If you are a business owner, you will have to learn and manage bookkeeping so that you can keep track of the transactions and cash flow. It’s very important to know how the cash is coming and where it’s going. specially, if you own a small business, you probably are not going to have that big of a team at the start. So, here are the 5 bookkeeping tips you might want to look into:
- Don’t bring personal into business or vice versa
Just like you don’t bring up stuffs from your meeting at the Christmas dinner, you don’t bring any sort of personal accounts and transactions into business.
Even if you can handle things in the beginning when you intermix the business and personal bookkeeping, as things get bigger and more cash flow starts happening, things can get messy real fast. So, you have to see that such problems don’t occur for you. Therefore, never mix your personal and business’s bookkeeping.
- Set priorities for your books
Not to be too much philosophical, but there are hierarchical structures in the world. You can’t say that all of the things are equally important. If you say so, you will also be saying that all things are equally unimportant.
Therefore, it’s important to set priorities for your books. As a business when you have to make new investments, or make tax payments, you must be able to look into transactions easily. In those cases you will have to see the important books first. If things are going well for you and your business has gotten big, you can even look for a bookkeeper.
- Plan for important expenses
Although acute prediction can’t be done, there’s something like forecasting, analysing and developing some sort of a contingency plan. It’s not a witchcraft to be honest with you. If you are handling a business, you must plan your expenses.
Considering the time of financial year, tax returns and many other technical matters, business must plan major expenses. So, this is yet another important bookkeeping tip. Plan it, book it, and execute it. If your bookkeeping is done efficiently and timely it can help you immensely in tax planning for expenses.
- Tax research is very important
If you are business- whether big or small the tax paying specifications are going to be lot more different than as an individual.
Bookkeeping must work for the purpose to make transactions clearer so that at the time of lodging tax returns, there are no confusions and tax can be paid easily.
Follow all the rules and research about tax payment, how it is going to be easy and what way you can make maximum return out of it.
- Consider an investment in accounting software
With the advent of modern cloud computing, one can’t certainly ignore the multifaceted applications of cloud accounting software like myob, xero, quickbook etc.
With cloud accounting software, you can keep an eye on finances at all times. Tracking of GSTs, lodging taxes and all other financial calculations become easier with a software.
The major advantage of using software is that time and money is greatly saved.
|At Accurate Business & Accounting Services we can advice on the best software for your business, set it up for you, train you, and even do the bookkeeping for you on regular basis if you cannot spare the time yourself. We offer special discounts and packages for tax payers using multiple services from our firm like Accounting, Bookkeeping, Tax Returns, GST & BAS filing, etc. |