Financial reporting should be the main reason that you spend time on your small business bookkeeping! Not just because your Accountant demands it or to satisfy the Tax Office! If you are the owner of a micro small business Australia and you learn to Be Your Own Bookkeeper you will be able to review your financial reports with confidence and monitor your business' progress. You might even be able to improve your business bottom line!
Below is a list of reports that you should monitor to track to your Micro Small Business:
Balance Sheet: Lists all the Assets, Liabilities and Owners Equity
Profit & Loss Report: Shows your Income & Expenses for a particular period and the resulting Profit or Loss
Aged Receivables: A list of amounts owing to you by your Customers
Aged Payables: A list of amounts that you owe to your Suppliers
GST Summary: Shows your GST Liability at any point in time
Sales Summary Report: Shows your Sales totals for a particular period
Why is it important to review your Balance Sheet?
Often Business Owners ignore this report and just concentrate on their Profit and Loss Report. The Balance Sheet holds crucial information as it shows all the Assets owned by your business, any Liabilities incurred by your business and the Owners Equity. The ratio between Assets and Liabilities is important. The total Assets should always be greater than the total Liabilities. Think of this report as a snapshot of your business at a particular date.
Any assets that you purchase or liabilities that you incur should be added to the this report.
For example if you purchase a new Motor Vehicle to use in your business it needs to be added to the Balance Sheet as an asset. If you take out a loan to pay for the Vehicle, the loan needs to be listed as a liability.
What is a GST Summary Report?
As a Micro Small Business owner you need to be aware that the money you receive as Goods & Services Tax does not belong to you, you are just looking after it for the Tax Office!
You should check your GST Summary report each month to see what your GST liability is. Ideally you could then transfer this amount to a separate Bank Account (High Interest Account is good!)
Then when the time comes to pay your GST to the tax office you will not be struggling to find the cash!
Find out more at
http://www.beyourownbookkeeper.com/
Bookkeeping Solutions – Should you register your Micro Business for GST?
One of the questions that the new business owner needs to address in their startup Business Plan is whether or not to register for GST. This is just one of the decisions you will have to make when starting up your home based small business.
Bookkeeping Solutions – Dealing with the ATO and GST Audits!
As an owner of a Small Business Australia you may find yourself in the position of developing a relationship with the Australian Taxation Office. As the owner of a home based small business you may find this a bit daunting!
How to manage the Bookkeeping & Administration for your Micro Small Business Australia?
Are you a solo or micro small business owner? What about all the bookkeeping jobs you have to tackle to manage the financial record keeping processes for your business? Most of us think of bookkeeping as a necessary evil to satisfy compliance issues with the tax office or keep our accountant happy! It doesn’t have to be that way. It can be very rewarding to check your financial reports each month and see your business growing.
