Managing Financial Operations 2 Developing Financial Systems and Procedures Managing Financial Operations 2

Transaction Recording Every Sale and purchase is a financial transaction and must be recorded in your accounting system. Cash Register or POS Systems for recording Sales. Journal entries done manually or electronically. Purchases are entered directly into the accounting system.

Some common Procedures to ensure transactions are recorded correctly include: Triplicate Docket system One dedicated cashier per shift. PLU POS system rather than a generic cash register. Use of purchase order system. No PO no processing. Checking systems to allow for the discovery of errors. Double entry accounting.

Checking and Reconciliation Process A reconciliation is the balancing of different forms of the same information. Bank reconciliation Restaurant casher’s summary form. Accounts Payable (Trade Creditors) Invoices Statements Credit notes Accounts receivable (Trade Debtors)

Cash Management Security 2 people to transport Float system Reconcile cash register at end of each shift Remove cash from registers during extreme busy periods. All cash transactions must be supported by invoice or sales documentation. Supplier payments should not be made from the till. Ensure there is a paper trial. Petty Cash System. Cash should be banked daily. Bank accounts reconciled regularly. (Recommend Weekly)

Banking Procedures Individual Cashier reports checked. Combine cash for bank deposit and prepare Bank Deposit Slip. Transporting Money to or from the Bank. Use direct route to bank. Carry Money in normal bag. Vary the time of day for going to the bank. Separation of duties: ! Person prepares and another actually takes it to the bank. Two staff to transport money when ever possible. Consider Security Service

Revenue System Separate details of revenue producing areas. Food Breakfast Lunch Dinner Beverage

GST and Tax Requirements GST Goods and Services Tax PAYG Withholding Tax Company Tax Fringe Benefits Tax Land Tax

Statutory Requirements Specific to Business Structures Sole Trader Own Name No need for registering Name Business Name Must be registered ABN, GST Registration, PAYGW registration (ATO) Partnership Needs ABN and submits Tax return but does not pay tax as profits are distributed to partners. Companies Separate Legal entity Registered with Australian Securities and Investments Corporation. Company Tax return with own ABN and TFN

Companies Private (Proprietor Limited)PTY LTD Public Companies (Ltd) Limited number of Shareholders Not Listed on Stock Exchange Large and Small Proprietor Companies Public Companies (Ltd) Shares listed on Stock exchange Unlimited number of Shareholders Annual reports made public.

Stock Control Stock records Stock taking Stock movement records Stock reconciliation Standard recipes.