Shoeboxes for Dummies
OK - I was going to make this a Jan Somers moment and write a book, hold seminars etc. but just for you guys - this is how it works presuming you are using a computer system which allocates transaction numbers like MYOB does.
One ring binder, one entity (not each property - each entity).
One set of dividers (cardboard) marked Income, Cheques Out, Visa (whatever), BAS (if applicable)
(Invest in cheap photocopier - mine's expensive but that's another story).
Most bookkeeping programmes issue a transaction number when you enter them into your system. Rent received might be Cash Receipt (CR) 00001) so on your first rental statement at the bottom write CR1. When you make a payment for something it will issue a cheque number or a credit card transaction number. Write this on bottom of invoice i.e. Visa 1, or ANZ 1 or whatever bank you're with. These rise from bottom to top in numerical order throughout the year. In the computer programme there is somewhere to apply a job code which you can do for each property so you can get specific figures for each property if you need to.
You should have one separate ringbinder in which you keep all your bank statements, dividers for each account (I have about twelve at last count - includes credit card statements). This is where you store those bank reconciliations at 30/6 which you are supposed to do monthly but no-one ever does.
At end of year, you complete computer records and print out the books.
Lift receipts folder contents holus bolus from ringbinder and fasten with an Arnos metal fastener (stationery store) and place this with computer print out in a Marbig file box (about $5). You will do the same with statements. If there are different entities just bundle them separately and put them in the appropriate box. Box can also contain all those cheque butts, completed deposit books etc you finish with throughtout the year. Then if your accountant has a query about something in your books he/she looks at the transaction number - (hm not sure he has allocated that correctly - let's see CR428 - there it is in numerical order - magic). Hm this is a capital item not an expense - let's see - Visa 238 - ah there it is, yes as I suspected, this person is a complete idiot.) Etc etc.
Well, there you are. Of course, at back of ring binder you have that A4 protector sheet for those irritating little receipts on which you still put the entered transaction number.
And now, the photocopier. When there are amounts relating to different properties or entities you "PHOTOCOPY" it and put one in each box! If you do not have a computer system for your properties - be ashamed, be very ashamed - and immediately invest in one. Imperative if you have more than one property as it's going to get more and more complicated guys and it's easier to learn the bookkeeping with one property than when you have ten.
If you are interested in a day course - just let me know, my rates are much cheaper than Henry Kaye's