Your accountant relies on the correct recording of purchases, purchase credits, sales, sales credits, receipts and payments made by a bookkeeper in order to prepare accurate tax returns and avoid penalties if you are ever audited by the Tax office. A bookkeeper with some accounting background is able to know which journal and ledger to record each transaction.
A ledger shows the balance of each account i.e. a debit or credit. The different types of accounts (collectively known as the chart of accounts) are: asset, liability, equity, income and expense. A trial balance is a list of balances of all the accounts in the general ledger. All the debit balances must equal the credit balances in a properly maintained set of accounts.
Transactions also need to be classified for GST purposes. Tax codes are used in most accounting software packages to classify transactions for BAS purposes and to correctly determine your liabilities to the Tax Office.
Whilst many transactions have a simple classification as an income or expense with the standard 10% GST rate, others do not. In order to deliver an accurate bookkeeping service, it is preferable for a bookkeeper to have some accounting training to deal with these transactions. At Accounts & Advice, our staff is qualified accountants or qualified Melbourne bookkeeper s and have both the training and experience to provide an accurate bookkeeper service.