Quick Tip: To save money on your bookkeeping, don’t pay personal expenses from your business accounts; don’t pay business expenses from your personal accounts
June 30, 2014
Keep your business and personal expenses separate. Don’t pay any personal expenses from your business … pay yourself a wage, or take a drawing, and then pay your personal expenses from your personal accounts. Take one transfer a week to cover your personal expenses … do not make many small transfers for each expense. The reason is that we want to minimise the number of transactions that pass through your business account, to minimise the cost of accountikng for those transactions.
If you have multiple entities, receipt your income and pay your expenses from the right entity. If you don’t have enough funds in a particular entity’s bank account to pay its expenses, transfer sufficient funds from where you have surplus funds to the entity needing to pay its bills. This can save a lot of double accounting for transactions, and reconciling of loan accounts between transactions. Some time ago we were introduced to a prospective client with a multi million dollar property portfolio, who had been both receipting into and paying from the wrong entities, and they hadn’t kept their bank reconciliations for any of their entities up to date for over five years. They needed to refinance in a hurry due to changed circumstances, couldn’t get their accounts straightened out in time, and lost their property portfolio. They thought that getting help was too expensive; it would have been a negligible cost compared with losing everything! It doesn’t cost any more to have your bookkeeping done well than it does to have your books done badly. It’s only the “recovery” that costs. So if you have any doubt about the quality of your Bookkeeping, address that issue now and prevent the need for “recovery and rescue” work later on.
Payroll EOY - Review all employee current addresses and tax file numbers in preparation for Payroll EOY.
Superannuation - Pay your June Quarter Superan...
End Of Financial Year
June 17, 2015
Balanced Lifestyle? Yes Please!
May 1, 2013
The Teamrace Team hope you had a wonderful break over Christmas and New Year and we look forward to working with you in 2016.