Small Business Series – Part 6: Setting up accounting systems
Welcome back to our Small Business Series. In this post we will look at the importance of record keeping and accounting systems. With good systems and processes in place, you can track your income and expenses and comply with your tax obligations.
Starting a new business is an exciting journey, but it comes with its fair share of decisions. One of the most important decisions you'll face is choosing the right accounting system. Your accounting system is the backbone of your financial management and compliance, so it's crucial to select one that meets your business’s needs.
Factors to Consider When Choosing:
Tax Compliance: Ensure the software supports Australian tax laws, GST tracking, and BAS preparation.
Ease of Use: Look for an interface that is easy to use, especially if you don’t have previous experience in business accounting.
Budget: Ensure the cost of the software aligns with your business’s budget.
Scalability: Choose a system that can grow with your business.
Integration: Check for compatibility with other tools you use (e.g., POS systems, eCommerce platforms).
While it’s possible to handle many financial and tax tasks yourself, engaging with a trusted adviser at LCB Accounting Solutions can be a smart move, especially in the early stages and as your business grows. For new businesses we can assist you with choosing and implementing the right solution for your business based on your needs and for existing businesses we can review your existing systems and provide recommendations to streamline or improve your processes.
When Katie launched her small online retail business, she started out using spreadsheets to track her sales and expenses. It worked for a while, but as her customer base grew, she found it increasingly difficult to stay on top of invoices, payments, and stock levels. BAS time became stressful, and she wasn’t confident her figures were accurate.
After meeting with LCB Accounting Solutions, Katie moved to Xero — a cloud-based accounting platform that allowed her to automate bank feeds, track GST, and send professional invoices instantly. With some initial training and ongoing support, she gained confidence in managing her numbers and could finally focus more on growing her business, not chasing paperwork.
Within just a few months, Katie’s financial visibility improved dramatically. She could see her profit margins in real time, manage her stock more efficiently, and work with her accountant to plan ahead for tax and cash flow.
Cloud Accounting – Why It’s Worth It
Cloud-based accounting systems have revolutionised how small businesses manage their finances. With everything securely stored online, you can access your data anytime, anywhere — whether you’re in the office, on the farm, or travelling between clients.
Some key benefits include:
Automatic bank feeds – no more manual data entry.
Real-time reporting – make decisions with up-to-date financial information.
Collaboration – your accountant can log in and help you instantly.
Data security and backups – your information is protected and recoverable.
App integrations – connect payroll, inventory, point-of-sale and CRM tools.
Setting Up for Success
Getting your accounting system right early saves you significant time and money later. LCB Accounting Solutions works closely with small business owners to:
Recommend the right software for your industry and size.
Set up your chart of accounts and GST correctly.
Integrate with your bank feeds, payroll and invoicing systems.
Provide ongoing training so you understand your numbers with confidence.
Whether you’re starting from scratch or looking to upgrade, we can help you create a system that works efficiently, keeps you compliant, and gives you better control of your business finances.
Coming Up Next
In our next post, we’ll look at cash flow management — how to plan for the ups and downs of small business income and keep your business financially healthy all year round.