It's That Time Of Year Again.........June Tips

What are some of the practical things that I like to think about in June, ready for the end of financial year?

1. Send out statements as early in June as possible to all your customers to try to encourage customers to fully pay their account before year end;
2. Review whether your business needs to purchase any big ticket items, that is assets over $300.00, for your business that can gain a depreciation benefit this year eg. office equipment, computers/laptops, tools of trade;
3. Ensure that you have all your creditor invoices before 30th June for items that may otherwise arrive from 1st July so that you can claim this year rather than next;
4. Ensure that you have all your bank statements reconciled;
5. Ensure that you are up to date with your BAS lodgements;
6. Pay any Memberships or Subscriptions in advance including insurance policies if you haven't already;
7. If you employ staff, ensure that your payroll records are up to date as you will need to prepare 'Payment Summaries' (aka Group Certificates) after 30th June;
8. Check you are up to date with your Superannuation Contributions (SGC) for employees, if you can afford personally, consider making a Personal Contribution to your Superfund before the end of the financial year;
9. Ask your accountant if there is anything you should be doing before 30th June?

If you are not on track with your record keeping - ask The BookSitters, we are here to help!!

Happy New Year and Happy Record Keeping

Well, I am nearly 3/4's of the way through completing my Certificate IV in Book Keeping. Despite having a Degree in Business, this is essential to conform to the new regulations for book keeping effective as from 1st March 2010. All subcontract book keepers must be able to prove certain qualifications and experience to be able to offer such a service. I had a friend comment that such regulations were simply the governments way of putting another tax on people trying to do a job and earn an income. I say not so. Book Keeping is an essential service and a position of trust and I welcome any changes that protect small business and ensure that they get a professional and well qualified person to do a fit and proper job. We are talking about people's business....their livelihood...their babies.......their future in many cases and sometimes their families future.

I was shocked to hear at a recent ATO Seminar that apparantely some 40% of small business (ie under $2 million a year turnover) have no form of official record keeping. That is, they do not know their current expenses, sales or budget or plan any of their financial matters. I call that.....'Trading in the Dark'. This is certainly setting ones self up to fail!!

We had a planning session before we started back after the Christmas break and developed a very simple 3 page plan which outlined how we would be managing the business over the year, what our objectives were and how we were going to get there. I recommend this for all business - start the year by determining where your focus will be and the path that you will take.

If you don't keep clear, concise and well documented records on the financial state of your business so that you have a budget to work to and an understanding of how your business is tracking against that budget each step of the way.....you are not giving your business - absolutely best chance of success that you can. If you need help, call in The BookSitters.......