Recording Purchases

Whilst you are busy being hands on out on the job, we would like to think that people are contacting you, be it via email, online through your website or via phone.

This means that your accounting site must be a nonstop efficient system, working away in the background with quotes being prepared, invoices being generated, sales processing, payments being received and recorded and purchases being recorded. For this to happen, you do not have to be a 24hr a day genius.

You simply need to enlist the services of Tradie Bookkeeping Services. If your trade business included the sale of stock items, then these items shall need to be recorded. Your purchases for your trade business need to be recorded. Purchase is the cost of buying inventory for the purpose of sale. It’s a kind of expense and must be included in your income statement with cost of goods sold.

As not only bookkeepers but also trade orientated experts in the accounting side, Tradie Bookkeeping Services are able to differentiate between different types of purchases and record them appropriately. Some purchases are capitalized as recognised assets of your business entity. Some are expensed in your income statement.

All purchases must be accounted for as they impact both by increasing expenses and decreasing assets. Expenses must be debited and assets credited. Often this can be confusing and sometimes it is difficult to pinpoint the exact point when a purchase actually occurs: is it when goods are dispatched by the supplier, when you receive your goods or when you pay the supplier.

If this is as clear as mud, you need us, the Tradie Bookkeeping Specialists.