When you’re thinking about starting your own business, there is a lot to think about. From thinking about your business offering, figuring out the pricing, writing a business plan, sorting out the legal structure of the business and more. Another important part of running your own business is to keep good business records.
In this blog post we share some guidance to help you with creating your own system for keeping business records:
It’s important that you stay organised with your business records and accounts. This will help ensure that you meet your tax obligations at various points through the year.
If you don’t have a record keeping system in place within your business, you’ll find that you spend a lot of time sorting paperwork. This is especially the case as your Self-Assessment time comes round. You will find that you are having to use valuable business time, and a lot of it, to organise the paperwork, instead of focusing on what makes your business money.
Our first recommendation is that you keep your business and financial expenses separate. Allowances like tax-deductible expenses, as an example, or only for business purposes. By having a separate business bank account, it is very easy to see what money is coming in and out of the business. With a joint account for both personal and business, this is a lot harder to see.
A lot of the major banks in England will offer a business bank account. If you’re not sure of the best one for you, do your research. Take your time to shop around and find the best one for you. You may find that a purely online bank account is best for your business.
There is some really good software and apps available that will help make record keeping for your business much easier and quicker. Your software can do things like send invoices and chase up late payments automatically. It can also monitor your income and track your outgoings.
It’s important to remember that you are required to keep your business records for a number of years. If HMRC asks to see your business records you will find that well-organised business records that are accurate and in order will help speed up the tax investigation and keep you out of trouble.
Need help keeping your business records in order? Call our team and we can recommend the best business bank accounts and business record keeping systems for you.