Your Bookkeeping Experts in Perth
To help you right away, we gathered a couple of helpful tips for all you small sole traders and first-time business owners out there. It is hard enough getting new clients, providing great service, managing employees and generally doing what you do best: Running your business on a day to day basis. Here are some tips to save you time and money on your bookkeeping.
- Choose a cloud-based accounting system.
All accounting packages are on a subscription these days. Your bookkeeper can set all of this up for you and provide training on how to use it. Popular applications like XERO and MYOB have storage systems so that you can upload your receipts and go paperless. Best of all, your figures can be accessed at any time on any device by yourself and whoever you wish to give access to, like your accountant and bookkeeper.
- Save money aside for those big expenses.
Many businesses start to have a problem when they don’t set money aside to cover those major tax and employee expenses that all business regularly incur. This is where an additional savings account to your trading account is helpful. A good bookkeeper will inform you when certain tax obligations are due and give you an idea of approximately how much to set aside to help you budget.
- Always have business and personal finances separate.
We recommend that you have business bank accounts and credit cards completely separate to your personal ones. Not only are there then less transactions to reconcile for yourself or your bookkeeper but you can also see very clearly what money is going out and coming in to your business.
- Make sure your customers are paying.
Businesses only survive with regular cash flow, this means money needs to be coming in all the time. Debt collection is costly and time consuming so avoid having to go down that path and regularly check who owes you for outstanding invoices. Build a relationship with the client and if they are not paying, make a phone call and ask: “How are you and when will I be paid?”
- Reconcile your accounts regularly.
With online accounting systems, it is easy to keep figures up to date and relevant. You or your bookkeeper (depending on requirements) should be logging in either weekly, fortnightly or monthly to reconcile. If your financials are up to date, you can make important business decisions.
These are just some of the many helpful bookkeeping tips for SMB. Get in touch with us today to see how we can help your business reduce paperwork and tidy up your books.