So, you’ve launched your business and are raring to go, but have you given any thought to the accountancy side of your business? We know this might not sound particularly exciting, but accountancy is so much more than just filing returns with the tax man. Get your accountancy tasks right and you will be able to:
- Have a clear overview of your business cashflow
- Budget effectively
- Make informed business decisions about the future of your business
- Be confident that your business is secure, or spot when you need to make necessary changes.
And while trying to balance your books or file all your receipts might seem a bit of a chore, we promise you, the sooner you get into the habit of doing it, the easier it will become!
We take a look at the key accountancy tasks you should be doing weekly, monthly, and annually.
Weekly accountancy tasks
When you’re running a business it’s really easy to put off accountancy tasks for more important things, such as looking after your customers, but if you put aside some time each week, it will be easier. Friday afternoons are a good choice for many businesses but choose a time that works best for you.
- Record any transactions: you need to have a clear idea of your outgoings as well as any money you are making, so make sure all transactions, including any cash ones are entered into your bookkeeping software.
- File any receipts: If you have receipts that don’t automatically sync with your accounting software, then get them scanned and uploaded into the system.
- Reconcile your bank statements: checking this weekly will help you catch any errors early.
- Review timesheets: if you have people working for you, then it’s worth reviewing their timesheets on a weekly basis. This will help you keep track of any overtime (authorised or unauthorised!) and spot any discrepancies you need to deal with before it becomes more of an issue.
Monthly accountancy tasks
Every business is different, so you might find some of these monthly tasks are things you want to be doing weekly, but as a guide:
- Prepare and send invoices: you may opt to send invoices as soon as you have completed the work but having a set time to do them each month will not only save time but also help ensure you haven’t missed sending any.
- Chase any outstanding invoices: a lot of people starting out in business feel a bit uncomfortable about chasing unpaid invoices, well don’t be! You have done the work and deserve to be paid in a timely fashion.
- Pay any outstanding bills: some of these may not wait until month end, but it is a good opportunity to check you are up to date will all your payments. It’s also worth checking whether any of your vendors offer discounts for early payment, as these are worth taking advantage of.
- File your VAT returns: depending on how you’ve set up your business, you may need to file your VAT returns monthly. If you have opted to do them quarterly, or annually, just make sure you know when your returns are due, otherwise you could face a penalty charge.
- Review your budgets: this is a great time to double-check your budgets are on target for specific projects or activities. If you find you are spending too much (or too little) on a particular area, this gives you opportunity to make any necessary corrections for the following month.
- Manage your cashflow: at the end of each month review how you expect your business to fare over the next month in terms of expected income and bills.
Quarterly accountancy tasks
- Analyse your businesses’ performance: this is the perfect time to take a long hard look at your accounts to see how your business performed over the last three months. Are there any seasonal trends you need to be aware of? Did you make more or less money than expected? Were there any unexpected outgoings? Are these likely to occur again?
- Send your Self-Assessment update to HMRC: From 6th April 2024, anyone who is self-employed must send a quarterly summary of business income and expenses to HMRC. Find out more about the self-assessment changes coming in.
- File your VAT return: if you file your VAT returns quarterly, now is the time to do it.
Annual accountancy tasks
The good news is if you’ve been carrying out the weekly and monthly tasks as listed above, your annual accountancy tasks won’t be too onerous. Honestly!
- File your Corporation Tax return: if you have a limited company then you must file a Corporation Tax return no later than 12 months after the end of the financial year. We would always recommend you complete this as soon as possible, as that way you know exactly how much tax you will owe.
- Submit your annual accounts: annual accounts need to be prepared, approved and filed with the relevant body within 9 months of the end of the financial year.
- Submit your end of period statement: if you are self-employed, from 6th April 2024, you will need to submit an end of period statement for each source of income along with a final declaration to HMRC.
- Review the health of your business: many startups make the mistake of thinking filing their accounts is just a statutory requirement, but they actually provide invaluable information about the state of your company. Always take the time to understand what your accounts are telling you as they will help identify anything that is working particular well along with potential areas of concern.
This might sound like a lot of work, but as we said earlier, get into the habit early, and it will be easier to build into your workload. And, of course, you can always hire an accountant to help you out! We offer a number of fixed price accountancy packages for business startups which include bookkeeping, self-assessment tax returns, company accounts and Corporation Tax returns. So, if you are just starting out and would like some accountancy help, please get in touch.
