DIY bookkeeping problems

Posted by admin on May 8, 2011 under Uncategorized | Comments are off for this article

There are many reasons why it can be a bad idea to take on all your bookkeeping practices. Unless you have sufficient training and knowledge, they should be left to a bookkeeping professional. Although you may think that you have everything in order and that there are no loose ends, we can assure you that if this is actually the case, you are a rare exemption!

In our experience of resolving ATO queries for new customers with poorly submitted financial data, there are so many potential problems that you can create for yourself, your staff and you business as a whole. Some of the most common areas where people create issues are:

  1. Lack of software knowledge
  2. It is never a good idea to try and tackle the complexities of accounting software without having a fundamental understanding of what needs to go where and why. You can be penalised by the tax office if you underpay tax on your returns, so save yourself time down the track, as you will only need an expert to correct it later.

  3. Losing records
  4. Not only do business owners often misplace their important receipts which they can claim for GST and overall tax returns, the data for your quarterly accounts needs to be backed up, so that you have a recorded position for your business should you ever need to present the records to the ATO. This is commonly overlooked and should be managed with care.

  5. Knowing what to claim for
  6. It would be nice if every single expense in our entire lives could be claimed against our business, but this just simply isn’t the case. There are certain rules and tolerances for different expenses and you can’t just claim for every receipt you find. They have to be relevant to your business and eligible for tax deduction. A qualified bookkeeper will know what will or will not be acceptable.

  7. Missing deadlines
  8. Being penalised with an FTL, or failure to lodge, because you have forgotten to submit your BAS statement on time is something you shouldn’t need to keep track of. A bookkeeper will be able to track the required due date and schedule all the necessary paperwork to be completed and submitted on time.

There are so many pitfalls in the complex world of bookkeeping so if you are in doubt and feel that you may be out of your depth, we will be here to help you get it right the first time. Call us today and we will be glad to assist.

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