Efficient organisation is an essential part of running a small business. Although completing vast amounts of paperwork may feel daunting, staying on top of vital documentation will help you in the long run.
This guide will detail the best ways to organise your accounting documents, ensuring your small business remains organised.
1. Create a Filing System
Separating your documents into categories can ensure you have better visibility and can locate each document easier when needed. The following records should be kept in logical categories, either by separating into folders (digitally or manually) or cabinets;
- Bank records
- Accounting records (accounts receivable and payable separated)
- Corporate records
- Employee records
- Tax records
- Permits and Licenses
- Stock/investment records
- Contracts
2. Keep Business and Personal Finances Separate
If you don’t already, having separate accounts for business and personal finances is essential for a streamlined view of your business expenses. Not only will this help your visibility, but it will ensure your tax auditor is viewing the correct materials.
3. Set Time Aside to Stay On Top of Documents
Your financial documents will need regular updating, with employee and accounting and bank records fluctuating weekly. Instead of waiting for a quarterly update, it’s best to dedicate some time per week to ensuring your accounting documents are updated. Although this may sound like a lot of work, it will save you much stress and time in the long run, as you can add recent expenses as they come in instead of adding hundreds later down the line.
4. Know Your Deadlines
A fundamental rule of organisation is to understand the timeframes you have. For example, knowing when your tax returns are due or when standing orders are expected is essential. Having this payment calendar sorted out will help reduce the chances of late payments, enforcing a healthy business cash flow.
Need Support With Business Accounting Documents? We Can Help
It can be overwhelming when faced with multiple business accounting documents, but we are here to ensure you have the support your small business needs to succeed. Get in touch with YBM today to learn how we can help.