Running a business is difficult enough without late-night number crunching and mystery receipts stuffed in pockets, bags and glove compartments. But good bookkeeping isn’t just about staying organised for the sake of it – it helps you understand your business, make better decisions and avoid nasty surprises.
The good news? Bookkeeping doesn’t have to be complicated. A few simple habits can make a huge difference.
Here are our top 10 bookkeeping tips to keep your business finances on track.
- Keep business and personal spending separate
It sounds obvious, but it’s one of the most common issues we see.
Use a dedicated business bank account and card for all business transactions. It makes your bookkeeping cleaner, quicker and far less stressful when it comes to VAT returns, tax time or year end.
- Record transactions little and often
Don’t wait until the end of the month (or worse, the end of the year).
Spending 10-15 minutes a week updating your books is far easier than trying to remember what that £47.32 payment was for six months later.
- Use cloud accounting software
Tools like Xero, QuickBooks, or Sage can automate huge chunks of your small business bookkeeping.
Bank feeds, automatic invoice matching and receipt capture apps save hours and reduce errors. Plus, you can check your numbers from anywhere, anytime.
- Stay on top of your receipts
Paper receipts fade, get lost and end up in mysterious piles.
Snap photos of receipts as you get them and attach them to the transaction in your software. It keeps everything tidy and HMRC-ready if you’re ever asked for evidence.
- Reconcile your bank regularly
Bank reconciliation simply means matching what’s in your bookkeeping to what’s actually gone through your bank.
Doing this weekly helps you spot missing payments, duplicate entries or unexpected charges before they become bigger problems.
- Send invoices promptly (and chase politely)
The sooner you invoice, the sooner you get paid.
Add clear payment terms, and don’t be afraid to send friendly reminders. Good bookkeeping advice isn’t just about recording money; it’s about helping cash flow in at the right time.
- Know what you owe in tax
VAT, PAYE, corporation tax, self-assessment… they all creep up quickly.
Set aside money for tax as you go so deadlines don’t turn into panic. Many owners move a percentage of each payment into a separate “tax pot” account.
- Review your numbers monthly
Take a little time each month to look at your profit and loss and cashflow.
Ask simple questions:
- Are sales up or down?
- Are costs creeping higher?
- Is there enough cash in the bank?
Regular reviews turn bookkeeping from a chore into a useful business tool.
- Don’t ignore the small stuff
That forgotten subscription, the tiny bank fee, the old unpaid invoice – they all add up.
Good bookkeeping is about accuracy in the details, because those details affect your profit more than you might think.
- Ask for help when you need it
You don’t have to do it all alone.
A bookkeeper can tidy messy records, keep you compliant, show you how your business is really performing and even train you to do more yourself with confidence.
Sometimes the best bookkeeping tip is simply knowing when to hand it over.
Good bookkeeping isn’t about being perfect. It’s about being consistent.
Keep things organised, use the right tools, check your numbers regularly and get support when you need it. Do that, and your books won’t just keep HMRC happy – they’ll help you run a stronger and more profitable business.