There are several ways you can record and account for your business income and expenditure transactions on a regular basis. These include...

• Writing up a manual cashbook (or doing an spreadsheet) – this records all the expenditure in a column layout formula – you have headings across the top of the page that relate to your costs – like vehicle expenses, printing & stationery, advertising, materials, personal drawings. In a list format you write each transaction – the date it occurred, who it was to and the amount you spent goes under the appropriate heading. Income also get’s recorded in this same way – listing the date, who paid you and how much.
• Bank statement coding – writing on your bank statements what each transaction was for then you can provide this to your tax agent and they can process your transactions for the year.
• Computer software programme – purchasing software that you can then use to enter your income and expenses into. If you’re comfortable with software this can be a good option as it also enables you to print reports on a regular basis if you’re interested. At the end of the year your tax agent can use this data to prepare your financial accounts from.
• Use an online accounting system like Xero or MYOB Essentials.

Posted 14/10/2008

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