Some tips for doing business accounts
As a business owner, you might be in constant stress when it looks hard in managing all work at your firm. You will seem to keep toiling hard and even spend the whole of your day in your office to get the situation well but all goes in vain. If this is the case for you, you need to worry less as there are guidelines that will help you do all this. Doing business accounts will make your business flourish with properly managed and intact accounting data. Herein are tips for doing business accounts.
First, there is a need to open a separate bank account
Many people are ever tempted to use their personal accounts. It can be much easier if you have very few expenses and that you don’t employ staff. But there will reach a time you will require to prove all your business expenses and income. It will be easier for you in printing bank statements when you own a separate account. You will also have an opportunity of getting great deals from high street banks on business accounts.
Always keep everything
You need to keep everything even if you are using separate accounts. All expenditure and income records for at least two years or most preferably for up to five years needs to be kept updated. So you need to ensure you always print out bank statements each month and try your best keeping all your invoices and receipts. Always keep them clean, in well-arranged and orderly files.
Set Up a Spreadsheet
It is important that you set up a spreadsheet on excel in addition to keeping receipts and invoices. For those who will need help on this, they can receive help from templates online. Something you need to consider is having one sheet where you will be recording payments received and the other one for expenses. All your physical receipts should be numbered well and the number reflects on the spreadsheet. Always remember to include names, amounts and dates.
For business owners who don’t employ staff, they will always be figuring out when, how much and the criteria they will be using to pay themselves. For in case of staffing, you can consider hiring a freelancer to provide help with marketing and designs. As a business owner, you will need to keep track of when and what you will be paying them. In case you hire any person, just to the person need to be paid on a schedule and there is a need that you ensure you hold back any taxes that may arise.
The best way you will be sure that everything is done in the right way possible is to first gain an understanding of accounting and at the very beginning much more on tax. You need to do thorough research on this issue or even take a course. You can ask for help from friends who works in accounts in that they pass by to look through your spreadsheets and systems. You also need to make advance corrections to any information you will need for tax returns.