Business Bank Account / Bookkeeping

[bexonline]

Hopefully not to much of a stupid question....

I'm in the middle of setting up a new business and have been told I should keep all my personal and business expenses separate.

Does this mean I need a new business bank account?
If it does can anyone recommend one with no or little bank fees?

This will be a fairly small business. Am I right in thinking that if I summarise all the income and expenses in this new bank account that this is all my accountant will need to complete my tax return? I don't have money at the moment for software and would prefer using a cashbook template from the ATO website.

Thanks in advance for any help or suggestions.

[paul]

It just makes your and your accountants lives easier.

Get a credit card and a bank account, and try and keep all your expenses on your credit card, and all your customer / supplier payments in your bank account.

This also simplifies importing, as your expenses can be imported from a credit card statement download (if supported) into your accounting system, and your payments in and out can be imported from the bank account data.

You also don't need money for accounting software, there are several free options out there that are as good if not better than commercial projects.

I use openerp which is overkill for my requirements, but you only use what you need.

There are online accounting solutions too.

[bexonline]

Thanks for your reply Paul, much appreciated.

Do you know the names of these free accounting packages?

[paul]

Sure.

We use openerp - http://openerp.org. This is a full erp system, and I selected it because it will give us the most flexibility for the future. What I particularly like is the timesheet aspects, I can record my time spent on customer work directly in openerp and generate invoices from the hours. It is also a client/server solution (if you want), which was important for us.

A more straightforward options is gnucash - http://gnucash.org, one of the more popular options.

This google link will lead you to more: http://www.google.com.au/search?q=op...rce+accounting

If you are looking at low transaction counts, you could look at sassu as an online solution:

http://www.saasu.com/pricing/

I haven't used this so do your research.

Cheers,

Paul

[Angus]

Decent accountants may also use 'banklink', which will automatically provide them with transaction statements from your company bank statement which can then be input into their own accounting package, saving you the hassle of doing any bookkeeping/accounting. The accountant should also provide regular management reports for you.

regards

Angus Morrison
CEO
Lift Business Growth Systems
Level 1, 290 Coventry Street
South Melbourne VIC 3205
www.liftbusiness.com.au
03 9092 9424
0447 407 576

ABN 99 065 724 852

[Avatar Bookkeeping]

Hey Bexonline,

Certainly agree with the other comments on this thread.

You can also download free Bookkeeping Templates from the following sites

http://www.sbsbusinessservices.com/download_page.htm

http://www.bookkeeping-basics.net/ba...ing-forms.html

http://ezinearticles.com/?Simple-Acc...late&id=647060

Check them out and select one that you feel comfortable with.

Alternatively if the numbers become overwhelming for you, you might need to outsource to a bookkeeper. If you are just starting, it will probably only take an hour each quarter to get it done..

Best of luck..
Great to see more newbies here

[Classicb]

Assuming your business structure is Sole trader, do not forget to register for ABN.

All the best for your new venture

[Selene]

If you are a sole trader then it is OK to use your current bank account but as mentioned previously it can be difficult to separate the personal from the business expenses.

If you are Pty Ltd you must have a separate bank account.

Other points to note is if you receive cheques for payment, who will they be made out to your personal name or a business name. The bank will only bank cheques in your business name into your personal name account for a certain time (particularity if they are over $500).

With regards to your tax return..it is easier again to have the separate bank accounts but if you can verify the information in your bank statement by entering it in a spreadsheet it will help save time.

As mentioned by Avatar, if bookkeeping is not your thing then it may be easiest to give to a bookkeeper, or at least to get a bookkeeper to help set things up to get you off and running correctly. Not only can bookkeepers set up your accounts but also set up your filing system for your finances to ensure that you are keeping your records correctly.

All the best
Kind Regards
Selene Ellison

Blondes Can Count
Bookkeeping Services

[befree Bookkeeping]

Hi,

If you are looking for bookkeeping Services in NSW, visit here for more information,

http://www.befree.com.au

[Lizzy C]

Bank west has a business account with no monthly fee, they charge a small fee (eg 0.30 cents) for doing most things though.

St George has a banking section dedicated for small businesses. I originally signed up for 6mths fee free.