December 8, 2017
Why-bookkeeping-is-important

Why bookkeeping is important

Why bookkeeping is important Organising your finances seem overwhelming but it is one of the most essential functions of any business, no matter how large or small. According to a report published by CPA Australia, the major factor behind failure of many businesses is bad management of their financial records. Here are some of the reasons why bookkeeping is important for the survival and growth of your business and why you should keep proper books: Monitor where your money is going: When you keep proper accounting records you know exactly where your money is going and how much you are spending in each area of your business. Not checking your expenses on regular basis can result in spending too much money in certain areas and not enough in others; and the end result being not having enough left over to cover those expenses that are vital to the success of […]
December 8, 2017
Setting-Goals

Setting goals for your business

Setting goals for your business As business owner, it’s important that you take the time in setting goals and measuring how you are tracking in achieving them.  Having clear, well-defined goals can help you grow your business, achieve your objectives and impact your team in a favourable way, as everyone knows the direction they are heading in. Most goal setting is done at the beginning of a financial year as it coincides with tax reporting and makes measuring progress much easier To get started Before you even begin to write down your goals, you need to know what areas your business needs to focus on and could improve in. Some tools that could help are doing a SWOT analysis – identify your business’s strengths, weaknesses, opportunities and threats, as well as Benchmarking – research similar businesses in your industry or location and compare industry averages on income, and expenses. Setting goals Setting […]
December 7, 2017
Bookkeeping-Expert

Why You Need A Bookkeeping Expert In Your Business

Why You Need A Bookkeeping Expert In Your Business The need for a bookkeeping expert in both small and medium-sized businesses is a must if they want to grow to the next level. Experts that have a good understanding of the environment in which the business operates can advise on the expenditure of funds, budgeting, planning, and forecasting of the business growth.  It helps them to offer advice and suggestions to the business owners. Unfortunately, most SMEs face financial constraints that make it difficult for them to hire and maintain experts. In this post, we’ll look at reasons that makes it mandatory for SMEs to hire bookkeeping expert. It Saves Time Bookkeeping and accounting is a complicated subject that is anchored by rules that can only be understood and implemented by experts. SMEs should hire a bookkeeping expert to help them save their valuable time keeping business records.  By partnering […]
December 8, 2016
Cyber-Crime

Top cyber security tips for business

Top cyber security tips for business It is important you keep all your business and client information secure. If your data is lost or compromised, it can be very difficult or very costly to recover. The ATO has developed these tips in consultation with the Cyber Security Working Group (CSWG), a group of tax practitioner industry groups and other industry partners, such as software developer associations, who are working with them to combat the growing threat of identity theft and cybercrime. Ensure your passwords are strong and secure Use multi-factor authentication where possible. Regularly change passwords, and do not share them. Multi-factor authentication requires users to provide multiple pieces of information to authenticate themselves – for example, a text message sent to your phone when logging into a website. As a business owner, remember: multi-factor authentication puts an additional layer of security on your accounts – it can make it harder for […]
December 1, 2016
Enjoying-your-business

Not enjoying your business? Here’s what to do about it

Not enjoying your business? Here’s what to do about it We recently came across this article on mybusiness.com.au and we wanted to share it because we often hear from business owners who go through the cycle described below. If you’re not enjoying your business, there are things you can do before deciding to pack up and sell it. According to Jacob Ohlson of PowerNET IT Solutions and Cryo he believes happiness in your business involves shaking up your management and doing what you love. “The key to success is doing what you love doing,” says Jacob on the My Business Podcast. “You can’t work crazy hours a day and just do stuff all the time and love doing it if you don’t have a passion. “I was just very lucky, in that perspective, to find something that I have a passion with and I stuck with it.” Jacob says businesses have a […]
November 21, 2016
Contractor_or_emplyee

Is A Contractor Really An Employee?

Is A Contractor Really An Employee? There are so many myths about when is a contractor really an employee? Not understanding the differences could leave you in a lot of trouble with the ATO. Here’s a short video explaining more. There are a number of key determinants as to whether an employee is a contractor. Some include: Employees generally work under the direction and control of their employer, while independent contractors exercise more personal control. Employees carry no financial risk, while contractors bear the risk of making a profit or a loss from the job. Employers are paid superannuation and leave; contractors generally aren’t. Employees get tax deducted by their employers but independent contractors pay their own PAYG and GST. Like so many aspects of employment law, contracting is something you need to know more about than the people who work for you. Although it might appear to be a tax-effective decision […]
November 17, 2016
Cashflow-Crisis

Small Business Cash Flow Crisis

Small Business Cash Flow Crisis In 2014/15, 20,018 businesses in Australia became insolvent, with inadequate cash flow being a key reason. At 30 June 2016, small business owed more than $12 billion in collectable debt, accounting for almost two-thirds of total collectable debt. Evidence shows that businesses which manage their cash flow effectively are more likely to succeed. Despite the large amount of information on cash flow management already available in the market place, it is recognised that cash flow remains a significant issue for small business. The ATO provided the following information on statistics and research: There are more than 2 million small businesses in Australia. The ATO defines a small business entity as a business with less than $2 million aggregated turnover. 96% of all Australia’s businesses are small businesses, producing over $330 billion of our nation’s total economic output. Small businesses employ 4.5 million people, almost half of […]
June 16, 2016
Not-Getting-the-Right-Advice

The Dangers of Not Getting the Right Advice

A survey recently conducted called the “The Voice of Australian Business 2016” found some interesting and concerning trends. One of those was that only 26% of businesses use professional advice to help them make better decisions and take better actions. Whilst the likelihood of doing so increases the larger the business gets, this could well be a contributing factor to the significant business failure rates in this country. According to the Australian Bureau of Statistics, more than 60 percent of small businesses cease operating within the first three years of starting. The Australian Securities and Investments Commission released a report into corporate insolvencies for 2011-2012 and they found 44 percent of businesses suffered poor strategic management, 40 percent were strangled by poor cash flow or excessive cash use and 33 percent ceased from trading losses. But this doesn’t have to be the case if you seek the right advice at […]
June 16, 2016
End-of-Financial-Year

Essential Tasks at End of Financial Year (EOFY)

End of the financial year is an important and busy time for small business owners, completing bookkeeping, tax returns and begin planning for the new financial year. Putting the hard work in each financial year can help you get your business organised and work smarter in the year ahead. Here are some essential tasks for your end of financial (EOFY) year to-do list. Record keeping and compliance Some of your yearly responsibilities as a small business owner may include: Summarising income and expenses in a profit and loss statement. Conducting a stocktake. Summarising your record of debtors and creditors. Collating records of asset purchases or expenditure on improvements to assets to calculate depreciation expense claims and for capital gains tax purposes. Completing and lodge your income tax returns. Lodging yearly reports or returns for PAYG withholding, fringe benefits tax (FBT), Goods and Services Tax (GST), and the taxable payments reporting […]
June 16, 2016
set aside tax

How do you set aside for tax?

A prevalent answer to this question is that people simply don’t. What we’ve found is that a lot of people run their business, take what they believe to be a fair – if not less than – drawing and hope that come tax time there’s enough in the end to pay the ATO. Sound familiar? Whilst this may be common practice, it doesn’t necessarily mean it’s the right way. It’s undoubtedly the easiest option but then it potentially lends itself to issues in the future. What if there isn’t enough at the end of the day to pay income tax? Just like other expenditure, income tax is something we strongly encourage people to take a more proactive approach. If we budget for purchases or advertising or business development, so too should we do the same for income tax. A safe rule of thumb would be to set aside 30% of […]