Another major mistake which is actually quite common especially among small businesses and entrepreneurs is the failure to properly record cash expenses. This can present a serious concern especially when it’s time for your Melbourne accountant to prepare your income statement.
It is critically important for businesses to keep track of all expenses that are related to running the business. This is because, these costs can be deducted from the total income tax that your Melbourne Accountant will prepare for you at tax time. This will also give you a clearer and more accurate picture of the overall profitability of your business operations throughout the year.
While you can easily link your debit card, credit card and checks to your accounting software, it is all too common for many to overlook logging in expenses that are paid in case. Many of these expenses are forgotten which will result to the overstatement of income for the business year. To avoid this, you can work with your bookkeeper Melbourne in developing a method of easily tracking cash expenditures.
It is also important to make it a habit to ask for receipts from the vendor and have your bookkeeper Melbourne log expenses immediately. There are mobile apps that you can use to make sure you have everything logged in a more convenient manner.
Tap into the power of technology to streamline the accounting process and avoid loopholes and inconsistencies. Better yet, work with a Melbourne accountant who is known to be technologically savvy and advanced to best keep up with the constantly changing and rapidly moving pace of business today.