Accounting and Bookkeeping for Pubs
By: Sky Accountants
As a pub owner, you should keep accurate records of your income and expenditure, assets and liabilities and payments and receipts. Sole traders need to keep records for five years while companies need to keep records for seven years in order to comply with the requirements of the Corporations Act 2001.
By having a good record keeping system such as Xero, you will be able to keep track of your income and expenses and know your profitability. This will aid you in the event that you need to obtain finance. At any point in time, you will be able to quickly see what customers owe you money and how much you owe your suppliers. Using an accounting software such as Xero will allow you to calculate how much GST/PAYG you need to pay on your Business Activity Statements.
Sole Traders and Partnerships
The records you need to keep depend on the nature of your business and the taxes you need to pay, collect or charge. Sole traders and partnerships must keep accounts, proof of tax payments and records related to income and expenses. These are needed when completing tax returns and answering any questions from the ATO.
A profit and loss account can be created using the abovementioned records. Pubs should have detailed records of their cash book and petty cash, sales and purchase ledgers, wages records, invoices and receipts issued and received, stock records and bank statements.
The law allows individuals and companies to claim expenses in terms of their personal and business affairs such as direct costs, which are purchases and goods for resale like food and drinks, and wages and salary. Costs such as office equipment, fixtures, rent, insurance, maintenance, repairs and utilities can be claimed as well.
The law also allows travel expenses to be claimed. It is important to keep detailed records of business and personal mileage to be able to claim the business use of motor expenses like road tolls, fuel, insurance, repairs, parking, registration, etc.
Printing, stationery and administration costs, legal and professional charges, subscriptions, advertising, interest, internet, etc. are also deductible. Your pub will have a unique list of deductible expenses; so, consult your accountant about it.
To know more about pub accounting, contact your tax accountant. Click here (https://www.skyaccountants.com.au/