Bookkeeping problems often start with small decisions that seem harmless when a business is new. Denise Kingston from Jim’s Bookkeeping in Tasmania explains how getting the basics right early can save business owners extra time, unnecessary costs, and bookkeeping headaches later.
Watch the video above, or keep reading for the full Q&A.
What Bookkeeping Mistake Costs Small Business Owners More Later?
The biggest bookkeeping mistake is failing to set up the books properly from the start. Denise Kingston says small business owners may avoid the upfront cost of professional setup, but fixing a poor system later can cost more because extra time is needed to sort, correct, and organise records.
Her advice is straightforward: talk to a bookkeeper or accountant early and get help with the initial setup. A properly organised system gives the business owner a clearer starting point before transactions and records begin accumulating.
Denise has worked in accounting and has also owned businesses herself, including in automotive and food brokerage. Her family has a history of small businesses, so she understands the practical side of managing a business as well as its books.
Business owners who need help getting started can explore Jim’s Bookkeeping services for bookkeeping and accounting support.
Should I Get Help Setting Up My Books If I Want To Do Them Myself?
Yes. Even if you plan to do your own bookkeeping, Denise recommends getting a bookkeeper or accountant to make sure everything is set up properly first.
Doing the ongoing bookkeeping yourself does not remove the value of getting the original structure right. You may still choose to capture receipts and handle your own day-to-day records, but Denise’s advice is to have somebody experienced make sure the system is correctly established.
The reason comes back to cost. Denise says fixing the bookkeeping later can be “far more costly” than setting it up properly at the beginning.
Small business owners can also request a bookkeeping quote to discuss the support they need before deciding how much bookkeeping they want to manage themselves.
Why Should Small Business Owners Surround Themselves With Other Business Owners?
Small business owners should have people around them who understand what running a business is actually like. Denise says small businesses can easily become disconnected, particularly when an owner spends a lot of time working alone.
That support can come from different places. Denise suggests having a bookkeeper, friends who own businesses, or other people who understand the process.
She speaks from experience. Denise works from home by herself and says one reason she stayed with Jim’s after joining nearly six years ago was the support. She says the other franchisees are brilliant and that somebody is usually available when she gets stuck or simply needs a conversation.
That sense of connection also reflects the broader Jim’s Group franchisee support network.
Should I Keep My Business And Personal Funds Separate?
Yes. Denise recommends keeping business and personal funds separate because mixing them creates more work for you or your bookkeeper.
Every personal transaction that appears among the business transactions has to be dealt with. That means somebody needs to spend additional time organising the records.
Denise puts the problem simply: time costs money.
Keeping the funds separate gives the bookkeeping a cleaner starting point. Instead of working through personal purchases while trying to identify the business activity, you or your bookkeeper can concentrate on the transactions that actually relate to the business.
It is a simple habit, but it can reduce unnecessary bookkeeping work later.
Will My Bookkeeper See What I Am Spending Money On?
Yes. A bookkeeper will see the transactions they need to work with when organising your business records.
Denise gives a simple example. You may not necessarily want your bookkeeper seeing that you went to McDonald’s or seeing other personal purchases that have nothing to do with the business.
Her main concern, however, is the additional work involved.
When personal and business spending are mixed together, somebody needs to identify and organise those transactions. That takes more time, whether the work is being done by the owner or the bookkeeper.
Keeping the accounts separate helps keep personal spending out of the business records and reduces the amount of sorting required.
What Is The Best Way To Save Time On Bookkeeping?
Denise’s biggest time-saving tip is to use the apps available with your bookkeeping software to capture receipts when you spend money.
Her example is buying fuel. Instead of putting the receipt somewhere and hoping you can find it later, take a photo using the relevant software app while you still have the receipt.
Denise says the receipt can then go into the bookkeeping software. Once that record has been captured, the business owner is no longer relying entirely on keeping the original piece of paper safe.
The important part of Denise’s advice is the timing. Capture the receipt when the transaction happens rather than leaving the paperwork to build up.
That creates a simple routine and reduces the chance of important receipts disappearing before the bookkeeping needs to be completed.
How Should I Keep Receipts In Case The ATO Asks For Proof?
Capture receipts digitally as you spend money, so you have a backup if the ATO asks for proof. Denise recommends photographing receipts through the software app you use so the information can be retained with your bookkeeping records.
Her point is practical. Once the receipt has been captured and backed up, losing the piece of paper does not necessarily mean losing your proof.
That can remove one of the common frustrations of small business bookkeeping: trying to find an old receipt after the physical copy has disappeared.
The habit itself is simple. Take the photo when you make the purchase, make sure the record reaches your bookkeeping software, and keep your business records organised.
The same principle applies to the broader bookkeeping setup. Getting organised early can save time and money compared with fixing problems later.
Need help getting your bookkeeping set up properly? Call Jim’s on 131 546 to speak with Jim’s Bookkeeping about the support your business needs.