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Business owners are well aware of the significance of filing a Business Activity Statement (BAS). Unlike individual taxpayers who only deal with income tax, businesses registered for Goods and Services Tax (GST) face a more complex process. They must regularly lodge a BAS, responsible for reporting and paying various business taxes, including GST and Pay As You Go (PAYG) instalments. Navigating BAS lodgement can be intricate, and errors are not uncommon. To ensure a smooth online lodgement process, it's crucial to steer clear of these common pitfalls: Lodging your BAS is an important part of your business and with this guide, you can check to ensure that you have not made any of the mistakes that often occur. Conversely, if completing a BAS is still seeming like a burden, reaching out to a registered BAS Agent may be the best decision for you. You can easily book a consultation session with us right here to have a chat about your BAS or any of your financial needs! #bookkeepingblog

Accounting practises and bookkeeping may just seem like obligatory tasks that simply need to be ticked off the to-do list, however, there are genuine benefits that arise from properly carrying out these responsibilities. Monitor changes and trends Bookkeeping periodically will help you to stay on track with your accounts and allow you to access an overview of the transactions coming in and out of your business. It is often best to bookkeeping on a monthly basis in order to allow for a more detailed analysis of any changes and trends that your business is experiencing. A monthly reflection on your business’s strengths and weaknesses is often an overlooked task that can be very powerful. This is because, whilst remaining consistent with your bookkeeping schedule is important, being consistent with your business strategy may often be ineffective. Analysing the trends in your business and determining which aspects are popular amongst customers can help you find where to divert your resources and whether you need to find other services to offer. However, accessing a concise and clear overview of your business’ performance can only be retrieved from quality bookkeeping. As a result, it is essential that you bookkeep in order to be able to analyse how your business performed in the previous month and to determine what resources are being effectively utilised. Creating a new monthly budget Reflecting on previous performance is important, however, it is also critical to plan for the future and make some estimations for your business. Budgeting can often be pushed to the side or ‘done’ mentally with a quick guess of expected performance. However, this is not sufficient and it is often most effective to sit down and designate a time to really consider the small details of your business in the near future. Having long-term goals are great for a business and by breaking them down into smaller steps that are achieved periodically, it is more likely that you will be able to make the necessary changes in an appropriate time-frame to reach these aspirations. Therefore, a monthly budget is a great place to start as a month is not too long of a period but enough to make substantial change. By accurately bookkeeping, you will be able to see how your business spends on certain projects and what type of transactions are being made. This will allow you to get a clearer overview of your business’ financial position which will help you to more accurately plan for a new monthly budget. In this budget you can set out some short-term goals that you want to achieve in the next 30 days and better estimate what type of expenses you will come across. Furthermore, over time you will be able to track out the overall trend of expenditure and income across the year, allowing you to predict which months you are likely to generate more revenue and which months may be a bit quieter. Keep tabs on your cash flow Maintaining records for your transactions can get messy. Loose receipts and partial payments can quickly build up and begin to not make any more sense. Dedicating time to ensure that your invoices are accounted for is the best way to prevent major stress during the tax season. Additionally, staying informed on all of your transactions will also help to sift out any suspicious activity. As technology advances, there are growing amounts of cybersecurity breaches such as fraudulent credit card charges. Not keeping a close eye on these charges can lead to an accumulation of counterfeit withdrawals of thousands of dollars. This can be detrimental to your business and this is why bookkeeping is a beneficial task that can help to ensure none of these charges pass by you. How to bookkeep While reading all of the benefits of bookkeeping can inspire you to start, actually carrying out this task may take some time. Accounting and bookkeeping is a skill that you can learn and with more and more online software available, bookkeeping is becoming more accessible to a larger range of people. You can find out more about the online accounting software Xero here and also read our breakdown of exactly what this program is here. Finding out more about the Essentials for effective bookkeeping can also help you start, but if you’re not about numbers and accounting, it may be helpful for you to outsource a bookkeeper. This will allow you to reap all of the benefits from bookkeeping without having to do all of the hard work and you can book a consultation to speak to us about your accounting needs right here. #bookkeepingblog

Bookkeeping lies at the heart of a thriving business. It isn't merely a legal requirement; it serves as a potent tool for monitoring your business's progress and uncovering potential areas for improvement. However, the true power of this financial reporting and tracking lies in its accuracy and effectiveness. To empower you with the best bookkeeping practices, we've curated a comprehensive checklist of essentials. Discover how these fundamentals can elevate the accounting and bookkeeping facets of your business while ensuring compliance with the BAS Agent Portal. Keep a copy of your invoices It is essential that you keep a copy of all of your invoices when purchasing goods and when providing them to others. This will help keep a nice and clear record of your transactions when they are needed and provide invaluable evidence of purchases or sales. You should also take particular note of cash invoices. With the reliance on immediate records being made when we purchase things with a card, we often forget the need to request a receipt when making a cash purchase. As a result, cash records are often lost when it comes to bookkeeping. Additionally, as we begin to use cards for larger purchases and leave cash payments for smaller transactions, it is often believed that these invoices will be insignificant. However, the accumulation of these small purchases can often make a significant difference when aggregated at the end of the period. Thus, it is important that you request a copy of your invoices, placing particular care when making cash payments. Don’t leave it for the last minute Accounting is definitely not an easy task that can be done overnight. Firstly, it is important that you designate time to periodically carry out bookkeeping tasks. It can often be helpful to bookkeep at the end of the month in order to budget for the upcoming month and ensure that you are on track to achieve the goals and objectives that you have set out for your business. Bookkeeping monthly will also help to prevent a frantic rush to complete your accounting and bookkeeping obligations just before they are due. Additionally, inconsistent and infrequent accounting practices will prevent you and your business from accessing all of the benefits that are available from effective bookkeeping. Therefore, regular bookkeeping will help you budget better for your business’s future and help prevent any stress at the end of the financial year. Use an accounting system that works for you There is a growing variety of accounting software that is now available to choose from in order to carry out your bookkeeping needs. Whilst they are all ultimately designed to carry out the same task, there are slight nuances between different programs. Each person has different preferences, so it is important that you experiment with the range of options available to find which will best suit you and your business requirements. Once you find your favourite bookkeeping software, it is likely that you will be more willing to carry out your bookkeeping obligations and it may help to reduce the occurrences of small, administrative errors. As a result, your business is likely to bookkeep to a higher degree of accuracy and thus better enjoy the many benefits of effective accounting records. Find a professional bookkeeper We are able to provide you with an endless amount of tips and tricks to ensure that you can bookkeep to the best of your ability, however for some, accounting and bookkeeping is simply something that is not for them. This is no problem at all. You can easily ditch all of the hard work associated with bookkeeping and pass it on to a professional bookkeeper. With an abundance of experience, professional bookkeepers can help ensure that there are minimal errors associated with your accounting records whilst you can focus on the performance of your business without all of the technical reporting that is required for effective bookkeeping. Bookkeeping effectively can be a difficult task, however, with the guidance of the above advice, you can begin to access a better record of your finances and unlock the variety of benefits that come from keeping concise accounting records. If you're looking for some extra help, simply book a consultation session with us now! #bookkeepingblog

In our rapidly advancing technological landscape, the realm of bookkeeping is undergoing a profound transformation. Recent times have witnessed the emergence of a plethora of online accounting software solutions, catering to businesses of all sizes, from small enterprises to individuals. This shift is rendering the traditional image of accounting—dominated by mountains of paperwork and invoices—obsolete. However, it's essential to understand the capabilities of these modern bookkeeping and accounting programs. Enter Xero, a rising star in the realm of client bookkeeping solutions and free bookkeeping software for small businesses. If you're new to the world of online accounting, let us introduce you to its potential. Xero’s History Xero was established in New Zealand in 2006 but has expanded its offices all across the world, working from countries such as Australia, the UK and the United States. It now has over 2 million users from over 180 countries around the world. Its program gives subscribers the ability to track and pay their bills, claim expenses, accept payments, pay employees and prepare their BAS. Additionally, the use of an online bookkeeping program allows customers can easily access reports for their business expenses and income. Xero will automatically track any finances and provide an organised grouping of documents, bills, receipts and contracts. This allows customers to easily access any old files in one convenient location. Furthermore, Xero is able to track inventory, giving business owners a quick view of their products and deciding which are in need of a reorder. Learning with Xero Whilst Xero’s powerful features can be highly beneficial to a small business and provide a more concise approach to bookkeeping, accounting and bookkeeping can be an overwhelming task that often gets stressful once the financial year comes to an end. This is why Xero is also a program that is catered for accountants and bookkeepers. Both accountants and bookkeepers are able to work with their clients to help small business owners with their finances to ensure that they are up to date and comply with accounting standards. This allows business owners to still have control over their accounts with some guidance for a smooth process. Bookkeeper or Online Learning? Learning about new bookkeeping jargon and developing skills within an online accounting software can often be tedious and difficult, however, Xero attempts to make this process as comfortable as possible. Employing video tutorials and walk-through examples, Xero provides its subscribers with information on how to excel on their software and to reap maximal benefits from their program. These resources are targeted for small business owners who have no bookkeeping experience nor a background in accounting as well as professional accountants and bookkeepers who are looking to further their skills. Despite these helpful resources, accounting and bookkeeping may continue to be a foreign expertise that is just simply not for you. If that is the case, outsourcing a bookkeeper may be the best option for your business. This allows you to delegate some of your accounting obligations to a professional bookkeeper or even give free reign to your bookkeeper to manage your stressful finances. If you would like to read further on outsourcing a bookkeeper you can read our previous blog post Why outsourcing bookkeeping services can help your business. Another consideration of Xero is that it is a subscription-based service. They offer a variety of services at different price points, allowing you to choose which option is best suited for you and your accounting needs. With a 30-day free trial, Xero is a program that you may want to give a try or you can book a consultation with us right here. #bookkeepingblog

Embarking on the journey of starting a small business is a thrilling and potentially highly rewarding decision. After exploring our initial insights in 'Top Tips and Ideas for Launching Your Startup for Small Business Success (Part One),' we're excited to continue offering valuable recommendations for your startup venture. Discover key insights and actionable advice as you delve deeper into the essential aspects of starting a business in this continuation. Who will you work with? Behind every successful business, there is a busy team working hard. Finding loyal team members will be a crucial part of building a strong foundation for your small business. A reliable and consistent group of employees will help you to resolve the inevitable difficulties that you will face. However, with a well-selected team, these issues will pass and go by as another feat that you have overcome together. It is important to choose a group of people that will offer a range of qualities, delegating specific tasks to individuals to allow your business to put forth the best of the best products or services. Another important factor to consider is how you will separate yourself from the employees as a manager. How will your personal and professional lives differentiate, and how will you work together? Whilst it is important to establish boundaries, some small businesses often experiment with a collaborative and authoritative management style before deciding which one to use. Building a successful team is a critical part of your small business journey and finding the right people as soon as possible will allow for more time to develop a relationship to understand each other’s preferences and working styles. However, it is also important to know that this process should not be rushed and that your first choices may not always be the right fit. It is sometimes essential to make difficult decisions for the health of your small business. Budget Monthly Small businesses often believe that being a smaller firm, they do not need to budget as they can manage their invoices. This is a dangerous mindset and can lead to a lack of proactivity as the business grows. By establishing a clear schedule for a monthly budget, you will be able to better manage your business expenses and income. This will allow you to better track performance, help to predict growth for the future and find points of strength and weakness within your business. The most effective way to budget is to analyse your performance and finances at the end of the month, establish your goals for the upcoming month and see how you can allocate resources in order to best achieve your goals. However, this begins with an accurate and concise record of your financial statements, known as bookkeeping. This is a mandated task and can often become confusing. As many small business owners do not have a strong background in accounting, they often outsource a bookkeeper to maintain precise records, you can find more information on our blog Why outsourcing bookkeeping services can help your business. How can you be reached? Generating exposure for your small business is essential for its success. With word-of-mouth recommendations shown to be the most effective and trusted form of advertisement, it is important that you facilitate the transformation of a potential client becoming a loyal customer. As endorsements from a friend are often followed up by a quick Google search, you must ensure that you have an online presence that will allow for your business to be found easily. With a greater reliance on retrieving information from online sources, it is often beneficial for small businesses to establish a website or Facebook page that can advertise their services. This also provides businesses with the opportunity to be found by others and expand their clientele. Overall, it is important that you provide an available space where potential customers are able to find out about your business, what your point of difference is and how they can get in contact with you. Whilst the journey of establishing a new small business can be daunting, there are so many exciting opportunities that can arise from this decision. With careful planning and consideration of the factors expressed in this blog and the previous blog, you can be on track to starting your new small business. If you think you are ready, start registering for a business now! #bookkeepingblog

Today, there's a myriad of business structures available, from partnerships to corporate entities. Yet, the allure of pursuing one's passion and becoming one's own boss is driving more individuals towards entrepreneurship. A business startup is an exhilarating endeavour, filled with opportunities and challenges. It demands careful consideration and decision-making from the outset. Establishing sound practices early on is crucial in building a sturdy foundation for your venture's success, ensuring sustainable and manageable growth. Hence, we've put together a two-part series highlighting essential aspects to consider when embarking on your journey to start a business. Who is currently in the market? As creativity permeates throughout our modern world, it is often difficult to find a new market to sell new goods. Consequently, a majority of new small businesses will enter an established market with existing competitors. Whilst this may seem intimidating, a new business often has the advantage of having the ability to offer a ‘point of difference’. By highlighting how you will differ and stand out against the rest of the competitors, you have a higher chance of eliciting interest in your business and pulling in new customers. However, in order to do this, it is essential that you analyse your market carefully. You must consider who are the competing firms, what they offer, what are their ‘points of difference’, what are they lacking and how influential are they amongst your target customers. It is also essential to analyse your target audience; what do they want that they do not already have, how loyal are they to the current business that they are engaged with and how can you reach out to them? By anticipating how your competitors and customers will react to your entrance to the market, you are more likely to respond in a more appropriate and effective way, establishing yourself as a business that is going to stay for the long run. What is a ‘point of difference’? Let’s divulge further into this ‘point of difference’. What is it really and why is it so important? When arriving at the chip aisle at the supermarket, we are often faced with a difficult decision: Which packet of chips should we buy? More often than not, we make these everyday decisions almost instantly, however, it is important to consider our thoughts up until our point of decision. There are often many factors that influence our choice, this may be price, packet design, size, flavour options or even placement on the shelves. These are all components that companies have taken into account in order to make their product stand-out, also known as a ‘point of difference’. By having a strong point of difference, your business will be able to have a stronger pull in comparison to other competing businesses and allow you interest a greater range of customers in the market. Thus, by breaking down your everyday decisions and considering how you make your quick-reflex choices, you can begin to understand how a typical customer is likely to react when coming across your product. Explore ideas on how you can quickly attract a potential consumer and how you can separate yourself from the sea of competitors. In focussing on your point of difference and advertising this attribute to your customers, your business is likely to generate interest and demand, placing you in a comfortable starting position. How will you manage your finances? It can often be tempting to dive right into the heart of your business and focus solely on how you are going to better your product or service. However, there are a range of other considerations that need to be made when establishing a business. For a majority of entrepreneurs, they do not have a background in accounting and are mainly interested in pursuing their specific passion through their business. This is where a bookkeeper can come in to help you out. With an abundance of professional skills and experience, they are able to help your business with bookkeeping and provide you with benefits that you can find on our blog post Why outsourcing bookkeeping services can help your business. It is critical that you are able to manage the financial aspects of your business in order to perform well. This will allow for accurate budgeting and help you pinpoint any difficulties as well as positives that are associated with your small business. Starting a small business is an ambitious decision that is becoming more accessible to a range of people. If you are planning to take advantage of this entrepreneurial boom, take into consideration the above factors and keep an eye out for our second set of recommendations to ensure that you kickstart your dream business in the best possible way. #bookkeepingblog

With a plethora of tasks and deadlines on your plate, managing tedious financial tasks and obligations is the last thing that you want to be dealing with. However, by outsourcing bookkeeping services you will be able to take a sigh of relief knowing that the financial aspects of your business are taken care of, allowing you to focus on providing the services that you best excel in. Bookkeeping is an essential part of a successful business and it is crucial that it is carried out accurately in order to reap its full benefits. Outsourcing a professional bookkeeper can help you further your business by unlocking these advantages. Forecasting Budgets Preparing a monthly budget is a great way to manage finances and reduce the probability of coming across shock expenses. When planning your next budget, it is often most effective to analyse your budget for the current month and consider your long-term financial goals. Bookkeeping will help to keep track of all of your expenses and income, allowing you to see a clearer snapshot of how your business is progressing financially. With this information, you will be able to draw more reliable predictions for your business’s financial position and how to budget for the upcoming month. With a sound budget, you will have the ability to manage your finances more effectively, track your progress as a business and designate useful resources towards the best-suited projects. Legal Compliance The abundance of regulations and laws that are placed on keeping financial records can often be overwhelming, especially for those who do not have a background in accounting and finance. The Australian Taxation Office outlines the required standards for all of this. With accounting standards teeming with jargon, outsourcing bookkeepers are highly recommended as they have the professional knowledge and skills to effectively manage and record financial statements. This ensures that your business is safe from accidental breaches of legal regulations that often occur when business owners attempt to bookkeep themselves. Professional Opinion Once you have access to a concise recollection of your expenses, the data can often be indecipherable and analysing it may seem impossible. However, by outsourcing a bookkeeper, you will have access to a professional opinion who has come across a variety of different businesses and overseen their performance. As a result, these bookkeepers are often able to catch the subtle signs of unfavourable business behaviour that would slip by an ordinary business owner. Additionally, an outsourced bookkeeper is able to provide your business with an unbiased third opinion that can help you make decisions to improve your business’s financial and overall performance. Saving Essential Time It is no secret that bookkeeping is a long and taxing process that takes away significant time from the management of the actual business. Particularly without the help of a professional bookkeeper, preparing financial statements can become a burdensome task. This periodic job can be easily taken off your hands by outsourcing a bookkeeper, easing your stress, especially when you approach the dreaded tax season. Instead, you can use your crucial time to truly focus on your goals as a business and finally be prepared when tax time arrives. Whilst bookkeeping can often be overwhelming and confusing, these difficulties can be resolved by outsourcing a bookkeeper. This decision can be easily carried out and help to create long-term benefits for the health of your business and you can get a quote for free through this link! #bookkeepingblog

With the end of financial year approaching, you will want to ensure that the tax-return process for your business goes as smoothly as possible. It’s a time that many business owners come to dread. However, with some changes to the way you approach tax time – it does not have to be the nightmare you imagined. Here are some of the most common mistakes to avoid. 1. Not keeping accounts up to date The end of financial year can become much harder than necessary if you don’t keep your accounts up to date. First of all, it is time consuming to go through and check a backlog of accounts. Furthermore, it can also have a negative effect on the clarity and consistency of the information provided to support your financial statements. In addition, failure to monitor incoming and outgoing cash flow within a certain period can leave you without vital funds needed for your business obligations. Utilisation of accounting software assists businesses in keeping records and accounts organised and up to date. If you are not using them already, they are something you should consider. 2. Writing off bad debt prematurely Quite often business owners will choose to write off their bad debt towards the end of the financial year. This is sometimes done with the aim of recovering the goods and services tax (GST) and to reduce income tax for that year. While this may be the right move once a debt becomes impossible to collect – in many cases – businesses draw the line too early on bad debts. There could still be ways to collect that money. One possibility is to try a collection agency. It may seem like the customer has disappeared, but a good collection company can often find them. Use of a private investigator is another option. If you are to employ a collection agency – the quicker you do it, the better. Rates increase for older debts as it is usually harder to locate the client or to retrieve the debt, the longer you wait. 3. Not keeping regular contact with your bookkeeper or accountant For business owners who are not experienced in accounting, employing a bookkeeper to keep their financial records and accounts in check, is especially important. Check out our article Do I need a bookkeeper? It could be hiring one internally, however, if you own a small business it is probably a better idea to outsource to a bookkeeping company. The overall cost will be lower. A bookkeeper ensures that you are kept up to date on crucial tax or accounting changes. They also provide you with a deeper insight into your current financial position. A common mistake that business owners make is they only contact the bookkeeper at the end of financial year – once their records are already a mess. To save yourself the time and struggle, it is better to employ a bookkeeper or accountant throughout the year. Understanding your current financial position means you can more accurately plan ahead for financial growth. 4. Inadequate record keeping If you’re going to pay money for bookkeeping services, it’s essential that you find someone with the required experience to handle your needs. Don’t outsource you bookkeeping to the cheapest service you can find and then be surprised when the records lack detail or supporting information. This can create huge problems for business owners. If you overestimate your profit for a certain period, you will be needlessly paying more tax. At the same time, underestimating your profits can lead to an audit and potential fines. Small errors will snowball over time if they are not stopped in their tracks. Reconciliation is a great example. If you don’t regularly reconcile your records with your bank statements, your finances will likely suffer significant damage in the long term. Make sure to take action early so that you save yourself an unnecessary headache at the end of financial year. 5. Lack of training on accounting software functionality Accounting software has made the life of both clients and their bookkeepers easier than ever. This software automatically updates a businesses financial records as they occur throughout the year. Programs such as Xero can track things such as payroll, key expenditure, inventory, invoices, or even PAYG and GST payments. Utilising these programs means businesses spend a lot less time and money on handling their financial records. Furthermore, their accountants will have more time to focus their roles as business advisors too.

Single Touch Payroll (STP) is a system that works by sending tax information from your accounting software or STP-enabled payroll to the Australian Tax Office (ATO). What kind of business requires the use of Single Touch Payroll? STP was initially introduced in the Budget Savings (Omnibus) Act 2016. All employers with a number of equal to or greater than 20 employees were required to start reporting from July 1st, 2018. More recently, new legislation has passed requiring small businesses with less than 20 employees from Jul 1st, 2019 to also report through STP. How does it work? Your STP-enabled software will create reports that get sent to the ATO. This includes information like your employees’ salaries and wages, pay as you go (PAYG) withholding, super liability information, amongst other payments. You can also include other withholding payments of your choice in your STP reports. They are not mandatory, but STP allows you to streamline your reporting rather than spreading it out over multiple reports. Examples of payments you can include are reportable fringe benefit amount (RFBA) or reportable superannuation contributions (RESC) for your employees. If you do this by July 14th in the next financial year – you will not be required to submit a payment summary annual report, covering these amounts, to the Commissioner of Taxation How can I prepare? Employers with less than 20 employers If you are a small business owner with less than 20 employees, there are a number of options for you to get ready and report through STP: If you are currently using payroll software, you can also use it to report if it is STP-enabled. If not, talk to your software provider and find out what other options are available. If you do not currently have payroll software, look for one that offers STP reporting Hire a professional such as a BAS or tax agent to report through STP on your behalf Employers with 1-4 employees If you are a micro business with 4 or less employees and are not already using payroll software, there are alternative ways to report through STP: Choose a low priced/ no cost program from the governments STP product register. Think about what product best matches your specific business needs. You may be eligible for quarterly reporting concession. You just have to find a tax or BAS agent who is willing to report quarterly on your behalf. What is concessional reporting and am I eligible? There are several concessional reporting options available to help businesses transition to Single Touch Payroll. Eligibility differs for each one and depends on individual circumstances. If you are an employer with 1-4 employees you are considered a ‘micro employer’ and have the option of reporting through your registered BAS or tax agent on a quarterly basis until June 30th, 2021. If you choose to go with this option, you must find an agent to lodge the STP report on your behalf through an STP-enabled software. Eligibility To be eligible for the quarterly concession: You must have between 1-4 employees on the day of your application Have non-automated payroll – This includes manual payroll systems with hard copies of every record. Process your activity statements electronically via a registered tax or BAS agent. All amounts owed to the ATO are either subject to a payment plan or not yet due. All lodgement requirements are either subject to deferral or not yet due. If your employee numbers increase after having your application for the concession accepted, you will still be eligible to report quarterly until June 30th, 2021. How does it affect closely held employees? If you are a small business with fewer than 20 employees, you are able to report your closely held payee information quarterly. No application is required for this exemption. Eligibility A closely held employee is someone who is directly related to the entity that they receive payments from. These are people such as directors, shareholders, trust beneficiaries, or family members of a family business. If your business only has closely held employees, you do not need to begin STP reporting until July 1st, 2020. Payments included in quarterly report for closely held employees You will be required to make a reasonable estimate of the total amount paid to your closely held employees each quarter. This estimate amount can be calculated though: Withdrawals taken by the employee – these do not include dividend payments or payments which reduce the total liabilities owed to the closely held employee by the business. Vary the amount of the previous year, taking trading conditions into account, within 15 % of the overall directors or salary fees for the current financial year. Calculate 25% of the total salary or directors’ fees from the year of the last lodged tax return of the closely held employee Reports for employees who you report for each pay day are lodged separately to the quarterly reports for closely held employees. If, however, you are also eligible for quarterly reporting on your non-closely held employees, you can report for all your employees in a single report. All STP reports will also include the total amount of pay as you go (PAYG) withholding payments for the quarter and your total gross wages. Due dates for quarterly STP reporting If you are eligible for quarterly reporting, you will need to send your STP report once every quarter for your employees at the same time you lodge your activity statement. If you would like to report on a more frequent basis, there are also options available such as monthly reporting. If you’re still not sure whether you need to be using single touch payroll, reach out to an expert here and we can determine your obligation. #bookkeeping #singletouchpayroll

Every day, all around the world, a huge number of people throw themselves into the entrepreneurial world. Business owners spend hours refining their business plans, budgets, and cash flow – yet many will not survive the first year. Even if you make it past the first year – over 60 percent of small businesses fail within the first three years of their operation – according to the Australian Bureau of statistics. This is why it’s essential you handle your cash flow and budgeting accordingly, to give your businesses the best chance of survival. Below, we’ve compiled some cash flow and budgeting tips that you can start using immediately. 5 Cashflow and budgeting tips for small businesses Monitoring of profit margins Accurate tracking of your profit and loss gives you invaluable insight into whether your current pricing plan is effective or whether you need to review your current structure. Job management software such as Tradify or AroFlo allows you to monitor your materials, labour and expenses directly against jobs. They also provide reports on the overall job cost and how much profit you are making per job. Many of these programs also integrate with automatic accounting systems like Xero, Quickbooks and MYOB. This means you are able to reconcile all invoices and outgoing bills in your account system, saving you the hassle of double entry. Analyse your cash outflow There are many ways you can reduce your outgoing costs. Instead of replacing your capital equipment, fix it. Regular maintenance of your equipment will save you money in the long term. If something is broken beyond repair, look for used equipment in good condition. You could also look to form a buying cooperative. Look for other like-minded small businesses willing to pile their cash together and bargain for lower prices from suppliers. They usually give discounts to firms who buy in bulk. Remember to maintain a good, friendly relationship with your suppliers as you will have a better chance of finding better long-term deals with them. These are just a few things you can think about. Ultimately, you want to analyse the quality of your spending. What are you getting back from the money you spend? Do you need to be spending as much as you are? Make sure your customers pay you on time This may sound obvious but send your invoices on time. In most cases, the sooner you invoice your customers, the sooner they will pay you. You could also utilise the invoice function in programs such as Xero or Quickbooks which sends your customers automatic payment reminders. Most of them include one click payment options, making it easier for the customer to pay you. If a customer is regularly not paying you on time without good reason, replace them at the first opportunity. Have a Back-up plan It’s likely that at some point, you will need to use emergency cash for your business. With the current coronavirus pandemic, more and more businesses are beginning to face this reality. Of course, the first step is to have an emergency fund. When possible, put aside money into an account that you only access in case of an emergency. For many small businesses, however, you may not have this luxury. Another good way to prepare yourself for these situations is by staying on top of your business credit score. A good credit score means you are more likely to get good terms on a business loan. A business credit card can boost your credit standing whilst also giving you an emergency source of funding. Focus on your Return on Investment (ROI) For every single investment you make in your business, you should be considering the return you’ll get. ROI is therefore one of the most important metrics for small businesses. When money is tight, focus on proven high ROI marketing methods. E-mail marketing & social media advertising tend to have the best ROI when compared to any other marketing tactic. It focuses on keeping existing customers and turning them into long-term, loyal buyers. These methods boost profits a lot more than just acquiring new customers. There will be times when you have some extra cash and want to experiment with some new marketing methods. The ROI may not be as high, but they are effective in building your brand and attracting potential customers. Key Takeaways It’s certainly a hard time to be a small business owner, but the opportunities are there. Plan and budget accordingly. Start looking at how you can utilise the online world. Always be improvising. Whatever you do, you’ll need to create a solid foundation and this all begins with efficient handling of your budgeting and cashflow. #bookkeeping #budgeting #cashflow

As part of a $130bn support package in response to the COVID-19 pandemic, the Australian government has introduced a new JobKeeper payment. If your business has been affected, you will be able to access a subsidy to help with payment of your employees. While there is no legislation officially released, we do our best to breakdown what the JobKeeper payment could mean for you. How much can I get? The government plans to pay eligible employers a sum of $1,500 per fortnight for each eligible worker. This works out to roughly 70% of the national median wage and $400 more per fortnight than the updated jobseeker payment. Am I eligible? To receive the new JobKeeper payment, both the employer and employee must meet the required eligibility criteria. Big banks which are subject to the banking levy are not eligible. To be an eligible employer, you must be a business (including sole traders, companies, partnerships and trusts), not-for-profit organisation or charity that: Has a turnover of less than $1bn and have lost 30% or more of your revenue compared to the same period last year Has a turnover of greater than $1bn and have lost at least 50% of their revenue compared to same period last year. To be an eligible employee: You are currently employed by an eligible employer, which includes those who were stood down or re-hired. You were employed by an eligible employer at March 1st, 2020. You were a sole trader, long-term casual, part-time, or full-time employee employed on a regular basis for longer than 1 year as at March 1st, 2020. You are at least 16 years of age. You are an Australian citizen, hold a permanent visa, a protected special category visa, a non-protected special category visa who has been an Australian resident for at least 10 years, or a New Zealander on a special category (subclass 444) visa. You are not receiving jobseeker payment from another employer The government estimates that this payment will be received by around 6 million workers. How will I be paid? If you are an eligible employer, you will be paid $1,500 per fortnight for each eligible employee starting from March 30th, 2020 – for a maximum of 6 months. If you are an eligible employee, you will receive a minimum of $1,500 before tax per fortnight. Employers are able to top up these payments at their discretion. They will pay employees as usual and receive monthly instalments, as arrears, from the Australian tax office. Will I still receive $1,500 if I usually earn less? The rules state that employees must be paid a minimum of $1,500 per fortnight, before tax – even if they were earning less than $1,500 per fortnight, before tax. Therefore, with the new JobKeeper payment, it is possible for part-time or long-term casual workers to earn more than their regular pay. What if I was laid off or stood down? If you have been stood down as an employee, the employer must continue to pay you at a minimum of $1,500 per fortnight, before tax. This means if you have stopped working due to restrictions on businesses – such as cafes, restaurants, theatres and other public venues – you will continue to be paid. Additionally, if you began employment at March 1st, 2020, subsequently ceased employment, and were re-hired by the same employer, you will also receive a minimum of $1,500 per fortnight, before tax. This will encourage businesses to re-hire workers that they were forced to lay off. When will I be able to receive the first JobKeeper payment? The subsidy will commence on March 30th, 2020 with employers expected to receive the first payment in the first week of May. Until then, employers are required to continue paying their employees. The amount can then be claimed back as part of the first payment. How does this affect superannuation? Employers will have to continue to pay superannuation guarantee on regular wages. It is their choice, however, whether to pay superannuation on any excess amount resulting from the JobKeeper payment. What this means is that a worker who ordinarily receives $1,200 per fortnight along with superannuation; will receive the first $1,500 payment with superannuation paid on the first $1,200. It is then up to the employer if it is paid on the last $300. Can I receive the JobKeeper and other payments at the same time? A person who receives the JobKeeper payment is not eligible to also receive the jobseeker payment. If you already applied for jobseeker, you could withdraw the application and shift to JobKeeper payments if you are re-hired by your employer. Lastly, you cannot be in receipt of JobKeeper payments from multiple employers. You can see our other blog posts regarding COVID-19 here, but for the most up to date information, please regularly check back to the Australian Taxation Office’s COVID-19 page.

If you are the owner of a small business in the Victoria state – you can find information below on available financial support. Overview The Victorian government announced a Business Support Fund worth $500 million to help small businesses survive the economic effects of the coronavirus. How much am I entitled to? A grant of up to $10,000 per business will be available. Am I eligible? To be eligible for the grant, you must meet the following criteria: You Employ staff You have a turnover greater than $75,000 You have a payroll of no more than $650, 000 You held an Australian Business Number (ABN) which was valid at March 16th, 2020(The date the state of emergency was declared) You were engaged in carrying out operation of the business in the Victoria state on March 16th, 2020. Have been subject to closure or is highly impacted by Non-Essential Activity Directions issued by the Deputy Chief Health Officer to-date. For more information on affected sectors refer to https://www.dhhs.vic.gov.au/sites/default/files/documents/202003/Non-Essential-Activity-Directions-No-2.pdf If your business is not employing people, you can still potentially receive support through the Commonwealth Governments Job Seeker payment program. How can I make use of these funds? Here are some examples of what you can use fund on: Covering business costs such as utilities, rent and salaries Financial, legal or other advice to help with business continuity planning To develop the business in terms of marketing and communication activities Other activities that help to support the operation of the business. Proof of eligibility and compliance You must confirm in writing that you meet the above eligibility criteria You will be subject to an audit by the Victorian Government or its representatives. This involves providing evidence in financial reports to demonstrate the impact of the fund. You will be required to do this for 4 years after the grant has been approved. Any false information found in the application or not applying the grant for the stated purposes will result in the grant becoming repayable by demand. How do I apply? If you are interested in receiving the grant – you can submit an application online via: https://businessvic.secure.force.com/PublicForm?id=bsf2020#no-back-button You must provide a copy of your most recent Business Activity Statement (BAS) along with any other supporting material. Further Information Applications will be available from March 30th, 2020 and close on June 1st, 2020. Not-for-profit organisations can also apply for the grant, provided they meet the eligibility criteria. The Victorian Governments package compliments the economic response of the Commonwealth Government. The package also provides: Full payroll tax refunds and waivers for the 2019/20 financial year to any business with a payroll of below $3 million. Removal of liquor licensing fees for 2020. Land tax deferral for any landowner that has one or more non-residential properties and total taxable landholdings of below $1 million. Commercial tenants in government buildings will receive rent holiday for the remainder of 2020. You can see our other blog posts regarding COVID-19 here, but for the most up to date information, please regularly check back to the Australian Taxation Office’s COVID-19 page.