Create an Excellent Filing System
File all documents in a well organised system so it’s easy to find any document that you require for the end of tax year. One method is to file sales invoices in numerical order.
File purchase invoices in date order (monthly tabs).
File bank statements and reconciliations in date order.
Hint : put the most recent document on top because it is much easier to open a file and place the latest document at the top instead of pushing wads of paper over the loops to get to the back.
Business vs Personal
Keep business and personal expenses separate; use two different bank accounts. Learn what expenses are deemed personal and what expenses can actually be claimed in the business accounts for tax purposes.
Personal expenses paid for with the business accounts should be put to the ‘Drawings” account.
If you are sorting out your year end paperwork now, and there are business expenses you paid for with you private account, you can give give the details to your tax accountant who will bring them into the business accounts.