How To Keep Your Bookkeeping Under Control
Being organised and having your bookkeeping under control is important for all aspects of your cash flow management. Whether or not you have a cloud-based accounting system, there is still always plenty of paperwork that needs maintaining. Therefore, it is imperative that you ensure that your online and offline systems are up to date.
As the end of financial year is fast approaching in Australia, it is time you got everything in order. Here are some of our top tips to make sure that happens and enable you to get your bookkeeping under control.
Organise your storage
Filing cabinets, or at the very least a set of three ring binders, will come in handy for most of your physical storage needs. While today’s offices are leaning towards a paperless theme, most companies find that there is still the need to have some paper stored, whether receipts, invoices, statements or reports. If you do scan things like petty cash receipts, then it is important that your online filing system is arranged for easy access, if necessary. You must keep all of your business information for five years to please the minimum Australian Tax Office requirements, after that time the records can be disposed of.
Set aside regular time
We understand the fact that not everyone likes to do bookkeeping. In fact, often it is left to the very last minute, and administrators and creative entrepreneurs can struggle to sort through the mess of paperwork. The best way (and often the only way) to keep up to date is to set aside time to do it on a regular basis. Whether daily or weekly, take a moment to go through your receipts and add them into the system. Then once entered, file them accordingly and reconcile them against your bank statement at the end of the month. There is nothing worse than trying to sort through twelve months of receipts in one go just to get your taxes in order.
Take good bookkeeping notes
Don’t just rely on your memory when it comes to remembering facts. Leave yourself plenty of notes in your online and offline systems. That way, when it does come time to enter in the information or update your files, everything is there. This goes for your corporate accounts, cheques, invoices and journal entries. Your notes will save you time and money. Trying to remember things after the fact and ensure 100% accuracy can be problematic . It is amazing how one small miscalculation can affect your books; therefore, the more notes you take, the better.
Avoid mixing personal and business accounts
Always try to keep your personal and business accounts separate. Have a different bank account and credit card at your disposal and avoid using one for the other. Differentiating your accounts is one of the most important things you can do for your business. Having to go through all of your accounts to find a few business transactions can be painstakingly dull. Maintain your professionalism from the get-go, and there won’t be issues further down the line.
Hire a professional bookkeeper
If you struggle to manage your accounts, then the best thing you can do is outsource it. The stress of falling behind can quickly overcome you and stop you from performing your best for your business. As soon as you arrange for a bookkeeper to provide you with some assistance, you will feel a sudden weight lifted off your shoulders. Outsourcing the task will give you back your time to concentrate on the important tasks, leaving the challenge of bookkeeping to the professionals.
Upgrade your accounts software
Using sub-standard bookkeeping software to manage your books can make the problem more difficult. Not only can it be time-consuming, but it can also be an ineffective way to link all of your accounts. Upgrading to a system such as Xero will give you more control over your books. And moving forward, it will give you the confidence to update it on a regular basis. With safe and secure data storage and the flexibility and mobility of Xero, we wouldn’t recommend anything else.