Author name: Phu Tran

As a digital marketing start-up, having your accounting in order is crucial for sustainable growth. Here are five accounting tips to keep your financial health in check. Plan for Tax Compliance Understand your tax obligations from day one. This includes knowing which taxes apply to your digital marketing business, setting up the right accounting systems to collect the necessary data, and planning for periodic GST payments. Cloud-based accounting software like Xero can be invaluable. They offer functionalities like invoicing, expense tracking, and financial reporting, which are keys in monitoring your financial performance and in making informed business decisions. Staying compliant avoids penalties and legal issues. Separate Personal and Business Finances It’s essential to establish clear boundaries between your personal and business finances. Open a business bank account and use it for all business-related transactions. This separation not only simplifies accounting but also provides clarity during tax season and helps in establishing a clear financial history for your business. Utilise Project-Based Accounting Given the project-centric nature of digital marketing, you recommend you to adopt a project-based accounting approach. This will allow you to track your revenues and expenses on a per-project basis. This also provides insights into which projects are most profitable and helps in making informed decisions about future endeavours. Keep a Close Eye on Cash Flow Cash flow is vital for any start-up’s survival. It’s important to carefully track your cash flow to avoid running low on funds needed for operations before client payments come in. In industries like digital marketing, where some seasons are more profitable than others, adapting your financial planning to these fluctuations is key to thriving. For more insights, check out our previous blog on ‘6 Tips to Improve Your Cash Flow‘. Regular bookkeeping By maintaining rigorous bookkeeping practices and regularly analysing your financial statements, you gain a real-time understanding of your business’s financial status. Seeking assistance from a bookkeeping expert is crucial to ensure your financial numbers are accurately maintained, freeing up your time to concentrate on core marketing services. This help empower you to make informed strategic decision that can drive growth and enhance profitability. Phu & Co Financial Bookkeeping Services Can Help Getting your bookkeeping right from the start is crucial to avoid costly mistakes and potential penalties from the ATO. At Phu & Co Financial, our Bookkeeping Services are designed to keep your financial records in order and compliant. Explore our Bookkeeping Services to ensure your business stays on the right financial track.