Bookkeeping tips – Our top five
Running a business is no easy task, and if you’re new to it, there are pitfalls and experiences you need to learn from in order to make better decisions next time. One of the most important and probably also one of the most boring things you need to do with any business, large, small, new, or old, is bookkeeping.
Unless you’re making money, tracking finances isn’t much fun, but it’s an imperative part of business function, not only for tax and audit purposes, but also to give invaluable information in order to make well-informed business decisions, and to keep a track on incoming and outgoing’s. Put simply, effective and efficient bookkeeping will give you a solid business performance indicator.
If it’s your first time keeping financial records like this, below you’ll find five useful bookkeeping tips, aimed at helping you make the whole process easier.
Don’t leave it until the last minute
The best way to managing your bookkeeping is to make it a set part of your day or week. Don’t leave receipts hanging around for weeks with good intentions to enter them into your spreadsheet or computer software, instead do it regularly, making it much less hassle, and much more accurate.
Find the best way for you
Probably the most important of all bookkeeping tips is to find a system that suits you personally. One size doesn’t fit all, and whilst some people are perfectly happy to simply use an Excel spreadsheet they have designed themselves, others may find it more useful to purchase dedicated software, such as MYOB. You also need to develop a filing system for receipts and statements, instead of stashing them all in random drawers!
Track your expenses
When you come to do your tax return, there are certain things you can set-off against your tax, but if you don’t keep accurate records and receipts of this, you won’t have a clue what to record on your return. Keep a record of everything you spend or receive, not only for this, but also for audit purposes. Anything you buy for your business, any business lunches or trips, anything you receive back – keep a record.
Budget for your taxes
You know you’re going to have pay tax on what you earn, and you will know when you will need to make a payment, so instead of sitting staring at tax bills, wondering where you’re going to find the lump sum from, budget accordingly over the months, starting with putting it in a high interest account you can’t touch.
Monitor your incomings like a hawk
If you have several bills due to be paid to you, it’s easy to lose track. This is why you need an accurate system of tracking unpaid bills, and a way to chase them up. Again, you need to find the best way to suit you, whether that’s employing a person to do this for you, or setting up a spreadsheet that is updated and checked on a daily basis. Unpaid bills mean lost money!
Bookkeeping isn’t glamourous and it isn’t particularly much fun, but if you follow these easy bookkeeping tips you should be able to simplify the matter enough to make it a manageable, regular task.
If being your own bookkeeper does not appeal to you, and you would like to pass this job to a professional who will take care of everything for you, leaving you worry free, call the team at Accounting Bookkeeping Gold Coast now on 5576 0011. We will have you so organised, you won’t know yourself!