The Bookkeeping aspect of business is usually a nightmare for many entrepreneurs and business owners who are not with numbers. However, this nightmare is a necessary evil that can only be ignored until the the fiscal year when the tax agencies comes knocking. Keeping an eye on your business cashflow is one thing that shouldn’t be shoved under the table, because inappropriate bookkeeping can land a thriving business into serious financial mess. Being smart with your bookkeeping can save you a lot of stress in the long run.
- *STRICTLY BUSINESS
- Many businesses fail because their owners muddle up personal and business transactions. The easiest way to evade this pitfall is to open a dedicated bank and credit card accounts for your business. This will simplify the cash flow and transactions, since every transaction through that account is for business strictly. It will also prevent you from paying taxes on unremitted money and make it easier to track expenses.
- Having the bank representatives educate you on the different account options and packages that come along with them will help you make informed decisions.
- AVOID PROCRASTINATION
- The undoing of any business owner is procrastination in recording his financial expenses, the more he/ she procrastinates the work piles up and can be a headache to resolve later. Bookkeeping doesn’t have to be a daily activity, but choosing a regular timeframe e.g weekly to reconcile your financial books is very advisable else, you could be forced to use that free day dedicated to family to settle bookkeeping scores.
- SIMPLIFY YOUR PAYROLL
- Keeping the payroll simple is one way to free up time wasted on bookkeeping. This method of streamlining your bookkeeping process is by automating the payroll. Financial software make it easier for business owners to pay their employees, contractors and suppliers and some of these software like wage point can be integrated with Xero to help you find all financial information needed with ease.
- PLAN FOR ALL MAJOR EVENTS
- It is important in bookkeeping that you eliminate most cases of unforeseen expenditures and plan for all major events that are upcoming. This helps your business avoid moments of cash crunch due to avoidable heavy spending that could have been accounted for. Are the furniture in their last moments?, Are Rents and other utilities due?. All you need to do is create an upcoming payment schedule for all future expenses anticipated by the business.
- You may also be planning your business based on a payment that is due soon by one of your customers, it is wise to create an upcoming monies received schedule to enable you cash out some of your cheques when due.
- HIRE A BOOKKEEPER
- For a small business, many will think a bookkeeper is unnecessary. However, if the options are weighed and it is seen that hiring a bookkeeper will free up more time for the business owner to make more money for the business , then it’s a wise decision to take. There could be a college student wanting internship or externship hours or a professional bookkeeper at affordable rates. Since the business volume is not large, the bookkeeper may work for some hours of the day, preferably evening hours so that he can record all financial deals of the day.
As tiring as bookkeeping might seem for beginners, it can actually be fun to be your own personal bookkeeper if you can master the simple rules. However, if you feel that hiring a bookkeeper is a better idea, then bookkeeper Melbourne or visiting bookkeeper.com.au is the best bet?