Categories: business

5 Helpful Accounting Tips for Small Businesses

Under the Australian Small Business Sector, small businesses account for those which has an active Australian Business Number (ABN) and a GST role. They usually have a turnover of less than 2 million AUD per annum, with less than 20 employees. Currently, there are about 2,065,523 small businesses in Australia that fit into this category. In Brisbane, Queensland, there are over 452,000 registered businesses, out of which 134,000 are small businesses employing 68% of the people. One of the most important aspects of starting a small business is handling bookkeeping. The business owners must either know how to manage their accounts or outsource them to small business accountants in Brisbane. Developing a systematic accounting strategy helps businesses sustain and grow. Here are a few tips to achieve the same.

Understand the Accounting Basics and Hire a Professional

The owners of small businesses must be aware of basic accounting to understand the company financials. They must understand where the money is coming from, where it is going and how efficiently it is being utilized. Those who have substantial funding must consult one of the best small business accountants in Brisbane, have them explain the basics of bookkeeping and take a look at the company financials. They also provide suggestions for better growth and sustainability.

Set Up a Main Business Savings Account

Registered small business start-up owners must first set up a business account that is separate from their account to keep track of the financials independently. Even though sole traders can legally use their bank accounts for transactions, it is easier to maintain a business account. It helps manage bills, taxes or investments, rainy day funds, control the income and expenses, get consolidated information for tax obligations and more. Business owners can also get benefits like business credit cards, tax waivers, banking services, investment opportunities and more.

Select a Good Bookkeeping System

Bookkeeping is the process of keeping track of the day-to-day expenses and the generated revenue. It includes recording financial transactions, categorising them, tracking receipts and reconciling the statement of accounts. It is essential to understand what expenses are happening every day to optimize them and submit them for audit. Small business owners can use bookkeeping software or hire small business accountants in Brisbane, considering what is best for them. Hiring a professional for accounting is best suited for small businesses as they would not have to invest their effort into the financial aspect of the business and focus on its growth, client relations and marketing. 

Determine the Business Payment Methods

Determining payment methods that the customers can use for purchases is not a simple process and can be overwhelming. Online payment methods like Apple Pay, Paypal, and Eftpos, credit cards and cash are some popular payment methods that are customer-friendly. However, the online payment service providers take a small cut of the transaction. Small business owners must consider these factors and decide the best and the most secure payment methods that the customers trust to help the business grow.

Maintain Receipts and Invoices for All Transactions

Mixing up receipts and invoices, losing track of them and not generating them are some of the most common mistakes that small business owners make. An invoice is a bill sent to the customers against the services or the product that the business has provided for them. A receipt is proof of the financial transaction. Maintaining them will ensure that all the books are balanced and ready for yearly review and auditing.

Salman Ahmad

I am Salman Ahmad an Engineer by choice, Blogger, YouTuber, and an Entrepreneur by passion. I love technology in my day to day life and loves writing Tech Articles on Latest Technology, Cyber Security, Internet Security, SEO and Digital Marketing. Blogging is my passion and I own some popular sites https://techowiser.com/, https://barlecoq.com/, https://geeksaroundworld.com/, https://elitesmindset.com/, https://minibighype.com/, & https://piticstyle.com/. I am super active on my social media accounts. You can connect with me on Instagram/Facebook/Twitter @TechloverSAhmad.

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