Accounts Cheat Sheets

Always consult an accountant or financial adviser before making any decisions. We are not accountants and intend this guide for demonstration purposes.

Your business goal is to build up profits through maximising income while reducing expenses. We prefer the "envelope" system outline below. Our on-line course walks you through every step following this structure. This is the "Secret Sauce" to building a solid financial platform to run your business!!!

Set up Individual Bank Accounts

• Income Bank Account
  
• • All income land in this account. The intention is that NO money leaves this account except via a transfers mentioned below.
• Operating Bank Account
• • All general expenses come out of this account. Total average weekly/fortnightly operating expense are calculated and automatically transferred from income into this account. 
  • NOTES: 
  • • Drawings for "wages" are an operating expense. 
    • Keep in mind that our goal is for building profit, not splurging. Review your expenses frequently to ensure they are truly needed.
• GST and Tax Bank Account
  
• • On receiving payment, transfer the 10% GST + 22% for tax. All money in this account belongs to the ATO and cannot be used for any other purpose.
• Annuals Bank Account
  
• • Every week/fortnight transfer money from income. The amount is calculated on your Annuals spreadsheet. Download Annuals Spreadsheet
    
• Suppliers Bank Account
  
• • On receiving a customer payment, transfer amounts owing in materials into this account. All suppliers are paid out of this account only when due.
• Profit Bank Account
  
• • When doing BAS, open up "profit and loss statement" for the previous period. Transfer profit amount from income into this account. DO NOT take money out of profit until you have reached your goal - IE: $1m

if you have employees, you will also need a "PAYG and Super" bank account.

Set up payment terms

• Customers - Immediate
• Suppliers - 30 days (min) The longer the better

Using these payment terms, by the time a supplier bill becomes due, the payment from the customer should have already been received!

How to use the Annuals Spreadsheet