Accounting For Mortgage Brokers:
Four Tips To Speed Up Your Tax Reporting
Do you wait 8 weeks before you get your figures back from your accountant? Do you forget what you even gave them by the time you get it back to review?
There can be some issues with not getting on top of your record keeping. Have you considered what would happen if your bank froze your overdraft account because you haven’t supplied your financial statements in time? What about the cost of an audit from the ATO because you turn up on their radar as you are late submitting your returns?
Here are four tips for record keeping to help your mortgage broking firm get ahead and stay that way. Although none of them are earth shattering, they all add up to a part of your business that if properly handled will add more peace and certainty into your day to day business life.
File all of your receipts, both business and personal, in separate categorised files. Keep separate tabs in a manila folder for your mortage broking business including:
Categorise and total your personal information also. Ideally, record all of your personal tax information on a spread sheet and total them.
Try to use a common accounting system like MYOB or Quicken products. Anything outside of the norm can create headaches for your accountant as each system has its quirks. It may look glossier in the store, but always ask your accountant what their preferred product is first for your mortgage broking firm. They may even have a discount available for you if you purchase through them.
Remember the saying ‘garbage in garbage out’? Customers that don’t have the skills necessary to enter data into their bookkeeping software create what we call the ‘computerised shoebox/shopping bag.’
To avoid this, ensure you have undertaken a training course with the accounting software product you have chosen. Reconcile the bank account properly, and check the reports make sense to you each month. Look at the profit and loss report, balance sheet report, cashflow report if your product has the capability, every week or month at the very least. Also check your debtors and creditors reports make sense.
Always check the date of each invoice and make sure it is in the relevant financial year. Again, it is a basic but very common mistake.
If your accountant has a schedule of when you should bring your work in, make sure you follow the advice. This has been done to smooth out workflow during the year. If you leave it to the last minute then invariably you will have longer delays.
Hillyer Riches is a specialist accounting, business advisory and superannuation firm located in Melbourne -they specialise in Accounting for Mortgage Brokers. For more information email email@example.com
This article is for general information only and should not be relied upon without first seeking advice from an appropriately qualified professional.