4 COMMON BOOKKEEPING MISTAKES

BOOKKEEPING

You may have been doing your business bookkeeping for quite some time, or possibly you are just starting a new business venture. Have a flick through these top 4 common bookkeeping flaws to see if you recognise whatever you have been doing in your business.

Where should you choose a new bookkeeper? Either use someone that you have individually satisfied and whom you are feeling has your business’ needs in mind, or you can talk to your accountant and other companies for his or her advice.  Find out what education and experience they may have.  In Australia, they need to be anauthorised BAS Agent to ask you for a fee for BAS related services.

The three main benefits of engaging the services of a professional contract bookkeeper instead of selecting an in-house bookkeeper are:

  • You do not need to pay superannuation, trip pay, sick pay, holiday break leave loading or WorkCover.
  • You do not need to provide extra office space and equipment or to be tied to the office looking forward to them to complete their work – many bookkeepers will do your bookkeeping off-site.
  • They are simply business owners as if you – they know the ups and downs and how the small company world works.

Combining Personal and Business Financing.

Don’t get too swept up in the early levels of starting a fresh business to disregard this one – it is an important one! Even for singular investors, not separating finances can cause serious headaches. Get a split bank-account organised and ensure all business income goes in here from day one.

Not Reconciling Standard Bank Accounts

Reconciling your business bank accounts is absolutely one of the essential fundamentals of good business bookkeeping. Where I work, it is done daily – because of this any data admittance errors are picked up while everything is simple to recollect. You may only need to do it weekly or monthly. Viewing your bank claims frequently will also help keep you in tune with your cash flow situation. To put it simply, reconciling means that your standard bank statement suits your business books. Bank account fees and interest get joined into your books, and presented cheques can be implemented up. Many accounting software programs can be set up for automated bank or investment company feeds – doing a lot of the task for you.

Bookkeeper Not Keeping Receipts

Get into the habit of keeping every business-related receipt – lay claim every expenditure you have anentitlement to and make sure you have proof purchase if you are ever audited. Good company and filing will help with this one. Place a spike on employee desks for bank card and gas receipts. Get employees into the regime of emptying their work vehicles of any car parking tickets. Promptly record away paid charges. If you are uncertain whether you can lay claim the expense, keep the receipt carefully anyway and ask your BOOKKEEPERS at duty time. Easy!

  1. Getting back of with the books

Small enterprises often have to juggle many roles and bookkeeping will sometimes have to be on the back-burner. If you are at the point where you cannot keep on top of your bookkeeping, consider hiring a professional freelance bookkeeper or part-time bookkeeper. It is important that at any time you can try your books and create the financial health of your business – whether you are making earnings, whether your customers are paying within terms, what you owe. If finding a bookkeeper isn’t an option, get into the routine to do a little of the bookkeeping often. For more detail: http://www.bookkeeperco.com.au

Part Time Work that yields Full Time Travel Benefits

If you’re interested in the field of bookkeeping, you’ll find that it is an ideal profession for someone who wants to work part-time.  There are traveling bookkeepers who make their living taking on a few clients a month, and make enough to pay the bills, supplement their pensions and combine their love of bill paying with travel.  Such a job would have been nearly impossible to pull off before the cloud made storing and sharing files so easy.  Now with a secure connection, you can find time in your travels to provide the service your clients need even when you are miles apart. Going paperless is the best way to manage as a travelling bookkeeper.  Life is so much easier when you can download all the bills, bank statements and receipts.  You can even receive texts of last minute items that must be included in the report, and easily update it. 

If you decide to travel, using the services of Hotwire to book your travel needs is a smart way to save time and money.  Especially if you add Groupon to the mix.  Hotwire is already known to millions for finding the lowest prices, but with Groupon codes, you can unlock more discounts that will favorably impact your bottom line.  Bookkeeping is all about time and money, using Groupon deals to save as much as 60% off hotel rooms and rental cars for less than $10 a day saves you both.  But it’s the quality of the rooms at the hotels they list that give people the best experience.  You’ll find 4-star rooms at 2-star prices, and can use the money saved to enjoy your vacation more.  That means more sunsets on the beach, more delicious meals in beautiful restaurants, and if you want to take a cruise, Hotwire can help you with that also.  All the while, as long as you have a strong, secure internet connection, you can continue to work for your clients.

Bookkeepers duties vary, but are usually charged with monitoring expenses, paying bills, downloading invoices managing accounts payable and receivable and making sure all the financial documents that should be included in the monthly report are accounted for.  By combing work with travel, and travel with Hotwire and Groupon, you can enjoy a lucrative stream of income for a long time.

How Do You Become a Certified Bookkeeper

 Have you always wanted to be a certified bookkeeper but weren’t sure where to start? There is a lot of information on the internet and it can be intimidating to search through. We hope to streamline the process and help you become one of the bookkeepers Melbourne as quickly and efficiently as possible!

The official designation for a bookkeeper is CB (or certified bookkeeper). Their job is to provide bookkeeping and payroll services to mostly small businesses.

How do you become accredited?

Certification is done through the American Institute of Professional Bookkeepers. Founded in 1987, this organization now has over 30,000 members! Their goal is to keep their members up to date on all applicable tax codes and changes, help them find jobs and answer questions through a hotline that they provide free of charge. Per their website, they state that “Small businesses often have only a bookkeeper as their sole financial officer. Now they can rely on that de facto CFO as a highly qualified and certified expert, complete with the experience, training and qualifications provided by a program established by the American Institute of Professional Bookkeepers.”

How do I become certified?

The exam itself consists of four parts – four tests and two work book exams. There will be questions covering the entire scope of what it takes to be a successful bookkeeper. You should be prepared to answer questions about deductions, accruals, revenue recognition concepts, payroll, etc. They also will ask you about federal reporting forms and tax information. You can purchase study guides through the AIPB website at a small cost. In order to become certified, you must also have at least two years of full-time experience and sign a code of ethics. There are more than 500 accredited facilities you can take your test at. It costs $25 for members and $60 to register and the exam itself costs $200.

Once certified, you are required to complete 30 continued education credits yearly to maintain your certified bookkeeper accreditation.

What are the advantages of becoming certified?

                 – Increased market value of your services! Certified bookkeepers with up to date accreditation make more money per client than bookkeepers without that certification. This could potentially   add up to thousands of dollars a year over someone that is not certified.

– Looks great on your resume! Clients looking for knowledgeable bookkeepers tend to be on the eye out for certifications. This insures that you’ll be the best person for the job – ready to handle all their accounting, bookkeeping and tax needs.

– You can add the CB designation after your name to add professional clout. How good does   Jane Smith, CB sound? Many potential employers will take you more seriously with an official designation like that. It may be the difference between your resume being looked at or set aside!

If you want more information, check out the American Institute of Professional Bookkeeping website at http://www.aipb.org/index.php or refer to www.bookkeeperco.com.au. Good luck on your quest to become a certified bookkeeper!