Bookkeeping provides an overview of your financial position, and insights into your business activities. This in turn helps you to make better and more informed decisions. But in order to get these insights, good record keeping is essential, which can be a challenge!
As well as accurately recording transactions, this requires keeping paperwork in order (either hard copy or digital). Not keeping proper records can cost you money. For example, you could end up missing out on GST credits or tax deductions, or even getting fines from the ATO (and who needs that?)
Here are a couple of examples of how we were able to provide record-keeping solutions for a couple of our clients who were experiencing difficulties in sorting out their paperwork systems.
Receipts, receipts everywhere
Not so long ago, one of our construction clients experienced huge growth in their business rather rapidly. Unfortunately, they didn’t have paperwork processes in place to match!
Everyone in the business was very busy, and this led to receipts being left in vehicles or other places or just plain getting lost. A lot of hours were then spent by us contacting all their suppliers for missing invoices!
We understood that tradies are often very busy and that paperwork is not always their top priority, so we set up a system to make it easier for them to manage it. This involved getting them into the practice of either scanning documents straightaway for input to Hubdoc or putting them into a tray for later scanning.
Implementing a system like this helped get them into a pattern or habit, which meant they could keep their paperwork in order without thinking about it too much. It helped avoid receipts getting lost, and the guys becoming overwhelmed by it all!
What was that expense for?
A client with a crane business needed to analyse how much each vehicle was costing them. However, we had no way of knowing which transactions related to which vehicle. So we asked them to advise us of vehicle details on their bills, either by noting down the registration number on the paperwork or entering the details into a spreadsheet.
The result? Far more detailed and accurate records, and an increased ability to analyse costs and make informed decisions!
Bookkeeping is a detailed occupation
Bookkeeping involves a lot of detailed work, but it really does yield results. And getting your records right the first time can save your business money in the end.
So when we might seem to be hassling you for your paperwork, there are many good reasons why!
Do you have a challenging situation similar to these that you need help with? Our professional bookkeeping, BAS and payroll services are tailored for each client and are available 52 weeks of the year. Check out our services or contact us for a chat about overcoming your paperwork challenges!