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Bookkeeping Habits Every Business Should Have

Starting your own business can be daunting and overwhelming. In this short article I am going to give you some tips about a few bookkeeping habits that if you follow consistently, you will find very useful and hassle-free in the long run!

  1. KEEP YOUR RECEIPTS!
    Keep the proof of your purchases. Every business-related purchase must be proved to the ATO. I find that the easiest way to keep a receipt is to take a photograph as soon as it is given to you (no excuses, you always carry your phone with you!) and save it somewhere on your phone. At the end of the month, then it’s easier for you to send all the receipts to your bookkeeper, so they can verify your purchases against your bank statement.
  2. RECORD YOUR INVOICES AND RECEIPTS
    If you use computerised accounting software, then it is easy as the software will automatically create the Invoice number and record it for you. However, if you use something else to create/send your invoices other than the computerised software, then record your receipts and invoices as soon as they are created. This will simplify everything in case you need to go back and find an old receipt, and, most importantly, it will save you lots of time!
  3. GET A BOOKKEEPER THAT IS ALSO A BAS AGENT
    The best thing for business owners is to get a bookkeeper who will look after all of their invoices/receipts/payroll/BAS/etc! If you do it yourself, it will take 4 to 5 hours per week to get everything done (only if you have some basic accounting knowledge). A qualified bookkeeper and BAS agent such as myself will take care of your books, providing you the time and energy to concentrate on running and growing your business.
  4. BE AWARE OF YOUR PAYMENT DUE DATES
    Being aware of your ATO debt due date is essential to avoid fines and penalties. The same concept applies to all other expenses such as rent, electricity, and all general business overheads.
  5. CONCENTRATE ON YOUR CASH FLOW
    Cash flow is the money coming in and out of the business during a certain period. It is essential because enables your to meet your short period financial obligations and plan for the future.
    Some business owners give lots of credit to their clients but it is important to know that cash is key, especially for small business owners.
  6. KEEP A PETTY CASH SYSTEM IN PLACE
    Some small businesses such as sole traders probably won’t need it. Most businesses though will need a good petty cash system in place for small expenses like reimbursing employees, office supplies, etc. A small amount such as $200 will be enough to cover those expenses.

If you find that keeping up with this habits is too much for you and/or you don’t have the time, reach out! We are here to help 🙂

2 comments

  1. You actually make it appear really easy along with your presentation but I in finding this matter to be actually one
    thing which I believe I would by no means understand.
    It seems too complex and very huge for me. I’m taking a look ahead for your next put up,
    I’ll attempt to get the hang of it!

  2. Hi Twicsy

    It takes a while and lots of practice before you can master it! We suggest to start from the very first day you are in business and within a few months it will be effortless! Often business owners don’t have the time to do it themselves, or their accounts are more complicated, and that’s when e step in.
    Feel free to reach out if help is needed!

    North Brisbane Bookkeeping

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