The most common accounting errors all small businesses should avoid.

/in , , , , , , , , , , /by

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!!

The worst bookkeeping mistakes that most business owners don’t realise

/in , , , , /by

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.

  1. 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.
  2. 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.
  3. 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.
  4. Reconciling incorrectly
    This includes all bank and credit card reconciliation, BAS reconciliation and payment summaries and superannuation.
  5. 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!!

Does your business comply in a COVID-19 World?

/in , , , , , /by

Every business has a duty of care and especially now Post COVID. It has never been a more important time to businesses to stay on top of the ever-changing compliance obligations.

If you have staff, you need to consider and review the following

  1. The changing employment laws in Australia ie Awards
  2. Those returning to the workplace, if they have been working from home during lockdown
  3. If your staff are remaining working from home on a full time or part-time basis
  4. Payments and leave entitlements
  5. Reviewing your staff working hours, location and duties
  6. Standing down employees or ending their employment due to COVID

There is so much to consider during and post COVID-19. We in Australia are not out of the woods yet, we could get more waves of COVID in different states, business will never ever go back to what it used to be and I personally think, that is a good thing.

But be vigilant, stay on top of compliance and if you need me to look at these things for you, please do not hesitate to 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!!