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A Mini Guide to Accounting: Small Business Edition

Running a small business is an emotional roller coaster. The highs you feel when your awesome ideas actually begin raking in the cash are like flying...but on the flip-side the unexpected added responsibilities that you didn’t sign up for can feel more like hurtling towards the floor at rocket speed. We don’t want accounting to cause that gut-wrenching feeling for anybody, so here are our top tips for breezy accounting.
Open a business account

First things first...you’ve got an awesome business, get an account to match. The key to smooth sailing accounting is organisation, and that can’t happen without the fundamentals. If you’re muddling through using your personal account, things will get confusing. Mistakes will be made, transactions will get confused and basically….it’ll be a hot mess.

Choose an account that works for your business. Shop around, have a browse, chat to those irritating but (we suppose) helpful automated bank calls, and select the one which fits your business. There are certain features that you should definitely look for in a business account. Here are some of our personal favourites:

  • A personal advisor - there’s nothing worse than arguing with a robot when you need personalised support
  • Low charges - most business bank accounts come with a monthly fee. We recommend opting for one at around £5 per month, be sure to shop around so you don’t miss the best deals
  • An app - this is an important one. Being able to quickly glance at your finances on the go is a big bonus when running a business. Plus, it’s especially good if you can get one which can sync to an online accounting software (ahem, like ours!)
  • Foreign transactions - if your business extends overseas, you need a bank that’ll process foreign currency transactions with little fuss. If you need this, make sure to check before you buy!
Record, record, record

We don’t want to sound like a stuffed record, but you really do need to have a firm handle of your business expenses to keep your accounting happy. Familiarise yourself with the ins and outs of business expenses, and keep on top of it. Whichever way you choose to do this, you need to make sure you keep your records secure and backed up to avoid any issues with HMRC.

A solid bookkeeping plan

Now with bookkeeping, consistency is key. You need a plan and routine you can stick to...or a system that’ll streamline the process for you! Poor bookkeeping has resulted in the demise of too many businesses, we really don’t want yours to be one of them.

Get to grips with taxes

Ah yes, everyone's favourite! Seriously though, we know taxes can feel like an absolute nightmare, and understanding the various obligations that come with running your business are enough to bring on a serious headache. You’ll need to file a self-assessment with HMRC every year (by the 31st January). You may have more tax obligations to consider. Sounding like too much? We can take over to ensure your taxes are done right...and you’ll have no nasty surprises.

Get in touch

Wouldn’t you love to stick to the stuff you love, and leave the accounting to people who actually enjoy it? That’s where we come in! At Accountancy Cloud, we love turning accounting chaos into clarity and providing people with the freedom to focus on what they love. Get in touch today, and let’s get started.