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

Tracking Disbursements

Do 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?

ReceiptsDeductions

Do 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 rightfully be claimed, or you could incur penalties for incorrect GST coding of entries.

Budgeting

Do you have a budget – not only for expenses but for all elements of your business plan? Are your expenses in line and in control?

Categorisation

Are expenses and income being categorized correctly? Do you identify capital expenditure and provide for amortisation? Are you using too many or too few categories in your accounting system?

Solution: Having a fully accredited and trained bookkeeper accurately enter and code transactions and prepare timely expense reports and income statements you can spot and deal with expense over-runs early. You’ll know if your cost-of-sales and margins are in line with plan. You can have confidence that your BAS returns are accurate and that you are claiming the deductions to which you are entitled. And if you have worked with your bookkeeper to translate your business plans in to a budget, then you will be able to monitor if you are on track, month-by-month.

 

Interested in finding out more? Find your nearest bookkeeper to arrange your FREE one hour consultation.

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