It’s certainly one way to get yourself out of trouble. But it doesn’t have to be like this. In this article I’ll give you some tips on how to take back time you might have wanted to spend in a different way.
How to keep your finger on the pulse of your business
There are three key things you need to do to get your preparation up to scratch for QBCC reporting purposes.
- Review your accounting system and ensure that you have your expense chart of accounts set up the right way. It is important that you have assets posted with the right account code in your system. There are also various report types that you can set up in accounting systems that will allow you to easily access the data.
- Make sure you enter your financial data every week and reconcile the ledger at least once a fortnight or monthly against your bank account.
- Review your financial position on a quarterly basis. In particular, look at the two critical areas of assets and liabilities.
Once you’ve set up your system properly and utilise the above processes, it’s easy to produce the reports and meet your QBCC reporting requirements at the click of a button. It is important though that you are consistent in your practices. Don’t let your data entry lag behind, as that’s what can trip you up to produce accurate reports.
Challenges of QBCC Financial Reporting
Many builders and tradies have asked me what to do to make QBCC reporting easier for them and not have it turn into a nightmare. My stock-standard answer usually is: systemise and streamline your business financial administration.
When you have to provide your financial information to the QBCC at set intervals, or even on an ad hoc request, you need to have financial systems in place that allow you to tap into real-time data and produce reports easily.
For example, you need to provide the QBCC with a figure for both your Maximum Revenue and your Net Tangible Assets. They are set at the following levels:
- For self-certifying category 1 (SC1) licensees, the minimum NTA is set at $12,000 for a fixed maximum revenue of $200,000.
- For self-certifying category 2 (SC2) licensees, the minimum NTA is set at $46,000 for a fixed maximum revenue of $800,000.
If you have your figures handy you can go straight to the QBCC website and use the online Calculator to work out your Maximum Revenue and Net Tangible Asset.
If you’re interested to find out how to best set up your accounting system so you can always be sure to comply with QBCC reporting requirements contact us now for a FREE Accounting System Check.
Please Note: Many of the comments in this article are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.