Many self-employed and freelancers love their job. Hardly anyone loves just a part of the job: Accounting! However, every business owner must keep a record of all business transactions, which are usually subject to taxation. That’s why care is the top priority. The reality, however, usually looks different. In a lot of cases all the documents and receipts for accounting for weeks and months pushed away and now you do not know where to start.
Doing the bookkeeping yourself – but where do I start?
Tip 1: Every beginning is difficult
The bookkeeping is often pushed to one side, then suddenly sales stats or the VAT Return must be submitted. Then the rush and the stress start. If the documents are not delivered on time, fines, penalties etc can be incurred.
We recommend that you block 30-45 minutes a day, or a fixed day of the week , to focus exclusively on this unpopular but essential task. Not only will you have less stress when deadlines are approaching, but you will also be able to better understand the current financial situation of your company.
Tip 2: Sort your receipts
Often receipts and invoices are put to one side or stored in a box. But how often do you find the document you’re looking for? Save yourself the long search and sort out your receipts. With online accounting programs, you can create various folders or categories (for example, bank documents, cash receipts, incoming invoices, outgoing invoices, contracts, and others) and record the documents correctly. These documents are stored electronically and can be stored according to legal regulations.
In addition, you can also provide various information, such as posting date, amount, currency, etc. The detailed documentation of business transactions helps you to have a realistic and complete overview of your income and expenses at the end of the financial year.
Tip 3: Use the right help
Do you take on the bookkeeping yourself, or do you pass the bookkeeping to an external accountant or tax consultant? Both variants have advantages and disadvantages. Accountants and bookkeepers need to be paid, but they remove you from the day-to-day bookkeeping and their experience ensures that the books are kept accurately, complete and in a timely fashion. On the other hand, you can save a lot of money by keeping the books yourself, and by doing so, you can get to know your company better and make better decisions for future success. Accounting is not rocket science and can be learned quickly.
But do you have to decide whether to do the bookkeeping yourself or outsource it to a tax consultant? How about working with the accountant ?
Small businesses especially are increasingly using accounting software that is fully online and in the cloud. What does that mean for you? Flexibility! At any time and from anywhere you can access your accounting with all receipts, bookings and reports. In addition, the easy-to-use and intuitive cloud programs help you book business transactions, archive all receipts electronically, and automatically generate balance sheets, profit and loss accounts, and VAT reports.
Most importantly, you can give your accountant/bookkeeper access to your cloud accounting and share the tasks (and costs). You book everyday business transactions while your accountant controls them and uses the data to create your financial statements and VAT Returns. True to the motto: hand in hand!
Reviso is an online accounting and invoicing software for SMEs, the self-employed and freelancers. Sign up for a free, no-obligation trial and get all the benefits of cloud accounting.