How You Can Properly Deal with Accounting and Bookkeeping for Your Enterprise
by Mashum Mollah Finance 03 November 2019
Handling your own business enterprise comes with its own set of challenges, as you very well know, but if you have to handle accounting and bookkeeping on top of all your other tasks and responsibilities, the difficulties can increase exponentially indeed. Accounting and bookkeeping are necessary, of course, but if you aren’t quite sure about how to deal with it in the proper way, you could be doing your business harm. When you know how to handle accounting and bookkeeping, on the other hand, you will have a better idea of where your business is going, and you can make sound financial and investment decisions.
In this resource article, we speak to some leading experts from the world of accountancy and finance. Most of them point out that in the last few years, accounting and bookkeeping have become relatively easy thanks to the advent of software. There are so many credible names in the industry right now that can help small businesses to maintain their accounts and balance sheets. For example, one of the most popular accounting software options available right now is EZLease. It is simple to use, has a clean interface, and can be integrated into different software for better efficiency.
Here’s your guide, then, on how you can properly deal with accounting and bookkeeping for your enterprise.
How You Can Properly Deal with Accounting and Bookkeeping for Your Enterprise:
1. Know the basics:
One unfortunate fact is this: a lot of businesses can fail simply because they don’t have enough insight – and control – over the financial aspects of their business. So even if you don’t have a strong financial grasp or background, make it a point to learn the basics, at the very least. If you know the basics of accounting and bookkeeping, you can at least keep better track of your spending and your income and know that keeping your records as organized as possible is key as well. Make sure to register your business enterprise with HMRC, or, if you have a company, register it with Companies House. Another step you should take is to set up a bank account solely for your business, as opposed to a combination personal and business account (any accountant will tell you not to mix the two), and set up a strong and robust system of record-keeping for your financial transactions. This is, after all, a necessity under law.
2. Know your cash flow:
Everyone knows that money makes the world go round and the same is true for your business as well. You need cash for your business to pay for your bills and other expenditure, it’s as simple as that. If you don’t pay your bills as a business, you can easily end up not having a business at all. You can eliminate this risk if you can make sure to understand your cash flow and you are in full control of all your expenses and costs. The key here is to closely manage the flow of cash in your business and keep careful track of people you owe money to – and who owes you. Make sure as well to prepare properly for whatever money comes in, and whatever money goes out – and this includes not just the financial aspects, but also the non-financial aspects such as usage of stock and assets. If you need credit, take it as necessary, but make sure you can pay it when the time comes. Lastly, no matter what happens or how hard up you get, never, ever spend the money allotted for VAT.
3. Be compliant:
Being compliant with legislation isn’t an easy feat, and it will take you some time to fully understand your responsibilities when it comes to compliance. Compliance includes compliance with payroll, with VAT, with taxes, and with various changes in regard to legislation for businesses, like RTI. It can be a definite challenge to remember all the changes in the legislature that can happen in a mere 12 months, so it may be worth spending on accounting software that can automatically update your records and keep track of changing legislation; on the other hand, you can also make the job easier on yourself by relying on an accountant or bookkeeper, such as those from gsmaccountants.co.uk
The good news is, with a bit of financial knowledge, you can ensure your business’s longevity and growth. Take all these factors into consideration, and you can be confident that you are doing everything right – finance-wise.