search icon

Master your accounting. Find more time for your business.

Take charge of your finances

Accounting for small businesses shouldn't be complicated.

Communicate with your bank

When you look at your financial statements, you should know what's behind every figure. While you don't need to take a course in advanced accounting, it's useful to have a sound understanding of basic accounting practices and terminology, including the following three kinds of statements:

  • The balance sheet is a snapshot of your finances on a given day.
  • Income statements show a business's progress over a set period of time.
  • A cash flow statement shows how changes in the balance sheet and income affect cash. 

With the right small business accounting software, your business accounts needn't take hours of your time. With the right tools, accounting can be quick and simple—so that you can focus on your business journey.

Keep up-to-date records

Businesses with up-to-date accounting records are far better at making informed, educated decisions, based on current facts. It's essential that you allocate some time every week to updating your books. With the right tools, you need't spend more than a few minutes a day, but it won't be long before your business starts reaping the rewards.

Keeping your records up to date helps you create and maintain a solid and reliable idea of progress—making it easier to see if you can pay yourself and your employees this month. You need to record revenues, business costs and allowable expenses as they happen. A few minutes a day can save you hours over the course of a year.

Track and manage your time

Time is one of your most important resources—you know that better than anyone. One of the most important skills you need when running a business is time management, with an acute understanding of how to effectively prioritise the most important tasks.

Moreover, in service industries, you need to rigorously track how much time your employees spend on each of your client accounts, and ensure that it's reflected in the amount you invoice them each month. Spending too much time on accounts that aren't making any profit is a costly mistake.

Keep a close eye on unnecessary costs

Tracking how much time is spent on activities that can't be attributed to any one account can make a big difference to your cash flow.

Understanding these costs properly—being aware, for example, that an external consultant costs more per hour than an employee—and taking action means you're in a better position to act decisively and drive costs down.

And that applies to all your other business expenses too. Whether that's finding cheaper utility providers, or choosing to print your company brochures using a less expensive finish, you should keep a close eye on costs and deploy appropriate internal purchasing approval processes.

Conquer end-of-year submissions

At the end of each year you will have to submit accounts for your business, and subsequently pay tax on your profits. While you will have time to budget for the tax bill itself, the operational impact of end-of-year accounting can be punishing if you are poorly prepared.

To make your life easier, file away all invoices, receipts, remittances, and any other accounting paperwork at the end of each month, in chronological order, so that it’s ready for easy retrieval and submission with your accounts.

Find the Sage business software that best fits your business

Each company has its own set of ambitions, goals and markets, which is why you need a powerful, flexible accounting software.

Sage Business Cloud Accounting

Online accounting software that’s perfect for small businesses looking to quickly create invoices, track accounts, and process payments.

  • Easy to set up and use, with the flexibility to manage business online anytime, anywhere.
  • Quickly create quotes or sales invoices, and monitor what's due to manage your customers.
  • Connect with your bank - no more manual processing or bank reconciliations
  • Collaborate with your accountant and reduce the time you spend on tax preparation.
  • Single Touch Payroll compliant payroll add-on accessible directly in the product
  • Customisable dashboards to gain visibility of how your business is performing 24/7
Learn more about Accounting

Get practical accounting advice

Visit our blog for articles and advice for starting and growing a profitable business.

15 of the best admin hacks for finance managers and small businesses

15 of the best admin hacks for finance managers and small businesses

Businesses around the world report that 71% of the time they dedicated to admin is taken up with accounting and payments processing tasks, including issuing invoices and chasing payments, according to research from Sage. Freeing up just a little of that time could be game-changing. Finance professionals could be liberated to take on an advisory and […]

Read More Read More
How to use the power of compounding to boost business performance

How to use the power of compounding to boost business performance

Did you know you can use the power of compounding to grow your profits, reduce cash flow issues and improve upon the performance of your business? Albert Einstein once said: “Compound interest is the eighth wonder of the world. He who understands it earns it; he who doesn’t pays it.” We understand the positive impact […]

Read More Read More
Top 3 accounting tips for startups

Top 3 accounting tips for startups

Accounting is a business essential that’s crucially important to your success as a startup. Here are our top three tips for managing your finances.

Read More Read More
5 ways to help prevent payroll fraud at your business

5 ways to help prevent payroll fraud at your business

Discover the practical measures you can implement to help spot and prevent payroll fraud at your business.

Read More Read More
Is your payroll software keeping up with your growing business?

Is your payroll software keeping up with your growing business?

Discover 5 common payroll challenges growing businesses face and the risks of using legacy payroll software.

Read More Read More

It's easy to keep your business running

Simple, yet powerful accounting software that gives you control over your finances and your business.

So leicht halten Sie Ihr Unternehmen auf Erfolgskurs