How Can I Keep Track Of My Business Finances?

The important thing about business finances is to make sure that every transaction is recorded. Not many businesses now use real books to maintain these records, although it's possible, it's much easier to use a computer. A small business could probably get by with a spreadsheet that tallies expenses and income and splits VAT out, if the business is VAT registered.

Once you get past a certain size, or you need more than one person to have access to the accounts, then it may be worth looking at accounting software. There are numerous packages around, some that work on one PC and others that sit on a central machine so that a number of staff can access it at the same time. It is worth spending time on choosing the right package, particularly one that will grow with the business, as changing packages can be a tricky and time-consuming exercise.