After one of the most challenging years for many of us, 2022 brings the chance for new goals and resolutions. Maybe you want to travel more, learn a new skill, actually use the gym membership you signed up for but what about your business resolutions?
Here are our top bookkeeping tips to start your financial new year in the best shape.
1. Keep business and personal banking separate.
Not having separate bank accounts for business and personal, or using the wrong account to pay for things, can mean your finances can get a bit messy. Keeping them separate lets you know exactly where your business is at financially and saves you having to sift through
hundreds of receipts and separating them into personal and business transactions.
2. Use cloud accounting software.
If you’re a small business owner and not already on a cloud accounting system such as Xero then we strongly suggest you should be.
Whether you’re at the office, home or even on the road, your financial records are accessible when you need them most with cloud accounting. This means doing your bookkeeping is quicker and easier saving you time.
3. Do it regularly
You don’t want your bookkeeping to become a burden and cause you sleepless nights.
Decide whether daily, weekly or monthly bookkeeping will work best for you and then set aside the time to do it. If you don’t understand where you are today, you can’t move forward tomorrow. Get into the habit of reviewing regularly to give you strong foundations.
4. Keep track of what you have bought
It’s easy to forget what you’ve bought in the run up to Christmas and New Year, so it can be a struggle to reconcile the transactions. Clearing the backlog can be painful but fixing the issue going forward is the key. The Xero add-on Hubdoc will allow you to store images for each transaction. This can be done instantly via the app so you can quickly and easily take a photo and file the receipt in the bin! No more scrabbling around for documents or wondering what that Amazon purchase could possibly be.
Take a look at the manual tasks that eat up hours of staff time every month and identify those that can be automated. Using an add-on like Hubdoc automatically processes, categorises and sends your purchase receipts into Xero without you having to do a thing and are all sat there for easy reconciliation.
With its fetch functionality it can even automatically source financial documents from hundreds of banks, utilities, telecom providers, and online vendors.
Of course, the best way to start off the New Year and make sure your finances are fighting fit, is to hire an expert that you trust who can give you the information at any time.
We pride ourselves in providing an excellent service to our clients, tailored to their exact bookkeeping needs and taking that stress away. If you think we could help, then why not get in touch!