bookkeeping tips

5 Tips for Keeping Your Bookkeeping in Order

Let’s face it wouldn’t you like to be more organized with your business finances and minimize the cost of any outsourced bookkeeping?

Who wouldn’t? There are lots of income generating expenses that could do with the extra cash you free up by paying as little as possible on bookkeeping.

1. Use Dedicated Business and Credit Card Bank Accounts

Ensure that you set up a separate business bank account.
Your personal bank account should be used purely for personal transactions, and all business transactions should be made with your business account. Never mix the two; it’s a recipe for disaster. 

And let me say one thing about those frequent flyer points that you are giving up by not using your personal credit card to mix business and private – the purchasing to redemption value can be less than rewarding. Compare the actual saving you will make on bookkeeping fees by either acquiring a business credit card or if you are a start up using a personal credit card but only making business purchases on it.

2. Keep an eye on your Customer Outstanding Invoices

Businesses often have clients who forget to pay their invoices on time, which opens up issues with cashflow for your business. It may result in you delaying making your payments, or having to hold off on additional purchases that may be an investment in the growth of your business. Either way, ensure you have a system in place to chase those who owe you money in a timely fashion.

There are programs that can do this automatically, such as Xero and if you really want to get fancy you can invest in add-ons like Ezy-Collect, Debtor Daddy or Chaser to name a few, to save you time from chasing debtors manually.

3. Invest in Easy to Use Cloud Software

If you have an easy way of recording transactions, you’re more likely to stick to keeping your bookkeeping organised. Xero is online accounting software that offers a fool-proof way of keeping up to date with all aspects of your business financials.

It’s an extremely user-friendly cloud-based program which means you can access data from any device, in any location. No excuse not to keep on track even if you’re away from the office!

4. Keep Your Receipts

One main reason why business owners dread getting started on their bookkeeping is that they must find all their receipts.
Are they stored in a filing system? In your wallet? In a shoebox?

Setting up a good system for storing your receipts saves so much time in the long run, and saves you re-thinking where that safe place was for that purchase you made months ago. Find a filing system that works for you.

We recommend storing receipts digitally, and saving them to the cloud. That way, there’s no chance of losing anything, plus you can access from any location. Talk to us about a variety of lowcost digital options. Remember you have to keep those receipts for 5 years. Now, wouldn’t that be oh so easy if they are stored with the actual transactions in your cloud accounting software. Too easy!

5. Save Time and Money by Outsourcing the Hard Bits

Yes, you may want to do it all. But you do need to sleep and have time for yourself, family and friends.

You may also lack the expertise required to ensure everything is completed as required for lodgment at the end of each quarter. There are tricky areas of GST compliance and accounting which are best left to professionals and will save you time and money by ensuring you have a great set of accounts to take to your Tax Accountant at year end. Not only that, but by outsourcing you always have someone looking out for you, ensuring you lodge on time, giving you important feedback if things look like they might not be going to plan.

Talk to us today about how we can lighten the load and make running your business effortless and fun!

About the Author Josephine

Jo Roberts in a cloud integration magician. With over 20 years experience in business, Jo is passionate about ensuring business owners know exactly how they are tracking with their money. Jo also holds partnerships with the major leading software systems: Xero Silver Advisor, MYOB Certified Consultant, Intuit QBO Pro Advisor, Reckon Accredited Consultant... and many more!

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