Bookkeeping guides
Plain-English guides to keeping a small business's books in Australia. Each one lists the official sources it is based on and the date they were checked.
Bookkeeping basics for a small business
The everyday basics of small business bookkeeping: what to record, what each entry needs, how to file the paperwork and how to check your figures.
Bookkeeping for companies
How a company's books differ: what the Corporations Act says its records must do, keeping company money apart from its owners', and how long to keep records.
Bookkeeping for not-for-profits
What the ACNC says charities must record, and how to track money by source and purpose, handle cash and volunteer claims, and store the records.
Bookkeeping for online sellers
How to keep the books when you sell online: record sales before fees, match each payout to its report, track refunds and stock, and keep platform records.
Bookkeeping for partnerships
How a partnership's books differ: accounts for each partner's contributions and drawings, profit shared as agreed, and records when partners change.
Bookkeeping for sole traders
How a sole trader can keep simple, complete books: what to record, a system that fits, keeping your money apart from the business's, and a routine.
Bookkeeping for tradies
How to keep a trade business's books: written quotes, a record for each job, receipts from the road, deposits, and invoices that itemise the work.
Common bookkeeping mistakes
Bookkeeping mistakes that throw a small business's figures out, from unrecorded cash and mixed spending to skipped reconciliations, and how to avoid each one.
Debits and credits explained
Which side increases each type of account, how to work out the entry for any transaction, and worked entries for everyday small business transactions.
Double-entry bookkeeping explained
How double-entry bookkeeping works as a system: the accounting equation, why the books balance, how one ledger gives two statements and how errors show up.
EOFY bookkeeping checklist
The bookkeeping jobs for the end of the financial year: reconcile every account at 30 June, count stock, review debtors and creditors, and file records.
Financial ratios explained
The main families of financial ratios, what each one measures, which figures go into it and the mistakes that make a ratio misleading.
How long to keep business records
Most business records must be kept for 5 years, and company financial records for 7. What counts, when the period starts and how to store them.
How to analyse financial statements
How to analyse a small business's financial statements: line up the periods, compare trends, size each line against sales and link profit to cash.
How to apply for a business loan
How to get the books and paperwork ready before applying for a business loan, what lenders usually ask to see, and the checks business.gov.au suggests.
How to build a cash reserve
How to build a business cash reserve: set a target from your own figures, fund it with regular transfers, record it correctly and set rules for using it.
How to calculate an hourly rate
How to build an hourly rate from your own figures: total a year's costs and profit target, work out realistic billable hours, then divide and test the result.
How to calculate cash runway
How to work out cash runway: available cash divided by the average net cash going out each month, then tested against a month-by-month cash flow forecast.
How to calculate contribution margin
How to work out contribution margin per unit, in total and as a ratio, then use it to compare product lines, test a discount and see what covers fixed costs.
How to calculate cost of goods sold
How to work out cost of goods sold: opening stock plus purchases less closing stock, what belongs in it, and how stocktakes and perpetual records feed it.
How to calculate debtor days
How to work out debtor days: accounts receivable divided by credit sales, multiplied by the days in the period, then compared with your payment terms.
How to calculate gross profit
How to work out gross profit for a period: settle the sales figure, find the direct cost of what was sold, subtract, then break the result down by product line.
How to calculate markup
How to work out markup on cost: build the full cost, subtract it from the price, divide by the cost, and turn a target markup or margin into a price.
How to calculate net profit
How to work out net profit for a period: take gross profit, subtract every business expense, add other income, and keep out payments that are not expenses.
How to calculate operating profit
How to work out operating profit: gross profit less the costs of running the business, leaving out interest and other items that are not part of trading.
How to calculate overheads
How to work out your overheads: sort expenses into direct costs and overheads, total them for a period, then express the total per hour, per job or per sale.
How to calculate profit margin
How to work out gross and net profit margin: divide profit by sales over one period or on one item, read it as a share of each sale, and compare fairly.
How to calculate retained earnings
How to work out a company's retained earnings: last year's balance, plus the year's profit or less its loss, less dividends, checked against the balance sheet.
How to calculate return on investment
How to work out return on investment: divide the net profit an investment produced by what it cost, and how business.gov.au uses ROI when valuing a business.
How to calculate sales growth
How to work out sales growth between periods: the change in sales divided by the earlier period's sales, compared like for like and checked for one-offs.
How to calculate stock turnover
How to work out stock turnover and the average days stock is held: cost of goods sold divided by average stock, with checks for seasons and slow lines.
How to calculate the current ratio
How to work out the current ratio from a balance sheet: total current assets divided by total current liabilities at one date, and what can make it mislead.
How to calculate the quick ratio
How to work out the quick ratio: cash and receivables divided by current liabilities, why stock is left out, and how to test the customer debts you count.
How to calculate working capital
How to work out working capital step by step: update the books, total current assets and current liabilities, subtract, and track the result each month.
How to calculate your break-even point
How to find the sales your business needs to cover its costs: sort fixed and variable costs, find each sale's contribution, then calculate in units or sales.
How to cash up a till
How to cash up a till at the end of the day: calculate the expected cash from the float and every recorded movement, count the drawer and explain any gap.
How to catch up on bookkeeping
How to bring overdue books up to date: size the backlog, gather statements and documents, work from the oldest month, reconcile and stay current.
How to chase unpaid invoices
What to do when a customer hasn't paid on time: check the invoice and your terms, send reminders, call, agree a payment plan and know when to get help.
How to choose a bookkeeper
How to choose a bookkeeper: list what you need done, ask each candidate the same questions, check the fit, and agree in writing who holds the records.
How to choose a business bank account
What to work out before choosing a business bank account, the questions to ask about fees, access and records, and how to set the account up in your books.
How to correct a journal entry
How to fix a journal entry posted wrongly: find what went wrong, choose a reversal or a correcting entry, check the result and leave a clear trail behind.
How to do a bank reconciliation
A step-by-step guide to reconciling a business bank account: what to compare, why the balances differ and how to deal with each difference.
How to do a cash flow forecast
How to build a cash flow forecast for a small business, month by month: what you need, how to estimate money in and out, and how to keep it current.
How to do a credit check on a customer
How to check a customer before you let them pay later: what to ask for, what to look at, how to set a limit and terms, and how to record the decision.
How to do a sales forecast
How to forecast sales month by month: start from past sales, build each line from its drivers, allow for seasons and changes, then check it against actuals.
How to do a stocktake
What a stocktake is, how to prepare for and run the count, how to deal with differences from your records and what to do with the results.
How to do a trial balance
How to prepare a trial balance step by step: get the books up to date, list every balance, total both columns, track down a difference and review each account.
How to do a variance analysis
How to analyse the gap between budget and actual results: calculate each variance, decide which to investigate, separate volume from price and act on the cause.
How to do job costing
How to work out what each job costs: tag direct costs to the job, add a share of overheads, compare the total with the price and use the results to quote.
How to go paperless with your records
How to move business records from paper to digital: what the rules say, cutting new paper, scanning, storage and backups, and what you can throw away.
How to handle cash in a business
Controls for handling cash in a small business: record every sale, split the jobs between people, limit and secure cash on hand, bank regularly and check often.
How to keep receipts for your business
What a receipt should show, how to make sure you get one, how to store receipts so you can find them, and how to match each one to its transaction.
How to make a business budget
What a business budget is, what to gather before you start, how to build one month by month and how to check it against your actual results.
How to manage a business credit card
How to run a business credit card: rules for cardholders, a receipt for every charge, recording spending as it happens, and watching the limit and due date.
How to manage a business loan
How to record a business loan, split each repayment into principal and interest, check the balance against the lender's statement and plan for every payment.
How to manage accounts payable
How to handle supplier bills from arrival to payment: check and approve each one, match it to the order and delivery, pay on time and reconcile statements.
How to manage accounts receivable
How to run accounts receivable: decide who gets credit, set terms, invoice promptly, match each payment to its invoice and review what is owed and how long.
How to manage business debt
How to get on top of business debt: list what you owe, decide what to pay first, talk to creditors and your bank early, record each deal and find free help.
How to manage consignment stock
How to keep track of consignment stock, whether you sell other people's goods or place yours with a seller: the agreement, the records, counts and settlements.
How to manage dead stock
How to find stock that has stopped selling, decide what to do with each item, record the outcome in your books and stop the same thing happening again.
How to manage gift cards
What the ACCC says about gift card conditions, expiry dates and fees, and how to track gift cards in the books as money owed to customers until they are used.
How to manage inventory
How to manage stock from day to day: recording what comes in and goes out, setting reorder points, spotting slow-moving stock and counting between stocktakes.
How to manage petty cash
How to set up and run petty cash: choosing a float, recording each payment, topping it up, checking that it balances and keeping it secure.
How to manage stock levels
How to keep stock between too much and too little: rank items by importance, set a minimum and maximum for each, measure stock cover and plan for seasons.
How to manage suppliers
How to manage suppliers: keep a supplier file, check new suppliers, agree terms in writing, track how each performs and review the relationship over time.
How to manage your business cash flow
Practical ways to keep cash flowing in a small business: track it each month, forecast ahead, get paid sooner and plan for the costs you know are coming.
How to negotiate payment terms
How to prepare for and negotiate payment terms with suppliers, what longer terms do to your cash, how to weigh an early payment discount and what to record.
How to pay suppliers
How to pay supplier bills by transfer, direct debit, card, cheque or cash, what each method leaves in your records and the checks that stop payment mistakes.
How to prepare a balance sheet
How to build a balance sheet from your books: choose the date, prove each balance against outside records, group the accounts and check that it balances.
How to price a product
A method for pricing a product: build the full unit cost, add a share of overheads and a margin, test it against the market, and display the price lawfully.
How to price your services
A method for pricing services: set pricing goals, know what each hour or job costs, choose an approach, check the market, then quote and invoice clearly.
How to read a balance sheet
What each part of a balance sheet means, how to work out net assets and working capital, and what the figures say about a small business.
How to read a cash flow statement
What each line of a small business cash flow statement means, how the balances link from month to month, and what to look for when you read one.
How to read a general ledger
How to read a general ledger account line by line, trace a report figure back to its source document and spot duplicates, misposted items and unclear journals.
How to read a loan statement
What each line of a business loan statement means, how repayments split between interest and the balance, and how to match the statement to your books.
How to read a profit and loss statement
What each line of a profit and loss statement means, how gross and net profit are worked out, and how to compare the figures with past periods and your budget.
How to read a trial balance
How to make sense of a trial balance: read the accounts in groups, find the profit hiding in it, spot balances on the wrong side and compare it with last year.
How to read an aged receivables report
What the columns of an aged receivables report mean, how to check it is complete, which patterns to look for and how to turn it into a follow-up list.
How to reconcile a credit card
How to reconcile a business credit card: match each charge to a receipt, record fees and interest, treat repayments as transfers and explain any difference.
How to reconcile a loan account
How to reconcile a business loan with the lender's statement: roll the balance forward, record interest and fees, split repayments and explain what is left.
How to reconcile accounts
Which accounts a small business reconciles, what each is checked against, the steps every reconciliation shares and an order to work through them at month end.
How to reconcile accounts payable
How to reconcile accounts payable: agree the payables list with the ledger, check each supplier statement line by line and explain every difference.
How to reconcile accounts receivable
How to reconcile accounts receivable: check the records are complete, agree the aged list with the ledger, test balances with customers and sort what you find.
How to reconcile cash
How to check recorded cash takings against bank deposits: track cash waiting to be banked, match each deposit to its takings and explain what is left.
How to reconcile EFTPOS sales
How to reconcile EFTPOS takings: compare register card totals, terminal settlements and provider deposits, record merchant fees and explain cut-off gaps.
How to reconcile inventory
How to reconcile inventory: set the cut-off, check stock records against a count, then agree the ledger's inventory balance with the value of the stock records.
How to reconcile the general ledger
How to reconcile the general ledger at a period end: support each balance sheet account with evidence, clear suspense accounts and review manual journals.
How to record a credit card payment
How to record paying off the business credit card, and the card purchases it covers, so each cost reaches the books once and the card balance stays right.
How to record a purchase
How to record a business purchase: choose the right account, enter the bill or receipt once, record the payment and split anything that is partly private.
How to record a sale
How to record a sale under cash or accrual accounting: the document to work from, the usual entries, part payments, credit notes and money that isn't a sale.
How to record accruals
How to record accrued expenses and accrued income at a period end, base each amount on evidence, and reverse or clear it when the bill or invoice arrives.
How to record bank fees
How to record bank, card, merchant and loan fees: where to find them, the usual entry, fees taken out of settlements, refunds, and why interest stays separate.
How to record cash sales
How to get cash takings into your books: work from a daily sales record, show refunds separately, and treat the float and banking as transfers.
How to record inventory purchases
How to record stock you buy to sell: the usual entries under perpetual and periodic tracking, supplier bills and returns, and keeping item quantities in step.
How to reduce stock shrinkage
What stock shrinkage is, how to measure it from stocktake results, where it usually comes from and the receiving, recording and till checks that reduce it.
How to set financial goals
How to set business financial goals: start from your own figures, make each goal specific and measurable, build it into the budget and track it monthly.
How to set up a chart of accounts
How to set up a chart of accounts for a small business: the five account types, choosing accounts and codes, and keeping the list useful as you grow.
How to set up your bookkeeping
The decisions that set up a small business's books: a business bank account, a bookkeeping system, cash or accrual, your accounts and a routine.
How to track business KPIs
How to choose a handful of key performance indicators, define each one clearly, draw the figures from your books and read the trend each week or month.
How to track project costs
How to track a project's costs while it runs: a budget by cost line, a code on every cost, commitments, variations and a monthly forecast of the final cost.
How to work with a bookkeeper
How to work well with a bookkeeper: a complete handover at the start, a steady flow of documents, quick answers to queries, a monthly review and a clean exit.
How to write a journal entry
How to write a manual journal entry: when one is the right tool, the parts it needs, the steps to work out each line, and how to check it once it is posted.
Monthly bookkeeping checklist
A month-end bookkeeping checklist: get every transaction in, reconcile each account, review who owes what, read the reports and file the records.
Prepare a profit and loss statement
How to build a profit and loss statement from your books: close off the period, run a trial balance, group the income and expense accounts and check the result.
Separate business and personal finances
Why to keep business and personal money apart, how a business bank account helps, and how to record mixed-use expenses and money you take out.
Signs of cash flow problems
The early signs that a business is running short of cash, where they show up in your books, and what you can do once you spot them.
What does a bookkeeper do?
What a bookkeeper does for a small business, from recording daily transactions to banking, invoices and reports, and what stays with you as the owner.