1. Keep your business bank account separate from your personal bank account. Buying stock on your own debit card can cause hours of cross checking for you or your accountant.
2. Keep all receipts and bank statements. Try to ‘batch’ them in to relevant months. This will make it easier at the end of the year to complete each month.
3. If you have a computer, create a simple spreadsheet showing basic purchases and sales, dates and amounts and when paid. This will help the accountant pinpoint the information quickly.
4. Regularly check your paperwork to ensure everyone has paid you and you have paid others.
5. And finally, ensure that you set aside a good percentage of your profit from sales to ensure that you have the funds to pay your tax liability at the end of the year. Never treat it as a savings pot to dip in to though!
David Carney MAAT MIP