Sarah Medson
Company Director? You will need a Director Identification Number
What is a Director Identification Number? During 2021, the government initiated a new system that attaches a unique identifying number to an individual who is a company director. A director has one number permanently attached to them, and this is used for identification purposes for any or all companies they are a director of. From 5 April 2022, director ID
Superannuation Eligibility Changes could Impact Your Payroll
In addition to planning for the expected statutory super rate rise to 10.5%, some employers need to prepare for a significant change from July 2022. Removal of the $450 Monthly Earnings Threshold The $450 per month eligibility threshold has been removed for most workers. This means employers will need to pay the superannuation guarantee contribution (SGC) on all ordinary earnings.
Super Guarantee Rate Rises in July to 10.5%
The superannuation guarantee statutory rate has remained at 9.5% since July 2014. However, plans have been in place for some years now, to increase the rate to 12% incrementally. In July 2022, the rate will rise to 10.5%. From then on, the rate will increase by 0.5% each year until July 2025 when it will reach the legislated 12%. Prepare
Why You Should Check Supplier ABNs
Are you in the habit of checking your suppliers’ Australian Business Numbers? When you make business purchases, you should receive a valid tax invoice from the supplier to prove that your purchase is a business expense. The ABN holds certain information, including contact details, business structure and GST registration. Many business owners don’t routinely check the ABN of suppliers, resulting
What is Bank Reconciliation? Why you should be automating this process!
Good bookkeeping is all about recording and matching your financial transactions. Over the course of a usual week of trading, you’ll have a range of payments being deposited into your bank account and a host of operational expenses being withdrawn from that same account. To keep on top of this, you must match each line on your bank statement with
What’s the Difference Between PAYGI and PAYGW?
Many people new to running a business and employing people are unsure about the difference between PAYGI and PAYGW. They are not the same thing! PAYG stands for ‘pay as you go’. This is the means the ATO uses to obtain tax payments from both employees and business owners. Paying tax ‘as you go’ throughout the year means you don’t
Cash or Accrual Accounting – What’s the Difference?
There are two methods of calculating the amounts stated in business financial reports, and the difference is all in the timing. Cash reporting – income is recorded when cash is received in your bank, and expenses are recorded when money is paid out of your bank. In cash reporting, the income and expenses are reported in the financial period that
When Can You Deduct Money from an Employee’s Wages?
There are only a few situations where you can lawfully deduct money from an employee’s wages. Make sure you check what’s allowed before deducting so that it’s following the Fair Work Act. Even if the employee agrees, it’s important to ensure you’re doing the right thing because unlawful deductions can result in heavy Fair Work penalties later. When can you
Should I Focus on Profits or Cashflow?
Turning a profit is at the heart of running any successful company. But should profits be the only financial focus if you’re looking to create a stable, long-term business? Cashflow is the beating heart of your business. Cashflow is the beating heart of your business. Without an even and predictable flow of cash into the company, you can’t cover your
Are Your Business Finances in Order?
Getting your head around the basics of bookkeeping, accounting and good financial practice may not come naturally to all business owners. But the better you understand the numbers, the more control you’ll have over your business and your decision-making. To get you started, here’s a rundown of some of the main financial terms and how they apply to the financial
