WOW, this last week has just flown past so quickly …
For the last 2 weeks we have continued to look at finance for small business. Last week it was record keeping. Record keeping is one of those necessary evils, if you have a business you really need to do it & if you are able to do it well then it makes life a lot easier when it comes to doing up ALL the paperwork needed for your taxes.
I tend to struggle a bit with keeping records, not just from the point of finding the time to do them, but how to do them. I’ve tried keeping manual records, but unfortunately I’m really not that good with maths, & a calculator only helps if you push the right buttons. There are accountancy programs such as ‘Quick Books’ out there that are very helpful, but they are also a bit expensive, especially for a start-up business. I think Excel will be the way to go to begin with, I just have to decide how to set it all up. Thankfully YouTube has an abundance of helpful videos on just about anything you want to know so I will be checking that out shortly to see what I can find. I want something simple & easy to use, but something that will give me useful information about things such as the percentages of materials etc. that I use so I can make informed decisions in the future about what to buy & whether I need to find better prices for certain things such as packaging.
Peter, our trainer for this section of the course, has provided each of us with an Excel spreadsheet file customised for each of our business which we can also use. It is really great as all we will need to do is add in our sales & expense figure at the end of each month & the balance sheet & Profit & Loss sheet automaticly adjust. So that really only leaves me to deal with the day-to-day figure to work out & a few other things such as stock level records.
Todays lesson was on tax & all the the things such as GST, PAYG, FBT … O.o
If there is one area of running a business I would pay someone to do it would be the book work! Especially the tax stuff. I find it all a bit confusing & frustrating. However, Peter assures us that if we keep good records then it shouldn’t be too big a problem, but he does strongly suggest using a decent accountant for the yearly tax returns though. From past experiences the trick is to find a ‘decent’ accountant & not one who will end up costing you more than it needs too.
Because most of us aren’t registered to collect GST for the first year we don’t need to do monthly or quarterly BAS statements. Apparently after the first year you do need to do quarterly PAYG statements. Apparently PAYG (pay as you go) has replace ‘provisional’ tax. I remember the year Lindsay was first sick, we had a business that wasn’t too well. We went to an accountant to have our taxes done & we not only ended up with a decent tax bill but a sizable provisional tax bill (not to mention the accountants bill!). Thankfully we were able to have the provisional tax bill wiped out as we sold the business just after Christmas because of Lindsays health.
Well I have an assignment to finish – 2nd last one – YAY! 😀
I have some new & exciting things to add to the shop very soon & I have just received some new patterns to try, so until next time …
Love Mignon & Georgie. 🙂
PS: Don’t forget – if you have haven’t completed the survey yet, click here, it will only take about 2 minutes & you will be given a code at the end for a 10% discount at the Nittens & Patches store until the end of December – a great for some Christmas shopping!