When you are self-employed, maintaining your own financial records can be a daunting prospect to some. Whether you are unsure about how to record or simply don’t have the time, this is something for you. Read on for some top tips on bookkeeping for the self-employed!
Keep Books And Records
When you start your business, start keeping accurate receipts and invoices of costs and any sales you make. Many people incur costs even before they have set up their business fully. These can be deducted from profits and will reduce your tax bill so take note to keep records of everything before you even set up.
Get Online Accounting Software
Start with a manual bookkeeping system with written and hardcopy records. Or you can just use a spreadsheet. This can become an inefficient way of maintaining your bookkeeping records though. Using online bookkeeping and accounting software will help you to easily keep up to date. It also comes with useful tools and features that can help with your business such as convenient payment, invoice reminders, and accurate reporting. Get an online software early to keep you up to date and fully compliant with the regulations. Start recording everything from the start to make sure you know when your payments are due.
Get An Accountant Early
The cost of hiring an accountant can often prevent people from getting one early on during self-employment. However, accountants can provide you with plenty of advice when you are thinking of setting up a business on your own. They can advise on bookkeeping, keeping records, taxes, company formation, and structure.
Keep Track Of Business Expenses
You are generally allowed to claim business expenses that are incurred for business. Keep any of such receipts for all expenses related to the business whether it is postage, stationery, or travel costs. These can reduce your tax bill. Talk to your accountant about the expenses and other costs that can be claimed as well. If you start a business from home, you can claim a proportion of your bills for business costs. Your accountant can advise on what is and what isn’t allowed.
Have A Separate Bank Account
To keep track of your finances, you need to have a separate bank account. If you are not running a limited company, you can use another personal current account. However, if you operate as a limited company then you will need a separate business bank account. This avoids you getting your finances mixed with the business finances. It will make it easier for you and your accountant to keep track of the finances.
Experience Shogo’s Services Today
Shogo is an established automation business service that allows you to send sales data straight to your accounting system. You don’t need to spend time manually entering, re-checking, and reconciling your sales information. We help to manage your daily sales accounting to make the process smoother. We also help you to save both time and money. Feel free to contact us to find out more.