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February 15, 2025
Business

Top Tips to Help Your Small Business Manage Bookkeeping & Taxes

When a company is in its infancy, it isn’t always bookkeeping that dominates the list of priorities for business owners, particularly when compared to such things as brainstorming ideas, assisting customers, and launching innovative campaigns to market the brand. But the importance of bookkeeping should never be underestimated, and as routine, time consuming and unexciting as it may be, it should always form an essential part of any successful business management strategy.

Hiring bookkeeping services in Surrey can help small businesses manage their bookkeeping and tax obligations, along with the following top tips:

1. Keep your personal and business finances separate

If you don’t keep your business expenses in a separate bank account from your personal finances, when it comes to calculating your taxable income, you may not end up with accurate results. Doing so also gives your personal assets an extra protective layer.

2, Use automation where possible

Organizing business finances is made so much easier with automation, as not only does it reduce the amount of time and effort business owners must spend on it, but it also reduces the risk of human errors and keeps your records accurate and updated.

You can use accounting software that features automation or hire a bookkeeper who uses such technologies on their client’s behalf’s.

3. Maintain meticulous records

Getting a proper understanding of the financial position of your business, and always being tax compliant, is only possible with the help of meticulously kept records. It’s essential to keep a consistently clear and up-to-date record of every sales transaction, along with anything related to payroll and expenses, and with the help of accounting software or an experienced local bookkeeper, you can track and categorize every transaction.

4. Remember deadlines by setting reminders

Every time you miss a tax filing, bill payment or payroll processing deadline, you run the risk of incurring hefty penalties. Fail to meet all your business’s financial deadlines, and you also risk ruining your businesses reputation.

To never miss another deadline, hire a bookkeeper, or use calendars, tools for managing tasks, or financial software.

5. Always leave an audit trail

To ensure that your businesses financial transactions are transparent, and that any discrepancies can be easily identified, you must endeavour to maintain an audit trail. Additionally, audit trails are also important in terms of the reduction of potentially fraudulent activities, helping to hold everyone involved in financial transactions, wholly accountable.

By being diligent with the recording of all business transactions, using sequential invoice numbers, and keeping all invoice copies, you can set up and maintain a sound audit trail.

6. Track all business expenses

Budgeting effectively, making the most of tax deductions, and getting to grips with the profitability of your business, is only possible when all business expenses are accurately tracked.

This can be achieved with the creation of a logical expenses-tracking system, in which they can be easily tracked when appropriately categorized, and reviewed as regularly as may be needed.

7. Make your books your priority

If you can’t prioritise your businesses books yourself, you should seriously consider hiring a bookkeeper, who can keep them up-to-date, and maintain them. With regular bookkeeping and tax services in Surrey, you can get the most accurate picture of the overall health of your business financially, and make decisions based upon its future, that are more informed. Prioritising your books also means that when tax season comes around, you’re well prepared and can furnish the CRA with whatever documents they may need.

If you can manage your business books and taxes singlehandedly, and effectively, brilliant; but the minute you start to struggle, don’t hesitate to seek professional help. If you don’t, you’ll soon regret it when you’re faced with penalties from the CRA, or when find your business leaking money from an unidentifiable source.

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