Keeping track of the books for your small business might seem like a nuisance, but it is required for tax related purposes. It is possible to save time and money as a small business owner if you know what accounting strategies are most effective. This means that if you want your small business to be in good standing with Australian Taxation Office, there are some accounting tips that you can adopt to simplify the process and also ensure that you have adequate accounting records.
It is important that as a small business owner, you keep track of all expenditures that are associated with your business. If you do happen to be audited by the Australian Taxation Office, you need to have receipts that substantiate all expenses that you have claimed. Instead of having to keep all copies of receipts on hand, you can make things easier by scanning all receipts and important documents. This allows you to keep a record book that is essentially audit proof. Everything that you have scanned can be backed up on the hard drive of your computer, which allows you to keep records for many years without taking up filing space.
You will also learn early on that as a small business owner, you need to have personal and business bank accounts that are separate. It is never a good idea to mix your personal and business bank accounts together in any way. It will only complicate the accounting process. You want your business to be viewed as a formal business entity and this is only possible if you have all separate business accounts. It is also important that you avoid using cash for any business related purchases. You want there to be a paper trail and this is done by using a business debit card are credit card. This will ensure that there is always a receipt for withdraws.
If you have a business that is associated with mileage in any way, documenting your mileage can quickly becoming a time consuming aspect of your accounting duties. You can simplify this task by taking advantage of one of the many satellite assisted phone application mileage tracking services that exists. This will allow you to have an accurate accounting of all the mileage you have accumulated in relation to your business without requiring you to do the tracking all on your own. These apps are also seen as more reliable if your business does get audited.