Bookkeeping Tips for the New Year

It’s that time of year once again where we tend to make some New Year resolutions. For most of us, these usually tend to revolve around getting healthy, losing some weight or trying a new skill in the New Year. But one area people tend to forget about is financial resolutions. One of the best ways to keep your finances in order is to improve your bookkeeping skills and be on top for the New Year.

7 tips to get you organised for the New Year

1. Get organised

Seems like a pretty obvious thing to do, but you’d be surprised how quickly the Christmas and summer holidays will roll around and be over, and you’ll have forgotten to keep your receipts and paperwork together. The more organised you can be at this time, the easier it will be by mid-year. Think about this time of year as being your mid-financial year kick start.

2. Don't miss your December and January deadlines

Many businesses will close around the 21st of December year, and some even earlier. Don’t forget deadlines, such as activity statements and tax returns. Have a chat to your bookkeeper or tax accountant before Christmas for any required assistance.

3. Payroll and leave allowances

Policies for claiming annual leave over the holiday office closures are different depending on your type of business. Employers need to make this information clear to employees for a smooth transition into the New Year.

4. Public holiday entitlements

Public holiday leave entitlements remain the same as they would at any other time of the year. Employers should ensure that they are up to date with Fair Work Australia provisions and pay rates for public holidays.

5. Keep your work and personal finances separate

A good tip to be efficient is to keep work and personal finances separate. Having a work-life balance is just as important with your lifestyle as it is with your financial life. Just as you would have two separated budgets with your business and personal life, you also need to have your bookkeeping needs separated as well. This will help with any confusion, and lots of work reduced come tax time.

6. Use bookkeeping software

Trying to do all the bookkeeping by hand or with DIY spreadsheets can be difficult to maintain throughout the year and often gaps appear. Using software will make the whole process easier and more efficient to keep on track of things in the future.

7. Planning ahead

Planning ahead of time and projecting the next year and beyond is key to keeping your business profitable year on year. Creating a budget will help you manage your cash flow and doing monthly audits ahead of time can also help stay in check. Try and account for major expenses and emergencies that may come up and allow for additional taxes you may have to pay in the future.

Planning for 2021

For many of us, bookkeeping isn’t exactly the thing we want to be investing our time into. However, 2020 has been an unprecedented year for many businesses, so you may be experiencing some unexpected bookkeeping issues that you haven’t encountered in previous years. If you found yourself strapped for time, not understanding some of the new tax reforms or claimable deductions for your business, it might be worth considering the assistance of bookkeeping services for the next year ahead.

At Charter Partners we can offer assistance in bookkeeping including services in day-to-day transactions, income and outgoings, producing financial reports, processing payments, conducting banking activities and reconciling reports and third-party records. We can also offer services in business mentoring, financial planning, financial forecasting and taxation planning.

Author

Anthony McPhee, Principal

B.Bus (Accy) QUT | FCPA, SSA (SMSF Specialist Advisor with the SMSF Association) & Registered Tax Agent

Anthony has over 25 years accountancy, taxation and superannuation (SMSF) experience. He eagerly welcomes a challenge and his passion is in small business accounting, superannuation, consulting and taxation advice. He provides real business benefits for each of his clients and is well regarded for his succinct and accurate accounting skills. Anthony is also a self-managed superannuation fund (SMSF) specialist with Australia’s leading SMSF body, The SMSF Association.

Learn more about Anthony.