In a company, all income and all expenses must be recorded. A company that is listed in the commercial register, e.g. a GmbH, is obliged to keep double bookkeeping. Sole proprietorships that do not have a commercial status, on the other hand, are generally not obliged to keep double-entry bookkeeping. This usually also applies to all freelancers and small business owners. All they have to do is record the income and expenses. This can be done in the classic way with pen and paper or with software. This quality of accountants Bangor offers the best option.
Whichever variant you choose, it is always very important to bring order to your system right from the start. Otherwise it can be very difficult at the end of the year to correctly compare and evaluate profits and losses. However, since most entrepreneurs are not always familiar with bookkeeping and therefore do not trust themselves to do it, an external accountant is hired for this.
Alternatively, you can make do with accounting software. This enables founders with little previous knowledge to do the bookkeeping themselves. The range on the market is now very large and quite confusing. The scope of this software is completely sufficient for our purposes and probably also suitable for other small to medium-sized companies.
Do the Accounting Yourself Or Hand It Over?
When you set up the company, decide whether you want to hand over the bookkeeping to external accountants or tax advisors or whether you want to do it yourself. External providers are usually expensive and only pay off when they reach a certain turnover limit. If you opt for the cheaper Do-It-Yourself option, use accounting software that best suits your company. It should be software that is not too overloaded in terms of functions, but still offers enough to meet the legal requirements. So you can take the finances of your company into your own hands and keep control. So you can choose accountant north wales there too.
Above all, checks the invoices that have been received, as otherwise there could be difficulties with the input tax deduction. Received (and issued) invoices should be error-free. Every invoice should contain at least the following elements:
- Name and address of the company and of the customer or service recipient
- Date of invoice
- Invoice number (unique)
- Tax number or VAT ID
- Time of service provision and its remuneration
Small Business Regulation
When founding the company, check carefully whether you want to take advantage of the small business regulation according to the Sales Tax Act. This regulation can only be used under certain conditions and makes bookkeeping easier. A tax advisor can provide information here. If you should decide to change after a few years, this can be difficult.
If you conduct cash transactions, it is advisable to keep a cash book in order to precisely document all business transactions.
Documentation of Business Transactions
You need to have records all business transactions along with invoices and receipts. Pay special attention to the following topics:
- Wage payments
- Incoming and outgoing goods
Stick to deadlines, especially the deadlines of offices and creditors. A lot of missed appointments can result in high additional costs. One of the easiest ways to save money is to avoid fees from reminders and late surcharges.