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Bookkeeping made easy.



 

It's the start of a new month, and I am going to be totally honest, how is it May already! 2021 is definitely going a bit too fast. But the other side is, business are starting to open back up after being closed for the last 4 months which is just fantastic. It has been a really tough year for business but seeing how some businesses have adapted and evolved in the pandemic has been so inspiring.


In this months post I am going through some tips on how to manage and keep up to date with your bookkeeping. And if your struggling with keeping all the plates spinning and bookkeeping is not your forte, don't hesitate to get In Touch.


When should you be sitting down to review your books, is a question I get asked a lot. It depends on the size of your business. If your business has a large amount of sales or invoices within the month , best practice would be to take 3- 4 hours per week to sit down and review. If your business as a small amount, then every 2 weeks or once a month is enough to sit down.


I personally feel that you need to keep on top of your bookkeeping every week , because events happen in the week and trying to remember certain things that are relevant to keeping on track with your cash flow can be misplaced and forgotten throughout a month, that is why a few hours each week , will help you be more aware and mindful of your money.







The first thing I do is to gather all my information.

  1. Sales - Copy of invoices or sales receipts

  2. Purchases - Stock / Products

  3. Expenses - In my last post I wrote about understanding your expense and determine what category they fall under.

  4. Bank statement.

Once I have all my information ( and a cup of coffee!) I go through all my transaction to make sure there where no credit notes missed and refunds have been accounted for.


Purchases is key, because you need to make sure you are checking every item you receive, at the end of the day its your money so if there is an error it is so important to make sure you query the issue with your supplier. Once you have checked your Purchases and have the value you owe your creditors. Then my tip would be to set a day every month to arrange payment for any creditors. If you have a set day to make payments to your creditors it makes it easier to keep a track of your money.


Expenses are your running cost of your business, check out my blog post on this here . This way you can categorise your expenses from Administrative Expenses , Selling and Distribution Expenses and Financial Expenses. When your going through your expenses don't forget to check them against your bank statement as some Direct Debts don't automatically send invoices, eg: Greenstar you need to log in to get your invoice. These are cost that can be easily missed.


Bank Statement is to cross reference your incoming and outgoings and makes sure you don't miss anything. The main outgoings missed is bank fees and direct debits. Don't forget hidden fee's if you sell online Paypal , Stripe all have fees for the transaction. You need to account for the fee's and you can do this when you cross reference them against your sales.


Once you have everything checked, the next thing is to file away. Filing all your Expenses and Purchases monthly. Have a folder for Expenses, put all your receipts in date order and all purchases by supplier and date order.


If you have any questions , don't hesitate to get in Contact



Have a great day.


Nicola The Petite Bookkeeper.




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