These are the most common bookkeeping errors that many business owners make and they are easy to fix. Here are 4 tips that will help you get your business back on track.
1. Accounting System
Have a good accounting system in place that you know how to use. There is no point having a fancy system in place if you don't know how to use it. Koller & Hassall can recommend MYOB or Xero depending on the feature you need. We can also organise training if you're having trouble using it. Having good software in place will make it so much easier for you to track income, expenses and make it easy to backup all your records for safekeeping.
2. Keep daily records
If your records aren't accurate and up to date you have no way of seeing where your business is heading. Many business owners use different record systems. It doesn't matter what you use, as long as you use it every day. It should only take you a few minutes each day to update and will make a big difference at the end of the financial year when we do your end of year accounts. It will also allow you to see what progress your business is making and where you need to make improvements.
3. Review cheques carefully
Cheques are as good as cash, so if something goes wrong you will be liable, not your bank. Always review all cancelled cheques before anyone else (including your bookkeeper) and this way you are more likely to catch any unauthorised cheques. If your business is a partnership it's a good idea to have dual signature cheques.
4. Make your bank statements end at the end of the month
This basic tip will save you much time! By coordinating your bank statements to end at the end of the month it will make reconciling easier and your statements will line up with your monthly budgets, GST and also make it easier to track your expenses for each month.
With these 4 basic bookkeeping tips, you'll find it easy to fix common errors many business owners make. If you need any help getting these tips into action within your business, give Koller & Hassall a call - we're here to help.