The 5 Bookkeeping Hacks Every Small Business Owner Needs to Know

As a small business owner, you know that keeping your finances in order is essential to your success. But did you know there are simple steps you can take to make bookkeeping easier and more efficient?

We work with small business owners on the Gold Coast and Tweed Heads at Grow Advisory Group to help them streamline their bookkeeping processes. From getting you up and running with accounting basics to managing the finances of your entire business, we can help. As such, we’d like to share our top 5 bookkeeping hacks that every small business owner needs to know. Following these simple hacks can streamline your bookkeeping process and keep your business on track.

1. Keep a detailed daily ledger of all your business expenses and income

One of the most important things small business owners can do to streamline the bookkeeping process is to keep a detailed ledger of all business expenses and income. This means recording every penny you spend and earn and when it occurred. Doing so gives you a clear picture of your business finances, making bookkeeping much more manageable. Additionally, it will help you spot any financial red flags early on.

You can create a ledger in bookkeeping software, a simple spreadsheet or even on paper, but it’s essential to be as accurate as possible. The ledger will be used to prepare your business tax return, so all information must be accurate.

An example of a ledger could look something like this:

Date	Item	Amount
7/1/2017	Office Supplies	$10
7/5/2017	Software Upgrade	$125
7/15/2017	Rent for Office Space	$500
7/31/2017	Net Income for July	$2,000

This type of record-keeping can help you track your expenses and income monthly or even weekly, making it easier to identify trends and areas where you may need to adjust your spending or revenue.

As simple as it may appear, keeping a daily ledger is one of small business owners’ most crucial bookkeeping hacks.

2. Create a separate bank account for your business and make regular deposits

Bookkeeping for small businesses can be time-consuming and overwhelming, especially for those just starting out. One bookkeeping hack for small business owners which simplifies the process is to create a separate bank account for your business. This will help you to keep track of expenses and income, and it will also make it easier to file taxes. In addition, making regular deposits into your business account will help you to stay on top of your cash flow.

Creating a separate bank account is a bookkeeping hack that can save you time and hassle in the long run.

Requirements for opening a business bank account

To open a separate business bank account in Australia, you will need to provide the following documentation:

• A valid Australian Business Number (ABN)
• Proof of identity for all owners and directors of the business
• A certified copy of the company’s constitution (if applicable)
• A copy of the company’s Certificate of Incorporation (if applicable)
• proof of address for the business

Once you have gathered all the required documentation, you can contact your chosen bank to set up an appointment to open the account. During the appointment, you must provide the bank with all the required documentation and any other information they may request. Once everything has been processed, you can use your new business bank account.

3. Use invoicing software to keep track of client payments and outstanding balances

As a small business owner, keeping track of your finances and ensuring your books are in order is important. One great bookkeeping hack to streamline this task is using invoicing software to track client payments and outstanding balances. There are many benefits to using this type of software, including:

• Streamlining the invoicing process: You can create and send invoices quickly and easily with invoicing software. This saves you time and makes it easy to keep track of payments.
• Getting paid on time: When you use invoicing software, you can set up automatic reminders for when payments are due. This ensures you get paid on time and helps avoid misunderstandings about when payments are due.
• Managing payments and balances: With invoicing software, you can see at a glance which clients have outstanding balances. This makes it easy to follow up on late payments and ensure you’re getting paid what you’re owed.

Invoicing software is a great way to streamline your bookkeeping and ensure that your finances are in order. It’s a valuable tool for any small business owner.

When it comes to invoicing software, you can choose a stand-alone option such as Simple Invoices, which only offers an invoicing functionality, or you can opt for accounting and invoicing software, such as QuickBooks Online, which includes additional accounting functionality.

Which is right for you comes down to personal preference and business needs. Accounting and invoicing software may be better if you need more than just invoicing functionality. However, if you’re only looking for invoicing functionality, a stand-alone invoicing software option may be all you need and much cheaper.

4. Invest in accounting software to help you with bookkeeping tasks

Bookkeeping can be time-consuming and daunting if you’re a small business owner. However, investing in an accounting software program can help you save time and money in the long run.

Investing in an accounting software program is an essential bookkeeping hack for small business owners. It can save you time and help you stay organised to focus on running your business. Ultimately, accounting software is a wise decision for any small business owner.

Accounting software options

The most popular accounting software is Xero, QuickBooks, and MYOB. These programs offer a variety of features that can streamline bookkeeping tasks, such as invoicing, tracking expenses, and managing payroll. In addition, using an accounting software program can help you stay compliant with tax laws and regulations.

Ultimately, the right accounting software for your small business depends on your specific needs and preferences. However, all major accounting software programs mentioned above offer a free trial, so you can try them out before you commit to a purchase. Simply head to their respective websites to sign up for a free trial.

If you need assistance or advice setting up or choosing accounting software for your business, contact Grow Advisory Group. Our team of expert accountants can help you choose the right software for your business and ensure that it meets your needs.

Learn which software Is best for your small business by reading our articles, ‘Which Accounting Software Is Best for Small Business?’ and ‘How to Choose the Right Accounting Software for Your Business‘.

5. Regularly consult with an accountant or bookkeeper to ensure that your books are in order

As a small business owner, keeping a close eye on your finances is important. After all, your business is only as strong as your bottom line. One way to ensure your books are in order is to consult an accountant or bookkeeper regularly. This way, you can catch errors or discrepancies before they become major problems.

Additionally, a professional can help you identify opportunities for improvement and growth. For example, they may be able to help you claim tax deductions that you were unaware of or suggest ways to streamline your accounting process.

Regularly consulting with an accountant or bookkeeper is a smart way to stay on top of your finances and ensure your business runs smoothly.

Grow Advisory Group, professional bookkeeping services for small business

Grow Advisory Group offer professional bookkeeping services for small business owners on the Gold Coast and Tweed Heads. Our bookkeepers can help you with various bookkeeping tasks, from invoicing to tracking expenses, tax preparation and beyond.

We understand the importance of financial planning and bookkeeping for small businesses in the Gold Coast and Tweed Heads. We have a team of experts dedicated to helping business owners achieve their financial goals by providing quality bookkeeping services and advice. We understand that every business is unique, so we tailor our services to meet your specific needs. Whether you need help setting up a bookkeeping system or want advice on growing your business, we are here to help.

Read our blog post, ‘The Benefits of Bookkeeping Services for Small Business Owners‘ to discover further benefits. And to demonstrate our willingness to help, please read our free resource, 10 Accounting Tips Every Small Business Owner Needs to Know, to discover helpful tips for your business.

Conclusion

Bookkeeping is an essential part of running a small business. However, it can be time-consuming and daunting if you’re unfamiliar with the process. Luckily, a few bookkeeping hacks can make the task easier.

By keeping a detailed daily ledger of all your expenses and income, you can easily track your financial progress and identify any areas you need to adjust. Creating a separate bank account for your business and making regular deposits to keep your accounting separate from your personal finances is also essential. Additionally, invoicing software to keep track of client payments and outstanding balances can help to simplify your bookkeeping tasks. Finally, it is advisable to consult with an accountant or bookkeeper regularly to ensure your books are always up to date.

And, should you need help with your bookkeeping, Grow Advisory Group’s expert bookkeepers are always on hand to assist small business owners in the Gold Coast and Tweed Heads.

Contact us today to learn more.

Disclaimer: The information contained in this blog is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from an accountant and/or financial adviser.