The Best Way for Small Businesses to Manage their Accounts
Even the smallest business is capable of generating reams and reams of paperwork. In some cases it gets filed away, while at other times it ends up in a shopping bag or shoebox, stuffed behind cabinets or under desks. Out of sight is out of mind, as they say, but there is a better way to deal with record keeping.
The question is, How can business owners manage their accounts in a practical, logical and sustainable way? To do it properly, you need two things:
- An organised system for record keeping
- The services of an astute and reliable accountant
Record Keeping Responsibilities
The onus for keeping accurate and up-to-date records falls on you, the business owner. Legal requirements state that records must be retained for 5 years so they are available for inspection or audit if necessary. Records may be kept on paper or electronically and should include all documents supporting income and expenditure relevant to your business, such as:
- Sales records, invoices, vouchers or receipts
- Cash register tapes, credit card statements, bank books and account statements
- Records of purchases and related invoices or receipts
- Motor vehicle expenses
- Stocktaking sheets
- Debtors and creditors list
- Capital gains tax
- Depreciation schedules
The Difference a Great Accountant Makes
Your accountant will help you get your paperwork in order, advising you what to claim and what not to claim. They will recommend appropriate record keeping software that matches your business needs with your level of accounting skill. Where necessary, they will train you to use the software and throughout the year they will remind you about relevant changes and deadlines you need to meet for things like your Business Activity Statements and Tax Return. All that paperwork serves another purpose as well, it informs you and your accountant about how the business is performing, making it possible to plan ahead and grow your business.
If your record keeping is an issue talk to us today and we'll get you back on track.