Any business – from small startups to large corporations – must run the books properly. In reality, accounting tends to be pushed forward and receipts and bills are arbitrarily deposited in shoeboxes or on paper mountains. In retrospect, it’s then becomes difficult to find all the documents and to book correctly if they are needed for the advance VAT return or for the tax return. In this article, we’ll give you a few tips that will help you to do the bookkeeping carefully and on time.
5 tips for accounting
Tip 1: No booking without receipt
Each business entry requires a document to substantiate the amount, such as a receipt or an invoice. For this, the receipts must be collected and sorted in order to quickly access them.
In today’s age, you can store and archive your receipts digitally. Use an accounting software that allows you to pre-sort your documents first in different folders, eg incoming invoices and outgoing invoices. In the subsequent booking you will find the required documents faster and the documents are then attached directly to the booking.
Tip 2: Care and punctuality
Pay attention to a detailed and complete documentation of your business transactions. This is necessary to get a realistic overview of your business. In addition, the tax office expects a concise and complete accounting of all records.
It is therefore advisable to block a fixed appointment in the week to do your bookkeeping. As a result, all the work doesn’t build up at the end of the month and you have a weekly overview of how your business is doing.
Tip 3: Respect deadlines
Pay attention to the deadlines for VAT returns, tax returns, financial statements, etc. If these deadlines are missed, penalties could be issued by the relevant authorities.
Set monthly deadlines for the entire year to submit the documents to the tax office (or tax accountant) so that reports are delivered on time and in full. So it can not happen that you have to create the required reports at the last minute or even deliver them too late.
Innovative online programs offer an HMRC interface that allows you to submit automatically generated tax reports electronically to the tax office.
Tip 4: Responsibility
Who is responsible for which tasks? Define which tasks and work steps individual employees take on and which tasks may be outsourced to your accountants.
Use the right tools to achieve optimal collaboration between the parties and to coordinate the work steps. Choose a digital software that makes it possible to clearly control these processes.
More and more small and medium-sized enterprises (SMEs) and the self-employed rely on cloud-based accounting programs, allowing everyone involved to access the books anytime, anywhere, and work together in a cloud.
Tip 5: The right accounting software
With basic accounting knowledge you can manage most of your books yourself. Use an intuitive cloud accounting program. These are continuously updated automatically with updates, which means that your accounting always meets the current standard.
Reviso is a cloud-based accounting and billing program for SMEs, the self-employed and freelancers. You can access all receipts and bookings online and make your bookkeeping more flexible and efficient.