BEST WAYS TO RECORD YOUR EXPENSES FOR YOUR ACCOUNTANT
PERSONAL TAX ACCOUNTANTS IN MANCHESTER
What are the best ways to record your expenses for your accountant? Read on...
Do you keep adding more receipts to that ever-growing pile of crumpled up paper? It was okay at first, it didn’t bother you much, but now the anxiety of it all is eating away at you from inside, as you know you’re going to have to sit down one day and sort through it all. You’ve been there before! You vowed never to do it to yourself again. But work gets in the way, family comes first, life happens! Hey, we get it! We’re human too, only it's our day job to complete business owners accounting tasks all day every day; unlike you. You have to complete a hard days graft and then come home and do accounting! Which is a whole new job in itself. For a small yearly fee, we offer personal tax services; from £150 per year we will complete your tax return and submit it, and all you have to do is provide us with your expenses and this blog will provide you tips on the best ways to record your expenses for your accountant.
Firstly, expenses are business costs that you pay for yourself personally, which your business them reimburses you. For example, you had to travel to London on a business trip so you paid for your train ticket to go to your meeting.
So now that we’ve cleared up what an expense is, here are the best ways to record your expenses for your accountant.
🔵 Record your expenses as soon as it happens. The train ticket example we just used, take a picture of your train ticket whilst you’re on the train and upload it to your digital accounting programme that you use with us, Xero. If you don’t use an online accounting platform, take a picture of the train ticket receipt and email it, message it etc.
🔵 Review your expenses weekly with basic bookkeeping. Check all outgoings on your account to ensure you have sent us the receipt. This will ensure you are keeping your finances in order and checking you haven’t missed any expenses that you should have sent to us.
🔵 If you don’t have online accounting software. Consider it. HMRC is encouraging us all to go digital and so you may feel relieved to know you no longer need that huge cardboard box filled with crumpled receipts. If you don’t want to use software, then you can always keep a folder on your computer for your receipts.
🔵 Remember to keep all expenses you pay for on your personal bank cards separate from expenses you pay for on your business bank cards. This is important because different tax is declared for personal and business expenses.
🔵 Try to keep your expenses categories consistent. For example, putting a ‘car parking ticket’ into ‘travel’ would make sense, but make sure you keep it there and not move it to something like ‘motor expenses’ the month after.
So there you have it. Some of the best ways to record your expenses for your accountant.
A lot of that may have seemed time consuming, doing your own bookkeeping, such as the setting up of the spreadsheet, registering for an accountancy platform and then logging expenses everyday… If you feel like you don’t have time for that then we can do your bookkeeping for you.
WE'RE PERSONAL TAX ACCOUNTANTS IN MANCHESTER - GET IN TOUCH FOR A FREE CONSULTATION
We’re here to provide you with the best accounting and financial support you need as business owner, especially so during the Coronavirus Pandemic.
Reach out to our professional and friendly team at Parker Whitwood Accountants in Manchester using the contact information below.