What is Double-Entry Bookkeeping?

If bookkeeping is a tedious task, double-entry bookkeeping involves more work. Before we go into the details of this accounting concept, let’s first discuss the basics.

What is bookkeeping?

Bookkeeping refers to the task of recording all of a company’s financial transactions. It’s very systematic and entails the organisation of a company’s financial obligations. It involves the accurate recording of day to day expenses. Every purchase or sale is carefully recorded. 

Bookkeeping is an essential part of a business’ growth. It provides all the financial information that pertains to a business. An impeccable record of all financial transactions can help a company improve its cash flow. Moreover, one will be able to immediately see any money leak and alleviate the situation before it worsens.

Why double-entry bookkeeping is better

Double-entry bookkeeping involves managing two accounts. The principle behind it is that for every debit, there is a corresponding credit. It carefully records both aspects of the company’s financial transactions. 

Did you know that this is one of the toughest areas in accounting? The positive side is that it can result in better financial reporting. Moreover, any fraudulent activities that involve the company’s cash flow are significantly reduced with this system.

Why do you need to know double-entry bookkeeping when the transactions are processed using accounting software? If you do not understand how double-entry bookkeeping works, the transactions will be posted to the wrong accounts, this may create so many incorrect transactions that the file is useless and the information is incorrect. 

bookkeeper at work explaining double entry bookkeeping

What makes it more effective than single-entry bookkeeping?

Double-entry bookkeeping makes use of the principle of “matching”. Both the company’s revenue and expenses are carefully recorded and accounted for. Owners can clearly see how much profit was gained or if there are any losses. 

From there, it will be clearer what services/products are making money and where the money is going. Since there is entry adjustment in the process, double-entry bookkeeping can provide more accurate data by the end of the fiscal year and provide the accountant with an accurate set of accounts to use for the end of financial year reports and tax return.

Conclusion

Companies using accounting software need bookkeepers who understand double-entry bookkeeping. The checks and balances can greatly reduce errors. Moreover, the debt must match the credit using this technique – leaving almost no room for mistakes.
To know more in detail and understand how we help businesses with their bookkeeping in Mandurah, get in touch with Additional Business Concepts today. Call (08) 9565-9906

Benefits of Hiring a Bookkeeper

Are you a small business owner? If you are, then you’ve probably wondered whether it is the right time to hire a bookkeeper. You may be doing your bookkeeping in Mandurah and staying profitable at the same time, so why bother hiring out?

However, if your business is poised for growth, you should give hiring a bookkeeper some serious thought. Having your own bookkeeper will help to keep your business records organised. It can also free up your calendar so you can focus on profits.

benefits of hiring a bookkeeper

Pros of Having Your Own Bookkeeper

Bookkeeping is essential for your business. Here are the main benefits you get by hiring your own bookkeeper:

1. More time for business growth. You will find that it opens up time for you to do other more critical tasks. No more stressing out about the thought of doing your own bookkeeping. No more wondering whether your financial records are correct and up to date. Your books will be tidy and accurate, ready to be examined by your accountant.

2. Hassle-free financials. Having a bookkeeper becomes important when business taxes are due for assessment and payment. A competent bookkeeper can guarantee that your monthly balance sheet and income sheet are in order. You might even need a cash flow statement prepared in advance by your bookkeeper. They can inform you if you have tax-deductible expenses, as well.

3. Savings. Take note that a bookkeeper who does their job well assists your accountant. Your accountant won’t need to organise your financial statements for you. This way, you won’t have to pay the accountant additional fees for it.

Talk to Additional Business Concepts Today

If you are the owner of a small- to medium-sized business, you may need a reputable bookkeeper. We at Additional Business Concepts aim to assist you in your business financials so you can focus on your profitability. Contact us now.

What is a BAS Agent?

BAS agent

What is a BAS Agent?

A BAS Agent is a licensed agent that can give BAS services for a fee. They are usually bookkeepers and are and fully certified with the Tax Practitioners Board.

BAS agents do so much more than bookkeeping, however. They are concerned with advising businesses concerning taxation under the BAS provisions.

These usually cover:

  • Payroll tax concerns, such as the correct remittance and reporting of withholding tax.
  • FBT payments
  • GST payments
  • Taxes on certain goods such as luxury items, like fuel, wine, and cars
  • Superannuation Guarantee system
  • Taxable Payments Annual Reporting system
  • Income tax payments and withholding amounts via PAYG installments

What Does A BAS Agent Do?

It is an advisory role to businesses facilitating full compliance with operating rules and the Tax Agent Services Act.

In most cases, these agents also represent companies in front of the BAS service commissioner.

Typical roles of a BAS agent include:

  • Designing systems to comply with necessary BAS provisions
  • Ensuring businesses are compliant with BAS rules on every decision
  • Reviewing business processes to ensure they are on the right track with regards to BAS law.
  • Administering bookkeeping tasks, as necessary

How is a BAS Agent Different to a Bookkeeper?

A bookkeeper’s role will often slightly overlap with that of a BAS agent. A bookkeeper’s role stops with the day-to-day processing of transactions or systems operation, however.

BAS agents are bookkeepers with significantly more responsibility and specialization. The primary purpose is in giving advice with regards to BAS tax laws.

Bookkeepers can’t legally do the same. They also can’t design systems or represent businesses in front of the BAS.

Qualified agents design the system for BAS compliance. Bookkeepers implement it.

How Your Business Benefits from BAS Services

The BAS rules may not always be clear cut, and there might be some confusion in applying them to your business. The help of a BAS agent is invaluable, ensuring your company is compliant with these regulations throughout its operation.
For more information about BAS and Bookkeeping services in Mandurah, contact Additional Business Concepts now!  Call (08) 9565 9906

Perth Startup Support

You have a business idea, you have some customers and now you are starting to make money. The statistics are showing, however, that the main reason 1 in 4 businesses close in the first year and only half were still operating three years later is due to financial mismanagement or inadequate or inaccurate records.

Managing your business’ finances is just as important as having customers. We are here to help you establish some basic bookkeeping systems, using the software that is suitable for you. 

We will also train you how to use it, ensuring you have a good financial management system in place to ensure your business not only succeeds but thrives.

You’re then equipped with all the knowledge and tools to run a successful business.

Alternatively, do you want to make sure the obligation of Bookkeeping doesn’t distract you from growing your business? We can work with you to ensure your deadlines are met, books are impeccable and business is efficient.

The end result is that you have more time to focus on your business’ growth, and can be confident that the numbers are being taken care of. 

Our best tips for those starting up is to list your priorities, divide your time wisely and use as many helpful resources as you can.

How Additional Business Concepts Helped A Perth Startup

We provided a courier business with the systems to ensure they were managing their finances. It has been a step at a time, setting up an accounting system and training them to enter all the sales invoices, purchase invoices and payroll and recording GST. This has kept their bookkeeping costs down, but better yet provided them with the information they need to be able to understand how their business is really going. It has ensured that they are keeping up with their reporting obligations (submitting Quarterly BAS) and provided them with up to date information to discuss tax planning and investments with their accountant.

Call us now for a free 30 min consultation to discuss your unique business and what you should do further

Money Management – Where is My Money Going?

The bookkeeping is being taken care of, the BAS’ are being lodged on time, your employees are being paid well, but where is the money? The Profit and Loss report is showing you should have more in the bank.

Many business owners are scraping by, but far from profitable. We have implemented a system to be able to capture that data and show you where the money is going.  

We find out what products/services are making money, where the money leaks are happening, why the cash flow is nonexistent and help you implement a plan to fix the money leaks and the cash flow problems.

As we strive to find solutions and efficiency for your business we use our expense analysis, forecast and budgeting, and cash flow management to monitor and analyse your business expenses and profits.

We are passionate in working alongside you, we believe in your dreams and will use our skills and services to get you on top of your business.

Money Management Case Study for a Perth Business

One of our early clients used this service to know when to take holidays and have a baby! She was able to establish where the business’ main income was coming from and what times of the year were the quietest. In doing this she was able to plan a family and continue to work in the area that was making the most money.

Call us now for a free 30 minute consultation to discuss how we can help you.

Perth Business Management

business-owner

The business is functioning, the financial data is being recorded and you are doing your best, but there are pieces of the financial management system missing.

It is harder than you realised, you feel lost in the figures and it is a big, black hole. You feel like there are not enough hours in the day to see out the end of your to-do list and it is beginning to cut into your home/family/leisure hours.

When you are overwhelmed by financial management it is difficult to keep up with your reporting obligations because of the missing pieces. 

We are here to support business owners with their bookkeeping, putting all the pieces together. We are able to provide a tailor-made package to ensure you are keeping up with your reporting obligations and are able to sleep at night. 

From full bookkeeping support in Mandurah where you do not have to worry about it anymore, to reviewing transactions and reconciling accounts and providing that extra level of bookkeeping knowledge and expertise our aim is to ensure you have knowledge and understanding of your finances.

Our Business Management Case Study

Most of our clients are the female business partners who have the business knowledge and are keeping the bookkeeping under control but rely on us to provide the in-depth understanding of payroll and to ensure the record keeping captures the financial information in a way that provides meaningful financial reports. They know before a BAS how much money they need to pay, they know when the superannuation is due and how much is owing. In some cases, we have assisted with Payroll Tax and collating the data for Long Service Leave. There is no reason to lose sleep over the bookkeeping, we are here to help. With both sleep and an understanding of your business’ finances, you are in a better position to grow a successful business.

Call us now for a free 30-minute consultation on what will work best for your business.