Individual tax returns from $110 - $130
Call us: 1300 300 106
Bookkeeping helps in keeping a record of the financial transactions of a company. Bookkeeping is the first part of a company’s accounting process. An accurate and reliable bookkeeping ensures that the latter steps of accounting, such as classifying, reporting and analyzing these transactions take place effortlessly. A strong foundation of bookkeeping will assure in building a healthy and successful business. Booksmart Accountants have put together the top reasons which prove the power of bookkeeping for a business, be it of any size:
Assists in business planning
Bookkeeping forms the basic step for business planning as it provides the business with balance sheets and profit & loss statements for knowing the financial status of a business.
Helps in preparing financial reports for Investors
Bookkeeping keeps track of the financial transaction and provides a business with all the information required to prepare graphs, charts and data analysis which is a crucial requirement for the financial report which is presented to investors.
Satisfy tax obligations
The business is able to retain information and documents through accurate bookkeeping, which is a reliable source for meeting tax requirements. Updating the books regularly ensures that lodging of tax return is an effortless process as it keeps records of expenses.
Organised cash flow
Bookkeeping helps to manage and evaluate the cash flow which makes running of a business easier. One is able to pay the suppliers on time, track the money spent, and know the exact flow of money, be it incoming or outgoing.
Helps in future planning and a time saver
Properly updated books help in planning ahead for the business as it provides easy access to all the information required to know about the company’s future investment. As bookkeeping provides easier access to financial transactions, it saves a lot of time when one is researching on an important data or is looking for a specific transaction made on a day.
If you need assistance with updating your books for building a healthy business, feel free to contact Booksmart Accountants at 1300 300 106.
Keeping your books accurate and reliable would build a strong foundation not just for your tax returns but also provides a sneak peek into your business’ financial state. So Booksmart Accountants have tried to put together some essential tips to make your bookkeeping experience as a business owner more manageable along with running a business:
Organise your records daily
Organisation, as a skill might sound pretty mundane but should definitely be followed as daily ritual. Organising your records daily, throughout the year would drastically reduce stress during tax time. Collect and organise your receipts and record equipment purchases. Make sure that you have documented the income received categorically as cash, credit cards, PayPal and other income receiving methods.
Conduct a regular self-audit to review your finances
Regular self-audits will help you to review your finances and also help in resolving any errors early on. Self-audits will help you to keep track of your books, identify errors and ensure that is no room for mistakes with the money recorded in the books is what is in the bank.
Make books a priority
If you have recently started a new business, you would surely have a lot on your platter and bookkeeping is probably not the first task you would want to deal with. However, it is crucial to make bookkeeping a priority as it will be extremely beneficial in the long run. A control on your book records will give you a control over the whole financial situation of your business as you would know where every cent is spent.
Separate personal and business accounts
Keeping your personal and business accounts separate would help you to save a lot of time. When you have both personal and business accounts together, you have to first spend time on segregating the expenses and this can lead to inaccuracy and discrepancy in bookkeeping.
If you need further assistance with bookkeeping, contact us at 1300 300 106.
Double-entry bookkeeping is just another contribution by the Italians to this world. Luca Pacioli, known as the ‘father of bookkeeping and accounting’ has simplified and added value to the field of bookkeeping through his double-entry bookkeeping system. Double-entry bookkeeping system records one financial transaction in two separate journals and abides by the following equation:
Assets= Liabilities + Stakeholders equity
The two changes caused in the financial transaction in every business- credit and debit transactions are recorded in at least two accounts. This sounds fairly simple, but you must be wondering, why should you make the switch? How would it be really beneficial to your business?
Well, here is a list of reasons to make the switch to this bookkeeping system:
Zero-Based budgeting, also known as ZBB, was a popular method of budgeting in the 1970s and it has slowly started to regain its popularity in organizations and businesses. So what makes Zero-based budgeting different to traditional budgeting? Zero-based budgeting starts budgeting from scratch for every new period. ZBB method assumes that nothing was spent before. Every activity and resources needed for running an organization is critically analysed and has to be justified. Although time-consuming in comparison to traditional budgeting, ZBB ensures that the “needs” and “wants” are separated, and disregards the previous practices of how the resources are managed, even if it has been practiced for several years. One technically starts with a blank sheet of paper and a zero base.
ZBB is a useful way to improve resource efficiency as unneeded expenses are significantly reduced and also simplifies the management process. The expenses are strategically aligned with the planned target for a specific activity and the overall vision of the organization. Zero-based budgeting also helps to re-envision the business more frequently as each activity and resources are evaluated to meet the clear vision and cost target. The various methods of performing an activity should be considered to improve its performance. At which level should the activity be performed and at which frequency should it be completed? How would it significantly improve the running of the business? Would the efficiency improve significantly if the activity is outsourced, or if automated? The budgets are reset repeatedly, the organization is redesigned with employee levels examined regularly and finally, an implementation plan is drawn for the new period to maximize the overall efficiency and increase competitiveness.
Zero-based budgeting is definitely a step-by-step, detail-oriented approach which optimizes cost management and ensures that an organization never runs out of budget because of unnecessary spending! Why not try zero-based budgeting for your new business today? BookSmart Accountants can provide further guidance to help you reap benefits from this budgeting method.
Call us at 1300 300 106 to discuss more.
Most of us have been acquainted with cloud-based technology such as Google Drive and Dropbox and understand that how handy it could prove to be for mass-handling of information when you want it shared amongst a set of team members. Cloud accounting is no stranger too.Software is used to send information and common data to the “cloud”, wherein it is processed and sent back to the users.
With many business owners now switching to cloud accounting, the major benefit from this cloud-based accounting system has been realized as that of freedom from installing and maintaining individually installed software on different systems. Moreover, businesses with multiple branches and remote offices in distant locations can utilize this technology by use and access of same software version with same data within its own organization or in collaboration with other organizations.
As compared to on-site accounting, cloud accounting provides more flexibility in terms of accessibility as data can be accessed from any device just with an internet connection and of course an account and its password. Apart from access feasibility, cloud accounting gathers information from different users and updates financial database automatically. Thus, it also eases the reporting of real-time financial information that would be visible throughout the organization.
In terms of safety and security concerns, cloud accounting provides a better method of accounting. In case of theft or loss of company laptops and computers, the companies are threatened by theft of financial information as well. In contrast to that, cloud accounting leaves no trace of financial information on the devices. Information access is password protected and encrypted. Thus, even in case of stolen laptops, it is highly unlikely to know the password to this encrypted database. Each individual that shares this information within an organization through cloud accounting software is provided access through a unique password. Thus, no more usage of USBs, flash drives and hard drives that could be easily stolen or lost!
Whether you’re in business, or simply want to track your family budget clearly and efficiently, cloud based accounting software is affordable, convenient and easy-to-use.Booksmart Accountants understand the importance and confidentiality of information and data handled within the organization and thus, we provide secured cloud accounting to small businesses and even to individuals looking to handle their family budgets.