I’ve just sorted my second year accounts and it was so much simpler and quicker than the first one! There are a few little tips and tricks I swear by to keep my accounts in order and as stress free as possible.
I hope they’ll be of some use to you and feel free to add any more in the comments.
1 Keep a little pin board or clip, attach every receipt to it, add them to your expenses and file them away as you go.
If a receipt is on the board, you know it hasn’t been logged and once the pile starts to build, you know to get on it. No receipt will be missed or lost, just make sure to clear out your bag/wallet and attach them to the board in the first place!
2 Update your income and expenses every couple of days and make sure everything adds up
It’ll only take a few minutes out your day and will save you a massive headache when your tax return is due. This way you can detect any problems and if there is one you’ll know that it will have occurred in the last couple of days. No re-adding up the whole month/year for you!
3 Organise your receipts
I have little groups of receipts which relate to each month. This way if I need to track a receipt, I can go to that month and voila! If you have lots, file them in actual date order as well as months.
4 Keep your bank account tidy
Don’t use your business account for personal purchases and vice versa. Accounting can get confusing so keep it all as simple as possible.
5 Do your tax return early
Extra stress or a late fee just isn’t worth it. If you keep up to date using the tips above, then you can your tax return done and filed as soon as possible and BOOM, you’re headache free.
I know the financial side of freelancing and running a small business can be the most annoying part for some but it is possible to keep it simple and you definitely don’t need to be a maths genius!