Bookkeeping Services

• Accounts Receivable
• IAS Statements
• Superannuation
• Financial Statement
• BAS (Business Activity Statement)
• Collate & Record Tax Invoices
• Reconciling
• Management Accounting

Accounts Receivable

Bookkeeping defines accounts receivable as credit extended to a customer for goods or services provided. This is an asset to the business owner. A common error by small business is offering extended credit. Cashflow or lack of cashflow is a major issue for small businesses. Businesses often use payment terms of 30 days – which means payment is due in the amount of the invoice 30 days from the date of the invoice, and other payment terms of 45 to 60 days. For a small business this is not an acceptable way to trade – no small business will be able to stay afloat offering between 30 to 60 days.

If you are a small business person and you are offering between 30 to 60days terms of trade – unless you have very deep pockets full of money – I would not suggest you will be able to trade for a long time offering those terms of trade. Depending on the industry – accounts receivable payments can be expected between 10 – 15 days after the due date – this is why your due date has to be a short length of time. So if you were to offer payment on completion of the work, and the client took between 10 – 15 days to pay – it would be possible to manage cash flow. But, if you offer extended credit up to 10 days – it is very important that there is a process to follow up after 10 days with a view of receiving payment by 15th day. This system becomes part of your business strategy. Sometimes small business owners find it very difficult to ask for money owed to them. Here at SMBB Bookkeepers we offer debtors collection service. The business owner should never chase up outstanding funds – because the business owner needs to be seen as the good guy – and not someone who collects money. Also built into the business strategy should be a stronger means of collecting outstanding debts – such as collection agencies. This business strategy is often used by businesses who offer a service as opposed to offering a product. It is quite common to ask for payment of a product before it leaves your premises, but often it is difficult to ask for the payment of a service before the customer leaves. If you have customers who are regular bad pays, do not be afraid to ask for payment at the completion of the job. Sometimes customers will take as much time to pay the account as the supplier will allow. Also if you have consistently bad payers do not be afraid to suggest they find a new supplier, if you have not been successful in raining in their late payments.

When setting up your business strategy – consider using electronic delivery of invoices and suggest your clients/customers use electronic payments. Electronic invoicing is immediate and cost effective – it does not incur the expense of invoice preparation and postage. But have your bookkeeper set this up so it looks professional. Depending on the accountant package you are using – there is a facility to customize your invoicing. You may be saving on postage but do not skimp on professionalism – it is important to be professional with your invoicing. Make it easy for your customer to pay you as quickly as possible. Make sure your invoicing clearly and accurately describes your bank details for direct transfer of payment into your account.

IAS Statements

Monthly IAS statements is to report:

• Pay as you go (PAYG) instalments
• PAYE withholding tax for employees

IAS statements is for the above obligations and may need to be completed monthly, quarterly or annually.
The PAYG is the prepayment of income tax (was previously known as “provisional tax”); or tax prepaid based on the previous year’s tax return.
Most of the items reported on the IAS statements will also be reported on the BAS (Business Activity Statement).
For ease of lodgement – the tax office has set up a business portal – providing a service where IAS statements and BAS lodgments are lodged directly into the tax office electronically.

Superannuation

Is your business up to date with the superannuation compliance policy and regulations which are necessary for small to medium businesses?
Often small to medium business owners are working in the business and not on their business, so it is easy for small to medium business owners to overlook legislative changes. The result is the business is no longer compliant and innocently becomes exposed to financial penalties.
Is your business aware of the penalties liable if superannuation payments are missed to an employees' super fund, and at what rate penalties are calculated by the Australian Tax Office and what paperwork is necessary to complete?
Confusion about superannuation payment frequently occur at times when staff work overtime, or when casuals are employed at penalty rates. It is easy to over, or under pay contributions and neither work in your favour!
There is also a definite process businesses must follow if an employee has not provided superannuation payment details before leaving your place of employment; and the liability incurred by the business.
Assume a potential employee commences work with your business, and after a couple of days, it is decided by both parties that the employment is not going to continue. If the employee has earned over $450 in their time with you, superannuation is still payable.  Would you know what you need to do if the employee has not set up a superannuation fund?
Nonpayment of the Superannuation Guarantee is unforgiving by the Tax office. All contributions must be paid quarterly by no later than 28th of October, January, April or July of each year. All superannuation paid by 30th June is claimed in the current financial year; any super paid up to 28th July is claimed in the next financial year, super paid after the 28th of July is not claimable as a business expense.

Financial Statement

A financial statement (or financial report) is a formal record of the financial activities of a business, person. For a business enterprise, all the relevant financial information, presented in a structured manner and in a form easy to understand, are called the financial statements. They typically include four basic financial statements:

• Balance Sheet: also referred to as statement of financial position or condition, reports on a company's assets, liabilities and ownership/equity at a given point in time.
• Income statement: also referred to as Profit and Loss statement (or a "P&L"), reports on a company's income, expenses, and profits over a period of time. Profit & Loss account provide information on the operation of the enterprise. These include sale and the various expenses incurred during the processing state. 

For large corporations, these statements are often complex and may include a set of notes to the financial statements and management discussion and analysis. The notes typically describe each item on the balance sheet, income statement and cash flow statement in further detail. Notes to financial statements are considered an integral part of the financial statements.

 

BAS (Business Activity Statement)

Businesses use a business activity statement (BAS) to report and pay a number of tax obligations, including GST, pay as you go (PAYG) instalments, PAYG withholding and fringe benefits tax.
Activity statements are also used by individuals who need to pay quarterly PAYG instalments.
If a mistake is found after the BAS has been lodged – what is the best way to rectify this mistake?
Should a revised BAS be lodged?
Would there be a charge if the ATO has been under or over paid due to the error?
We show our clients the best way to correct this error without your business incurring a penalty from the ATO.

Would it be of benefit for your business to have an additional two weeks each quarter to submit your BAS?

If you submit your BAS on a quarterly basis, you may be eligible for an additional two week lodgement after the 28th of the month.

Are you sure you are claiming back all the GST benefits eligible to your business?

Your business may be eligible to claim food consumed on the premises. Knowing what your business can legitimately claim means you will avoid paying too much GST.
We will make sure that you're business isn't over paying.

Collate & Record Tax Invoices

Have your tax for business invoices been collated in a format for easy access? Yes? How well could you withstand a Tax Office Audit?
Is your business wasting valuable time searching for tax invoices from suppliers? Would a simplified system of collating and recording invoices be a cost effective process for your business?
From year to year all our clients are able to locate all paperwork with ease.
SMBB Bookkeepers can introduce a system for your business which would require little to no input from you, the busy business owner. The result is easy access to all information for warranty, disputes, refunds, additional sales and all accounting purposes.
The result, significant time and cost savings for your business.

Reconciling

At the end of each month and quarter, can you confidently look at your business financial statements and know that the information is accurate, and balanced back to your bank statements?
Does your business produce financial statements that you can confidently take to your bank manager and/or accountant?
Our clients can call our office and have up to date financial statements faxed or emailed to their office, their accountant or bank manager within 5 minutes.

Management Accounting

• Break even analysis
• Budgeting
• Forecasting

special support program