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8 Ways To Simplify Accounting In Your Small Business

Running the finances of your small business can often be a big job, especially if you are managing all of your invoices, taxes and accounts on your own. Breaking your current system down into clear and precise steps will help you to compartmentalise your accounts and create a system that works seamlessly for your business.

1. Keep Track Of Your Expenses

Using technology to track your expenses is the easiest and most effective way to keep them safe and secure until it’s time to use them again. Storing receipts, invoices and pieces of paper is an outdated and inefficient way of managing your small business financials. We would recommend taking photos of your receipts on your phone as you go and saving the images to an external hard drive, or the cloud.
Once you get into the habit of taking pictures of your receipts you will never lose a piece of paper again, a habit that will also make your small business accountant’s job easier and more thorough. Providing your accountant with receipts in a digital format will ensure every invoice is accounted for and nothing is lost in the process.

2. Create An Accurate Invoicing System

Having a clear and concise invoicing system is the foundation of your small business financials. The more organized this system is, the easier it will be to focus on the other areas of your business you most enjoy.

Choosing the right accountancy system for your invoicing is very important, as this is the backend of your financial management. With a simple and easy invoice system, you are minimising the margin for error.

Here are our top 4 tips for efficient invoicing:

  1. Keep accurate records, this makes invoicing easy.
  2. Decide how often you will invoice, regularity will help you to manage and predict cash flow. 
  3. Define your accepted payment methods, this will make it easy for your clients to pay.
  4. Set up your invoice to have a ‘payment due date, this will ensure timely payment and communicate your expectations.
  5. Don’t forget the importance of human touch – give your clients a call and introduce yourself, people still want to know they are dealing with a fellow human.


3. Create A Payroll System

Unless you are working completely solo, you likely have more than one employee. Having employees means that you will need a secure payroll system. Setting this system up correctly is vital for the day-to-day operations of your business, which is why we would recommend consulting with a small business accountant.
Enlisting the services of a professional will save you time and money in the long run, and will ensure your small business is running smoothly from the beginning. A small business accountant will make sure your correct tax codes and direct debits are handled correctly and in a manageable, straightforward manner

4. Use Secure Software

Don’t be intimidated by new technology and software. In this day and age, there are an array of simple yet effective software systems that are designed for even the most inexperienced small business owner. Doing your research on systems that are recommended by other users will help you to make the right choice. Here is a checklist we recommend you go through when choosing a secure software system:
Check out the cost: Start by outlining your budget, this will give you a rough idea of what you can afford to spend and whether you want to invest in full accounting software or just a few features.
How user-friendly is the software?: Think about how many people you want to use your accounting software and how you would prefer to use it.
What security features does it offer?: Security is important, so choosing a software system that has encryption software installed and a 24/7 monitoring service is absolutely essential.

5. Know Your Tax Obligations

Knowing your tax obligations is one of the most important aspects of any small business. Filing these correctly and on time can either make or break your financial system. It’s good to know that not all software systems offer taxation services, which is why we would recommend you enlist the services of a small business accountant for your tax obligation requirements.
Seeking the help of a professional will provide you with up to date advice on your taxes, and can advise you on the appropriate tax to collect from your clients, as not every situation is the same.


6. Operate From A Separate Bank Account

Whether you are a freelancer or running a small business with employees, using your personal bank account is never a good idea. Separating your personal incomings and outgoings from your business will make your accounting particulars transparent and easier to manage.
Routinely reconciling your business bank account is another way to ensure you are avoiding mistakes and keeping on track with your accounts.

7. Maintain Accurate Records

Filing your expenses and checking them regularly is the best way to maintain accurate accounting records. Enlisting the services of a small business accountant will ensure your financials are cross-checked and stored correctly.
Maintaining accurate records will make every other aspect of your small business more efficient and straightforward, hugely benefiting its operation and management.

8. Weigh The Benefits Of Hiring A Small Business Accountant

Hiring the services of a small business accountant will give you the time you need to focus on the growth of your business. Let professionals take care of the New Zealand laws and regulations surrounding your accounting operations, so you can liaise with customers, manage staff and expand your business. The services of an experienced small business accountant will save you time, money and make sure you are prepared.
For all of your small business accounting services, give the team at Consol a call on 0800001851. We offer a free, comprehensive consultation that will answer all of your accounting queries.

If you couldn't find your answer, or are unsure about the information provided, please don't hesitate to contact one of our dedicated accountants at info@consolgroup.co.nz today!

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Curtis and Katie Hacon Director, FiTiki Limited

"I had put off finding an accountant for a while because of the cost and perceived hassle however after my first consult with Consol, I immediately wished I had connected with them sooner. Consol are responsive, affordable and easy to deal with. Being able to outsource this aspect of my business has allowed me to focus more energy on the parts of my work that I love. "

Dr Rebecca Herald Clinical Psychologist

"I have been most impressed with Consol accounting team since I made the switch last year. The ‘Switching over’ process was really simple, after the initial set up process I can track and log my company’s financial activity with ease and accuracy. By far the most efficient and helpful service I’ve had with accounting companies. Thank you"

Vivien Ye Aesthetic Nurse Specialist, Vivip Limited

"I started out in full-time private practice over a year ago and also registered as a limited company. I love doing my work and seeing my clients, but I soon discovered just how much time doing the financials could take up. In the first year, I worked on my own tax returns and company statements, but was unsure I had done them “right” and really wanted an accountant’s expertise and guidance. From my first phone call to Andrew Joo of Consol Accounting Limited, I could tell that this service would meet my needs. He has been quick to respond, patient with me, great at teaching lots and is a Xero master user. I find the system easy to use now, and feel encouraged to get the most out of my business and confident in knowing that I will meet my tax obligations. Compared to how long it took me to struggle at doing this on my own, there is clear value in getting the professionals to do my accounting."

Dr. T Melanie Lage, MNZCCP Clinical Psychologist, Lakes Psychology Limited

“I had been searching for an option for my accounting for my business I found Consol to be so easy to get started with the team being available at nearly every point in the day! Highly recommended all those that have busy lives and need to free up some time.”

Andre Stewart Tremains Real Estate, Bay of Plenty

"Consol are great to work with responsive when I have questions, quick to prepare any necessary document and always willing to help if there's anything I'm unsure of. Very happy to have found them."

Stefan Dyke Director, SLHE Consulting Limited

"I would genuinely recommend Consol for all your financial and accounting needs. I needed an accountant quickly to help me find my feet starting up a rapid business. I genuinely had hundreds of thoughts and questions and wanted to do things right first time ... it was all a bit daunting, exciting and a steep learning curve. Andrew Joo was so supportive as he instantly responded to all my needs and then coached me through a solution and helped me understand the minefields at first . It’s really easy now the business is booming and all my accounting is taken care of so I can enjoy the fruits of my labour. I still reach out occasionally and have the answer super quick.. thanks to Consol."

Karl Jones Director, Retail Resilience

"I had just started out in business and soon realised that someone was going to have to help me with my accounting and tax compliance functions. I was very conscious of the need to be vigilant about incurring any new costs, consequently I did a fair bit of research. I came up with the conclusion that I could get everything I wanted, under one roof, from Consol Accounting, at the most competitive rate I could find on the market. It was a win-win. After joining their team I discovered there were a lot of loose ends to sow-up before I could start functioning effectively, and focus solely on running the business side. Andrew, the Founder from Consol Accounting, was an absolute God-send. He was very personal and approachable, and made setting everything up from scratch so easy and so quickly. I’ve basically been running on auto-pilot each month ever since. Just as I had planned. Thanks for your service, guys, best decision I made."

Andre Illemann Like No Other Limited, trading as GoodMooty

"I operate 3 businesses. As a busy owner I needed reliable accountant. I have been using Andrew as my accountant almost for a year and this is my second accountant. I commited transition as one of my friends recommended him and now I thankful to him. Andrew and his team provide a prompt sound and reliable service that is always professional. Andrew is always on hand to answer my queries and it is very professional and prompt in replies even on weekends and publicholidays. He has wide range of knowledge and experience in service of accounting and taxation. He has been helping me out with tax deduction and meximisation of profit. I can highly recommend him to others as he is very motivated and trusted. I would like to make longtime relationship with him and his team."

Steve Kong Director, Katsubi Hamilton & Tauranga

"When I need to get help with my finances and taxation since starting my own business, Andrew at Consol Accounting has advised me on the right approach. Professional and a great experience overall, I strongly recommend Consol Accounting to everyone who needs to get support for taxation."

Michael Park Director, Renewcar East
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