Top Bookkeeping Tips and Practices
At Pherrus, we offer bookkeeping and payroll services in Sydney to enable you to manage all business operations and prevent an audit by ensuring you submit your revenue on time.
Bookkeeping is necessary for any business. We recommend that you always use best bookkeeping practices to keep your business moving towards realising your long-term goals and improving your profits. Below are essential accounting practices you should follow.
Always separate personal and business expenses
Have a dedicated business account that includes both a credit card and checking to save time when tallying up deductible expenses. It saves you major headaches along the road.
Track every expense
Categorise and label each expense and track all cash flow to ensure you do not miss out on cash credits and write-offs. Use the business credit card for all purchases. Using a credit card gives you an opportunity to earn cash back and rewards for your expenses. If you only use cash payment method, simply file digital copies of the receipts to your accounting software for accountability.
Record deposits accurately
You can end up paying unnecessary income taxes if you forget revenue and loans from sales and other cash infusions. Inquire from your accountant for the best accounting way of recording the deposits.
Understand when it pays to pay
You can hire an accountant or professional bookkeeper even for a few hours in a month or week. It will make a big difference as the professional will update your records in an orderly manner. The professional bookkeeper will seal all loopholes, potential fees, and additional tax deductions which you are eligible to pay.
Knowing the fundamental accounting terminology helps you get tax advantages. Hire an accountant who can elaborate things to you in a language you can understand.
Dedicate time for updating your books
Dedicate some weekly time in your calendar for handling all the necessary paperwork to avoid letting invoiced receivables and receipts pile up on your desk. Stick to the time you have set and only handle bookkeeping work at that time.
Keep tabs on all labour costs
In any business, paying employees is usually the largest expense. Always take care of the perks, overtime, and other employee benefits to prevent underpaying or overpaying.
Expect major expenses
Computer upgrades, tax deadlines, and equipment replacements should not surprise you. Larger capital expenses come during slower months. Therefore, plan ahead to prevent getting a cash crunch.
Maintain inventory records
Always avoid misplacing your merchandise by taking note of the purchase dates, purchase prices, stock numbers, sale prices, and sale dates. Inculcate better organisation in your business for better inventory records.
Scrutinise your receivables and invoices
Just because you sent an invoice does not mean you will receive payment. Always avoid overpaying your taxes. Spend hours going through your receivables listing and revenue account by contacting vendors who owe you money.
Accept online payments and use cloud accounting software to help automate the accounting process. Remember, finance is the backbone of the business. Therefore, learning proper accounting and bookkeeping practices is necessary.
Pherrus helps you implement affordable and convenient bookkeeping services. We are also able to help and advise you on the appropriate payroll services for your situation. If you are looking for assistance with bookkeeping and payroll services in Sydney, get in touch with us at http://pherrus.com.au/ for more information.