At it’s most basic, bookkeeping involves receiving data in the form of invoices etc. and entering this data into an accounting system. So, if you are one of our clients, before we can start doing your accounts, we will send you a request for a list of documents. The type of document we request from you will depend on the scope of work that we agreed to do for you within your engagement letter.
Once you have been on-boarded with us as a new client, we will prepare a “source document list” for you. This list will outline all data we require from you in order to process your accounts accurately. A source document is any document you create or receive in the normal daily running of your business. These documents are evidence that transactions occurred. They are sometimes referred to as the “paper trail”. A source document includes some basic facts about the transaction including the date it occurred, to whom the transaction was made, the purpose and the amount.
Depending on your business type and structure we could ask you to provide any or all of the following source documents:
- Bank statements
- Cheque books
- Deposit books
- Cash register tapes
- Purchase invoices and receipts
- Purchase orders
- Sales invoices
- Adjustment notes
- Employee payroll information
- Employee superannuation contribution data
- Previous business activity statements
- Share documentation
- Motor vehicle log books
- Stocktake records
- Evidence of sale or disposal of assets
- Asset loan documentation
- Details about your ABN, Tax File Number, business structure etc.
Of course you won’t be required to provide every single document listed above all the time – that would be crazy! We will let you know what we want and why it is required etc. One thing to note here, if we do ask you to provide a particular document, you must do so. If you cannot provide a document, this will hamper our efforts to produce an accurate, true and correct set of accounts for you which in turn, will affect many aspects of your business including payments to the ATO.
Source documents are important – they are evidence to prove that what you say occurred in your day-to-day business dealings, really did occur (they’re also useful should you get audited!). So when you receive your request for documents from us, please make every effort to provide those documents. Of course we know that things can go missing etc. and we will work with you should you be unable to find or produce documents.
So if you are one of our clients, be on the look out for your request for documents. Providing them in a timely manner will help us get your accounts processed and looking ship-shape in no time!