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  • #964723
    bexonline
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    • Total posts: 3
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    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.

    #1007558
    Paul Murphy
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    • Total posts: 45
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    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.

    #1007559
    bexonline
    Member
    • Total posts: 3
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    Thanks for your reply Paul, much appreciated.

    Do you know the names of these free accounting packages?

    #1007560
    Paul Murphy
    Member
    • Total posts: 45
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    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=open+source+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

    #1007561
    Angus
    Member
    • Total posts: 21
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    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
    http://www.liftbusiness.com.au
    03 9092 9424
    0447 407 576

    ABN 99 065 724 852

    #1007562
    Avatar Bookkeeping
    Member
    • Total posts: 14
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    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/basic-bookkeeping-forms.html

    http://ezinearticles.com/?Simple-Accounting-For-The-Small-Business—Bookkeeping-Using-A-Simple-Spreadsheet-Template&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

    #1007563
    Classicb
    Member
    • Total posts: 8
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    Assuming your business structure is Sole trader, do not forget to register for ABN.

    All the best for your new venture

    #1007564
    Selene
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    • Total posts: 22
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    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

    #1007565
    befree Bookkeeping
    Member
    • Total posts: 7
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    Hi,

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

    http://www.befree.com.au

    #1007566
    Lizzy C
    Member
    • Total posts: 63
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    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.

    #1007567
    Burgo
    Participant
    • Total posts: 2,104
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    Keeping your personal from business using the same bank account, simple enough really a seperate column in your cash book for you.

    #1007568
    Julia Nitschke
    Member
    • Total posts: 40
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    I saw you have mentioned you would like to use a cash book template from the ATO.

    I have used it ( e-record from the ATO) for a client (it was their choice) and it is very easy to use and since it is free is a great start for your business.

    Now they have grown larger I am getting them onto MYOB, but that is only because they have grown and it is more appropriate.

    I just wanted to give some feedback on the software you wanted to use, hope it helps.

    bexonline, post: 7010 wrote:
    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.

    #1007569
    diggerd
    Member
    • Total posts: 1
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    Sorry this is a little off-topic, but Paul, you mentioned you use openERP. I have been looking at this software myself, but had seen some feedback that it may not be well suited to Australian conditions or that it needed a fair bit of adjusting to work here. How do you find it here in OZ? My first impressions of it was it looked quite good and had a lot of the features I was looking for?

    Thanks for any feedback.

    DiggerD

    paul, post: 7016 wrote:
    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=open+source+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

    #1007570
    2905#deleted
    Member
    • Total posts: 2
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    HI there, I expect by now you have probably sorted out an account but thought I’d tell you about my experience. I am like you, I’ve just started a business and have very little in the way of transactions (hoping that will change as the business develops). I didn’t want to pay bank fees but it seemed everywhere I went there were lots of fees and hidden charges too. Even Bankwest say they have no monthly account fee but charge you $5 a month to access online banking. I ended up going with Bendigo Bank. They have no account fee for their basic business cheque account but you pay for each transaction but not to receive payments, which is mainly what I needed. I was also able to link a Visa debit card so I could make purchases online. I found them very pleasant and the account was open in 10 minutes with minimal paperwork. With the other bank that I mentioned you needed a degree to fill out the paperwork and they wanted to charge me for an extract of my business registration. Hope this info helps. Good luck.
    Wendy

    #1007571
    FletcherTax
    Member
    • Total posts: 347
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    I agree with Burgo.

    I would set up an Excel spreadsheet customised specifically to my needs. And record keeping of private expenses may also be useful for your own budgeting purposes.

    I know some of my clients import their bank statement into Excel every month and then move/place the amount against its specific expense category in the same spreadsheet.

    Once you’ve outgrown the spreadsheet, you can always move up to software.

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