Bookkeepers and Business Owners! – Training you – Solving Problems – Or We do your books for you!

Bookkeeping – Train, Troubleshoot or we do the books for you! MYOB Reckon Xero & Set Up

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Cash flow Tips – Focus on Key KPI to impact growth – How we help our clients

Cash flow Tips – Focus on Key KPI to impact growth – how we help our clients

Cash flow Tips – Focus on Key KPI to impact growth – how we help our clients

Account Keeping Plus has seen real-life examples of the result when you focus on Key Performance Indicators (KPIs) to impact your business growth, but coming up with which KPI numbers can seem difficult.

In fact it’s as simple as this: Start with a pool of numbers that seem as though they could be important to your overall success, then rule them out one by one until the pool is small enough to count on one hand. Those are your KPIs, or critical numbers.

Here are some ways to generate a pool of possible KPI or “right numbers”:

  • Start with your top-level financial goals and targets such as the specific numbers that define success for your company
  • Look at the things going on in your market and industry. What are the trends for the last few years? What are your customers and employees saying?
  • Look at your financial statements. Often times, the “right numbers” will include sales, gross profit and net profit from the income statement. Balance sheet numbers might include level of cash, accounts receivable, debt and equity. You may also calculate various ratios such as gross margin percent and current ratio
  • List all the vital areas of focus – customer service, marketing, sales, products and services, production and quality – then drill deeper into each of them. These may be your various departments or they may be workflow functions independent of the department
  • Don’t focus only on just financial measures. Operational numbers (i.e. web hits, turnaround time, customer satisfaction, etc.) can be especially helpful in analysing the progress toward your most important goals and growth
  • Ask yourself these two questions: What numbers do you and your people currently monitor on a regular basis? How did you choose those numbers?

Now that you have a BUNCH of numbers, start the elimination game, as here is my final piece of advice for determining the metrics you’re going to track:

  • Keep the amount of information to a handful of KPI critical numbers so your attention isn’t spread. Just because you CAN measure something doesn’t mean you SHOULD. Sometimes, Less is more. Consider also having key managers taking on some of the KPIs that relate to their area – finance, production, operations, sales, marketing, etc.

Once you’ve narrowed down your KPIs, ask yourself and the team – one more question: Are we monitoring the right numbers? Usually time will tell – it sorts out over a period – you’re not going to know your essential and critical numbers right away, and other times you’re spot on.

Finally, it is critical to create a system to organize your numbers. For this, consider starting a dashboard for all to see.

One client of ours, instead of showing the $, prefers to show Quotes and Invoices as Hours, with minimum targets monthly for each. So once we have checked all the accounts receivable is reconciled to deposits in his Xero, we run reports on the previous month total Quotes and total Invoiced. In excel I have created a template to enter this raw data, which is automatically converted to a number called hours (which is derived after financial review of the required $ per hour minimum to cover the business costs and wages and super currently).

I then post the numbers – above or below the Min. target on a white board in the office so all can see.

When targets are met they celebrate, when they aren’t they try to work out what has changed or been missed, and make changes to stop the retreat. And it’s engaging all staff, and creating a team effort! The KPIs are WORKING!

They are part of the AKPlus service he receives from us, which includes a Business Health Review of other KPIs – Sales, Gross & Net Profit, Current Ratio. See Services in the Menu, and call to ask us to send a FREE sample of how we help businesses understand the numbers, and GROW!

Need help? Not sure? Call for FREE 30min advice / strategy session today! Call 0407 361 596 Aust


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Business Finance 101 – RESC – Reportable Employer Superannuation Contributions – a Summary

Business Finance 101 – RESC – Reportable Employer Superannuation Contributions – a Summary

Business Finance 101 – RESC – Reportable Employer Superannuation Contributions – a Summary

To ensure fairness in the application of income tests and to ensure that the government assistance is consistent and fair based on gross incomes, the Federal Government requires employers to record the reportable employer superannuation contributions figures on payment summaries from the financial year 2009-10 onwards.

Reportable Employer Superannuation Contributions (RESC) are the portion of the employer contribution that the employee has influenced, for example superannuation contributions made by the employer under the terms of a salary sacrifice agreement, made in a financial year (1 July to 30 June) to a superannuation fund for an employee.

Reportable employer superannuation contributions do not include – super guarantee contributions (SG), contributions mandated by industrial agreements that the employee does not influence, or post tax member contributions.

Which types of super payments are RESC?

Legislative Employer Contributions (Super Guarantee (SG))                                 No

Refers to the federal legislation based employer contribution of 9.50% in 2015-2017 tax years currently. Known as Concessional Contributions – the employer gets a tax concession (deduction) at year end.

Group Contract Employer Contributions such as a Collective Agreement          No

Refers to agreement such as those found in awards and enterprise bargaining documents that result in all affected employees being entitled to a greater employer contribution.

Employee Personal Deductions – treated as an AFTER tax deduction                 No

The Gross Payment amount on the employee’s payment summary is not reduced by this deduction. It is also known as Non-Concessional contribution.

Additional Employer Contributions BEFORE tax                                                         Yes

These are contributions which exceed what the employer needs to contribute.  The effect is for the gross payment to the employee is lower than what it would otherwise had been. Also known as Concessional Contribution.

Employee Personal Deductions – treated as a BEFORE tax deduction                 Yes

This is known as a salary sacrifice deduction and results in the Gross Payments figure on the employee’s payment summary being reduced. Also known as Concessional Contribution.


Superannuation Guarantee Act exempt employees  YES – If employee negotiated or influenced

If the employer choose to pay superannuation for SGA exempt employees, those contributions will be reportable as RESC only if the employee has negotiated and influenced the decision of the employer.

If the employer has made the decision themselves to go ahead and pay super in the above scenarios even though they may not be required to (by award or collective agreement), then that super will not be reportable as long as the employer can substantiate that this was done for example for Administrative Simplicity and it has not been influenced by the employee.

For more information refer to ATO for Reportable Superannuation ContributionsInstructions for employers (NAT 72916)

Need help? Not sure? Call for FREE 30min advice / strategy session today! 0407 361 596 Aust

***BEFORE you BUY Ask us for a competitive software price BELOW retail – No obligation!

You also get FREE 30 min to assist in setting up your company in the software, and FREE ongoing email or phone support – no-one offers as much! Call and you also get FREE “Avoid these GST mistakes” – There’s 18 that the Tax Office see regularly – Get them right!

Email or call 0407 361 596 Australia

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MYOB – How to set up and how to report Taxable Payments Annual Report (TPAR) – and when due?

MYOB - How to set up and how to report Taxable Payments Annual Report (TPAR) – and when due?

MYOB – How to set up and how to report Taxable Payments Annual Report (TPAR) – and when due?

If you are a business in the building and construction industries, you may be wondering how to generate in MYOB a Taxable Payments Annual Report (TPAR) – and when is the due date?

Here we look at what the 1 – Australian Tax Office (ATO) requires and how to 2 – The steps to set up and generate a Taxable Payments Annual Report from Reckon/Quickbooks software.


1 – ATO Requirements

Taxable payments reporting – building and construction industry

Businesses in the building and construction industry need to report the total payments they make to each contractor for building and construction services each year.

You need to report these payments to us on the Taxable Payments Annual Report by 28 August each year.

To make it easier to complete the annual report, you may need to check the way you currently record your contractor payment information.

The information reported about payments made to building and construction contractors is used in our data matching program to detect contractors who have not either:

  • Lodged tax returns
  • Included all their income on tax returns that have been lodged.

For the latest up-to-date ATO links (they occasionally change) see our latest post on TPAR – Taxable Payments Annual Report – go HERE!


2 – MYOB – The steps to set up and generate the report are –

How to track reportable payments in AccountRight

Once you set up MYOB, you can start marking transactions as reportable including –

  • Spend Money payments made to suppliers as reportable. You can also set up a supplier so that any payments for them are automatically included in reporting.
  • Bills and Orders recorded for suppliers. Payments received against these transactions will be included in the report.

You can then generate a report that will help you complete the ATO forms, or create a report file you can lodge electronically.

Lodging your report electronically

You can lodge your report electronically, using the ATO’s Business Portal. If you haven’t already set up access to the Business Portal, you should do this so you’ll be able to lodge the report when it’s due. See the ATO website for more information.

Set the reporting preference

  1. Go to the Setup menu > Preferences. The Preferences window appears.
  2. Click the Reports & Forms tab and select the preference, I Report Taxable Payments Made to Contractors.
  3. Click OK.

When you record a Spend Money or Purchase transaction, the Reportable Payment option will appear in the transaction window. Select this option to mark the transaction as being a reportable payment.

  1. Set up suppliers to report
  2. Go to the Card File command centre and click Cards List. The Cards List window appears.
  3. Click the Supplier tab.
  4. Click the zoom arrow of the card you want to set up. The Card Information window appears.
  5. Click the Buying Details tab.
  6. Select Report Taxable Payments. In the message that appears, choose whether to report any existing transactions for the supplier for the current financial year. Note that you can later remove payments from reporting.
  7. Click OK. The Cards List window reappears. Whenever the card is selected in a Spend Money or purchase transaction, the transaction is marked as reportable by default. 

To create the taxable payments report –

  1. Go to the Purchases command centre and click Report Taxable Payments. The Taxable Payments Assistant opens.
  2. Click Next. The Company Information window appears.
  3. Enter any company information that doesn’t appear by default.
  4. Click Next. The Review window appears.
    In this window, you can click Review Your Transactions to:

Review all transactions marked as reportable

Change the reporting status of transactions.

  1. Click Next. The Create window appears.
  2. Click View Taxable Payments Report. The Taxable Payments Annual Report (Detail) report appears. You can use the report to help you complete your ATO forms, or to keep for your records.
  3. If you’re lodging the Taxable Payments Annual Report file:

        Click Create Taxable Payments File. The Save As window appears.

        Select the location to store the file and click Save.

  1. Click Finish to close the assistant.

Need help? Not sure? Call for FREE 30min advice / strategy session today!

                Call 0407 361 596 Aust and also get FREE “Avoid these GST mistakes” – There’s 18 that the Tax Office see regularly – Get them right!