Do I Need More Than One Bank Account?

WHY DO COMPANIES HAVE MORE THAN ONE BANK ACCOUNT? There are multiple reasons a business may choose to have more than one bank account.    Some companies have a main cheque account and then a tax management account. They transfer regular amounts into the tax management...

Recording a New Loan

  Step 1 – RECORD THE PURCHASE and SET UP THE LOAN   I always find it easiest to set up loans with a straight journal entry . a DEBIT to the appropriate FIXED ASSET Account (ie. GENERAL POOL ASSETS) for the GST exclusive cost of the Asset purchased with the CAG code...

Finance Options

Note: This is not advice. Please look at it as a guide only and get specific advice from your own Tax Agent or Lawyer. Question: I am Cash Based for GST. I need to buy a new car (or piece of business equipment). What is the difference between a Lease a Hire Purchase...

The General Clearing Account

What is the general clearing account used for and how is it used? The GENERAL CLEARING ACCOUNT is used for a multitude of things and is an extremely handy account to have in your Chart of Accounts. The GENERAL CLEARING ACCOUNT is set up as a BANK Type Account in the...

Recording Banking Transactions

One of the regular mistakes that I find when I am looking at my clients accounting files is the incorrect usage of tax codes in banking transactions. So help with this I have created a list of the type of banking transactions you might come across and the correct tax...