Bookkeeping is a vital part of owning a small business. Many business owners tend to neglect this aspect of their business until the end of financial year arrives. Unfortunately, every business is required to maintain precise and timely records.
To simplify the bookkeeping process here are 6 informative tips, we love this post from MYOB:
- Allocate time each week and devote to your books
It is very important to be on top of this. Regular reviews will let you know how your business is going and allow you to control your cash flow.
- Open a new business bank account for business earnings and expenses.
It is important to keep your private transactions separate from your business transactions. In time, you can apply for a business credit card and apply the same terms.
- Get accounting software that suits your business needs.
If you are unsure which software to select, you may contact a business consultant or accountant that can better advise you before you buy.
- Get all your tax and compliance obligations right
All businesses are required to register for an ABN, and if your turnover is more than $75,000 then you must apply for GST registration. You must also keep receipts for all acquisitions in order to claim on your expenses. If you employ staff, you must also register for PAYG withholding Tax. This is where you pay staff and withhold some tax on their behalf.
- Keep your receipts
The ATO requires you to keep records for a minimum of five years.
You could create digital files on your computer to store this information or keep a well organised filing cabinet.
- Or, get a great bookkeeper
As you expand your business you may need to engage the assistance of a great bookkeeper, keep in mind that this service is also tax deductible. Hiring a bookkeeper helps you focus on growing your business while ensuring your record keeping is up to date.
If you follow these tips your guaranteed to expertly handle your accounts and bookkeeping in no time!