Accounting can become difficult if you don’t manage your business books properly, and unorganised business books can make your tax season worse. With simple and clear accounting bookkeeping services, you can have better control over your business’s financial situation and even maximise your revenue. Opting for a method that merges your invoices, expenses, tax information, and deposit records can make your life easier, especially when tax season is around the corner. In today’s blog, we’ll discuss a few tips that you can use for managing your business books because these methods are usually used by professional bookkeepers. Let’s get started:
Top 5 Tips to Use for Organised Business Books
The following tips you must follow if you want to organise your business books properly:
Don’t Combine Personal and Business Expenses
Never mix personal and business expenses because it will make accounting and bookkeeping much more difficult to manage. If you are a new business owner, then you must open a new bank account for your business to keep business funds separate from personal expenses. If you are spending money from the business account for personal use, then it is a waste of time and money. In many cases, you must have a separate business account based on your business structure.
Record Every Transaction
It is necessary to record every transaction, whether it is small or big. If you can’t record every financial transaction, then it will become difficult for you to keep track of cash flow. This is the reason why bookkeepers maintain a record of all transactions within the business so that they can provide you with the information, including cash flow, receipts, expenses and more. You can opt for bookkeeping services Australia to get bookkeeping services for your business. When you have all the information in hand, then you can easily estimate future opportunities.
Know the Type of Expenses
It is difficult to estimate what type of expenses you will manage when you run your business, and what type of expenses can be deducted from your taxes. For example, expenses related to the business’s operations and related to your source of income are tax-deductible. If you think that by combining personal and business accounts, you can claim for everything you purchase, then you are wrong. You need to understand what can be claimed or not under Australian Tax Laws. If you don’t know what you can claim, then you must seek help from professionals.
Generate Daily Reports
Managing business books is not only good for tax purposes but keeping an eye on outgoing and incoming cash flow also makes it easy for you to perform daily financial check-ups. Bookkeepers can help you know whether all your clients have paid invoices or not.
It is necessary to reconcile your bank statements. If you don’t have enough time for the reconciliation process, then you must take help from bookkeepers as they are experts in reconciling your bank accounts. In this process, they compare transactions recorded by your company with the bank statements to know if there is any inconsistency.
How does a Bookkeeper Help Your Business?
Bookkeepers have a number of tasks to perform for your business, so you can focus on the rest of the business activities. The following are some important tasks that are performed by a bookkeeper:
Record All Financial Transactions
Your bookkeeper will be responsible for recording all financial transactions accurately so that you can get relevant information and report on your business performance.
Keep Track of Expenses
It is important to record all business expenses, and they should be reconciled. Your bookkeeper can perform this task on your behalf, and they can also keep track of who is spending what and identify if there are any excess expenses.
If you hire staff, then payroll becomes an important part. When you pay your staff, then it involves checking out the timesheet, calculating payroll tax, assigning any commission payable, and keeping accurate data of employees, including their bank account information.
Prepare Financial Statements
Bookkeepers are experts in preparing accurate financial statements for small businesses. These statements can include a balance sheet, profit and loss statements and cash flow statements. With the help of these financial statements, business owners can have an idea of business operating expenses and a business bottom line.
For every business, it is essential to hire a bookkeeper so that they can focus on business growth and bookkeepers can keep their business records up-to-date without any errors. If you are interested in getting bookkeeping services, then you can seek help from a Reliable Bookkeeping Services provider.