Even if you are not trained in bookkeeping, it is crucial to have a basic understanding of its principles.
Misallocation of funds and lack of knowledge regarding superannuation and shortcuts can have detrimental effects on your business - Multiple examples of this in my experience which cost far more than employing someone with the right expertise from the very get go
Designing a Wage Structure
Create a wage structure that aligns with your personal budget as per previous module
Ensure that all income and personal expenses are managed through your personal account to maintain clarity and transparency - Don’t muddle your business expenses with your personal expenses. Meaning your wage is yours, to spend how you wish... the remaining stays within the business as profits.
Implementing a Consistent Wage System
Set up a direct debit system to pay yourself a consistent wage on a weekly basis.
Adhere to this system to maintain financial discipline and avoid unnecessary fluctuations in your income - and delving into business profitability. Be realistic with the amount you can pay yourself
Managing GST and Tax Obligations
Consult with your accountant to determine the amount you should set aside for Goods and Services Tax (GST) and income tax.
Establish separate bank accounts to allocate funds specifically for GST and tax payments (monthly) as advised by your accountant.
The Role of Bookkeepers and Accountants
Recognize the significance of bookkeepers and accountants in maintaining accurate financial records and meeting regulatory requirements.
Instead of solely focusing on cost-saving measures, prioritize finding a reliable and competent professional to handle your financial matters.
Benefits of Outsourcing Bookkeeping and Accounting Tasks
Outsourcing these tasks to specialists ensures that potential errors or omissions are minimized.
Qualified professionals can identify opportunities for rebates and incentives that you may overlook.
Research and list 5 accounting firms conveniently located around your business HQ - Preferably a professional with experience and specialises in your industry
Ensure they will give you quarterly management reviews - to look at tax saving/measuring prior to end of financial year - avoiding surprises
Make an appointment with at least 3 so that you can speak with accountants and hire a bookkeeper for your business.