Harrison Hinchliffe & co provide a full bookkeeping service to businesses throughout Glossop and Manchester and even further afield in to Liverpool, Derbyshire, Lancashire and Cheshire. Bookkeeping is a very important process to manage for any business, it involves recording your financial transactions through checking sales, receipts and payments by either an individual or business to another business.
We can create income statements and balance sheets for your business in line with government requirements. Bookkeeping is great for creating financial statements for the business in the main areas:
· Income Sheet
· Balance Sheet
· Cash Flow Statement
· Statement of retained earnings
If your company requires a bookkeeping service, why not ask our advice today and we will be happy to demonstrate how bookkeeping services are a the perfect way to keep your business balanced profitable.
Bookkeeping basics every new business owner must know
Few people start a new business so they can do paperwork. Spending time adding up receipts or pushing invoices around a desk is nobody’s idea of fun!
Unfortunately it’s a necessary evil and something you need to stay on top of in your new business. Being disorganised and putting off paperwork just isn’t an option unless you let Harrison Hinchliffe do this for you.
Her Majesty’s Revenue & Customs (HMRC) will fine you if you’re late getting essential information to them. And the longer you leave it, the worse the problem gets. So here’s what every small business owner needs to know about book keeping.
Being on top of your book-keeping will also help you maintain a healthy cash flow within your business.
Keep proper financial records
1. Cash book
The payments into and out of your bank account. Keep it up-to-date, and after a few months you’ll be able to use it as a forecasting tool rather than just a historical record.
2. Sales invoice file
If you use an accounting package, you can use them to issue and store invoices. If you do them manually using Word, keep a record on file. Store invoices in chronological order. Keep those which haven’t yet been paid at the front of the file to help your credit control.
Our online accounting system Iris Open Space will upload scanned invoices to ‘The Cloud’, so you have no worries about losing your files if you store them locally and we can do the rest for you.
3. Purchase invoice file
Get used to making notes on invoices about when you paid them and how (BACS, cheque, cash etc). File them in chronological order. This will make your life easier and keep your accounts’ bill down.
Get an invoice or receipt for everything you buy
Statistically, the longer you are in business, the higher your chances of a VAT or tax investigation. They’re normally nothing to worry about as long as you have a professional accountant like Harrison Hinchliffe Accountants on your side and all your paperwork to hand.
Get used to keeping a piece of paper for every transaction. If you buy something online print off the invoice. It’s easier to collect paper as you go along, rather than try to find it years down the line.
Keep your accounts clean – separate business and personal expenses
If you run a limited company, the business’s money is not your own – even if you own it 100%. As a director you can’t spend the company’s money on your own purchases, unless they are a legitimate business expense.
As a self-employed person you take drawings from your business, but you should still maintain a separate bank account. Keep your accounts clean by keeping your business and personal finances separate.
Check bank statements
You should spend time checking your bank statement every month. Apart from combating the risk of fraud or a mistake by your bank, you will gain a better understanding of where you are spending money.
Successful businesses have great credit control and are spend money smartly – make this a habit from day one.
Put time aside to do your book-keeping regularly
When you are starting out it’s tempting to leave your book-keeping until the evenings. But if you’re tired simple tasks will take longer, and you’re more likely to make mistakes.
If you need to tackle a job like this outside of working hours when you could be earning money, then consider letting us handle this stress for you.
You may well find that using a suitable accounts software package takes much of the pain away. We highly recommend Sage One online accounts system – you can access anytime, anywhere which is great for a busy new business.
Get help with your finances
If there’s one area you shouldn’t skimp on professional help, it’s with your finances. We will save you more money than they cost.
If you are struggling to keep up-to-date with paperwork, consider doing what you can and get us to get your books in order on a regular basis.