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What Sort Of Records Do I need For My Business Accounting?

Gone are the days of simply taking your incoming receipts and outgoing invoices, shoving them in a folder, putting that folder in a filing cabinet, and then ignoring the problem until it comes to either tax time or payday. These days, there are hundreds of tools you can use to maintain your records, and these tools make it simpler to make sure you're being paid while also meeting your obligations come tax time without having to pay the highest possible amount by default. Luckily, all you need to do is keep track of a couple of different record types

What Sort Of A Name Is Accounts Receivable, Anyway?

Like the name might suggest, your accounts receivable are all of the payments you're owed by your customers. It's important that you stay on top of this account, and that all of your clients are paying you appropriately for your work. Once an invoice you've sent out becomes late, you can't delay, as late payments can immediately cause a negative effect on your cash flow, and even the slightest shift in the wrong direction can become catastrophic if you're not careful. Instead, keep track of your accounts receivable, so you can be certain that you'll have plenty of money on hand for all of your expenses.

Your Accounts Payable Are Pretty Important, Too

If your accounts receivable are your incoming payments, it follows logically that your accounts payable would be your outgoing costs, otherwise known as the mortal enemy of many adults: bills. You've got them, you need to pay them, and failing to do so can put an early end to your business. However, as a business owner, you can also use these payments to offset your total taxable income at the end of the year, so it's important that you do what you can to keep track of your expenses so you can submit them to the ATO when the time comes. It's just an easy way to make sure your money stays in your own pocket, working for you.

Software Doing The Hard Yards

Simply put, software is your friend. These days, there are hundreds of options for accounting software, whether you're looking for something to maintain your expense records or just something to help you create generalised spreadsheets. With the right software in hand, maintain these records becomes a simple process you'll come to appreciate, since balancing your books at the end of the day can be a thoroughly satisfying undertaking under the right conditions.

Human Hardware Does It Best

Software can do a lot for your business, but getting some help from the best hardware available might be an even better choice. With the M.A.S Partners, our business accountants can help you manage your accounts in ways that software simply isn't able to. To speak with our team of small business accountants in Sydney about what we can do for you, call us on (02) 9211 5000.

 
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