LeeP Accountants top tips for a healthy relationship with your Accountant!
It’s no secret that business owners have to wear many hats – and most would agree that the least exciting of those hats is the bookkeeper’s.
A recent survey of businesses conducted by the ICAEW indicated that the #1 thing that slows down business growth is messy financial documents.
So here are 6 recommendations from LeeP Accountants based in Peterborough & Huntingdon that aim to help you & your business
1. Don’t mix personal expenses with business expenses
- When you’re just starting out, it can be easy to blur the lines between business and personal spending and income. Regardless of how much (or how little) money you have coming in, we can’t stress enough how important it is to set up separate Bank accounts and budgets for your business
- This will help you have a clear understanding of your expenses and how much money is coming in to your business
- Where you spend money personally on behalf of the business, we suggest you use the LeeP Expense template to record all your business expenses and make a clear reimbursement to yourself each month (funds allowing)
2. Technology is your friend
We highly recommend that small business owners make use of the Quickbooks online subscription which LeeP include as a complimentary feature in our 3, 4 & 5-star packages or as a bolt on to our Essentials Package to make your life easier. Using this software you can:
- Create invoices and send them out in less than a minute
- Create estimates that you can convert into invoices
- Track and manage your expenses
- Easily see which invoices are past due
- Reconcile your bank statements in seconds
- See how your business is growing in real time
- Allow your accountant to review your financials and provide assistance where needed
3. Ask for help
So, you’re not the most detail-oriented person you know; or, you’re so busy running your business that the idea of spreadsheets and software makes you cringe at the end of the day. Don’t be afraid to ask for help. We won’t profess to know everything but we will know someone who does.
4. Track everything
Track anything and everything related to your business by saving receipts, using a dedicated business credit card and bank account. Not only will you need to track activity to see how much you’re profiting but also for tax purposes at the end of the year.
5. Keep receipts
Make it a personal habit to request and keep receipts for EVERYTHING. Then once a week/ month/ quarter review what’s business and record them onto a spreadsheet or your bookkeeping system. Your Accountant will love you for this.
6. Stay organized
Even if you do have a dedicated accountant, you should make organising a regular habit of your own. The only way to know where things really stand, to avoid mistakes or have things fall through the cracks, is to consistently check your books. Good habits that we recommend are:
- Reconcile your bank statements to what’s in your books at least once a month
- If you are paying for business expenses using your personal funds, use the LeeP Accountants Expenses template and “submit” and pay them to yourself once a month
- When your expenses have been input onto Quickbooks online (or other bookkeeping system), staple all your receipts together in date order and store safely for 6 years
- Another healthy record-keeping practice is to store your files electronically and make sure to back up any files you store locally once every month
Takeaway: Don’t let bookkeeping be last on your to-do list. Not only does it improve your understanding of how your own business is operating, but it will also build financial credibility, and speed up your growth when you’re ready for it. Remember: It will only get more complicated down the road!
For more guidance or advice on all aspects of Bookkeeping, Tax planning or Accountancy call 01733 699033 or use the Contact Us Form.