Good day my fellow Australian small business owners and special hi to my friends from Flying Solo, this is a place where more than 35 thousand micro business owners hang out to learn, grow and share ¢â‚¬" highly recommend it. www.flyingsolo.com.au
Today I want to go through some more details about the simple act of spending money otherwise called business expenses :-)
One thing I noticed about myself is that as soon as I started making business expenses It was much easier to spend the funds, if for example in my home I would consider which new TV to buy I would contemplate and check a few options before spending the funds, in my business It is much easier to justify spending the money. Not sure if this is a good thing though...
Anyway, this transaction is very straight forward we take money out of our bank account and into another account. The record usually comprises of a date, the account the money is taken from, the name of payee, a description of the transactions and an account to which we attribute the expense.
This means the amount will be credited on the bank account and debited on the specific expense account.
When you associate a spend transaction with a specific expense account it will allow you to later easily identify and report on these kind of transaction, for example you can create an expense trend report for your advertising expenses, or figure out how much you spent on your car on the previous financial year and so on.
One important thing you need to remember about these transactions is that you should usually record Spend Money transaction for non credit transactions and not for things like purchases where you should use the purchase option or buying assets which should mostly not be considered an expense.
Perhaps this is a good place to remind you that this tutorial is about how to use your accounting software to do your bookkeeping but is not an accounting advice and in fact I am not an accountant :-)
That¢â‚¬â„¢s about all there is to spending money using your Accounting Software. Next week we will discuss the contact section.
What is this about?
Nominal Accounting is all about making bookkeeping simple, we created Nominal to provide a simple solution for Australian Micro Businesses. In this newsletter/blog we're going to cover different aspects of business bookeeping and to try and provide a some 'lessons' or tips on how to go aboutdoing some of these simple tasks.
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