What is the Best Way to Do Bookkeeping? 3 Smart Tips

You’ve got receipts in one drawer, invoices in another, and a spreadsheet that hasn’t been updated in weeks. Wondering what the best way to do bookkeeping really looks like? Start here.

3 Best Ways to Do Bookkeeping

Bookkeeping doesn’t have to be confusing. Here are the best ways for small businesses and freelancers.

1. Use Digital Bookkeeping Tools or Software

If you're still relying on manual bookkeeping for small businesses, it might feel familiar, but it often takes more time, increases the chance of errors, and makes tax season harder than it needs to be.

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Digital tools like Xero, QuickBooks, and FreeAgent connect to your bank account, track expenses automatically, and even prepare VAT returns for you.

Instead of manually entering every invoice or receipt, the software does most of the work, which you just review and approve.

JAFA’s own AI-powered bookkeeping system takes this a step further by learning your transaction patterns and categorising expenses intelligently, so you spend even less time reviewing and more time running your business.

It also keeps your records tidy for HMRC and is fully compliant with Making Tax Digital (MTD), which helps you avoid last-minute stress and penalties.

2. Stay Consistent with Record-Keeping

Bookkeeping isn’t a once-a-year job. It works best when it’s part of your routine. Leaving everything until the last minute often means missed expenses, forgotten invoices, and last-minute panic when it’s time to file.

Instead, block out 15 to 30 minutes once a week to update your records. Log new income, scan any receipts, and check your bank feed. It sounds simple, but this habit saves hours of stress down the line.

Consistent records also mean fewer surprises when tax time rolls around, and they help you claim what you’re actually owed. If you're ever audited or need to apply for funding, neat, up-to-date books will speak for themselves.

This approach works especially well for anyone figuring out how to do bookkeeping from home, where routines and systems matter even more.

3. Work with a Professional

If you’re unsure whether you’re recording things correctly or filing taxes the right way, that’s a sign it’s time to bring in help.

A qualified bookkeeper or accountant doesn’t just “do the numbers”. They’ll spot issues early, help you claim deductions you might miss, and make sure everything lines up with HMRC requirements, especially under Making Tax Digital (MTD).

They also free up your time, so you can focus on running your business instead of chasing receipts or second-guessing your records.

At JAFA, our team of expert accountants works alongside our AI-powered bookkeeping to make sure everything is accurate, compliant, and tailored to your business. So you get the best of both worlds: smart automation and real human support.

And if you’re just starting out and wondering what is the best way to do bookkeeping for beginners, working with an expert gives you a solid foundation to build on.

RELATED: Is Bookkeeping Hard to Learn? The Honest Answer

What We Think

At JAFA, we believe most small business owners are under more pressure than ever, but they’re still expected to handle bookkeeping like full-time accountants. That’s not fair, and it’s not realistic.

We’ve worked with clients who spent hours each week managing spreadsheets, only to miss key deductions or fall behind on tax prep. The problem isn’t that they’re doing it wrong - it’s that they’re doing it alone with the wrong tools.

How JAFA Can Help

At JAFA, we combine expert support with AI-powered bookkeeping to take the pressure off your shoulders.

Our system automatically tracks income, expenses, and VAT, saving you hours each week. No more wrestling with spreadsheets or second-guessing your records.

And you’re not on your own. Our qualified accountants review your books, catch issues early, and make sure you’re on track with HMRC.

It’s a smarter way to stay organised, save time, and avoid costly mistakes without having to figure it all out yourself.

Contact our expert accountants based in Birmingham, UK, either by booking a FREE discovery call or calling us on +44 121 227 6277.