Keeping track of your small business finances can be a challenge, especially if you’re trying to juggle numerous transactions at once. But the right UK bookkeeping software can make your life much easier. It will help you automate your bookkeeping and manage your invoices and receipts more easily.
If you’re just starting out with your business and don’t have an accountant on hand to advise you, it’s wise to choose UK bookkeeping software that is simple enough for beginners. Once you get a little more experienced and understand the nuances of running a business, you might want to upgrade to a premium version of the same software or look for something new entirely. Having the right bookkeeping software will ensure that those first few months are smooth sailing. Here’s how to manage your invoices and receipts with UK bookkeeping software.
Organize Your Receipts Before You Start
First things first: get your receipts organized. You’ll want to keep all of your receipts for the first few months of running your business in one place. This will make it much easier for you to keep track of your expenses. You don’t want to lose any of these receipts, as they are proof of the money you spent running your business. It’s a good idea to use a receipt book or folder to keep them all in one place. It’s also smart to make sure the receipts are labeled correctly so you can see at a glance what they are for. You might want to consider creating a spreadsheet to keep track of your receipts. This will allow you to keep track of the details of each transaction, as well as when you received or paid each receipt. You might also want to include a column for the date each transaction occurred. This will make it easier to keep track of how long you’ve been in business.
Record Each Transaction Immediately
You’ll want to record every transaction as soon as it happens. This will make it much easier to track your business’s expenses and income. You might think that keeping track of everything by hand would be too time-consuming. But the truth is, many UK bookkeeping software programs have a simple-to-use interface that makes it easy to record each transaction immediately. Not only will this help you keep track of your expenses, but it will also allow you to track your income more easily. This will help you determine how long it will take you to break even or make a profit. You should definitely keep track of each invoice you get and each payment you make. You may want to note the date they were received and/or paid, as well as the amount. This will help you keep track of your expenses and income at a glance. It will also make it easier for you to report to your accountant at the end of the year.
Automate Receiving and Paying Invoices
If you’re receiving a lot of invoices from your suppliers, you may want to consider automating the process. This will make it much easier to keep track of all of your transactions and make sure that you pay each invoice on time. Bookkeeping software often comes with integrated bill-pay functionality. This allows you to automatically pay each of your invoices as soon as they are due, provided you have the money in your account. It’s a good idea to pay each of your invoices as soon as they are due. This will make it easier to track your expenses and ensure that you stay on track with your budget. Be sure to create an invoice template for each of your suppliers. This will make it easier to create and send out invoices to your clients.
Record Receipted Invoice Amounts
Make a note of each amount your suppliers record on their invoices. This will help you keep track of your expenses and make sure that you don’t overspend. It will also make it easier for you to create accurate reports for your accountant at the end of the year. You’ll be able to easily report the amount of each expense and compare it to the amount you budgeted for each category. You’ll also be able to keep track of which expenses you can deduct from your taxes and which ones you can’t. This will make it easier for you to claim all the deductions you’re entitled to. Make sure you record the date each invoice was paid and the amount. This will help you keep track of when you paid each invoice and how long it took you to pay each one.
Summing up
Keeping track of your invoices and receipts is an important part of managing your business’s finances. But it can be a challenge, especially if you don’t have a system that works for you. The right bookkeeping software can help make this process much easier. It will help you automate the receipt and payment of invoices, as well as track your expenses and income more easily. It’s a good idea to choose bookkeeping software in UK that is simple enough for beginners. Once you get more experienced, you may want to upgrade to a premium version of the same software or look for something new entirely. Having the right bookkeeping software in UK will make it much easier to keep track of your invoices and receipts.
