Get a basic understanding of your accounts – know what you can claim against tax and how to work out if you are making any money (income – costs = profit if positive or loss if negative)
Have up to date figures at your fingertips – so that you can make key business decisions and know if things are going in the right direction
Put money aside for tax – you need to make sure that you can cover your tax liability when it becomes due; so budget for tax as you go.
Keep control of your cash – avoid giving extended credit terms to customers. Don’t be afraid of asking for deposits and payments on account to minimise your cash flow risk
Have a simple system – it can be a spreadsheet, an App or an inexpensive Cloud Accounting system. Make sure that you keep receipts and invoices either electronically or in paper files.