Author: Jaqquline Lawrie
Book-keeping is vital for the smooth operation of any business, big or small. A book-keeper’s duty consists of storing financial statements and recording it in a manner that an accountant can easily interpret. Don’t stress though, with these simple 3 tips you will be able to manage your book-keeping with ease.
1. Invest in Accounting Software
According to Milan from Bookkeeping Services Brisbane (Milan Accountants), Organisation is key when book-keeping and accounting software will save you time and space.
According to the Australian Government, record keeping is a legal requirement and records need to be stored for a minimum of five years. While the government cites records can be kept on an electronic device or paper, using accounting software such as Quickbooks and Xero are highly recommended as you can constantly back-up your records and store them securely.
Cloud-based accounting software is also a must when investing in software as you can access it anytime and anywhere. In some instances, you might not even have to download the software straight to your computer and you can just access it online and log into your account. It’s important to research what software suites you and your small business.
2. Set Aside Time Each Week for Book-keeping
Book-keeping should be performed each week with a minimum of 3 hours set aside. Rather than wait to do it quarterly it’s necessary to get your books in order weekly. No nasty surprises and if an issue was to arise it can be dealt with in a timely matter. When going through the books each week ensure every invoice has the information filled out properly, it contains the ABN and GST status and all urgent invoices have been followed up.
3. Put Money Aside for Taxes and Major Expenses
Preparation is vital when book-keeping and by putting money aside each week for expenses will save you worrying in the future. Year-end taxes should be one of these expenses as it can sometimes be expensive and by doing this you’ll be prepared, ready and you won’t have to cut back when the time comes. Another outlay to save for is major expenses like stationary, inventory, repairs and maintenance. These expenses sometimes go unnoticed but by setting money away each week you won’t have to worry if a problem or urgent purchase is needed.