September 3rd, 2021
Bookkeeping is tedious, but it’s an essential practice that can help business owners keep track of the cost efficiency of their operations. This process involves keeping a timely record of the various transactions related to you business. Also, as a business operator, you are required by law to keep track of these transactions.
Many businesses hire qualified bookkeepers to keep a record of their operations. Accountants and bookkeepers use various online and digital tools for their work. One of these tools is MYOB, an accounting software that has a variety of useful features that can make bookkeeping easier & more accurate.
Various MYOB training courses will provide you with a deeper understanding of how to use this powerful tool to handle your bookkeeping needs. There are also MYOB classroom training sessions that offer hands-on instructions on using this software. In this article, we’ll go through a few basic tips to help you familiarise with MYOB.
Keeping and Organising Receipts
One of the most important factors in bookkeeping is keeping receipts and invoices. In Australia, the Australian Taxation Office (ATO) requires business owners to keep transaction records for at least five years. These documents mainly include receipts and invoices for goods, services, and other transactions made by your business. These also include records of payments made to your employees.
You can keep your receipts organized inside a dedicated envelope or drawer. Or, you can take advantage of MYOB’s Capture app. As its name suggests, this feature lets you take snapshots of your receipts and stores them in your account. It can also scan and read the relevant information printed on the receipt.
Maintaining A Budget
When it comes to maintaining the operations of your business, setting a budget to keep track of the cash flow is important. Ideally, the monthly budget for your business-related expenses should be based on the amount of money that your company is receiving for that period. Keeping track of your budget can help prevent you from going overboard with your expenses.
Through MYOB, you can create detailed reports that are designed to monitor your spending and analyse how it affects your sales. Within these editable budget reports, you can set limits to ensure that you’ll only be spending within your means. These reports can also be integrated with employee timesheets and transactions to help you get a broader idea about your business’ cash flow.
Keeping Track of Payments and Expenses
For business owners, having separate accounts for personal and company-related expenses is vital. One way to effectively segratate them is by having different bank accounts and credit cards specific for personal and business purchases. Starting this habit while you’re still growing your business will be very helpful in the long run since it will keep your expenses and transactions organized.
MYOB has a feature that allows you to manage your transactions using your mobile device. You can also setup the app to automatically keep track of your expenses to ensure that you’ll always know why, where, or when you spent your money. You can also use this feature to fill in your ATO expense reports.
Organising Your Tax Obligations
Company owners are required to follow a number of regulations, such as registering for an ABN. Also, businesses with a turnover of over $75,000 should apply for GST registration. Registering for PAYG is also required for companies with paid employees. As a business operator, you are also required to submit a Business Activity Statement report every month or quarter to the ATO.
Following all these requirements can be a bit overwhelming. Fortunately, you can handle your various legal and tax obligations using MYOB. Through this software, you can easily create BAS, GST, and PAYG reports and send them to the ATO. You can also take advantage of this tool’s various features to create end of the financial year reports.
Scheduling Bookkeeping Sessions
Many people make the mistake of carrying out a bookkeeping session toward the end of the financial year. As a result, they often feel stressed out due to the limited time they have to file their reports. As many accountants will tell you from experience, rushing these reports could lead to errors and other issues.
It’s important to develop the habit of doing bookkeeping regularly. It’s ideal to perform this process once a week. Aside from having your financial records organized, frequent bookkeeping also provides you with a clear idea of how your business is doing. Specifically, it lets you keep track of your company’s cash input and output. MYOB’s various features, some of which were discussed in this article, can assist you in performing your scheduled bookkeeping sessions for your business
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