Here's how I established an effective record-keeping system
Michelle De Bruyne used an accountant to set up her limited company, AmHealthy, which markets a herbal nutrition programme. However, she decided to do her own bookkeeping. Good organisation, she says, has helped her track the progress of her business as well as look after her customers.
What I did
Devise a filing system
"It's very easy in this business to know what payments are coming in because customers often purchase a complete one-month nutrition programme. It's the small costs, like local advertising and postage that are harder to keep track of. There are lots of small receipts.
"I put all my receipts into appropriately labelled plastic sleeves in a lever arch folder that's also divided on a month-by-month basis. If something is paid for by cash, the receipt goes into the cash sleeve; if by bank account, into the bank-account sleeve; and if by credit card, into that sleeve. Every time I get a receipt, I make a decision about which folder it goes into. Also, if the receipt doesn't state what was purchased, I immediately write on it what it was for.
"In fact, all paperwork to do with the business is kept in an ordered filing system. It's especially important as the business is a limited company and I know the obligations that brings."
Separate business from domestic expenses
"Because I run my business from home, there are often mixed expenses. For example, I might have bought one item for the business alongside all my food for the week. All those expenses add up too, so I tag the business items on the receipt with a tick and that then goes into the relevant sleeve too."
Use a computer and back up data regularly
"Our bank gave us an accounting package when we opened our business account and that has proved very helpful. It allows for categories such as marketing, administration, telecoms and stationery, so I can enter the relevant figures from the filed receipts directly into the relevant category. It really helps me keep track of how much I'm spending, on postage for example.
"I keep customer-order records on the system too. It's such a prompt for me to know who's buying what and when. It's important marketing information. I back up the computer records at least once a month."
What I'd do differently
Think about a system before I started up
"I was very disordered when I first started. Now I file receipts as I get them and when I receive statements, I use that as a prompt to enter data on to our accounting system and to reconcile things. Developing a routine has been very helpful. An early investment in files and computer software does pay dividends later."