Being self-employed comes with a lot of freedom, but there’s one part that often gets ignored. bookkeeping.
Keeping your finances in check might not be the most exciting part of being your own boss, but it makes life so much easier in the long run. If you’ve been winging it, here are five simple bookkeeping tips to help you stay organised.
Keep Your Business and Personal Finances Separate
This is huge. If you’re mixing personal and business expenses, sorting through transactions later will be a nightmare. So, open a dedicated business bank account – it makes tracking income, expenses, and tax deductions so much simpler. Plus, it looks more professional.
Track Everything
It’s easy to think, I’ll remember that expense later! Spoiler: you won’t. Whether it’s a coffee with a client or an online subscription, every business-related cost should be logged. Use an app, spreadsheet, or even old-school notebooks – whatever works.
Set Aside Money for Taxes
Nothing ruins your day like realising you don’t have enough set aside for tax. A good rule of thumb is to put 20-30% of your income into a separate savings account every time you get paid. That way, when tax season comes around, you’re prepared.
Stay on Top of Invoicing
Cash flow is king, and late payments can be a massive headache. Send invoices promptly, follow up when necessary and make payment terms crystal clear. Consider using accounting software to automate invoices – it’ll save you time and get you paid faster. Accountants Bath can also offer plenty of great advice.
Know When to Get Professional Help
You can handle bookkeeping on your own, but if it starts feeling overwhelming, hiring a professional is a smart move. Accountants in Bath can help with everything from tax returns to financial planning so you can focus on running your business without the number-crunching stress.
Final Thoughts
Bookkeeping doesn’t have to be scary! Stay organised, track your expenses, and don’t leave everything until the last minute. Your future business will work much better when you do.
