Do you have shoe boxes full of receipts or haven't gone near your books for a few years?
Has someone tried to do your books and made a complete mess of them? Let us help you!
One day, I got a call from a lovely gentleman who had been recommended to me by his Accountant. He had just received a letter from the ATO advising him that they would be putting him in jail if he did not lodge his BAS returns for the past 8 years by the end of the month. It was the last week of the month and he hadn't touched his books for 8 years.
After meeting with him and reviewing his situation, I was able to speak to the ATO on his behalf and organise an extension of time before any legal action was taken to allow me to go back and perform CPR on his bookkeeping.
It took a bit of time but his books were brought up to date and the ATO was happy. I trained his wife and daughter in law in MYOB and setup a step by step procedure for how to handle their paperwork. I also put it in writing to make sure they did not have any slipups/excuses.
The moral of this story is.
1. Don't ignore the letters the ATO is sending you, especially not for 2 years
2. Even if you have to keep your receipts in a shoebox, please always keep your receipts.
3. If you spend an hour or two a week to do your bookwork, or pay a good Bookkeeper to do it for you.
Another interesting story.....
I received a call from another Business owner that was very worried. He completely owned one business and was a part owner in another business. His business was going through and ATO Audit and had been advised of really big inconsistencies in his paperwork by the ATO. He was also concerned about tge business he was a part owner of, as the other owner suspected that their Bookkeeper was stealing money from them.
I met with this business owner and the ATO and reviewed the inconsistencies that showed up including non payment of Superannuation for two years. With the agreement of the business owner and the ATO, I re-created their books for a two year period and negotiated with the ATO Superannuation Guarantee department to perform a full report and setup a payment arrangement.
Meanwhile, I met with both business owner's of the second business and agreed to perform an audit of their records. The Bookkeeper was in fact stealing millions of dollars from the business over a number of years. Working with the business Accountant and the Freud squad the fraudulent transactions were identified and the Bookkeeper charged.
I then setup a fresh set of books, set up systems and procedures for running the office properly and trained both business owners on an appropriate check and recheck system to make sure they know what is going on with their business operations and finances and do not get themselves in that position again.
The moral of this story:
1. Make sure you are always aware of what is going on with your business.
2. Make sure you always have paperwork that supports what you are invoicing to your clients/customers
3. Make sure you always check the goods that are coming in against the invoices.
4. Make sure you do not pay anything without an invoice and know what that invoice is for and that the invoice has been checked against the stock received.
5. Always check your Financial Reports at the end of each month and compare the figures to previous periods. If they are higher or lower than the comparison period, find out why!