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If you have just started a new business, you need to know that the paperwork is going to start accumulating quickly.

You need to know the basics about bookkeeping for your new business to avoid major headaches in the future when you may be so busy you really don’t need the stress!

You could find yourself facing:

• Penalties from unpaid tax or overdue payments

• Cash flow problems due to unpaid invoices

• Grumpy suppliers who refuse you a line of credit

• An inability to secure finance due to poor records

• An end of month or tax year nightmare that take you away from productive activities

Good accounting processes are a key function of running a profitable business. Whether you are big or small, you need to keep your daily bookkeeping organised so you can get a more accurate picture of where your money is being earned – and spent.

Good bookkeeping practices include:

• Separate business transactions and bank accounts from personal ones.

• Don’t use your personal funds on company expenses or vice versa.

• Keep receipts and invoices well organised (not just thrown into a box!)

• Keep your bank statements and reconcile them each month.

• Buy a small accounting software package to help you with your records.

• Keep an eye on the numbers even if you don’t do the books yourself

• Keep track of profits and expenditure and decide what areas need attention

• Have credit control processes to follow up on unpaid invoices – this can seriously affect your cash flow

• Consider outsourcing your bookkeeping to a trusted professional