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Bookkeeping For Dummies, Australian and New Zealand Edition by Lynley Averis, Veechi Curtis

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Chapter 8

Recording Expenses and Payments

In This Chapter

Struggling for breath underneath a pile of receipts

Choosing a method to suit your madness

Guarding that petty cash tin with fire in the belly and a glint in the eye

Finding a home for every transaction

Getting technical with accrual accounting (purchase orders, suppliers bills and more)

Staying on top of the national debt (who you owe money to, and how much)

In this chapter, I arrive at the heart of the matter, explaining how to record expenses and supplier payments. I start by exploring the innards of a simple handwritten cash journal (after all, bookkeepers have used this method for hundreds of years), but I quickly move on to demonstrate the same activities using a spreadsheet or accounting software.

A simple cash payments journal (whether handwritten or computerised) works well for many different businesses, but if you want to keep tabs on inventory or maintain a set of books that shows how much you owe to suppliers, then accrual accounting is the name of the game. I explain how this deal works towards the end of the chapter.

Keep in mind that a good bookkeeper is smart, organised and just a tad pedantic (not to mention good-looking and blindingly intelligent). A smart bookkeeper looks for ways to improve systems and make clever use of technology. An organised bookkeeper transforms a chaos of paperwork into a set of logical files where anyone can find anything. And a slightly pedantic bookkeeper takes care when allocating ...

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