Getting Your Books Right – Why Uploading Bank Statements Is Only the First Step

We know bookkeeping isn’t everyone’s favourite job. Between running the farm, managing staff, and keeping everything ticking along, sitting down to “do the books” can feel like a chore.
But here’s the thing – just uploading your bank statements or ticking off income and expenses in Xero or MYOB is only half the story.

If your books are missing invoices, receipts, or proper coding, it can make life harder for everyone – you, us, and even the tax office. Getting it right from the start means fewer queries from us, faster BAS prep, and fewer surprises when it’s time to lodge.

Let’s break down the most common areas we see people getting stuck, and how to tidy them up for smoother sailing all year round.

1. Bank Reconciliation Basics – It’s More Than Just Matching

When you’re reconciling, the goal isn’t just to make the numbers turn green – it’s to make sure each transaction actually reflects what happened.

• Match it properly: If it’s an invoice or bill, match it directly rather than creating a new “Spend” or “Receive Money”.
• Transfers: If you move money between accounts, use the Transfer option in Xero – not an expense or income line.
• Duplicates: If something looks like it’s doubled up, don’t guess. Flag it for your bookkeeper, or ask us – we can show you how to clean it up the right way.

Daily or weekly reconciliation keeps your books live and accurate, which means better information for you – not just at tax time, but when you’re making business decisions throughout the year.

2. Coding and Bank Rules – Setting Up for Success

Your Chart of Accounts is basically the “map” that tells your software where to put everything. When you allocate a transaction to “Fuel”, “Repairs”, or “Fertiliser”, that’s where it ends up on your reports.

If things get coded to the wrong spot – like repairs going to plant purchases or loan repayments coded as expenses – your figures can look off, which can affect your BAS and even your profit.

Tip:
Use bank rules for regular payments like Telstra bills or software subscriptions. These automatically code transactions each time, saving you clicks and keeping things consistent. Just make sure you review them now and then in case amounts or suppliers change.

3. GST and BAS – Getting the Codes Right

A quick refresher on what’s taxable and what’s not:

• GST (10%) – Applies to most goods and services.
• GST-Free (0%) – For things like exports, some medical services, and basic foods.
• BAS Excluded – For payments like wages, loan repayments, and bank fees.

Mixing up these codes can cause headaches later. For example, if wages are accidentally marked GST-Free instead of BAS Excluded, your BAS will report incorrect figures – and that can trigger ATO questions nobody wants.

If you’re unsure, don’t guess. Ask your bookkeeper, or drop us a note – we’d much rather help you early than fix it later.

4. Attaching Receipts – The Game-Changer

Here’s where things really smooth out.

When you attach receipts and invoices directly to transactions in Xero Files, Hubdoc, or Dext, it does two big things:

1. It helps us verify your expenses quickly (less back-and-forth emails asking “What was this for?”).
2. It gives you peace of mind if the ATO ever asks for proof – everything’s already there.

How to make it easier:

• Use your mobile app – just snap the receipt on the spot and upload it straight to Xero or MYOB.
• For regular bills, you can even forward them from your email straight into your file inbox.

Once you start doing this, your bookkeeping suddenly becomes a whole lot faster and cleaner.

5. Keep It Consistent – Naming and Tagging

When you upload files, name them clearly – for example:
“Fuel_July_2025_CBPump.pdf” or “Invoice_1042_SmithMachinery.pdf.”

It sounds small, but clear names mean less time hunting later. It’s also a lifesaver during reviews or audits when we need to pull up specific documents fast.

If you use tracking categories (like “Cropping”, “Sheep”, or “Workshop”), keep those consistent too – it makes reporting much more meaningful.

6. Payroll – Getting the Details Right

For those running payroll, make sure:

• Your pay categories are set up correctly for allowances and leave.
• You’re lodging through Single Touch Payroll (STP) after each pay run.
• Super and leave are reconciling with what’s on the Balance Sheet.

These details keep you compliant and make year-end reports a breeze. If you’re not sure whether your setup’s right, we can do a quick payroll check-up to make sure everything’s running smoothly.

The Takeaway: Do It Once, Do It Right

The goal isn’t to turn you into an accountant – it’s to help you run your books in a way that makes sense and saves time in the long run.

By:

• Reconciling properly,
• Attaching receipts,
• Using clear codes,
• And keeping your GST and payroll clean 

You’ll spend less time chasing paperwork and more time running the business you love.

If you’re tired of the “What was this payment for?” emails – start attaching those invoices. Your future self (and your accountant) will thank you for it.

Keep Your Eyes Peeled

Over the coming weeks, we’ll also be sharing a new “Mastering Xero/MYOB Made Simple” series on our social media channels – packed with practical tips and tricks for using Xero and MYOB more confidently.

If you’ve ever wondered “Am I doing this right?”, this series is for you.

So keep an eye on our Facebook and Instagram pages – or drop us a message if there’s a specific topic you’d love us to cover. 

Get in Touch

You can reach us over at www.smithshearer.com.au. To get in touch with us directly, simply call us on (08)9071 2173 or email admin@smithshearer.com.au – we’d love to hear from you!