Running a small business can feel like juggling flaming torches while riding a unicycle—on a tightrope. And often, bookkeeping is the thing that gets dropped first. But it doesn’t have to be overwhelming! Setting up a simple bookkeeping system can make your life a lot easier, help you stay compliant, and give you a clearer picture of how your business is really doing.
Here’s a step-by-step guide to getting started:
1. Separate Your Business and Personal Finances
First things first: open a separate bank account for your business. Mixing personal and business transactions is a recipe for confusion and stress at tax time. A separate account will make it easier to track income and expenses—and your bookkeeper or accountant will thank you!
2. Choose a Bookkeeping Method
You can go old-school with spreadsheets or embrace tech with cloud software like Xero, MYOB, or QuickBooks. Cloud options are especially handy for Aussie small business owners because they’re ATO-compliant and often include helpful features like bank feeds and invoice tracking.
3. Create a Chart of Accounts
This is just a fancy way of saying: organise your income and expenses into categories.
Think of it like this:
Income: Sales of ABC product/service, Sales of XYZ product/service
Expenses: Advertising, Office Supplies, Wages, Superannuation, Website costs etc.
Most software platforms offer a standard chart of accounts you can customise to suit your business. You can find out more in my Blog post about creating an effective Chart of Accounts here.
4. Record Everything (Yes, Everything)
Make it a habit to record all your business income and expenses. Stay on top of receipts, invoices, and payments. If you’re using software, try connecting your bank account to automatically import transactions (this is called a ‘bank feed’) which will save time when it comes to entering and reconciling transactions.
5. Set a Weekly Bookkeeping Routine
Set aside 30–60 minutes each week (or even 1-2 hours a month) to keep your books up to date. This helps you avoid a big scary backlog and means you’ll always know where your business stands financially. Put it in your calendar and treat it like an important meeting—because it is! You can sign up to my low-cost bookkeeping membership Boss of Your Books for help with this.
6. Understand Your Obligations
If you’re registered for GST, you’ll need to lodge BAS regularly. You might also need to track payroll, super, and PAYG withholding. Keeping a clean bookkeeping system makes all of this easier and helps you avoid fines or last-minute panic.
Need Help Getting Set Up?
If the idea of starting your bookkeeping system from scratch still makes your eyes glaze over, you’re not alone! That’s exactly why I created Aussie Bookkeeping Basics—a self-paced course for small business owners who want to get their books sorted without the jargon or overwhelm.
Inside the course, I walk you through:
- Choosing the right system for your business
- Setting up your software
- Understanding GST, BAS, and your legal obligations
- Getting into a weekly bookkeeping habit
Whether you’re just starting out or you’ve been winging it for a while, Aussie Bookkeeping Basics will help you build a strong financial foundation—without needing a finance degree.
👉 Check it out here: https://www.aussiebookkeepingbasics.com.au/abb/
Final Thoughts
Bookkeeping doesn’t have to be scary. With a simple system and a little consistency, you’ll feel more confident, in control, and ready to grow your business. And if you get stuck, help is just a click away.
