As it nears the end of the year all of our thoughts turn that all important new years resolution:

- making sure that next years books are much better than this years !

No ? Well maybe that thought is it the back of our minds (somewhere) behind the mad panic of getting through the Christmas period shopping, going out, buying presents ........................................................

If you run a small business, the majority of you will have a 31st December year end, as that ties to the tax year end. Take the opportunity of the cut off between each years books and think about how you can help your accountant. Remember that the more you help them, the less time they spend on bashing out your numbers for the tax man, and the more time they have to give you advice.

The number one lesson .................................................................

_The number one lesson .................................................................is to KISS (Keep it Simple)

Lesson 1 | Business Bank Account

This is the first thing that your accountant will look at, and tie to your books. Your books should set out all of your business income and business expenses, so use it only for business. Keep all of your personal transactions separate by using a personal account, and top that up with a transfer from your business account. Why pay your accountant to reconcile all of your personal expenses, when it could be just one payment a month.

If you don't have a separate business bank account then get one now for the new year. Some banks even offer charge free periods for new accounts.

Lesson 2 | Turnover and expenses

Give customers your business bank details (make sure they are on all your invoices) and ask them to pay straight to your bank. Most banks credit amounts of less than £10,000 within 2 hours, and there are no more 'cheque's in the post' excuses from customers.

Pay all your suppliers directly into their bank accounts (no more trying to remember what you forgot to write on the cheque stubb come accounts time) and get a debit card to pay for small amounts. Avoid petty cash, as its one more thing for your accountant to check, and you pull your hair out when its short.

If you are not sure whether a meal, travel or office cost is a business expenses and so don't know which account to pay it from then give your accountant a call and ask. For the best value for your fees you should be getting their advice, and if you use our services you don't need to worry about getting a bill for every call.

Lesson 3 | Bookkeeping Records

I have mentioned it before, and its such a good lesson so here it is again .....................

Get the last set of accounts out, look at the expenses in the Profit and Loss Account, and check back to your records.

There will be a maximum of 10 to 15 expenses listed, and whether you keep you books in a ledger, a desktop package (our favourite is Quickbooks) or in the cloud do you really need 3 times as many expense headings as those in your accounts. Chances are that the amounts spent on tea and coffee are not all posted to 'Staff refreshment expenses' anyway, and the £250 figure for the year is wrong.

Keep it simple and have a limited amount of expense categories which tie in with your accounts and make sure that you (and your bookkeeper if you have one) know definitely what type of payments are posted where. Just because it came from Normans doesn't mean that its a cost of sale ! If is wood for your own premises it could be 'Repairs and Renewals' or 'Additons to Fixed Assets'

And yes, if in doubt ask, or at the very least point it out when you give your accountant your books.