It’s a fact – business owners are time-poor, so thorough bookkeeping often doesn’t reach the top of the to-do list. Not only does this make tax time a headache, poor bookkeeping practices and last-minute scrambles to get your accountant the data and information they need to prepare your financials can also see you miss out on opportunities for business growth. So with a new financial year upon us, what better time to whip your business’ bookkeeping into shape and make this financial year your best yet.
Why Robust Bookkeeping is Essential
Sound bookkeeping practices should never be simply a “nice to have” – it’s a must. At its very core, and as a bare minimum, it ensures your business remains compliant with relevant tax legislation. ATO compliance aside, good bookkeeping practices can do so much more. When you have everything in order:
- You will save time on internal processes and procedures.
- Your accountant should require fewer (or ideally zero) queries when they prepare your financials.
- You will have a clearer picture of your business’ financial performance and health.
- Potential hurdles like cashflow issues can be identified and managed proactively.
- You will have the foundations set for effective business improvement activities like three-way forecasting and tax planning (see our recent article on that very topic).
Bookkeeping really is the epitome of “Take care of the pennies and the pounds will take care of themselves” – do the basics right on a daily basis with your income and expenses, and you might just find that everything else falls nicely into place.
Levelling Up Your Business’ Bookkeeping
In this day and age, the best way to get your bookkeeping up to scratch is to leverage technology. How are you using cloud accounting software and integrated apps right now? Where could improvements be made? Software programs like Xero integrate seamlessly with helpful tools to better manage your expenses & receipts. Customer Relationship Management (CRM) programs can also feed into your bookkeeping and accounting systems to improve the customer experience and facilitate a seamless transition from prospect through to onboarding and retention. The immediate upshot of leveraging technology and app stacks is greater customer engagement and lower costs, but over time you will see the benefits of improved productivity and transparency in your bookkeeping practices. All the data and information you need regarding your income and expenses will be right where it should be, easily accessible, and ready to use as a tool to fuel growth and eliminate waste in your business.
The second key area to improve upon when it comes to your business’ bookkeeping is to keep lines of communication open with your accountant and business adviser. The best accountants know what information they need to look after the compliance side of things, so be sure to lean on them for guidance about keeping your books tidy. Business advisory then formulates strategies to grow and expand your business on a foundation of well-managed internal bookkeeping and solid internal processes.
What to do Now
We’ve just entered a new Financial Year, so it’s just the right time to set a resolution to get your bookkeeping in order! Armed with the knowledge as to why thorough and organised bookkeeping is so important, you can go about implementing better practices in your business. Start by exploring technology and app stacks that you might be able to leverage to improve bookkeeping efficiency and accuracy. Even better, speak with a business adviser at People + Partners, and lean on our years of expertise. We’ve helped many businesses level up their bookkeeping, paving the way for accelerated growth and financial prosperity. To see how we can do the same for your business, please get in touch via our website, or call us on +61 2 9093 1311.