Accounting can be tough for new business owners – especially if numbers are not their strong suit. If that applies to you, using professional accountants in Goole or wherever you live may be best, but if that is not an option, try following these tips.
Study accounting and tax laws
Ignorance of the law will not be an acceptable defence if you fail to file your tax returns on time and accurately, so take some time to learn about it. Find out exactly when returns are due and what expenses and revenue information needs to be recorded, as well as how long you need to retain invoice copies.
Separate business and personal costs
It will be vital to compartmentalise your personal and business lives anyway, but for accounting purposes, keeping the two sets of expenses separate is most important. Cash flow is what will keep your business solvent, but you cannot track this properly if you do not know whether outgoings are business related or not. Maintain separate accounts for personal and business use.
Try to save
Lots of variables can affect small business cash flow, ranging from periods where work is slow to late payments by customers or suppliers. Try to put aside sums of money during profitable periods to ensure that you can keep trading when problems like these arise.
At Adaptive Accountancy, we advise small businesses on cash flow and tax and have built our reputation by word of mouth over the past decade. Call us today to learn more.