When you start a business you will often enter unknown territory and you may experience a sense of uneasiness because you may not be in control of the amount of sales and subsequent levels of income you receive and as a consequence the ability to meet your financial and other life commitments. This situation is often made worse if you are also not in control of your new business expenditure. But this is an area you can take more control over and experience a great sense of empowerment.
Here are some tips to help manage cash flow better:
1 Note expenses.
2 Keep receipts as evidence of expenditure.
3 Get appropriate software to total your income and expenditure and produce accounts.
4 Ask accountant how you can work together.
5 It is quite common to make a loss in the first two years but if you are on track to make any profits; put aside a small sum each month to cover the pending tax bill at the end of the year.
The mistake that most entrepreneurs make is that they underestimate what they have spent because despite the good advice we fail to do the above. This will mean that you may miss some tax right offs and end up paying more tax than
you should have. So if you know that you will end up not doing any of the above can we suggest you take just 1bookkeep tip
Buy a small pocket diary and keep it with you at all times. When you incur a business expense make a note of it immediately in the top right hand corner so that as you flick through the pages at the end of the year and quickly identify these items.
Alternatively, add expenditure details to a notes page in your mobile phone.
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