If you don’t have good, clear, and organised business records, your ability to measure the success of a business will be meaningless. Maintaining good and clean business records can help you make informed decisions that support business growth. Now, you may be wondering: how to organise business records and what the benefits of accurate record-keeping are. Well, there are several ways to keep your business books organised. In this blog post, we’ll explore a few steps that are often used by bookkeepers for small business bookkeeping.
How to Keep Your Business Records Organised?
As a business owner, you may have to perform several tasks to keep your business running. Due to a lack of time, many business owners often prefer seeking help from bookkeepers. Bookkeepers are professionals who understand the process involved in managing business books. Here are the primary ways to keep your business books simple, accurate, and organised:
Create an effective record-keeping system
Every transaction that takes place in a business should be tracked and recorded in a way that makes it easy for the company to maintain and manage its cash flow. Tracking and recording all business’s financial transactions, including receipts, invoices, and expenses, will help you forecast future opportunities for your company and maintain tax compliance. Nowadays, many business owners have started using digital platforms to keep their financial records safe. It’s also best to have a backup of your business records.
Remember important deadlines
As a business owner, you spend most of your time running and expanding your business. With a number of tasks to perform, it’s easy to lose track of when you are liable to pay payroll, GST, and regular business invoices. To handle all your tax matters, you can find one of the best accounting firms in Melbourne, like our firm. Accountants remember all important deadlines to help you avoid paying unnecessary penalties and fines.
Track your business expenses
It’s tough to predict what kind of expenses you’ll encounter when you start your business, and what costs are tax-deductible. For example, costs related to running the company and tied to your income generation are tax-deductible. However, if you buy something solely for personal use, you can’t include it in your accounts.
Mixing personal and business accounts doesn’t mean that you are liable to claim for everything you purchase. You must review and understand what you are liable to claim under Australian Tax Laws. If you are unsure what is considered a deductible purchase, you can seek help from a professional tax accountant.
Create financial reports
A good bookkeeping strategy is not just about meeting tax obligations. Monitoring your outgoing and incoming cash makes it easy to check the financial condition of a company. With the right accounting software, you can ensure that all your clients pay their invoices on time. While it’s good to check your company’s financial condition, you might want to pay attention to your accounting and bookkeeping records at the specified interval, and consider trends like large expenses, growing or declining sales, or proof of late-paying clients. You can ask your bookkeeper to prepare financial statements, including income statements, balance sheets, and cash flow statements. Despite this, they can help you prepare BAS. You can also discuss with them how to calculate BAS. With financial records, you can better plan for your business for future growth.
Seek professional assistance
Different accounting software, such as MYOB, Xero, and QuickBooks, makes it easy for business owners to manage their accounting and bookkeeping tasks without a lot of effort. However, this doesn’t mean that you should not rely on a professional bookkeeper. Outsourcing to an experienced bookkeeper provides various benefits, including:
- saving you time and effort
- saving you money
- ensuring your business books are always updated and accurate
- meeting all tax rules and regulations, including tax and BAS obligations.
Conclusion
You need to keep accurate and updated business records for a company, as these records offer numerous benefits to a company. By following these tips, you will have a better understanding of the financial condition of your company. By getting reliable bookkeeping services for your company, you can be sure to have accurate records.