How Bookkeeping Can Save You Money, Time And Improve Your Business

The ATO will likely scrutinise business transactions in the event of an audit. If your business uses accounting software like Xero, you can attach a receipt/invoice to every transaction and leave a clear description of the expense. That’ll save you hours, including the accountant fees, which can easily range between $10,000 and $20,000 per audit event. Audit insurance will cover the accountant’s fees, but it doesn’t include the time you will spend providing evidence or information to your accountant or auditor.

In addition, when reconciling transactions, you want to avoid using generic account names such as General Expenses. You want to reconcile transactions to specific accounts that accurately reflect the type of expense. With a clear overview of your income and expenses, you can seamlessly review to cut costs, streamline operations, and, most importantly, maximise profit.

A well-organised financial record enhances your business’s credibility with lenders, investors, and potential business partners. Lastly, when it comes to tax time, you’ll have all the necessary information readily available, reducing stress and allowing your accountant to provide accurate advice.