While it is refreshing to see that the number of small businesses in the UK is slowly rising, the unfortunate fact is that the number of failing businesses is also on the rise. Of course, this could be due to many factors, but one of the biggest reasons is that some of these small businesses do not know how to manage their accounts!
So, if you’re one of these small businesses looking to succeed in today’s markets, you’ll need to know how to stay on top of your accounts. Now, if you need help with that, here are some tips about what you can do to meet all your accounting and bookkeeping needs:
1. Use a Cloud Accounting Software
This is perhaps the most convenient way for any small business to manage their accounts, as it will take all of the stress off your shoulders and give you the time you need to focus on your business. Not only is it convenient, but it’s also going to help you save time and money since cloud accounting software is more affordable than traditional accounting software.
You’ll also have a very flexible system that comes with added benefits such as real-time updates, which will mean better and faster data access, as well as a backup in the cloud, which means that your data will never be lost if something happens to your PC.
2. Have an App for Managing Expenses
If you want to stay on top of your expenses, you’ll need a convenient app for managing your business expenses. Fortunately, there are many apps available for this purpose, for example, Expensify or Expenses.
These apps can track your business expenses and then sort them by the different categories you specify. It will also give you real-time reports of your spending so that you can better control your finances.
3. Review Your Accounts at the End of Every Month
While your cloud accounting software will automatically sort through your data and give you a detailed report, it’s always best to review it on your own, too. Reviewing your accounts on a monthly basis can help you see exactly where you cost money and how you can curb extraneous spending.
It will also give you a clearer picture of your overall picture so that you can better manage your finances.
4. Check Your Sales Tax Liability
Another mistake that many small businesses make is failing to take care of their sales tax. Sales tax can be a big burden if you’re not careful, which is why you’ll need to check your sales tax liability regularly to make sure that you know how much you need to pay.
Also, you’ll want to make sure that you’re familiar with the different types of sales tax so that you know which one applies to your business. You don’t want to do anything that will land you in trouble, after all.
5. Know Which Expenses Are Deductible
In order to really manage your finances, you’ll want to know which expenses are deductible. You can often deduct different business expenses from your tax returns, which will help you save more money and lessen the amount of taxes you need to pay.
It’s important that you look over your tax return every year to see if there are any expenses that you have overlooked. You’ll also want to make sure that your expenses are being reported properly, so you can claim a deduction for them.
Conclusion
Running a small business can be extremely challenging, and it can be easy to get turned around, especially if you’re not managing your finances properly. Fortunately, there are many ways that you can manage your finances, such as using cloud accounting software, using an app for managing your expenses, reviewing your accounts at the end of every month, checking your sales tax liability, and knowing which expenses are deductible.
Either way, if you’re still having trouble with your accounts, then feel free to reach out to professional accountants! Hiring such a talent can ensure you’re on the right financial track, keeping your business afloat.
Accountants247 Urmston offers accounting services made easy through single monthly payments. Reach out to us today and stay on top of your accounts!
