Understanding the value of staying on top of the accounts

By May 10, 2022 All

In a brief catch up with Fiona Tyrie, Head of Bookkeeping Client Relationships at MBC Group Services we talked about staying on top of the bookkeeping; what it means, how that benefits the business function and the risks of not keeping up with the “book work”.

In the wake of launching our new Bookkeeping Website this week, mbcbookkeeping.com.au I asked Fiona why MBC Group Services sees bookkeeping as such an important function of business management.

We tend to see owners of small and medium size businesses who have an accountant but do their own bookkeeping and sometimes they struggle to find the time to manage the accounts as well run and grow their business.

MBC Group Services has launched a dedicated bookkeeping site to create focus on the importance of this function in a business and provide business owners with easy access to information about how to get help with their accounts, invoicing, bank recs, payroll, activities statements lodgements, super obligations etc.” Fiona said.

There are some key benefits to a business when the business owner(s) has their finger on the pulse and the figures up to date. If the bookkeeping is managed well, it means the bank reconciliations are done regularly and the business stays ahead of regulatory obligations such as BAS, IAS and SUPER lodgements.

Staying on top of reporting obligations is important but also, if the bookkeeping is up to date, at any given time, the business owners will know how their business is tracking. This has a flow on effect when it comes to the end of financial year because the accountant will have financial and accounting information coded correctly and can more effectively prepare the end of financial year tax work.

If a business wants to grow and expand, the business may need access to finance or capital during the year. Again, if the accounts are up to date, owners can present current clear information on cash flow budgets and forecasting to a bank manager or finance broker which may facilitate or expediate the approval of finance.”

We’ve seen this happen over and over.” Fiona added.

It’s clear to me there is plenty of upside to getting and staying on top of the books as a business owner. Outsourcing or partially outsourcing this management function of the business is cost effective and takes the stress out of having to work in an area of the business that perhaps isn’t your forte – your skills probably lie elsewhere.

Whilst there are business benefits to good bookkeeping management, there are stiff penalties being introduced and enforced on businesses that miss lodgement deadlines and payments of employer obligations. Fiona says, say more and more her team are seeing the ATO issue penalties for late lodgements and more recently have been advised that payment late super obligations will be severely penalise also.

The ATO is an important consideration in running every business”, she says “small business owners should not have a debt with the ATO. For example, if you lodge your BAS (Business Activity Statement) after itss due date the ATO will now issue a “Penalty for Failure to lodge activity statement on time” which comes with a fine. When the bookkeeping falls behind there is a flow on effect to late obligations being lodged and now the ATO is fining business as a result”

When the bookkeeping falls behind there is a flow on to late obligations being lodged and what happens now is that the ATO is fining business

If you would like to know more about how MBC can solve your Bookkeeping issues and help you get back on top of the “bookwork”, visit the website mbcbookkeeping.com.au or contact Fiona Tyrie on (02) 63620988 to talk about your business bookkeeping requirements.

 

Written by Ned Sweetapple

Ned works with Fiona at MBC Group Services, Orange