Starting a business is an exciting adventure, but it can also be overwhelming at times, especially when it comes to keeping track of your financial records. Many business owners struggle to keep up with their record-keeping while balancing other priorities such as making sales, servicing clients, and managing employees. This can quickly become a problem when it's time to report to the ATO and all the information is not in order. In this beginner's guide, we'll show you how to stay on top of your record-keeping obligations without sacrificing all your time.
Establish a CRM System
The first step to keeping accurate records is to establish a CRM (Customer Relationship Management) system. A CRM system is a tool that helps you keep track of your clients' information, such as their contact details and service/order history. Today, there are many CRM systems available, from apps and websites to cloud-based and desktop solutions. If you're already using accounting software, you may find that a CRM system is already integrated into the package, which will help streamline your business operations.
Remember Your Reporting Obligations
It's essential to keep track of your reporting obligations, such as lodgement due dates for your BAS (if you're registered for GST or PAYG) or your payroll process dates to pay your employees. Make sure to also note down when an activity is actioned, such as sending GST documentation to your accountant. Keeping accurate records will ensure that everything is in order in case of an ATO audit or if you need to look back on previous work.
Don't Let Your Bookkeeping Pile Up
One of the biggest mistakes business owners make is letting their bookkeeping pile up. To avoid this, set aside 10 minutes at the end of each day to update your records. This will save you time in the long run and help prevent errors in your bookkeeping. When you only have a few transactions to review, it's easier to spot any discrepancies, whereas if you wait until you have hundreds of transactions, it can be challenging to catch everything.
Ask Your Accountant for Advice
Your accountant is an expert in both taxation and bookkeeping and can provide valuable guidance on what you should be reporting as income and expenses to the ATO. If you're not sure about keeping a receipt or categorizing a transaction, don't hesitate to ask for their advice. If you have any notes or concerns, make sure to bring them up at the end of a reporting period so your accountant can address any errors or clarifications.
At iBusiness Group, we have a team of experienced accounting professionals who can assist you with all aspects of your business reporting. We can help you stay on top of your record-keeping obligations, avoid the stress of falling behind, and ensure that your reporting is in order. Contact us today at 1300 857 985 or visit our Gold Coast office to learn more.
