Blunders, blips and bookkeeping

Posted: 25 May '23
Blunders, blips and bookkeeping

Blunders, blips and bookkeeping

I am back with another exciting edition of the Appy Books blog, ready to dive into the fascinating world of the bookkeeping blunders that haunt Australian businesses. I will uncover some of the most common mistakes that could have you pulling your hair out faster than a kangaroo on a caffeine binge. These all habits that you can change now before the end of financial year madness. So, grab your cuppa and get ready for a bunch of valuable insights that will keep your books shipshape!

  1. Neglecting receipts: Australia is notorious for its rigorous tax laws. One of the biggest blunders is neglecting to keep track of receipts. Do not let the taxman catch you off guard! Save every receipt, snap pictures with your smartphone, or consider digital solutions that streamline your receipt management process.
  2. Mixing personal and business expenses: Ah, the classic trap that even the savviest entrepreneurs fall into. While it might be tempting to use your business account for personal expenses (hello, online shopping!), this can lead to a tangled mess come tax time and may mean that you are short of cash when it comes time to pay your business obligations. Keep a clear separation between your personal and business finances to maintain sanity and ensure accurate bookkeeping.
  3. Forgetting to reconcile bank statements: I love working with a relaxed business owner with a "no worries" attitude, but I do not let them extend that attitude to their bookkeeping practices. Skipping bank statement reconciliations is a big no-no. Failing to match your records with the bank's transactions could result in overlooked errors, fraudulent activities, or unidentified fees. So, roll up your sleeves, reconcile your accounts, and keep your financial house in order!
  4. Overlooking payroll obligations: Seriously, dudes! Payroll is a critical aspect of any business, and we should all take workplace fairness seriously. Stay on top of your payroll obligations by accurately calculating wages, including taxes, superannuation contributions, and leave entitlements. Pay attention to the ever-changing employment regulations to avoid any surprises and keep your employees happy.
  5. Not backing up data: No business is immune to the occasional power outage or internet glitch. Do not let your bookkeeping data suffer consequences from these random inconveniences. Regularly back up your bookkeeping files to the cloud or to an external hard drive. That way, even if an unpredictable storm rolls in, you will not be left high and dry without your essential financial records.
  6. DIY overload: I love a good DIY project, but sometimes it is better to leave certain tasks to the experts. Do not let your enthusiasm blind you when it comes to your bookkeeping. If you are not confident in your abilities, seeking professional help can save you from costly mistakes. Remember, bookkeeping is an investment in your business's success!

So, there you have it! Avoid these common bookkeeping mistakes like a seasoned surfer rides a wave. Keep your receipts in check, separate personal and business expenses, reconcile those bank statements, nail your payroll obligations, back up your data, and know when it is time to bring in the experts. That’s totally gnarly dude!

Remember, no one expects you to be an accounting legend overnight. Take it one step at a time, embrace a proactive approach, and stay curious about the ever-changing business landscape. We will be here, cheering you on and providing you with Appy insights and hand holding whenever you need it. Until then, keep your calculators charged, your spreadsheets organized, and your bookkeeping woes at bay.

Stay ‘Appy!

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