Money Management Skills You Need When You Have No Accountant
Many small business owners, and even sole traders, bloggers and freelancers, hire an accountant to keep track of their invoices and receipts. The accountant then files their tax return at the end of the tax year.
It’s not uncommon for people that don’t even earn enough to pay taxes to hire an accountant because they are overwhelmed by what they need to do.
All the numbers and deadlines can be worrisome and you could get it wrong by facing an expensive fine.
They see other people stressing out about the deadline and just assume that dealing with accounts and finance is complicated and that they’d be better off getting help.
For bigger businesses, an accountant can be crucial. Even if your business is small & you can afford to hire an accountant to look over your books, it can be worth it to save you time and reduce your stress levels.
But, in truth, you, even those with no experience at all, can still manage accounts while your businesses are small.
Here are some tips to help you to brave your own accounts.
1. Stick to Your System
We all work in different ways and earn money in different ways. By all means, read about what would work for your system. Seek advice from people with similar systems and ask for help, but if you’ve got a system that works, stick with it.
Make changes only when they are necessary and commit to whatever you decide. Make time for admin and accounts, whatever else happens.
2. Set Aside Time Each Day
Spend a little time each day, or at the end of the week to fill in your spreadsheet and file receipts and invoices.
If you earn from a variety of different sources or have a lot of clients, you might find it easier to fill things in as soon as money or invoices come in.
You could also spend ten minutes before you leave the office at the end of the day with your accounts. If you receive payments once a week, do it then.
3. Get Organised
The key to managing your accounts is organization. You don’t need expensive equipment. Money management is as simple as ABC.
Don’t try to overcomplicate things. Organize things and keep it simple.
4. Take a Course
If you are really struggling or it all looks like a different language, or you just want to gain a greater understanding of finance and accounting, why not take a Xero certification course.
This could help you both now and in the future, and even give you greater career options as you move forward.
5. Ask for Help and Advice
If you get stuck, ask for help. Free financial advice to build your money management skills is always available.
You might have a friend or family member that’s happy to take a look for you. You just have to ask.
6. File Early
Don’t make the mistake of waiting until the day before the deadline to file your tax return.
Do it as soon as you can. Then, you’ve got longer to pay it, but also time to make corrections and updates if you realize that you have made a mistake.
I hope this helps you to start!