Bookkeeping, Getting It Right

Bookkeeping and end of year document preparation can be time consuming and mind numbing for many people. The options on how to get yours ready year in and year out also seem endless. It’s not about what works for someone else; it’s what will work for you, your business and your future.

What Are Your Options?

While many accountants can be costly to prepare your end of year financial statements, Business Edge Accountants looks to establish a reliable and reasonably priced bookkeeping business in house. We can manage some of your bookkeeping, or assist in the preparation of your BAS or do it all completely for you from scratch. We currently have several clients on each platform, which is tailored to work with them and their business needs and and bookkeeping in order.

We are utilising the cloud and cloud based systems to ensure its seamless with your other financial requirements and business needs. This makes it easier for us, but most importantly means the data is up to date and available when you need it.

What’s The Catch, How Much?

That’s the big question on everyone’s mind and the hardest thing to determine for everyone. Each business and each person is different so we will look to cater a product that can be delivered to suit your needs and budget. Come in and sit down to discuss your business and Bookkeeping needs with one of our friendly accountants, for Free. Yes, the first appointment and business review session is free. This is where we will look at your current system, and look to find either a better one, or a way that we can work together to get you and your business on track, for a price that both parties agree on. This also includes any payroll systems or wage management requirements you may need.

What Are The Legal Requirements

It is a legal requirement that you keep records relating to your business. That is why it is so important to make sure you have a practical record keeping system in place. By law, the ATO requires you to keep business records:

  • for five years after they are prepared, obtained or the transactions completed (whichever occurs later); and
  • in English, or in a form that the ATO can access and understand in order to determine your tax liability.

According to the ATO, you should “keep records for a longer period if you use information from those records in a later tax return (for example, claiming a loss carried forward from a business activity in an earlier year).  The records should be kept until the end of any period of review for that later return.  Records relating to assets for capital gains tax purposes may also need to be kept for a longer period.”

You can issue and store records in either electronic or paper form.  Once a record keeping system has been set up, it should be a simple process to update records daily.  Feel free to contact us and talk to your accountant if you have any queries about your records and what we keep.

“There are penalties for not maintaining the required records and for not keeping them for five years” warns the ATO.  “Keeping good records will help you avoid these penalties.”

Other reasons for keeping good records

There are some other reasons, such as:

  • It makes it easier to complete your business activity statements and prepare your annual income tax and fringe benefits tax returns.
  • You are able to monitor the ‘health’ of your business and make sound business decisions because you can keep track of debtors and creditors to ensure your cashflow is adequate.
  • Good records will demonstrate your financial position to banks and other lenders, and also to prospective buyers of your business.
  • Rather than paying your accountant or tax adviser to sort through a box full of paperwork, provide them with well prepared records and pay them instead to help you grow your business or provide tax planning advice.
  • Well kept records will show the basis for any amendments you need to make to activity statements or tax returns you have already lodged.

What Action Do You Need Take?Check_Sign-512

Decide whether to keep electronic or paper records, or both, then establish a system which is practical to your business.

Cloud Accounting?

Some Cloud based solutions can do this for you quickly and easily, from document management in the cloud to scanning and inputting it all for you. To discuss your options, don’t hesitate to call us and help get you on the front foot for not only your record keeping, but your businesses next step to financial security.

Do I Have to Use The Cloud

Of course, not, it’s about finding a system that works for everyone involved and a solution that is affordable and will work with your business needs and compliance requirements.

Contact Us today to make an appointment or call on [telnumlink]02 6041 1687[/telnumlink].