Blog

February 15, 2016

Double Entry Bookkeeping Principle

The double entry bookkeeping principle is profoundly important in the world of accounting. It is essential that students of accounting gain an understanding, from the outset, of this principle that is more than 500 years old. This best way to explain the double entry bookkeeping principle is to give an example of transactions from the books of the imaginary organisation called Lots of Fun Pty Ltd. Example 1: Lots of Fun Pty Ltd purchased a car for $5,000 using a loan from the bank, the two effects are: Lots of Fun Pty Ltd acquires an ASSET worth $5,000 (the car). This is the debit affect. At the same time it also incurs a LIABILITY to the bank of $5,000 (the […]
February 9, 2016

Understanding Your Profit and Loss Statement

Most entrepreneurs start organisations because they are passionate about the primary work of the business — which usually isn’t accounting. This means that most entrepreneurs aren’t completely comfortable interpreting the monthly financial reports they receive. We have met hundreds of entrepreneurs who never look at their profit and loss statements because they do not understand them and explanations have been too complicated. While we can’t teach you to be a Bookkeeper Melbourne or Melbourne Accountant we can give you some basics that will help you with this important financial tool. All P&Ls are based on a very simple formula — sales minus costs equals profit. It really is that simple. Everything else is a matter of breaking out sales or cost into […]
February 1, 2016

Why Accuracy is Critical in Bookkeeping

Bookkeeping is the process of maintaining an accurate record of a company’s business transactions. Business reports are generated using bookkeeping numbers and used to help maintain profitability. Before determining whether you want to invest in a bookkeeping service or try doing the bookkeeping yourself, you need to understand the many advantages of accurate bookkeeping. Administration Accurate bookkeeping provides up-to-date figures a business owner or manager can access at any time to decide on whether to make an investment or plan a capital purchase. It also helps deliver a complete package to the ATO when reporting taxes, lowers the possibility of an error that could trigger an audit and eliminates the expense of in fees and penalties from having to file […]
January 25, 2016

What Is A Registered BAS Agent

The ATO has introduced legislation affecting bookkeepers who provide BAS related services to clients. How do you make sure that your bookkeeper Melbourne is ATO approved? At Nobel Thomas, you work with  BAS agents from compliance to consultancy. As a result of a recent change in Australian legislation, all bookkeepers at Nobel Thomas Bookkeeper Melbourne that currently provide BAS services for your and charge a fee for that service must consequently be registered as BAS Agents. BAS services include: Preparing or lodging an approved form for a client that relates to GST, PAYG Withholding, PAYG Instalment or FBT; Giving advice about these obligations; Or Dealing with the ATO on behalf of a client in relation to these obligations. A BAS […]