Data entry > Bank reconciliations > Business Activity Statements (BAS) > Payroll > Aged debtors > Training
Data entry is a powerful tool for every business. It helps to organise information, helps with employee efficiency, decreases costs, and improves productivity. It can be time consuming for any business owner. But a qualified bookkeeper can have it completed quickly and correctly.
Bank reconciliations are important for many reasons. These include: ensuring the accuracy of company books, detecting any errors in the company books against bank statements, ensuring all items on the bank statement are entered into the company accounting software, and identifying any uncleared deposits or cheques.
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The importance of bank reconciliations is to cross-check or reconcile the information from the bank with the business’ books and records. A bookkeeper can prepare your bank reconciliation and financial statements.
The role of accounting information is at the core of running a successful organisation. The introduction of accounting allowed the personal assets of a merchant to be measured and recognised distinctly from their business operation.
Accounting information generated from the accounting process is useful in a wide range of decision-making contexts including:
- assessment of financial performance
- assessment of short-term liquidity
- assessment of financial stability (longer term solvency)
- Identifying and achieving your financial goals
- VAT – Umsatzsteuer
Aged debtors report & debt collection Simply put, the aged debtor report lists a detailed account of which customers (debtors) owe your company money, how much they owe your company, and when they are supposed to complete payment. This controls your cashflow.
Do you have accounts that are still outstanding 60, 90 days or longer? A letter from your accountant advising them that their outstanding monies has come to the attention of their accountant may help sway them to release the funds to you. In the letter will be mentioned how the next step will be to place the debt in the hands of a debt collector. And these guys keep at it! So it could be worth it to have us recover your debts for you.
Payroll plays an important role in any business for several reasons, because it keeps the records of the employee salary, bonuses, and allowances, etc. Payroll slips, which include the detail information related to the income of the employee also lets them know the amount they have received for the year-to=date. Producing payroll in any accounting software will allow your business to provide the yearly PAYG summaries at a push of the button. Bookkeepers will then reconcile this with the Profit & Loss for the year.
Training can be providing in MYOB, Freshbooks and Quickbooks (Reckon Accounts). Having many years using accounting software, we are familiar with these packages.
If you are new to using any of these packages, we will be able to direct you in your bookkeeping requirements.
If you don’t want to use any accounting software, we can advise in an efficient bookkeeping record system that you may be comfortable with. However, please be advised that accounting packages are an highly efficient tool that will produce many reports for any business owner.
THE IMPORTANCE OF BOOKKEEPING
According to CPA Australia, 32% of businesses fail due to financial mismanagement and out of failed businesses 12% have poor or no records/books.
If you do not have the expertise, please do not hesitate to pay at least a bookkeeper to be involved in your business. The importance of bookkeeping cannot be stressed enough.
Six reasons for good bookkeeping:
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- Better financial analysis and management
- Tax returns made easier
- Asking for funding/ loans from a bank requires financial statements
- Well-kept books makes business planning so much easier
- Not separating personal and business funds causes a lot many businesses.
- Record-keeping required by law for 5 years after the transaction occurs or they are prepared (as per the ATO ).
Generally, VAT must be reported and paid quarterly to the tax office. If the annual VAT liability is over 7,500 Euro, the pre-reporting must be done monthly, and if it is less than 1,000 Euro, once a year is sufficient.In the year of tax recording and the following year, the pre-reports must be made monthly and independently of the amount.
Additionally, an annual return must be submitted for each calendar year.
Bookkeeping accounting is an essential factor that can either make or break your business, whether it’s big or small.
Accounting software – Reckon/Quickbooks, MYOB, Freshbooks