• New Wave Accountants

Quick Tips to Make Small Business Bookkeeping Easier

Small businesses dominate the economy in some Australian states. Businesses in this economy need good habits to succeed, such as bookkeeping and accounting. For example, Australian small businesses report their finances via the Australian tax system.


Quick Tips to Make Small Business Bookkeeping Easier


1 - Separate Business and Personal Finances


While bookkeeping can be challenging, it is not impossible to track business and personal finances separately. Thankfully, there are many bookkeeping options to help you separate everything. A common example of how to separate finances is to open a separate account at your bank that is solely business-based. You can even open bank accounts that are only for paying taxes and keeping business-related documents. If you don't want to open separate accounts, you can use spreadsheets to separate the finances.


2 - File Necessary Documents


Paperwork is a necessary burden of running a business. However, it doesn't have to be a burden on your bookkeeping efforts. If you don't want to file all your paperwork, you can use a scanner to scan all your documents. You can then keep only the scanned copies, which are easier to organize.


3 - Do Quarterly Reviews


Tracking business finances for the whole year can be a lot of work. However, you can make it a lot easier by doing quarterly reviews. In this review, you keep track of your business growth and make adjustments accordingly. For example, you might need to hire more employees based on your business growth.


4 - Keep Track of Cash Flow


Tracking cash is an important aspect of bookkeeping. It allows you to see exactly how much money is coming in and going out. While you can't rely on cash flow, it can be a helpful tool to see how much money you should have and don't have.


5 - Request Professional Help


If you lack the finance or bookkeeping knowledge to start a business or operate one, then you can always request help from a professional. One of the best ways to get help is to ask your friends, family and business associates if they can recommend bookkeeping professional. You can also visit your local area chamber of commerce to see if there are any members that offer professional bookkeeping help.


A small-business owner can save a lot of time and headaches by hiring professionals for bookkeeping for their small business. Bookkeeping can be a lot of work for a small-business owner, but it can also be rewarding when it is done correctly and in a timely fashion.


6 - Keep Receipts


When you buy supplies or inventory, you should keep your receipts. This will allow you to claim back taxes by tracking what you purchased and when. When you purchase inventory or supplies, it might not be tax-deductible. This can be a huge financial loss. When you keep receipts, you can read the documentation and ask your tax professional if you can claim the expense on your taxes.


Conclusion


Bookkeeping is an important part of running any business. It allows you to see how much money is coming in, going out, and whether or not it is profitable. Bookkeeping can be challenging for a small-business owner. However, by following these five tips, you can make your business' bookkeeping process a lot easier.


Should you be looking for a business accountant, come to New Wave Accounting. Unlike many Small Business Accountants on the Gold Coast, we provide end-to-end accounting and bookkeeping services that help scale & grow businesses. We understand small businesses and have worked with over 600+ businesses in several industries. This has allowed our Gold Coast Accountants to understand each industry and create tailored solutions for our clients.


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