Bookkeeping sounds like a tedious job for everyone except maybe for the detail-loving, number-crunching professionals. But however uninterested you may be in this task, if you’re running a small business in Melbourne (or anywhere else in fact), you need to have a good grasp of this. Good bookkeeping practices can make end of financial year (EOFY) computations tolerable and ensure you’re one step safer in the eyes of the Australian Taxation Office or the ATO.
Two of the best advices you can get to make bookkeeping really easy is to invest in good accounting software and hire a reliable bookkeeper Melbourne. Doing these provides utter convenience and a whole new level of effectiveness in managing business funds. It’s also noteworthy to mention that bookkeeper Melbourne service is tax deductible in Australia. Here are other bookkeeping lifesavers whether you plan to do it on your own or not.
- Get a separate account for business funds. Not only this is good for your privacy and personal finance management, it also makes business bookkeeping organized. Start with a new business bank account and as your company grows, you may want to get another account for payroll and other regular expenses.
- Organize your receipts and other financial documents. The ATO actually requires you to keep these for at least five years, so as early as you can, create a system for organizing these, allocate enough space in your office for physical documents, and take photos for back up. Make this a habit or assign your bookkeeper Melbourne.
- Know your tax obligations and stay updated about changes. Tax and compliance requirements and schedules can make even the most organized people shudder. Avoid delays and penalties by setting up a system for this. Get business processes automated and set up alerts so you’ll have time to prepare and check everything before lodging.
- Review your books regularly. Stay on top of things even with a bookkeeper or accountant in your employ. Allot a few hours each week for this so you can always check where your company is headed and change plans if necessary. Of course, you need to have ample knowledge in analyzing these spreadsheets.