Bookkeeping
Basic bookkeeping involves recording financial transactions accurately and organizing them in a systematic way. Here are some steps to follow:
Open a business bank account: It’s important to keep your personal finances separate from your business finances. Opening a business bank account will help you keep track of your business transactions and make it easier to reconcile your accounts.
Keep receipts and invoices: Keep all receipts and invoices for purchases, sales, and expenses. This will help you track your expenses, prepare your tax returns, and manage your cash flow.
Record transactions: Record all transactions, including purchases, sales, and expenses. This can be done manually using a ledger or spreadsheet, or you can use accounting software to automate the process.
Categorize transactions: Categorize transactions by type, such as office supplies, rent, utilities, or revenue. This will help you identify areas where you are spending too much money and areas where you could potentially save.
Reconcile accounts: Reconcile your accounts regularly to ensure that your records match your bank statements. This will help you identify any errors or discrepancies and correct them before they become a problem.
Generate financial reports: Use your records to generate financial reports, such as income statements, balance sheets, and cash flow statements. These reports will help you understand the financial health of your business and make informed decisions about future investments.
By following these steps, you can establish a basic bookkeeping system that will help you keep track of your business finances and make informed decisions.
Alternatively you can outsource your bookkeeping to your accountant or a bookkeeper. My firm www.cobalts.co.uk are specialists at outsourced bookkeeping.