Basic reporting that will save Sunshine Coast business owners.
Fiona McKinlay • April 27, 2018
When it comes to keeping your business growing, it’s important to know where you stand. Financial reporting is a must to show your board or your stakeholders what areas you are succeeding in and what ones need work.
This blog may seem like basic information, but it’s essential. It might surprise you how many people bang their head against the wall looking for information that might be right in front of them.
Balance Sheet
A balance sheet shows the company’s financial position during a custom date range. You can make this month to month, yearly, or the fiscal year. Balance sheets provide a snapshot of your company’s assets, liabilities, and most importantly shareholders equity.
Profit & Loss or Income Statement
A profit and loss statement, also known as an income statement, shows the profitability of a company. It shows home much revenue a company has earned during a custom date range. It will show how much income and assets you have against your expenses.
Cash-flow Statement
Your company’s inflows and outflows of cash are covered in the cash-flow statement. Once again you can view this information in a custom date range to get an idea of where your business’ money is going.
The difference between this report and a profit & loss statement is that while the P&L can let you know if you made a profit, the cash-flow report can show if your company made or lost cash during the date range.
Employee entitlements & Tax liabilities
If you judge how your business is going by how much money is in the bank account, you might be misrepresenting yourself. It’s important to know how much money needs to be set aside for employee entitlements like Superannuation, holiday leave, personal leave, and long-service leave.
You also need to know how much needs to go to the ATO, so you might not have as much as you think.
If you need help with these reports or any part of your business, then we at
Balanced Bookkeeping and Business Solutions
are more than happy to let you know how we can help. Contact us today for more information.
Bookkeeping Services in Bli Bli, Buderim, Caloundra, Coolum, Cooroy, Maroochydore, Mooloolaba, Nambour, Noosa, North Brisbane, Tewantin QLD
And then there are employee payment summaries and the summary of income and expenses in a profit and loss statement, the record of debtors and creditors, asset purchases and expenditure on improvements, depreciation expense claims and capital gains tax, income tax returns and yearly reports, returns for PAYG withholding, fringe benefits tax (FBT), Goods and Services Tax (GST), and the taxable payments reporting system, meeting superannuation requirements… the list goes on and on.
With so many great software options including XERO, MYOB and Reckon. It’s vital for Balanced Bookkeeping and Business Solutions to be on top of them all. Our expert team can help tailor fit any software your business needs. We proudly keep the Sunshine Coast on top of their accounts. Ask us how we can help you today.
Balanced Bookkeeping and Business Solutions is a local Sunshine Coast company that provides a complete bookkeeping service and solutions for small to medium businesses and can cope easily with both the ATO and ACNC, so that you can pursue the far more rewarding and philanthropic business of fund-raising and distributing to the deserving foundation or trust of your choice.
Balanced Bookkeeping and Business Solutions is a local, Sunshine Coast business that provides a complete bookkeeping service and solutions for small to medium businesses. The principal of Balanced Bookkeeping and Business Solutions has worked in the accounting industry for over 20 years and is a qualified accountant and registered BAS agent, which means that you can discuss the pros and cons of casual and full time and part time employment, knowing that you will receive practical, constructive, valuable advice.
So, what is Fringe Benefits Tax? Simply put, it’s an extra tax that you cover for your employee that is for the benefit of the employee in lieu of paying them more money. The tax is calculated on the value of what is being used for FBT.
This is only a new initiative as we mention that came into effect as of the 1st of July 2018, so there are still a lot of questions to be answered. This is why a number of clients we serve on the Sunshine Coast have been coming to us at Balanced Bookkeeping and Business Solutions to see their options.