Most business owners, particularly our clients in the Liverpool and Bankstown areas, understand the importance of having a current Balance Sheet. Listing all of what a company owns (known as “assets”) and what a company owes (known as “liabilities”), provides everyone – including lenders, creditors, investors, business analysts and government agencies – a snapshot of the company’s overall financial health at a certain point of time.
What Is Considered To Be An Asset?
Assets may fall under one of two categories:
Current Assets (these can be converted into cash within 12 months)
Non-Current Assets (these can be converted into cash beyond 12 months)
Assets are owned company property or resources which hold future economic value. Some of the most common assets which a company will have include:
- Monies owning from debtors/customers
What Is A Liability?
Liabilities are the financial obligations of a company, or the monies owed to creditors for past transactions. Some of the most common liabilities include:
- Bank loans
- Business credit cards
- Lease agreements
- PAYG wages tax payable
- GST liability
- Money owed to creditors/suppliers
Staying Up-To-Date On Your Bookkeeping
As mundane as bookkeeping may seem to some, having an up to date Balance Sheet is vital if you hope to run a professional business. The problem is that some business owners do not have the knowledge or the desire to stay on top of their day to day accounts. Often they are already strapped for time and never get around to it.
Many who have been successful in business have told us that in order for a business to thrive, you need to focus on what you are good at. For example, if you are a fantastic analyst and know what you have to do to steer your business in the right direction but your “people skills” are lacking, you would want to hire someone else to take care of the reception and to handle the customer service side of your business.
The same rings true for those who simply do not have the time or the will to stay on top of their bookkeeping. This is where ATP Tax accountants can help your business in the western Sydney, particularly in the Liverpool, Casula, Bankstown, and Ingleburn areas. Not only will we ensure that you are compliant at tax time, but we will help you streamline and improve your business.
To learn more about ATP Tax accounting and bookkeeping services, we invite your to email rafiq@ATPtax.com or phone us on 1300 829 484.