5 Tips to Improve Your Bookkeeping
By Bayleaf Financial | Published May 2025
Good bookkeeping is the foundation of a healthy business. Here are five practical ways to keep your financial records in top shape:
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Stay Consistent:
Set a weekly time to update your records—consistency prevents errors and panic at year-end.
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Use the Right Software:
Invest in user-friendly cloud software like Xero or QuickBooks to automate and organise.
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Separate Business and Personal:
Always use a dedicated bank account for your business transactions.
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Track Receipts and Expenses:
Use digital tools to scan and categorise receipts as you go.
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Ask for Help:
Don’t wait until things get messy—work with a qualified accountant to stay ahead.
AI and Supercharging Your Bookkeeping Using Your New Best Pal
By Bayleaf Financial | Published May 2025
Artificial Intelligence (AI) is no longer just for big tech firms—it’s reshaping small business bookkeeping too. Here’s how:
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Automated Transaction Matching:
AI tools can categorise and reconcile your transactions in seconds.
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Invoice Scanning:
Snap a photo of a receipt, and AI will log it, file it, and even code it to the right expense category.
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Real-Time Reporting:
With AI-powered dashboards, get insights on cash flow, profit margins, and more at a glance.
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Predictive Alerts:
Some platforms can now flag unusual activity or forecast tax liabilities.
Working with an accountant who understands these tools means better advice and more efficient workflows. AI is your new digital assistant—just a lot faster.
Making Tax Digital – It’s Here... Soon!
By Bayleaf Financial | Published May 2025
Making Tax Digital (MTD) is HMRC’s move to transform the UK tax system into a digital-first model. While VAT-registered businesses are already on board, MTD for Income Tax Self Assessment (ITSA) is next. MTD for Income Tax Self Assessment (ITSA) will be phased in starting **April 2026** for individuals and landlords with **gross income** over **£50,000**, and from **April 2027** for those earning **over £30,000**. Gross income means your total business or property income *before* expenses are deducted — not your profit. This threshold applies to the combined total across all your sole trader businesses and/or UK property income.
What does that mean for you?
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You’ll need MTD-compatible software to submit tax returns.
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Quarterly updates will replace the old once-a-year panic.
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Digital recordkeeping will become mandatory.
The good news? With the right support and systems in place, MTD can actually make your tax life easier. At Bayleaf Financial, we’re helping clients transition smoothly—so you can focus on your business, not your spreadsheets.