One of the main reasons businesses fail is because there isn’t a good bookkeeping system in place that would provide warning signs the business could run out of cash.
You can choose to set up a bookkeeping system manually (using accounting books), electronically (spreadsheets) or use accounting software. Unless you want to get familiar with bookkeeping practices, accounting software is the most efficient choice.
There are many software packages on the market that allow business managers to successfully control records without an accounting degree. Some of them, such as Free Accounting Software, have no cost. Some commonly used accounting systems used by small businesses are:
If you’re unsure which to choose talk to your Nobel Thomas Melbourne accountant or business adviser. It’s worth checking to make sure the package has Standard Business Reporting forms needed to report to the ATO such as BAS statements. It’s also a good idea to ask other business owners what they use.