Smith & Co Bookkeeping

Unlike commercial businesses, clubs and associations don’t exist to maximise profits. Their primary purpose is to serve members, support communities, and achieve organisational objectives. 👫

However, this doesn’t make bookkeeping any less important! In fact, many clubs face additional financial responsibilities that businesses never encounter, including membership fee management, grant funding and fundraising activities. 📚🤯

Each of these financial activities requires accurate record-keeping and transparent reporting to ensure accountability to members, funding bodies, and regulators. 📖

For volunteer committees, managing these responsibilities alongside everyday club operations can quickly become overwhelming. Get in touch today to see how we can help! 💚



Source: balancemybooks.com.au

Here are some basic bookkeeping concepts and definitions that you should know. 🧐

🧮 Ledger: The place where business transactions are recorded and categorised
🧮 Accounts: The categories under which all business transactions fall
🧮 Assets: Things the business has bought and owns (or part-owns), inventory, and money owed to the business as accounts receivable
🧮 Liabilities: Amounts the business owes in unpaid bills, taxes, wages, or loans
🧮 Equity: Money introduced and withdrawn by the owner or shareholders

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Source: xero.com

The answer is... FALSE! 🚨

Revenue is money coming into the business through sales, dividends or interest, the money paid out to keep the business running is your expenses. 💰

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Source: xero.com

The balance sheet is a general snapshot of the financial health of a business on a given day. You would normally complete a balance sheet at the end of a month or financial year. 📆

Once you have a profit and loss statement and cash flow statement, you can complete a balance sheet. A balance sheet includes:

1️⃣ assets such as cash, stock, land, buildings, equipment, money others owe the business
2️⃣ liabilities such as money owed to suppliers or the tax department, loans, credit card debt
3️⃣ net worth, which is the value of the business after deducting what the business owes (also known as the balance sheet equation or equity)

Want to learn more? Get in touch today! 💚



Source: business.vic.gov.au

Your cash flow statement can provide helpful warning signals to avoid future financial troubles. Some potential warning signs are when:

1️⃣ cash receipts are less than cash payments – you’re running out of money
2️⃣ net operating cash flow is an outflow – your cash flow is negative
3️⃣ net operating cash flow is less than profit after tax – you’re spending more than you earn

Do these warnings match your records? Get in touch today to see how we can help! 💚



Source: business.vic.gov.uk

Did you know that evidence of financial record keeping has been found in Mesopotamia, Babylon, Sumer and Assyria as far back as 7000 BC!? Archives have been discovered, showing the recording of accounts from farm produce in ancient Greece as well as from the Roman Empire. 📜

But it’s in the 15th century that the roots of modern bookkeeping can be found. And fittingly, there are two entries in the history books for who documented the double-entry system. Some credit Benedetto Cotrugli and his 1458 book Of Commerce and the Perfect Merchant. But most regard Luca Pacioli as the father of bookkeeping, for his 1494 book Review of Arithmetic, Geometry, Ratio and Proportion. 🧮

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Source: xero.com

The term ‘bookkeeping’ is thrown around a lot in business conversations, but do you know what it actually entails? 🤔

Bookkeeping is the practice of recording and tracking the financial transactions of a business. Bookkeepers regularly summarise this activity into reports that show how the business is doing. They may also perform wider tasks such as invoicing, paying bills, preparing tax returns, monitoring key performance indicators, and providing strategic advice. 📚

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Source: xero.com

In Australia, the standard financial year runs from 1 July to 30 June . However, businesses have the flexibility to apply for a different financial year-end, subject to approval from the ATO. 📄

Selecting an appropriate financial year-end is crucial as it affects the timing of financial reporting and tax filing obligations. Companies should consider their operational cycle, industry practices and strategic planning needs when determining their financial year-end. 📆

Changing the financial year-end requires approval from the ATO and may involve additional reporting and compliance requirements. Businesses must provide a valid reason for the change, such as aligning with the parent company’s reporting period or better reflecting the business’s operational cycle.

Need help adjusting to the financial year? Let me know how I can help! 💚



Source: australia.acclime.com

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Source: scalesuite.com.au

Outsourcing your bookkeeping is still the best choice you can make for your business - possibly a controversial statement, since small businesses always have various options when it comes to bookkeeping. However, DIY bookkeeping can leave you feeling frustrated, stressed, and overwhelmed. Taking matters into your own hands without any expertise on financial matters can eat away a lot of your time. 🤯

Looking for a bookkeeper to take the reins? Get in touch today! 💚



Source: maxbusiness.com.au