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HOW TO SET UP
BUSINESS ACCOUNTING
SYSTEM
One of the main reasons businesses fail is because
there isn't a good bookkeeping system in place
Steps to set up business record
keeping system
 Ensure accounting system meet compliance
requirements
 Develop a financial procedures and processes
 Set up transaction classifications (Chart of accounts)
 Ensure process are in place to collect and record information
Develop procedures and
processes
Segregation of duties
Separating duties to prevent fraud or error by one person
Approval and authorisation
Who are allowed to authorise various activities within
the business?
Customers and suppliers
How to choose and manage them?
Develop procedures and
processes
Risk management
Insurance, Quality control etc.
Debt collection
Credit control policies and procedures
Employees and payroll
Hiring policies, payroll management
Accounting cycle
Collect
data
Journal
Genera
l ledger
Adjust
Trial
balanc
e
Financi
al
stateme
nt
Accounti
ng cycle
How to set up Chart of
Accounts?
The chart of accounts is very important to the overall effectiveness and
accuracy of your bookkeeping.
 Define the various accounts to be used in business
 Assets – Cash, debtors, inventory, equipment, investments
 Liabilities – Creditors, tax payable, loans,
 Income – Sales, interest income, dividends
 Expenses – Salaries, rent, marketing, advertising
 Allocate a numbering system
 To expand the level of information use tracking categories (cost
centres, location)
 Discuss with professional bookkeeper
Collect, organise, store and
analyse
FinancialRecords
•
Any transaction that has a
financial element:
• Invoices, receipts, delivery
note for good and services
you provide
• Invoices for goods and
services purchased and
bills paid
• Payment to employees
• Payment to agencies like
ATO, ASIC
• Bank statements, end of
year stock take records
etc.
NonFinancial
Records
• Contracts with suppliers
and customers, lease
agreements, insurance
policies
• Licences and permits
• Employee records, such
as time sheets, leave
records, pay slips,
employment contracts
• Records which are
business related and
required by the law e.g..:
Work Health and Safety
• Information regarding
customers and suppliers
How to set up a business accounting system?

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How to set up a business accounting system?

  • 1. HOW TO SET UP BUSINESS ACCOUNTING SYSTEM One of the main reasons businesses fail is because there isn't a good bookkeeping system in place
  • 2. Steps to set up business record keeping system  Ensure accounting system meet compliance requirements  Develop a financial procedures and processes  Set up transaction classifications (Chart of accounts)  Ensure process are in place to collect and record information
  • 3. Develop procedures and processes Segregation of duties Separating duties to prevent fraud or error by one person Approval and authorisation Who are allowed to authorise various activities within the business? Customers and suppliers How to choose and manage them?
  • 4. Develop procedures and processes Risk management Insurance, Quality control etc. Debt collection Credit control policies and procedures Employees and payroll Hiring policies, payroll management
  • 6. How to set up Chart of Accounts? The chart of accounts is very important to the overall effectiveness and accuracy of your bookkeeping.  Define the various accounts to be used in business  Assets – Cash, debtors, inventory, equipment, investments  Liabilities – Creditors, tax payable, loans,  Income – Sales, interest income, dividends  Expenses – Salaries, rent, marketing, advertising  Allocate a numbering system  To expand the level of information use tracking categories (cost centres, location)  Discuss with professional bookkeeper
  • 7. Collect, organise, store and analyse FinancialRecords • Any transaction that has a financial element: • Invoices, receipts, delivery note for good and services you provide • Invoices for goods and services purchased and bills paid • Payment to employees • Payment to agencies like ATO, ASIC • Bank statements, end of year stock take records etc. NonFinancial Records • Contracts with suppliers and customers, lease agreements, insurance policies • Licences and permits • Employee records, such as time sheets, leave records, pay slips, employment contracts • Records which are business related and required by the law e.g..: Work Health and Safety • Information regarding customers and suppliers