Running a business can be an exciting and profitable venture, but it comes with its challenges. One of the most significant is maintaining accurate and professional financial records. Accounting isn’t something you can ignore—once you start taking on paying customers, HMRC expects you to keep track of everything, and the penalties for getting it wrong can be steep.

However, once you accept that bookkeeping is an essential part of doing business, it no longer feels like a burden. In fact, keeping an eye on your finances can be rewarding, offering insights into your business’s performance and revealing opportunities to increase profits.

Read on for some of the best bookkeeping tips and tricks to help self-employed individuals and small businesses stay on top of their finances.

The benefits of successful bookkeeping for your small business

For small business owners, self-bookkeeping is an essential skill. While hiring a bookkeeper can be helpful, many entrepreneurs prefer to handle their finances independently. With the right bookkeeping advice, managing your finances doesn’t have to feel overwhelming. Learning basic bookkeeping for self-employed individuals can save you time, reduce stress, and help you make informed financial decisions. If you’ve ever wondered whether you could manage it on your own, the answer lies in developing a solid system that works for you.

Although bookkeeping can be time-consuming, with the right approach, it brings many benefits. Here are just a few reasons why maintaining an organised system is so valuable:

1. Less Stress – Keeping your books in order helps you stay calm, especially when it comes to taxes or other financial concerns. No more last-minute scrambling or anxiety about missing deadlines.

2. Peace of Mind – If you're self-employed or running a small business, you may not have the budget to hire an accountant year-round. With an organised system, you can approach tax season or other financial deadlines with confidence, knowing your records are accurate and up-to-date.

3. More Time for Your Business – Efficient bookkeeping means less time spent on administrative tasks, freeing you up to focus on what matters most—growing and running your business.

Effective bookkeeping is about more than just recording transactions. It’s about creating a system that supports your financial health. Tracking income and expenses, using the right tools, and developing consistent habits are key to managing your finances successfully. With the right approach, even small business owners without a background in accounting can keep their books in order. It's a vital task as what happens if you don't do bookkeeping, will result in chaos for your small business.

While bookkeeping can seem daunting, it doesn’t have to be difficult. Many small business owners struggle with organisation, which can lead to a range of problems, from missing tax deductions to failing to file accurate tax returns. A good understanding of your financial records is vital for the health of your business. Bookkeeping involves tracking every financial transaction your business makes, whether manually, via spreadsheets, or using software. Many find that using bookkeeping software simplifies the process and improves efficiency, but it’s important to choose the right software for your business’s needs.

With a variety of software solutions available, it’s important to choose one that fits your business. Some software offers comprehensive tools like payroll and inventory management, while others focus solely on basic bookkeeping. As a small business owner, selecting the right option can save you time and help you stay organised.

Bookkeeping is often one of the most time-consuming tasks for small business owners. But with the right systems in place, it becomes far easier. In the next section, we’ll explore some of the best ways small business owners can streamline their accounting practices and stay compliant with all relevant regulations.

Bookkeeping tip #1: Keep your business finances separate from personal ones

It’s tempting to run everything for the business from a personal bank account, but in the long run it makes things more complicated. Eventually you’ll have to weed out your business transactions anyway, so opening a business account from the beginning keeps you more organised.

For the first year or so a business account won’t cost you extra, since most banks offer a grace period before charging for transactions.  However, if you are self-employed and not a limited company then there's no need to pay for a business account.  You can simply open another current account in your own name.

£50 free cash with Tide business account

If you are interested in a business account though, and you have a limited business or are self-employed, then you can get £50 free cash for signing up to the Tide business account and for spending at least £500 in the first three months.  Enter referral code K754KJ when signing up to qualify. 

(Find more free money offers on my website just like this)

Bookkeeping tip #2: Have a system

When you’ve got a system, you know what needs doing and when. You don’t spend your precious time head-scratching or wondering where to start. Your exact system isn’t as important as having one in the first place.

1.You could keep a notebook and simply jot down your transactions, including all your purchases, expenses and money earned. Cross-reference your figures to receipts (more on those later) and bank statements, and as long as your business is relatively straightforward, you don’t need much more.

2. Use software like Excel or Google Sheets if you enjoy computer work and understand how these programmes function. There are plenty of guidance websites that will give you an idea of how to set up your pages, but if you’re really stumped a bookkeeper or an accountant could give you some advice on how to keep it efficient and simple.

3. Online accounting software such as Quickbooks or FreeAgent charge a monthly subscription, but you can organise a bank feed so your transactions are automatically imported. Some will also generate reports you can use in your tax return.

Bookkeeping Tip #3: Make it a Daily Habit

One of the best bookkeeping tips for small businesses is to turn it into a daily routine. By spending just 10–15 minutes each day recording transactions, you can avoid the stress of last-minute financial catch-ups. Small bookkeeping hacks like scheduling a specific time daily or automating parts of the process through bookkeeping software make this even easier.

Daily bookkeeping also lets you spot inconsistencies or errors in real-time, saving you from potential headaches later. This simple yet effective approach is a top bookkeeping tip for staying on top of your accounts while freeing up time to focus on growing your business.

Bookkeeping tip #4: Organise your receipts

You need to hang onto all your records, including receipts and invoices for money coming in and going out. Avoid tossing everything in a box if you possibly can.

Organised bookkeeping hacks and methods for storing and labelling receipts include:

• Start a folder for each new month. Inside the folder keep all your receipts and invoices, statements and any other documentation. You could staple your receipts to a sheet of paper to keep them all in order.  This is a great idea if you have a lot of paper receipts each month.
  
  
• Scan or photograph paper receipts then keep the digital files in a folder on your computer or in the cloud. Make sure you have a naming convention that’s logical and clear so you don’t spend ages searching for a particular entry. HMRC will accept many digital records, but always check before you throw the paper copies away.
  
  
• Devise your own numbering system for receipts to make them easier to cross-reference. You don’t have to use the number the issuing company uses.  Maybe add the cell number from the transaction on your spreadsheet and the tax year to make it easy to find when needed.

Bookkeeping Tip #5: Explore Tools and Resources

If you’re wondering how to do bookkeeping for self-employed work efficiently, the right tools can make all the difference. Many self-employed individuals turn to affordable bookkeeping software like Wave, Xero, or QuickBooks for automation and ease of use. These tools are great for generating reports, tracking expenses, and even providing tax and accounting tips tailored to small businesses.

For those looking for basic bookkeeping for self-employed needs, free templates on platforms like Google Sheets can also serve as an excellent starting point. No matter your budget, there’s a solution to match your needs and help you simplify bookkeeping for small business success.

Bookkeeping tip #6: Get professional help when you need it

As the business grows so too do your accounting needs. It gets more complicated, for instance, if you’re also working for an employer and paying tax through PAYE at the same time, or when you take on staff or register for VAT. You may also want to claim a percentage of household utility bills against your tax liability, and need help to calculate what you can claim.

Or perhaps it's simply a task you do not enjoy, or maybe you don't understand it and would rather another person take care of this for you.  Professional accountancy help, whether a bookkeeper or accountant, can save you more than they cost, depending on your needs. And you’ll have the peace of mind knowing your accounts are up to date and professionally organised.  You'll also be able to reach out to these types of professionals for bookkeeping advice too, so they can be a handy contact to have even if you don't fully pass on all your accounting needs to them.

Hiring an accountant will help you to save on time and money in the long-run. Accountants can also help you with your taxes, payroll, and other tasks related to running a business. If you are self-employed or running a small business, hiring an accountant can be crucial for your success as your business grows.

Finding the Right Accounting Service for Your Business

If your business is growing and you’re facing challenges with managing your finances, it may be time to look for professional accounting help. Whether you're struggling with tax planning, bookkeeping, or financial reports, a reliable accountant can save you time and money in the long run.

It’s essential to find a company that suits your specific business needs, from general accounting to specialised services. A simple way to start is by exploring a List of Accounting Companies, where you can browse through a range of professionals ready to assist you.

It can be time-consuming enough to run a business and stay up to date with all the changes in your niche, let alone understand the ever-evolving world of tax and accountancy.  By hiring a professional accountant they will be up-to-date with all the changes that could affect your specific business, and be able to recommend what is best for you when it comes to taxes, allowable expenses and other tax-related issues.  They may even be a member of an accountancy organisation or network.  Accountancy organisation benefits include your accountant being up-to-date with the latest available accountancy software to streamline your bookkeeping tasks, being compliant with local laws, gaining up-to-date knowledge of the industry and any changes that could affect your business and networking with other professionals in their field; a lot of tasks that could take too much time for yourself as a small business owner.

Hiring an accountant will help you to save time, stress and energy on accounting tasks that you don't have the expertise for, such as:

• Keeping track of your income and expenses
• Dealing with tax issues
• Managing your company's finances
• Helping with payroll
• Completing your tax returns
• Saving money through their tax and expenses knowledge

Tax and accounting tips

When it comes to bookkeeping for small business owners, staying tax-ready is a top priority. Some of the best bookkeeping tips include keeping detailed records of all deductible expenses, setting aside a portion of your income for tax payments, and using software that can generate HMRC-compliant reports. These tax and accounting tips are especially important if you’re wondering how to do self-employed bookkeeping without a dedicated accountant.

For self-employed individuals, claiming allowable expenses like a portion of household bills, travel costs, or equipment purchases can significantly reduce tax liability. With the right bookkeeping hacks, you can make tax season less stressful and even find opportunities to save money.

While these tax tips can help simplify the process for most people, it’s important to remember that tax laws can be complex and vary depending on your situation. For anything beyond basic expenses, it's always a good idea to consult with a tax professional. They can provide tailored advice, ensure you comply with the latest regulations, and potentially help you maximise your tax savings.

Final word

With these small business bookkeeping tips, you can keep your accounting records up-to-date and on top of your finances to set your business up for success in the long run.  If you don't have time to do your bookkeeper tasks yourself, outsourcing the task to a professional can free up your time and ensure your finances are in expert hands, allowing you to focus on growing your business.

Bookkeeping tip: 

Consistency is the key to effective bookkeeping. Whether you spend a few minutes daily or dedicate a block of time weekly, staying on top of your records will pay off in the long run. Use these small business bookkeeping tips to build a system that works for you, and remember—when in doubt, seek help with bookkeeping to keep your finances in check.

---

Key Points: Article Summary

This article provides valuable tips for small business owners and self-employed individuals looking to stay on top of their bookkeeping tasks. Here’s a summary of the key points:

1. Separate Personal and Business Finances

• Avoid mixing personal and business accounts. It simplifies the process of tracking business transactions and reduces stress when managing finances. For self-employed individuals, using a dedicated business account or a separate personal account can help keep finances organised.

2. Develop a System

• Having a reliable system for recording transactions makes bookkeeping easier. Whether you use paper, spreadsheets, or bookkeeping software, consistency is key. Choose a system that fits your business's complexity and your comfort level with technology.

3. Make Bookkeeping a Daily Habit

• Spend a few minutes each day recording your transactions. This avoids the stress of last-minute catch-ups and helps spot discrepancies early on. Creating a routine ensures your finances are always up to date.

4. Organise Your Receipts

• Keep all receipts and invoices organised. You can store them physically or digitally. Digital storage (e.g., scanning receipts) can make your records more accessible and easier to cross-reference.

5. Use Tools and Resources

• Take advantage of bookkeeping tools like QuickBooks, FreeAgent, or Wave to automate some processes. If you’re just starting out, free templates on platforms like Google Sheets can be an excellent way to get organised.

6. Seek Professional Help When Needed

• As your business grows, consider hiring a professional accountant or bookkeeper. They can help with tax filings, payroll, and complex financial tasks, saving you time and reducing the risk of errors.

Additional Tips:

• Consistency is Key: Regularly update your books, whether daily or weekly. The more consistent you are, the easier it will be to maintain order.
• Tax and Accounting Tips: Stay on top of deductible expenses and use software that helps with HMRC-compliant reports to make tax season less stressful.

By following these tips, small business owners can stay organised and stress-free when it comes to bookkeeping, ultimately setting their business up for long-term success.

---

 

More self-employed + small business blog posts:

• 6 handy tax tips for bloggers
• Running a home based business tips
• How to deal with unpaid invoices when self-employed
• How to be tax ready when self employed
• 3 important things to consider when starting a self-employed business
• The ultimate marketing strategy to give your business a boost
• 6 ways being online can improve your small business
• 7 tips for a successful small business
• Be tax ready for your self-assessment with these tips for the self-employed!
• Easy ways to attract more people to your small business
• Is your home really the right location for your business?
• 44 ways to market your small business
• Ways to cut costs in your business
• 6 cheap ways to market your small business
• The first 5 things a twitter business should do
• 5 essential steps to starting your own at-home business
• How blogger + influencer marketing benefits your business
• How to take card payments in a mobile business

Want to make more money online, at home or need a side hustle?

Find loads of ways to make extra money at home on my blog, as well as my favourite side hustle in my matched betting blog!

To get started, you can make money online in the UK with these 60 ways I’ve tried and tested.  

Follow these steps to make £1000 in one month at home.  

Or, if you’re short on time, try these methods to make money in one hour.

Love sharing great offers with friends?  Make extra cash with these refer-a-friend schemes.

 

Originally posted in 2018 and updated in 2022 and 2024.