The aim of our Bookkeeping Basics Blog is to support our small local businesses. We know that running a business can be busy and stressful at times, to say the least – that’s why we want to assist however we can, by taking care of the numbers and paperwork (all the “tedious” but necessary parts of running and growing a business!)

What is the bookkeeping? Put simply; bookkeeping involves organizing all of the financial record-keeping that you might not have the time, patience or knowledge to do properly. This is to ensure that you are given a consistent insight into the financial position of your business. A good bookkeeper will be a huge asset!

Although we strongly recommend utilizing bookkeeping services (mainly for accuracy, time-saving purposes, and peace of mind), if you are managing your own bookkeeping for now or just starting your business, here are some small business bookkeeping habits that we recommend, to ensure that you’re on the right track:

Know your Software. Bookkeeping software comes in different forms and it can be tricky to navigate which one will be best for you, depending on your business needs. It is also essential that the software is set up correctly from the beginning, to avoid mistakes or doubling up in data entry. We usually recommend MYOB bookkeeping, Xero Bookkeeping & Xero Cashbook or Quickbooks, but it really does depend on what you are using it for. Get in touch with your local bookkeeper to see what they recommend & schedule in a training session so you’re set up correctly from day one. Utilising the correct bookkeeping software and knowing how to use it can save your business lots of time and money!

Record Receipts. Make sure you are always ensuring customer receipts and income is recorded correctly (and as soon as possible to avoid mistakes). Also ensure that you are obtaining invoices for each purchase and that the payment method is logged. It may seem like you’re over-doing it, but it’s important that you practise high attention to detail so that items are easy to track if necessary later on. Double entry bookkeeping is a great way to ensure that you’ve recorded correctly, as it involves entering everything into the system twice.

File Paid Invoices. You should be able to do this online with your accounting software – simply open up a new file at the beginning of each financial year and upload your paid invoices and paid bills into this folder.

Don’t use too many categories – it can cause confusion! For example, some businesses use sub-categories such as “Paper, Pen, Ink,” etc. when they could have been collected simply under “Office Equipment” or “Stationery Supplies”. At the same time, avoid creating a “Miscellaneous” category at all costs!

Consistency is key! Hence why we suggest “habits” to ensure you are going through the correct processes each time. Try to maintain records of the above weekly – the longer you wait, the harder it may be to get back on top of things.

The goal of these habits to ensure that you are always on top of your small business bookkeeping – that you’re organized and everything has been done correctly, legally and on time.

However, even if you are several years behind on your bookkeeping, a bookkeeper can get your business back on track and provide training to ensure it stays that way. Your bookkeeper will also prepare & lodge BAS, organize payroll, superannuation, data entry; whatever your business needs. You’ll have the expertise of knowledge, consistency of data entry, ongoing backup support and only one invoice to pay each month at a flat hourly rate.

What is Double Entry Bookkeeping?
In order to explain the concept of “double entry bookkeeping”, let’s first address the question: what is bookkeeping?

In simple terms, small business bookkeeping & general bookkeeping involves organizing all of your financial record-keeping to ensure that you are given a consistent insight into the financial position of your business. This continuous data entry and tracking is often referred to as the tedious, boring stuff! That’s why bookkeeping services can be a timesaver and an asset to your business.

So, what is double entry bookkeeping?
The double entry system means that each financial transaction of a company is recorded with an entry into at least two of its general ledger accounts.

For example, if a company borrows $5,000 from the bank, the company’s asset account is increased with a debit entry of $5,000 and the company’s liability account is increased with a credit entry of $5,000. If the company then repays $2,000 to the bank, the company will decrease the amount in its asset account with a credit entry of $2,000 and will reduce the balance in its liability account with a debit entry of $2,000.

Double entry bookkeeping requires that the debit amounts must always equal the credit amounts. Every account has two “sides”. A debit refers to an entry on the left side of an account, and a credit refers to an entry on the right side of an account. Double entry bookkeeping requires that for every transaction, there is an entry to the left side of one account, and a corresponding entry to the right side of another account. Every debit must be matched with a credit!

Today’s bookkeeping software often has double entry bookkeeping programmed into it. Examples of commonly used bookkeeping software include MYOB bookkeeping, Xero bookkeeping & Xero cashbook. Although this software has been built for convenience and ease, it’s still very important to ensure that everything is entered into the software precisely and correctly to avoid error. Your bookkeeper can practice the double entry bookkeeping system to ensure absolute accuracy.

Bookkeeping services can also include organising payroll, superannuation, data entry, and to prepare & lodge BAS; whatever your business might need to run smoothly and successfully. The benefits of small business bookkeeping is that you have the expertise of knowledge, consistency of data entry, ongoing back-up support and only one invoice to pay each month!

One of the main goals of our Bookkeeping Basics Blog is to support small business! We understand that despite the associated rewards, the running of a business can be extremely stressful and time-consuming to say the least. Our aim is to free up some spare time by taking care of the numbers and paperwork (all the fiddly little parts of running a business – often referred to as “the boring stuff”!)

If you think your business might benefit from bookkeeping services, please don’t hesitate to get in touch; we’ll discuss your business needs and tailor a package that is right for you and your business.

Confused? Unsure of what to use? No problem! Our latest Bookkeeping Basics webinar explores the major differences between bookkeeping software; in particular, MYOB, Xero and QBO; a brief history of each, the differences from a business-user point of view, differences from a BAS agent point of view, and the businesses recommended for each.

As with most things, there are pros and cons to bookkeeping software. However, with small business bookkeeping, in particular, it is imperative that the software is set up correctly from the beginning, so it helps to know which will be most beneficial to your business to prevent issues further down the track.

For instance, will you have access to the internet whilst using the software? What kind of app functionality do you need? Are you able to perform a manual reconciliation or would you prefer it to be automated? How many users or employees will be using it? These are just some of the things which should be considered when selecting bookkeeping software for your small business.

Some of the key differences between MYOB bookkeeping, Xero bookkeeping & Xero Cashbook as well as Quickbooks, are that MYOB doesn’t require internet to work, it includes an additional GST control account; it is STP enabled with unlimited users and employees. However, updates need to be installed manually, reconciliation is manual and the app works for invoicing only.

MYOB was founded in the early 1980s by a team of developers at Teleware, Inc., who developed accounting software. In 1999, the name was changed to MYOB Limited and was listed on the Australian Stock Exchange (ASX) on 9 July 1999. MYOB was in Australia, NZ, China, UK, and other pockets over the world; they also developed the first online software with bank feeds which was MYOB Live.

Then Xero came onto the market! MYOB sold off everything apart from Australia and NZ, and MYOB Live was further developed and changed its name to MYOB Essentials.

MYOB later bought Bank Link (accountant firms use this to get bank statements for clients and then ask the client to code the statement lines). Bank Link has been in business for over 20 years. Therefore, MYOB is in our experience, the best at bank feeds. There’s rarely any double ups or missing days with bank feeds using MYOB products.

Quickbooks and Reckon are US based software companies. Together they were Quickbooks – then they divorced! Reckon is now Reckon One and Quickbooks are Quickbooks Online. Quickbooks Online is very different from the ‘old’ Quickbooks in the desktop days. Did you know that Quickbooks is the leading software used in the USA? Xero is now trying to crash that market!

With all the bookkeeping software available, this brings us to the question; what is bookkeeping? Why is it necessary? Bookkeeping services are designed to ensure that you are always on top of your small business bookkeeping and numbers – that you are set up correctly from the beginning, organized and everything has been done legally and on time. Bookkeeping services can be a huge asset to your business as they provide an overall snapshot of how your business is doing!

Even if you haven’t been set up correctly with your software or are several years behind on your bookkeeping, a bookkeeper can get your business back on track and provide training to ensure it stays that way. Your bookkeeper will also prepare & lodge BAS, organize payroll, they can practice double-entry bookkeeping and sort your superannuation; whatever your business might need. You’ll have the expertise of knowledge, consistency of data entry, ongoing backup support and only one invoice to pay each month at a flat hourly rate.

If you think your business might benefit from bookkeeping services; if you need a software health check, software training or assistance setting up/switching between your bookkeeping software, please don’t hesitate to get in touch; we’ll determine the software that will best serve your business needs and tailor a package that sets you up correctly from day one.

You have taken the first step towards making your busy day a bit easier by selecting Transaction Pro to assist you with exporting data from QuickBooks Online. Here are five top tips for using Transaction Pro Exporter to get you started on the right foot:

1. Make use of the data dictionary. The data dictionary shows the types of items and transactions that can be exported with Transaction Pro Exporter as well as the available fields for each type and can be accessed HERE.
2. Select to export only the fields that you need. After retrieving your data, you can narrow down the exported data to include only the data fields that you actually need by de-selecting and/or selecting the data fields to export. Access this option by selecting EXPORT OPTIONS.
3. Re-order the fields that you are exporting. You can re-arrange the order that the data fields are exported by re-arranging the column order numbers. Access this option by selecting EXPORT OPTIONS.
4. Save export maps. You may not realize it, but you can save your field and order selections so that you do not have to re-select them each time. Access this option by selecting EXPORT OPTIONS and then selecting SAVE EXPORT OPTIONS.
5. Schedule your export. You can schedule your export to run automatically. This is helpful to have exports run automatically during non-peak work hours since some file exports may take some time to export, depending on the amount of data. For more information, search SCHEDULE EXPORT in our Knowledge Base.

Now that you are on your way towards becoming a Transaction Pro Exporter expert, please give it a try by selecting and exporting your first export file from QuickBooks Online.

You have taken the first step towards making your busy day a bit easier by selecting Transaction Pro to assist you with deleting data from QuickBooks Online. Transaction Pro Deleter is a great resource to assist you in cleaning up your QuickBooks Online company. Here are five tips to make sure that you get started on the right foot:

1. Delete list items that have no history. You may only delete list items (Accounts, Customers, Items, and Vendors) if no history exists for the list item. Just as when you manually delete a list item in QuickBooks, the item is actually made INACTIVE instead of being deleted.
2. Undo matched bank transactions. If you are deleting any transaction that has been matched through the bank feed, you must first undo the match before being allowed to delete the transaction.
3. Print Trial Balance before deleting. Before beginning any deleting, it is best to print a trial balance for each month and year that will be affected by the deletion so that you may check balances after deleting.
4. Make necessary entries to account for deleted transactions. Transaction Pro Deleter performs the same task as if you were to manually delete a transaction in QuickBooks. Therefore, you will need to enter a beginning balance journal entry and/or inventory adjustments to account for the any deleted transactions.
5. Select the data rows that you want to delete. Once you have retrieved your data, you will select the data that you want to delete by clicking the box for the data rows to delete before clicking DELETE CHECKED. If you know SQL queries, you can use the advanced filter option to help in the data selection process.

Now that you are on your way towards becoming a Transaction Pro Deleter expert, please give it a try by retrieving data for your first deletion.

Your business is thriving – and you realize that it’s no longer a good use of your time to be doing all of your bookkeeping on your own. You’re confident that you’ve done a good job establishing your processes, but you’re not getting the comprehensive financial analytics you want. You know there is a better way. You’re looking for help, and more importantly, smart insights that will help your business grow. Another one of your priorities is to reduce your overall stress and have more time to spend with friends and family. You’re on the hunt for a bookkeeper that will help you achieve your business and personal goals.

What if I told you that many bookkeepers only do the bare minimum and actually don’t reduce that much of your workload?

That doesn’t sound great – right?

I’ve created an easy cheat sheet to help you ask the right questions when you’re searching for a bookkeeper that will work for you.

Here’s what I recommend you ask before choosing your bookkeeper:

How can you contribute to my bottom line? Can you bring any innovative solutions to my business that save me money?

What’s your pricing structure? Do you have an hourly rate? Or do you have a performance-based rate?

Do you have a team to back you up? If my associate is ill or goes on vacation, will another one of your team members maintain my books?

What responsibilities do I (the business owner) have in the bookkeeping process? What documents do I need to submit on a monthly basis? How do I do this?

How frequently and timeline can I see my up to date financials? Do I see my financials on a month-to-month basis? Quarterly?