Bookkeeping Software for your Online Business
You Have Started an Online Business and You Have Money Flowing!
It’s the most EXCITING time when all that hard work starts to pay off!
Then you realise you have done NOTHING to sort out your books/finances. You’ve had it on your To-Do list for months, but your sole focus has been bringing in the $$ (understandably).
The next step is to decide how you are going to move forward:
Do Nothing – Put your head in the sand, ignore it, and rock up to get your tax done at year-end. Your accountant is LIVID (not ideal).
Do Something – Start a spreadsheet and begin organizing the information.
Do It Yourself – Research bookkeeping yourself; watch YouTube videos for tips.
Get Help – Find an accountant or bookkeeper to assist.
Do Nothing
Not ideal. I wouldn’t recommend it. You could end up with:
A lot of work in 12-18 months when you have to collate tax information.
Missing information if you’ve lost or misplaced it or don’t remember what happened.
A scare when completing your tax. If you’ve made profits, your tax accountant might surprise you with GST or Income Tax to pay that you didn’t expect.
Do Something
If you’re earning relatively small amounts and aren’t sure if it’s more than a hobby, being organized is essential:
Bank Account: Create a dedicated account for your business/side hustle. Ensure all income and expenses go through this account to simplify tracking.
Make a Spreadsheet: List all your income and expenses with these details:
Date of purchase/sale
Business/Person
Category/Description
Amount
(Example: 04/01/2024 - Bunnings - Repairs to Office - $74.50)
Reports: If using Stripe, PayPal, Shopify, Square, or other platforms, run reports for all sales/income from July 1 to June 30.
Do It Yourself
If your turnover is nearing $75,000, it’s time to consult your accountant. You may need to register for GST and start submitting Activity Statements. Setting up the right tools can make bookkeeping much easier. Here are some programs that can help:
1. Xero
Xero is a comprehensive accounting software that simplifies bookkeeping and financial management. Xero is user friendly for a broad range of businesses
Benefits:
Helps you save money by enabling you to manage your bookkeeping with proper training.
Features include easy submission of Activity Statements, detailed reporting, and ownership of your financial data.
Supports integrations with other software, offering flexibility for growing businesses.
Downsides:
Xero can be more expensive than competitors, but the time saved and advanced features often make it worthwhile for most businesses.
2. Hubdoc
Hubdoc is an online tool designed for receipt and invoice storage and processing. It’s designed to complement your existing accounting software (aka Xero) and help make processing easier.
Benefits:
Free with certain Xero subscriptions.
A mobile app makes capturing receipts on the go easy.
Allows you to email PDFs directly to the app for processing.
Supports multiple users, making it ideal for teams.
Integrates with Google Drive and Dropbox for backups.
Downsides:
The app can sometimes be glitchy, especially when logging in.
Time consuming if you are trying to learn how to do bookkeeping yourself and add this app on as well. Best to have a decent knowledge of bookkeeping.
3. Quaderno
Quaderno is perfect for businesses selling courses or digital products to international customers.
Benefits:
Automatically collects data from platforms like Stripe and PayPal.
Calculates GST when applicable depending on the country sold to
Issues invoices for sales, as required by the ATO.
Seamlessly integrates with platforms like ThriveCart, Xero
Downsides:
Setting up Quaderno can be time-intensive and requires thorough testing to ensure accuracy.
Get Help
Who can help? Your accountant or bookkeeper is the best place to start when you need assistance managing your finances.
Here’s why getting help early is essential:
Avoid Backlogs: Setting up your bookkeeping systems as soon as possible prevents the overwhelming task of catching up on months (or years) of financial data.
Accuracy and Compliance: Even with professional help, it’s important to understand your income and expenses. This ensures your records are accurate, and you stay compliant with tax and legal obligations.
Expert Guidance: Professionals can guide you through complex financial processes, from registering for GST to submitting BAS or IAS on time.
Words by Jahna Koehler
I’m a business consultant and bookkeeping specialist based in Queensland. My love for numbers began in my teens when I’d tag along to tax appointments, sparking an early fascination with numbers..
Over the past 15+ years, I’ve gained extensive experience working in and with businesses, as well as founding and successfully selling my own specialised accounting practice.
Beyond just managing their books, I’mpassionate about training and educating business owners to truly understand their finances and business operations. My goal is to help them make informed decisions with confidence and build a sustainable, thriving business for the future.
General Advice Disclaimer
All information provided in this article is for general information purposes only. It is not intended to be, nor should it be read as, specific health, business, or taxation advice. Readers must exercise their own independent skill or judgment or seek appropriate legal, financial, and taxation advice relevant to their individual circumstances. For further information, visit: https://keepingbalance.com.au/disclaimer
