When there are so many other things to do in your business, bookkeeping can be one of the most neglected areas, it can be the last thing a business owner can feel like doing after a long day, but it is actually an incredibly important part of your business.
So why bother
Keep on top of VAT
By keeping your books up to date, you can know how much VAT to put away each week or month. This can stop a nasty surprise when the VAT is submitted.
Know when you are approaching the threshold
If you are a relatively new business with a high turnover, the VAT threshold can suddenly creep up on you, miss reporting that you need to be VAT registered and you risk fines from HMRC. By knowing what your sales are over the last 12 months, you can be more in control and it will enable you to register at the right time. Remember VAT needs to be looked at on a rolling 12 month basis.
Stop the panic
The paperwork is piling up in the corner and it's job that you know needs doing, but there's no time. Doing a little each day or week can really stop it being stressful. Lots of our clients come to us with a big backlog of work and they feel very relieved when it is up to date.
Spread the cost
Instead of leaving your books to tax return season, why not do them monthly or outsource to someone to do them monthly, instead of a big bill at self assessment time, you would have paid for most of the work to be done already.
You're not sure if you can afford a new piece of equipment
By looking at your in-comings and outgoings you can get a much better picture of how your business is doing and if you can afford that new PC you've had your eye on.
You always chase your clients weeks after they have had the goods or service
Regular bookkeeping tracks who owes you and how late it is, an aged debtors report can show you who owes you what and instead of waiting until the end of the month, you can chase a lot earlier and get the money in, that is needed to run your business.
If you don't have time to look after your own books and the thought of doing it is causing stress and worry, why not get in touch and see how Tidal Bookkeeping Cornwall can help. We offer reliable, accurate and affordable bookkeeping within the Cornwall area.
The information featured in this article is for guidance only, no liability is accepted for the opinions it contains.