As a small business owner you have a lot on your plate. And most of it seems more important than doing your accounts.
But the fact is that your accounts need to be done, not simply to satisfy the taxman, but because your accounts help you to make better business decisions.
So, we thought we’d look at ways to make the job quicker and easier.
1/ Pencil It In
Set aside time every week to update your accounts and schedule the time as you would for a meeting.
It’s much easier to handle your accounts in small chunks regularly than to try and tackle everything at BAS time. And of course this keeps you on top of your financial situation!
2/ Write a “How To”
Create a process document that outlines all of the steps you go through each week, each month and each quarter. Now when you hit the books you can focus on the task, instead of trying to remember what it is you are supposed to be doing. This also enables you to delegate the task to someone else without a great deal of effort.
3/ Keep Business and Personal Separate
Keeping separate banking and credit card accounts for your business is going to save you a lot of headaches and confusion when it comes to managing your accounts.
Don’t fall into the trap of using your business credit card for personal expenses, thinking you can just reimburse the company later. It’s going to create nightmares when it comes time to do the accounts.
4/ Get Paid!
Make following up on unpaid invoices a critical part of your accounting process. A professional overdue reminder, sent on time, will do wonders for your credibility and cash flow.
5/ Pay Someone to do it for You
At some point you are going to need to consider getting someone else to manage your books. This may seem like an unnecessary expense, particularly once you get the hang of doing it yourself.
But as your business grows you need to ask yourself a few questions:
- Are you worth more to your business focusing on your primary role or doing the books?
- Do you have the same knowledge of deductions as a professional?
- Are you keeping abreast of changes in tax policy and law?
Once you reach a certain size, bringing in experts is worth your while. If you feel you are at this point please give us a call. We offer a full bookkeeping service that will manage your accounts and provide you with the information you need to make wise business decisions.