Bookkeeping tips for sole traders

Posted by admin on April 10, 2011 under Uncategorized | Be the First to Comment

Being your own boss is great, but it’s not without its fair share of responsibilities. One of which is keeping your books in check, which may not be your favourite pastime. There are ways of avoiding a bookkeeping disaster though. If you run a one man band, here are a few tips to get the cost of your bookkeeping down.

1. Keep your receipts

It is so important to keep every invoice or receipt that can be claimed as a business expense so that you can get the most return on your BAS and an overall annual turnover figure. Trying to remember how and when you paid for goods or services afterwards is always daunting and adds masses of time to documenting your outgoings. If you are not given a receipt, make sure you keep a written log of all the details of the transaction.

2. Use electronic payments

By using your credit card or performing an online transfer, you will have an electronic log of the transaction, therefore allowing you to track outgoing payments instead of relying solely on paper receipts. It is much easier to reconcile via an account statement rather than your memory!

3. Reconcile regularly

Try to keep track of reconciling your invoices and expenses on an regular basis so that it is not left to the last minute. It becomes very difficult to balance the figures when there are piles of disorganised paperwork to sift through. Your bookkeeper will love you for it and you will save money.

4. Separate your finances

Try to keep your personal transactions away from your business ones. This is a fundamental rule of running a sole trader business. Going through all your personal statements and trying to pick out what is business related is very time consuming and doesn’t need to happen if you stick to it.

If you want to keep your bookkeeping costs to a minimum, do yourself a favour and stick to these rules. You will save a lot of money and keep your bookkeeper sane! If you need assistance in any case, please contact us and we will help you.

Add A Comment

You must be logged in to post a comment.