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Keeping track of your expenses, purchases, sales and earnings is fundamental to the overall sustainability of your business. Effective bookkeeping produces the correct data you need to plan for the future, while also evaluating current practices.

If you think accounting software is only for tracking expenses and generating financial reports, then you’re losing an opportunity to improve your bottom line. By taking advantage of the insights provided by your software, you’ll benefit from a more informed approach to both marketing and customer service. Accounting software can also help in the long term by improving productivity thereby taking meaningful action to increase profits. Here’s how.

Typically the Profit and Loss account (now more correctly called a Statement of Financial Performance) is one of the easier – if not the easiest – financial document to understand by small business owners. It’s typically presented in two parts.

Small business owners spend, on average, up to 10 hours each week recording, organising, and processing their financial transactions – everything from accounts receivable and payable, to employee payments, expense receipts and supplier invoices.

Most accounting softwares are fairly simple to use, so small business owners often learn the basics to it fairly quickly. Accounting software allows owners to automate processes like invoicing and payroll, track expenses and view real time financial reports to manage cash flow, therefore making better business decisions.

Preparing for tax season is really a year-round task. The first tip is to update financials on a monthly basis, using a streamlined software or cloud-based system.

By handling their financials themselves many small business owners think they’re saving money. While it is a skill to learn bookkeeping basics, cash flow management and tax obligations, there are several benefits to hiring an accountant to oversee your finances. By leaving your books to a pro you will have more time to better serve your clients and implement plans for growth. Here are a few ways an accounting professional can help you save money to put back in your business.

The following car threshold amounts apply from 1 July 2017;