Get your Bolton business off to a strong start with our tips for new businesses.
When you start a new business your focus will no doubt be on the day to day operations of your business along with big picture planning. That being said, your accounts shouldn’t be an afterthought.
So, you’ve just set up your new business venture, whether a local cafe in the centre of town, an e-commerce site selling computer parts or a groundwork and maintenance business. As a new business owner, there are many things you need to wrap your head around, one of which is accountancy. For many business owners, especially first-timers, managing your books can be difficult, time-consuming, and, quite frankly, a headache. Therefore, to help you conquer your first year of trading, we’ve put together several accountancy tips for your new business. And if all else fails, you can always work with the team at Daniel Sam, Accountants in the Bolton area.
Seperate Your Personal From Your Business
To begin with, you should separate your personal bank account from your business one. This eliminates confusion, saves time picking through transactions, and makes your life a whole lot easier. You can do this by opening a basic business bank account, available at the majority of banks, including Natwest, Barclays, and Starling. Not only will this simplify things, but it’s also much more professional, too.
Always Keep Your Receipts
Second, on the list, you should always keep your receipts. Whether these are digital or physical, stash them away, preferably in a folder for safekeeping. You may need to provide proof of expenses, so have these on hand, just in case. Also, if, like most, you leave your books to the very last minute, these receipts ensure you don’t miss off any expenses, making sure you pay the correct amount of tax.
Don’t Leave Your Books Until The Last Minute
While it’s not always possible, we recommend not leaving your books until the very last minute. This creates unnecessary stress, perhaps resulting in a less accurate input into your chosen accountancy software. At the very least, you should manage your books once a week or once every other week, logging transactions, submitting expenses, and generally, keeping up to date to save time later. This is also much more accurate, preventing that last-minute rush far too many businesses end up involved in.
Set Aside Money For Tax
Unlike regular employment where you don’t need to worry about tax, as a business owner, you will need to submit your tax returns and pay tax yourself. However, this is paid the following year, so you need to set aside money for this. As a general rule of thumb: you should set aside between ten and fifteen per cent of your earnings, leaving this in a separate account (such as a savings account) until required.
If In Doubt, Work With An Accountant
Finally, if in doubt, you should work with Accountants Bolton or wherever your business is situated. The team at Daniel Sam are a great place to start, a family firm based in Bolton with your best business interests at heart. To find out more information, get in touch with your local accountants in Bolton – Daniel Sam.