If you are serious about having a successful business do not fall into the trap of trying to be an expert at everything. Do what you do well and outsource what you do not do well.
An experienced bookkeeper who is up to date with government regulations is an asset to your business because they will keep your business government compliant.
The tax office does not accept ignorance as a reason for not complying.
Bookkeeping Mistakes Made by Small Businesses:
1. Not having an audit trail.
While receipts may not be required by the tax office, they provide backup documentation for the many deductions you claim. It is very simple to have a folder for such receipts, which can prove valuable at tax time, or if audited.
2. Doing it yourself.
No matter how much they hate it or how little they know about what is claimable and what is not claimable, many small business owners insist upon spending hours on the books themselves. Having a competent bookkeeper handling the finance side of the business is extremely beneficial in that they have the skills to do the job quickly and efficiently and will provide a second pair of eyes to find errors and make suggestions.
3. Forgetting to track reimbursable expenses.
Small business owners often pay for expenses out of pocket or with their own personal credit card then make the mistakes of failing to track these expenses. They then fail to submit the expenses to the company for reimbursement.
4. Not properly classifying employees.
The proliferation of independent contractors, consultants, and casual employees has made it difficult to determine who is on staff and who is not, and the government has guidelines which need to be understood by businesses.There are different rules and regulations for employees and non-employees.
5. Lack of communication.
Having open communication with your bookkeeper is very effective in maximizing the benefits for the business.
6. Not reconciling bank statements, credit cards and petty cash each month.
One of the fundamental aspects of bookkeeping is reconciling bank statements and credit cards every month. This is extremely important to ascertain the profitability of the business.Small businesses should be a miniature of larger businesses, and a larger business would never operate without understanding it profitability each month. A good reason for hiring an experienced bookkeeper.
7. A good bookkeeper will code transactions correctly.
There are fairly standard categories for expenses. Often expenses are entered into the wrong categories or too many categories are created. A good bookkeeper will use general bookkeeping guidelines for standard categorization and create as few new categories as possible. A good bookkeeper will use accepted accounting guidelines.
Angelique offers professional service with peace of mind. As a qualified and registered BAS agent, Angelique provides quality services combined with honesty and integrity, confidence, competence and lawful independence.