EOFY is right around the corner. You’re not ready. It’s stressful – but it doesn’t have to be. With a little help from an expert bookkeeper, you can be ready for tax time – and reap savings you never knew you had!
No matter what your business structure is – Sole Trader, Company, Partnership or Trust – you’ll need help with your BAS, IAS and payroll (including STP) at the very least. While it’s possible to learn the basics of bookkeeping, as a business owner, there are a myriad of tasks that need your attention. To ensure your business success, it’s best to hire a professional bookkeeper to help you not only keep on top of the financial position of your business, but also to let you know if there are any red flags you might have missed if you’re too busy.
Time is a finite resource and when you’re running your own business, you need to make sure your time is spent in the best possible way. Often, when you’re trying to do too much, nothing gets done well, if at all. Time also has a habit of slipping through your fingers and if you’re not careful, soon you have a pile of unpaid bills, unsent invoices and your cash to cashflow cycle is crashing.
Savvy business owners don’t try and do it all themselves. They reach out for expert help and then manage their resources, giving them time and the head space to manage and grow their business.
Up To Date
Your business runs as well as your cash flow. Without it, your business will grind to a halt and maybe even not get back up and running. As a small business owner, you may be aware that 60% of businesses in Australia fail within the first three years, and of those that fail 50% are profitable!
Starting a business is hard work, and a lot of stress. Over time, this makes an impact. Drive and determination will take you so far. Business owners who are good with coming up with solutions have a better chance at business success. Poor financial management is a business killer, especially when financial outsourcing can seem so expensive, however that is a key reason why businesses fail.
Think of all of the money that you’ve outlaid to start and run your business. Without the proper advice, these costs will be more than hiring a bookkeeper if it all falls over. Being penny wise and pound foolish will hurt you more than paying your monthly outsourcing fees.
Pro Tax Tip: Outsourcing your bookkeeping and accountancy needs are tax deductible costs of running your business, as is hiring a tax agent to handle your tax affairs.
Lets’ face it, as a business owner, doing your books is often done at the end of the day, late at night or on the weekends. You’re usually tired and have other responsibilities that need your attention – and your mind is not 100% on your bookkeeping tasks.
Keeping accurate business records is vital for your business. Keeping your books involves recording each transition accurately. Knowing how much you’re spending versus earning is key. It’s common for business owners to underestimate certain expenses while over estimating others. With accurate bookkeeping, you don’t have to guess.
It’s best not to guess when it comes to payroll and PAYG. Your employees rely on you for their salary and wages, but also to pay their Pay-As-You-Go (PAYG) tax, superannuation and Medicare obligations using STP in your accounting software. The Australian Taxation Office (ATO) is vigilant when it comes to your employee rights. As well as keeping a track of your expenses and income, your bookkeeper will maintain your general ledger. Your general ledger shows you your assets and expense accounts and is a snapshot of your business’ financial health. Without knowing the details of your company’s finances, it’s difficult to evaluate opportunities for growth and investment.
High Cost Work For An Accountant
Bookkeeping and accounting are both important aspects of managing your business. Your accountant is there to interpret, analyse and consult on your businesses financial position, while a bookkeeper records this data. You accountant will recommend how your business spends its money, what financial concerns it may have and how to manage and reduce tax. Without a bookkeeper, your accountant will not be able to make accurate decisions and forecasts about your business.
A house isn’t built without a solid base, and it’s the same with your bookkeeping. Without the accurate recording of day to day financial data, your financial decisions may make or break your business.
A good bookkeeper will use and manage your accounting software to make sure every record is added. They will enter expenses and income as well as cash, cheques and EFTPOS transactions, handle banking activities, manage financial approvals, maintain records and archive as needed assist with audits and flag discrepancies. A bookkeeper will manage the day to day financial obligations of your business disclosing payments of GST, BAS, Payroll, PAYG and superannuation. They will also take care of staffing financial obligations, such as long service leave, insurances and work cover.
An accountant will manage your data, provide financial analysis and consultation, analyse financial reports and regulatory compliances. They will also recommend how your business can legally reduce tax and take advantage of government schemes, tax offsets, depreciation and instant asset write offs.
ITP Accounting Professionals have helped Australian individuals and businesses with their tax for over 50 years! ITP specialise in accounting and bookkeeping for sole traders, companies, partnerships and trusts. One day or five days a week, ITP will tailor our service to meet your needs. Phone 1800 367 487 and speak with a friendly professional today.