Last year’s introduction of Single Touch Payroll (STP) means that tax time this year will be a little different.
Employers are now required to report pays, taxes and superannuation information directly to the ATO each payday through STP.
Employers that do report this way will not have to give you a payment summary as they usually would at this time of year. Instead, employees will get an end-of-year income statement in ATO online services through myGov.
All employers will eventually report in this manner.
Employers that do not report to the ATO in this way will still need to provide a payment summary at the end of financial year.
Employers and BAS agents have until 14 July 2020 for 20 or more employees and 31 July 2020 for 19 and under employees to complete all STP finalisations so please give them time to work through this process. You may be eager to get your tax sorted but this year it may pay to wait.
As always, please contact us if you have any questions.
Keeping track of sales, earnings, expenses, and purchases is fundamental to the overall health and sustainability of your business. Effective bookkeeping produces the data you need to evaluate your current practices, anticipate challenges, and set attainable future goals.
But despite their proven importance, many business owners dread and avoid accounting tasks. In fact, 40% of surveyed entrepreneurs claim that bookkeeping is one the worst parts of running a business!
Wondering if it’s really worth the aggravation?
Here are four reminders of how effective bookkeeping is the cornerstone of small business success.
Keeping track of your expenses
A reliable system for tracking expenses ensures you claim all the expenses that you have incurred in your business. Expenditures sorted into categories, such as “materials”, “travel”, and “office supplies,” can be catalogued quite simply with online bookkeeping software.
Using a dedicated credit card for business expenses, and updating your records on a monthly basis, will put money back in your pocket come tax time.
Measuring profitability and planning for the future
In order to grow your business, you must be able to track and compare its finances from one year to the next.
In addition to reconciling the books and bank statements every month, effective bookkeeping generates records you can use to gain a comprehensive overview of your business. This data can help you:
- measure year over year profits;
- identify opportunities to cut costs;
- plan for major expenses (such as new office space, equipment, or staff); and
- develop data-based strategies for expansion.
Preparing for tax season
Few things are more stressful for business owners than scrambling to get poorly maintained financial records ready for tax season. In addition to the panic of lodging last-minute, inaccurate or incomplete documentation can lead to serious penalties, fines, and even an audit.
Save money and get peace of mind with sound bookkeeping. You’ll be assured of compliance with the Australian Taxation Office (ATO) and correctly claiming GST credits.
Final tip: ask for help
Most entrepreneurs are passionate about developing new business ideas – not crunching numbers. Employing a professional bookkeeper, even on a part-time or as-needed basis, can help optimise your accounting and increase overall profitability.
There’s a good reason 71% of small businesses outsource at least one accounting function to help manage tasks like payroll, closing the books each month, and managing accounts receivable.
It’s well worth it. Invest in effective bookkeeping and you’ll build a solid foundation for a resilient, forward-moving small business.
As the dust settles from another event I look back and reflect on what XeroCon meant to me.
This year there were a number of technology updates and discussions about Add ons and the benefits that they provided but for me XeroCon was about heart. Yes you heard that right and you wonder how a software company is going to show that to 3500+attendees.
Dr Gill Hicks is a survivor of the 2005 London Bombings, and she made us reflect on what is the worst that can happen! This hit home with many and you could see a tear in their eyes. In the hour that she was in the dark on that train after the bombing and how her life passed before her eyes. She told us about how survivors were comforting those that were passing during that time her attitude and sheer guts to survive. Hearing her story about humanity was an inspiration.
Mark Manson, the author of ‘The subtle art of not giving a F*ck’ opened Day 2! He told us that without suffering, there is no meaning. Without meaning, happiness is empty. How true success and happiness are based on our achievements and what we deem to be success. If we do not have to work for it or struggle for what we want are we really happy when we achieve? Suffer Better, Not Less. We will always have problems and issues it is the way we choose to handle our problems.
Trent Innes from Xero talked about how people expect the 99% but the 1% is what they remember. Clients are surprised when they receive that extra 1%. Trent also had us all post on social media about the one thing we wanted to do when we left the conference as it is easy for many to say they will do something and not follow through. #myonething was to write this blog.
A breakout session that I attended was about how to best tell our Story with Bernadette Jiwa. We all have our story as we have all gone done a different journey to reach were we are today. It is about sharing this journey with others and connecting and engaging with others.
For many a favourite session was to demand work-life balance with Sharon McClafferty. We were told a story of how a man had everything on the outside with all the success and trimmings that come with that. This success bred ignorance towards his family and eventually he lost everything. Only to find out that this story was not fictional but one from the heart as it was about her father. This emphasised to us all not to lose sight of the true purpose of what is important to you. It especially hit home for me as just a few weeks ago during an Australian Bookkeepers Network meeting, I brought up this exact topic topic as I wanted everyone there to reflect on what we are doing in our lives and if we needed to make changes for life to be more rewarding.
Steve Vamos A new way of thinking- We are now the connected age not the industrial age and that technology is being developed to act more human, and less like a machine.
Xero account managers Alicia Moreau and Lauren Wood organised for partners to get together so they could meet and share stories.The support that I saw from the account managers was much more than selling software! Hats off to my manager Alicia.
The wrap party at Cloudland was themed BrisVegas allowing us all to have fun and say goodbye to friends we had made and our conference travelling buddies. Looking around the room it allowed everyone to get to know each other on a more personal level and share their story.
Heading home after the conference was a time for reflection and and what is most important to me in my life and it is my family they mean everything to me. This is my heart!!