Home – New Forums Money matters End of first financial year – accountant??

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  • #988171
    Dr Gus
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    Hi everyone!

    Long time listener, first time caller… Well I’m coming up to the end of my first financial year in my business and I’m now getting around to thinking about what I probably should have done a while ago: finding an accountant.

    The (very nice) truth is that the business has taken off a little beyond my expectations and I have been so busy ‘doing business’ that I have had little time take a step back and look after some of the ancillary stuff.

    In my mind my business is fairly simple: 1) Customers pay me, I give them a receipt and I keep a copy on file. 2) I pay for things I need for the business and I keep the receipts. I am registered for GST so at the end of each quarter I get all the receipts together and compile two Excel spreadsheets, one for income and one for expenditure and each one shows how much GST was received or paid. Using these I then submit my BAS. The receipts are then all organised into a file for that quarter.

    So far so good, or at least I think so… But now lurking around these forums I read of things like MYOB, Quickbooks, sending data files to accountants and other such sorcery.

    So, cutting to the chase, when I walk into an accountant’s office what are they going to need from me? Or are they going to look at me in horror; “You did what what??”, “Whaddya mean you don’t have MYOB?”…

    Or should I stop panicking? Surely this stuff is fairly black + white (=grey…), I have the records and I can rejig the spreadshits any which way any one wants?

    Brickbats and bouquets appreciated!

    #1165974
    Greg Mawer
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    Hi Dr Gus,

    Accountants prefer you to use the accounting software as it will save them time (and you in reduced fees). However, whether spreadsheets or MYOB / Xero is the way to go is up to you.

    If you are organised (and it sounds like you are) and your business is relatively small than Excel will work fine. When it gets more complex and larger, it is important to move across to MYOB / Xero. Your accountant can advise the best time to make the move.

    Using accounting software will (among other things):
    – make it quicker (hence less expensive) for your accountant;
    – record the assets and liabilities of the business;
    – assist to reconcile your bank account to ensure that all amounts have been correctly captured;
    – processing payroll;
    – recording inventory; and
    – assist you in determining debtors / creditors in an organised / time efficient manner.

    Please let me know if you have any more questions.

    Regards,

    #1165975
    Dr Gus
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    Thanks so much Greg! Is there any particular format that accountants like Excel spreasheets to be in?

    Mine are along the lines of:

    1) Date of transaction 2) Description fo item/service 3)Who paid me/Who I paid 4) ABN number of payee 5) Total inclusive of GST 6) GST…

    #1165976
    al.giffard
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    Hi Dr Gus,

    It sounds like your spreadsheet will be fine. I’ve seen a pretty broad range of accounting ‘systems’ and it sounds like yours is pretty organised and under control. There will likely still be a handful of questions to go through, but nothing too involved.

    Great to hear that business has exceeded your expectations, as well! Good stuff.

    Cheers,

    Al.

    #1165977
    Greg Mawer
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    The only other column should be an expense category (so a Profit and Loss statement can be prepared).

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