When you own a business, good bookkeeping is vital. In fact, it's almost impossible to overstate the importance of good bookkeeping.
Here's a handy list of tips that will ensure you keep on top of everything and help your business run as smoothly as possible.
1. Open a Separate Business Bank Account
It's vital that you keep your private transactions separate from your business ones.
2. Get the Right Software
There are software solutions out there - such as Xero and MYOB - that you can use to make your life a lot easier. You can even integrate them with your POS system if you have one.
3. Know Your Tax Compliance Obligations
Knowing your tax compliance obligations is essential to avoid financial penalties. If you are unsure then it's best to get help from an expert.
4. Keep Your Receipts
The ATO requires that you keep all business records (including receipts, invoices and other records) for a minimum of five years. If you are ever audited you will need to provide them. Again, this is where the reight software can help, such as MYOB or Xero.
5. Outsource to save time
It is important to dedicate time each week to bookkeeping, to keep tabs on how your business is performing and manage your cash flow. If your time is better spent working on something else, employing a professional bookkeeper to take care of things for you can be a great way of increasing your productivity.