5 Financial Resolutions For The Self-Employed

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Now that January is here, tens of thousands of self-employed people in the UK will be gearing up for another year of hard graft. Yet the true meaning of a successful enterprise is down to financial management, or the perils inherent in letting accounts and bookkeeping slip by the wayside.

 

 Added to this is the need for grounded, well-evidenced tax submissions, which many of you will be thinking about as the Self Assessment deadline draws near. So here are a few financial resolutions to adopt as you enter 2017…

 1. Keep an eye on tax relief 

 If your costs are spiralling, it may be prudent to assess where you’re entitled to tax breaks. These expenses, once considered viable and necessary in relation to what you do, can save a lot of money.

 2. Store receipts electronically

 Almost every facet of the tax system is going digital, and receipts are no exception. Apps like SimpleTax allow you to scan, stash and review receipts as you receive them, automatically deducting from your liabilities. It’s far better than leafing through months’ worth of documentation when a tax deadline looms, and it’s backed up on secure, encrypted cloud storage, accessible from any device.

 3. Streamline your bookkeeping

 As a self-employed worker, the state of your accounts may always be in flux. Not knowing when and where money is coming in from, as well as the outgoings you’re accruing, is a danger to your sustainability. For a clear, accurate picture of your cash flow, it’s wise to invest in an online bookkeeping solution. SimpleBooks makes it easy to keep up with your accounts, so that you don’t fall behind on invoices and payments.

 4. Set aside an emergency fund

 When you do get a windfall of cash, consider putting some away into a savings account. Life can throw some nasty surprises towards you, which is why having a ‘rainy day’ fund is a smart insurance against the eventuality of something going wrong, or a month where you’re struggling to make ends meet.

5. Be consistent with your tax savings

Being hit with a tax bill much greater than you anticipated is something that no-one should face. Like any other pursuit, it’s better to be safe than sorry where business is concerned. Therefore, we urge you to save a percentage of your income each month, in line with your real-time liabilities outlined in SimpleTax.

These are just some of the resolutions you can work on over 2017; hopefully, you’ll stick to them, when you see the benefits of doing so.

GoSimple software can help you transform your approach to finance, making it easy to stay in control of your accounts. So all you have to do is look forward to the future, and focus on building your business!

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