Bookkeeping is an essential part of keeping your business running smoothly, but it’s so easy to fall behind with receipts, and this can be a problem at the end of the year. However, it’s not impossible to stay on top of your books if you know how to do so.
The likes of Xero and Receipt Bank have already proven that bookkeeping and cloud-based software can be highly beneficial for any business hoping to have more control over their receipts. Even if you’ve never used such services, a good old spreadsheet can also help. But if you’re still struggling, here are some useful tips to remember.
First up, collect all your receipts, invoices, and even paper scraps with IOUs scribbled on and separate them into card payments and cash payments. If you use multiple cards for purchases, you’ll need to separate further by which card you used, such as Credit and Debit. There’s nothing wrong with using various cards, but it does create more work for you when you are keeping on top of your bookkeeping, so its worth using only one card for all purchases.
After you have organised your receipts and invoices, it’s time to divide them by month. Start with the beginning of the financial year and work through there. You can also arrange by day of the month, but again this will create extra work for you, so it’s not essential. Once you have organised everything by month, secure each pile separately with a paper clip or staple and put them somewhere safe. We don’t want them being used as a coaster, do we?
Now for the (relatively) fun part. Grab your phone or your DSLR if you want to get some high-quality snaps, and take pictures of your receipts and invoices. These pictures will serve as a permanent and easy-to-organise step for staying on top of bookkeeping.
Upload the pictures of the receipts to your accounting system or, if you’re using a spreadsheet, organise them into files on your computer. This organisation should cover what type of expense they are, such as Stationery, Software, Clients, and whatever else you feel is appropriate. However, avoid Sundries, as the HMRC is not entirely keen on such a definition as it is too vague. Once the pictures are uploaded, you can throw your receipts away, although it might be a good idea to shred them, first.
Not For You?
If this sounds like too much hassle, and that’s entirely understandable, then working with a Virtual Assistant to sort your receipts and complete your bookkeeping will lift that end-of-year dread cloud so you can focus on more important things.
Staying On Top
We all know how busy it’s going to be at the end of the year, and if you don’t have the time to stay on top of your books to ensure total clarity, VA Advantage can help! Get in touch to find out more about how a dedicated Virtual Assistant can cover all the things that you’re too busy for, and see how it can benefit you.