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4 Steps to Correct Bookkeeping

Written by Dale Whyatt on Oct 3, 2013 2:04:00 AM 0 Comment

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The topic of bookkeeping can be quite dry, but it is one of those necessary business tasks that we need to get right to make the job of running our business easier and less stressful at tax time.

So what is bookkeeping? Bookkeeping is the recording of all payments, purchases, receipts and sales. It is an essential aspect of accounting that aids the accountant in making reports. It is therefore highly important that the bookkeeper or accounting clerk, use a system that will ensure the accuracy of all records. Inaccurate records are very detrimental and can be damaging to a small business.
Here are some key guidelines to help you with your bookkeeping efforts:

STEP 1 – Create and record proper records

Keeping records is one of the most important aspects to keeping your books in order. If you have nothing to reference to, then you will come unstuck.

Therefore you need to create a system that works for you and your business. Consider what you MUST keep for filing and what you don’t need. You then need to decide how you will keep your records? Will you set up a physical filing system or keep everything in soft copy on your computer?. Whatever you decide, make sure the structure you create will help you to find paperwork easily. Be sure to label That way you will always be able to reference effectively when working updating your bookwork.

STEP 2 – Record income and payments

Once you have a good system in place, you can then begin to record that information into a computerised accounting system, such as MYOB. Payments made are recorded through your business bank account and recording Bartercard trade dollars is no different. Upon receipt of your monthly Bartercard invoice, enter the fees as an expense in two separate areas. The cash fees would apply against your business bank account and the trade dollars fees are recorded against your Bartercard “Bank Account”.

STEP 3 – Reconcile your bank account

Your business bank account should be reconciled each month to correctly keep on top of all transactions processed. So, how do you integrate Bartercard trade dollars in your bookkeeping you may ask? Well, this can simply be done by treating the Bartercard account as a separate bank account and record all transactions there; in the same manner you would normally record transactions. It is very easy.

STEP 4 – Reporting and GST

Reporting for GST and financial information using computerised accounting software can be as easy as, “click and print.” GST and Business Activity Statements (BAS) tend to make people automatically stress out, but with the right preparation, systems and processing reporting and lodging your BAS will become one of the easiest things to do in your business.

Bookkeeping is a smart and effective way to track the financial aspects of the business as well as the growth. It is of great importance to ensure accuracy so that anyone else using this information will find it useful. It is very important to note too that the data must be easily transferrable. It may be hectic and a bit burdensome at the beginning, but in the long run it will be worth it to have flawless bookkeeping systems in your business

If you have any questions leave me a comment below.


Author: Dale Wyatt

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1800 668 225
http://www.novabookkeeping.com.au/

 

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Topics: accounting for bartercard, Bartercard, Bookkeeping, Bartercard bookkeeping, nova bookkeeping

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