Spring cleaning your books
Spring is finally here and so are thoughts about spring cleaning. In terms of your small business, it’s also a good time to consider a spring clean for your financial records. For keeping your business efficient, tidying up your books is a smart move and you can do this with help from Bookkeepers Hereford.
Costs
Have a fresh look at how you are paying for your business costs. Payments from a business account, credit card or from your own money must be logged separately and correctly so you can keep track of how you pay for these costs. This is essential if you have used your own cash as you’ll want accurate records of how much the business owes you.
Check your categorisation
Are you being consistent with which category you are using to log business costs? Some costs could well fall into more than one category. Recurring costs should be categorised in the same place. This makes it easier for an accountant to identify and move costs if necessary for tax reporting. For help with Bookkeepers Hereford, contact Office Support.
Banking
Take a fresh look at your bank account. Are you subscribed to the right services for your business? How much are they charging? It might be a good time to compare other offers to get the best services at a reasonable price.
Cancelled invoices
Cancelled bills should be removed from your books. You can do this by creating credit notes to net the amounts off. This is vital as it will have a direct impact on the profit and loss figures for your business.