04 Jun Three things to remember when accounting for your small business
Completing your accounts can be one of the most intimidating things for any new company to do. As someone new to the world of accounting, you don’t want to risk getting anything wrong as that could land you in legal trouble. Let’s take a look at a few things small businesses need to be aware of when accounting.
Be as thorough as you can
Making sure that you have every single bit of information on your financial records is key. If you get audited and a single penny is out of place, you could find yourself with questions that are hard to answer without the right paperwork. By noting down every single expense and piece of income, you can accurately keep track of where every penny and pound has come from and answer thorough questioning if your accounts are thrown into doubt.
Categorising everything isn’t just ideal for keeping your accounts in order, but can be great when it comes to business tracking. By making sure that every income and expense is tagged, you can keep much better track of what parts of your business are most effective at generating revenue, what is costing you much more than you were hoping for, and where you can become much more efficient. Your accounts don’t have to just be a record of what has already happened, but can also be a forecasting tool that you can use to guide future business decisions for years to come.
Keep up with legal changes
The law surrounding taxation and business benefits are constantly changing. Tracking all of these changes is vital to all of your accounting, as not being in line with any of this legislation can lead to significant fines in the long term. For the long term financial stability of your company, it’s important to keep tabs on any legal changes.
If you’re looking for small business accounting services, from sole trader accounting to making sure your payroll is right, get in touch with the SQK Accountancy team today in Manchester to find out more.