Pharmacy Daily | Health Checks

Sometimes bookkeepers and accountants can get so busy they don’t take the time to review or deal with errors in bookkeeping data files. There are a few things that can be done to give your books a basic “health check”. For example, when reconciling bank statements, are there any unreconciled items? If so and they go back many months, then entries are not correct. These amounts need to be cleared out but you need to be careful how you do it as it will affect previously lodged BASs. They may need to be reversed or your previous BASs may need to be adjusted. BASs are easily adjusted if lodged online. A purchases reconciliation report should be done regularly to keep an eye on any out of balance amounts, if you have these then something has been entered that is incorrect. When you look at your payables report, are there really old amounts on the list that you don’t really owe? If so these amounts should be checked with a supplier statement, or by phoning your supplier, to see if the amount is really owed. If not then the purchases should be reversed to the current BAS period so your GST is correct. Incorrect entries need to be fixed so your financial reports such as profit and loss will be correct. This week’s contributor is Joanne Lyons from Bookmarx Bookkeeping.

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The above article was sent to subscribers in Pharmacy Daily's issue from 20 Feb 12
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