I often have start up company clients which are uncertain what information to give me as their accountant or bookkeeper in order to prepare Foreign Accounting and Tax statements, or Financial statements. So i have put together a brief explanation of a simple supply of it all together. If you use this simple method you will not only look professional to your accountants but save them time (by doing some of the legwork and having all of the relevant information available) getting which you cheaper accounting expenses by saving accounting time and you money. This is a process primarily for businesses which, do not have an internal accounts or bookkeeper person and provide information to accountants to prepare returns.
I want to stress that all good businesses know how well they are doing. In fact many businesses fail as a result of lack of current financial information. It is vital you know your current financial position and profit or loss statement ideally monthly or at least quarterly if the business is well established with comfortable cash flow. If you are a business who only reviews their financial position annually, I strongly recommend you concentrate on obtaining more regular financial information. This is so you article source have relevant information to manage your business and earning. This can easily be achieved by engaging in a bookkeeper or accountant who can also come to your workplace. However if you wish to prepare information for the accountant and bring it to their office here is a quick process for you to complete.
The starting point of accounting is that it is based on recording all transactions from bank statements of all relevant bank accounts including cheque accounts, investments, credit cards and loans. For this reason, businesses should try to track all business transactions through one of their bank accounts so because of this have no cash transactions. If you have cash transactions you might want to provide additional information.
The 1st step
The first simple step is to collate all your bank statements of all business accounts, credit cards and loans for the period you need to report on. Some situations to illustrate the periods involved for a tax return 2010 you’ll need to gather statements from 1st of Come early july 2009 to 30th of August 2010, or for a BAS return 03 2010 you will need to gather statements from 1 Economy is shown 2010 to 31 03 2010. You should receive all statements from your bank, if any are lost or missing your need to reorder from your bank running into normally a bank fee. Sort this out before you give you the accountant your details. Better still accountants adore to get electronic files of your bank statements as they are quick and safer to data entry, contact your bank to do this.
Once you have collated all bank statements review all individual lines and code them with relevant information (write a relevant description of them if not obvious from the bank statement line entry). For example all credit entries all money doing your accounts, you should indicate if they are income or sometimes they are owner contributions. With all money expended (money out) from accounts, you should also be describing relevant details especially cheque numbers and EFT exchanges. Remember any additional information may be useful to your accountant such as asset detail for them to process specific taxation rules. If you are GST registered, you should also indicate whether the transaction involved GST or was GST free. The more you code the more you make your financial reports accurate and speed up things for your accountants processing which will lead to cheaper fees.
If you have coded all bank statements as for second step and have made sure all relevant bank statements have been collated. You may provide this to the accountant so your financial report can be prepared. However, as tax law requires substantiation of your transactions and keeping these records, I would also suggest, attaching all relevant accounts relating to transactions on each bank statement. There may be a few transactions which do not have accounts such as bank charges and direct debit all regular charges loan payments etc. You may have other ways of filing accounts which are also acceptable.
This has been a quick outline of how to provide information to your accountant to prepare your financial or taxation reports. It is advisable eventually for a business to take the next step and to complete it’s bookkeeping internally which might result in increased savings. I recommend this is carried out with the combination of internal resources, suitable accounting software and professional accounting involvement to regulate and develop the financial information further. Speak to an accountant or business mechanic on this issue in order to discuss installing an accounting software and training you to do some of the work. Often this will reduces costs of some of your other administration tasks such as payroll, quoting and invoicing customers, knowing which consumer accounts are due in order to facilitate a purchase ordering system, and to better track creditors or cash flow.
However, if you know book work is not an optimal use of your energy , nor have internal resources, please do use a professional registered BAS agent, TAX agent (in Australia) or registered accountant in your country. But, perhaps consider updating your financial information on a more regular basis. I also had a current experience with a client who did not wish to prepare their accounts themselves, but is available when i am html coding their transactions; these were also able to observe how the financial report is put together providing them with a better understanding of the financial information. I also advice that you do query, and try the information provided to you at a made clear level so you are sure that it is correct.