Must Know Best Practice Bookkeeping - Tip #4
Must Know Best Practice Bookkeeping - Tip #4
Set up Chart of Accounts and reconcile regularly!
Developing and following a regular reconciliation process is crucial to maintaining accurate books. If possible, we recommend you reconcile your bank accounts on a weekly basis to keep your records current.
Why should you reconcile your accounts regularly?
It reduces errors and discrepancies and will allow you to spot fraudulent activity quickly
You will be able to make fast and relevant business decisions
You will be able to review reports and budgets with accurate real time data
Submit BAS and meet future liabilities on time
Reduce unnecessary stress and avoid guesswork
Reconciling your bank accounts on a frequent basis allows you to tackle the inevitable, and reduce the overall time you spend on bookkeeping!
However, if you simply don’t have the time or patience, there is an alternative:
Outsource it to a Certified Xero Advisor & Registered BAS Agent!
If you don't feel like you’re getting helpful insights from your P&L, your Chart of Accounts may not be optimised for your business.
Often your Chart of Accounts will be grouped under these headings:
▪️ Assets
▪️ Liabilities
▪️ Equity
▪️ Revenue
▪️ Cost of goods sold
▪️ Expenses
Pretty standard stuff, but it's the line items that sit within each of these categories that will bring your P&L to life!
When we work with new clients at The Kartel Solution, we make sure their Chart of Accounts is set up in a way that is going to draw out useful insights from their business.
These insights may include:
▪️ Which products/service offerings are the most profitable?
▪️ Which departments are the most efficient?
▪️ What's the split between revenue-generating costs vs other overheads?
Get in touch if you're feeling like your Chart of Accounts could be more helpful to you.
Hot Tip
Have you budgeted in any unexpected costs that may incur over the December/January holiday period? Are you taking time off? Are you staff taking time off? Do you have enough funds to cover annual leave? Now is the time to consider what you’ll be doing and plan ahead! And if you need help doing so, make sure you reach out.