In today's dynamic economic landscape, the significance of bookkeeping services and BAS agents for small businesses cannot be overstated. While the benefits of bookkeeping have long been recognized, the current uncertain economic climate underscores its crucial role.
Discover why seeking solace in numbers through professional bookkeeping services is essential for both you and your small business.
Cash Flow Monitoring
Running a business comes along with a range of unexpected events, both good and bad. The happy moments make running a business so fulfilling, however, the less positive occurrences cannot be completely avoided. It is important that businesses keep tabs on their cash flow to be able to plan for their future. With COVID continuing to pose an uncertain threat to society and the economy, it is critical for business owners to stay prepared for any sudden and unexpected lockdowns.
Saving up when possible and preparing some emergency cash can often be lifesaving in difficult situations. By bookkeeping and keeping track of available funds, you can better determine whether you may need to save up or even decide if your business is ready to take the next step and expand. In the current financial climate things can get really difficult and that is why it is best to take careful precautions with your finances, spend some dedicated time to properly analyse your business’ expenses and income in order to be prepared for any potential events.
Bills
A word that business owners see too frequently! Each week, it can often feel like you are being sent a never-ending list of bills and invoices to pay. Whilst it may seem easy to just simply pay them as they come, all business owners know that it can get overwhelming. We all are too familiar with the situation where we receive an invoice in the middle of a task, you say that you’ll get back to it once you’re free, but as usual, it just loses itself amongst the mass of emails in your inbox and a late fee is charged. It can be a never-ending nightmare!
However, by dedicating a time slot to bookkeeping, you give yourself the opportunity to get on top of all of your invoices and bills. Simply saying you will do things once you are ‘free’ is often not effective as this time can easily be taken away for other tasks.
When allocating a period of time for bookkeeping, you will organise your day in order to ensure that this time remains available. During your bookkeeping time, you can track your cash flow, record transactions and finally make those invoice payments. This will help to reduce any instances of skipping bills and save you from having to pay those hefty late fees.
Another option is to organise a time to sit down with a professional bookkeeper to go through your transactions or even give them full responsibility for managing your accounts and bills.
Taxes
It is often a misconception that you should begin organising your taxes just prior to submission, however, many businesses benefit from periodically keeping up with their taxes. Businesses that are registered for GST must submit a quarterly BAS and leaving the preparation of them to the last minute can get very stressful. Bookkeeping often encourages you to keep an organised record of your invoices and transactions. In this way, you will be able to easily retrieve any required documents when it comes time to lodge your BAS or taxes. This will significantly help to reduce the time taken to prepare government documents and avoid a frantic scramble to finalise any submissions at the last minute. Resultantly, you can spend your time focussing on your business during the increased demand at the end of the financial year rather than locked up in the office searching through your invoices!
Bookkeeping is a growingly important task that you must complete for the benefit of your business. Today’s unpredictable economy is only accentuating the peaks and troughs of the business cycle and by preparing yourself for what’s to come, you can avoid getting trapped in a difficult situation. Start bookkeeping today or organise a consultation session with us right now!
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