Part 1 last month, we looked at how to organise your books, your bank and credit cards as separate from your personal banking and tips from the ATO website on record keeping.
Part 2 here, we show 6 steps that look at how to keep track of account-keeping tasks, things that need answers (queries and who to ask) and storage of records.
6 steps to get your accounts in order
Here are 6 steps to get your accounts in order – off to the right start (or improve current systems)
- Bookkeeping Task Checklist – A summary snapshot checklist of the full accounting year – tells you what to do and where you are at – down the left side, number the items that apply to you – you may do invoices manually in another book or Word, but then only record the actual sales deposited/cashed in your excel sheet or accounting software (cash basis), or generate invoices from accounting software and then record when customers pay you (accrual basis). Or if you have lots of small sales in a retail shop, you record the end of day sales total only, eg deposit to the bank.
- Cash Expense Organiser Sheet – Photocopy one sheet per month, then each week, sort your cash receipts into categories – fuel, stationery, postage and then paper-clip them to the sheet. Enter each receipt, or the total fuel, etc. At end of month staple the bundles, total the expense categories – total fuel, stationery, stamps, etc. Enter in the accounting records, reconciling the petty cash. Then start a new sheet and slip on the clips ready to go for the next month.
- Small Expense Organiser – A Sheet for small receipts paid by EFT, credit card, clip then staple as at end of month after recording. Or put the sheet and all slips for a month in a plastic pocket. File all the other supplier invoices in A4 size, in alphabetical order.
- Contact Register – For important conversations and negotiations such as price bargaining or discussions on what will be supplied and agreed. Also best to record disputes time and dates, very carefully.
- Year End – Comprehensive Checklist – Year end can be a busy time, especially with payroll so this checklist can be adapted to the items that apply to your business
- Year End – Report Folder Cover Sheet – If using manual accounts or Excel, list and check Debtors (accounts receivable, that you are still owed) and Creditors (accounts payable that you still need to pay). Copy the last bank and credit card statements and any reconciliation reports. If using accounting software, print Profit and Loss, Trial Balance, and check Debtors (accounts receivable) and Creditors (accounts payable) PAYG and Super reconcile to the Balance Sheet. Gather all BAS statements and reports. Gather all asset Invoices together.
Fill in the cover sheet and year, collect reports together (separate by labelled tabs for easy reference) and give to your accountant to prepare the tax returns.
DOWNLOAD a Free “Bookkeeping Quarter Checklist” to get organised!
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