Essential bookkeeping tips for small businesses

Cope & Co Accountants in Wirral provide bookkeeping services throughout Merseyside. Here are our top bookkeeping tips for small businesses.

Maintain detailed payment records
Accurate bookkeeping is essential for tracking every payment. Ensure that you record all transactions and clearly mark the dates they were made or received. This will make it easy to refer back to any payment details when needed.

Adhere to deadlines
Timely payments are crucial, especially to HMRC. Set clear payment deadlines for your clients, to facilitate effective follow-ups. Track late payers and consider avoiding future business with those who consistently miss payments, in order to maintain healthy cash flow.

Monitor expenses closely
You can claim tax deductions on many business expenses, helping to reduce your overhead costs. Keep all receipts organised by business category and store them safely to substantiate your claims with HMRC. Ensure you separate business expenses from personal ones for easier identification and tax deduction.

Based in Wirral, Cope & Co accountants are here to offer bookkeeping services to Merseyside businesses and individuals alike.

Organise bank statements and invoices
Keep all bank statements and invoices (both purchase and sales) in order and ensure they’re accurate. This prevents wasting your bookkeeper’s time and therefore your own money on sorting and chasing down documents. For purchase invoices, maintain separate files for paid and unpaid invoices, sorted alphabetically by supplier name.

Generate monthly reports
Producing monthly financial reports is crucial to stay on top of your business finances and avoid unexpected issues. At a minimum, your reports should include a balance sheet and an income statement, providing you with a continuous update on your business performance.

Know when to outsource bookkeeping
While handling bookkeeping yourself might make sense for a small business, it's important to track the time you spend on it each week as your business grows. Compare your hourly revenue to the cost of hiring a professional bookkeeper. A bookkeeper can often handle a month's accounts in just a few hours, making it a cost-effective solution as your business expands.

For personalised assistance with your bookkeeping needs, contact Cope & Co Accountants in Wirral, Merseyside. We're here to help your business thrive!

Call us on 0151 374 0875 or write to us at enquiries@copeco.uk. Alternatively, visit our contact page to book a free, no obligation call back.