Bookkeeping Blog
Advice and tips for Australian Businesses
What are the key accounting trends to watch in 2022
New technology is the big one when it comes to bookkeeping and accounting. The shift to digital transformation has accelerated during COVID and changes to remote working practices.
The growth opportunity for auditors has also increased, showing that during the pandemic that from a business perspective, those businesses had to become increasingly accountable, not just for their finances but for the sustainability of their operations.
Consumer demand increased during this time and many businesses had to adopt changing working practices.
Artificial Intelligence (AI) has completely changed the face of accounting operations, it has helped reduce errors, optimised workflows, whilst still assisting with real-time business decisions based on data driven insights. Demand for AI based accounting software has increased, due to the rise of digital payments, fuelled by the pandemic over the last few years.
Lastly is cryptocurrency, though still in its infancy, and increasing number of agents are adding this to their skillset. The demand for cryptocurrency services is growing rapidly and expertise in this area is niche. Presenting a significant market opportunity for accountants to seize.
Maree Punzet | Maree’s Mobile Bookkeeping | 0429 363 047
You didn’t go into business to do your Payroll and Bookkeeping, BUT WE DID
The top 5 Bookkeeping habits you should start if you own a business
With 2022 in full swing, it’s definitely time to pick up some great bookkeeping habits that will enhance the rest of the year.
1. Keeping the proof of your purchases.
The number of times I speak with business owners who have not kept receipts, get themselves in all kind of trouble. If you can keep a proof of purchases, ie receipts, these receipts will help in determining your cash flow, the more data we have on hand, the better. You can save your receipts using different tools, create a digital space that stores your receipts. There you can share them with me as your bookkeeper.
2. Setting up due dates for business payments.
Business payments are things like rent, utilities, taxes, payroll. Missing any of these payments can cause major issues for your business. The best way to avoid this, is by setting reminder on the due dates of these payments.
3. Keep a petty cash system on hand
Petty cash is there to help your business with small expenses. For example, office supplies, reimbursing employees for expenses. The fund is generally only filled with a few hundred dollars and exists to keep track of the small expenses that staff often forget to hand receipts in for.
4. Record your receipt and invoices
This one is so important to keep in order. Keeping receipts in numerical order, categorised by date allows you to streamline your bookkeeping. You will then have a audit trail which makes it easier to track back if needed. This helps bookkeepers find specific receipts or time periods easily.
5. Get a bookkeeper
That’s where I come into the equation. The best thing you can do for your bookkeeping in 2022 is to outsource to a bookkeeper. I can make running your business far easier, taking those time-consuming tasks off your plate. Ensuring accurate regular reports are completed, ensure your data is available to use. This will also ensure you have the latest data to back your business decisions, bringing clarity and confidence to any business owner.
If you would like to have a chat with me anytime, please text, call 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
Will Interest rate increases affect Businesses?
No matter who you talk too in Australia, we all know that interest rates for homeowners has increased at .25% for most homeowners with a variable mortgage loan.
Do interest rates affect businesses too?
The answer is YES.
When it comes to customers who pay interest on personal loans, home loans and car loans, the higher the interest rate, the less money in a customer’s pocket.
This can reduce their ability to buy products and services, so businesses may see a decrease in sales.
With relation to the cost of borrowing, interest rates rise, banks charge more for business loans. This means you will need to use more of your earnings to pay interest on your loans, which then decreases profit.
This can stop many business owners from starting new projects or expansion during periods of high interest rates, which then impacts the growth of the business.
When interest rates are low, businesses are confident and they can borrow more readily. When they increase, then the confidence lowers and could have a negative effect on the business.
Everything depends on the economic environment.
Businesses who invest their excess cash in interest – bearing accounts will make more money during periods of high interest rates, when rates are low, business are more likely to use their cash for new equipment and plant improvements.
As we know, there will be further interest rate increases happening during the year and will be interesting what impact this will have on businesses.
If you would like to discuss further, please don’t hesitate to contact me 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
