Running a business and wearing all the hats in that business is hard work. It takes time, motivation, and effort. One of the first things to be done “tomorrow” might be your books.
Once you get behind on your books it can cause all kinds of issues and put you on the radar at the ATO – not something that we recommend.
In 2022 we have found that the Tax Office has been really cracking down on business owners who are behind with their BAS and their tax affairs. Getting your books up to date is vital now more than ever. Here are some other reasons you don’t want to let your books get out of control!
- Getting behind on your books will mean that you won’t know where you are at financially with your business. That lack of information will lead to an inability to make clear and confident business decisions
- Audits from the Tax Office are more likely once you get noticed by the ATO
- Your GST liabilities will increase with late lodgement fees and interest
- Growing penalties and interest will be charged if your super is underpaid or not paid on time
- Poor bookkeeping can and usually does lead to poor cash flow. Problems in this area can result in employees not being paid the correct amounts. You might even find yourself having to “back-pay” them to catch up
- The flip side of this may be losing money due to overpaying employees. Once overpaid it can be difficult to recover those monies from the employees quickly. If their situation is one where they cannot afford to repay you then there are laws around overpayments that might hurt you more than them
- If one of your employees decides to speak to the Fair Work Inspectors you can get fined for paying incorrect wage rates
- If you cannot pay your tax debts wind-up action from the Tax Office is not out of the question. This is happening more readily now than ever before
Here are some of the areas that a bookkeeper will focus on when starting to get your books up to date:
- The reconciled bank balance is the same as your bookkeeping software balance
- Your customers (Trade Debtors) and suppliers (Trade Creditors) balance with the Balance Sheet
- The Payroll Categories on your software are set up correctly. This ensures that employee Pay slips, Leave Accruals, Tax, and Super Calculations are correct and on time
- The lodged BAS’s reflects the bookkeeping software records
With the new financial year just around the corner – NOW is the time to start a new year with an accurate set of books. We guarantee that with accurate bookkeeping and up-to-date records you will be better equipped to run your business!
If you want to continue to do your own books but feel a little overwhelmed, you have a couple of options!
Get a bookkeeper to do a “rescue” job and get your books fully up to date. That will allow you to have a clear understanding of where your business is at. Start the next financial year with fully up-to-date books.
Get better at doing your books yourself! Our advice is to get some training from a qualified trainer who is also a qualified bookkeeper! At Keeping Numbers Bookkeeping and Training, we have two different training options for you to choose from!
- Our online Xero Essentials course allows you to do our training sessions at your own pace and you can redo any part that you feel you need to do again.
- One-to-One Training which will address your specific needs. Our sessions are usually 2 hours but if you want to set up more than that, we can do that too.
Speak to Liz Peacock to discuss your needs and find out more about the services that she and her team offer. With years of experience in training and a registered BAS agent, you know that you and your business are in safe hands when you choose Keeping Numbers!