This final rule is a general one.
Business can get complicated. And when it does, accounting records and systems often follow suit. If you’re adding complexity – which will, inevitably, add cost – then make sure you’re getting a good return. Sometimes it’s worth it, sometimes it’s not.
For example, avoid burdening yourself with multiple companies, trusts and structures. They are rarely worth the hassle.
Only use multiple codes for different items if the different codes genuinely help you run your business. Sometimes more information leads to poorer decision-making or less business agility.
And as mentioned above, set up a system for recording your business income and expenses directly, in one place. Some businesses keep paper invoices, which they then enter into a spreadsheet, which then gets sent to an accountant, who inputs it into some software! This is unnecessarily complicated.