April 25, 2018

Piles of leaves in the garden. Piles of receipts in the office?

Piles of leaves in the garden. Piles of receipts in the office?

Piles of leaves in the garden. Piles of receipts in the office?

The leaves are falling and we are preparing for the colder months. Does this include making sure you have systems in place for recording your businesses receipts and payments?

Do you sometimes feel that as fast as you brush up the leaves the wind scatters them about, or do you have a leaf vacuum that gathers them all together leaving a neat looking garden or drive and a contained volume of leaves to file in the compost heap or bonfire.

Perhaps your book-keeping is the same. You dip into it on occasions but it keeps escaping. Wouldn’t it be better to have systems in place to capture the information. I am not suggesting you set light to the papers once they have been input, but as HMRC will accept electronic copies of documents now, you could do.

Some book-keeping systems, including QuickBooks, allow you to take a photo of the receipt with your phone and upload it to the cloud. You then tell the cloud what it was for and how it was paid and the software does the rest. Couldn’t really be simpler. The great thing is that you are doing little and often rather than having this elephant that is too big to eat.

In speaking to some non-clients, their view is that elephants are not just big and scary but have hidden tricks up their sleeve. What they meant by this is there are some payments that they just don’t know what to do with or how to classify. My suggestion is have a heading of ‘Ask My Accountant’. This means that the payment (or receipt) can be logged in your system with lots of notes to help remind you later and then you can move on. An accountant will be grateful for drawing ‘funnies’ to their attention in this way rather than they be missing, or hidden somewhere. Your accountant knows that, with information supplied by you, the buck stops with them regarding classification and whether an item is tax allowable or not. That is part of what you pay them for.

Enjoy your accounts and this will help you grow your business.