General Bookkeeping

General Bookkeeping Services

tick_mark20   Registered BAS Agents – Registration No. 80294000

tick_mark20   Registered ASIC Agents – Registration No. 37258

tick_mark20   ABBS are Certified Practising Bookkeepers

What is General Bookkeeping?

General Bookkeeping is the recording of the routine day-to-day financial transactions of your business and is an area that is often mistaken something that anyone can do without proper training.  The reality is that general bookkeeping can have a mundane and repetitious nature and can also be the start of many problems that can have a compounding effect on the business accounts.

Example of this point

One of our clients will often pay for business expenses using cash from their pocket; then will have a transfer of money equivalent to the expenditure made to a personal account as a reimbursement.

Before ABBS being engaged to take care of the bookkeeping, that spending often went unnoticed or ignored.   Sometimes the receipts were not returned to the bookkeeper which meant that there was no record of the expenses in the business accounts which resulted in financial losses.  To demonstrate the extent of this financial loss for every $110 tax inclusive spent in this way the outcome would be;

  1. The tax deductibility of the expense was unavailable. 
    1. At the small business tax rate of 28.5%, this would represent a loss of $28.50 in additional tax payments. (calculation is based solely on the tax that would be due on $100 of revenue at the current company tax rate)
  2. The GST claim was unavailable.
    1. This results in the loss of the GST refund of $10  (calculation is based on the GST that should be requested on a payment of $110 tax inclusive)
  3. The reimbursement of the expenditure was then processed as a payment to the owner.
    1. Assuming a tax rate on a weekly personal drawing of $800 the additional tax would represent an additional tax payment of $35  (calculation is based on a current weekly tax schedule with the tax difference between an amount of $800 per week and $835 per week should this be allocated as private drawings)

The above calculations are provided as an example only of the probable financial losses that could be expected to occur.   The actual value of loss could vary based on particular circumstances.

The total financial loss for every $100 would amount to $73.50.   If processed correctly, the expense would be tax deductible, the GST claimed back and no personal income tax paid.     It can easily be seen that over a year the losses to tax can be quite significant.

This is just one example of how our ABBS qualified bookkeepers can keep business accounts to eliminate areas where financial loss can occur.

Are you confident that your business day-to-day general bookkeeping being processed correctly?

Contact Us or Have a Question

If you want to be sure you are claiming all the tax deductions, GST and eliminate potential costly mistakes in your business accounts, please contact us and someone will be in touch within 24 hours.

Should you wish to know more about ABBS, answers to questions we have been asked can be found on our Frequently Asked Questions page.

If you have a question that has not been answered there, please send it to us and we will add it to the list for the benefit of others.

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