Too often business owners and managers get caught up working in the business rather than on it.

The truth is, that managing your accounts, staying in control of your finances, and making sure your business is compliant are crucial for long term success. So how do you avoid late nights or lost weekends working through those bookkeeping and accounting tasks that you either don’t know how to do or simply would rather not do?

Here are our tips for taming the paperwork monster and getting those boring accounting and bookkeeping tasks done.

1. Automate with cloud based accounting software

When selecting a suitable accounting software, consider the needs of your business including any possible integrations and add-ons required such as point-of-sale software and payroll requirements.

2. Separate business and personal expenses

Where possible, it’s important to ensure personal expenses are kept separate from business finances to avoid tax issues. The best solution is to operate a separate business bank account and avoid accidentally using the funds for personal spending.

3. Ensure you have a record keeping system

Solutions such as Dext and Hubdoc provide cloud-based record keeping for ease of access and to satisfy the record keeping requirements of the ATO.They also provide easy upload options via email or app.

4. Set reminders for important deadlines

Life can get busy, but ATO and superannuation deadlines are not flexible. Make sure you never miss a lodgement or a payment by setting calendar reminders a few days before the due date. This will allow for processing time and avoid late payment penalties.

5. Budget for tax and super payments

If you’re struggling with cashflow to meet compliance requirements, you could set your superannuation to monthly payments.Making smaller monthly payments rather than larger lump sums quarterly reduces the strain on cashflow. Another option is to set-up separate savings accounts for GST and Taxation to put aside for your next BAS or ITR whilst earning a higher interest rate on your savings.

6. Check management reports regularly

Keep an eye on your finances by reviewing your Profit and Loss Statement regularly. It will not only help you review your profit margins but help plan for growth. It is also a great way to manage expenses and identify areas which may be unnecessarily increasing. Similarly, reviewing your Balance Sheet helps keep your finger on the financial pulse of your business by showing current loans and finance obligations and liquidity.

Not convinced?

If you’re seeking a better work-life balance and the opportunity to work on your business and not in it, let us help. The team at PT Ignite combines years of management accounting and bookkeeping experience and can work with you to increase efficiency of your systems and manage the operational accounting of your business.

Contact the team today to get more hours back in your day.