Erika has just started a new cleaning business, and wanted help with her bookkeeping. She’d organised an Australian Business Number [ABN] and spoken with her accountant.
She’s isnt registered for GST at this stage, and as is typical for many starting out in small business, she’s spending more than she’s making, just setting everything up. She asked what to do about her bookkeeping. It’s a question that not many business operators think about until they get in a total mess with their paperwork.
The first thing would be to buy an invoice book to invoce her customers, and a concertina type filing wallet. That way she can keep all her paperwork together. All the bank statements in one pocket, all her receipts in another, all her creditor invoices in another, then in a few months time we can sort out the documentation and prepare any reports that she may need.
10 Seconds to save time and money on bookkeeping fees
A smart thing for Erika to do, which so many small business operators fail to do, is to remember to write on each creditor invoice the date,amount and payment method of that invoice. A simple 10 second job can save so much time when it comes to balancing the books.
Another tip would be to ensure that all business transactions are conducted through the business bank account. If she goes to the supermarket, she should ask the checkout operator to complete personal items as one transaction, and business items as another transaction. That way she’ll be able to put the docket relating to business transactions into her concertina wallet, to claim any expenses at the end of the year.
Next BAS due
