How can bookkeepers help grow your business

Are you a business owner struggling to keep up with your financial records? Many business owners believe bookkeeping is just about recording numbers, but it’s actually a powerful tool for business growth.

A professional bookkeeper can provide financial clarity, organisation, and insights that will help you make better decisions, improve cash flow, and ultimately grow your business.

Here’s how hiring a bookkeeper can support your business success.

Gain control over your cash flow:

Cash flow is the lifeblood of any business, and without proper tracking, it’s easy to run into financial trouble. A small business bookkeeper ensures:

• Your income and expenses are accurately recorded;
• You always know where your business finances stand
• You can plan for future expenses and avoid cash shortages

When your business accounting is up to date, you can make data driven decisions with confidence.

Identify cost saving opportunities:

Are you overspending without realising it? Many business owners lose money on unnecessary costs without even knowing. A professional bookkeeper can help you:

• Spot unnecessary expenses or overpayments
• Reduce costs by analysing spending patterns
• Ensure you’re getting the best value from suppliers

Bookkeeping services help you cut waste, increase profits, and improve financial stability.

Keep your business finances organised:

Messy books lead to stress, confusion, and financial mistakes. A bookkeeping expert keeps everything organised, so you:

• Know exactly how much your business is earning and spending
• Never lose track of unpaid invoices or overdue payments
• Have accurate financial records for strategic decision making

With an efficient bookkeeping system, you can focus on business growth instead of financial stress.

Prepare for business growth and scaling:

Thinking about expanding? Whether you’re hiring more employees, investing in new tools, or launching a new product, scaling a business requires financial planning. A bookkeeper helps you:

• Determine if your revenue can support business expansion
• Plan budgets to allocate resources efficiently
• Build a strong financial foundation for long-term success

Growth requires stability, and outsourcing bookkeeping ensures your finances are structured for success.

Save time and boost productivity:

As a business owner, your time is valuable. Instead of spending hours on bookkeeping and financial management, why not let a professional handle it? With a bookkeeper, you can:

• Spend more time on sales and client relationships
• Focus on scaling your small business
• Reduce stress and avoid costly financial mistakes

By hiring a bookkeeper, you’re investing in your business’s efficiency and profitability.

Looking for professional bookkeeping services?

At Cactus Bookkeeping, we specialise in helping businesses stay financially organised and on track for success. We are now accepting new clients from April 2025!

Contact us today to book your spot and take control of your finances.

End of financial year preparation: A guide for business owners

As the end of the financial year (EOFY) approaches, business owners should take the time to review their financial records, reconcile accounts, and prepare for the year ahead. Staying organised ensures you have a clear understanding of your business’s financial position and allows you to make informed decisions for growth.

Here’s a structured guide to help you get your business finances in order before the financial year closes.

Review and reconcile your financial records:

Accurate financial records are essential for understanding your business’s performance. As the EOFY nears, take the time to:

• Ensure all income and expenses are recorded correctly
• Reconcile bank statements with business transactions
• Address any discrepancies to maintain accurate financial data

Keeping well organised records helps with reporting, forecasting, and setting financial goals for the next year.

Follow up on outstanding invoices:

Unpaid invoices can impact cash flow and business stability. Before the year ends, make sure to:

• Review any outstanding customer payments
• Send reminders for overdue invoices
• Update your records to reflect payments received

A proactive approach to accounts receivable helps maintain a healthy cash flow and ensures a smoother transition into the new financial year.

Organise and review business expenses:

Tracking expenses efficiently allows business owners to manage costs effectively. Ensure that:

• All receipts and invoices are stored and categorised
• Recurring expenses, such as subscriptions and operational costs, are reviewed
• Any unnecessary spending is identified for potential cost-saving opportunities

Regularly reviewing expenses provides insight into spending patterns and helps you adjust to improve profitability.

 Assess cash flow and financial planning:

A strong cash flow strategy is key to sustaining and growing a business. As the financial year closes, take time to:

• Analyse income and expenditure trends
• Identify opportunities to optimize cash flow
• Develop a financial plan for the next 12 months

Understanding how money moves through your business allows for better decision making and financial stability in the long term.

Back up financial data and reports:

Maintaining secure and accessible financial records is a best practice for any business.

Ensure that:

• Digital copies of receipts, invoices, and financial reports are backed up
• Data is securely stored in cloud-based accounting software or external storage
• Records are easily accessible for future reference

A well-maintained financial record system simplifies reporting and ensures that historical data is readily available when needed.

Seek professional support for financial organisation:

Preparing for the end of the financial year can be time consuming, and ensuring financial accuracy is crucial. A bookkeeper can assist with:

• Keeping your financial records well organised
• Providing insights into cash flow and spending patterns
• Helping you establish better financial processes for the future

If you’re looking for a professional bookkeeping service to help manage your financial records, Cactus Bookkeeping is accepting new clients from April 2025.

Get in touch to ensure your business is financially organised for the year ahead.

Enter the new financial year with confidence and a strong financial foundation.

5 Tips to Help Manage Cash Flow in Your Business

Managing cash flow is essential to keeping a business healthy. Whether you’re just starting out or running an established company, here are five key tips to maintain a steady cash flow and prepare for any financial challenges that come your way. 

1. Use Cash Flow Software for Real-Time Monitoring

Leveraging accounting software like Sage, Xero, or QuickBooks makes tracking cash flow easier and more accurate. These tools allow you to access real-time data on income and expenses, generate cash flow statements, and set alerts for low balances or overdue invoices. Many of these platforms also integrate with banking and invoicing apps, offering a seamless way to stay on top of cash flow. With automated insights, you’ll have a clear picture of your financial health at all times. 

2. Set Clear Payment Terms

Establish clear payment terms with your clients from the start. Consider setting shorter terms or discounts for early payments to encourage faster cash inflows. This can help reduce waiting periods and bring cash in sooner. 

3. Manage Expenses Wisely

Prioritise necessary expenses and trim unnecessary spending. Regularly review expenses to identify areas where you can cut costs, which can improve your cash flow immediately. Even small reductions can add up over time, enhancing your financial stability. 

4. Use Forecasting for Better Planning

Cash flow forecasting helps you anticipate upcoming cash needs. By estimating future inflows and outflows, you can prepare for slow periods or plan for major expenses. A forecast gives you the information you need to make proactive decisions. 

5. Build a Cash Reserve

Whenever possible, set aside cash reserves to help you cover unexpected expenses or downturns. Having a buffer allows you to maintain operations smoothly, even if cash inflows slow down temporarily.

 Effective cash flow management ensures your business can meet financial obligations while investing in growth. If you need my help, don’t hesitate to reach out!

What is the Difference Between a Pro-Forma Invoice and an Invoice?

Most of the time, you will receive an invoice when you have paid for goods or services. This invoice provides confirmation of the specified goods or services and is to be included in your business accounts, enabling you to claim VAT if applicable.

However, some businesses may issue a pro-forma invoice to receive payment prior to supplying goods or services.

What Does Pro-Forma Mean for the Customer?

Suppliers may raise a pro-forma invoice for several reasons:

• You are a new customer to the supplier.
• Concerns over creditworthiness.
• Supplier requires a commitment for manufacturing or purchasing products by receiving a payment.
• A payment in advance is required due to the costs of the goods being supplied.

Pro-forma invoices look similar to regular invoices and will generally include supplier and customer information, date of issue, goods and services to be provided, price, payment details, and terms and conditions. However, the pro-forma invoice should contain the statement “This is not a VAT invoice.”

Pro-Forma Points to Note

• A pro-forma invoice is not a legally binding document.
• There should be no invoice number listed.
• It should not be included in your business accounts.
• No VAT should be claimed.

Once the pro-forma invoice has been paid or the goods supplied, the supplier should provide the customer with a proper VAT invoice within 30 days.

Five Self-Assessment expenses you didn’t know you could claim

Your Self-Assessment reports your taxable profit to HMRC, so it’s important to ensure you have claimed for all your relevant tax allowable costs incurred in running your business. Below are five costs commonly missed by business owners:

Work Clothing

Now this is one of those things that causes a lot of confusion for business owners, so pay attention! You are permitted to claim specific items of clothing for your business, including uniforms, specialist clothing such as overalls or steel capped safety boots, or costumes (for actors and entertainers if relevant to your business). Be aware, you cannot claim for the regular clothing you wear for work, as this could also be used for personal use.

Bank Charges

If you incur bank and credit card charges, interest, or overdraft fees, these are treated as a business expense. Note these should be entered “exempt” of VAT. If you are using cash basis accounting, you can only claim up to £500.00.

Training Costs

As long as the training is directly related to the business and improves or refreshes skills, the whole cost of the training (including the cost of the course, travel, and accommodation) can be claimed. You cannot claim for training courses that help you start a new business or expand your existing business into a new area that is not directly related to what you do.

Subscriptions

Subscriptions to trade journals or professional membership fees that relate to your job are permitted for you or an employee.

Unpaid Invoices

HMRC allows you to claim for any amount of money included in your turnover that you are not going to receive. This is known as a “bad debt,” and the only real prerequisite for including it in your expenses is that you must be sure that these invoices will never be recovered from a customer in the future.

Guide to record keeping for new businesses

Guide to Record Keeping for New Businesses

Whether you have been planning this for a while or your hobby has become your business (remember, any income more than £1,000 per tax year must be declared and may be taxable), you’ve taken the leap, and your passion has become your sole focus in setting up your business.

But if there’s one thing you can’t afford to ignore, its good record keeping. It might sound boring, but trust me, it’s super important.

Why Record Keeping Matters

• Financial Management
• Legal Compliance
• Tax Preparation
• Performance Monitoring

Key Records to Maintain

Money Matters: Keep all your invoices, receipts, bank statements, payroll records, and tax documents.

Customer and Supplier Details: Maintain a database of your customers and suppliers, including their contact info and transaction history. This can help with marketing and managing relationships.

Legal Stuff: Keep copies of your business registration, licenses, permits, tax filings, and any contracts. These are crucial for compliance and if any legal issues pop up.

Employee Info: Store employment contracts, performance reviews, payroll details, and tax forms. This is important for legal reasons and managing your team.

How to Keep Track of it All

My advice, no matter the size of your business (this includes sole traders), is to make use of technology and apps to your advantage with cloud accounting software. Using software will enable you to keep most of your business paperwork in one place. For other documents such as leases, licenses, etc., sign up for cloud storage to keep them all together, password and encryption protected.

My Top Tips

• Before considering software, speak to other business owners you know to see what they are using and the benefits it offers.
• Contact a qualified bookkeeper, have a chat about your business, and ask for recommendations.
• Don’t put it off – start as soon as you make your first purchase; it doesn’t take long to accrue a mountain of paperwork.
• If this side of running your business is not for you, contact a qualified bookkeeper and have a chat about outsourcing.

So, take a deep breath, get organised, and you’ll thank yourself later!