should disaster strike and your system go down, your data will still be safe and secure in the cloud. 6 - Third-party app integration Cloud accounting software integrates with other third-party apps and services, allowing you to automate tasks like payroll and tax filing. For example, you can connect your cloud accounting software to an online payroll provider and have it automatically calculate employee salaries, deductions, and taxes. This integration also makes it easier to track expenses, giving you greater control over your finances. 7 - Simplicity Cloud accounting software simplifies your books and makes the process of managing your finances easier than ever. By automating mundane tasks, you can free up more time to focus on other important aspects of your business. Plus, simplified and centralised data makes it easier for you to understand what's happening in your business, meaning that you can make better and more informed decisions. Final thoughts Using cloud accounting software can make managing your business's finances easier and more efficient. With features like easy access, automated processes, real-time collaboration, automated data entry and third-party app integration, you can rest assured that your financial data is secure and up to date. Plus, you can use the extra time saved to focus on other aspects of your business, giving you a competitive edge. Founded in 2009, ADM Accountancy Services Ltd specialises in supporting small businesses and SMEs within the Professional Services sector, with all their accountancy needs. Speak to one of the team at ADM Accountancy on 01242 679767.
Missing payroll can be a nightmare for any business owner. Not only do you have to worry about the financial repercussions of not paying your employees, but you may also have to deal with legal consequences, too. However, if you find yourself in this situation, there’s no need to spiral because there are a few things you can do to mitigate the damage. Missing payroll There are a few common reasons why businesses miss payroll. The most common reason is simply that the business doesn't have enough money to pay their employees this month. This can be due to a slow period or unexpected expenses, or due to poor budgeting. Businesses also sometimes miss payroll because of a mistake somewhere in the payroll process. This could be due to using outdated software, an error in calculating hours worked, miscalculating taxes, or failing to properly process payroll deductions. Whatever the reason for missing payroll, it's important to take action immediately. The longer you wait, the more damage you'll do to your employees and your business. Better budgeting If you're missing payroll because you don't have enough money, then you need to take a close look at your budget. See where you can make cuts in other areas so that you can free up some cash to cover payroll. You may also need to take out a loan or line of credit to cover the shortfall. You should also take a close look at your budget to see where you can make changes so that you don't find yourself in this situation again. Ideally, you should have a cash reserve to act as a buffer so that even when an unexpected expense occurs or you have a quiet month, you still have enough funds available to pay your staff on time. Cash flow forecasting Another tool that can help you avoid missing payroll is cash flow forecasting. This involves estimating how much money will be coming into your business and when, and then using that information to plan your spending. This can help you identify potential problem areas so that you can take steps to avoid them. Payroll mistakes If you've missed payroll because of a mistake in the process, then you need to take steps to correct the mistake and prevent it from happening again. Being paid late or incorrectly angers and frustrates employees, so it's important to take action to make sure that this doesn't become a regular occurrence. Otherwise, you risk losing good employees. If you're using out-of-date software, consider upgrading to something more modern that will automate some of the payroll process and help you to avoid mistakes. If you're miscalculating hours worked, consider using time tracking software so that you have a more accurate record of employee hours. It's also worth considering outsourcing payroll to an accountant who can handle the process for you. This will help you to avoid the hassle and stress of dealing with payroll yourself, which can be a huge help when you're busy with other aspects of running your business. Communication Whatever the reason for missing payroll, it's important to communicate with your employees. They need to know what's going on and when they can expect to be paid. Be honest with them about the situation and keep them updated on what's happening. If you're having financial difficulties, let them know and explain what steps you're taking to rectify the situation. In the wake of a payroll error, transparency is key to maintaining employee trust. Missing payroll can cause a lot of damage to your business and employees, but there are steps you can take to mitigate the damage. Better budgeting, cash flow forecasting, and payroll mistakes can help you avoid missing payroll in the future. Communicating with employees is also key during these difficult times. If you're really struggling with payroll, hiring an accountant to advise you and manage your payroll is the easiest and most effective way to ensure that your business can stay afloat. In addition to putting efficient payroll systems in place, they will also help you to budget and forecast your cash flow properly to ensure that you always have enough money to meet your financial obligations. Call ADM Accountancy on 01242 679767 or visit www.admaccountancy.co.uk
When it comes to running a business, it's important to focus on the customers that are the most profitable. Not all customers are created equal, and some customers may even be dragging your business down. In this blog post, we will discuss how to identify your most profitable customers, and the next steps to take once you've established who your biggest profit drivers are. Differentiate Between Revenue and Profit Just because a customer spends a lot of money with you does not mean that they generate a lot of profit. To get a clear understanding of who your most profitable customers are, you need to take a closer look at your profit margins. To do this, you need to calculate your gross profit margin for each customer. This number will tell you what percentage of revenue is left after accounting for the costs of goods sold. For example, let's say that you have a customer who spends £100 with your company every month. To calculate your gross profit margin, you would take the total revenue (£100) and subtract the cost of goods or services sold (£40). This would leave you with a gross profit of £60. To calculate the gross profit margin, you would then take that £60 and divide it by the total revenue of £100, and this would leave you with a 60% margin. On the other hand, if a customer spends £300 per month with you but it costs you £250 to deliver their goods or services, you would be making a profit of £50. Despite the higher customer spend, your profit margin would stand at 16.6%. In this case, the customer who spends less with you is actually more profitable. So, while customer spend is important to consider, it's not the be-all and end-all when determining who your most valuable customers are. Sales Volume However, while one customer may generate an impressive profit margin, they may not necessarily drive a high volume of sales. In this case, you might want to consider customers who generate a high volume of sales, even if their profit margins are slightly lower. For example, let's say that you have two customers - Customer A spends £100 with you per month and has a gross profit margin of 60%, while Customer B spends £2,000 with you per month but only has a gross profit margin of 30%. Customer B is still generating twice as much profit for your business, even though their profit margin is lower. Consider Customer Lifetime Value When determining who your most profitable customers are, it's also important to consider customer lifetime value (CLV). This metric looks at the total amount of revenue that a customer will generate for your business over the course of their relationship with you. To calculate CLV, you need to take into account a number of factors, including the average purchase value, the number of purchases per year, customer retention rate, and the profit margin. For example, let's say that the average customer spends £100 with you per year, makes two purchases per year, and has a retention rate of 50%. Additionally, let's say that your profit margin is 50%. To calculate the CLV, you would take the average purchase value (£100) and multiply it by the number of purchases per year (2). This would give you a customer value of £200. You would then multiply this by the customer retention rate (50%), which would give you a CLV of £100. As you can see, the customer lifetime value can give you a more holistic view of how profitable a customer is likely to be in the long run. Trimming the Fat Sometimes, if a customer or client is simply not profitable, you might have to let them go. This can be a difficult decision to make, but it's important to remember that not every customer is going to be right for your business. Your time, and your staff's time, is a valuable resource. If you're spending too much time and effort trying to service a customer who isn't generating enough revenue or profit, then you may well be better off without them. By focusing on customers who really drive value for your business, you can free up time and resources to better serve your most profitable clients. This helps you to create a leaner and more profitable business that is ultimately more enjoyable and rewarding to run. Final Thoughts When it comes to determining who your most profitable customers are, there is no one-size-fits-all answer. It's important to take a variety of factors into account, including customer spend, gross profit margin, customer lifetime value, and more. By taking the time to analyse your data and understand how different customers contribute to your business' bottom line, you can make more informed decisions about where to focus your efforts – and increase profits in the process. ADM Accountancy Services Ltd is a Chartered Management Accountants based in Bishop's Cleeve, Cheltenham. We support clients' businesses throughout Cheltenham and the surrounding areas, including Tewkesbury, Gloucester, Stroud and Evesham. Call 01242 679767 or visit HOME - ADM ACCOUNTANCY SERVICES
If you're running a business, then you need to understand net profit margin. In fact, this metric is one of the most important indicators of a company's financial health. In this quick guide, we'll explain what net profit margin is, how to calculate it and various factors that affect it. What is Net Profit Margin? Put simply, net profit is the amount of revenue that a company keeps after all of its expenses and taxes have been paid. The net profit margin is the percentage of revenue that the company keeps. So, if a company turns over £100,000 and keeps a net profit of £20,000, the net profit margin would be 20%. To calculate net profit margin, you first need to calculate net profit. You do this by subtracting all expenses from total revenue. This gives you the net profit figure. To get the margin, you then divide this figure by total revenue, and multiply by 100. With operating profit, you only subtract expenses that are directly related to the running of the business. This includes things like cost of goods sold, labour and rent. With net profit, you also subtract things like taxes and interest payments. Here's an example: Let's say a company has total revenue of £100,000 in a year. If its expenses total up to £60,000, then it's left with a net profit of £40,000. To calculate the margin, we divide the net profit by total revenue and multiply by 100. This gives us a net profit margin of 40%. Now that we know how to calculate it, let's take a look at some of the factors that can affect a company's net profit margin. Costs One of the most important factors affecting net profit margin is costs. The lower a company's costs in relation to revenue, the higher its margin will be. There are two main types of costs: Reduce variable costs. Variable costs are things like raw materials and labour that change in relation to production levels. If a company can find ways to reduce these costs, then its margin will increase. Reduce fixed costs. Fixed costs are things like rent and insurance that don't change in relation to production levels. Revenue Another important factor affecting net profit margin is revenue. The higher a company's revenue in relation to its costs, the higher its margin will be. There are two main ways to increase revenue: Increase prices. This is probably the most direct way to increase revenue. If a company raises its prices, then it will make more money on each sale. Increase sales volume. This is the other main way to increase revenue. If a company can sell more products or services, then it will make more money overall. Taxes Another important factor affecting net profit margin is taxes. By working with an accountant to create a good tax strategy, businesses can minimize the amount of taxes they have to pay and take full advantage of any incentives or breaks available to them. Comparing Net Profit Margin to Other Metrics Net profit margin is a useful metric, but it's important to put it into context. Here are some other financial metrics that can give you a more complete picture of a company's financial health: Gross profit margin. This metric measures the percentage of revenue that a company keeps after paying its cost of sales only. Operating profit margin. This metric measures the percentage of revenue that a company keeps after paying its operating costs. These are the costs associated with running the business, like labour and rent, as well as cost of sales. Return on assets, which is how much profit a company makes in relation to its assets. Debt-to-equity ratio. This metric measures a company's debt relative to its equity. As you can see, net profit margin is just one piece of the puzzle. To get a complete picture of a company's financial health, you need to look at a range of different metrics. Final Thoughts As you can see, net profit margin is a very important metric for businesses. It's a good idea to calculate it on a regular basis to track your company's financial health. By understanding the factors that affect it, you can gain a clearer picture of your business' overall financial health and make strategic decisions to improve your business's bottom line. Need help with your business accounting? Call ADM Accountancy on 01242 679767 or visit www.admaccountancy.co.uk .
Scaling your small business is incredibly exciting, but there’s a lot to think about. It’s important to have solid rules and guidelines in place, and a clear plan to follow. If you’re ready to scale up your small business then read on for seven top tips to help you do it. 1) Hold onto your values Your values should always be at the heart of your business, so be careful not to lose sight of them as you scale up. After all, these values have been instrumental in helping you achieve success so far, so don’t sacrifice them as your company grows. 2) Identify your barriers What is getting in the way of your growth? What could go wrong as you scale up? Take a step back, put your emotions to one side and take an honest, objective look at your business. Do you lack funding? Are you experiencing cash flow issues? Do you have a high staff turnover rate? Are there problems with your current premises? Identifying your barriers to growth is the first step to overcoming them so don’t be afraid to take a long, hard look at your business. Every business has its weaknesses, so don’t be disheartened by yours but instead view them as an opportunity to improve. 3) Run the business you want, not the business you have In order to scale up successfully, you need to bridge the gap between where you currently are and where you want to be. What works for you right now might break as you begin to grow, so it’s important to put systems and SOPs in place that will continue to work seamlessly as you scale up. Take a look at your cash flow, team, IT systems, workflows and supply chain to see what is going to creak or even break as your business expands, and prepare accordingly. 4) Build the right team Leading on from the previous point, building a strong team of employees is an essential part of scaling your small business. You will need to take on more staff as you grow and ensure that they share your values. When hiring, place special importance on attitude and willingness to learn; you can teach an employee new skills but it’s very difficult to fix a negative mindset. Staff morale is essential to productivity and a low turnover rate, so it’s in your best interests to create a supportive company culture that helps each team member reach their potential. Remember that making your staff feel seen, heard and appreciated goes a lot further than fancy merchandise or an extravagant Christmas party ever will. 5) Learn from the competition Study your competitors who have successfully scaled up - how did they do it? What worked well for them, and what could they have done better? How did they change as they grew? Your competitors constitute a valuable learning opportunity, particularly when it comes to business growth. 6) Stay focused on customer service The last thing you want to do when scaling up is antagonise your customers. You must remain consistent with the quality of your customer service; scaling up will do more harm than good if it causes all of your customers to flock elsewhere. Of course, mistakes do happen but it’s important to rectify them as soon as possible, maintain honest communication with your customers and make them feel valued to keep them coming back. 7) Monitor your cash flow Many of the biggest challenges businesses face during the scale-up phase are cash flow related. Whilst you do have to spend in order to grow, it’s important to keep a close eye on your cash flow throughout this process so that you know where every penny is going. This way, you can identify and solve any issues as soon as they arise, and see off potential threats before they come to fruition. It’s also important to prepare an adequate cash reserve for emergencies and unforeseen costs so that bumps in the road don’t cause a total breakdown. Summary Whilst the scale-up phase can be challenging for small business owners, it’s also exciting and provides a great opportunity to build an even better business. Whilst we can’t promise that employing the above seven tips will make scaling your business 100% worry free, they can make the process significantly smoother and easier. Call ADM Accountancy for advice and support with your business accounts on 01242 679767.
Bookkeeping might not be the most exciting part of running your small business, but it is an absolutely essential task that undoubtedly plays a big role in your financial success. Bad bookkeeping can lead to myriad problems down the line, such as missing out on tax deductions or having to pay unexpected penalties. Meanwhile, great bookkeeping helps you to maintain control and visibility of your finances, plan for the future, and make accurate decisions. What is bookkeeping? Bookkeeping is the process of tracking and recording all your financial transactions and is the foundation for all your accounting tasks. The end goal of any bookkeeping system is to have accurate financial records that you can use to make informed decisions. Bookkeeping terms to know Accounts Payable Accounts payable are the amounts of money that you owe to vendors and suppliers. This typically includes things like the bills from the website hosting service or your office supplies provider. Accounts Receivable Accounts receivable are the amounts of money that your customers owe you. This includes things like customer invoices, deposits, and payments towards services or products that you provide. Assets Assets are the items that your business owns. This includes physical assets such as computers, furniture, or vehicles, as well as intangible assets like intellectual property or software. Balance Sheet A balance sheet is a financial statement that summarizes the assets, liabilities, and equity of your business. Cost of Goods Sold The cost of goods sold (COGS) are the direct costs associated with producing goods or services, such as materials and labour. Expenses Expenses are the costs incurred in order to run your business, such as rent, office supplies, salary, or advertising. Equity Equity is the amount of money that your business has earned through profit or reinvestment. Liabilities Liabilities are debt that your business has taken on, such as loans, credit card balances, or lease payments. General Ledger The general ledger is the main record of your financial transactions, and it serves as a master account book for your business. It includes all accounts for your income, expenses, assets, liabilities, and equity. Journals Journals are used to record financial transactions in chronological order. These include cash disbursement journals, accounts payable journals, and accounts receivable journals. Reconciliation Reconciliation is the process of making sure that your financial records are accurate and up-to-date. This involves reviewing transactions, statements, and other documents to verify that they match up. Revenues Revenues are the income that your business earns from sales, services, or other activities. Payroll Payroll is the process of calculating and distributing wages to your employees. How to get your bookkeeping right Now that we've established some basic bookkeeping terms that you need to know, let's turn our attention to the actual process of getting your bookkeeping right. Here are some tips to help you get started. 1. Choose the right bookkeeping software There are plenty of great cloud software solutions and apps that make bookkeeping easier. Choosing the right one for your business will depend on a few key factors such as budget, features, and ease of use. 2. Set up a separate business bank account If you're using the same bank account for your business and personal transactions, or two businesses at once, that's a surefire way to make your bookkeeping far more complicated and frustrating than it needs to be. Setting up a separate bank account for your business will help you to keep everything organized and make tracking expenses much easier. 3. Automate as much as possible Having chosen the right bookkeeping software, it's important to take full advantage of its features. Look for ways to automate tasks like recurring bill payments, credit card charges, and customer invoices. Automating these processes can save you a lot of time and effort. 4. Stay on top of your records Bookkeeping is an ongoing process, so it's important to stay on top of your records. Make sure to update your accounts regularly, reconcile discrepancies in your bank statements, and review any invoices or receipts. 5. Create a process for document management Accurate bookkeeping requires that you keep up with all of your incoming and outgoing documents. Creating a process for document management will help you stay organized and make filing your taxes easier. 6. Budget for taxes One big mistake that many new business owners in particular tend to make is failing to budget for taxes. Set aside some money each month so that when tax season comes, you won't be caught by surprise. 7. Daily records A little-and-often approach to bookkeeping is the best way to ensure that you stay on top of your records. Make sure to keep a daily record of all transactions and reconcile your accounts weekly. 8. Track expenses carefully Having a clear record of all your expenses can help you to identify any potential problems or areas for improvement in the future. Take some time each month to review and categorize all your expenses. Bookkeeping is an essential part of running any business, and it's important to stay on top of it by taking the time to understand the basics and setting up a system that works for you. With the right tools and processes in place, bookkeeping can be manageable and empower you to make smarter decisions, creating a stronger and more financially solid business. Speak to one of the team at ADM Accountancy about our Bookkeeping service on 01242 679767 or visit: BOOKKEEPING - ADM ACCOUNTANCY SERVICES for more information
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