The most common accounting errors all small businesses should avoid.

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What do you think Number 1 would be, can I hear you….yes, your right?
BAD BUDGETING.

Bad budgeting might sound cliché but budgeting can make or break any business. A budget needs to give you a clear idea of how your business is tracking, whether you are breaking even or making a profit.

The next one is UNDERSTAND THE DIFFERENCE BETWEEN EMPLOYEES AND CONTRACTORS.

Hiring staff can sound exciting, when you tell your friends and family, I’m hiring staff because my business is going well. There are many pro’s and cons to both. Hiring an employee or a contractor has massive differences in terms of insurance, payroll tax, legalities and when it comes to staff who are actually employed by you, then you need to review if you need this help temporarily or on a long-term basis. Remember contractors are businesses themselves, they invoice you for the hours spent on the agree job.

The next one is NO ORGANISATION OR PAPERWORK.
It is so important to make sure your paperwork is in order, especially when it comes to tax time. Have a checklist of tasks to complete and keep your paperwork organised, legally you might hold files either digitally or physical for seven years in Australia

Oh, this one I see way to often MIXING PERSONAL FINANCES WITH BUSINESS

Many businesses say they don’t have a separate bank account for their business and that is a risky situation. Mixing up financial accounts for their business is difficult when you are trying to sort out your personal expenses (which are not tax deductible). Unless you are a sole trader, opening up a separate business account and not mixing business and personal expenses is a good idea, though I do suggest sole traders to separate the two as well.

The last one is NOT HIRING A BOOKKEEPER OR ONE AT ALL.

Many small businesses think that it will cost the earth to outsource, but there are so many benefits to outsourcing help, from saving time doing the books, hiring someone that knows the ins and outs of business finance, they will get to know your business and help you achieve your goals and address any weak areas in your budgeting or cash flow. They will keep you organised and your documentation will be correct and in order. Lastly, they take away the stress out of money management.

If this resonates with you, give me a 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

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!!

Common mistakes people do with Bookkeeping Software

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Many business owners saying I don’t need a Bookkeeper, because the software is so easy it does it for me.

I see many times when a client comes to me who has been doing their own books and entering data into the software and being honest, have completed excuse the expression ‘stuffed things up’.

People are allocating bank feeds to the corresponding income or expense account and saying I have completed my bank reconciliation but this is not a bank reconciliation you need to physically match your bank feeds to your physical bank statement to make sure the software says you have the same amount in the bank as your statement, without doing this you could be getting into a big mess.

I see many people coding incorrectly.

You  need to code your GST correctly as not every transaction attracts GST. Not every expense you put through your business account is a deductable business expense.

Another common mistake is not differentially between employees and contractors.

This one is another mistake, not going over your financial statements, the amount of times I see this happen, astounds me.

Not keeping receipts for business purchases, a simple but yet common mistake, so therefore what you are entering into your bookkeeping software is incorrect and people will then try to just put an approximate value, which is wrong.

Recording transfers as income is another big no no. Doing this can obviously inflate your revenue which in turn will increase the taxes you pay.

That is why outsourcing to a professional Bookkeeper is the only way to do business.

Call me today and let me explain how I can help you.

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!!