By Laura Holmes, Owner of Athena Accounting & Bookkeeping Services
Hi! I’m Laura and I support female-led businesses throughout the UK with all things accounting!
I’m a qualified accountant and bookkeeper and have worked in the finance world for 15 years.
I wanted to put together some useful tips that you can implement into your business.
What expenses can I include in my accounts?
HMRC’s take on this is that the expense must be ‘wholly and exclusively’ business related.
This means that there can be no personal benefit. Here are some examples:
You purchase a desk and chair for your home office. You only use that room during working hours. This would be an allowable expense.
You’re having a photo shoot for your business. The cost of the shoot would be allowable as it is marketing for your business however the cost of having your hair and make up done for the shoot is not allowable as you are also benefiting personally.
You’re a personal trainer and go to the gym six times a week. The cost is not allowable as a business expense, as again there is a personal benefit.
Every business and situation is different so if there is ever anything you’re unsure of, then seek advice.
Where do I start with bookkeeping?
Bookkeeping is something that you need to give regular attention. If you don’t, then I’m sorry to say that it’s only going to snowball and become an even more daunting and overwhelming task. I would recommend setting aside a couple of hours at least once a month to get things up to date. Perhaps you will need to spend a bit longer or a bit less time – it all depends on the type of your business and how complex things are. The key thing is to manage it regularly. Keeping a check on things will also mean you are reviewing performance so that you can take action where necessary rather than months later when it’s probably too late. This leads nicely onto the next tip…
Get some accounting software
Using software is a no-brainer. You can use it to produce sales invoices, set up automated invoice reminders to save you time chasing clients, you can use it to give you many different reports to delve into the numbers and my favourite feature is the bank feed. ‘What’s a bank feed?’, I hear you ask! You connect your bank to the software meaning you can categorise all your income and expenditure in a few clicks. It’s like a live bank statement and is a fantastic, timesaving tool.
There are lots of training guides and help available to get started so don’t feel daunted by learning a new software. It doesn’t have to cost the earth either – there are many low-cost options and even some great free choices.
Set a budget and monitor cash flow
At the beginning of the year, plan out your year ahead, allowing for any big annual bills or dips in sales. It may feel like an overwhelming task but it’s vital to help to avoid any potential crises! Each month, review your sales and expenses against your budget. This will help you to track where you are overspending and to better manage cash flow.
Remember key dates
Make a note of any key dates for your business such as self-assessment deadlines, VAT return deadlines and year end filing due dates for limited companies. This will help to ensure everything is prepared, ready on time and avoid any nasty surprises from HMRC (fines!).
If you’d like to get in touch to discuss how we can support your accounting function, you can find us here:
Instagram: https://www.instagram.com/athena_accounts
Facebook: https://www.facebook.com/athenaaccounts
Other: www.athena-accounts.co.uk
Laura is AAT qualified and certified with the Institute of Certified Bookkeepers (ICB). After working in finance departments for 12 years and with the need for more flexibility after becoming a parent, she founded Athena Accounting & Bookkeeping Services and supports female service providers with bookkeeping, VAT, payroll, cashflow, management accounting and much more.
Outside of work, you can find Laura walking the dog or somewhere sunny with a G&T in hand!
This blog was prepared or accomplished by Laura Holmes MICB in their personal capacity. The opinions expressed in this blog are the author's own and do not necessarily reflect the views of Kayleigh Johnstone or COZ PR.
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