Common Bookkeeping Mistakes

Common Mistake #7 – Cashflow, the lifeblood of business.

If cashflow is not monitored, planned, and predicted, the business could be bleeding. Cashflow Do you have up-to-date visibility of cashflow? The sales top-line or even the profit bottom-line don’t equate to cashflow. Timing differences can make a critical difference. Do you get daily reports? Do you do rolling cash-flow projections for the next three [..]

Common Mistake #6 – Invoicing as an after-thought

Too busy to invoice or send statements? Do you issue invoices promptly and regularly, and as soon as work has been completed or goods delivered? Work-in-progress: Do you have too much sitting in work-in-progress that could be invoiced and collected? Are you letting your debtors slide? Do you have a system in place to alert [..]

Common Mistake #5 – Battling BAS

Is the dread of BAS time a recurring nightmare for you? Dreading the deadlines? The penalties for missing deadlines for Business Activity Statement (BAS) and PAYG lodgments can be painful. Are invoices valid? Are you checking that you only claim on GST on valid tax invoices? Missing out on input credits? Do you risk claiming [..]

Common Mistake #4 – Discovering runaway expenses have eaten up the bottom line

Tracking DisbursementsDo you have a system to track receipts for expenses? Do you separate business and personal expenses? Do you put business expenses on your personal credit card? DeductionsDo you claim all the deductions to which you may be entitled? By incorrectly allocating expenses during data-entry you can miss-out on valid tax deductions that should [..]

Common Mistake #3 – Only checking cash-flow in times of crisis

Life is full of surprises! Do you have up-to-date visibility of cash-flow? Do you get daily reports? Do you do cash-flow projections for the next three months? Are you alert to mis-matches between collections and out-flows? Are you able to finance the new jobs you are bidding for? Are you making emergency appeals to your [..]

Common Mistake #2 – Software You Don’t Understand

Are you using the accounting system best suited to your business? The accounting systems available today are powerful and sophisticated and while they may appear to be user-friendly, there will be many features you won’t be using or may not be using correctly. Do you understand your accounting software? Do you understand the features and [..]