Launching a startup is undeniably exciting, but not every task is going to make the most of your entrepreneurial talent. If you’re a little worried about managing your business finances, you’re not alone! Solid bookkeeping is essential for your startup’s success, though, and it’s vital that you’re establishing good financial practices from the very first day. That’s where this guide comes in.
Use these tips to streamline your systems from the get-go, and get in touch with our team for professional Bookkeeping in Burgess Hill.
Choose the Right Bookkeeping System
Set up a bookkeeping system that works for your business model before money starts flowing in or out. Most businesses nowadays ditch the paper system in favour of digital alternatives, reducing clutter in the office and making it far easier to find, edit, and share important documents.
To make your first task an easy one, opt for cloud-based bookkeeping software. This is our go-to choice for digitising records and automating repetitive tasks, and we use Sage and Auto-Entry with all of our clients. If you partner with our team for bookkeeping in Burgess Hill, you’ll have automatic access to our fleet of software to make your record-keeping a breeze.
Separate Personal and Business Finances
One of the biggest mistakes your startup can make is mixing personal and business transactions. Organising your books and recording your cash flow becomes a lot more complex when you don’t have a clear divide between the two, and it’s much harder to maintain accurate proof of your finances.
To keep your bookkeeping organised and compliant, make sure to:
- Open a separate business bank account
- Use a business debit or credit card for all company purchases
- Keep receipts and digital records from the start
There are plenty of free business accounts out there that make it easy to get started. Explore your options and open an account as soon as possible for clearer transactions from day one.
Create Invoicing and Payroll Processes
Make sure you’re setting the foundations for healthy cash flow with organised invoicing and payroll. This reduces late payments and poor tracking, creating a healthier business and happier team.
We recommend using automated invoicing tools, setting out payment terms clearly, and scheduling reminders for overdue payments. For payroll, use handy software (Brightpay is our go-to) to schedule staff payments and automatically deduct the correct amount of tax, ensuring your compliance.
The easier option? Work with our team and we’ll take care of your bookkeeping in Burgess Hill so that you don’t have to worry.
Track Your Expenses
It’s so important to track your expenses as soon as you begin making business purchases. This is a legal requirement in the UK, and if you’re audited, you’re going to need a clear record of your expenses to show HMRC.
Tracking costs can also reduce your tax bill, with many startup essentials being tax-deductible. By recording yours properly now, you can ensure that all of your early purchases are ready to be deducted from your first tax bill.
We recommend carrying out expense recording every week (two weeks if you’re super busy or don’t have too many transactions to record). Categorise costs correctly to enable better financial reporting.
Invest in Bookkeeping in Burgess Hill
Hiring a bookkeeper might not be on your startup to-do list, but it should be. A bookkeeper provides accuracy, compliance, and organisation from the beginning, avoiding time-consuming issues later. A professional can help you with:
- System setup and software selection
- VAT registration and compliance
- Payroll and CIS, if applicable
- Regular reconciliations and reporting
- Year-end preparation
You’ll be setting yourself up for healthier cash flow from your very first day of trading, which is invaluable in the world of business.
Contact Our Professional Bookkeepers
Ready to invest in bookkeeping in Burgess Hill? Our team’s here to help. From onboarding you with our digital tools to your very first tax return, we’ll guide you through the process of managing your finances as a startup so that you can focus less on cash flow and more on business growth.
Call us today to learn more about our bookkeeping in Burgess Hill.