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Veechi Curtis - Getting Started in Bookkeeping For Dummies

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Veechi Curtis Getting Started in Bookkeeping For Dummies
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Created especially for the Australian customer! Learn the basics of bookkeeping and start on the path to success! If youve been putting off sorting through a mountain of receipts and invoices, delay no more& this straightforward reference will help keep the finances of any business, no matter how large or small, in order. Getting Started in Bookkeeping For Dummies explains the essentials, from understanding GST through to recording everyday transactions and whipping up flawless reports. Get started with the basics understand double-entry bookkeeping and how to handle debits and credits Find accounting software choose the accounting program thats right for you Create record-keeping systems set up procedures to help everyday business run smoothly Track your transactions record sales and payments, and reconcile accounts Understand GST calculate GST correctly and learn how to code transactions Balance the books reconcile bank accounts and make sure your work is spot on General financial reports provide accurate reports to help a business grow and succeed Become a great bookkeeper develop the right attitude for bookkeeping success Open the book and find: Simple ways to build a list of accounts How to comprehend debits and credits Tips for choosing accounting software An explanation of GST and how it affects business transactions Strategies for collecting overdue debts Easy references for how to allocate tricky transactions Advice on registering as a BAS agent

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Getting Started in Bookkeeping For Dummies, Australian Edition

by Veechi Curtis

Getting Started in Bookkeeping For Dummies - image 2

Getting Started in Bookkeeping For Dummies, Australian Edition

Published by
Wiley Publishing Australia Pty Ltd
42 McDougall Street
Milton, Qld 4064

www.dummies.com

Copyright 2010 Wiley Publishing Australia Pty Ltd

The moral rights of the author have been asserted.

National Library of Australia Cataloguing-in-Publication data:

Author: Curtis, Veechi.

Title: Getting Started in Bookkeeping For Dummies/Veechi Curtis.

Edition: Australian ed.

ISBN: 978 1 74246 874 7 (pbk.)

Notes: Includes index.

Subjects: Bookkeeping Australia.

Dewey Number: 657.2

All rights reserved. No part of this book, including interior design, cover design and icons, may be reproduced or transmitted in any form, by any means (electronic, photocopying, recording or otherwise) without the prior written permission of the Publisher. Requests to the Publisher for permission should be addressed to the Contracts & Licensing section of John Wiley & Sons Australia, Ltd, 42 McDougall Street, Milton, Qld 4064, or email auspermissions@wiley.com .

Cover image: iStockphoto.com/Uyen Le

Typeset by diacriTech, Chennai, India

Printed in China by

Printplus Limited

10 9 8 7 6 5 4 3 2 1

Limit of Liability/Disclaimer of Warranty: THE PUBLISHER AND THE AUTHOR MAKE NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE ACCURACY OR COMPLETENESS OF THE CONTENTS OF THIS WORK AND SPECIFICALLY DISCLAIM ALL WARRANTIES, INCLUDING WITHOUT LIMITATION, WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE. NO WARRANTY MAY BE CREATED OR EXTENDED BY SALES OR PROMOTIONAL MATERIALS. THE ADVICE AND STRATEGIES CONTAINED HEREIN MAY NOT BE SUITABLE FOR EVERY SITUATION. THIS WORK IS SOLD WITH THE UNDERSTANDING THAT THE PUBLISHER IS NOT ENGAGED IN RENDERING LEGAL, ACCOUNTING, OR OTHER PROFESSIONAL SERVICES. IF PROFESSIONAL ASSISTANCE IS REQUIRED, THE SERVICES OF A COMPETENT PROFESSIONAL PERSON SHOULD BE SOUGHT. NEITHER THE PUBLISHER NOR THE AUTHOR SHALL BE LIABLE FOR DAMAGES ARISING HEREFROM. THE FACT THAT AN ORGANISATION OR WEBSITE IS REFERRED TO IN THIS WORK AS A CITATION AND/OR A POTENTIAL SOURCE OF FURTHER INFORMATION DOES NOT MEAN THAT THE AUTHOR OR THE PUBLISHER ENDORSES THE INFORMATION THE ORGANISATION OR WEBSITE MAY PROVIDE OR RECOMMENDATIONS IT MAY MAKE. FURTHER, READERS SHOULD BE AWARE THAT INTERNET WEBSITES LISTED IN THIS WORK MAY HAVE CHANGED OR DISAPPEARED BETWEEN WHEN THIS WORK WAS WRITTEN AND WHEN IT IS READ.

Trademarks: Wiley, the Wiley logo, For Dummies, the Dummies Man logo, A Reference for the Rest of Us!, The Dummies Way, Making Everything Easier, dummies.com and related trade dress are trademarks or registered trademarks of John Wiley & Sons, Inc. and/or its affiliates in the United States and other countries, and may not be used without written permission. All other trademarks are the property of their respective owners. Wiley Publishing Australia Pty Ltd is not associated with any product or vendor mentioned in this book.

About the Author

Veechi Curtis has a degree in Accountancy and Business Management from Charles Sturt University, and has worked as a business consultant for more than 13 years, including several years running a contract bookkeeping service. As a journalist, she has written for many publications including Australian PC World, Australian Personal Computer and CCH Australia Limited , and has also been a columnist for The Sydney Morning Herald .

Veechi is also the author of Small Business For Dummies, MYOB Software For Dummies and QuickBooks QBi For Dummies and co-author of Bookkeeping For Dummies and Business Plans For Dummies .

Veechi has three children and lives with her husband in the beautiful Blue Mountains of New South Wales. Feel free to send Veechi a message, or ask a question about this book, via her website at www.veechicurtis.com.au .

Authors Acknowledgements

Veechi would like to thank Andrew White of Benetatos White for his help with legal questions. Thanks also to the John Wiley editorial team: Rev Mengle, Hannah Bennett, Jen Bingham, Bronwyn Duhigg, Caroline Hunter and Gabrielle Packman.

Last but not least, thanks to my very silly and wonderful family, who provide me with all the inspiration I could ever need.

Publishers Acknowledgements

Were proud of this book; please send us your comments through our online registration form located at http://dummies.custhelp.com.

Some of the people who helped bring this book to market include the following:

Acquisitions, Editorial and Media Development

Acquisitions Editor: Rebecca Crisp

Editorial Manager: Hannah Bennett

Production

Graphics: Wiley Art Studio

Cartoons: Glen Lumsden

Proofreader: Liz Goodman

Indexer: Veechi Curtis

The authors and publisher would like to thank the following copyright holders, organisations and individuals for their permission to reproduce copyright material in this book.

MYOB Australia: screen captures from MYOB reproduced with permission. Copyright 2010 MYOB Technology Pty Ltd

Reckon Limited: Copyright 2010 Intuit Inc. All rights reserved

Xero: Screenshot on page 64 reproduced with permission from Xero

Microsoft Corporation: MS Excel screenshots reprinted by permission from Microsoft Corporation

Every effort has been made to trace the ownership of copyright material. Information that will enable the publisher to rectify any error or omission in subsequent editions will be welcome. In such cases, please contact the Permissions Section of John Wiley & Sons Australia, Ltd.

Introduction

I first started working as a bookkeeper in my late teens, doing handwritten books in leather-bound journals down by the docks in my hometown of Edinburgh, Scotland. Later, I emigrated to Australia, where I got a job working as a bookkeeper in the Blue Mountains west of Sydney. There I worked with first-generation accounting software, substituting the peace of those inky journals for a battle of wills (myself versus the computer) that required a bizarre mixture of programming skills and native cunning.

By my late twenties, I had a small business of my own, employing four staff and offering bookkeeping services to local businesses. I finished a degree in accounting (which contributed surprisingly little to my bookkeeping expertise), and started writing for magazines and newspapers reviewing accounting software. In the following years, I wrote a fair few For Dummies titles, including MYOB Software For Dummies and QuickBooks For Dummies .

Even with all this experience behind me, I was in a bit of a quandary as to how to structure the project that you have in your hands right now Getting Started in Bookkeeping For Dummies . I didnt want a dull, theoretical approach that laboured on about debits and credits, but nor did I want to write an accounting software how-to guide. Instead, Ive tried to strike a balance, with a book that explains the principles of bookkeeping in the context of doing business in the 21st century.

About This Book

This book talks about getting started with bookkeeping, explaining accounting concepts such as debits and credits, the difference between an asset and a liability, and how expenses are different from income. I also explore the pros and cons of the different ways of bookkeeping are you best to do books by hand, use a spreadsheet or purchase accounting software?

I explain how to record expenses (the scary bit), how to keep track of income (much more fun) and how to balance your bank account. Hopefully, these skills combined can help you sleep well at night, with no counting of sheep required.

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