Accounting – A Quick Guide

Managing your accounts can be daunting and confusing. But keeping accurate, transparent accounts is crucial, both for yourself and for your business. In this blog, we offer a few ideas that may help you manage your accounts more effectively.

Keeping your own records

The first option is to manage your own accountancy records. This can be done with a simple spreadsheet, in which you can record all incomings and outgoings. This is a particularly easy and cost effective way of managing your accounts if you are a sole trader or your business has a straightforward structure i.e. a product or service out, and a payment from a customer in.

Using accountancy software

There are numerous accountancy software packages now available, which will help you keep your accounts correct and up to date. These packages are particularly good for those of us who need a bit more support when it comes to managing our accounts. They are also ideal for businesses which have more complex offerings and numerous in goings and out goings.

It's worth bearing in mind that these packages will have monthly charges - the amount of which will depend on the level of service you require. However, this cost can be factored into your monthly budgets and, in the long run, may help you save money by better monitoring your finances.

Using a professional accountant

Another option is to employ a professional accountancy firm to look after your accounts. Whilst this may be the most expensive option, using an accountant, particularly if you own a larger business, will ensure that your accounts are accurate and you take advantage of any opportunities available to you.

Managing your money

As well as managing your accounts, you also need to manage your money. Hopefully these two factors will go hand in hand, but it's worth remembering that you need to ensure you have the funds to pay your outgoings, such as tax bills. For example, creating a 'Tax Pot', into which goes a percentage of your earnings, will ensure you have the correct money and there are no nasty surprises.

Managing your accounts can be a mine field, but hopefully we've provided you with a few options to get your accounts on track. If you're struggling, we would always recommend consulting a professional, who will be able to guide you and assist with any queries.

Whilst we can't help with your accounts, here at National Plastics we can offer you an industry leading Trade Account. These accounts offer a wide range of benefits, as well as helping you manage your money more accurately. To find out more, give our friendly team a call on 0800 22 77 77.