Best Practice Checklist - Financials

Owned by John Nairn (Unlicensed)
Last updated: Jul 08, 2019


Some ways to streamline your financials include:


Use Readysell cash book to balance your cash at bank figures


Use Readysell general ledger for your financial reporting


If you are using cash basis GST reporting consider moving to accrued basis GST reporting. 


Cloud Payroll with KeyPay allows your employees to print their own reports and group certificates


Batch email sale invoices to customers at the end of each day


Batch email statements at end of month


Your customers know how to reprint their own invoices and statements from a website


Bank reconciliation automatically matched against the bank


Supplier payments automatically generated and transmitted to the bank Via ABA file


Weekly automatic email to customers with overdue accounts

Financials can inform you about current business issues



Aged debtors position once a week


Aged supplier balances. Compare your supplier to debtor balances to see if money coming in from customers will be sufficient go cover payments to suppliers


Profit and loss report. In particular look at trends in revenue and expenses. 


Cash at bank

Save time with financials formatting

Some accountants like to see brackets around exceptions. For example if your car loan is normally a credit, showing you owe money on your loan. Show loan's value in a bracket if the net value of the loan becomes a debit. This would mean the bank would owe you money in respect to the car loan. This is an exception so it would be shown in brackets


Some accountants just like to see all credits in brackets. 



See: http://www.accountingcoach.com/blog/use-of-parentheses

Financials can only work for you if your bookkeeper has the necessary skill and training

Well trained in Readysell financials. Unless they are properly trained bookkeepers tend to develop bad habits and may not use the system as well as possible


If possible trained in bookkeeping. 


A detail person who completes all tasks in a timely and organised manner. Financial errors or delays cost you money, perhaps a lot of money


Using profit and loss reports to track revenue and expenses. Don't wait to end of year, by then any damage is already done. Ensure your book keeper informs you about any important trends


Aware of your business information requirements. At least once a month they should report to you on accounts that are overdue, debtors vs. supplier balances, your cash position


Reporting to you when they notice exceptions that you should be considering


Make some effort to keep you with changes in tax and financial reporting requirements


Suggesting ways you can improve your financial and business processes. 




Make use of General ledger budgets

General ledger budget figures let you measure actual performance against your expectations. The general ledger figures are of not much use on their own. At some point you have to compare your general ledger results against some expected standard. The budget figures allow you to record your expected results, your business plan, in advance. Then to monitor actual performance to see if you are meeting your goals.



All well run business enterprises have a business plan and compare results against the plan. Best practice is to enter general ledger budgets, at least on a few key accounts like revenue and expenses, at the start of the year. Then every month check your results against your expectation. If the business is not performing as expected, you will have time to do something about it before the end of the year.



There are two types of Budgets being either Monthly or Daily.



Monthly budgets are manually entered or imported however the daily ones can only be imported.