by Amanda Hoffmann | Featured Contributor
When you own and work in a business, you often find yourself so absorbed with working “in” your business that you forget to work “on” it.
The one area I continually see business owners getting behind with, is their bookkeeping.
I am going to introduce to you a simple way to do both your record keeping and bookkeeping by making a PACT to begin immediately:
P – Plan
A – Act
C – Commit
T – Turnkey ( ready to use solution time and again every financial year)
Let’s start with P for Plan.
Plan to set aside some time each and every day, starting with organising the contents of your draw or box.
FILING : Purchase the following
- One easy file and store container OR a filing cabinet
- Box of suspension files (Pack of 50)
- Box of manila folders (Box of 100)
- Nikko pen.
Label the suspension files with the heading of your
- Bank statements / Credit Cards / Paypal
- Vehicle costs
- Stationary/printing / postage
- Utilities / Rent
- Customer names
- Bills to be paid
ACT
Set aside 15 – 30 minutes every day and pop all your paperwork and receipts into the suspension folder where they belong.
Keep a folder in the car, ensure that when ever you purchase an item the receipt is placed into it.
Develop the habit upon returning home that you file those receipts.
You will be surprised how simple and easy it is to become more organised and develop this good habit.
No more last minute stress at tax time!
COMMIT
Open a separate bank account and/or credit account to operate your business from.
Keep all your business transactions within these accounts and transfer a lump sum amount to your personal account for you private expenses.
Mixing both your personal and business transactions will :
- Increase your accountancy bill
- Cause you to miss out on legitimate business deductions
- Gives the appearance of a hobby, not a serious business commitment
Once you have filed all your receipts and gotten into the habit of doing so, it’s time to commit to an online option for your accounting.
There are many affordable options on hand, some even have an “app” for your phone that will allow you to login and photograph your receipts.
Xero is available in the United States and in Australia, it is an excellent online accountancy programme with many features.
TURNKEY
Repeat the process for the new financial year.
Not only will be ensure that you are claiming each and every expense, you will find yourself empowered by knowing where all your paperwork is.
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Amanda Hoffmann – Sensational Entrepreneur, Bookkeeper Extraordinaire and loves Social Media
Hi, I’m Amanda Hoffmann and live in Brisbane, Australia. I am passionate about business and social media. I currently juggle being a mother of four school-aged children and run three businesses in completely different fields. While challenging, I believe they keep me thinking outside of the box. I have always loved being busy and I believe it is a mixture of my “can do” attitude and loving life that allows me to accomplish so much. Oh, not liking to sleep much certainly does help!
I started managing my first business over 18 years ago but sold it when I decided to start a family. I was unable to envision at the time how I could run a business and still be a dedicated mother. Since I now run three businesses and have a large family, I have found being organised and prioritising is the secret to success.
What are my businesses you might ask? My Office Books Virtual Bookkeeping, Kidd House Accommodation specialising in fully furnished accommodation for both students and professionals and Co-Founder of a new Social Media start-up called The Likeability Company helping SME’s get the most out of using social media and building communities.
I would like to share my experience in small business and answer any questions you might have regarding office organisation, cloud technology and share my experience in property investment.
I personally am fascinated by social media, particularly the fast pace of twitter and exploring the world of blogging. I invite you share my journey and get to know each other.
Twitter – Blog – Pinterest – Facebook – Google+
