7 TIPS FOR BETTER SMALL BUSINESS BOOKKEEPING
In managing a business, one of the most crucial tasks that must never be forgotten or neglected is bookkeeping. It consumes a lot of time and quite tedious, especially since you need to make sure that every cent spent by your business is accounted for, correctly and accurately.
At the start, monitoring the flow of cash can be easy, which is why many entrepreneurs are encouraged to do this themselves. Nevertheless, as time goes by and the company grows, it will eventually become very demanding and burdensome. Because of this, it is important for a small business to get the services of a qualified bookkeeper in Brisbane who can focus solely on the books.
One simple error in record keeping when lodging income tax can end up with a lot of penalties imposed by ATO or end up underpaying in the payroll. Nevertheless, with a few helpful advice, an entrepreneur can be in complete control of his company’s statements without facing all the hassles.
Here are a few tips for better small business bookkeeping like a pro:
- ALWAYS SEPARATE YOUR PERSONAL EXPENDITURES
A fundamental tip that you should always bear in mind is to organise your bank accounts and keep your personal and business account separate. It is especially important for entrepreneurs to have separate bank accounts in Brisbane, especially if you are managing your company’s bookkeeping tasks. This will help you avoid using your personal money for business purposes.
Another benefit of keeping your accounts separate is that it will help prevent you from mixing up your business transaction records with your personal bills and records.
If you are a start-up business in Brisbane, be sure to do this first. If your business has been operational for some time now, then it is best to start doing this to lift yourself of all the confusions and stress. In addition, you should also have a separate credit card for your business. Make sure to build up your credit rating and keep all transactions in proper order and accurately recorded.
- KEEP YOUR SYSTEM ORGANISED
Doing record keeping by yourself may lead to you keeping your company bills into your files and eventually forgetting them. And looking for them without any clue, for when you are filing tax can be stressful and annoying.
For this reason, you need to keep your system organised and make sure that you are following a proper bookkeeping method. This will help you feed all your financial data into the system without committing any mistake. In addition, you may have the urge to put them off for the time being or focus your attention on other task as an owner of a business in Brisbane.
But, keeping your records complete is a top priority, so you should never do this. Nevertheless, you can always get the services of a bookkeeping company in Brisbane to make sure that bookkeeping tasks tare done promptly and correctly. In fact, a lot of entrepreneurs rely on them to prevent issues and always have accurate reports.
- THOROUGHLY MONITOR ALL TRANSACTIONS
Another important aspect of bookkeeping is monitoring all transactions that takes place or has taken place in your Brisbane business. It is also crucial to keep them updated on a daily basis. Even though automated bookkeeping systems and invoicing software can take care of the numbers and computations, it is still vital for the businessowner monitor each transaction. You can have the data downloaded or printed.
There is also another vital aspect to keep in mind, which is to always keep the sales receipts or any proof of sales. You can have these proofs looked if they are qualified for tax reductions. For businesses using cashbooks, it is also important to make sure that all transactions are organised in a specific place and properly labeled so that confusions can be prevented.
Make sure that these records can be easily accessed since you will be needing them so that you can make sound and informed decision. These are especially important when making investment-based decisions, since these depend on the financial status of your business, which you can only identify from the records.
- BANK STATEMENTS RECONCILATIONS
Bank reconciliations involve comparing your financial statements with the bank account statement of your business for the similar period. Doing so, will help you find out any irregularities in the computations and missed, ignored, or forgotten invoices and bills.
This is especially vital for businesses who used the accrual method of bookkeeping. Correct and accurate books will help make sure that entrepreneurs in Brisbane are spending sensibly and have a great understanding of their company’s cash flow.
Detecting frauds is another great benefit of reconciling bank statements. These frauds may include vendors changing the amount on cheques issued in order to withdraw higher amount. Therefore, there is no need for you to be worried about being deceived by the people you are working with. Bank reconciliations may be carried out daily, weekly, or monthly. It depends on the volume of transactions that takes place in a business.
- GETING READY FOR THE TAX SEASON
Taxes imposed on small businesses are different from income taxes, which is why it is important for entrepreneurs in Brisbane to learn everything there is to know about them. You will need the help of a bookkeeper in this regard, however if you don’t have a bookkeeper by your side, it is important to research about taxes thoroughly.
It is essential to learn everything there is to know about your tax obligations in Victoria including capital gains, goods and services, income, and fringe benefits tax. This will help you determine the amount of capital you need to pay your taxes. It will also help learn when you need to pay these taxes to not miss them.
Furthermore, keeping your records updated will make you eligible for claiming tax concessions. Keeping transaction proofs will help with this process. Bookkeeping will help you avoid issues with ATO and at the same time save money that could otherwise have been lost because of incorrect record keeping.
- AUTOMATE YOUR WORK
Small business owners in Brisbane are often faced with so many responsibilities. They also have a ton of work that they need do. These include creating business strategies, making sales predictions, workforce management and recruitment, etc.
Because you don not have a specific person who can handle each important business function, you are often doing these functions simultaneously. This means you have so little time for record-keeping. You can reduce your workload and maintain or improve the process by automating some of these functions.
Automation, which is rampantly used by businesses these days, can help you save a ton of effort and time, and on top of that, they also provide precise results. With a good small business bookkeeping software, you can automate several tasks such as invoicing, payroll management and more.
- CASH FLOW MONITORING
For a business in Brisbane to achieve success, it is important to keep track of its cash flow. A reputable bookkeeping company with well-trained bookkeepers can help you in efficiently managing the cashflow. Nevertheless, if you do not have a bookkeeper by your side, you have to keep an eye on the accounts payable and receivable so that you can balance the capital flow of your business.
If you find pending payments in your records, this means that your businesses is going the wrong way. It is vital for you to keep the income and expenses balanced to make sure that there is no discrepancy. And you can only make this possible by making your that your customers are paying promptly and that you are following up with these customers in Brisbane to get their payments immediately.
A well-trained bookkeeper in Brisbane is skillful at handling all the tips mentioned in this article. Using their experience they can provide the best results for small businesses in Brisbane. Therefore, it is essential to get the services of an experienced and qualified candidate in order to prevent your business from getting in trouble and make sure that your business is a success.