Proper Book Keeping is the Law
Did you know that it is a legal requirement for your business to have proper book keeping practices in place?
Do you know what proper book keeping practices are?
Your business must record and keep all documents relating to income and expenditure and all needs to be reported – in the correct format, to the Australian Tax Office at the end of the financial year.
Your business may already have a reporting system such as MYOB, Quick Books or Xero to record business transactions, but even small mistakes can lead to your business being penalized by the tax office.
Unless you have studied accounting, keep up with all the latest business news and news from the Australian Tax Office, it is unlikely that you are fully meeting your business’ reporting requirements.
Do you know the difference between a cash and accrual system?
Does the person who manages your books know what the per kilometer allowance is for employees driving for the business in their own vehicles?
Do you know the ins and outs of depreciation and how it can help manage investment in non-current assets and their useful life?
It is highly possible that your accounting and book keeping are more miss than hit in the eyes of the tax department.
Think Accountants manages tax systems for clients who use Quick Books, Xero, MYOB and will make sure that your business is capitalizing on all the possible tax breaks that you are able to claim.
Small business does not have to mean small accounting system and small plans.
You should be managing your business, running your business and performing the duties of the business, not tracking all expenditure and earnings down to the last cent.
There are many reasons to outsource your book keeping to an accounting firm, such as assistance in analyzing your business activities and making sure that you are realizing your full potential, helping you to seek finance to grow or manage slow cash flow periods and even just freeing up your time to manage the business, to do the things that made you passionate enough to start a business in the first place.
Unless you are an accredited accountant or book keeper yourself, you would be doing your business a huge favour to ensure that it is receiving plenty of accounting and book keeping love by outsourcing your accounts to someone who started book keeping because that is the business they are passionate about.
There are literally weekly changes to tax law, changes to the way payroll needs to be reported and changes to the minimum wages that will affect your business – you need to be on top of these things as they happen, otherwise you can be faced with a large back payment or fine from the tax office.
Using a book keeper can help you manage your business, assist in management reporting, support you with any queries or problems, keep up to date with the latest changes and also help you plan for the future of your business.