Never Become A Hapless Victim Of Another Costly Bookkeeping Disaster

Bookkeeping and accounting fees can cause small business owners to tighten their belt, but imagining the vast amount of money you need to spend to repair a bookkeeping mistake can make rethink about skimping on bookkeeping cost. Any business owner is left with no choice but to submit for the business operation to continue.

A business that is competitive and you cannot afford to miss out on grabbing every business opportunity that comes your way. You know that customer loyalty is measured by how you deliver their needs. You know for sure that everything is on the right track until you open your email. Just the thought of opening your email fills you with excitement and fear. You are wondering where the email came from then lo and behold, an email from the ATO.

Although you have not completely gone over the email you received from the ATO, you know that something is not right. Your suspicions have been confirmed as you read the email. To make matters worse, the letter has already been forwarded to your bank by the ATO and they have already been advices of the non-payment. Nothing can be more horrifying than discovering that your bookkeeper is no longer doing what they are supposed to do. You know what is going on and you are waiting for the bank manager to give you a call.

If a small business owner no longer has the ability to pay debts, insolvency and bankruptcy are not far from happening. The bad news is, these things can be beyond the business owner’s control. Financial loss can be due to a number of reasons. For instance, if your business partner is experiencing marriage break down, it can definitely result in business mismanagement and cash flow shortages. However, a business owner still has the option to get out of this difficult financial situation.

A business can be compared to driving a car because you know to keep an eye on the dashboard and avoid driving too fast or too hard. It is also your responsibility to meet your financial obligations to keep the ATO at bay.

The Following Are Alarming Indicators That You Need To Pay Heed To Your Financial Activities:

• Your superannuation payments and GST are always falling behind their schedule.

• Wages, payroll and contractor’s bill are no longer met.

For A Business Owner To Ensure Financial Stability, A Bookkeeper Must Do The Following:

• Ensure that invoices go out promptly and reminder notices are received in a timely manner to avoid making late payments and incurring penalties.

• Create a system that provides bookkeepers the ability to highlight late payers as soon as they are falling behind payment schedule. Bookkeepers can also follow up on late payers the next day.

• Add terms on invoice so that collection costs waived once recovery service becomes a requirement.

A business owner must also perform their obligation so matters will not be taken to court. There are various options available to business owners in settling their unpaid debts. They can call the bank manager, call ATO, arrange payment plan, prepare budget and reduce head-count before the situation becomes worse.

Andrew Donnelly

Written by : Andrew Donnelly

Andrew Donnelly is a degree qualified accountant and registered tax agent. He is the principal of Brisbane Bookkeepers, which provides bookkeeping services to small businesses in Brisbane and its immediate surrounds.

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­ Questions? Give Andrew a call 0450 605 592

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