When contractors start out to work on their own, they often find that the biggest challenges are not just doing their job well, but also keeping the little mistakes in check. Accounting is one such field where most people slip-up. Here are a few things you should remember to stay clear of problems:
Keeping track of important dates: You need to be aware of your self-assessment, tax-filing, and other important dates AT ALL TIMES in order to avoid missing deadlines. Its better to set up digital reminders to free up your mind.
Keep track of all receipts: This seems unnecessary to most contractors, but the little pieces of info can be really useful in order to explain where all the money went. Its better to keep them all neatly than wondering what the heck happened when you are under an HMRC investigation.
Manage your workload: This might not look like its directly associated to the accounting part, but if you have taken up more work than you can manage, you’ll inevitable end up drowning in paperwork and find yourself scrambling to pay penalties and losing money, which will hit your finances hard.
Keep a keen eye on the bank account: Your bank account is something that needs not just to be checked, but maintained. Every little transaction counts and if you turn a blind eye towards it, it won’t take long to hit back with some unpleasant scenes.