Cloud accounting software simplifies bookkeeping and enables many business owners to look after their own books. There are still traps for the unwary and being aware of them and how to avoid them will save you a great deal of time and even save you from paying unnecessary GST.
The potentially most costly mistake – and I see it frequently – is the incorrect recording of payments on invoices and subsequently failing to match the payment to the correct bank transaction.
Following these three simple steps when an invoice is paid will help ensure that you correctly record all of your payments:
1. The amount paid – this must match the amount that was paid into your bank account to the cent, not rounded
2. The date of payment – this ensures your software finds the correct bank transaction to match to
3. Select the right bank account – selecting another account, an asset or a clearing account will prevent your software from finding the match
What happens when it goes wrong? In the worst case scenario the payment is applied to the invoice (incurring the GST payable liability) and the unmatched bank transaction is also recorded as a sale (with another GST payable liability). This effectively doubles the GST you will owe on your BAS when you prepare your GST report from the accounting software.
How to check if you have been doing it correctly? Performing a bank reconciliation is the quickest and easiest way to check if your books are correct. All accounting software will provide a method for doing this. It also ensures that your software’s bank feeds have not missed any expense transactions that you should claim – this happens regularly with some of the most well known accounting software brands.
Quickbooks makes the invoicing process easy with this helpful Invoicing Guide
Interested in moving to Quickbooks? The Bookkeeper Guy has QB Plus files available for a low monthly price of $27.50 for life!
Single Touch Payroll or STP, will become mandatory for all employers from 1 July 2019 and The Bookkeeper Guy can smoothly introduce it to your business. At present it only applies to large employers with 20 or more staff. Preparing for it now will ensure a smooth transition for your employees and your payroll process. The ATO published some helpful fact sheets in preparation for the introduction to larger employers and these are equally relevant to all employers preparing now.
This stp_factsheet is a great introductory guide to what it will mean for your business and what steps you can take to prepare for it. Your staff will be hearing about it soon – STP for Employees outlines what will change for them once STP is introduced.
Simon at The Bookkeeper Guy has successfully introduced STP to large employers and can simplify the transition for your business. For a stress free introduction of Single Touch Payroll get in touch with us – call 08 6111 3124 or email us firstname.lastname@example.org
We all get phone-calls from marketing companies – often around dinner time. Often we think it is nice to help someone out and keep them employed. Unfortunately, there are now so many scam attempts that sometimes you don’t even want to answer the phone when it rings. Pretending to be from the Australian Tax Office is one of the most common.
This recent video from the ATO helps explain what you should never do – remember, the ATO will never call you. They only contact you by mail, and even then, you should always contact the ATO or your tax advisor to confirm a debt is legitimate before you pay anything, no matter how convincing they sound.
You can contact Simon on 0409 290 358 or 6111 3124 if you are ever unsure and would like another opinion on a suspicious request.
Signed up for some cloud-accounting? Great idea! Using Xero? Excellent! Never used anything like this before? Don’t worry, neither have many other people! Have a look at the video below for an overview.
So, what next? Do you really want to spend the next two days figuring this out for yourself? This is where a bookkeeper comes in. Chances are you are changing from managing the books for your business in a spreadsheet, or another program, and moving into Xero. We can help you with a quick and painless transition, setup your payroll and show you some helpful tips along the way.
Talk to the Xero professionals at The Bookkeeper Guy, we are a certified advisor and bronze partner with Xero. Call us on 6111 3124 or 0409 290 358 or just drop in for a coffee and a no-obligation, free assessment of your bookkeeping requirements. We are located at 4/328 Albany Hwy, Victoria Park.
Quickbooks online https://www.intuit.com.au/ has quickly established itself as heavy-weight among the cloud accounting providers. They provide all the functionality most small to medium size businesses require with a quality support team to help you through any difficulties. In addition to this, they are currently offering some very competitive introductory subscription rates to grow their market share.
This makes subscribing to Quickbooks an easy decision to make, after-all, you know the basics of bookkeeping, and it can’t be that hard can it? The answer is yes and no. Cloud accountign products are easy to use and there are plenty of resources available to help you, such as the video above that talks about payroll.
But what do you do next, how do you start quoting? How do you convert the quote to an invoice? How do you enter a journal for your BAS lodgement?
This is where your bookkeeper can help. The Bookkeeper Guy will assist you with tidying up your file set-up in Quickbooks, Xero, Sage One or MYOB. Often there is very little to do and we can simply help you out, provide some advice and get you going again.
In addition to this we provide a very attractive end of quarter “Bookkeeping Health-Check and BAS Lodgement” service. Until June 30, 2017, for $60+GST we will check your transactions and GST coding, reconcile up to four bank accounts and lodge your BAS for you. Should there be any major problems detected in your accounting file, we will provide a detailed quote to get them fixed up for you.
Contact Simon on 08 6111 3124 / 0409 290 358 or email email@example.com