If you’re a business owner, keeping a close eye on your accounts and bookkeeping as well as checking all incomings and outgoings such as payments is vital. If your books aren’t up to date and your accounting records aren’t accurate, your business is bound to financial failure. However, if you know how your business stands when it comes to finances, you are more likely to be in full control and your company will be on the road to success.
We can think of many reasons why it is important to keep on top of your bookkeeping when running a business but here are the 3 main factors that you can take into account to ensure your business finances are running smoothly.
1. KEEP EVERYTHING IN ORDER
At any type of business, it is vital to keep everything organized especially when it comes to your company finances. It is also important to seek help from a professional bookkeeper if you’re a sole trader to make sure everything is done correctly. Though It is seemingly straightforward, bookkeeping quickly becomes more complex when tax, assets, loans, and investments come in.
Making sure these things are in order can allow you to make business calculations quickly. When you adopt good bookkeeping habits and an orderly structure from the beginning, you will find it easier to prepare year-end documentation, tax deductions, learn your financial position and improve your company’s business finances.
2. STAYING ON TOP OF TAXES
Businesses of all sizes are responsible for paying taxes on their earnings. Keeping good records is important in preparing your tax returns so you meet all necessary tax obligations. Minimizing tax liability is an important part of staying legally compliant. If you don’t accurately track and pay your taxes, you could find yourself facing a huge tax bill at the end of the year.
If you own a business as well as working full time or part-time job, make sure to separate your income from your business accounts. If you’re a freelancer and have multiple incomes coming in multiple times from different channels, make sure you have a list of where these incomes are coming.
3. TAKE CONTROL OF YOUR BUSINESS ACCOUNTS
A well-kept set of books means you are not in the dark about your finances. When your information is up-to-date, you can make informed business decisions. When the time comes to do your tax planning, you are prepared and you know exactly how much you can afford to spend to maximize your deductions, and can get good advice.
With Axia Accounts and Bookkeeping, not only will you have a professional bookkeeper to look after your accounts, you will receive regular, simple-to-understand business reports giving you a better insight into how well your business is performing. Also, all our clients have access to our cash-flow strategies to make their business more profitable.
If you need help or guidance, schedule a no-obligation meeting with one of our bookkeeping experts. Our professional bookkeepers will help you with your books and give you better cash-flow, and will free up your time.
We also offer mobile bookkeeping services to all suburbs.