Bookkeeping for Mining Business
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Accounting and Bookkeeping for Mining Business.
We at Meru Accounting provide a thorough analysis of books of accounts to know the viability of the Mining business as well as to know the profit. The mining industry has a vivacious opportunity if the investment is made carefully.
Mining business can be a huge opportunity given the entry and exit of investments in the asset are decided at the perfect time. Analysis of books of accounts can help in clearly determining the entry and exit time of accounts.
The mining life cycle can be broken down mainly into the following stages:
- Exploration: During this stage, potential mining sites are identified and evaluated to determine their mineral resources. This involves conducting geological surveys, sampling, and drilling to determine the quality and quantity of minerals present.
- Evaluation Process: After exploration, the evaluation process begins. This involves analysing the data collected during exploration to determine the feasibility of mining at the site. The evaluation process includes economic, social, and environmental assessments to determine the viability of the project.
- Development Phase: If a mining site is deemed viable, the development phase begins. During this stage, the necessary infrastructure is constructed, such as roads, buildings, and mine shafts, and mining equipment is installed. This stage can take several years and requires significant capital investment.
- Production: Once the development phase is complete, mining operations can begin. This involves extracting minerals from the ground and processing them for sale. The production stage can last for several years or even decades, depending on the size of the mine and the amount of mineral resources available.
- Closure and Rehabilitation Stage: When the mineral resources have been exhausted or mining is no longer economically viable, the closure and rehabilitation stage begins. This involves decommissioning and dismantling infrastructure and restoring the site to its natural state as much as possible. This stage can involve significant environmental remediation efforts to minimize the impact of mining on the surrounding ecosystem.
Benefits of using bookkeeping and accounting in the mining business:
- Accurate financial records:Bookkeeping and accounting provide accurate financial records that enable mining businesses to make informed decisions about their operations. It provides insights into the company’s cash flow, revenue, and expenses, helping business owners to control their finances more effectively.
- Better cash flow management: Bookkeeping and accounting help mining businesses to manage their cash flow more effectively by tracking income and expenses. It enables business owners to identify areas where they can cut costs, reduce expenses, or improve revenue.
- Improved financial planning: With accurate financial records, mining businesses can create budgets and financial forecasts that help to guide their decision-making. This enables businesses to plan for the future and make strategic investments in their operations.
- Tax compliance: Proper bookkeeping and accounting help mining businesses to stay compliant with tax regulations. It ensures that businesses are paying the correct amount of tax and can help to prevent errors that may result in penalties or fines.
- Improved communication: Accurate financial records enable mining businesses to communicate effectively with investors, lenders, and other stakeholders. It provides transparency and helps to build trust with stakeholders.
Overall, bookkeeping and accounting are essential for mining businesses to manage their finances effectively, comply with regulations, and make informed decisions about their operations. Â
Accounting methods used in the mining industry:
- Cost accounting:Cost accounting is used to track and analyze the costs of mining operations, including labour, materials, and overhead costs. This method helps mining companies to identify areas where they can reduce costs and improve profitability.
- Depreciation: Depreciation is used to account for the decrease in value of mining assets over time. Mining companies use different depreciation methods, such as straight-line, accelerated, or depletion methods, depending on the type of asset.
- Inventory accounting: Inventory accounting is used to track and value the mining company’s inventory, including raw materials, work-in-progress, and finished products. This method helps to determine the cost of goods sold and the value of inventory on hand.
- Revenue recognition: Revenue recognition is used to determine when mining companies should recognize revenue from the sale of their products. This method is important to ensure that revenue is recognized in the correct period and that the financial statements accurately reflect the company’s performance.
- Exploration and development costs accounting: Exploration and development costs accounting is used to track the costs associated with exploring and developing mining properties. These costs are capitalized and then amortized over the life of the mine.
Overall, the accounting methods used in the mining industry are similar to those used in other industries, but with some specific considerations due to the nature of the industry. Proper accounting practices are essential to help mining companies manage their finances effectively and report their financial performance accurately to stakeholders. Â
Benefits for accounting software in mining industry:
- Improved accuracy: Accounting software reduces the risk of human error in financial reporting and record-keeping, providing greater accuracy in financial statements and reports.
- Streamlined processes: Accounting software automates many routine accounting tasks, freeing up staff time and resources for other critical business activities.
- Increased efficiency: With real-time reporting and automated processes, accounting software helps mining companies to work more efficiently and make informed decisions based on accurate and up-to-date financial data.
- Better control: Accounting software provides greater control over financial processes and access to financial data, enabling mining companies to better manage risk and identify opportunities for growth.
- Scalability: As mining companies grow and their accounting needs become more complex, accounting software can be easily scaled up to meet those needs without significant additional investment.
- Compliance: Accounting software helps mining companies to comply with financial reporting and regulatory requirements, reducing the risk of penalties and fines for non-compliance.
- Better decision-making:Accounting software provides mining companies with accurate financial data that can be used to make informed decisions about investments, cost-cutting measures, and other business strategies.
How does Meru accounting help in the mining industry?
Bookkeeping for Mining Business is a bit different as compared to other businesses. This is because of the thorough analysis of profit involved for a specific period of time. Therefore, they should always hire someone specialist for managing their books of accounts.Â
We, at Meru Accounting, provide top-class services from day-to-day bookkeeping to payroll management and payable and receivable management. Â
We indulge in proper profit evaluation before the actual work of the business starts. Then, we proceed further to the development phase with you, which involves the digging of the mine. Although no extraction resource happens in this phase, we still need to record the everyday expense of the mining. Then, the actual production or we can say the extraction starts. However, the most crucial is the last process, the rehabilitation stage where we need to make the final reclamation of the mine when we are closing it. Â
We indulge in this process with you and ensure that we do your bookkeeping and accounting very accurately and efficiently. Â
To know more about our services contact Meru Accounting today!Â
Meru Accounting provides world-class services that cater to all the needs of cloud accounting and bookkeeping of your business.
We work on the best accounting software like Xero and Quickbooks, as well as add-ons that will make sure all your work is up-to-date.
Help you with switching from your traditional software to Xero and Quickbooks.
We also manage VAT, BAS, Sales Tax and Indirect taxes for you so you are always ready at the end of the financial year.
When you choose to outsource your accounting work with us, it benefits you in the following ways:
- 1. Cost-saving
- 2. Access to skilled and experienced professionals
- 3. Better management of books of accounts
- 4. Decreased chances of errors
- 5. Improve business efficiency
- 6. De-burdens in-office employee’s dependency
- 7. Better turnaround time
We work on virtual technologies like Team Viewer, Virtual Private Network (VPN) to share and access data from your system.
You have to share your accounting software login details.
Through that, we complete all of your work and update it on the cloud, so you can have access to your data from anywhere and at any time.
Software is not a barrier for us. Due to our strong and professional accounting knowledge, we can prepare your books in almost any of the accounting software.
Our experts are always all ears to listen to your queries regarding bookkeeping and accounting or our services. You can contact us anytime by visiting: Contact Us page.
We provide our bookkeeping services at the rate of US $10 per hour. So, you only need to pay for the amount of time actual work is done.
We take certain preventive measures to secure your data, like:
- Cyberoam Firewall to prevent any kind of foreign threat.
- Dual-step authentication
- Implement anti-virus
- Limit user access so that login details are with a few people.
Meru Accounting work on some of the best accounting software’s like:
- Xero
- Quickbooks
- Netsuite
- Saasu
- Wave
- Odoo
Along with that, we also work with many add-ons like Workflow Max, Receipt Bank, Slack, TradeGecko etc., to extend your software’s capacity and improved work experience.
To book for trial, call us on our numbers or Please fill out the form here.
We have combined team of Professionals. Seniors are generally Certified Chartered Accountants. Junior Bookkeepers are having Qualifications like Bachelors of Commerce, Masters of Commerce, Masters in Business Administration in the subject of Accounts and Finance, Intermediate level Qualification of Chartered Accountancy, etc.
For information visit our work methodology page.
We prepare a checklist of information required for bookkeeping and send you at timely intervals so as to ensure that we can do bookkeeping faster.
We can provide to you once we move ahead in our interview.
We serve clients on MYOB and have expertise working in Essentials, Account Rights Plus, etc.
Yes, We are presently processing Payroll for Number of clients in US , UK and Australia and take care of complete payroll activities.
Goods and Service tax (GST) is levied on sales of all the goods and services in Australia. GST is generally chargeable at 10% of value of sales.
Business Activity Statement is a predefined form to be submitted to the Australian Tax office by all the business persons in order to report on their all the tax obligations during the period covered.
BAS is generally required to be filed quarterly by various businesses.
Yes, Owner of the business can prepare sign and lodge the tax return on his own. Its not mandatory that the Tax return needs to be signed by an EA or CPA.
No , its not mandatory that it should be prepared by only CPA or EA. It can be prepared by anyone who has PTIN.
We have Enrolled Agent who has the Authority to sign the documents for our clients after completing the through professional check.
Meru Accounting has its operational centre in India and hence the prices are quite less as compared to US based CPA’s and Enrolled Agents.
Meru Accounting has a team of Tax experts. Each Tax expert prepares around 300-400 Tax returns every year for various CPA’s in United States and Individual Businesses like yours. Due to this vast Experience and Robust Quality Check processes in place we can ensure you about correct Tax planning for your firm.
