Keep Your Book Keeping & Accountancy Costs Down.

1. Keep a cashbook: This is a record of all your receipts and payments for your business. Record  information about the transaction in the "Details" column so that you know what you've done, and why.
 
2. Drawings: Try to avoid withdrawing lots of small bits and pieces. Instead withdraw larger amounts less frequently and use these to pay for your personal expenditure.

3. VAT: Keep columns in your cashbook for sales and purchase VAT. This will make it easier to calculate your VAT liability when the VAT return is due.

4. Bank Reconciliation: This is the process of agreeing the running total of your cashbook to the balance per your bank statement. Often the two do not agree, but the difference MUST be fully explained.

5. Takings: Make sure that the amount actually banked is recorded in your cashbook, not the amount per your till receipt, which may be different. If a difference does exist, record it as a "Write Off".

6. Computerised Books: If your book keeping is even moderately complicated, then you should think about using Sage Instant Accounts. It makes our job easier.

7. Maintain Your Paperwork Regularly: As you process receipts or payments, file the paperwork away in a level arch file. Also tidy away items paid via direct debit or standing order to leave a small, manageable "to do" tray.

8. The "Other" Column: Analyse expenses into relevant columns such as rent, rates, insurance etc. Try to avoid placing more difficult items into the "other" column, only for your book keeper or accountant to have to spend lots of time trawling through it to reclassify things.