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  • #990523
    AstroboyChorong
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    Hi,

    I’m opening small cafe with friends.

    I have accounting degree and works as accounts officer full time.

    But actually I have no idea how to manage bookeeping for small cafe.
    Basically I just need to put all the income and expenses to myob right?

    and I think cash basis is preferred for small business?

    is there any tips how to maximise on income, profit from accounting method and taxable purpose?

    thank you

    #1177350
    ThexArm
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    Welcome to the forum.

    You can hire a bookkeeper to setup your cafe books in MYOB or Xero. Since you have accounting background you could be able to manage the bookkeeping from there.

    Most of small businesses do use cash basis accounting to keep it simple. But, a practicing accountant can help you determine other expenses that are not so obvious to your business such as depreciation etc.

    Frankly accounting can not maximize income. You may be talking about claiming allowable expenses to show lesser profits so that you don’t pay too much income tax? That is your tax accountants job. I would strongly suggest to consult an accountant to start it on right way.

    #1177351
    AstroboyChorong
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    Hi,

    Thank you for your reply.

    After discussion, we will get professional accountant to give advise to us and I can oversee the bookeeping internally.

    any other tips that I should undertake for this?

    Thank you

    #1177352
    Marc D
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    Hi,

    My tip here would be simplify and automate to the point where the bookkeeping just takes care of itself. The technology is available if you want to go that way but also just a simple till and minimising your suppliers for major supplies and paying by credit card for small purchases with one bank account can produce a simple system. Automate the bank account coding straight into the accounting system and most of the work is done. Takes a bit of setting up at first but reduces your time to almost zero down the track.

    As an accountant, I always suggest that the accounting system should be the last thing you choose. Choose systems that are best support your operations. Sometimes that’s just a till and a credit card or you can move to a full blown point of sale system that feeds into your accounts automatically. While one may be simple it is also “dumb” where the other can produce lots of useful information and is often worth the effort

    hth

    #1177353
    MissSassy
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    The tip I have is forget the book keeping for now and make sure you have partnership agreements in place formally before you do anything. Not saying that you haven’t though of this already but it is my first concern.

    Friends and business never mix well and if it all goes bad the book keeping will be the least of your worries.

    As for the book keeping speak to a book keeper who looks after others in the cafe world, they will have excellent tips and hints on the best software for you to integrate everything. Most accounting is all in the cloud now so make sure you are using the best choice for your industry.

    #1177354
    Brad Turville
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    A great combo to streamline bookkeeping and allow your accountant/bookkeeper access via the cloud is Vend and Xero. Vend will look after point of sale and Xero bookkeeping/accounting.

    Ensure you have the appropriate structure established and agreements in place inc an buy/sell insurance.

    Xero bookkeeping service is a super competitive space so even the most price conscious business owner can strike a deal.

    Your job is to hustle. Cafe’s are cash businesses so you don’t (in most cases) have to worry about chasing debtors and on the back end you’ll have 14-30 days to pay your suppliers. Great for free cashflow but debt and cashflow always demands respect so keep an eye on it.

    Good luck

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