Bookkeeping & Accounts for New GPs
As a new Australian GP from the UK, the month of July officially means its end of the financial year, and time to get your accounting socks on to file your quarterly GST Business activity statement, and end of year filings.
In this post I’d like to share with you my method of book/record keeping.
First I have a cloud synchronized shared folder, you can set one up using Google Drive or Dropbox.
Every business related expense I have (including the ones I’m not sure about), I take photographs of and place in a Expenses Todo folder.
Every invoice I get from my practice, I store in another Income Todo folder.
I tried using apps such as Office Lens and Google Lens to take perfect scans of my receipts, but in the end I found that just taking a snap at a good enough angle is easiest to do.
If you’re using a cloud based service such as Google Drive, Dropbox, or Microsoft OneDrive, their apps can automatically sync photographs taken on your phone to your shared folder. Every now and then (usually once a month) I audit my photographs and move any expenses receipt into the Expenses Todo folder.
Every couple of months or on request, I log all my invoices and receipts onto a Spreadsheet. I find that Google Docs is easiest to use as my spreadsheets can be accessed from anywhere and can be exported to formats which are compatible with other apps.
Once my book keeping is done, I run all my expenses past my accountant who validates any expenses I am unsure about.
My spreadsheet is broken into multiple pages, and I use a seperate spreadsheet for each return.
The first page of my spreadsheet consists of the income breakdown, how much I charged, how much my practice charged me, and the GSTs of these.
The second page of my spreadsheet consists of $AUD expenses made during the period. Noting, the total expense, how much of that expense was GST, how much it was stamp duty, and which category does the expense belong to. This helps myself and my accountant figure out how much of the expense is to be claimed.
For example, my car related expenses are worked out using the car log book method, which means only the work related usage % of the car calculated, can be used from the full expense.
For the car log book, I used the official myATO app’s personal deductions section to log my work related journeys (note: excluding any trips to my regular place of work) for a period of 12 weeks. This way I was able at the end of the period to determine my work related percentage use of the car, and use this for car related expense calculations.
If you’d like a copy of the Book Keeping Template I just described, please drop in your email address below.
Any questions, feel free to ask :)