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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Business Tax Tips – What is Single Touch Payroll (STP) Reporting

Business Tax Tips – What is Single Touch Payroll (STP) Reporting

What is Single Touch Payroll (STP) Reporting

STP – Single Touch Payroll – means the software sends the pay-run details as well as the super due, as an amount that is total (year-to-date) as at each pay-run, to the ATO. It means Payment Summaries will not be required at Year End – the ATO will have all they need already, by the last pay-run that is recorded in June!

Preparing

  • Businesses with 20+ employees MUST be ready by 1 July 2018 – the software is due to be ready in June 2018
  • Businesses with 19 or LESS employees – must start next year 1 July 2019 – but you CAN opt-in to start 1 July 2018 if you choose!

Support  –

1.   ATO STP info site www.ato.gov.au/stp. – and their Fact sheet – From the ATO siteWe have produced the following summary factsheet as a handy resource: Single Touch Payroll factsheet (PDF 228KB) This link will download a file

Single Touch Payroll (STP) aligns your reporting obligations to your payroll processes.

You will report to us each time you pay your employees. Your pay cycle does not need to change. You can continue to pay your employees weekly, fortnightly or monthly.

The information you send us will include your employees’ salaries and wages, allowances, deductions (for example, workplace giving) and other payments, pay as you go (PAYG) withholding and superannuation information.

2.     Update to the latest version as it arrives – The software will notify us when the STP features are ready – I suspect we may just use the ABN to identify with the ATO – and/or an AUSKEY – they haven’t specified how yet

3.     Software that is ready https://www.absia.asn.au/page/product-catalogue

4.     Consulting – Paul will be available for either – onsite – or remote login with Teamviewer in June, as the features are available, if you need help setting up.

5.     Next weeks – STP and MYOB, Xero, Reckon – keep informed: subscribe to the right software

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

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

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Business Finance 101– 5 End of Financial Year tax tips 2018

Business Finance 101– 5 End of Financial Year tax tips 2018

5 End of Financial Year tax tips 2018

Time to plan for a good finish for EOFY and here are 5 tips to get started and prepare for 30 June.

1. Consider the ideal timing for asset sales

If you are thinking of selling a profitable asset this financial year, but are likely to earn a lower income in the next year, it may be worth postponing the sale until after 30 June, as the sale is income, less the original cost. However, if you expect an income windfall from 1 July, it may be worth bringing the sale forward. As always, your decisions depend on your expectations for future asset prices, so don’t postpone a sale for tax purposes if you are expecting your investment to fall in value!

2. Pre-pay investment loan interest 

If you have (or are considering establishing) a geared investment portfolio, you can pre-pay 12 months’ interest on your investment loan and claim the cost as a tax deduction in the current financial year.  This can assist to manage cashflow more efficiently, and potentially reduce your income tax liability this financial year.

3. Pre-pay income protection premiums 

If you are employed or self-employed, income protection insurance provides peace of mind about the security of your income in the event you are unable to work due to illness or injury. Premiums for this insurance are generally tax deductible; prepaying your annual premium prior to 30 June will allow you to claim a full year of cover in advance as a tax deduction.

4. Review your debtors and creditors

Review your accounts receivable / trade debtors – who is taking the longest to pay – is debt-collection failing – consider if it is simplest to write off (reverse) the sale and move on with more Profitable clients and prospects. Likewise – who do you owe? Can you pay them by end of year to tidy up your accounts – or if you are struggling – can you negotiate longer terms to keep things open with suppliers and keep the relationship going?

5. Offset capital gains with capital losses 

Generally, if you have incurred capital losses on your investments, you are able to offset these capital losses against any capital gains you have made. You can also use losses you have carried forward from previous years. Remember, income losses can only be offset against income; capital losses can only be offset against capital gains.

DOWNLOAD a FREE “Bookkeeping Quarter Checklist” to get organised! CLICK HERE

Or ask a question – Email info@accountkeepingplus.com.au or call 0407 361 596 Australia


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Case Study – Let down by accountant and then a bookkeeper – They needed the books up to date and accurate!

Case Study – Let down by accountant and then a bookkeeper - They needed the books up to date and accurate!

Case Study – Let down by accountant and then a bookkeeper – They needed the books up to date and accurate!

Disappointment was clear when she told me how let down she felt of the promises by an accountant to have the books and year-end tax return all handled  but the accounts were months behind! Then she appointed a bookkeeper who was a little new to the Xero software, but the bookkeeper still had the main Bank and Merchant payments with unreconciled transactions dating back 8 months to July!!! And communication with both was frustrating!

She needed a plan of action!

(There are 5 easy steps to planning anything – start where you are at, decide what outcome/state you want to have, what that state/position will cost in money (budget to maintain) what you need to outlay set-up and get to that state, and what action we need to take now to get there.)

WHERE it was at –

She had set up the bank feed, and started to learn how to do the entries in the Xero accounts. But it was slow learning this new software, and she wasn’t sure if she was entering the transactions correctly. The expenses she paid personally, were entered, but they came out of the business bank account – was that correct? The customer payments were simple. To keep up to date with who had paid, she entered them also, but some paid by direct transfer, others by EFT and she didn’t realise only the TOTAL for the day settled to the business bank account.

When we reviewed the company file, the bank  had half the transactions with notes “What is this for?” since back in July 8 months ago!!! The customer payments to the bank didn’t match many deposits, as the Square Credit Card Merchant takes its % fee out before on-sending the balance – so the software can’t match them! There was a family loan to the business to assist with taking on a new shared office with another professional. Most of all, like many small business owners, she didn’t know how much the books can help her improve the business, nor how powerful a One-Page Business Plan and quarterly checklist for the accounts can be!

WANT to have –

She was sure the books could be up to date every month. And communication could be responsive and helpful – YES!

COST to have that state – 

A monthly cost would need to be paid, as she was not enjoying the books, and wanted to do what she knew best – her service and products! She wanted to know if it could be done for $100 based on her current small business

NEED to spend to get there –

Getting it back on track was the key – what would it cost, and what would need to be done?

NOW what action to take –

After meeting Paul Humphreys of Account Keeping Plus, at a local council event 6 months ago, luckily she had kept his card (it stood out because it came with a chocolate attached!). He was easy to talk to and helpful – I’ll give him a call and see what he is like.

Well after several tips on ways to promote my business and market online, he explained how monitoring a few key indicators is so important to know where the business is going and if it’s achieving the goals I set. He explained how the different payments arrived in the bank and the need for clearing accounts and loan accounts for the family loan.

We arranged to meet, and I was given a complimentary Business Score –and later he emailed me the results that gave me a Business Plan On a Page – it really got me focused on the weak points!

He is now getting me up to date – finally! What a relief!

Need help? Not sure?

Call for FREE 30min advice / strategy session today!

0407 361 596 Aust– No obligation!

You also get FREE 30 min to assess the setup of your company in the software,

DOWNLOAD a FREEBookkeeping Quarter Checklist” to get organised! CLICK HERE

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


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Cashflow Tips – 5 tips to get more from your accounts/bookkeeper – or how to be a better bookkeeper

Cashflow Tips - 5 tips to get more from your accounts/bookkeeper – or how to be a better bookkeeper

Cashflow Tips – 5 tips to get more from your accounts/bookkeeper – or how to be a better bookkeeper

Do I have the most suitable software for the business needs? Should I upgrade to the next level or another brand? We can help you for FREE – call for a chat!

  1. Expenses we can reduce? What areas of expenses have increased, and are there better deals to reduce costs?
  2. What areas/products of sales are growing? Can we see a trend in products or categories that are underperforming? What about the best performers – should we focus on building them more?
  3. Checklist of the bookkeeping tasks so we don’t forget? Do you have a checklist – there can be at least 10 and more tasks each week/month – invoicing, paying suppliers, payroll, super, Workcover, collating customer payments, reconcile bank statements, reconcile credit cards, petty cash – if you want a template to track the main bookkeeping tasks, call or email info@accountkeepingplus.com.au 
  4. Better Reports for more insight? What other reports does the software offer? I find that exploring other reports and seeing what customization is possible can reveal new reports and insights that help make better decisions!

DOWNLOAD a FREE “Bookkeeping Quarter Checklist” to get organised! CLICK HERE

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

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