Accounting tips for self-employed

If you are self-employed, or are planning to become self-employed in the near future, one inevitable thing you have to deal with is accounts. This means managing money, keeping records, submitting tax returns, and more.

 

Your accountant will help with a lot of this, but there are things you should be aware of. Here are some tips to get you off to a good start.

Book keeping – put a proper book keeping system in place to ensure you are organised and keeping accurate records.

Separate your finances – make sure you separate your business finances from your personal finances. This usually means having separate bank accounts and credit cards. It makes things easier to manage plus it is easier to show the true position of your business if the revenue ever asks.

Pay by card – pay as much by card or directly through your bank as possible as your bank and credit card statements can then act as a record of your purchases. The same applies to payments. If your business permits it, avoid dealing in cash as much as possible.

Keep good records – following on from the last point, make sure you keep receipts for any purchases or business expenses. Also keep other important paperwork like bank and credit card statements.

Record your income and expenses with care – not only will this make it easy to complete tax returns, it also means you have a better overview of the position of your business.

Put in place payment policies that assist your cash flow – this could mean payment upfront or on delivery. If you do give credit, make the time period as short as possible. Also, follow up promptly when invoices are not paid on time.

Get accounting software – at the very least, you should use a spreadsheet. The ideal situation, however, is to use accounting software – it will save you time and money in the long-run.

Get an accountant ! – an accountant will keep you right with the tax authorities and will ensure you meet your tax obligations. A good accountant will also help you identify issues and take decisions to improve your business.

Whether you are thinking about starting-up a new business, are recently self-employed or have been working for yourself for years we can help you to run your business more efficiently and help to minimise your tax bills.

Get in touch to see how we can help – the first meeting is always free.

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