Common Bookkeeping Practices and Questions Answered

Here is a list of answers to common questions that we get asked regularly about bookkeeping services, GST and tax and accounting software.

Q: I have started my business, registered for an ABN and Business Name and now I need to know what to do next?

A: A part of running your new business is record keeping and you are obliged to keep your records for a minimum period of 5 years.  You can start if you are a sole trader by just keeping all your receipts and invoices in one place and then call one of our friendly members at Darcy’s Bookkeeping & Business Services on 1300 728 875 to sort it all out for you or if you are a savvy business owner now is the time to look at how to easily keep your records and invest in a small amount of money and time to get it right from the start and invest in accounting software.  This will make your life a lot simpler and you can do it all yourself.

Q:  Which Accounting/Record Keeping software is right for me?

A:  This depends on what you need it for, let’s have a look at some basic questions to ask to get the right accounting/record keeping software for you:

Are you registered for GST?

Do you have Employees?

Are you going to have recurring billing i.e. subscription services?

Do you want the recurring invoices to be sent out automatically on their due date?

Do you need to have the ability to authorise transactions? (i.e. if an employee enters their expenses or timesheets do you want a supervisor or manager to authorise the hours or expense.)

Do you require stock tracking and management?

Do you have multiple bank accounts or merchant facilities?

Are you going to be trading internationally and will you be trading in multiple currency’s?

Are you going to want to be able to create budgets or forecast cash flow?

What reports or information do you want out of your software?

Can your software talk/communicate directly with the ATO and Superannuation services?

How is the software backed up and how secure is the data?

There are so many software packages out there and each of them are different call and talk to one of our qualified consultants at Darcy’s Bookkeeping & Business Services on 1300 728 875 or fill out our contact us form to discuss the different options available. Or click on the links to find out more about each software program MYOB, SAASU, Reckon, QuickBooks, Xero and Intuit QuickBooks Online we have qualified consultants in all the software packages on offer that can assist you in purchasing, setup, conversion, training and running  the software.

Q:  Do I need to register for GST?

A:  If you are expecting to/or already have sales totalling over $75,000 in a 12-month period, then yes you do need to register for GST this includes if you are buying and selling imported services or digital products.  If you don’t expect to meet the $75,000 threshold then it is voluntary to register for GST.  If you are under the GST registration threshold and are trying to decide whether to register for GST voluntarily there are a few things to consider, you will need to report your business activities, you will need to charge and collect GST on the sales that you make (unless you supply a GST Free Item), and you will need to pay the GST obligation to the ATO at regular intervals being 1. Calculate and report GST quarterly – Full Reporting, 2. Calculate and report GST Quarterly – New Simper BAS, or 3. Pay GST instalment amount and report annually.

Q:  What is this Simpler BAS reporting, can you tell me more about this?

A:  The ATO have made it simpler to report on GST so if you are a small business with GST turnover of less than $10 million (NB: $10 million has increased on 1 July 2017 from $2 Million) you can move to Simpler BAS reporting from 1 July 2017.  What this means is that when you report your BAS you must report amounts only at the following labels:

G1  Total Sales

1A  GST on Sales

1B  GST on purchases

Pay your obligation/or get a refund and the BAS is done.

For larger companies (turnover over $10 Million), no changes have been made, continue to calculate your BAS as you would normally.

Q:  So if it is so simple to report the BAS now, do I need a Bookkeeper?

A: The simple answer is no, and most accounting software is really user friendly you can download the apps on your mobile phone or tablet and while out on the road you can take photos of receipts, attach the receipt to an expense entry (you no longer need to keep paper copies of your receipts if you have an electronic copy), send invoices to your customers and take payment.  If you set up your accounting software correctly or get some help from our team at Darcy’s Bookkeeping & Business Services it can be easy to do ongoing bookkeeping yourself. Alternatively, if you don’t have the time or don’t want to do the entries yourself or you may want a Bookkeeper to check over your entries prior to submitting your BAS then a bookkeeper might be right for you.