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Deposit book
 

deposit_book.jpgLast week, I was doing some work for one of my clients who is a builder preparing end of financial year accounts. As I went through his bank statements I asked him some routine questions about his deposits.

It became very frustrating not only for me but also for the builder as he couldn’t tell me what the deposit amount was made up of, which client had paid him or whether it was for more than one client.

In addition, none of his invoices matched the deposit total. After much searching by the builder, he finally had to admit he had no clue and then needed to ring the bank to try and have it assist him. Of course, he could not ring his client as he would be too embarrassed to admit to his client that he did not have that information.

The Office Witch says that having a deposit book is a simple procedure that can save time and money!!!!

If filled in properly it will contain details of the payee, sum and the explanation for the payment. It saves time because you don’t have to spend hours searching for the information; it’s all there in the one place in the deposit book.

It saves money because:
1. time is money, you save your time and more importantly, the book keepers,
2. the bank will charge you a search fee for the information
3. the bookwork cannot be finished until the bank responds and that can take up to 10 working days!!

If you cannot allocate this amount how do you send out your invoice statements? A client could call and say, “Hey, I have already paid for this invoice two weeks ago?"

That’s embarrassing and doesn’t look good for your business.

Being organised makes the business run smoothly, gives you less headache.

For a advice on how to have your business running smoothly, a check up and more call the Office Witch on 0413 353 938 or drop an e-mail to This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

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END OF FINANCIAL YEAR 2008
The most important subject at this time of the year is tax, yes, its tax time.... with the Business Activity Statement ("BAS") due on 28/7/08.

Businesses registered for GST

1.  On a cash basis you can start working on the books as early as 1 July. It's no excuse not  too! You have all information; money received and paid up to 30 June is available instantly.

2.   On accrual basis you might have to wait a bit longer to receive invoices related to the month of June.
The Office Witch suggests that you be proactive and contact your suppliers to speed up their invoicing procedure. The same advice applies to your billing habits.

Once all information is in and the bank statements reconciled, credit card and petty cash payments recorded, you are ready to finalise the BAS.

I suggest to check data from previous periods, (July 07-March 08), so if you made a mistake a final adjustment can be made on your BAS before you send it to the Tax Office.

Businesses with employees

After processing the last pay cheque you can finalise your payroll figures. Remember, you must give your workers a payment summary by 14 July.

You have to submit PAYG withholding annual reports to the Tax Office by 14 August 08. This report is information about payments to payees who received wages, salaries or other work-related payments. There are two methods of reporting, electronically or in paper form.

Superannuation payments must be made by 28 July.

I suggest checking the data on the workers payment summary against your PAYG instalment amount section of your BAS before you send it to the Tax Office.

It is very important especially at the end of the financial year to:

  • Reconcile your bank statements.
  • Reconcile your accounts payable.
  • Reconcile your accounts receivable.
  • Reconcile your inventory.

If it's all been done then you are ready to send your BAS to the Tax Office and you can send your information to your accountant.

Hopefully you don't have to do all this yourself as you should have a capable person, a book keeper, to do it for you.  This gives you more time to spend on growing the business and increasing profits!!!!

If you need help with end of financial year procedures or other operational matters please contact The Office Witch on 0413 353 938 or e-mail to info@theofficewitch.com.au

 

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