There are many different Accounting Software Suites that are available on the market including XERO, MYOB Essentials and QuikBooks. They all seek to achieve the same thing, which is to assist in organising the bookkeeping for your business, however they do operate differently and some businesses would benefit from specific software.
At Zannettou & Co we are here to advise you on the correct type of bookkeeping service required for your business including software if necessary, that promotes efficiency so you can concentrate on more important activities that will grow your business.
WHAT IS BOOKKEEPING?
Bookkeeping involves the process of recording, analysing and interpreting the financial transactions of a business or individual. The discipline of bookkeeping, accounts for a huge part of the accounting process. Bookkeeping functions can include items such as payroll, superannuation, wages, reconciling bank accounts, coding and classification of day to day sales and purchases, maintaining records and documents for audit purposes and allocating correct tax codes to transactions.
WHAT ARE THE STEPS FOR BOOKKEEPING?
- Preparation of source documents for all operations, transactions and other business activities.
- Determine and enter in the source documents for the transactions and other business events.
- Make entries such as journals and accounts, with proper reference to the source documents.
- Perform end of month procedures, an important step to getting your accounting records up to date and ready for tax returns, financial statements and management accounting returns.
- Gather all the adjusted trial balance from a complete listing of all the accounts once end of month procedures have been completed. This is for the preparation of tax returns, financial statements and management report.
- Close the books for the current financial year and prepare for the next financial year.
WHAT ARE THE BENEFITS OF USING A PROFESSIONAL BOOKKEEPING SERVICE?
- Compliance with Legal Obligations – Meeting your legal obligations with regulations and regulators to maintain your company financial report is one of the benefits of bookkeeping.
- Creates Accountability and Transparency – All stakeholders may have access to certain information which creates accountability, e.g. Customer to see previous purchases and prices and management will be able to access important reports and review revenue and expenses when required. There will also be greater transparency in the business as it may show relevant information for potential investors.
- Data Accuracy – The financial report information will be accurate and clear, this will enable the owners of the business to make informed decisions about their business.
The process of maintaining your books correctly and efficiently can be time consuming, taking away time that is better spent on focusing on the growth of your business.
Having your Accountant manage your bookkeeping promotes greater communication and understanding between you and the Accountant in regards to your business’s day to day operations. This will ultimately result in a better taxation outcome at tax time.