Accounting Systems and Setup
Accounting systems and processes are an extremely important element of any business, no matter what the size or industry.
Businesses engage in various activities whereby money flows in and out of their organisation. Tax invoices, wage records, cheque butts and credit card statements support all these transactions. These documents contain key information that needs to be recorded such as dates, payments made, amounts received and total GST paid.
Having the correct accounting systems in place can be critical to the success of your business.
There are a number of reasons why effective business accounting systems are important:
- The right system can give you much more control and greatly ease your data entry wherever you are and whatever technology you are using.
- It is a legal requirement to keep records that are accurate and true for a period of at least 5 years from the date that the documents were prepared, obtained or the transaction completed, whichever occurs the latest. All records must be in English or in a form the ATO can understand.
- It makes it cheaper, easier and quicker to complete activity statements and in turn your annual tax returns.
- It enables businesses to monitor the health of their business and in turn make sound decisions.
- It helps businesses manage their cash flow.
- It demonstrates the financial position to banks and other lending institutions.
- It enables business to make better use of their tax adviser.
- It shows the basis for any amendments that may need to be made in activity statements or tax returns.
First Class Accounts franchisees are specialists in implement accounting systems appropriate for your small business. Having an efficient system in place alleviates much of the stress associated with ongoing bookkeeping work.
Do you need help setting up accounting systems to assist you with good record keeping or do you have the system established but not the time, knowledge or expertise to reap the benefits of your good record systems? Find a bookkeeper today and let us help you work smarter, grow faster, live better!