Are you going to launch your online store? But remember, to be successful, you have to be on top of the accounting tasks. As you are stepping into the market, you may not be interested in spending enough funds on an accounting service. For that, you can consider the aspects listed here, and a short description of bookkeeping is also there.
Bookkeeping is an important step, especially when you own a business. Fortunately, when you know all the things, it will be easier to manage the books. With that, you will be in a position to enjoy the benefits.
● Opening a bank account
After setting up your business, you have to open a bank account to keep all the funds coming from that. Having a separate account will help in keeping the records separately. Do not ever think to make your personal account your business or vice-versa, as it can create a lot of confusion. Start your business transactions by opening an account as it helps in organizing funds and planning for tax payments. Additionally, LLCs and corporations must have separate credit card to eliminate business and personal assets.
Before opening an account, speak to the best bookkeepers in Perth. They can compare the fee structure and find the details of business accounts. Pay close attention to the details you need. It will help in opening an account with the registered bank by providing the details at the earliest.
● Tracking the expenses
The foundation for a strong business is to keep track of the expenses effectively. It is the most crucial step, allowing you to look after the growth of the business, keeping track of expenses, building financial statements, supporting the reports of tax returns, preparing tax returns, etc. From the initial phase itself, you must create a system of keeping receipts, records, etc., appropriately. It is the same as how you used to keep your school fee book. Five common types of receipts to pay more attention to are:
- Travelling receipts: Going on a tour once a year is normal but do not forget to keep the receipts. Or else, you won’t have track of how much money you have spent. At the year-end, it may be difficult for you to match the balance sheet.
- Entertainment and meals: Conducting a get-together in a restaurant or a cafe can be a great way to treat your employees. While it is important to make your employees feel good, keep the bills.
- Receipts for gifts: For presenting gifs, like a ticket for a concert, an expensive gift, etc., note the details on your account book.
- Vehicle-related expenses: Record when, where, why you are taking a vehicle for the business. If you have to use a vehicle regularly, you need to spend a lot of money on fuel. Considering that, ensure to have the details of all the details of the payments you make.
● Setting a payroll system.
Initially, you may not have so many people, so it would be easier to clear the salaries and keep everything on track. But as the number of employees keeps on increasing, things will become difficult for you. To avoid that, it is better to maintain a proper payroll system from the start. Fix a time and make the payment accordingly. All these things will help when you have to deal with taxes, so it is vital to set a payroll system.
● Building a bookkeeping system
Before building a bookkeeping system, understand what it is and the difference between them and an accounting system is essential. Bookkeeping is a daily process of recording financial transactions, reconciling bank statements, and categorizing them. Being a new business owner, you have to understand which method you will choose. If you are confused about finding a method, you can opt for accounting services Perth to get professional assistance.
● Determining how you are getting paid
How will you manage when sales start rolling? You cannot wait for the moment to arrive and then decide what to do. In that way, a lot of problems can pop up, making things difficult for you. That’s why it is better to save yourself from this hassle by finding a way of your payment.
● Finding the procedures of sales tax
The e-commerce world has shaken the sales tax regulations, so it may be a bit confusing for you to understand. Whenever customers are purchasing things from a retail shop, the sale tax is paid there itself. But in terms of online shopping, when you send goods to a different state, its sales tax varies. Thus, you have to find the procedures of sales tax and be clear about all these aspects.
● Determining the tax obligations
Based on the legal structure of your firm, tax obligations will vary. For a self-employed business, the business income is claimed on the personal tax return. However, corporations have separate tax entities, and the income is taxed as an employee. Being a new business owner, there is nothing wrong if you do not have enough information on these things. You can ask some professionals who have dealt with these things. Once you have the right details, it will be easier for you to know what you have to do.
● Re-evaluating the methods periodically.
While starting, you may have a simple spreadsheet to manage the books. But as your business expands, the amount of time you spend on the books has to be increased. Investing in the right bookkeeping solution will help in saving the business money.
In the end
Starting a new business is overwhelming. But to make it a successful one, it is not so easy. You have to keep a note on every aspect, and bookkeeping is one of them. From opening a bank account, regulating sales, tracking finances, etc., everything should be updated. The clearer you are about your finances, the more chances you will have to expand your business and cut down on unnecessary costs.