Just like how I can’t install a boiler or make a banging caramel macchiato, we don’t expect you to be bookkeeping experts and most people I speak to view bookkeeping with about as much enthusiasm as watching paint dry. However, be it for compliance with tax, GST or Company Law, as business owners we can’t avoid it.
Bookkeeping is simply recording all the cash going into your business and all the cash going out, in an organised manner. You might not need an all-bells-and-whistles system for bookkeeping just yet, but avoiding it and burying your head in the sand is not the answer.
Clear bookkeeping from day 1:
- Provides you with real-time information to monitor the performance of your company.
- Could result in you paying less tax as all business expenses are identified clearly.
- Helps you scale and grow, identifying areas for improvement and gives you a clear picture of your cash flow
- Saves you costly clean-up fees if you become a Limited Company or want to appoint a bookkeeper or accountant in the future.
My biggest tips that future you will thank you for are:
- Get a separate business bank account! This might feel like a hassle to begin with but I PROMISE YOU this is time well spent to avoid literal hours pouring over your bank statements trying to separate business from lifestyle expenses. This will also save so much on bookkeeping fees if you ever decide to outsource.
- Understand what is an “allowable” business expense. A defined ‘allowable’ business expense is when you spend money which is “wholly and exclusively” for the purpose of your trade. So where business use of a personal van is likely allowable, your Netflix subscription to do “research” is probably not! Having an understanding of this from the outset will make tax season go a lot smoother.
- Invest in bookkeeping software. Bookkeeping has come a long way and there are a wide range of affordable and easy-to-use solutions, no matter the size of your business. We can help with the initial account set-up to make sure you are on the right track.
Bookkeeping can feel overwhelming as a business owner and the costs of getting it wrong can be high. At BERRYS we can support you by providing one-off “power hours” to talk you through your responsibilities and get you set up, or right through to full done-for-you bookkeeping.
