Business records keeping:

What records the ATO may ask for and why they matter

Many business owners focus on keeping their bookkeeping up to date, lodging BAS on time and paying employees correctly. While these are all important, there is another area that often gets overlooked until there is a problem.

Business records.

If the Australian Taxation Office (ATO) reviews or audits your business, one of the first things they are likely to ask for is documentation that supports how your business is structured and operated.

Having these records organised and readily available can make the process much smoother. It can also help demonstrate that your business is meeting its obligations and that decisions have been properly documented.

What records might the ATO request?

The exact information requested will vary depending on your business structure and the reason for the review. However, there are several documents the ATO commonly asks for when auditing companies and trusts.

These may include:

• Trust deeds and any variations
• Company constitutions
• Shareholder agreements
• ASIC incorporation documents
• Minutes and resolutions relating to business decisions
• Share registers and unit registers
• Records of changes to directors, officeholders, shareholders or unit holders

These documents help establish how your business is structured and who has authority within the organisation.

If records are missing, incomplete or inconsistent, it can raise questions that may require additional investigation.

Why does the ATO want these documents?

Business structures come with specific tax and legal requirements.

The ATO uses documentation to confirm that income, distributions, loans and business activities have been handled correctly and in line with the rules that apply to that structure.

For example, these records help the ATO determine:

• Who controls the business or trust
• Who is entitled to income or trust distributions
• Whether shareholder loans or drawings have been treated correctly
• Whether dividends have been documented appropriately
• Whether the structure is operating as intended

Without supporting records, it may be difficult to demonstrate that transactions have been treated correctly.

This is one reason why maintaining accurate documentation throughout the year is just as important as maintaining accurate bookkeeping records.

Good record keeping goes beyond compliance

Many business owners think of record keeping as something they do to satisfy the ATO.

In reality, good record keeping also helps you run your business more effectively.

When information is organised and easy to access, it becomes much easier to answer questions, prepare reports, work with your accountant and make informed business decisions.

It can also save significant time if information is requested by your accountant, bookkeeper, lender or government agency.

Businesses with organised records generally spend less time searching for information and less money fixing issues later.

What does good record keeping look like?

Good record keeping does not have to be complicated.

In most cases, it comes down to having consistent systems and processes in place.

A well-maintained business will generally have:

Supporting documentation for transactions

Every transaction should have documentation to support it.

This may include invoices, receipts, contracts, agreements or other relevant records.

If a transaction cannot be supported, it may become difficult to justify during an audit or review.

Receipts attached within accounting software

Modern accounting software makes it easier to store records electronically.

Attaching receipts and source documents directly to transactions helps create a clear audit trail and reduces the risk of documents being misplaced.

Many accounting platforms also integrate with receipt capture and document management apps, allowing business owners and employees to photograph receipts on their phone and upload them directly into the accounting system. This can help reduce paperwork, improve accuracy and ensure supporting documents are stored in one central location.

If you are looking to improve your record-keeping systems, First Class Accounts Ovens Murray can help. As business app implementation specialists, we understand the different software options available across a range of industries and business types, and can help you choose and implement solutions that streamline document management, improve compliance and make accessing records easier.

Using integrated apps also makes retrieving information much faster when questions arise.

Regular bank reconciliations

Bank reconciliations help confirm that your accounting records match your actual bank activity.

Reconciling accounts regularly allows discrepancies to be identified and corrected promptly.

It is also important to retain copies of bank statements, as these may still be required as supporting evidence.

Up-to-date payroll and superannuation records

Payroll records should accurately reflect wages, leave balances, superannuation payments and reporting obligations.

Businesses that fall behind with payroll administration can face compliance issues and additional work if records need to be reconstructed later.

If managing payroll and superannuation is taking time away from running your business, First Class Accounts Ovens & Murray can help. Our experienced bookkeeping team can assist with payroll processing, record keeping and compliance requirements, giving you confidence that your employee records remain accurate and up to date.

Information that can be easily retrieved

A good record-keeping system allows information to be found quickly.

If the ATO requests documentation, you should be able to locate it without spending days searching through emails, filing cabinets or old folders.

Income records matter too

If your business sells products or services, you need documentation that clearly shows:

• What was sold
• Who you earned the revenue from
• When the transaction occurred
• How much income was received

Invoices, sales records, contracts and payment records all help support the income reported in your business.

The ATO expects businesses to maintain sufficient records to verify the income they declare.

Don't forget expense records

Business owners are generally aware that expenses can be claimed where they relate to earning assessable income.

What is sometimes overlooked is the need to retain evidence supporting those claims.

If you are claiming a business expense, you should assume that supporting documentation may be requested at some point.

Receipts, invoices, supplier records and payment confirmations all play an important role in demonstrating that an expense was legitimate and business related.

Adding to this, outsourcing your bookkeeping can help ensure supporting documentation is collected, stored and maintained correctly throughout the year. By providing professional bookkeeping support, First Class Accounts Ovens Murray can implement consistent processes, attach receipts to transactions, reconcile accounts regularly and keep records organised, reducing the risk of missing evidence when deductions need to be substantiated.

Staying organised throughout the year

Trying to gather records at the end of the financial year or during an audit is rarely the easiest approach.

A better option is to maintain organised systems throughout the year so information is captured as transactions occur.

Cloud accounting software, document management tools and regular bookkeeping processes can all help keep records accurate and accessible.

For many businesses, having an experienced bookkeeping team manage these processes provides confidence that records are being maintained correctly and consistently.

Make record keeping one less thing to worry about

Accurate records support your bookkeeping, payroll, BAS preparation and business reporting. They also help ensure you are prepared if the ATO ever requests information about your business.

First Class Accounts Ovens Murray provides reliable bookkeeping support to help businesses maintain accurate records, organise documentation and keep financial information up to date throughout the year.

If you would like support reviewing your current record-keeping processes or improving how documents are managed within your business, contact us.

FAQS about business record keeping

What records should a business keep for an ATO audit?

Businesses should keep records such as invoices, receipts, bank statements, payroll records, trust deeds, company constitutions, shareholder agreements, meeting minutes and other documents that support business transactions and decisions.

How long should business records be retained in Australia?

In most cases, the ATO requires business records to be kept for at least five years. Some records relating to assets, trusts or company structures may need to be retained for longer periods.

Can accounting software help with record keeping?

Yes. Accounting software can help businesses store receipts, track transactions, reconcile bank accounts and maintain an audit trail. When used correctly, it can make retrieving information much easier if records are requested by the ATO.

Building and construction bookkeeping

Are you looking for a bookkeeper who understands how the building and construction industry actually works?

Construction businesses deal with moving parts every day. Jobs overlap, payments come in stages, and costs shift quickly. Without the right bookkeeping processes in place, it becomes difficult to stay on top of cash flow, payroll, and compliance.

Working with a bookkeeper who understands the construction industry gives you more than just accurate records. It gives you reliable numbers, clear visibility over your jobs, and the confidence to make decisions without second-guessing.

At First Class Accounts Ovens & Murray, we work with construction businesses to make sure your bookkeeping supports how you operate, and doesn't slows you down.

Where construction businesses often lose time and money

There are several areas where we regularly see construction businesses losing time, money, or both. With the right systems, advice, and setup, these areas become far easier to manage and far more accurate.

Tracking work in progress

You need to know exactly where each job sits financially at any point in time. Without this, it is easy to think a job is profitable when it is not.

Applying customer and supplier deposits

Deposits need to be recorded correctly so your reporting reflects real cash movement and job position.

Allocating progress payments

Progress claims and payments must align with the stage of the job. Incorrect allocation leads to inaccurate reporting and poor cash flow decisions.

Accounting correctly for retentions

Retentions are often overlooked or handled incorrectly. This impacts both your reported income and your future cash position.

Complex payroll and contractors

Construction payroll includes awards, overtime, allowances, and subcontractors. Getting this wrong creates compliance risk and impacts your team.

Accurate job costing

If your job costing is not right, you cannot see which jobs are making money and which are not. This is one of the biggest gaps we see.

GST and BAS planning

GST in construction can be more complex than other industries. Planning for BAS avoids unexpected shortfalls and keeps you in control.

Managing your fixed asset register

Plant and equipment need to be tracked properly for depreciation and reporting. This supports both compliance and decision making.

Inventory and materials management

Knowing what you have on hand and what it costs helps avoid over ordering and wasted spend.

Taxable Payments Annual Report

Staying on top of contractor reporting requirements avoids last minute stress and errors.

Accounts payable and receivable

You need a clear system for who you owe and who owes you. Delays here directly affect your cash position.

Cash flow forecasting and budgeting

Cash flow is one of the biggest pressure points in construction. Forecasting helps you plan ahead rather than react late.

The role of systems in construction bookkeeping

The systems you use in your business need to match how your jobs run.

Many construction businesses start with basic accounting software, then continue to grow without updating their systems. Over time, this creates gaps. Manual work increases, errors become more common, and reporting becomes harder to trust.

With the right setup, your bookkeeping system can connect job management, payroll, and reporting. This reduces duplication, improves accuracy, and gives you better visibility across your entire business.

First Class Accounts Ovens & Murray provides practical business app advice and implementation. We work with tools that integrate with platforms like Xero to support job tracking, payroll, and reporting in a way that fits your workflow.

Reliable bookkeeping that keeps your business moving

Construction businesses rely on timing. Payments need to be made, wages need to be processed, and reporting needs to be accurate.

With First Class Accounts Ovens & Murray, your bookkeeping is handled through a fully contracted service model. That means everything is completed on time, accurately, every time. There are no gaps due to staff leave or internal changes.

Your team gets paid correctly. Your obligations are met. Your reporting reflects what is actually happening in your business.

This gives you the stability to focus on running your jobs, managing your team, and planning your next move.

Ready to improve how your bookkeeping works

If your bookkeeping feels harder than it should be, or your numbers are not giving you the full picture, it is time to review your systems.

First Class Accounts Ovens & Murray can step in and take care of your bookkeeping, payroll, and reporting so everything is handled accurately and on time. No gaps, no chasing, no uncertainty.

We also help you choose and implement the right apps for your business, so your systems support your day-to-day operations instead of slowing them down.

Get in touch to review your current setup and see where improvements can be made. A small change in your processes can make a significant difference to your time, your costs, and your confidence in your numbers.

FAQs about Construction Bookkeeping

What does a construction bookkeeper do?

A construction bookkeeper manages job costing, progress payments, payroll, GST, and cash flow specific to construction businesses. They ensure financial records reflect how jobs are delivered.

Why is job costing important in construction?

Job costing shows whether each project is making or losing money. Without it, decisions are based on guesswork rather than actual performance.

How can bookkeeping improve cash flow in construction?

Accurate bookkeeping tracks incoming and outgoing payments, helping you plan for wages, suppliers, and tax obligations before they become a problem.

What software is best for construction bookkeeping?

Platforms like Xero combined with industry specific apps can support job tracking, payroll, and reporting. The right setup depends on how your business operates.

When should I outsource my construction bookkeeping?

If your records are falling behind, payroll is becoming complex, or you do not trust your numbers, it is time to bring in a specialist.

Planning ahead in business

What does the future look like for your business?

Running a business in 2026 comes with a different level of pressure. Global events are directly affecting day to day operations, not just long term planning. Fuel prices have increased sharply, which is flowing through to transport, supplier costs and pricing across most industries.

At the same time, interest rates remain elevated, increasing borrowing costs and tightening cash flow for many businesses.

These external pressures are creating a more unpredictable operating environment. Costs shift, compliance requirements change, and cash flow can tighten quickly if it is not actively managed.

If you are a business owner, the more visibility you have over your numbers, systems and obligations, the more control you have over your decisions.

Planning is not about predicting the future perfectly. It is about being prepared for different scenarios and knowing what actions to take when things change.

Practical steps to strengthen your business position

Start with a clear cash flow forecast

A current and accurate cash flow forecast gives you visibility over what is coming in, what is going out, and when. This is one of the most practical ways to stay in control, especially when costs are changing quickly.

If you are unsure how to structure this, First Class Accounts Ovens & Murray can set up and maintain a cash flow forecast so you are not working it out on the fly each month.

Plan for key obligations in advance

Know when your BAS, PAYG withholding and super payments are due. Planning for these early avoids last minute pressure and protects your cash position.

We manage lodgements, track due dates and help you plan for upcoming payments so there are no surprises.

Understand your breakeven point

Knowing your breakeven point helps you make informed decisions about pricing, staffing and expenses. It also gives you a clear baseline when reviewing performance.

Schedule regular reviews of your numbers

Monthly reviews of your financial data help you identify trends early. This includes looking at revenue, expenses, margins and cash position.

This is where the numbers start to make sense. We can provide regular reporting and talk through what it actually means, so you can act on it.

Set aside funds for tax obligations

Review your current profit position and plan ahead for tax. Waiting until year end can create avoidable pressure on your cash flow.

Work with your bookkeeper consistently

A single meeting will not give you long term clarity. Regular conversations allow you to ask questions, understand your numbers, and adjust your approach as needed.

Our contract service model means the work is done consistently, and you have ongoing support when you need it.

Document your business direction

Be clear on your plans. Whether you are aiming for growth, maintaining your current position, or preparing for exit, your systems and decisions should support that direction.

Review your systems and processes

Inefficient processes cost time and money. Look at how work is being completed and where improvements can be made.

We review your current setup and identify where things can be streamlined, so you are not spending time fixing avoidable issues.

Use the right apps to reduce manual work

Many businesses are still spending time on manual data entry and disconnected systems. The right apps can reduce errors, improve accuracy and give you better information in real time.

At First Class Accounts Ovens & Murray, we support business owners in selecting and implementing apps that match how their business operates. This includes setup, integration and ongoing support so the systems actually work day to day.

Turning planning into action

If you are unsure where to start, or you want clarity around your numbers, systems or obligations, it is worth having a conversation.

First Class Accounts Ovens & Murray provides reliable bookkeeping, payroll and app advisory support, so you have accurate information and processes that work.

Contact us to discuss how we can support your business with clear reporting, better systems and consistent follow through.

FAQs about planning ahead in business

What is cash flow planning in a small business? 

Cash flow planning is tracking when money comes in and goes out so you can meet obligations like wages, BAS and supplier payments on time.

Why is regular bookkeeping important for business planning? 

Regular bookkeeping ensures your data is accurate and up to date, allowing you to make decisions based on current financial information rather than estimates.

How can business apps improve bookkeeping processes? 

Business apps automate data entry, connect systems and provide real time reporting, which reduces errors and improves efficiency across your operations.

Saving time and money with a bookkeeper

Turning a profit will be high on your list of goals as a business owner. And if you want to generate sustainable margins, that means keeping a close eye on the money that’s going out of the business, as well as what’s coming in.

So, how can your bookkeeper help with this in a practical, day-to-day sense?

The days when your bookkeeper just did the bookkeeping, compiled your accounts and filed your BAS are well and truly over. 

Modern bookkeeping firms play a broader role, helping business owners understand their numbers, improve cash flow, manage payroll correctly, and choose systems that support better decision-making.

At First Class Accounts Ovens & Murray, this means reliable bookkeeping paired with practical advice and the right technology, so your business runs smoothly behind the scenes.

If you partner with the right bookkeeper, you can save money in the short, medium and long term. 

That saving often comes from better systems, fewer errors, improved cash flow visibility, and time back to focus on running the business. That combination supports steady growth, rather than reactive decision-making.

Key ways your bookkeeper can save you time and improve financial health

The less unnecessary expenditure you have as a company, the stronger your profit margin becomes. On the surface, it sounds simple. In practice, it requires clear data and consistent oversight.

If you are not fully in control of your financial management, it becomes difficult to see where money is being spent, when it is leaving the business, and why profit targets are being missed. This is where accurate bookkeeping and regular reporting make a measurable difference.

Working with a bookkeeper puts you back in control of your numbers. And that level of clarity continues to matter in an environment where costs, wages, and compliance requirements keep changing.

So, what specific things can your bookkeeper do, and how does that support the long-term stability of your business?

Cashflow management and advice

‘Cash is King’ may be a familiar phrase, but it remains accurate. Unless you can balance the cash inflows and outflows in your business, you will struggle to pay suppliers, meet payroll obligations, or plan ahead with confidence.

At First Class Accounts Ovens & Murray, cash flow support focuses on timing as well as totals. Knowing when money is coming in and when it needs to go out allows you to plan for wages, super, tax, and operational expenses without last-minute stress.

This level of cash flow confidence helps business owners sleep better and make decisions based on facts rather than assumptions.

Cost control and spend management

To improve cash flow, you need visibility over your cash outflows. Cost control is not about cutting everything back. It is about understanding what is necessary, what is optional, and what is no longer delivering value.

Clear bookkeeping makes it easier to review supplier costs, identify unnecessary expenses, and make informed choices about spending. Over time, this supports healthier cash flow and stronger margins without cutting corners.

Forecasting and financial modelling

When the key financial drivers in your business are clear, it becomes possible to forecast cash flow and model different scenarios. This allows you to plan for quieter periods, growth phases, and changes in staffing or pricing.

Being able to look ahead gives you options. Instead of reacting when cash gets tight, you can prepare and adjust earlier.

Better management reporting and information

Your decisions are only as good as the information you are working with. Reliable bookkeeping supports regular management reporting that covers cash flow, spending, aged debt, payroll obligations, and overall performance.

Clear reports support better conversations with your accountant and give you confidence in the numbers you are using to make decisions.

Business apps that save time

There are a number of business apps that support cash flow management, payroll processing, reporting, and approvals. When these tools are set up correctly and used consistently, they reduce errors and save significant time.

First Class Accounts Ovens & Murray specialises in advising on and implementing business apps that fit the way you work, rather than adding complexity. The focus is always on practical tools that support your workflow and improve accuracy.

Rather than spending your time fixing issues, chasing information, or managing compliance yourself, working with a bookkeeper gives you reliable support and clearer information.

If you want consistent bookkeeping, accurate payroll, and clearer visibility over your cash flow, First Class Accounts Ovens & Murray can provide steady, done-for-you support. Get in touch today. 

FAQs on working with a bookkeeper

How does a bookkeeper save a business money?
A bookkeeper saves money by improving cash flow visibility, reducing errors, ensuring payroll and compliance are handled correctly, and helping business owners make informed decisions using accurate data.

Is a bookkeeper only for BAS and compliance?
No. Modern bookkeeping includes cash flow support, payroll processing, reporting, and advice on systems that improve how a business operates day to day.

Can a bookkeeper help with payroll?
Yes. A bookkeeper can manage payroll processing, superannuation, reporting, and compliance, ensuring staff are paid correctly and on time.

Automation can ease your business workload

Small and medium-sized businesses are spending on average 120 hours a year on admin tasks, according to recent research into productivity at UK SMBs.

If your people are spending 120 hours wading through tedious and unproductive admin, that’s bad for the business and for your overall efficiency. Fortunately, technology and software automation can go a long way towards automating the low-level admin tasks.

While this research is now several years old, the underlying issue remains relevant in 2025. Many small businesses still spend significant time on manual administration, particularly around bookkeeping, invoicing, payroll processing, and reporting.

What has changed is the availability and maturity of automation tools. Businesses now have access to more connected systems than ever before. The challenge is no longer whether automation exists, but whether it has been implemented in a way that actually reduces workload without creating new problems around accuracy and compliance.

This is where structured processes and reliable bookkeeping support become critical.

Better productivity through automation

Automation is an important way to ease your business workload, with a host of different business apps and cloud solutions offering ways to automate your admin.

With ‘smart business tools’ increasing in number and choice, software is utilising automation algorithms, artificial intelligence (AI), machine learning and cognitive solutions to help remove the mundane admin tasks from your workflows.

In 2025, most businesses already use some level of automation, often without realising it. Bank feeds, invoice reminders, payroll calculations, and reporting dashboards are now standard in many systems.

However, more automation does not automatically mean better outcomes. Poorly connected apps, incorrect setup, or lack of oversight can result in duplicated data, incorrect reporting, or compliance issues that only surface later.

Productivity gains come from using the right automation in the right places, supported by regular reconciliation and review. This ensures automation reduces workload rather than shifting the work elsewhere.

Core processes that will benefit from automation

Automated bookkeeping

Just take a photo of your receipts, expenses and invoices and ‘optical character recognition’ (OCR) technology will digitise the output and pull it through into your accounts software. No data entry, no human error and no lost receipts! We can do the rest to ensure your records are accurate.

Receipt capture and OCR technology have continued to improve, making it easier for businesses to collect source documents and reduce manual data entry. This supports better record keeping and faster processing.

What automation does not remove is the need to check that receipts are valid, correctly coded, and meet ATO requirements. A bank transaction alone is still not a source document. Without proper review, automated bookkeeping can give a false sense of accuracy.

First Class Accounts Ovens & Murray supports businesses by reviewing automated data, reconciling transactions, and ensuring records are accurate, complete, and compliant. This is what turns automation into something you can actually rely on.

Automated credit control 

Chasing up debts and late-paying customers takes time. Automated credit control apps track your debtor numbers and automatically sends out customised chaser emails as soon as an invoice is late. This reduces your credit control time, speeds up cash collection and cuts your aged debtor figure.

In 2025, cash flow pressure remains one of the biggest risks for small businesses. Automated reminders can help maintain consistency and reduce the emotional load of chasing payments.

For these tools to work effectively, invoices must be issued correctly and debtor balances must be accurate. If bookkeeping is behind or reconciliations are incomplete, automation may chase the wrong amounts or miss overdue invoices entirely.

When supported by regular bookkeeping, automated credit control becomes a practical way to improve cash flow confidence and reduce late payments.

Automated payment collection

The easier it is to pay you, the faster your customers will pay. Automated card payments and cloud-based Direct Debit solutions allow you to automatically take payment from a customer as soon as an invoice is due. Some solutions will even automate the invoice matching and bank reconciliation process.

Payment automation continues to be one of the most effective ways to reduce debtor days. Direct debit and card payment integrations reduce friction for customers and support more predictable cash inflows.

When implemented properly, some systems assist with payment matching, but this still requires review. Automation supports the process, it does not replace accountability.

Automated reporting and forecasting 

The better your reporting and business intelligence, the easier it is to make informed decisions about your company strategy. Accounting platforms and fintech tools now offer automatic, real-time reporting and forecasting, giving you access to the important numbers and metrics, fast.

Access to real time reports is now common, but confidence in those reports is not. Automated reporting only works when the underlying data is accurate and up to date.

Businesses often have dashboards showing cash flow, profit, and forecasts, yet still feel unsure because transactions have not been reconciled or payroll and super obligations have not been allowed for correctly.

Reliable bookkeeping turns automated reports into decision making tools rather than guesswork. This is where automation and human oversight work together.

Talk to us about embracing the power of automation

If your admin is starting to hold you back, come and talk to us about how automation can pick up some of the heavy lifting as well as giving you the metrics you need for decision making. 

We can review you business processes and identify the automation opportunities, helping you choose the best apps to drive your business efficiently.

In 2025, automation works best when it is paired with structure, consistency, and accountability. Adding more apps without reviewing processes often increases workload rather than reducing it.

First Class Accounts Ovens & Murray works with business owners to review existing systems, clean up data, and ensure automation is supporting accurate bookkeeping, reliable payroll, and clear reporting. The focus is on fewer errors, better cash flow visibility, and less time spent fixing issues later.

If your systems feel messy, unclear, or unreliable, it may be time to review how automation is being used rather than adding more of it.

Contact us to discuss your automation opportunities. 

Answering questions about bookkeeping automation

What is business automation in bookkeeping?

Business automation uses software to reduce manual tasks such as data entry, invoicing, payment reminders, and reporting.

Does automation replace the need for a bookkeeper?

No. Automation supports bookkeeping but still requires oversight to ensure accuracy, compliance, and correct reporting.

Can automation improve cash flow?

Yes, when combined with accurate invoicing, credit control, and reconciliation, automation helps identify issues earlier and improve payment timing.

What should be automated first in a small business?

Bookkeeping processes, invoicing, payment collection, and reporting usually deliver the most practical benefits.

Who should help set up automation tools?

A bookkeeper with business app advisory experience can ensure tools are integrated properly and supported by accurate processes.

How to Measure Business Performance

Running a business means juggling a lot of moving parts. You’re focused on customers, staff, suppliers, and the daily to-do list. But if you’re not keeping an eye on the right numbers, it’s hard to know whether all that effort is actually paying off.

Knowing which numbers really matter, your critical numbers, helps you see what’s working, what needs attention, and where to focus your time. They’re the indicators that show whether your business is healthy, sustainable, and heading in the right direction.

At First Class Accounts Ovens & Murray, we help business owners make sense of their numbers. Because when you understand what to measure, you can make decisions that improve performance, strengthen cash flow, and take the stress out of running your business.

Why knowing your numbers matters

It goes without saying that business success needs to be measured. But it’s equally important to know what to measure. The numbers that matter most, often called your critical numbers, act as the levers that directly influence performance and outcomes.

Focus on four or five key metrics that provide genuine insight into your business health. 

These vary depending on your industry and goals, but most businesses should know their minimum viable sales figure per day or week to maintain operations. 

Understanding your gross margin (the percentage of sales revenue that remains after deducting direct costs) is also essential. It helps ensure you’re covering overheads, meeting personal income needs, and sustaining profitability.

In 2025, many businesses are also tracking non-financial performance indicators alongside their financial data. For example, customer satisfaction scores, staff retention rates, and workflow efficiency can all help identify where improvements will make the biggest difference to your results.

Choosing the right critical numbers for your business

Some examples of tailored critical numbers include:

• Return on investment (ROI) by team member: understanding how each employee contributes to overall business outcomes.

• Average value of proposals or quotes won: helps you refine your pricing strategy and identify where higher-value opportunities exist.

• Number of new client enquiries, networking calls, or meetings: provides insight into how well your business development efforts are performing.

• Average debtor days (the time it takes customers to pay): a critical indicator of cash flow health. If payments are delayed, it can quickly impact your ability to pay suppliers, employees, or the ATO.

At First Class Accounts Ovens & Murray, we often help clients set up real-time debtor tracking and cash flow forecasting tools using Xero and add-on apps like Calxa or Dext, so they can see exactly where delays are happening and take action early.

How to measure your numbers accurately

Once you’ve identified your key numbers, the next step is to determine how you’ll measure them. 

Real-time, cloud-based data has become the standard for smart business management in 2025. With the right software, you can access accurate, up-to-date information anytime, no more waiting for end-of-month reports to know how your business is performing.

Setting up your reporting structure properly from the start makes all the difference. You may need to adjust your chart of accounts, change how income or expenses are coded, or introduce tracking categories to separate revenue by product, service type, or location. These small adjustments create visibility and clarity, allowing you to make better-informed decisions.

Tools like Xero, ApprovalMax, and Calxa can automate much of this process, providing dashboards and reports that highlight performance in real time. 

At First Class Accounts Ovens & Murray, we can help you select, set up, and manage the right systems to suit your business so you always know exactly where you stand.

Turning measurement into improvement

As management expert James Harrington said, “Measurement is the first step that leads to control and eventually to improvement.” When you track the right metrics, you gain control over your business, identify potential risks early, and set the foundation for long-term improvement.

Reliable bookkeeping and accurate reporting give you peace of mind that your business is running as it should. When you understand your numbers, you can move from reacting to problems to proactively managing growth.

Understanding your numbers

If you’re unsure what to measure or how to track it effectively, First Class Accounts Ovens & Murray can help. From setting up cloud-based bookkeeping systems to creating customised management reports, we’ll make sure your critical numbers are clear, accurate, and always available when you need them.

Get in touch today to discover how we can help you take control of your business performance and build lasting confidence in your numbers.

Common questions business owners ask about measuring performance

What are critical numbers in business?

Critical numbers are the key metrics that have the greatest impact on your business performance. They help track financial health, efficiency, and growth.

How often should I review my business metrics?

Ideally, review them weekly or monthly using real-time reports from your bookkeeping or accounting software.

What software can help me track my business performance?

Tools like Xero, Calxa, Dext, and ApprovalMax can automate reporting and provide real-time visibility of your key business numbers.

Can a bookkeeper help me identify my critical numbers?

Yes. At First Class Accounts Ovens & Murray, we help you pinpoint, measure, and understand the numbers that matter most so you can make confident business decisions.

Celebrating Franchisee of the Year 2025

We’re excited to share some incredible news. First Class Accounts Ovens & Murray has been awarded Franchisee of the Year 2025. 

This recognition, presented at the annual First Class Accounts conference, celebrates excellence across the national network. For us, it’s a proud moment that highlights the effort, commitment, and care we put into supporting business owners every day.

What the Franchisee of the Year Award means

The Franchisee of the Year Award is one of the most significant honours in the First Class Accounts group. 

It recognises franchisees who consistently deliver outstanding service to clients, contribute to the broader network, and embody the values of professionalism, reliability, and community support.

For Renae and the team at First Class Accounts Ovens & Murray, this achievement is more than a trophy. It represents years of hard work, countless hours dedicated to helping clients navigate the challenges of running a business, and a commitment to continuous improvement in the services we provide. You can read Renae's thoughts here.

Our commitment to clients and community

Our journey has always been about more than just numbers. It’s about building strong relationships, supporting our clients through the ups and downs of business, and being a trusted partner they can rely on. Winning Franchisee of the Year is confirmation that this approach makes a real difference.

What this award means for business owners

So, what does this mean for you as a business owner? It means peace of mind knowing your bookkeeping is in award-winning hands. It means having the confidence that everything from payroll to BAS lodgements, cash flow forecasting to ATO compliance, is being managed accurately, efficiently, and on time.

When you choose First Class Accounts Ovens & Murray, you’re not just getting a bookkeeper. You’re gaining a team recognised for delivering exceptional results. You can feel confident that your books are managed by professionals who care about your success as much as you do.

This award also reflects the values we live by every day: loyalty to our clients and team, respect for every business we work with, positivity even in challenging times, and a commitment to community. 

These values guide the way we do business and shape the support we provide.

Partner with an award-winning bookkeeping team

We’re grateful to our clients, partners, and community for the trust you place in us. This award belongs as much to you as it does to us.

If you’re ready to experience the difference of working with an award-winning bookkeeping team, we’d love to talk. Get in touch with us today and let’s explore how we can support your business to run smoothly and confidently.

Establishing document systems and processes

With growth comes growing pains. Those pains can affect team morale and your margins. And often, they’re caused by inconsistent or non-existent processes.

To avoid these issues, it's essential to preempt potential friction and put systems in place that allow your business to scale smoothly. Having clearly documented processes not only boosts efficiency and consistency, but also makes it easier to delegate and onboard new team members.

At First Class Accounts Ovens & Murray, we regularly support business owners with setting up and refining their internal systems, especially those related to payroll, bookkeeping, and compliance. 

Here’s a guide to help establish practical, scalable systems in your business.

Nine steps to establish great systems

1. Identify your key systems

Start with your most critical processes. These are usually the ones that are customer-facing, rely on a single team member’s knowledge, cause repeated confusion or delay, or directly impact cash flow (like invoicing or payment follow-ups).

If there’s a task that slows everything else down or holds up your ability to get paid, document that first.

2. Develop a standardised approach to documenting your systems

Consistency is key. Processes should be documented in a way that’s clear and easy to follow. Flowcharts or diagrams are a good place to start, followed by text that explains each step in more detail.

Include checklists, templates (like welcome emails or standard replies), and simple ‘how-to’ guides for tools your team uses regularly. This ensures tasks are done the same way every time, regardless of who’s doing them.

3. Break each process down into bite-sized steps

Make sure each process is clear about:

• Who does what

• When it needs to be done

• How different team members hand tasks over to each other

Clarity prevents tasks from falling through the cracks and makes your team more confident in handling responsibilities.

4. Clearly label and store your documents

Procedures are only useful if they can be found and followed. Online storage (such as Google Drive, Microsoft SharePoint or your project management system) makes access easy and supports version control.

Make sure everything is logically named, and consider creating a shared ‘Systems’ folder where all team members can access what they need quickly.

5. Identify the best person to write each process

The person who actually performs the task should write the first version of the process, they know it best.

This doesn’t need to be a time-consuming job. Start small, with dot points or a screen recording. The business owner or manager can then review and make sure it aligns with overall expectations.

This is where external support can also be helpful. If you need help documenting financial processes, like payroll, BAS lodgements, or expense management, First Class Accounts Ovens & Murray can help you get it done properly, and fast.

6. Test the process

A new team member should be able to follow the documented steps and complete the task with minimal help.

If they can’t, then the instructions aren’t clear enough. Go back and refine it. Use plain language. Remove jargon. Think like someone who has never seen it before.

7. Train your team to follow the process

Introduce relevant procedures during team onboarding and reinforce the importance of following them.

When mistakes happen, treat them as system failures not personal ones. This approach builds trust and encourages everyone to look for better ways to do things.

8. Review and update processes regularly

Don’t set and forget. As your business evolves, so will your systems. Regular reviews, say every 6–12 months, help keep everything up to date and relevant.

Encourage your team to ‘own’ their processes and suggest improvements. They’re usually the first to notice when something’s not working. Avoid the urge to dictate, collaboration leads to better, more practical systems.

If you’re unsure how to start these reviews or want to prioritise finance-related systems, we’re here to help.

9. Look for ways to automate or streamline

Software and automation tools are more accessible than ever in 2025. The right tools can save you serious time and reduce the risk of manual error.

Whether it’s scheduling recurring invoices, automating payroll, or integrating apps with Xero, there’s often a smarter way to do things.

Need help reviewing your finance-related systems or identifying apps that will save you time and money? At First Class Accounts Ovens & Murray, we help business owners streamline, simplify, and automate the processes that matter most.

Making systems work for your business

Documented systems aren’t just for big businesses. They’re what help small businesses grow without the wheels falling off.

The good news? You don’t need to overhaul everything at once. Just start with one process, preferably one that’s causing the most pain, and build from there.

And if you need help getting your financial systems in order, First Class Accounts Ovens & Murray can work with you to review your current processes, recommend improvements, and even implement them alongside your team.

“Speed is useful only if you are running in the right direction.” - Joel Barker

We can help you review and improve your critical business processes. Get in touch!

The true cost of a new employee in 2025

Bringing on another pair of hands?

It can be a big decision to commit to having a new member on the team, but the right person will bring in the skills you need to grow the business and give you more time to achieve your goals, even if that’s to spend more time with your family.

In 2025, hiring someone new is about more than just paying a wage. With rising superannuation rates, more complex compliance requirements, and tight labour market conditions, it’s important to understand the true cost of employing someone before you make the leap.

Before you advertise the role

Spend some time to understand what skills you need in your business to move forward or to strengthen your position in the market. Think about whether your needs are short-term or long-term. Will this person be taking work off your plate so you can focus elsewhere? Or are they bringing in skills that currently don’t exist in the business?

You may decide that the skill gap could be met by training existing staff who have capacity or would be open to a change in job description. Promoting from within can sometimes be more cost-effective and improve staff retention, especially if your existing team already understands how your business runs.

If you're confident you need to hire externally, that’s when it’s time to define the role more clearly.

If the role is new

Decide whether you need a full-time or part-time employee, and what sort of experience or qualifications the ideal candidate would have. Be realistic about your budget, but also think about what’s non-negotiable for the role.

If they need training when they start, consider who will run this and how that will impact timings. Will a team member need to step back from their usual workload to get the new person up to speed? Will it affect productivity in the short term? These are practical questions to answer before you bring someone on board.

A structured onboarding and training plan will help the new hire settle in quickly, and help you get the most value from them in the long run.

Create a job description

This will help you when it’s time to assess candidates. A good job description should cover the key responsibilities, reporting structure, necessary qualifications, and the type of person who would succeed in the role.

Try to avoid too many acronyms and internal jargon that won’t make sense to people outside your company. You want the right people to understand the opportunity and see themselves in it. Being clear about your expectations also helps reduce the chance of misunderstandings down the track.

Your job description is also a great tool for performance reviews and staff development once the person is in the role.

Understand the true cost

Finally, you’ll want to understand the true cost of adding another staff member. This is often where business owners get caught out. It’s not just about salary.

Start with average industry salary rates, and then work out the fixed and discretionary costs involved. These include:

• Superannuation: As of July 2025, the super rate is 12%. This is on top of base salary.
• Leave entitlements: Annual leave, sick leave, and potentially long service leave depending on the employment arrangement.
• Payroll tax: You may need to register for payroll tax depending on your total wage bill and location.
• Workers compensation insurance: A legal requirement in every state and territory.
• Fringe Benefit Tax (FBT): If you offer benefits like car parking or gym memberships, this could apply.
• Recruitment costs: Include the time spent writing ads, reviewing applications, interviewing, and any fees for recruitment agencies.
• Training and onboarding: Whether internal or external, training takes time and resources.
• Equipment and overheads: Don’t forget software licenses, desks, phones, uniforms, or tools of trade.

All of this contributes to the real cost of hiring. Having a clear picture helps you budget properly and avoid cash flow issues later on.

At First Class Accounts Ovens & Murray, we regularly help clients work through these numbers to see whether a hire is viable. We can also forecast the cash flow impact over the next 6 to 12 months, so you can hire with confidence.

Getting payroll and compliance right

Once you’ve made the decision to hire, getting the back-end admin right is just as important. You’ll need to:

• Set up Single Touch Payroll (STP) correctly
• Make timely super payments
• Record leave accruals accurately
• Report PAYG withholding
• Keep your payroll records compliant

Payroll is one of the most sensitive parts of your business. Getting it wrong damages trust and can lead to fines and penalties. Our payroll service gives you peace of mind. We make sure your team gets paid on time, correctly, and in line with the rules.

Bringing it all together

Employing someone new to help take your business forward is an exciting step. But it’s one that should be taken with all the facts in hand.

If you're about to hire your first team member or growing your existing team, talk to us at First Class Accounts Ovens & Murray.

We’ll help make sure your finances, systems, and paperwork are in order before you hire, and that you understand the true cost of bringing someone new into the business.

Get in touch to see how we can help.