Bookkeeping and Record Keeping Basics

Proper bookkeeping is extremely important for the success of a business. If you do not do that, you’d be wasting your money. You’d also not be able to expand your business. The reason why you should design a proper bookkeeping routine is that bookkeeping enables you to manage your business and lets the tax agencies know about your business activity.

Bookkeeping softwares are used by some small scale companies to keep records of their accounts and financial dealings. You can also do that but to you have to be sure that it’s saving you time and you can focus on running your business. It happens that bookkeeping can be more efficiently handled on paper than on bookkeeping softwares that may not be that reliable.

For this purpose, you could hire a bookkeeper. I say, it’s best to hire an efficient bookkeeper for your business because this way you’d have someone to take care of all the financial records for you and help you understand everything about your business records. I have a few tips to give you on hiring a reliable bookkeeper.

Tips on Hiring a Bookkeeper

Unprofessional bookkeepers can cause serious damages to your business. You’d need to be sure that the person you’re hiring is able and can handle your accounts and financial dealings with responsibility. You’d need to know the following things before you hire a bookkeeper.

● First thing you should know is if your bookkeeper Melbourne has enough experience bookkeeping for businesses like yours. He should have a certificate IV in financial services. Professional bookkeepers are a member of one of the many Bookkeeping Associations in Australia.

● Your bookkeeper Melbourne should be able to create easy to comprehend financial reports.
● Make sure that your bookkeeper is comfortable with your accounting system. If not, do not work with him.
● Whether you need a part-time service or a full-time service, you should hire bookkeepers according to your need.
● See if he has a proper insurance or not.
● See how’s his review history. Reviews are not entirely reliable. But it’s okay to still look into them.
● Know where your bookkeeper Melbourne wants to work. Onsite, offsite or remotely.
● Be clear on what you want to pay him.

Your bookkeeper will keep the following basic records of your business for you while you concentrate on running and expanding it.

1. Revenues and Expenses

Your bookkeeper Melbourne would keep a revenue and expenses journal or a ledger to keep a record of the amount of money coming in, and going out and where it is going.continue reading…

2. Cash Expenditures

Bookkeepers account for the amount of capital spent on your business every year. There are two ways to do that. 1) Write a reimbursable cheque or 2)Keep a cash record.

3. Inventory Records

Keeping your inventory records saves you from pilferage. It also helps you keep track of buying trends.

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4. Accounts Receivable

This depends on how and when your customers pay you. If they pay you at the time of the delivery of the item, there’s no need of a accounts receivable tracking system. But it they are supposed to pay you later sometime, this is a must! This system helps you keep the history of what your customers owe you.

5. Accounts Payable

In easy words, it’s the opposite of accounts receivable. Keeping a record of what you owe and until what date helps create good credit.
You can look into the webiste, http://bookkeeperco.com.au/ for the best bookkeepers in Melbourne.

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