Bookkeeping Basics Overview:
In spite of the huge importance of bookkeeping, most small business owners neglect it as they feel that for them it is more important to generate new sales they get caught up in other "emergencies" such as employees, customers, suppliers, operations, etc. The ones who comprehend that bookkeeping is one of the most important aspects of their business know that it affects the success of a business in the long run.
The Australian Taxation Office have reinforced this importance by ensuring that all those submitting Business Activity Statements on behalf a business must have a qualification - either:
FNS40207 Certificate IV in Financial Services (Bookkeeping)
FNS40807 Certificate IV in Financial Services (Accounting)
Bookkeeping basically involves recording all the finance related transactions, reconciling those transactions and then filing them in an organised manner. The various documents that are recorded in the bookkeeping system include cash receipts, sale and purchase details, account ledgers, cash disbursements, supplier invoices and monthly financial statements.
Bookkeeping Basics Course
Bookkeeping services have become an integral part of every small and big business as they are the people that give the business owner time to focus on the areas of business that they enjoy. When employing bookkeeping services you need to keep in mind the number of transactions and the size of your business.
These points will depend on whether you:
employ a bookkeeper
hire a contract bookkeeper that comes into the business, or
find a virtual bookkeeper
Some of the important tasks performed by these bookkeepers include preparing the financial statements, bank reconciliation, maintaining ledgers, recording the account payable and the receivable, making the payments and managing the bookkeeping software.
Read more about Basic Bookkeeping Responsibilities here >>
Small Business bookkeeping basics
Most of the small business owners in a rush to make profits, forget that bookkeeping is the heart of every business and cannot be neglected. Small business bookkeeping enables the business owners to maintain their financial transactions in such a way that the operations of the business run in a smooth way. The areas where small business bookkeeping can be of great help include the business owners forgetting to track the various reimbursements made to the employees, business houses not categorizing their man power properly and for correcting the over-categorization and mis-categorization performed by the business owners.
When hiring a bookkeeper who is dedicated to the bookkeeping role, the business owners will know quickly if any one has been overpaid or if the financial statements of any month have not been completed.
As most business owners feel that there is nothing more important than time, virtual bookkeepers are definitely giving them a sigh of relief. With virtual bookkeeping a bookkeeper provides clients with reliable and cost effective bookkeeping services via a secure internet connection and with the help of the latest accounting applications.
Virtual bookkeeping removes the worry of handling another employee in your office, ie. you don't need to buy more infrastructure such as computer, phone, printer, desk and chairs. Also, with this type of bookkeeper they do not expect to be treated as a full time employee, they don't receive any benefits such as superannuation and holiday/sick pay and you don't pay workers comp for them. A virtual bookkeeper will look after the financial management tasks such as financial statements, quarterly reports, bank reconciliation, budgets and compilation of the tax reports at the year end.
If you would like to know more about hiring a virtual bookkeeper but don't want the hassle of organising them we can help. Fill in the form below and we will call to discuss further.
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