Monday, December 12, 2016

Managing Your Business Finances Doesn’t Have To Be Complicated

Guest Blog – By Senior Business Adviser John Jones

Okay, we know that sometimes life gets on top of us all and it can be easy to let things spiral and get out of control. But we also all know how important it is for that not to happen when it comes to your business finances! That’s why we’ve asked our Senior Business Adviser, John Jones to draw on his previous years of accounting experience, and put together his top tips for keeping your business books in order! These tips are great for young people in business that haven't had any formal training and also young businesses that are just starting out, so you can keep everything in order from day dot!

So here we go…

Chose the HMRC option for ‘Simplified Expenses’. For example, you can use the 45p per business mile for any business journeys, using your own, personal car. This is so much simpler than keeping all your petrol receipts and then having to adjust them for personal mileage.
  • Keep an hour or so aside every week to take a look at and keep on top of your bookkeeping records. If you keep a weekly, or even monthly summary of your receipts and expenses, this is much better than trying to sort everything out at the end of the year.
  • Make sure that you get an invoice or receipt for everything that is bought for your business. Even if you haven’t yet started your business, you can claim these against your business income as and when you start the business.
  • Make sure that you keep a record every time you sell goods or services to a client. This way, you will be covered if you ever have to provide proof to HMRC.
  • And finally, ensure that you claim all your expenses (to set against your business income) For example, even if you use a room in your house, HMRC allows you to claim a monthly amount as a legitimate business cost. This is explained over on the HMRC website.
  • So there you have it, a few tips that you might not have known about and a few handy ways to keep your business books in order. If you are starting from scratch and want to learn great ways of keeping your book properly as well as resources for this, then you should check out of Basic Bookkeeping course.

This course runs every month, from 10-1pm and costs just £25 – You can check out the upcoming dates here! 

The Women's Organisation is supported in part by The Skills and Opportunities Fund. This fund is one of the many ways that the Royal Bank of Scotland (RBS) is contributing to the communities they live and work in. In 2015, they committed £2.5m to fund projects in charities, social enterprises, community groups, state-funded schools and colleges across the UK and Ireland, and they have allocated at further £2.5m to be split across two rounds in 2016.

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