A celebrant reached out recently with a query that sparked me thinking about how well we’re all managing our finances. They emailed me asking if they were still a paying member of the Celebrant Institute.

Ironically, the simplest way to find this out would have been for them to log in and check their account status on the website themselves – members.celebrant.institute, and if not that, they should know what they’re spending money on each month.

Their situation highlights a common oversight many sole traders may encounter—the lack of active engagement with their own business finances. Knowing what you’re paying for, and more importantly, understanding your business’s revenue and expenses, is fundamental to discerning whether you’re operating at a profit or merely treading water.

This anecdote serves as a perfect segue into why robust financial management practices are not just advisable but essential for every marriage celebrant.

Here’s how you can keep your business’s financial health in check and ensure long-term sustainability.

1. Separating Your Personal and Business Finances

Start with the basics: open a separate bank account for all your business transactions.

This distinction simplifies financial management and is crucial for clear, accurate record-keeping—a must for any business. The only time the two shall meet is when you transfer money from your business to your personal and that’s called paying yourself a wage.

2. Efficient Record Keeping for the ATO

Maintain meticulous records of all business transactions, including detailed tax invoices or receipts. Store these securely (digitally or if you must, on paper) for at least five years, as required by the Australian Taxation Office (ATO).

Proper record-keeping not only facilitates smoother tax filing but also provides invaluable insights into your financial health.

The best way to do this is in accounting software. I’m not going to recommend one in particular, I hate them all equally, but I currently use Xero for my business plus we also use Xero at the Celebrant Institute. Is it the best, possibly,  but gosh if you read this and you know something better, for all of our sakes jump in the comments and let us know.

3. Managing GST and BAS Requirements

For those of us whose business turnover exceeds the ATO threshold of $75,000, registering for GST is mandatory.

This involves adding or including GST to your prices, saying “ex GST” or “including GST” on your price page, claiming GST credits on business purchases, and filing regular Business Activity Statements (BAS).

Proper management of your GST obligations ensures compliance and prevents unexpected liabilities. If you don’t know about GST it’s your responsibility to learn.

4. Diligent Preparation for End of Year Tax

Don’t wait until the last minute (aka June 30th) to prepare for your taxes. I’m writing this on April 21 and I’ve had a meeting-via-multiple-emails with my accountant about end of year already, if you haven’t, initiate the meeting now.

Regularly update your financial records and consult with a tax professional to identify possible deductions and strategies to minimise your tax liabilities. Consider setting aside a portion of your income regularly to cover your tax obligations.

5. Reconciling Accounts Regularly

Regular reconciliation of your accounts ensures that your bank statements and financial records match up. This practice is crucial for catching and addressing any discrepancies early, thus maintaining the integrity of your financial data.

Also, just between you, me, and the door knob, my accountant said that if/when you get audited, if you’ve been reconciling your bank statements with your accounting software, like Xero and others offer, then it’s a signal to the auditor that you’re actually running a good business and you know what you’re doing.

6. Generating and Analysing Business Reports

Frequent generation of business reports like profit and loss statements, and balance sheets, gives you a clearer picture of your financial status.

These reports are indispensable for effective financial planning and decision-making, helping you to identify trends, manage cash flow, and plan for future growth.

7. Continual Financial Education

Stay updated with the latest financial regulations and practices. Engage in continuous learning through workshops, courses, and relevant publications. This knowledge is vital to navigating the complexities of financial management and keeping your business compliant and profitable.

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Ironically that celebrant won’t read this article, but I hope it’s been a blessing to members, and a reminder that your financial obligation to yourself, your clients, and the ATO, sits on the same level of important as the monitum.

Embracing good financial management practices like these offers more than just regulatory compliance; it equips you with the knowledge and tools to make informed decisions, ensuring your business thrives.

Many, maybe quite a few, celebrants might find that upon inspecting their finances they are not even earning the median Australian wage of $67k per year, or the average Australian wage of $99k a year after their cost of doing business.

Understanding and managing your finances effectively means less time worrying about money and more time doing what you love—making marriages, going on holidays, collecting expensive whisky, or whatever it is that puts a smile on your face.