Keeping financial records is a lot easier said than done for many small business owners.
This is especially true for the busiest of business owners, who are heavily involved in all aspects of business operations. However, bookkeeping is an essential task – allowing business owners to see if/how their business is truly profitable, letting
Fortunately, if DIY bookkeeping is proving more hassle than it’s worth – you can always count on your
Struggling to keep on top of your bookkeeping?
Read more from the Kewdale Accountant team at Llara Tax & Accounting for 4 tips to make bookkeeping a breeze.
- Find the best format for financial record management
There’s two ways in which you can record and store your records: electronically or in paper format.
Of course, there’s no right or wrong way to do it, however, the Australian Taxation Office (ATO) does recommend using electronic record-keeping if possible. Why? Because in the digital era, businesses are increasingly adapting to electronic reporting for tax and super obligations.
Follow these practices:
- Storing financial records in a secure place (be it in-house, off-site or digitally)
- In a place you have access to (including passwords)
- Backed up in case of system failure
- And allowing your control of information that’s entered, processed and sent.
Now it’s time to get everything in order and find out what’s happening with your money.
- Record each debit and credit correctly, referencing the right account.
- Ensure a modern payroll software to ensure compliance and ease of use.
- The ATO accepts images of business paper records saved on an electronic medium, providing they’re true and clear, of course.
- Choose your bookkeeping method
Wanting to do your own bookkeeping still? It’s time to pick the best method for you.
You can decide on either manual or electronic bookkeeping:
- Manual bookkeeping involves books and ledger accounts, it’s cheaper to set up, data is unlikely to become corrupted and duplicates are often avoided, too.
- However, now is a good time to go electronic for your bookkeeping method.
This is mainly due to less physical storage required, automatic amount calculations, plus report generation and back up is made easy.
More flexibility is afforded with electronic bookkeeping as you get to pick accounting software, web-based systems, point-of-sale systems and/or spreadsheet management.
- Remember to record and reconcile
Recording and reconciliation is where even the best small businesses owners sometimes fall short. So, don’t forget to always record your sales and transactions.
Don’t forget to regularly cross-reference your business books against your financial statements, too. The sooner you reconcile transactions, the faster any errors can be found and rectified.
- Seek professional bookkeeping for peace of mind
If any or all of the above has got you feeling blue, you can always rely on a Belmont bookkeeper and accountant, instead.
Look to Llara Tax & Accounting for all your business accounting, taxation and bookkeeping services.
Our tailored services and dedicated professionalism ensure your business needs are well looked after, with no room for error.
DIY bookkeeping got you down?
Contact Llara Tax & Accounting and discover how our team of Kewdale Accountants cover all bases of business bookkeeping.