Are you a new business and you are thinking about doing your own books? This is something that a lot of small business owners attempt at first. While it can be done, you do have to have some knowledge of how it all works, as well as the time to do it. But, if you do decide to go ahead with your own bookkeeping, we have some tips for you that are going to help protect your business. Let’s dive in and take a look at them.
Keep Records from the Start
If you are a new business owner, the most important tip we can give you is to keep records from the very beginning. A lot of people make the mistake of not keeping receipts and records of expenses when they first start out. They think that they will remember or that it is not that important until you have a lot of business coming in. But, you really want to keep your own books from the start. It is good practice and it is going to get you into the swing of things from an early stage. What’s more, you are going to need these figures when you progress through the tax year. After all, you do not want to pay heavy fines for making mistakes or have penalties to pay for late payments.
Thus, grab yourself a notebook or start a bookkeeping file on your computer. Keep any receipts you have for stock you have purchased or supplies you have needed. Keep a note of everything and it is going to make your life a lot easier.
Know When You Are Out of Your Depth
Sometimes, you need to know when to bring in the professional. Doing your own books can be a difficult task and it can also be very time-consuming. All of your records must be kept up-to-date and no mistakes can be made. Otherwise, your business can get into a lot of trouble and you will have financial penalties to pay. Therefore, if you are worried and feeling out of your depth, know that you can use professional bookkeeping services in Pinner. This is going to allow an expert to take over the reins and give you peace of mind. You can avoid financial penalties and know that your business is protected.
Understand the Rules and Regulations
A common mistake that new business owners make is that they are eager to get going. While this can be a good thing when it comes to business, it is not ideal if you are trying to do your own bookkeeping. In other words, this is not something that you can just learn as you go along. In fact, there are a lot of rules and regulations in this area that you have to be aware of. Otherwise you could get your business into a lot of trouble.
Thus, if you are going to do your own bookkeeping, you are going to have to educate yourself on it first. This is a lot more work than you think and not something you can learn about as you go. Indeed, this is a job for most people so this gives you an indication of how much work is involved.
Dedicate Your Time to the Process
One thing that everyone that does their own books is going to tell you is that it takes up a lot of time. You need to dedicate hours of your week to this process so that you can ensure you are doing it right. Again, mistakes are going to jeopardise the integrity and financial stability of your business. So, you have to ensure that you put time aside in the evenings or at the weekends to get things done. You really have to be committed. If you do not have this kind of time in your week, it might be time to consider outsourcing the process to a professional that does have that time.
It is possible to do your own bookkeeping for your business. But, you need to be aware that this is going to be a lot of work. Namely, you are going to have to keep good records from the start and understand all of the rules and regulations. It is time-consuming to do your own books, as well as being complicated. The most important thing is to know when to consult a professional for help and assistance on the topic.