Good bookkeeping shows in a business's profit and in how smoothly it runs. Not every business has reliable bookkeepers, and some owners do it themselves because they aren't sure which services they need. Bookkeeping is more than keeping receipts.
Without sound records behind the scenes, a business struggles to grow. Customers never see them, but they keep your finances in order and help you see where the business is heading.
The main bookkeeping services
1. Bookkeeping
Recording transactions and keeping the books up to date. It takes care and steady attention, which is why many businesses hand it to a bookkeeper working with an accountant.
2. Accounts payable
Recording supplier bills and making sure they are paid on time. If you buy from many suppliers, this one matters.
3. Accounts receivable
Tracking what customers owe you, so payments arrive when they should. Essential if you sell on credit.
4. BAS and IAS
A business registered for GST lodges business activity statements (BAS). Instalment activity statements (IAS) report PAYG withholding or PAYG instalments for those not registered for GST. Accurate, on-time statements avoid penalties and keep your tax under control. Anyone who prepares them for a fee must be a registered BAS agent or tax agent.
5. Payroll
Paying your people correctly and on time, reporting each pay through Single Touch Payroll and paying their super. It takes time every pay cycle, and mistakes are costly.
Talk to your accountant about which of these services your business needs.