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Pyrmont Bookkeeping: 7 Tips for Small Business Bookkeeping

Bookkeeping Pyrmont1 Pyrmont Bookkeeping: 7 Tips for Small Business Bookkeeping

You probably know how difficult it can be to keep your bookkeeping in order, but with these 7 tips, you will be off to a good start in keeping things organised and easier to account for.

These tips are supplied by Irena’s Bookkeeping Pyrmont, 1800 733 497.

1. Your business should have its own bank account.
Your business bank account should be kept separately from your personal account because it makes it easier to keep track of business expenses. The same is true of credit cards, so it is advised that you get a separate credit card for your business purchases. Fees that apply to business accounts can be used as a deduction, but the same isn’t true of your personal bank account. This also makes it easier to look up business expenses.

2. Keep business and personal expenses separate.

Personal expenses are not a legitimate deduction so when you are buying business and personal items at the same place, you need to have separate receipts. You could get yourself in trouble with the Australian Tax Office (ATO) if you start adding personal expenses in with your business expenses. Even small items can add up over the period of a year, so it is best to always keep business and personal purchases separate from each other.

3. Always ask for a receipt.
As many places are saving paper when they can, you might have to ask for a receipt.

4. Receipts need to be kept in a safe place.
Safely store your receipts until you can file them properly and enter them into MYOB.

5. Vehicle travel should be logged.
Business travel can be deducted, but you need to log beginning and ending kilometres for the purposes of the travel. An accurate log is important if you want to deduct business travel as an expense.

6. Business records need to be retained in an orderly fashion.
A file cabinet or a large flexible folder can help you keep your business records in order. You need to easily access them if you are audited or for your accountant.

7. Five years of records are required by the ATO.
Businesses need to keep at least five years of records after their tax returns have been finalised. You might want to hold onto your business records longer, if your storage area allows.

If you need assistance with your bookkeeping, please give Irena’s Bookkeeping Pyrmont a call on 1800 733 497. We are a MYOB Professional Partner.

MYOB Bookkeeping Pyrmont Pyrmont Bookkeeping: 7 Tips for Small Business Bookkeeping

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