Tracking Your Finances Is Must!
Accounting and taxation are two important parts of any business, and usually prove to be stressful for many business owners. This is because business owners tend to busy managing the operations and the day-to-day activities of their business – and keeping carefully maintenance of their records and finances can be a task that is pushed back to the point that is starts becoming a little stressful.
Large organisations often hire professional accountants or an accounting firm to get the accounts and tax job done. However, this option is quite unaffordable for small business entrepreneurs since they cannot invest as much in these areas.
No matter what kind and size of business you run, it’s indeed essential to track your business finances and prepare for tax payments. Accounting software is commonly used by many people these days but it also demands a certain investment. Since you own a small business and are just starting out to expand it, you don’t need to spend much on an accounting software.
What you can do, is prepare a simple spreadsheet in Google Docs or MS Excel and track your finances regularly. At the end of the year when you have to do the taxes, the same sheet could be sent to your accountant who will do the rest for you.
This is how you can set-up your spreadsheet:
Tab 1:
Money-In
Date Charged
Client
Amount Charged
Date Paid
Tab 2:
Money-Out
Date
Vendor
What was Purchased
Amount Spent
Category
Category would include things such as travel, meals, commissions, insurance, rent, taxes, advertising, labor, etc. In short, this column will help you translate all your spending on a tax form.
If you don’t really understand what your expense classifies as, you can also add a category named ‘ask accountant’. Your accountant sums-up all this information and can do the taxation work for you.
If you require some more assistance from an accountant on the best way to set up a record sheet – get in touch with one of our qualified accountants for consultation.
Numbers Talk is one leading accounting firm Melbourne wide and we provide highest quality taxation services through qualified, experienced tax accountants Melbourne CBD.
For more information please contact us
