Simple Family Day Care Cash Book
Setting up your online cash book entries in TopFormz is easy. Before you start however you need to understand whether you will be recording an income or expense item. Income is defined as money that is received that is related to the services that you have provided or the goods that you have sold. Expenses are defined as costs incurred to run your business.
There are two methods of accounting for your income and expenses i.e. the cash book and the accrual basis of accounting. The cash book basis of accounting seems to be favoured by a number of family day care educators as it is easier to understand. Income and expense items under the cash book basis of accounting is recorded based on the date the monies were received or paid. This can easily be determined from your bank statements.
Under the accrual basis of accounting you generally record the income and expense amounts when they are due for payment or receipt and not when the monies are received.
In this blog we will be looking at recording your income and expenses on the cash book basis of accounting.
Recording My Income in the Online Cash Book
To record your income on the cash basis simply go to the List of Income in TopFormz. You can then add a cash book entry by clicking on the (+) button. Under the cash book basis the date of the transaction will be the date the monies were received.
Recording My Expenses in the Online Cash Book
To record your expenses on the cash basis simply go to the List of Expenses in TopFormz. You can then add an expense by clicking on the (+) button. Under the cash book basis the date of the transaction will be the date the monies were paid.
Sending Cash Book Reports to My Accountant
To send cash book summaries of income and expenses to your accountant or tax agent, it is best to open up your internet browser. Once you have opened up a new window please type in the TopFormz domain and login to the TopFormz – Educator Portal : https://www.topformz.com.au/
Once you have logged into the portal please select the “List of Income” or the “List of Expenses” and filter by tax year. If you do not filter on the relevant tax year then the tax records being sent will include all recorded income and expense entries recorded in TopFormz.
To filter on tax year please click on the downward arrow in the heading of the report you are exporting.
Once you have filtered on the information you can export the data. To do this please click on the 3 lines in the top right. This will then give you some options to export your cash book summary to your accountant.
I would suggest choosing the Export-Spreadsheet-PDF option. This will then summarise your cash book expenses by category. If GST is applicable these will also be shown in your cash book summary. These amounts can be used by your accountant or tax agent to lodge your BAS online. I would suggest providing these to your accountant head of the BAS statement due dates. Timelines can be discussed in more detail with your accountant or tax agent.