5 Steps to Effective Bookkeeping for your Business

Running a Business and then looking after Finances is tough work!

From my Experience as Bookkeeper for many Companies and from experience doing my own each year for two separate Businesses, I have tailored my workload to 5 key things when doing my day to day Book keeping.

1.   To Do Lists!!

I love them! Reminding me to chase that supplier for a missing invoice or to reconcile the bank or any queries I may have. I review this every week and ensure that it is dealt with. It may seem like a small thing, but at the end of the year, you open that Folder and everything you need is there with no chasing and no rushing.

2.   Medical Expenses

Ensuring that there is an excel sheet of them and making a section in the file to put into as they come in! Remember you can claim 20% of the cost of these back either with a MED1 form or in Form 11 each year (Taken off your amount payable for Income Tax). Some Healthcare professionals have a policy that they do not give reprints of the medical bill. 

I suggest to my clients in January every year to ask the Pharmacy for a statement and the Doctor Surgery as this is a great all together record of the most regular Medical visits.

Also worth remembering that whatever your Year end – Medical expenses go from January to December of each year.

3.   Reviewing Expenses regularly

From monitoring costs to ensuring that expenses do not rise – By making the call to suppliers and searching for better deals on utilities. This stands to be a big saving each year for those that stay on top of it. I ring twice a year and ask is there any further discounts to be applied – You would be surprised at the result.

Lots of financial experts show stats that Businesses still dont change provider or shop around. A worthy exercise for sure.

4.   Reconciling the Bank and adding notes to transactions on accounting software

Regular reconciling of the bank allows me to identify invoices that I don’t have and to request them. By adding notes to invoices and expenses on accounting software, I can ensure that if I look at it a year from now, I know exactly what it was relating to.

5.   List of Creditors and Debtors

(Now called Receivables and Payables)- Doing a list of these the week after your year-end date allows you to be so accurate with what was owed to you and what you owed others at the end of the year. Important for Accounts.

I hope you found this article helpful. I really enjoy the Bookkeeping side of the Accounting Business as the satisfaction saving money and keeping complete records is worth it in the end.