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the book keepers

Category: Bookkeeping

The Eight Most Common Bookkeeping Mistakes

INTRODUCTION

When you hear bookkeeping, it sounds like a very easy exercise. Get the numbers and put them in the right place. And it can be so easy, so long you get the puzzles correctly, and they cut rightly. Here are the top eight mistakes that companies have suffered from accuracy, completeness, and security and how to avoid them.

Failure to track petty cash

Many companies see petty cash as s fund for various expenses that really are too little to care about. Who cares about $2 to buy a new pack of staples or $10 you can give to the cleaner after tidying? Eventually, if the annual cash cost of initiating a small addition of hundreds of dollars, the ATO will Fill out petty cash receipt so your bookkeeping can follow up with every expense.

Not saving small receipts – No matter what the payment method, all receipts need to be saved or a note of the expense made in a diary. As many businesses fail to do this with small invoices as with petty cash. All those small expenses add up – to save all of your receipts.

Not tracking reimbursable expenses

Yes, all of the top three bookkeeping sins are related to failing to keep records! You should collate and submit for reimbursement any expenses paid for out of your pocket at least once a month to help prevent things being ‘lost’. To assist record keeping, you could try to make payment of all reimbursable expenses from a separate credit card (used purely for business) – that way you can identify any missing receipts from monthly credit card statement. See more.

Not reconciling books to bank statements

Any small error in bookkeeping can quickly grow out of proportion, as new calculations are based on old figures and balances. Reconciling your books to bank statement will be done automatically by the bookkeeping services; if you’re handling your own accounts, make sure you also do it.

Failing to keep a paper trail

Try to keep documentation for every step of any transaction. Any place you see a receipt slip, fill it out and take it away. If there’s an option to keep a carbon copy, do so. If you have more than one bank a/c (i.e. credit cards and cheque account).

Not backing up your company file

Most bookkeeping services will back up your company’s electronic bookkeeping records at every visit. However, if you do an entry yourself, you’ll also need to ensure you do this.

‘Abstract’ or ‘artistic’ accounting methods!

Issuing cheques out of order using creative rather than logical invoice numbering sequences writing some things down and recording others on the computer all of these eventually doom your bookkeeping to becoming completely indecipherable.

Not properly classifying employees

To the ATO, it makes a big difference whether you are paying an employee, a consultant or a contractor. It will also be central to accurate bookkeeping, so ensure you know the difference, and you agree with your payee as to their classification.

CONCLUSION

A lot of new business owners fail to understand the value of their time and think they can squeeze in the bookkeeping tasks between the many other tasks they have. This shortchanges the company and eats up a lot of time, particularly for those who are not familiar with today’s accounting software. For more information visit: http://bookkeeperco.com.au/payrollservices/

 

 

Bookkeeping Rate –The Monetary Value of Hiring a Bookkeeper

Bookkeeping Rate –The Monetary Value of Hiring a Bookkeeper

The business owner should employ or hire a bookkeeper who can take care of the financial transaction and help them to maintain a proper record so that they will be paid off—that is termed as a bookkeeping rate. All bookkeeping jobs are an essential tool on all type and sizes of business. A bookkeeper is an individual who is also known as an accountant clerk who is in charge of keeping all the records related to accounts of an organization. However, you can get the same kind of expertise that these CPAs could provide. If you want to get information on Bookkeepers — Job Description, click at http://www.classiceventsbykris.com/information-bookkeepers-job-description/

Hiring the right bookkeeper is not an easy task to do. It is essential that they know the job well and can do it as per the business owner’s requirements. They should be capable of gathering the entire account-related information of the business. It is a tedious job and it takes long time to maintain the account. The bookkeeping rates vary from one firm to another. Bookkeeping rates will depends on the effectiveness and efficiency of your bookkeeper.
It is essential for all business that it maintains proper financial record since it really helps them afterwards. The proper financial record and the successful running of the company are dependent on each other. If a business is running successfully it is evident that the financial record is maintained accurately. But maintaining a proper financial record on a regular basis is not an easy job and handling that single handedly without any professional help is a very tough job. So, what should the owner of the business do if they are incapable of keeping track of the accounting books?

Bookkeeping Rate –The Monetary Value of Hiring a Bookkeeper

The Bookkeeping Rate is dependent on certain factors. They are as follows:

1. The bookkeeper who remains always updated on the bookkeeping rules and regulations, the bookkeeping rate for them is also on the higher side. Before any quote is made, the volume of transaction and the complexity of work involved are evaluated first. Another factor to be considered is the turnaround time set by the client. It is then important not to just look at the rate when searching for a person with whom you can delegate the accounting task of your business.

2. The bookkeeper who has a degree in accounting joined the organization with higher bookkeeping rates. Though it is not mandatory to have an accounting degree, but individuals with a degree are always in a better position than others and, therefore, their bookkeeping rate is higher than other individuals.

3. The experienced bookkeeper is also in high demand and the bookkeeper is definitely going to fetch higher rate than others. The reason for the higher bookkeeping rate is when the bookkeeper comes to handle the financial record the trained and experienced bookkeepers Melbourne, for instance,would already have the essential and required knowledge about bookkeeping. Giving training is a tedious job, so if the business owner does not want give training, it is better to hire experienced bookkeeper. You cut back on expenses as you pay them only on specific periods of time or as their services are needed.

Bookkeeping rates vary on the services and quality of work to be done. If the owner is not ready to pay high bookkeeping rate then it is better to opt for a fresh graduate. If you need a bookkeeping quotes, click here.