Bookkeeping and finance management

It may be daunting as a small business owner, looking forward and not knowing what the future can bring. Many new businesses fail for simple reasons such as erroneous bookkeeping or inadequacies in budgeting, cash flow forecasting and financial management.

These are avoidable by taking simple steps and being smart with your finances. Here are some mistakes that you should avoid as a business owner.

1. Choosing to DIY bookkeeping

Unless you’re willing to put a lot of time and effort into maintaining your own books for your business, it might be better off for you to outsource your bookkeeping to a professional bookkeeper. Outsourcing your bookkeeping to a skilled bookkeeper will free up time for you to focus on your business.

A skilled bookkeeper can also go the extra mile and provide help with your financial planning or optimize the use of your bookkeeping software.

Maintaining your own books often results in errors which will take up time and money to fix further down the road.

2. Not recording and keeping receipts of expenses

Don’t forget to keep record and receipts of small purchases, even those under $75 dollars.

Over time, the ATO may come looking for proof of these expenses when you make claims, so better to stay safe than sorry. Additionally, beware when making business purchases out of your own pocket because it’s easy to lose track of these.

Remember: When in doubt, keep the receipts!

There are plenty of apps and software which make it easy to scan and keep the receipts. Just ask your bookkeeper for suggestions.

3. Lack of communication with your bookkeeper, whether they are internal or external

Whether you have a bookkeeper as an employee or have outsourced the work to a bookkeeping/accounting firm, make sure you constantly communicate with them. Bookkeepers can only work with the data that you provide them. If you fail to mention expenses or payments for regularly used services, you may have serious issues later on. They need to know the ins and outs to be able to maintain your books for you.

4. Forgetting to reconcile bank statements

Reconciling bank statements is a simple task that involves comparing your bank statements and books to make sure the numbers add up. This will allow you know whether you have a hole in your records or whether you need to give your bank a phone call. Reconciling bank statements is a simple way to make sure you avoid mistakes with your account records.

5. Not having a backup of records

Cloud accounting software (eg. Xero) and cloud storage (eg. Dropbox and Google Drive) are backed up regularly by the service provider. However if you are maintaining records on your local drive, it’ll be a good idea back up your data regularly to avoid issues if your computer system crashes.

6. Mis-categorizing your employees

Be aware of your employee types when filing for your taxes. Your responsibilities are different depending on whether a person is an employee or non-employee, such as a freelancer or a contractor. Be sure.

7. Combining personal and business spending’s

A common recommendation for business owners is to set up a separate back account for your business. This way you can easily access information you need when you prepare your tax return. Having a separate account from your personal one will also help you to easily prepare a business management strategy when you see how your financial needs and profits line up.

Bookkeeping and finance management is a time consuming and often a frustrating part of business ownership. But it is ultimately essential if you want to succeed in your industry. Our team here at Opulent Accountants are friendly, passionate, and most of all, skilled bookkeepers. We would love to work with you to make sure you avoid these little mistakes and we’ll ensure your books are in tip top shape to help you succeed with your finances. Contact us today!

Leave a Reply



Nishant Kosambi
Nishant Kosambi
2 February 2023
Excellent work by Dayan, Chamie, Lihini and the entire team. They have always been very professional and helpful. They have taken care of my business and personal tax obligations for many years. They have also sought financial solutions for me. I am very happy with how thorough Dayan is with his work. Clear communication and regular follow-ups all the way. 5 stars for this gem of a person and his team.
Ajith Ratnarajah
Ajith Ratnarajah
6 November 2022
These guys are very professional. You get the best of both worlds of a personalised service from a company rather than from an individual accountant. Their processes are well established. I would strongly recommend Opulent for any small, big companies and high net worth individuals.
Da Bella
Da Bella
12 August 2022
I consider myself extremely luck to be introduced to Dayan and his team. I found the solution to my loan requirement in one meeting itself...Super efficient, friendly and humble....Opulent finance rocks!!
srikanth chintalapudi
srikanth chintalapudi
11 July 2022
Dayan and his team did it again!!! They're proactive and provided timely advice in the recent sale of my investment property. They're advice saved me a lot of $$. Dayan and his team have been assisting me for the last 10+ years and they're always a lifesaver. Highly recommend!
Chamith Subasinghe
Chamith Subasinghe
15 February 2022
The team at Opulent have been extremely helpful and resourceful in securing a home loan for me. The responses have always been quick and progress made quickly through the loan application process. The advice provided by Opulent is high quality and very useful, special call out to Ishara and Dayan who have been very knowledgeable, experienced and professional. I have recommended Opulent to my friends and they have had positive experiences as well. I would highly recommend giving Opulent a go!
Daniel C
Daniel C
26 December 2021
Highly recommend Opulent Accountants! I've been lucky enough to deal with Hasi, Dayan and Charlene and all three of them have been a great help. Thanks guys.
5 November 2021
Great Accountants and Mortgage Brokers. Prompt, Professional, Well-informed and Responsive.
Kesh Aryaratne
Kesh Aryaratne
11 October 2021
The team at Opulent are professional, accessible, friendly and most importantly prompt in getting matters sorted. I have had the pleasure in dealing with both Dayan and Hasi who have guided me throughout and have been extremely helpful in getting my complex tax matters sorted on time and in a professional manner. Great work guys.
Mukesh S
Mukesh S
29 September 2021
I was apprehensive to take the plunge into refinancing my loans. However Dayan and his team were very patient and made it a point to respond to all my queries and doubts . They must be leading busy lives themselves, however they were flexible and accommodative of my requests for meetings at close of business hours. Further I noticed that they are particular in their and the customer's paperwork. Along with Dayan, I'd like to call out the efforts put in by Ishara for ensuring a smooth transition. She has ben patient with my many queries and diligent in her handling of the paperwork. Thank you Dayan and team.