Many business failures can be tracked back to the inability of a new business owner to properly prepare their business for the time split between completing daily jobs and paperwork. For the tradies that are working long hours on their own, the thought of returning home and then having to complete hours of paperwork is, to say the least, depressing. There are many sole proprietors that are both doing their work and then having to complete the paperwork that is required to be effective as a business owner. It is not surprising that many business owners leave their paperwork until the last possible moment and find themselves regularly requesting extensions from the Australian Taxation Office (ATO).
While you can do your own paperwork, and it would only cost the amount of an accounting package, does it mean you should do that? It is worth considering the time you are spending on doing these tasks and what you could be doing instead of this tedious activities. Maybe you would prefer meeting that surf break at dusk or maybe even meeting your mates down the pub would far more enjoyable. There are many other alternative activities that you could be undertaking to make this task worth engaging a bookkeeper for a few hours per week. Often it is the case you can make more money doing work in your job/business than what you would be paying out to someone else to do this task for you.
There are many business failures that are tracked back to not keeping their books in order and consistently up to date or losing money through not being able to claim all associated costs that you have incurred in business activities. If you consider the image of someone who has put all of their invoices and tax receipts in a shoebox and then tries to sort it all out around BAS time you are starting to get the picture. Imagine simply being able to just send off paperwork regularly to someone else and have it completed for you without the worry that something is missing from the shoebox.
Keeping your paperwork in order and ensuring you pay your bills and send out invoices on time are all reflected in how your business is perceived by those that you interact with. It can mean the difference between obtaining trade credit when required and keeping your business afloat. If you are tardy in sending our invoices for payment, then this is reflected in payments taking some time to hit your account. The result is likely a delay in making payments to creditors who may then put holds or cancel your accounts. Because your account has been cancelled or placed on hold, creditors will likely require you to pay up front for equipment etc. This may give the impression of a business that is failing but may just be symptomatic of a business owner that is a poor book-keeper.
Ultimately it is important that bookwork for a business is completed professionally and consistently to avoid any future negative flow on effects for your business. Consistent and well maintained accounts will give your business the best chance of success. If you struggle with this as a business then consider outsourcing your bookwork if you have not already done so, Actsintuitively can perform these tasks and more for a small fee. If you are interested in finding out more about what we can do for you then please feel free to visit our main website or contact us. Thank you for your time, for reading our blog post and it would be great if you feel the need to share or like our articles via one of our social media platforms with the @ActsIntuitively tag as applies.
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