Good bookkeeping is the backbone of every successful business – but you don’t need to be an accountant to get it right. Whether you’re just starting out or want to tidy up your records, these simple tips will save you time, money and stress when tax season comes around.
1. Keep Business and Personal Finances Separate
✅ Open a dedicated business bank account (even as a sole trader)
✅ Get a business credit card for work expenses
✅ Transfer a regular “wage” to your personal account
Why? Mixing finances makes tracking expenses a nightmare and could cause problems with HMRC.
2. Choose the Right Recording Method
You’ve got two main options:
a) Spreadsheets (Free & simple)
- Good for businesses with under 50 transactions/month
- Download HMRC’s free templates
b) Accounting Software (Saves time)
- QuickBooks, Xero or FreeAgent automate much of the work
- Links directly to your bank account
- Starts from £10/month
3. Know What Receipts to Keep
🗂 You must keep records for 6 years – store these digitally or physically:
- Sales invoices
- Purchase receipts
- Bank statements
- Mileage logs
- Proof of home office costs
📱 Smart Tip: Use apps like Receipt Bank to scan and store receipts on your phone.
4. Schedule Regular Bookkeeping Time
⏰ Set aside 30 minutes each week to:
✔ Update your records
✔ Chase unpaid invoices
✔ Review cash flow
Consistency is key – it’s much easier than a last-minute scramble!
5. Understand Your Key Reports
These three reports tell you how healthy your business is:
a) Profit & Loss Statement – Are you making money?
b) Balance Sheet – What’s your business worth?
c) Cash Flow Forecast – Can you pay bills next month?
Final Tip: Consider getting professional help if:
• You’re spending more than 2 hours/week on bookkeeping
• You’re not confident about what to record
• Your business is growing
We offer fixed-price bookkeeping packages to take the stress off your shoulders. 📞 Get in touch for a no-obligation chat! – 0161 989 9560
