I am Hugo, the Accounts Apprentice at BAS Associates. I have been part of the team for nearly a year now and am working my way through my ICAEW qualifications.
As part of my role and induction to accounting, one of my first tasks was to understand the principles and then the methods associated with effective bookkeeping.
Whilst completing my bookkeeping training I found that when I focused on three key areas the whole process was so much easier to manage.
So, to help those that are new to bookkeeping or if would like some tips to prepare your records for your accountant or bookkeeper, please take a look at my short blog below:
3 top tips for Bookkeeping
Files everywhere, invoices all over the place and the possibility of your accountant charging you extra for fixing your bookkeeping mistakes. What can you do to prevent all of this?
Do not sweat it!!!! Here are my 3 TOP TIPS for successful bookkeeping!
Tip 1: Keep business and personal finances separate.
This is the golden rule of bookkeeping. By sticking to this rule, you will largely reduce the number of transactions that need to be categorised and reconciled. Sorting through and separating personal and business transactions can be both time consuming and expensive, especially if your accountant charges by the hour. So, keep your business and personal finances separate, separate bank accounts and separate receipt and invoice storage. It’s worth noting that not all accountant charge by the hour, at BAS Associates we charge a fixed fee (but we still ask you follow this tip!).
Tip 2: Keep all your records well organised.
Good organisation is key to good bookkeeping. Putting all records into a logical order makes it so much easier and quicker to find the information that’s needed. So, make sure you keep all your receipts and file them in a logical way such as an alphabetical order, and then by date. You should also have your sales invoices ordered in numerical order. Ensuring your records are well organized will help you or your bookkeeper notice any discrepancies and mistakes sooner than usual so they can be rectified. Finally, bank accounts should also be reconciled on a regular basis as this again is helpful for noticing and addressing any discrepancies.
Tip 3: Mismanagement leads to mistakes!
With bookkeeping it is a necessity that you do not procrastinate! By procrastinating you can miss out on important deadlines which can be detrimental and is an example of mismanagement. It is important that you keep on top of your books so that it never gets out of hand. One way to keep on top of it is to devote a certain amount of time every week process your records for the week. This way you reduce the risk of being inundated with large amounts of bookkeeping to do in one go which can be very time consuming and, at times, confusing.
If you keep these tips in mind you are sure to succeed!!!
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