With the new financial year in full swing, this is the ideal time to focus on getting and staying organized. Properly maintaining your business’ records from the start of the year is something you’ll thank yourself for when EOFY comes back around. Remember that the ATO requires small business owners to maintain each record for at least 5 years from the time the record was last created, updated, or completed.
Of course, meticulous bookkeeping skills aren’t just valuable at tax time. A business with effective bookkeeping is able to make decisions that pave the way toward greater financial gain for the business. Strong bookkeeping lets you manage your cash flow and more readily see — as well as demonstrate to banks, for instance — exactly how your business is doing financially.
Here are the top 5 ways you can make bookkeeping a breeze this year:
1. Eliminate the paper trail with remote bookkeeping.
The amount of paper involved with bookkeeping is a large part of the reason why bookkeeping isn’t exactly most people’s favorite thing to do. If you spent last financial year searching frantically for old receipts and documents, or if you were just plain frustrated with how much time bookkeeping can take from running your business, you should consider a remote bookkeeper. With our remote bookkeeping service, you just open an app on your phone and take a quick photo of the record you want us to maintain. That’s it! The staff at TCA Darwin will take care of the rest. We’ll pull your image through a secure portal into your accounting software, such as Quickbooks, Xero, or MYOB Essentials, and we’ll reconcile your accounts. Time saved, and stress avoided.
2. Maintain a Separate Business Bank Account.
Especially if you’re just starting out, you may be tempted to use one bank account for both your personal and private financial needs. Of course, if your business is a company, partnership, or trust, opening a separate account just for your business is an ATO requirement. But, even if you’re a sole trader, you should still consider opening a separate bank account. A business bank account will make separating your personal expenses from your business expenses — a tax time necessity — a whole lot easier. A separate account is also another way to monitor your cash flow, income, and expenses, as well as more easily retrieve transaction details. Plus, it will add to your business’ professionalism.
3. Devote Time to Your Recordkeeping.
As difficult as it may be, try to set aside time to focus on the administrative side of your business. Pick a certain day or time where you can focus on making sure that all of your records are accounted for and properly filed away, either electronically or traditionally, as well as monitor your business’ cash flow. Don’t forget to invoice customers and to check on invoices that have already been sent, but not paid. The last thing you want to do is let all of your paperwork pile up. Doing all of this may feel tedious, but since it all plays a vital role in your business’ financial success, it’s definitely worth it.
4. Consider Cloud Accounting.
The wave of the future, cloud accounting can make your bookkeeping a whole lot easier. Xero, Quickbooks, and MYOB Essentials are all cloud accounting systems that keep all of your documents in one place, allow on-the-go access via the web, or even a mobile app, can be easily updated with changes, and provide your remote bookkeeper or accountant with live access to your books.
Make This Financial Year Your Easiest Yet
Give us a call or visit TCA at our Darwin or Palmerston office. We’ll set you up with our remote bookkeeping service, help you choose the right cloud accounting software for your business and budget, and even do a “health check” on your current state. This way, you’ll spend more time doing what you do best — growing your business!