Keeping your financial records in order is one of the most important habits you can develop as a new business owner. Proper bookkeeping not only helps you stay compliant with HMRC but also gives you the insights needed to grow confidently. 

At East London Accountants, we work with hundreds of entrepreneurs across London. Whether you’re a sole trader, freelancer, or limited company, these 10 practical tips will help you manage your books effectively from the start. 

1. Separate Business and Personal Finances 

Open a dedicated business bank account. This keeps your transactions organised and avoids confusion during tax season. It also makes your business look more professional. 

2. Choose the Right Accounting Software 

Start with a user-friendly cloud-based system like: 

• Xero 
• QuickBooks 
• Sage 

These tools help with real-time tracking, invoicing, expense recording, and Making Tax Digital (MTD) compliance. 

3. Track Every Transaction 

Record all income and expenses. Don’t rely on memory or occasional receipts. Accurate, up-to-date records: 

• Help monitor cash flow 
• Make tax filing easier 
• Prevent fines and errors 

4. Set a Weekly Bookkeeping Routine 

Block out 30–60 minutes a week to: 

• Log receipts and invoices 
• Reconcile bank statements 
• Chase unpaid invoices 

Regular maintenance avoids end-of-year chaos and keeps things manageable. 

5. Keep All Receipts and Invoices 

HMRC may ask to see supporting documents, so keep: 

• Digital or scanned copies of receipts 
• Supplier invoices 
• Sales records 
• Mileage logs and expense notes 

Store these securely for at least six years. 

6. Understand Allowable Expenses 

Know what you can claim to reduce your tax bill: 

• Office rent and supplies 
• Software subscriptions 
• Travel and mileage 
• Business phone and broadband 
• Marketing costs 

An accountant can help you identify all legitimate deductions. 

7. Automate Where Possible 

Use automation tools to: 

• Send recurring invoices 
• Track payments 
• Remind clients about due dates 
• Categorise transactions 

Automation saves time and reduces human error. 

8. Stay VAT Aware 

If your turnover is close to or over £90,000 (as of 2024), you must register for VAT. Even if you’re below the threshold, voluntary registration may benefit you depending on your customer base. 

Use software that supports MTD and digital VAT submissions. 

9. Monitor Cash Flow Closely 

Cash flow—not just profit—keeps your business alive. Use bookkeeping to: 

• Identify when payments are due 
• Plan for upcoming bills 
• Avoid shortfalls or overcommitments 

Real-time data lets you make smarter financial decisions. 

10. Work with a Professional Accountant 

Even with good software, having an accountant adds expert oversight. They’ll: 

• Review your records for accuracy 
• File returns and reports correctly 
• Provide tax-saving strategies 
• Free you up to focus on growing your business 

How East London Accountants Can Help 

We provide bookkeeping and accounting support for startups, small businesses, and growing companies across London. Our services include: 

• Setup and training on Xero, QuickBooks, or Sage 
• Monthly bookkeeping packages 
• VAT and payroll services 
• Self-assessment and Corporation Tax returns 

With over 20 years of experience, our team makes bookkeeping simple, clear, and stress-free. 

Book a Free Bookkeeping Consultation 

Struggling to keep your books in order? Contact East London Accountants today for a free consultation. Let us take the pressure off your finances so you can focus on running your business with confidence.