· Keep track of money owed to the business on a day-to-day basis
· Bank reconciliations easy and accurate – limits banking errors
· Reports can be generated at any point in time
· With cloud/app packages such as Xero and QuickBooks all the data you need can be at the touch of your fingertips.
· Monthly, weekly or even daily bookkeeping will make tasks such as VAT Returns, Payroll and producing Company Accounts a much easier task as any queries would have been cleared up each month.
Simple Do’s and Don’ts
· Keep receipts
· Store paperwork safely
· Keep an eye on turnover (if you reach £85,000 (as at 2017/18) you will need to register for VAT)
· Check your bank statements for discrepancies
· Use good bookkeeping software or hire a bookkeeper
· Get behind on bookkeeping
· Mix up personal expenses with business
· Throw anything away
· Assume your bookkeeper knows the background on all transactions
· Get behind on bookkeeping – leaving piles of paperwork and invoices laying around will make it more likely that invoices are lost and not accounted.