I get asked this question quite a bit and it all depends on your own circumstances, but good financial management from the beginning is essential so that you can work efficiently and you know how your business is performing.
Here are a few tips to help you:
- Schedule a couple of hours each week or fortnight (depending on the size of your business) into your calendar or diary to do invoicing, pay bills, payroll (if you have any) and follow up unpaid accounts. If you are using an accounting program you could reduce that time.
- At the start of the month schedule some extra time in to reconcile your bank account(s), credit card(s), process superannuation and BAS/IAS (if required monthly) and prepare your reports to see how your business is performing (eg Profit & Loss Statement, Balance Sheet).
- If you report the superannuation and BAS/IAS on a quarterly basis then allow time each quarter to prepare these.
- It is important to open a business bank account, so that you can keep your business and personal transactions separate.
- End of year (EOY) requirements – your accountant or bookkeeper will usually send through a checklist of tasks that are required to be done and provided to them to process the tax return.
- Setup some procedures to help keep on top of things. We can assist with setting up the procedures or provide the templates to help.
By following these steps, it will decrease the state of overwhelm because you have put off doing you bookwork for so long and there is so much to catch up on. Even if you miss a week, at least it’s not months.
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