Record keeping (also known as bookkeeping) is no one’s favorite task. However, the reality is if you own a small business, good record keeping is vital. Many start-ups, as well as existing business owners tend to neglect this aspect of their business until the end of financial year (EOFY) is upon them. By law, every business is required to maintain accurate and timely records.
I can’t stress enough how important it is to organize your accounts from the onset by setting up and using simple accounting software that suits your needs.
Here are 6 simple tips to make record keeping easier and less stressful during EOFY:
It is very important to be on top of this. Regular reviews will let you know how your business is going and allow you to control your cash flow.
It is important to keep your private transactions separate from your business transactions. In time, you can apply for a business credit card and apply the same terms.
If you are unsure which software to select, you may contact a business consultant or accountant that can better advise you before you buy. We prefer to use MYOB accounting solutions. With cloud software, one key benefit is that you can access your financials anywhere, anytime or have your bookkeeper or accountant check information for you.
Your files will always be backed up regularly in the cloud. However, always ensure you keep backups of your financial data as an added security measure. With desktop software, you will have to get into a habit of regularly backing up your files.