Melbourne provides a great business setting for entrepreneurs. The economy is strong, thanks to its huge and diverse population and its friendly affiliations with local and international communities. If you are thinking of setting up a business in this city or perhaps you already have one off the ground, then you understand the need for efficient bookkeeping. Bookkeeping may be a mundane task in business management but its importance cannot be undermined.

Simply put, good bookkeeping practices enable steady cash flow and good relationships with your employees, customers, vendors and the ATO or Australian Taxation Office. The best way to make sure your financial records and transactions are organized and your system efficient is to hire a skilled accountant or bookkeeper Melbourne. But even so, business owners should have a good grasp of it even if they intend to hire a bookkeeper Melbourne.

Make sure invoices are paid on time

Late and unpaid payments can hurt your business, so set up a system that addresses this issue and assign your bookkeeper Melbourne to handle it. Issuing reminders, fines for late payments, or perks when invoices are paid early or on time are common techniques to avoid this problem.

Keep track of expenses

Keeping track of business expenses ensures you won’t miss out on a deductible during tax season and luckily, there are many ways to do it now. Aside from the good old method of organising paper receipts, have a folder in your email for digital ones. It’s also good to have back-up copies by taking photographs of your receipts. Download free or paid applications for receipt keeping like Shoeboxed, NeatReceipts and Certify. Lastly, a credit card used solely for business expenses will surely make the task a lot easier.

Have funds ready for tax payments

It’s tempting to use up all funds you have for better business operations but setting aside money for your annual tax responsibilities provides peace of mind that come tax season, you won’t be scrambling for funds that may not be available. You can’t imagine the trouble you will get into with the ATO if taxes, particularly payroll taxes, are not paid on time.