Recipe for success – good bookkeeping

Bookkeeping is a lot like baking — the secrets to success are accurate measurements, close attention and precision timing.

Recipe for success – good bookkeeping…

Ingredients

Expenses and receipts
Outstanding costs and debts
Copies of invoices
Cheque stubs
Bank statements
Equipment

Spreadsheets or bookkeeping software package
Calculator
Method

Weigh things up carefully. Accuracy is vital in bookkeeping, and that means weighing up all your incomings and outgoings, large or small.

Keep a close eye on everything. Keeping good financial records takes regular attention — a methodical approach to filing ensures you won’t be left with a curdled disaster at the end of the financial year.

Accurate measurements are essential — especially when your ingredients are being transferred from one place to another. You have to ensure the figures add up.

It’s also important to reserve some of your mixture for later — money that you set aside to pay the taxman.

Timing is everything. You must meet VAT and tax deadlines if you want to avoid getting your fingers burned by fines.

Get the mix right, and you’ll have books that do more than just satisfy the tax inspector. Slice into the data, and you’ll get a snapshot of exactly how your business is doing and where the threats and opportunities lie.