When running your own business, you must constantly be on top of your numbers to ensure the smooth running of your business. From expenses, profits and other associated costs such as insurance, admin and utilities there are a lot of numbers and transactions that you must be fully aware of.  The slightest discrepancy could have drastic consequences further down the line and in the worst-case scenario, could lead to the closure of your small business.
It’s not the most exciting of topics, but by having some basic tools and processes in place, it will make a world of difference when it comes to your company’s accounting. We’ve given you the rundown of what recommended accounting tools and best practise tips are available for small businesses. 

Sort out your finances

At some point or another, you would have probably had to use your own finances to help your business either to get off the ground or to help fund new assets. It is highly recommended that you separate your personal and business finances.
As a business owner you will have to manage the financial side of the business yourself so it vital that you open up a new separate business bank account to improve your financial organisation. If nothing else, do it for your sanity – imagine having to go through everything single bank statement to find a business-related expense.  The other added benefit of this is that a business account or business credit card will reduce the chances of you getting into debt.

Cash flow

A good way to monitor your company’s revenue and overheads is to monitor cash flow. Cash flows show the movement of money that comes in and out of your business – usually it tracks revenue and your overheads and lets you see how this balances out. Ideally, you’ll be having a ‘positive cash flow’ where your company is generating more rev with little expenditure. 
Don’t be disheartened if you see there are low levels of return, as the point of using a cash flow is not to help generate rev but to provide a level of insight into how well your business is managing and where you can adjust even out the flow if you need to.

Accounting software

It’s also worthwhile looking into some accounting software for small businesses to help make things a bit easier for you when it comes to managing your accounts.  There are several accounting software options available each focusing on either business type or invoices and VAT management:
·         QuickBooks is great for invoice management and provides you with a dashboard to help you keep on top of your accounting.
·         Cloud-based option XERO is great for providing shared access to your accounts from several devices and comes with cash flow functionality.
·         KashFlow works with HMRC, and they also have an app for Android and iOS which will allow you to send invoices while you’re on the go.
Many of us find it daunting to get involved with the financial side of our businesses, but there is a lot of support out there to help you if you need it.