No-one sets up a business because they want to spend their time on bookkeeping!
But maintaining complete and accurate financial records is a legal requirement in the UK, and failing to do so can lead to substantial fines from the HMRC or worse, prosecutions.
So the success of your business relies on you getting your financial accounts in order.
Cloudants’ easy monthly online bookkeeping service can help you avoid these FIVE common mistakes:
1. Using Spreadsheets
Spreadsheets offer an amazing set of tools for all kinds of financial data analysis and it’s tempting to try to use them for your simple bookkeeping needs.
However, as the number and types of entries increase, even a spreadsheet guru will struggle to effectively manage the data.
Online accounting tools are designed to specifically meet the most complex accounting needs, with many tools and features that help you keep things in order.
Cloudants can help you move your books to the cloud and provide support once you’re set-up to keep everything in order.
2. Losing Receipts & Invoices
Most businesses buy goods or services; and when they do they get a receipt or invoice.
Traditionally ordering and categorising crumpled papers has been the bookkeeper’s bread-and-butter work.
Not any more! These days many transactions take place electronically, meaning receipts can be sent to a shared inbox or input directly into your online accounting tools, to match up with an online feed from your bank. There are also many tools for your smartphone which make it easy to digitize paper copies.
Our digital transformation Cloudants can help you find the right technology for your business and get you started in no time!
3. Mixing Personal & Business Expenses
In the early days of a business it can be difficult to separate personal and business expenses.
We recommend you use a single, separate bank account for your business and try not to mix transactions, as this increases the time required to reconcile your books.
4. Posting to the Wrong Ledger
Accurate bookkeeping depends on posting to the right accounts and ledgers, so that transactions can be classified properly.
However, we appreciate it’s not always clear where transactions should go. It’s worth getting it right the first time.
Our Cloudants are here to help, not only posting transactions to the right place but also helping your understanding for the future.
5. Falling Behind with the Books
We know you want to get on with running your business!
But leaving your accounts neglected for too long is one of the biggest mistakes businesses make. It is much more difficult and costly to go back through historical records and try to piece together your accounts months after transactions have taken place.
You also miss the opportunity to spot key financial indicators that can help you manage your business more efficiently.
Our Continuous Accounting principle means that with a monthly Cloudant’s plan we’ll keep on top of your books every month, and feed back any trends we spot in the data, for example if a bill significantly increases or your held-stock increases.
Ready to Start?
We’d love to support your business with its accounting and bookkeeping needs.
Contact us today and we’ll create a bespoke plan for your business at a fixed monthly cost.
5 Common Bookkeeping Mistakes