Home Finance A Guide to Small Business Accounting

A Guide to Small Business Accounting

Businessman working in the office

There are many aspects to starting a business, not least the accounting, which is a critical component of every organisation. Bookkeeping is something you can either outsource or spend the time yourself entering data, but either way, you should first make contact with a local accountant who specialises in helping small businesses.

Setting Up a Routine

Contacting the best accounting services in Woking will result in an accountant setting out a bookkeeping system for you to religiously follow, and the best time to do this is before you start trading. The following tasks should be completed on an almost daily basis:

  • Recording all income and expenditure – Spreadsheets are used for this, while receipts would be numbered in keeping with the spreadsheet entry, for easy verification. Microsoft Excel is very user-friendly and will save you a lot of time; just remember to back up all your files onto another drive, which will prevent loss of data.
  • Details of products sold/serviced rendered – Every sale should be recorded, with date, time and amount, all entered into the spreadsheet.

Company Formation

Consulting with a local Chartered Accountant will enable you to choose the best path regarding how your business is set up. It might be a partnership, a limited company, or a sole trader operation, and there are different taxation rates for each. You might, for example, have to be VAT registered, which is something the accountant can help to do.

By seeking the advice of a local accountant at the very outset, your business will be properly structured, and with up to date bookkeeping, your business is ready to take on the world.