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The Bookkeeper’s Guide: Top 10 Tips to Start Your Business Off on the Right Foot


Date Posted:

May 15, 2024

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  • Introduction

Starting a new business is like embarking on a thrilling adventure, but we all know that challenges lie ahead. From marketing to staffing, there’s a whirlwind of tasks to tackle. And amidst this chaos, don’t forget about the unsung hero of your business success – the bookkeeper! So, let’s dive into our top 10 tips to ensure your business takes off with a bang!

Top 10 bookkeeping tips for new business owners

1. Get the right software

Say goodbye to the old days of making your business fit software limitations. With advancements in accounting software, find the one that fits your business needs like a glove. Talk to a bookkeeper who can guide you towards software with efficient features and time-saving advantages.

2. Understand your software

Once you’ve found the perfect software match, make sure you and your staff know how to operate it. Unlock the secrets hidden within and extract valuable information to fuel your business decisions.

3. Configure your software properly

Customise your software to deliver the precise information you need. Ensure it reports accurately to statutory authorities like the Tax Office. It all starts with a well-configured general ledger tailored to your business.

4. Build reporting disciplines

Great software is just the beginning. The real magic lies in the information it provides. Historical data empowers you to make informed decisions about your business’s direction. Determine the type, timing, and frequency of reporting, and assign roles to individuals who will produce reports. Don’t let valuable information slip through your fingers!

5. Build a strong accounting team

Forge a close working relationship between your bookkeeper, accountant, and administrative staff. Clear roles and effective communication will prevent duplication and issues from slipping through the cracks. A strong accounting team ensures top-notch reporting and high-quality information at your fingertips.

6. Confine each person’s role

Time is a precious resource, and your time and your employees’ time should be spent on tasks that yield the greatest value. As a business owner, avoid getting caught up in tasks that limit your ability to operate at a higher level. Look at the bookkeeping function through this lens and determine which tasks your bookkeeper should handle to maximise everyone’s time.

7. Focus on cash flow

Ah, the lifeblood of every business! Cash flow management is crucial, especially in the early days. Failure to plan and manage cash flow can suffocate your business’s growth. Keep those wheels turning smoothly by managing the billing cycle and collections promptly. Neglecting these simple functions can drain your finances faster than a leaky bucket.

8. Build good systems

Efficiency is the name of the game in business. Take a close look at your record-keeping function and establish robust systems for procedures, source record filing, and reporting. Document the system and assign responsibilities to the appropriate individuals, including employees, your bookkeeper, and your accountant.

9. Understand Tax Office reporting obligations

Don’t let the Tax Office be the villain in your business story! Many businesses stumble early on because they fail to grasp their record-keeping obligations for income tax and GST purposes. Stay on the right side of the law by understanding what you owe, and when you owe it, and avoid any unpleasant surprises.

10. Manage employee obligations

Being a small business employer can sometimes feel like navigating a maze. With various authorities and rules to juggle, it’s easy to get lost. Consider if you want to face this workload alone or seek outsourced assistance from a bookkeeper. Let them handle the intricacies while you focus on growing your business.

Looking for a Bookkeeper for your Business?

Let us be your trusty sidekick on this exciting journey!

Book your 30-minute FREE Discovery Session with Chris and the team at AMC Biz Solutions, your Hunter Valley bookkeeping experts today!