Cindy Evans-Finney is the co-owner of MoreCore Business Services. Here are her top six admin tips for small business (that will save you money in the long run). As Cindy says, it’s best to start the right way from day one (but if you haven’t, there’s no time like the present).
- Always have a separate bank account for business transactions, even if you are a sole proprietor. If you need your salary, spending money etc., do a transfer to your personal account.
- Try and keep to only business transactions in the business account.
- Use decent descriptions in the reference when doing internet payments, for example, instead of just "stationery" put "Waltons stationery" and instead of just “Incredible Connection”, add the item description – it is important to know what you purchased there: was it just cables or a computer? The clearer your bank statement, the easier it is for everybody.
- Keep all your slips. One of the easiest filing methods to assist your bookkeeper is to print your monthly bank statement and attach all the relevant receipts, slips, invoices, etc. pertaining to that month.
- Keep a record of all the cash you have spent on your business (your petty cash Excel sheet serves as a bank statement for a bookkeeper) and use the same method of filing as above.
- Jot down notes of when you use your personal money to pay for business expenses or any questions that pop up for your bookkeeper. It’s easy to forget so it’s always good to have things down in writing.
Final words of wisdom from MoreCore’s Cindy Evan-Finney, “All the above will save an enormous amount of time in getting your financials and books in order. Remember, the more time you save your bookkeeper, the less you will end up paying.”
Author: Nicky Grandin