It is essential that you keep accurate accounting records for two main reasons, firstly so that you are able to assess how well the business is doing. Secondly, so that you can prepare accurate accounts and tax returns.
In terms of what is the best method used to keep your records then this quite often comes down to the individual concerned and the type/size of the business.
For a small businesses with a small number of transactions, a simple cashbook is usually sufficient which can be purchased from most stationery shops. If you are happy with your IT skills then a fairly straight forward excel spreadsheet would achieve the same results with the added benefit of automatic calculations.
If you use a computer regularly, have a fairly high number of transactions and would like systems in place to show who owes money to you and who you owe money then a cloud based system may be more suitable than the above option. There are a number of providers who offer cloud based solutions that automate a large amount of the work with the added benefits of giving detailed reports, raising and issuing invoices, is accessible anywhere and in some cases can also be used as a filing system.
Moving on to the larger businesses where a vast number of transactions need processing then desktop software may be the most suitable. This software will cover all the reports that you need and can also be adapted to your business, for example it could be linked with your EPOS system.
Prices will vary, with the simple cashbook being the cheapest moving through to the desktop software being the most expensive but when looking at the price try to bear in mind the possible savings from having a suitable system. Paying £120 a year could actually be good value for money if it saves you a few hours per week.
If you feel that doing the bookkeeping really just isn’t your thing and you would rather concentrate on the core activities of the business, which can quite often be a good move then you could consider outsourcing your whole bookkeeping function to an accountant or bookkeeper.
Making sure you have the right systems in place is something we are always happy to go through with you.
For further advice on this subject and any other area of accountancy or taxation, please contact Sam Carter from our Hastings office on 01424 720222 or email firstname.lastname@example.org or Louise Franklin from our Bexhill office on 01424 730300 or email email@example.com
Member since: 25th November 2014
I work for Ashdown Hurrey, where I qualified as a chartered certified accountant in February 2014.
I joined the practice after completing my degree in accounting and finance at Manchester Metropolitan...