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Business Tax Tips – What if you consider not paying tax to the ATO and help with paying tax owed

Business Tax Tips – What if you consider not paying tax to the ATO and help with paying tax owed

What if you consider not paying tax to the ATO and help with paying tax owed

Business can be hard – do I spend money to grow such as advertise or pay the tax bill? What if you consider not paying tax to the ATO (Australian Tax Office), and how do I get help with paying tax owed?

The ATO explains –

If you don’t pay –

If you don’t pay on time:

o    interest will accrue on your tax debt

o    we’ll use any refunds to reduce your debt.

If you don’t pay, we will:

o     contact you soon after the due date

o     refer selected debts to external collection agencies for collection on our behalf

o     take stronger action against taxpayers who are unwilling to work with us to address their tax debt or repeatedly default on agreed plans.

Make sure you lodge your activity statements and tax returns on time, even if you can’t pay by the due date. You’ll avoid a penalty for failing to lodge on time and show us that you’re aware of your obligations. Read More.

Help with paying tax owed

If you can’t pay on time, we can help you.

You still need to lodge your activity statements and tax returns on time, even if you can’t pay by the due date. You’ll avoid a penalty for failing to lodge on time and show us that you’re aware of your obligations and doing your best to meet them.

If you require a payment plan, for debts:

o   $100,000 or less – set up online and automated payment plans

o   over $100,000 – phone us.

Online and automated payment plans

If you’re an individual or a sole trader with an income tax or an activity statement debt of $100,000 or less, you may be eligible to use our online services for individuals to set up a payment plan. You’ll need a myGov account linked to the ATOExternal Link.

Read more on Help options and instructions.

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!


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Business Finance 101 – Do you know – What are the Accounting Principles?

Business Finance 101 – Do you know - What are The Accounting Principles?

Do you know – What are The Accounting Principles?

In accounting (recording the monetary values of financial transactions) there are general rules and concepts developed over many decades that apply. These are called basic accounting principles and guidelines and are the groundwork on which more detailed, complicated, and legalistic accounting rules are based. In Australia. The Australian Accounting Standards Board (AASB) uses the basic accounting principles and guidelines as a basis for their own detailed and comprehensive set of accounting rules and standards.

There is a phrase “generally accepted accounting principles” (or “GAAP“) which consist of three important sets of rules: (1) basic accounting principles and guidelines, (2) detailed rules and standards issued by AASB, and (3) the generally accepted industry practices.

When a company distributes its financial statements to the owners or the public, it is required to follow generally accepted accounting principles in the preparation of those statements. Further, if a company’s shares are publicly traded, federal law requires the company’s financial statements be audited by independent public accountants. Both the company’s management and the independent accountants must certify that the financial statements and the related notes to the financial statements have been prepared in accordance with GAAP.

GAAP is useful because it attempts to standardise and regulate accounting definitions, assumptions and methods. Because of generally accepted accounting principles we are able to assume that there is consistency from year to year in the methods used to prepare a company’s financial statements. And although variations may exist, we can make reasonably confident conclusions when comparing one company to another, or comparing one company’s financial statistics to the statistics for its industry. Over the years the generally accepted accounting principles have become more complex because financial transactions have become more complex.

The Accounting Standards are split into various categories eg “Statement of Cashflows”, “Construction Contracts” etc, and a list with the most recent updates/ pronouncements for Australia can be found HERE.

Get a FREE 30 min answer to your query, 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 info@accountkeepingplus.com.au or call 0407 361 596 Australia


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Cashflow Tips – Does profit mean cash? – Do you know the difference?

Cashflow Tips – Does profit mean cash? – Do you know the difference?

Cashflow Tips – Does profit mean cash? – Do you know the difference?

I hear many clients say there is a profit in their business, then say they don’t have cash in the bank – what they often don’t realise is Profit does not mean Cash!

If you have all cash sales, profit will usually correlate closely with the bank account, depending on when banking is completed – that is you get paid immediately and bank it, and do not invoice (waiting to be paid in 7,14, 30 days etc). And you pay your expenses with cash direct from the bank, the balance should be the cash Profit.

But if you invoice clients for goods and services, the timing of when customers pay has an effect on the cash the business actually has. For example not everyone pays on time, but if they did you would have more regular cash flow, and at the start the first money coming in would only be delayed by the terms at the beginning eg 7 days, 30 days. Once those days of waiting have passed, the regular payments will mean regular flow of money to cover your expenses.

What happens if clients are late paying? Then the debtors/accounts receivable asset account on your balance sheet will grow (that is where the invoice “waits” for payment) until the client pays.

As an example, in our earlier post explaining Profit and Loss, (see HERE) we gave an example of Profit and Loss resulting in $15,000 profit.

Cashflow Tips – Does profit mean cash? – Do you know the difference?

Consider now, that you were only paid half of the sales at the end of the period (which is more close to reality – eg most pay the next month or two…in 60 days)

Sales (invoices)                                       $100,000

But only paid (actual cash)                   $50,000

Which goes to bank (in assets)

Net Left                                                       $50,000

Which sits in debtors/receivables (in assets)

NotePROFIT would be same in accounting terms,

but CASH Profit would be -$35,000 – see below

Business Cash Profit

That is – if you still had paid all your bills, you would have to find $35,000 to pay them!

This is where businesses will use credit cards or overdrafts to keep paying suppliers and the rent to stay open!

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!


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MYOB – What Reports to use for paying Super

MYOB – What Reports to use for paying Super

MYOB – What Reports to use for paying Super

Our Client has been trialing a replacement bookkeeper, who called us asking what are the best reports to use for paying the super last month?

Answer is to look in the Super folder when we did the super last month to temporarily do the books while a new bookkeeper was being advertised, see the reports we used:

1.     Superannuation Employee Advice Detail (or Summary) – is good as it allows you to see all the pay weeks/periods and the total super;

2.     Payroll Activity Summary – dated for the last month 1st to 31st, as long as no deductions are being used, the Expenses column at the Right is all super, per staff member and should match the employee totals – and will also give the TOTAL super so you can reconcile to the total on the online data you enter in your SuperStream super fund portal;

3.     Paying – The superannuation should all match, print the contribution once reconciles, for proof, and finish as per method of your chosen portal. MYOB Super is a great method Free with a Subscription, that takes less than 10 min or so to pay the super for 30 staff for one client, we assist. And the ATO Small Business Super Clearing House is great for up to 19 employees – login, fill in the amounts, get a Bpay or EFT detail to confirm and print, and pay from your banking online.

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

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

Email info@accountkeepingplus.com.au or call 0407 361 596 Australia