Want to do your own bookkeeping but don’t know where to start?

If you’re more comfortable doing your own bookkeeping than handing off to someone else, that’s fine, but it’s important to be aware of what is ahead of you. In this post we’ll discuss some bookkeeping basics to keep you on the right track, important items that you need to keep on top off, and a few points to be aware of to make sure you’re comfortable with your decision.

First up, you’ll need to be as organised as you can be to stay on top of your financial transactions. Let it slip for a week or two and you’ll have an uphill struggle to get back on track. It’s worth doing a little bit every day to make sure you’ve got it under control. Pay, or set invoices to pay when you get them. Keep expense receipts and record them in your accounting software as soon as you can.

Once you’re up to date with the finances then it’s time to extract important information from them. You’ll need a cash flow projection to show what money is going in and out of your business and when, so that you can prepare for any times where you might go into the red. You’ll need to know your profit or loss on a regular basis so that you can make any necessary changes to turn your finances around if needed. You’ll need this on a monthly, quarterly and yearly basis so that you can compare and make sure your finances are going in the right direction. You’ll also need an idea of your tax liabilities, whether that be VAT, corporation tax or income tax if you’re self-employed.

Regarding your tax liabilities, you’ll also need to submit a timely and accurate return and pay on time to avoid fines and penalties.

If you have staff you’ll need to handle their payroll and any national insurance or pension obligations you have as an employer.

This is just the main things you’ll need to think about. As you get into it, you’ll see there’s a lot more you’ll need to keep on top of, but keeping on top of the big things will give you a solid grounding.

We also want to repeat that keeping on top of your finances on a regular basis is vital.