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In the latest of our careers posts, today we are tackling managing your accounts as a freelance mum and bookkeeping can be one of the most confusing and time-consuming corners of your business. So many times it tends to get pushed aside for another day! Usually, we leave it until the end of the financial year when we end up dedicating countless hours trying to make sense of everything and becoming a stressed-out wreck!
If you are not an expert, you are going to end up spending even more time correcting your mistakes than recording the profits! Bookkeeping is not something that you should see as an optional activity if you are a self-employed mum, as your books in good order is vital for running your own business.
Keep Personal/Business Accounts Separate
When you set a focus on your accounting, it is imperative that you separate files for both personal and business accounts even if you’re only working around your child’s naps. You still need to treat it as a business and having individual bank accounts provides you with the ability to determine your profit and loss situation in a much quicker fashion come tax time in January.
With this process, you can keep your expenses and income clear, and in creating a standard bookkeeping process you are able to present all receipts and payments in easy formats to read. Be sure to label each document with the person’s name who received it, along with the date and amount.
Bring in a Pro
The value of hiring bookkeeping services in Manchester and across the country (either done in person or online) can take away the hassle and provide a more efficient system to this area of the business. Many of us already time-stretched around childcare so it makes sense to outsource accounting to somebody who knows what they’re doing!
Obviously, the biggest benefit of this is the elimination of errors of missed calculations or data entered incorrectly. A professional bookkeeper’s job is to ensure all financial records are not just updated correctly but also presented in an easy to read record that is easier for you and your accountant. Many pro bookkeepers utilise an electronic system that eliminates the need for paper and stores everything in a digital format which can be easily downloaded, so there’s no need to stress about paper receipts!
Business Planning
Having all of your bookkeeping figures easily accessible and in order allows for greater business planning in moving forward and to grow your freelance career.
Structured and correct bookkeeping provides cash flow forecasts that help in reviewing all plans within the business. In some instances, you may come across instances where cash is tight and better financial plans need to be put together, or you may look to expand which is where reports will enable you to determine the smartest timeframe to undertake it.
Having financial figures in check also helps you calculate the taxes that will come along and helps to ensure you have enough money for them which is something you need to remeber to put aside.
Small business bookkeeping solutions are the difference between how successful and streamlined your business can be, so if you’re thinking of starting a freelance career around your children, it’s definitely worth investing in one.