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Why you should invest in a bookkeeper
Investing in a bookkeeper is one of the smartest decisions a business owner can make. While many business owners try to handle their finances themselves to save money, the truth is that managing your own books can be time-consuming, confusing and complex and may ultimately be detrimental to your long-term financial growth. Here are just a few reasons why you
five signs you are undercharging
Are you undercharging for your services? It can be hard to tell, particularly if you’re in a niche industry or you’re a contractor. Costs have been rising, so it may be time to rethink your own pricing. Here are five signs that you might be undercharging: What should you be charging? Finding your pricing sweet spot could take a little
Paid Family & Domestic Violence Leave: New Entitlement Rules
Employees of non-small business employers can now access 10 days of paid family and domestic violence leave in a 12-month period. Employees of small businesses can access the leave from 1 August 2023. Employees have had an entitlement to unpaid family and domestic violence leave (FDVL) for some time as part of the National Employment Standards (NES). But as of
New Accountability Measures Proposed for ABN Holders
Originally announced in the 2018–19 Federal Budget, and now set out in draft legislation, are newly introduced accountability measures for ABN holders. Once in effect, this will mean you will have to: Currently, there are no registration penalties for ABN holders when it comes to lodging tax returns. That is, you can continue to quote an ABN regardless of whether
Understanding Your Breakeven Point
Understanding your business breakeven point is essential to know how much money you need to make to stay in business. It can therefore help you make well-informed financial decisions and practical business plans. The breakeven point is the income or sales needed to cover all costs. Any earnings above this point generate profit. So your breakeven point tells you the
Cash is Not Profit and Vice Versa
The purpose of a business is to make money, and that means you need to know the difference between profit and cash flow. Net profit is what you have left after you deduct all your business expenses from all your revenue. You can improve net profit only by changing the things that affect revenue and expenses. For example, if: You
Christmas Parties and Presents – and Tax!
Christmas is a great time to acknowledge and reward your employees and other associates by celebrating and giving gifts. But don’t get caught out by entertainment rules! Claiming entertainment and gifts as business expenses is not always straight-forward, as there are implications for GST, income tax and fringe benefits tax (FBT). Is it Entertainment? Entertainment is generally not a deductible
Check Your Business Performance Against the ATO Small Business Benchmarks
Are you interested in comparing your business performance against the ATO Small business benchmarks? It can be a useful exercise to see whether your business is performing well, on average, or lower than the benchmark figures. Each year the ATO publishes industry-based data to highlight specific ratios of financial and other types of performance. For example, you can compare your
Create a Watertight Accounts Receivable Process
Accounts receivable is about getting paid for the work you do – in business, it doesn’t get much more important than that. The process covers every part of the payment lifecycle – finding customers, communicating expectations, billing correctly and following up on late invoices. Here’s how to build an effective accounts system in your small business: Pick the right clients
Bringing your Cashflow Processes into the Digital Age
Keeping on top of your cashflow is even more important during tough economic times. With a global slowdown on the cards, energy prices soaring and supply chain still challenges, cash is likely to be tight over the coming year and beyond. Cloud technology and fintech apps, can give your business the best possible control over its cash. Why is cashflow
