Ideal_BC_accounting

1. Accounting and Bookkeeping Accounting and Bookkeeping All You need To KNow All You need To KNow Bookkeeping and Accounting both share one common goal that is Finance Management. The aspects which come under finance management are: A complete record of the fixed sources of income and the expenses incurred. This helps in calculating your cumulative profit and helps you set goals to improve. Keeping a track on all the variable financial transactions that have been done for business improvement. A documented record of all taxes to be paid and exemptions if any.

2. Accounting and Bookkeeping: The Basics of Financial Management The finance management goals can be met only when following steps are taken care of in a well-organized manner. Keep All Your Financial Transactions Receipts All the fixed incomes and expenses by an organization are in their financial receipts. So be it a hard copy or a soft copy, keep all your receipts. All the sales were done and the profits earned by a business should have a separate record which states the amount, date, and purpose of the transaction. To maintain proper receipts, your first business purpose is to invest a few Australian dollars into installing an accounting and bookkeeping system that meets all business requirements.

3. Maintain Records As Per The Volume of Your Profits Accounting and Bookkeeping not only revolve around keeping your receipts in an organized manner but also it focuses on maintaining a copy of those receipts as records. The frequency with which the records for a business should be updated largely depends on its profit margin. If the business is flourishing with daily sales a daily record should be maintained. Also, few companies which do yearly audits, monthly checking and updating should be done. Software like SAP is being installed in every large business for this particular purpose whereas small businesses prefer a simple computerized bookkeeping that is updated regularly. Thus the next step that businesses should take is purchasing a bookkeeping software or designing one in order to maintain the record of all transactions. This will help a business be on its toes by helping recognize the profits and losses.

4. Learn How To Create A Basic Template For Accounting and Bookkeeping AASB has all information you need to know about accounting in Australia. Accounting and Bookkeeping is responsible for connecting the key dots of business when it comes to finances. A template will help you point out all your expenses and compare them against the profits. Thus it is necessary that you learn how to make a well- organized accounting and bookkeeping template. It can be a designed in a way as to separate the profits on a monthly basis and display a cumulative yearly report. This will not only make audits easier but also help you understand your own finances better. The template of your financial report should be able to able to combine all the data and organize it in accordance with your business requirements. This will help you get the picture and position of your business in the current market.

5. The Key Elements in Accounting and Bookkeeping There are certain key elements or metrics of accounting and bookkeeping that sums up the entire financial management structure. Let us look into it elaborately. The Inflow and Outflow of Australian Dollars Dollars guide the accounting and bookkeeping business. All the business receipts are centered around them. The inflow or profits and the outflow or disbursements are what must be primarily tracked. Therefore the bookkeeping methods should revolve mainly around making this process easy to understand and maintain. Basically maintaining a separate accounting section for inflow and outflow or the sales and purchases helps in this case.

6. The "Receivable" Amounts and Loans When a business is making a sale, the amount the customer has to pay comes under the "receivable" amount. If a business lends a part of its money at an interest rate, the amount payable comes under "loans". These are two important cash gates that an accounting and bookkeeping software should regularly maintain in order to avoid a major financial glitch. The Inventory Amount Inventory is the amount a business has in its stocks. Thus it is basically Australian dollars maintained safely. This amount must be regularly checked in order to track any loss or mishap. Counting this amount and updating it periodically irrespective of the fact that it remains the same or not is an important part of accounting and bookkeeping.

7. The Total Payable Amount The amount payable includes the bills of purchases, the taxes and the loans to be paid off. This record should be well maintained as a part of the accounting and bookkeeping as it will prevent losses later.

8. Payroll The major cost of a business goes into payroll or payment for employees. Thus keeping this part updated is important as it includes a lot of factors like benefits, allowances, and hikes. A huge part of accounting and bookkeeping concerns the payroll and thus keeping that part well organized in essential for the benefit of your business as well as employees. The Equity Amount The amount a business invests in equity shares comes under this category. It basically shows the amount each shareholder of the business has invested in the company shares. Maintaining a record of this is essential in order to know how the share money is distributed

9. and the interests that have to be paid out. A separate section should be maintained for updating this record as far as bookkeeping is concerned. The Re-Invested Amount The Re-Invested amount is also known as earnings retained by a business. This means the profits done by a business that is not paid to a third party. Instead, it is invested in the business again. Thus this figure is a cumulative number that keeps growing as the company expands. Maintaining this amount while bookkeeping is important as it shows the financial graph of your business thus helping you analyze the growth.

10. To summarize, accounting and bookkeeping is that effective tool that keeps your financial records running smoothly by showing you a clear picture of the dollars that you have profited.