Tag: Belmont

4 Bookkeeping Tips for Small Business Owners

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.

  1. 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.

Remember these:

  • 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.

References:

https://www.bookkept.com.au/bookkeeping-tips-for-small-business-in-melbourne-victoria/

How to Manage Your Cashflow in 10 Steps

Cashflow is the real or virtual movement of money. While most of us have the general sense of what cashflow involves, many business owners struggle with adequate and streamlined cashflow management.

Don’t worry, it happens to the best of us…especially small business owners.

Want to know how to manage your cashflow better in 10 easy steps?

Read more from your local Belmont accounting team at Llara Tax & Accounting to find out more.

1. Avoid spending on non-essentials

Planning your expenditure for the next month, quarter or even year will save your business time and money in the future.

We budget in our personal lives (some of us better than others), so why don’t we for our business lives? Considering non-essential expenses in the context of your financial (cashflow) projections and if possible, staggering or delaying these purchases where appropriate.

2. Check your inventory regularly

Utilising a strategic approach to your inventory management is something you need to be doing.

Why?To avoid the unnecessary costs associated with poor stock management. Also, inventory checks will ensure you’re not keeping excess stock.

How can you do this? Start using an inventory management system and monitoring your inventory levels on the regular (1-2 times a year at minimum).

3. Consider Cloud accounting

Cloud accounting software allows you to access your financials anywhere, anytime.

We can help you find the best Cloud accounting services suited to your business.

4. Document your debt collection process

Everybody loves a paper trail. They make running a business that little bit smoother.

As you might have experienced firsthand, late payments can put a considerable strain on your cashflow.

So, what should you do? Make your customers and clients aware of your debt collection process and the action you will be taking if they fail to pay on time.

5. Keep on top of your invoicing

Small businesses must keep on top of efficient invoicing to maintain a steady cashflow. Do this by sending invoices ASAP that are clear with your terms and follow up on unpaid invoices.

6. Manage expansion

It’s important not to get in over your head when the success of your small business grows strongly and quickly. Remember growth should be sustainable, not quick and risky.

Talk to your Belmont Accountant about maintaining good cashflow for your growing business and managing a sustainable expansion.

7. Plan for emergencies

In business, expect the unexpected, especially that of cashflow shortages. Formulate a plan to access additional capital in emergencies.

8. Rent instead of buy

Why buy an office, machinery and/or business vehicle when you could lease them? This is a smart strategy for managing your cashflow.

9. Stay on top of costs

It’s oh-so-easy to lose track of not only time, but expenses too, when work is incredibly busy.

Remember though, that a handful of high-cost months can put a serious dent in your cashflow.

Your trusted accountant can help you stay on top of costs.

10. Trust in your local Belmont business accountant

Llara Tax & Accounting are here to take the complexity and confusion out of your accounting and taxation needs.

As a family owned and operated small business, we understand all the trials and tribulations that go hand in hand with running a business. With our personal, professional and proactive approach to our clients, you can rest assured that you’re in good hands.

Are you a local business in Belmont or beyond and need an accountant to help you manage your cashflow?

Contact Llara Tax & Accounting today.

References:

https://blog.earlypay.com.au/10-tips-for-managing-your-small-businesss-cash-flow