small business accounting

Basic Bookkeeping for Your Small Business

Basic Bookkeeping for Your Small Business

As a small business owner, it can be tempting to dispense with time-consuming bookkeeping, and work on an ad-hoc basis to save time. However, this will almost inevitably turn into a complicated, confusing nightmare in the future as receipts are lost, invoices go unpaid, and the taxman wonders where all the money went. This article breaks down the basics of a good bookkeeping system, and should be a useful starting point for business owners looking to get their accounts in order. What do I need for a simple bookkeeping system? Essentially, a good bookkeeping system will record all the money coming into and out of your business. This is useful for a business owner as they have to keep on top of costs and provide the HMRC with proper records. In particular, a good bookkeeping system will incl... »

Small Business Accounting – Get Your Cash in on Time

On time – to keep the cash flowing through the business We all know that cash is the lifeblood of the business. A reservoir of cash is made up of positive bank account balances, physical cash plus any short-term top-up facilities such as agreed overdraft facilities. It is vital that the reservoir does not run dry. The main cash flow into the reservoir comes from amounts received from customers. Outflows are mainly as payments to suppliers and employees and business operating expenses. These outflows feed into products or services that are eventually sold to customers and the cycle starts again. So on time receipt from customers keeps the reservoir topped up. On time – to keep the customer financial relationship clean and transparent Credit management is just easier when then th... »