Sunshine Coast Bookkeeping Services
Efficient and accurate Sunshine Coast bookkeeping services and tax advice by Enrich accountants! Check out our TOP 3 tips for efficient bookkeeping management!
Bookkeeping is one of the most important “on business” tasks that needs to be completed. Many business owners are great at what they do, but they don’t have any formal qualifications in accounting to assist them in managing their bookkeeping tasks.
It is not unusual for a business owner to attempt to manage their bookkeeping when starting out due to cash flow reasons.
Having correctly recorded financial information is going to assist you to be able to make informed decisions about your business and ensure that you are meeting all your legislated obligations, by being able to accurately report the required information to the ATO on time.
For these reasons, I wanted to share with you, my top three bookkeeping tips:
#1 Allocate time weekly to do your bookkeeping
Many business owners find completing their bookkeeping tasks too onerous and tend to put it off until they absolutely must do it. Like, when the BAS is due for lodgement each quarter.
Completing your bookkeeping tasks weekly, breaks it down into manage steps.
A few reasons why regular bookkeeping is important:
1. You can have all your financial information ready for tax time. You won’t need to be scrambling for receipts or invoices, all of your financial information will be already organised in one place.
2. If you want to be able to make good decisions, you will need access to all available information. Up to date bookkeeping will provide you this information.
3. You will have the financial information to be able to make profitable decisions.
4. Bookkeeping presents the past financial performance of your company. In order to plan for the future, you have to have a good understanding of the past. Bookkeeping will give you the clear picture of what exactly works or doesn’t work.
#2 Have a budget
A budget creates a financial roadmap for your business. With a budget, you can plan for future expenses and the anticipated resources that would cover those expenses.
Budgeting is the basis for all business success.
Budgets also help with setting goals and establishing priorities.
Having no budget is like going shopping without a shopping list.
Much like a shopping list helps you remember what to buy in the grocery store, meal plan and eat better, a budget helps businesses allocate resources, evaluate performance, and formulate plans. Its main use is to predict your business’s ability to take in more cash than it pays out.
A budget helps you to see the changes you need to make ahead of time.
An effective budget should break down revenue and anticipated expenses by month or by quarter, and depending on the size of your business, it should include separate budgets for each department. These departmental budgets also should be broken down by month or by quarter, and collectively they will come together to form your master budget.
#3 Set aside funds to pay tax and superannuation
There are a few different taxes that you will need to put money away for; income tax, GST and PAYG withheld.
I recommend setting up a business saver account to transfer GST, PAYG and super amounts to each week.
Another option to a business saver is, to transfer the funds to your mortgage offset account. This will come out of your business as directors’ drawings, so it is important that all monies transferred out are transferred back into the business by 30 June to prevent any division 7A issues.
If you need help keeping on top of your bookkeeping tasks, we are more than happy to talk to you about how we can assist you.