10 FREE ways to save money on your bookkeeping
Get organised - saving time means saving money. Remember, every dollar saved is a dollar of profit. By spending 10 minutes on your books every day, you will stay on top of the workload and know where your business stands.
Use a cloud-based accounting software package like Xero. Real-time financial reporting will give you a better understanding of your business.
Use online banking. Forget about cheques and avoid cash transactions. When making payments use a business credit/debit card, direct transfers, BPay etc. Most importantly, keep your personal and business accounts separate.
Go paperless. Scan all your invoices and receipts, attaching them to the transaction details in your software and get rid of that filing cabinet!
Ensure the setup is right. Making sure your accounting is set up correctly from the beginning will prevent any costly rework later on.
Get advice and training. "You can give someone a pair of scissors, but don't call them a hairdresser”.
Reconcile your bank accounts regularly, at least each month. The balance in your bank account needs to match your accounting software balance. If not, there are errors somewhere.
Setup a business savings account and put money aside to pay for super and taxes at the end of each period.
As your business grows, focus on what you do best and outsource the bookwork to a specialist.
Keep an eye on your accounts receivables. Develop a strategy for dealing with late payers. You aren't in the business of providing interest-free loans. Think about your cash flow.
Bonus tip
Find a bookkeeper who charges a fixed fee rather than an hourly rate. Fixed fees incentivise the bookkeeper to get the job done.
