Advivo Business Advisors and Accountants explain the benefits of accurate and efficient bookkeeping and payroll.
The importance of accurate Bookkeeping
We understand better than anyone that bookkeeping is an essential part of your small business and without accurate and efficient bookkeeping, your accounting will be inaccurate. To properly manage your business, you need to know what’s happening on a basic financial level. By not doing this, your business expenses could prevent your business from reaching its full potential. Additionally, your year-end accounting work will take longer to complete and will be at a higher cost. Inaccurate and unreliable financial records also act as a barrier when applying for finance or trying to sell your business. Put simply, financial records need to be accurate and up-to-date.
At Advivo, we understand that the necessary requirements of running a business can be time-consuming and we have a solution for you to reduce the time, money and effort to keep your records accurate and accessible to guarantee you are making the most of your time on your business. The importance of bookkeeping extends beyond simply being organised. Additionally, diligently tracking all incoming and outgoing expenses can help you strategise for the future.
The benefits of efficient bookkeeping:
- Accurately record all financial transactions
- Analyse spending and improve your business budgeting
- Bookkeeping is useful for filing taxes
- Protect your small business in the event of an audit from the ATO
- Improve your cash flow management and get peace of mind about payments
Getting your payroll right
It is important to ensure you get your payroll right from the beginning, and this starts with getting your employment contracts right. Retracing your steps and correcting mistakes in payroll can be time-consuming, very costly, and not good for a business’s reputation. The more employees you have, the more complex your payroll usually gets, especially if you have a mix of employees on hourly wages and salaries. Add in some contractors, staff on commission, overtime, expense claims, allowances, and leave entitlements, and your payroll can be different every time you run it.
There can be severe consequences for not following the payroll regulations, for example, late payments of PAYG withholding tax, superannuation and payroll tax resulting from payroll errors. Underpaid payroll obligations can have an added interest amount; in addition to this, your business could be hit with extra penalties for non-compliance with payroll regulations, including non-deductibility of the expense.
If you want to ensure you are making the best use of your time in the most cost-effective way to not only increase your profit but give you peace of mind, then contact us today to discuss a tailored Bookkeeping and/or Payroll solution that would work for you and for your business.