Our Top 3 Bookkeeping Tips for DIY Bookkeepers
If you’re running a small business or handling your own finances, bookkeeping can often feel overwhelming. But with a little organisation and strategy, it’s completely manageable. As experienced bookkeepers in Melbourne, we have worked with countless business owners over the years and while cloud based accounting has made it easy for those who choose to handle their own books, there are a few things everyone should keep in mind. Here are our top three tips to help you keep your finances in check.
Stay Consistent with Your Record Keeping
Consistency is key when it comes to successful bookkeeping. Many business owners get caught up in the day to day and forget to update their books regularly. However, waiting until the last minute to record transactions can lead to errors, stress and even costly missed tax deductions. Receipt apps are great to help with this!
Our advice? Schedule dedicated time each week or month to update your records. Treat it as an essential task, just like invoicing or client work. Keeping things up to date means you’re always on top of your financial situation and can spot potential issues early. When tax season rolls around, you’ll thank yourself for not having to rush through a year’s worth of transactions!
Separate Personal and Business Finances
Ok this one seems obvious but the lines get blurred quickly… One of the most common mistakes we see DIY bookkeepers (and *cough* our clients) make is mixing personal and business finances. When you use the same bank account or credit card for both, it’s easy to lose track of business expenses, which can lead to inaccuracies in your financial reports.
The solution is simple: maintain separate bank accounts and credit cards for your business and personal spending. Not only does this make your bookkeeping cleaner and easier to manage, but it also ensures you’re getting a clear picture of how your business is performing. At tax time, it’ll be easier to claim deductions and avoid issues with the ATO.
Get a Professional ‘Bookkeeping Health Check’
Insert plug here… but seriously, we wouldn’t be providing this as a service if it wasn’t valuable. Even the most diligent DIY bookkeeper can overlook small errors or miss out on better practices. That’s why we always recommend scheduling an occasional ‘bookkeeping health check’ with a professional. Think of it like taking your car in for a service – it helps ensure everything is running smoothly and avoids costly problems later.
For a one-off, single fee, an experienced bookkeeper can review your records, identify any issues, and provide advice on how to optimise your processes. This isn’t about outsourcing all your bookkeeping—it’s about getting peace of mind that you’re on the right track. A small investment now could save you from making expensive mistakes down the line. You can book one in with us here.
Our blog has years worth of articles to help you get all the tips and tricks for your own bookkeeping. You can have a look here.
