Invest in technology
The latest innovations in Accounting/bookkeeping software make it easy to be efficient, accurate and up to date but only if you use them.
Find a good bookkeeper
A good bookkeeper can train you on your software, answer any questions and fix any mistakes that might have been made. You should feel free to ask for help when it comes to running your business in the best way possible. Your business will only thrive if your financial affairs are all in order.
Keep personal and business accounts separate
It’s a lot easier to keep accurate records if there isn’t any guessing as to whether it’s a personal or business expense. A lot of time will be saved by keeping these accounts separate.
Plan for major expenditure
Set aside money for major expenses like large stock purchases, office equipment and repairs and maintenance. By budgeting for these types of expenses, the funds will be available when you are ready not when you can afford it.
Set aside money for taxes
Setting aside money each month towards paying your businesses taxes will mean your ATO obligations will always be met on time.
Keep and eye on your Creditor Invoices
You want to be paid on time and so do your creditors. Late and unpaid bills can affect your businesses credit rating and suppliers have been known to increase prices to poor payers. Keep your bills organised and always pay on time.
Reconcile bank accounts
It is important to do a bank reconciliation for bank accounts, credit cards and petty cash. You will have accurate and up to date information including profit and loss and be able to manage cash flow. It will also cut down the amount of time needed by your external accountant in preparing your year-end figures for tax.
Avoid spending cash
If cash is used, it is hard to keep track of spending. By using a debit or credit card you can keep track of amount spent, where it was spent and when it was spent. This makes tracking your expenses much easier.
Regularly check up on your debtors
Decide what your terms of trade are (cash, 7 days, 30 days etc) and then make your customers stick to it. Regularly running an accounts receivable report and issuing monthly statements to clients will ensure you are paid for the work you do and help with your cash flow.
Good filing system
Maintaining a good filing system is imperative in keeping your paperwork organised. You will always be able to find ‘that piece of paper’ when you need it. Or go one step further and create an electronic filing system and do away with ‘that piece of paper’ altogether.
