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