Reconciled and accurate Xero files may be the difference to getting a government cash incentive or not. Or securing that needed bank loan for new equipment or overdraft extension. It also means the business reports you read are a true reflection of how the business is performing and you can make the necessary business decisions into the future or to quickly pivot the business. In short, the books have to balance! Un-reconciled business accounts is like walking on eggshells everyday.

Restaurant Bookkeepers keeps Xero file information up to date on a daily / weekly bases so the reconciliation processes are streamlined.

Here’s a brief and simple summary of some of the things quality BAS Agent bookkeepers will do to your Xero file at the end of the month or quarter. Of course we do much more than this but you get the idea!

  1. Bank reconciliations of all bank accounts with the bank statements; trading, loan, cards, leases. This is more than just ticking off a bank feed. Xero must be 100% aligned with the statements issued by the banks.
  2. Debtors and Creditors: we will check who owes you money and who you owe money to. Supplier’s balances in Xero are reconciled to the supplier statements and ledgers. Any discrepancies are investigated with suppliers and brought to your attention. Customers who have unpaid accounts will be brought to your attention.
  3. GST reconciliations are conducted against sales, purchases and other transactions for compliance and accuracy. The debtors and creditors ledgers are reconciled with the overall GST situation. Xero has an excellent GST Reconciliation Report tool that tracks BAS lodgements and if GST is reconciled. We will update the rec report with every Activity Statement lodgement so Xero aligns with the ATO records – if you can’t see this has been done in Xero you need to contact your bookkeeper or accountant to get it updated. This information affects BAS lodgements.
  4. Insurance Funding liabilities: most people will pay off the business insurance over a 12 month period. This decreasing balance should be sitting on the Balance Sheet in the Liabilities section. If it’s not – get it fixed. We reconcile this to the current date so you know how much is still owing.
  5. Payroll: each time you process a payrun, other accounts are affected. Wages are an expense to the business which reduces the Profit and Loss status. Wages are also noted in the Wages Payable account, so as each payrun leaves the bank account, the balance reverts back to nil – a good cross check!  The balances of each employee’s payroll data must align with the Chart Of Accounts in Xero. At any point in time, your payroll compliance must be accurate and a true record of what employees have received. This information affects BAS lodgements.
  6. PAYG: each payrun accrues PAYG Withholding in the Liability accounts. It increases the balance owing to the ATO that will be paid on the BAS. This needs to be reconciled across the system and the employee’s payslips so you don’t pay too little or too much. This information affects BAS lodgements.
  7. Superannuation: is another deductible business expense but also accrues as a liability. Both the expense and liability accounts need to match with the movement of funds relating to expenses.  We also check if your payments are up to date and make the necessary reporting adjustments to the ATO. This information affects the superannuation you pay to super funds and ATO compliance.
  8. Stock Takes: Some businesses will do regular stocktakes to track the current value of the stock on hand and check for theft or shrinkage. Most small cafes will do one or two stocktakes per year. Larger restaurants with significant alcohol stocks and ingredients will do stock takes at least quarterly. The stocktake values will be entered in the accounts to reflect the values.
  9. ATO Integrated Client Account (ICA) is your business account at the ATO. It is a running balance on the Balance Sheet. We will reconcile the Xero running balance with the ATO so you know how much you owe at all times. For some clients, we put this running balance in the Creditors (Payables) report so you can see it as a bill and remember to pay it.
  10. There are other background settings that are checked and updated as part of a standard Xero file reconciliation.

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Cheers and beers!
The Restaurant Bookkeepers Team.
It’s time for a fresh start in your business, contact us now 13 000 IDEAS (1300 043 327) or jump to our contact page