Bookkeeping lies at the heart of a thriving business. It isn't merely a legal requirement; it serves as a potent tool for monitoring your business's progress and uncovering potential areas for improvement. However, the true power of this financial reporting and tracking lies in its accuracy and effectiveness. To empower you with the best bookkeeping practices, we've curated a comprehensive checklist of essentials. Discover how these fundamentals can elevate the accounting and bookkeeping facets of your business while ensuring compliance with the BAS Agent Portal.
Keep a copy of your invoices
It is essential that you keep a copy of all of your invoices when purchasing goods and when providing them to others. This will help keep a nice and clear record of your transactions when they are needed and provide invaluable evidence of purchases or sales.
You should also take particular note of cash invoices. With the reliance on immediate records being made when we purchase things with a card, we often forget the need to request a receipt when making a cash purchase. As a result, cash records are often lost when it comes to bookkeeping. Additionally, as we begin to use cards for larger purchases and leave cash payments for smaller transactions, it is often believed that these invoices will be insignificant. However, the accumulation of these small purchases can often make a significant difference when aggregated at the end of the period. Thus, it is important that you request a copy of your invoices, placing particular care when making cash payments.
Don’t leave it for the last minute
Accounting is definitely not an easy task that can be done overnight. Firstly, it is important that you designate time to periodically carry out bookkeeping tasks. It can often be helpful to bookkeep at the end of the month in order to budget for the upcoming month and ensure that you are on track to achieve the goals and objectives that you have set out for your business. Bookkeeping monthly will also help to prevent a frantic rush to complete your accounting and bookkeeping obligations just before they are due. Additionally, inconsistent and infrequent accounting practices will prevent you and your business from accessing all of the benefits that are available from effective bookkeeping. Therefore, regular bookkeeping will help you budget better for your business’s future and help prevent any stress at the end of the financial year.
Use an accounting system that works for you
There is a growing variety of accounting software that is now available to choose from in order to carry out your bookkeeping needs. Whilst they are all ultimately designed to carry out the same task, there are slight nuances between different programs. Each person has different preferences, so it is important that you experiment with the range of options available to find which will best suit you and your business requirements. Once you find your favourite bookkeeping software, it is likely that you will be more willing to carry out your bookkeeping obligations and it may help to reduce the occurrences of small, administrative errors. As a result, your business is likely to bookkeep to a higher degree of accuracy and thus better enjoy the many benefits of effective accounting records.
Find a professional bookkeeper
We are able to provide you with an endless amount of tips and tricks to ensure that you can bookkeep to the best of your ability, however for some, accounting and bookkeeping is simply something that is not for them. This is no problem at all. You can easily ditch all of the hard work associated with bookkeeping and pass it on to a professional bookkeeper. With an abundance of experience, professional bookkeepers can help ensure that there are minimal errors associated with your accounting records whilst you can focus on the performance of your business without all of the technical reporting that is required for effective bookkeeping.
Bookkeeping effectively can be a difficult task, however, with the guidance of the above advice, you can begin to access a better record of your finances and unlock the variety of benefits that come from keeping concise accounting records. If you're looking for some extra help, simply book a consultation session with us now!
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