Professional bookkeeping system is a great way for you to maintain and keep up-to-date records. Having an organised bookkeeping system will allow you to analyse your activities in your business, keep accurate taxation records, process the lodgement and payment of applicable taxes in accordance with federal and state law requirements.
Federal taxation law requires you to keep and maintain records pertaining to annual income tax, GST, BAS payments along with specific payments to employees, superannuation, and fringe benefits tax payments.
It can be somewhat of a problem to setup a correct bookkeeping system without having a background in accounting/bookkeeping. With this in mind, you may need to contact a local gold coast accountant, bookkeeper gold coast or an affiliated business advisor. As soon as you have a professional and easy-to-manage system in place, you will need to organise proper accredited training, and continual effort and personal discipline so that you can properly maintain and control of your personal and business finances.
Accrual Systems Verses Cash Based System
When you decide to choose a professional accounting/bookkeeping system that fits your business plan and specific needs and requirements, do not simply choose the first system that you come across. Many Gold Coast businesses employ one or more systems combined that covers both cash and legal accrual systems.
Accrual-based bookkeeping: Accrual-based bookkeeping system records all types of transactions at the time and date that they actually occur. This is true no matter whether the payment is made currently or in the foreseeable future. Accrual-based bookkeeping is a system that is more commonly used, and is far less prone to accounting errors. However, accrual-based bookkeeping can be a significantly more complex method, but it is more suited to a majority of gold coast businesses, and it makes recording of complex type transactions such as extending credit and/or wages, etc., easier and more precise.
Cash-based bookkeeping: Cash-based bookkeeping system includes regular transactions which should incorporate cash transactions at the precise time the cash was received. This type of method is much simpler to use and requires much less filing and usage of paperwork, but it can often be prone to many errors. Generally speaking, this particular method is far more suited to small businesses which operate on day-to-day cash transactions.
Manual System Verses On-line and Off-line Electronic Systems
Typically a manual bookkeeping system will generally include accounting books and/or personalised ledger accounts that can usually be purchased from an office supply store like Officeworks, and at a local newsagent store. Even though a manual system requires much more effort and allocated time going over receipts, paperwork, etc., it can be suitable for business owners of smaller businesses who have acquired knowledge and experience using an office or personal PC computer. However, this generally applies to businesses that are somewhat small in nature, having a small gross turnover and required minimal operation.
Anyone that is fully conversant with the use of a desktop PC or laptop computer, and who has suitable knowledge and experience in running accounting/bookkeeping software this could be the best solution. As with most recent accounting/bookkeeping software, it is prudent and wise to put into place a reliable backup procedure. An external “cloud” off-site storage is one of the most reliable and best systems. Here are several electronic options:
Accounting and Bookkeeping Software: General public available or specially tailored software accounting and bookkeeping systems will help record both business and personal transactions. This includes calculating BAS payments, GST, preparing up-to-date financial statements, generating invoices, and automatically updating your ledgers. But prior to investing in an accounting and bookkeeping package, it's best to check first with your bookkeeper/accountant and find out what electronic software he or she recommends.
Internet-based Bookkeeping: Using an Internet-based or the latest “cloud” system gives you the advantage of updating your accounting books from virtually any computer and location. This affords you the additional benefit of a fully automatic “off-site storage” for all of your business, personal, and financial records. Generally this provides a much cheaper alternative solution but can be prone to several security risks.
Old Fashion Spreadsheets: If you do not have sufficient funds for the purchase of an electronic accounting and bookkeeping software, but you are fully conversant with using a desktop PC or laptop computer why not consider preparing an old fashion spreadsheet to keep and maintain for your business, personal and financial accounts.