10 DIY Bookkeeping Tips to Get you Started
The digital sales industry has seen exponential growth this year and is predicted to cross $35 billion by 2021. These new opportunities have attracted many budding entrepreneurs in Melbourne and Sydney to become solopreneurs.
While many factors go into building a successful online business, bookkeeping, and knowledge of Australian taxation are vital factors to be considered.
Even if you are a professional wanting to file your personal tax and keep a track of your investment and finances, bookkeeping skills come in handy.
Getting an outsourcing company to handle your bookkeeping services is one thing, but if you want to save your dollar and have a hands-on understanding of accounting and taxation, here are some DIY bookkeeping tips to guide you through the process.
1. Utilize accounting software
Most professional accountants also use accounting software like MYOB, Sage, Wave, etc. for recordkeeping work. These software track daily transactions and can be customized/synced with any website for Business Activity Statement and tax records.
2. Monitor your cash flow
The first and foremost tip to evaluate the finances of a business is to keep a check on your cash flow. If the amount of capital coming in is higher than the expenditure, then you are on the right track.
3. Set up a filing system for record-keeping
This can easily be done by creating folders for Data entry, bills payable, bills to be filed in date order, etc.
Inquire with your accounting consultant about documents required to be submitted at the end of the financial year so you can maintain those statements.
4. Touch base with ATO (Australian Taxation Office)
ATO offers informative seminars and workshops for bookkeeping and similar topics designed for small businesses and professionals willing to handle their own finances.
You may even sign up with MyGov to submit all business activity statements and instalment statements online to the ATO.
5. Establish a chart of accounts
A chart of accounts allows you to allocate every transaction from your business to a category. That way, you can see exactly where your business is making and spending money.
6. Design your Business Invoice
Even if you are a freelancer generating bills monthly or a professional who pays their staff an invoice that reflects correct information always helps you get paid on time.
It also makes more sense at the end of the year when you are figuring our incomes from various sources.
7. Get your accounts payable systemized
Get your business registered for GST if required. Availing professional Bookkeeping Services plays an instrumental role to guide you in claiming GST as it does not apply to all goods that are sold and purchased. Exports do not have GST obligations.
Australian Taxation can be a bit complicated at times, so you should utilize the services of an Outsourcing Company for filing tax occasionally.
8. Create Checklists
Checklists aid the bookkeeping process a lot. They may sound basic but when you are dealing with hundreds of entries on a weekly, monthly, and quarterly basis, you will understand that checklist will make you do your basic bookkeeping work without negligence.
9. Chase your payments
Accounts receivables are where you get your bread from! Do not miss out on setting up a system to keep a regular check on whether your payments are received on time.
10. Make provision for fixed costs
Doing your accounts personally can be tough at times. Bookkeepers have a strict role to play in suggesting cost-cutting.
You May Also Like To Read: Qualities to Consider While Deciding on Modern Bookkeeper
If you do bookkeeping for your niche digital business, make sure you know all your fixed costs. These will include website maintenance, software updates, technical costs, office lease and utilities, salaries, and product updates.
Small businesses are growing fast in Australia. Individual professionals are also trying to save expenses by doing their own taxation. The above-mentioned tips will not only play a vital role in getting you started on the right foot but also build a base for a systematic accounting system.
Bookkeeping Outsourcing Services are always there in case you get stuck at some place or are unable to handle your entries.