Bookkeeping Blog
Advice and tips for Australian Businesses
The worst bookkeeping mistakes that most business owners don’t realise
There are a number of mistakes business owners don’t even realise they are doing and in my years of bookkeeping experience, I have seen so many.
- Not setting up your chart of accounts
If you are doing your bookkeeping yourself, try not to use what the bookkeeping software provides as it may not be relevant. It’s beneficial to build your own and also make sure your GST codes are correct. - Setting up your Petty Cash account in Assets
If you have an office petty cash tin, it is not an asset. So, don’t setup an account for it. - Not setting up payroll correctly
Oh, boy have I seen some doozies in my time. It is extremely important that payroll and employees have been setup correctly. Include the employees DOB, TF and ensure their penalty rates are correct and also don’t forget that your linked accounts are correct, which includes tax, superannuation etc. - Reconciling incorrectly
This includes all bank and credit card reconciliation, BAS reconciliation and payment summaries and superannuation. - Assets or liabilities as expenses
By now you should know the difference between the two, but many business owners don’t. I can definitely help you and explain the difference.
It sounds simple, but why would you do this yourself, when you can outsource this to me.
Call me anytime on 0429 363 047.
Maree Punzet | Maree’s Mobile Bookkeeping | 0429 363 047
You didn’t go into business to do your Payroll and Bookkeeping, BUT WE DID
We are a full service, insourced Payroll and Bookkeeping business that puts money back in your pocket. Our team works like a full-time employee and part of your business when it comes to processing your Payroll and bookkeeping, but without the cost or other concerns full time employees bring. When compared to a full-time employee, we give you all the benefits and more but save you around $60,000 a year in costs, makes good financial sense!!
What Happens If You Overclaim on Tax?
It is always in your best interest to deduct the maximum amount your entitled, but deliberate attempts to overclaim can definitely attract harsh penalties from the ATO.
Up to 75% of the claim.
The ATO are cracking down on work-related expenses and rental claims as more and more people are working from home.
More people are overclaiming rental expenses, claims for cars, travel, internet and mobile phones.
Records should be kept for the following and remember by tax law you need to keep your tax receipts for 5 years.
These are the following plus always good to keep a electronic copy as paper receipts do tend to fade.
- sales receipts
- expense invoices
- credit card statements
- bank statements
- employee records (wages, super, tax declarations, contracts)
- vehicle records
- lists of debtors and creditors
- asset purchases.
Don’t overclaim on tax and if you are stuck what you can and cannot claim, please contact me direct on 0429 363 047.
Maree Punzet | Maree’s Mobile Bookkeeping | 0429 363 047
You didn’t go into business to do your Payroll and Bookkeeping, BUT WE DID
We are a full service, insourced Payroll and Bookkeeping business that puts money back in your pocket. Our team works like a full-time employee and part of your business when it comes to processing your Payroll and bookkeeping, but without the cost or other concerns full time employees bring. When compared to a full-time employee, we give you all the benefits and more but save you around $60,000 a year in costs, makes good financial sense!!
Tips on teaching kids about money
This might be one of those things you think about from time to time, but I think teaching kids about money in the early years will set them up during their life.
I am a mother of 2 boys and have tried to install good money and spending habits. I have tried to teach them the value of money and how saving up for something is much better than buying something on credit.
Saving is such a long-term habit and could make a huge difference in a kid’s life if you teach and start them young. Even pocket money or making them do some more chores around the home for a bonus at the end of the week ie match a dollar for a dollar in their bank account for example.
It is about teaching kids’ simple strategies about the difference between wants and needs.
A great place to start it explaining the basic needs, ie food, water, shelter, you can reinforce the concept of a want versus a need. When you go shopping with your child and they have asked for a treat when you walk down the confectionary aisle. Unless it’s a special occasion, firstly don’t walk your kid or kids down that aisle (bad idea), but unless they have earned it during the week, then it is a treat for them, because they washed dad’s car or helped put clothes on the line.
Kids should be given goals, it’s too easy to give kids everything they want, they won’t appreciate working for things like cars and houses as they get older if you as a parent have just always given them what they wanted, when they wanted.
Get kids to make a vision/goal board and help them write out what they want and how they can reach that goal. Let them earn their own money and they can start ticking off that vision board each item they have worked for, be it doing more chores around the house for pocket money or saving more each week into their bank account.
Show them and explain to them about compound interest, the earlier and quicker they start saving it will grow so much in only a few short years.
I realise this isn’t so much bookkeeping related, but I think it’s an important one to touch on, as adults if we are clever about money, we can to be saving money and using our money wisely in business.
Maree Punzet | Maree’s Mobile Bookkeeping | 0429 363 047
You didn’t go into business to do your Payroll and Bookkeeping, BUT WE DID
We are a full service, insourced Payroll and Bookkeeping business that puts money back in your pocket. Our team works like a full-time employee and part of your business when it comes to processing your Payroll and bookkeeping, but without the cost or other concerns full time employees bring. When compared to a full-time employee, we give you all the benefits and more but save you around $60,000 a year in costs, makes good financial sense!!
