Developing a accounting system with food financial policies and procedures is critical for a business to operate efficiently and successfully. One of the reasons businesses fail is where they don't keep proper records and information about their business. A business accounting system will help to prepare financial statements. Financial statements produced regularly and correctly give key information to continually improve your business. This presentation will help you to set up a business accounting system that will help you to manage the business effectively.

1. HOW TO SET UP
BUSINESS ACCOUNTING
SYSTEM
One of the main reasons businesses fail is because
there isn't a good bookkeeping system in place

2. Steps to set up business record
keeping system
 Ensure accounting system meet compliance
requirements
 Develop a financial procedures and processes
 Set up transaction classifications (Chart of accounts)
 Ensure process are in place to collect and record information

3. Develop procedures and
processes
Segregation of duties
Separating duties to prevent fraud or error by one person
Approval and authorisation
Who are allowed to authorise various activities within
the business?
Customers and suppliers
How to choose and manage them?

4. Develop procedures and
processes
Risk management
Insurance, Quality control etc.
Debt collection
Credit control policies and procedures
Employees and payroll
Hiring policies, payroll management

5. Accounting cycle
Collect
data
Journal
Genera
l ledger
Adjust
Trial
balanc
e
Financi
al
stateme
nt
Accounti
ng cycle

6. How to set up Chart of
Accounts?
The chart of accounts is very important to the overall effectiveness and
accuracy of your bookkeeping.
 Define the various accounts to be used in business
 Assets – Cash, debtors, inventory, equipment, investments
 Liabilities – Creditors, tax payable, loans,
 Income – Sales, interest income, dividends
 Expenses – Salaries, rent, marketing, advertising
 Allocate a numbering system
 To expand the level of information use tracking categories (cost
centres, location)
 Discuss with professional bookkeeper

7. Collect, organise, store and
analyse
FinancialRecords
•
Any transaction that has a
financial element:
• Invoices, receipts, delivery
note for good and services
you provide
• Invoices for goods and
services purchased and
bills paid
• Payment to employees
• Payment to agencies like
ATO, ASIC
• Bank statements, end of
year stock take records
etc.
NonFinancial
Records
• Contracts with suppliers
and customers, lease
agreements, insurance
policies
• Licences and permits
• Employee records, such
as time sheets, leave
records, pay slips,
employment contracts
• Records which are
business related and
required by the law e.g..:
Work Health and Safety
• Information regarding
customers and suppliers