12 Jul How bookkeeping can make – or break – a start-up business
You’re starting your own business – what an exciting time! Your head is full of strategy, marketing, and products, so there’s not much space left for bookkeeping.
If you don’t think about it now, though, it could lead to major problems in the near future.
You need to create a strong foundation for your new business, so you need to think about your bookkeeping and how you will keep a close eye on your financials.
Having a qualified, outsourced bookkeeper on your team is one of the key ways you can ensure your business is a success.
Their experience will allow you to concentrate on building your business and dealing with your clients.
What are the biggest bookkeeping mistakes a start-up can make?
Not being organised – if you don’t do your books, you’re not in control of your business. You won’t know when invoices aren’t being paid, when costs are spiraling, or sales are falling, You also will not know which products or services are selling the best or the most profitable. How can you plan for taxes or identify and deal with cashflow problems?
Not having a separate bank account for your business – It’s so easy to get your money muddled when you’re putting things through your personal account. It will take hours to separate things out when it comes to doing your taxes and management accounts.
Not using bookkeeping software – Products such as Xero make your life so much easier. They allow you to see your financials in a dashboard, keep a close eye on paid and unpaid invoices, see how many sales you’ve made, get your bills paid, and issue invoices. Doing all this without the software takes so much longer. HMRC is also moving towards digital submissions with Making Tax Digital, so getting software right from the start of your business makes so much sense.
Not keeping your bank statements in order – What a pain this is when you come to your end-of-year accounts! It’s such a small, simple thing but not doing it can cause you hours of rifling around for missing statements.
Not having a system for paying your bills – Keeping records of which bills are paid and which are outstanding, and when you pay, is so useful if any discrepancies or misunderstandings arise.
Why choose Balanced Up Bookkeeping to do your books?
- We help you manage your cashflow and keep on top of your numbers.
- We’ll organise the petty cash, profit and loss account, bank reconciliation, and issue your invoices.
- We also offer help with credit control and debt recovery to ensure your business is as healthy as possible.
- We keep you in the loop at every stage, ensuring excellent communication, and give you monthly bookkeeping.
- We use Making Tax Digital compatible and HMRC-approved accounting software.
- We are experienced at using online systems and have a client base of more 250 happy customers.