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As we step into the new financial year, it’s the perfect time to get your books in order. Whether you’re running a small business or managing personal finances, good bookkeeping habits are essential. Let’s walk through a few best practices that will help you stay organised, stay compliant, and set yourself up for financial success this year.
1. Keep Your Records Updated
Start by checking that all your financial transactions from last year have been recorded. This includes:
- Bank and credit card statements
- Invoices and receipts
- Payroll records
- Loan or finance agreements
Keeping these documents organised and up to date now can save you from a headache during tax season. If you update your records regularly, you’ll always have a clear view of your financial position.
2. Reconcile Your Bank Accounts Monthly
Make it a habit to reconcile your bank statements with your bookkeeping records at least once a month. This helps you catch errors early and keeps your financials accurate. It’s also a good way to detect any unauthorised transactions.
3. Don’t Mix Personal and Business Finances
If you’re a business owner, separating your business and personal finances is a must. Having separate bank accounts makes it easier to track business performance, simplifies tax prep, and avoids unnecessary confusion.
4. Use the Right Accounting Tools
Manual books work, but accounting software can make your life so much easier. It reduces errors, automates routine tasks, and gives you real-time insights. If you’re unsure what software is right for you, we can help you choose one that fits your needs.
5. Stay on Top of What You’re Owed (and What You Owe)
Keep a close eye on accounts receivable and payable. Make sure you’re following up on unpaid invoices and keeping track of your own payment deadlines. This helps you avoid cash flow issues and keeps your relationships with clients and suppliers strong.
6. Review Your Financials Regularly
Take time each month or quarter to review your income statement, balance sheet, and cash flow. These reports help you spot trends, assess your progress, and plan ahead.
7. Don’t Wait Until Tax Season to Think About Taxes
It’s best to plan for taxes throughout the year. Set aside money regularly for tax payments and keep records of deductible expenses. Being proactive helps you avoid surprises and makes the year-end process much smoother.
8. Ask for Help When You Need It
You don’t have to do it all on your own. Our team is here to help you stay on track, keep your books clean, and advise you on how to make your money work better for you.
Contact PATC Today
If you are looking for a reliable, cost-effective, and flexible accounting solution, look no further than PATC’. Contact us today to learn more about how we can help you achieve your financial goals. Take advantage of our one-hour *free consultation now.
If you need assistance in your business’ finances, from accounting to tax consulting and financial management, we can help you. Contact us today and let us know how we can help you.
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