This week I'm excited to introduce our guest blogger Natalie Alchin from NCS Bookkeeping.
Natalie loves helping small business owners like you grow and develop their business. She ensures that you have up-to-date and accurate records which means that you can make better, more informed decisions for your business success.
Do you find business numbers a little overwhelming? Natalie has come up with some great tips to help you be more organised. If you found this article useful, be sure to follow Natalie and NCS Bookkeeping on Facebook for more tips and information on taking care of your numbers.
Happy new financial year!
I see a lot of business people this time of year feeling stressed about the mountains of paperwork they need sort through. Here are my top tips to help reduce your stress and keep you on top of your numbers.
Have a separate bank account for your business with either a Visa/Mastercard debit account or a separate credit card. This way all your income and expenses are in one place and you can have a good idea of your cash flow. If you are a sole trader, the best thing to do is deposit into your business account then spend the money from the business. If you need to take some money out, just transfer the money to your account then buy what you need. It just makes the business accounts cleaner and it is easier to see where you are at.
Know your numbers
Keep an eye on your turnover. Turnover is your gross business income. A bookkeeper can help you track your turnover and expenses so you know exactly where you stand when it comes time to report to the Australian Taxation Office.
You need to keep your business expense receipts. I’ve seen clients bring in shoeboxes of receipts. Some of them have faded, they are crumpled and they can’t remember what they are for. Think about getting a program such as Receiptbank or Hubdoc to keep your receipts in order.
Hubdoc can also upload bank statements and regular invoices such as Telstra and Optus bills. You simply take photos of your receipts and they are saved for 7 years. You can also set up rules and they will feed directly into your software packages.
Use an app
A lot of small business owners use spreadsheets to keep track of the profit & loss when they first start out. That is great but as your business grows you will need an easier way to take care of this. Decide what you need in a package and compare a few. Have a look at Quickbooks Online which starts at $15 per month. A Xero starter package starts at $25 per month. They both have some restrictions but it is a great place to start. You can upgrade either of these as your business grows. Also talk to your accountant or bookkeeper as they may have access to some special deals.
Put the funds aside
If you are registered for GST make sure you have a separate bank account and put the GST component of each invoice aside so that you don’t get a nasty shock at BAS time. Similarly, if you have employees, make sure you put their PAYG and Superannuation aside.
As business owners, we have to wear a lot of hats. You can’t do everything. Think about outsourcing some of the parts of your business that you are not so good at. Find a great bookkeeper, a social media guru and/or a virtual assistant to take some pressure off. You can then spend time growing your business or even enjoy some time with your family.
I hope these tips are useful and will help you get organised this financial year. If all of this still seems overwhelming, I can help you streamline your processes and take care of the paperwork for you.
Thinking about starting your own business but need some help with your numbers? Give Natalie at NCS Bookkeeping a shout!