Great bookkeeping isn't about being 'good with numbers'. It's about a small set of habits, done consistently, that give you a clear view of your business every single month.
1. Separate business and personal accounts on day one. Never pay for anything personal on the business card — the untangling costs more than the coffee.
2. Reconcile your bank weekly. Small, regular reconciliations are painless. Monthly ones are a chore. Quarterly ones are a nightmare.
3. Capture every receipt digitally. Apps like Hubdoc and Dext take 30 seconds and remove 30 minutes of month-end filing.
4. Close the month within 10 working days. If it takes longer, your process needs simplifying — not more effort.
5. Read your P&L every month. Compare month-on-month and year-on-year. Numbers only mean something in context.
6. Track KPIs, not just accounts. Sales per customer, gross margin, days-to-pay — these tell you where the business is heading.
7. Chase debtors on a schedule. Don't wait until cashflow bites — every invoice should have a follow-up cadence.
8. Forecast cash 13 weeks out. Weekly cash forecasts stop 90% of business crises before they happen.
9. Never mix VAT with turnover in your head. Your VAT is HMRC's money — treat it as a liability, not income.
10. Meet your bookkeeper regularly. The best insight comes from a conversation, not a spreadsheet.