Seven bookkeeping tips for small businesses by Tracey Edwardes

 

There is an old saying: “If it can’t be measured: It can’t be managed.”

All businesses large or small need to have a bookkeeping system in place that provides them with financial records for their business.  This is a core fundamental of any business.

Many business owners find bookkeeping a daunting task.  However it is critical that accurate records are kept up-to-date. Whether you employ a professional bookkeeper or undertake the task yourself timeliness is critical.

Here are seven easy to implement tips that will help you develop an efficient and effective bookkeeping system for your business.

 

  1. Bank statements – print your bank statement monthly and check every transaction is valid.  If you are using bookkeeping software most programs have a bank reconciliation procedure.
  2. Create a filing system – we recommend that you store all your financial records by Financial Year.  Decide how you will file your supplier paid invoices.  You can either file them by month or by supplier name, which ever you prefer.
  3. Deposit money daily – if your customers pay you by cash or cheque we recommend daily deposits. This ensures that transactions can be easily identified yon your bank statement.
  4. Keep separate accounts – Separate your business and personal bank accounts in order to reduce the time your accountant will require in order to prepare your tax returns.  It enables you to have an accurate picture of the REAL results of your business.
  5. Petty Cash – Have a petty cash fund.  We recommend you have a physical petty cash box with a pre-determined float. Use a petty cash book available of your stationary story to keep track of petty cash receipts and expenses.
  6. Treat it seriously – allocate time every month to ensure your accounting records are up-to-date and review your financial reports.
  7.  BAS Agent – if you use a professional bookkeeper to lodge your BAS quarterly or monthly please ensure they are a Registered BAS Agent. For more information about these legal requirements please visit www.tpb.gov.au

Tracey Edwardes is the director of Flawless Bookkeeping and Flawless Systems.  Tracey supports and mentors small business entrepreneurs to help them understand their financial statements.  Tracey can be contacted on 1300 854 266 or tracey@flawlessbookkeeping.com.au

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