Bookkeeping is fundamental to any business but it’s far from anyone’s favourite task. The reality is that as a small business owner, making sure your records are accurate and up-to-date is vital yet many neglect this aspect of their business. By law every business is required to maintain proper, detailed records.
Here are five tips to getting your bookkeeping right and your accounts on track:
#1. Don’t find the time. Make the time.
Like anything else, unless you schedule a time and keep to it you’re unlikely to get the job done. Pick a set window of time and stick to it. Once you get in the rhythm you’ll find that it is great to regularly review how your business is going and feel happier knowing you’re in control of your cash flow.
#2. Get the right technology for your business needs
With the right software and add ons you know that each part of your bookkeeping and accounting process is taken care of. If you are unsure which software to select, you should do some market research and get in touch with your accountant or a business consultant. We recommend a leading bookkeeping platform like Receipt Bank, integrated with a cloud software like Xero or MYOB. This way you can easily access your financial data anywhere, anytime and your files will be regularly backed up and secure.
#3. Understand your tax and compliance obligations
Keep up-to-date with your requirements and obligations on the ATO website. All businesses must register for an Australian Business Number (ABN) and if your revenue is over $75,000 then you have to apply for GST registration. You’re obligated to keep receipts but you can now do this electronically. Don’t forget to complete and lodge your Business Activity Statement (BAS) monthly or quarterly.
With the right bookkeeping and accounting programs, you can streamline and automate these processes knowing that you’re compliant.
#4. Do away with shoe boxes and filing cabinets
You’re required by the ATO to keep all records for at least five years. These records need to be accessible and secure and covers everything including invoices and receipts for sales and purchases, payments to employees and organisations like Superannuation funds and PAYG tax, tax return information, and bank account and credit card statements.
While a filing cabinet is okay, you can now choose from a number of digital platforms like Dropbox Business and Receipt Bank to store this information.
#5. Don’t be afraid to ask for help
It’s not a failure to reach out for help and advice. Consulting or hiring a bookkeeper and accountant as your business expands can give you the clarity and assistance you have been desperately needing. These services are also tax deductible and ensure that you are meeting all your requirements while focussing on other parts of your business.
This content was brought to you by Receipt Bank. World leading software that automates your bookkeeping. To discover more or sign up for a free trial of the product please click here.