Top 5 bookkeeping tips for your small business
If you’re one of the more than 2 million Australians who own a small business, congratulations. It’s often said that small business is the backbone of the Australian economy. That’s because more than 97% of all businesses in Australia are small businesses.
However, the failure rate of small businesses is high. Financial problems are one of the leading causes. Here are our top 5 bookkeeping tips to help you get your finances in order.
Tip 1 – Keep good financial records
Make sure you keep track of all your income and expenses. Eliminate or minimise any non-essential expenses.
Tip 2 – Review your cash flow regularly
Make sure you have enough money coming in to pay all your expenses when they fall due. If you don’t, you need to one or more of the following things:
· increase your income
· reduce your expenses
· adjust the timing of your income and expenses to suit your cash flow.
Tip 3 – Keep your business and personal finances separate
The simple way to do that is to set up a separate business bank account that’s only for business income and expenses.
Tip 4 – Use software to automate your bookkeeping tasks
There is a range of software available to help you to quickly and easily do your books and meet all your legal compliance obligations to the tax office and any staff you have.
Tip 5 – Outsource your bookkeeping to an expert
Bookkeepers help business people with their finances for a living. You can hire an outsourced bookkeeping expert to do as much or as little bookkeeping work as you need.
How we can help
If you want to make managing your business finances easier, our team at Scorpion Bookkeeping can help. We provide cost-effective bookkeeping support services to a diverse range of clients in South Australia, New South Wales and Victoria.
And if you’d like to implement cloud-based Xero bookkeeping software, we can help you with that as well. We are a Xero-certified partner.
Contact us today for a free, no-obligation consultation to find out how we can help your business!