A start-up’s guide to bookkeeping

The decision to start your own business can be an extremely exciting time. However, amid the excitement, managing finances effectively is crucial for long-term success. Proper bookkeeping ensures that your business remains financially healthy and compliant with regulations.

With a long history of supporting fledgling businesses throughout the UK, the Ellis & Co team have put together their top tips for getting your bookkeeping function up and running accurately and efficiently.

Identify appropriate software

Investing in reliable accounting software can save time and reduce errors. There are numerous options available, such as QuickBooks, Xero or Sage, each offering various features tailored to different business needs. Select software that integrates with your bank, provides real-time financial insights, and simplifies invoicing and expense tracking.

Maintain detailed records and track expenses

Accuracy is vital in bookkeeping. Record every transaction promptly, ensuring all income and expenses are documented. Keep receipts, invoices, and financial documents organised, either physically or digitally. Furthermore, it is crucial that you monitor expenses for budgeting and financial planning. Categorise these expenses (e.g. travel, office supplies, marketing) and track them consistently. This will help you to identify areas where you can cut costs and make any necessary claims where eligible.

Reconcile regularly and track your cash flow

Regularly reconciling your bank statements with your accounting records helps identify discrepancies. We recommend that you aim to perform reconciliations monthly to ensure your financial records are accurate and up to date. This will also help you accurately track your cash flow and forecast future cash flow requirements. Understanding your cash flow can help you make informed decisions about investments and expenses.

Know your obligations

Tax compliance is crucial for any business. Familiarise yourself with HMRC relevant to your business and ensure you have the appropriate processes in place to meet these obligations timely and accurately.

Choose the right bookkeeping partner

For any business owner, but particularly those running a start-up, finding the time to maintain bookkeeping requirements can be difficult. Therefore, choosing a bookkeeping partner who will work with you to maintain your finances can ultimately be the key to your new business’ success.

Hilary Cossa, Bookkeeper here at Ellis & Co has said:

“At Ellis & Co, we come across different types of business’s both in size, nature of the business and the overall goals a company strives for. The ability to offer a variety of bookkeeping tasks and the flexibility of several software packages available to choose from can enhance and improve the efficiency of any business.”

If you are looking for support with bookkeeping or simply want guidance from the experts on all things start-up, get in touch with the Ellis & Co team today to find out more about our services.