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If you have a small business or plan on starting one here are a few tips to help you keep track of your finances. Planning is everything.

You need to know what is expected of you, what information you need to record. What tax do you need to pay, what’s your income and expenditure?

Don’t mix your private money with your business – Open a separate business account and keep your records separate

Keep a record of your spending and any money coming in. Keep your invoicing up to date and keep all your receipts, know what you are spending your money on. File all your invoices and receipts away as soon as you can. You will need them to see if you are operating at a profit or a loss and for tax season. You can also very easily do this electronically with cloud-based accounting packages like Xero;

Used cloud-based software like XERO. You can perform your bookkeeping tasks anywhere, anytime. XERO will also keep you up to date with their latest packages. Their Cashbook has great functionality for the small business.

Keep your bookkeeping current. Balance your books at least once a month, make sure your bank statement and your books balance.

Don’t let bad debt drown you. You need to be relentless in following up on payments. A client who doesn’t pay is no good for your business

Get a good accountant that will work with you to grow and scale your business

Stay hands-on, know where you are making money, and where you are spending it.

Be sure to back up all your data. You don’t want to lose valuable information

If 2020 has taught us anything, it’s that, anything can happen. Try and start an emergency fund. Then if you are unable to earn for a while you have a cushion.

At 118Accounting we will be delighted to help you with all of the above.