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Accountancy tips for small firms

If you are a small firm, the chances are you are struggling to keep on top of everything that needs to be done. Bigger firms have the benefit of employing a large staff base, whereas many small firms are run by one person or have a staff of only one or two. For them, important tasks like accountancy can easily be neglected. To help you to avoid this, here are a few tips:

Do it daily

The best way to stay on top of your accountants is to do them every day. It only takes a few minutes to key your takings and outgoings into a spreadsheet or a simple accountancy package. If you make it the first task or last task every day, it will definitely get done. File everything as you go along.

Keep things simple

If you are only a small business, you do not need elaborate software to do your accounts. The simpler your accounting process is, the easier it will be to stay on top of things and train new personnel.

Stay up to date with legislation

One the biggest mistakes firms make is not being aware of changes in tax legislation. You need to watch the news for changes in this area. Not knowing the rules is not a valid reason for failing to comply with the law as far as HMRC is concerned.

Watch your cash flow

One of the biggest reasons small businesses go bankrupt is a stagnant cash flow. Use your accounts to let you look forward a few months and see pinch points in your cash flow coming. That way, you can arrange a short-term loan or take other steps to avoid a temporary cash flow issue putting you out of business.

Hire an accountant

Hiring an accountant is well worth considering. It does not cost much if you use a firm that offers a tailored service, and you can use the time it frees up to market and grow your business.

Posted by Peter
November 4, 2014

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