Chat with us, powered by LiveChat
Welcome to Nudge Accounting, We have over 80+ years of expertise in accounting and bookkeeping services.
Online Bookkeeping & Accounting Services Nudge Accounting

Suite 139/243 Pyrmont Street, Pyrmont NSW 2009

Mon - Fri 9.00 AM - 6.00 PM (AEST)

Saturday, Sunday Closed

Tax Tips Tuesday – What are PAYG Instalments?

Tax tips, accounting, PAYG Instalments, bookkeeping, small business, nudge accounting, startupsPay As You Go Instalments (PAYG Instalments) is the Australian Tax Office’s way of making us prepay our income tax during the year. This means that when you lodge your Income Tax Return for your small business, any PAYG Instalments paid during the year will be a credit against the Income Tax calculated.

So, although no one likes to pay tax, PAYG Instalments helps avoid or reduce the lumpy tax payments at year end. Generally, this is paid through the Business Activity Statements each quarter and the ATO gives two options to calculate how much to pay:

  • PAYG Instalment Amount (this is a fixed dollar amount they provide)
  • PAYG Instalment Method (this is a % that you apply to business or investment income)

Registration for PAYG Instalments will be triggered once the ATO sees your income tax return includes business or investment income (eg dividends, interest, partnership or trust distributions) and, if you are a sole trader, when your income from these sources is more than $4,000. Continue reading “Tax Tips Tuesday – What are PAYG Instalments?”

Tax Tip Tuesday: GST and Small Business Cashflow

Tax tips, accounting, GST, bookkeeping, small business, nudge accounting, startupsMost small business are required to pay GST on a quarterly basis. A problem we see a number of small businesses encounter, particularly startups, is that cashflow can been a little tight when the end of the quarter comes around.

An important issue to remember is that when charging customers, the additional 10% invoiced as GST shouldn’t be considered as income or money coming in. The reason is that it will end up being paid to the ATO at the end of the quarter. This is easy to forget, particularly when decisions need to be made about paying yourself or making investments for the business and you look at your bank balance to see what you can spend.

To assist in dealing with this cashflow issue at the end of the quarter, some small businesses put the 10% aside into a separate bank account as soon as the income is received. By doing this, the funds are kept away from the general bank account.

At the end of the quarter, when the BAS is prepared, it is very likely that the GST put aside may be too much because it doesn’t account for the GST refundable on the expenses incurred. So rather being short on cash at the end of the quarter there would actually be a little extra, which has been saved in the separate account. This system works well with a number of small businesses and startups.

Other times, we see business who receive monthly performance summaries as part of a Nudge package look at what they owe the ATO at the end of each month and set that money aside.

Either way, these businesses are planning for the future by managing GST as part of their small business cashflow.

This Tax Tips Tuesday is brought to you with love by Nudge Accounting.

Tax Tips Tuesday – What is the 80 20 rule?

Tax tips, accounting, 80 20 rule, bookkeeping, small business, nudge accounting, startups

The 80 20 rule is something that we often get asked about by contractors and business owners? So what is it and where will you see it in business?

The 80 20 rule is one of several tests that fall under the ATO’s Personal Services Income provisions relating to income received by consultants and contractors. Personal Services Income is where the majority of the income is generated for the skills, knowledge, expertise or efforts of the person who performed the service.

Irrespective of what structure you operate under, if Personal Services Income applies in your situation, your deductions will be limited and income generated by you will be attributable solely to you, not your business. This means any perceived tax advantages associated with creating a corporate structure may be redundant under these rules.

So where does the 80 20 rule come into play? One of the ways in which the ATO determines whether you fall under the Personal Services Income rules is by looking at several tests. The 80 20 rule is one of these tests that looks at whether 80% or more of your income comes from one source (including related parties). If it does, then the Personal Services Income rules will apply which will require additional considerations when doing completing your Income Tax Return. If it doesn’t, than the Personal services Income rules will not apply and income will be considered business income.

This Tax Tips Tuesday is brought to you with love by Nudge Accounting.

Tax Tips Tuesday – Do you have to pay super?

Tax tips, accounting, pay super, bookkeeping, small business, nudge accounting, startups

Do you have to pay super in your business? We go through the key requirements that business owners have to meet around superannuation for employees and contractors. The key steps to understand are as follows:

1. Relevant employees

(a) Full-time, part-time and casual employees
When it comes to superannuation contributions, you are required to pay contributions for employees if they are aged 18 years + and if they earn at least $450 or more in gross wages in a month.

b) Contractors
A common mistake we see businesses make is that they assume that they are not required to make superannuation payments for contractors. If an individual is paid mainly for their labour for hours worked under a contract, then you will have to pay super for them, irrespective of whether they are a contractor or an employee.

2. How much superannuation do you need to pay?

The current rate of superannuation is 9.5%

This rate of superannuation must be applied to the Ordinary Time earnings of your employees. This includes payment for your employees’ ordinary hours and whilst it includes commissions and performance based bonuses, allowances and shift-loadings; it does not include overtime payments.

3. When is superannuation due?

Superannuation guarantee contribution payments for your team need to be paid by the 28th day of the month following end-of-quarter. i.e. for the June quarter, payment of superannuation payments is due 28th July.

This Tax Tips Tuesday is brought to you with love by Nudge Accounting.

Tax Tips Tuesday – Home office deductions

Tax tips, accounting, home office deduction, bookkeeping, small business, nudge accounting, startupsMost if not all small business owners understandably say they work from home and want to claim home office deductions. So with this being the case, we have covered off some of the areas where small business owner may be able to claim a tax deduction for occupancy and/or running expenses.

  • Occupancy expenses are expenses incurred in keeping or maintaining the premises and includes things like; rent, mortgage interest, rates, land taxes and house insurance premiums.
  • Running expenses as those incurred in running the small business like; phone rental and business calls, internet fees, depreciation of office furniture and equipment and any additional heating, cooling, lighting and cleaning expenses.

First thing to make sure of is whether or not the home is a place of business and if an area has been set aside exclusively for business activities. If the home is a place of business and an area has been set aside exclusively for business activities, then a portion of both running and occupancy expenses can be claimed as a home office deduction.

Unfortunately if someone just does some work at home but have a business premises somewhere else as well, they cannot claim a deduction for Occupancy expenses.

The downside of claiming occupancy costs means that if the home owner ends up selling their home, they may need to pay capital gains tax upon sale on the portion that was business related. This really needs to be considered when claiming a deduction for Occupancy Costs.

Also a small business owner who derives Personal Services Income cannot claim Occupancy Costs.

This Tax Tips Tuesday is brought to you with love by Nudge Accounting.

Tax Tips Tuesday – Registering for GST?

Tax tips, accounting, gst, bookkeeping, small business, nudge accounting, startups

Knowing when to register for GST is something that all startup businesses should be aware of. GST stands for Goods and Services Tax which is a consumer tax of 10% that is applied to most supplies of goods and services in Australia. You can read more about it here.

So when do you need to register for GST?

  1. You must register for GST if you are running a business and your turnover is $75,000 or more ($150,000 or more for non-profit organisations). Registration is optional if your turnover is below this threshold.
  2. Calculating ‘GST turnover’ is essentially your gross business income excluding GST for either the 12 months to the current month (current turnover) or the 12 months starting with the current month (projected turnover).
  3. So if you start a business and you have projected that you will earn more than $75,000 in the first year of operation, then you should register for GST

The ATO requires you to have an Australian business number (ABN) so your business can be part of the GST system. Often, they can be obtained as part of the same registration at the Australian Business Register.

This Tax Tips Tuesday is brought to you with love by Nudge Accounting.

Tax Tips Tuesday – Increase in superannuation rate

Tax tips, accounting, bookkeeping, small business, nudge accounting, startups, superannuation rate

On 1 July 2014, the superannuation rate for employees increased from 9.25% to 9.5%. Superannuation contributions form a key component of the pay that eligible employees receive as part of their normal salary and wages. You can read more about superannuation and eligibility of employees for superannuation here.

What impact does this superannuation rate increase have when running the payroll for your small business:

  1. If an employee receives a payroll package of say $50,000 including superannuation, more of this package will go to superannuation and employees will receive less cash in hand as part of their ongoing pay.
  2. If you are paying casual staff members, the superannuation rate increase will probably mean you are paying your staff members more each month as they are generally paid on an hourly basis plus superannuation.
  3. If you pay your employees fortnightly and the first pay day is 4 July 2014, you might be wondering if you need to use two different calculations for superannuation. According to the ATO, you only need to do one calculation and this would be using the new 9.5% superannuation rate.
  4. And don’t forget that superannuation is due by the latest 28 days after the end of each quarter.

Tax Tips Tuesdays is brought to you with love from Nudge Accounting.

Do you need a small business bookkeeper?

Small business, accounting, tax, small business bookkeeper

Finding a small business bookkeeper is one of the most important decisions you can make in the management of your business. Why? They are helping you record and understand the financial performance of your business. We have written previously about what a bookkeeper does and the difference between a bookkeeper and accountant and you can find this information here. So what are some things that you should look out for when getting a small business bookkeeper:

1. Is your small business bookkeeper qualified?

It might seem a bit strange, but many small business bookkeepers do not have the necessary qualifications to do your bookkeeping effectively. Some things that you should look for are TAFE or industry qualifications, as well as ensuring that they are registered BAS Agents. Bookkeepers should be registered BAS agents if they help you calculate your GST or payroll liabilities. This pretty much means all small business bookkeepers. If they don’t have these qualifications, are you really getting a bookkeeper that can help you manage your small business finances?

2. Do they know how to use your accounting software?

Many small business bookkeepers advertise that they can use all types of accounting software. But this doesn’t mean they are experts in them. Always ask your bookkeeper what accounting software that they use the most? And if your choice of accounting software doesn’t fit into the top two, it might be best to look elsewhere.

At Nudge, we use only two types of accounting software, Xero and MYOB Essentials. Find out more we we use this software here. It ensures that we know exactly how they work and what you can do to make the most out of them.

3. If your bookkeeper can’t answer your question, who will?

As you deal with your bookkeeper a lot more frequently than your accountant, who do they turn to if they can’t answer your question. And what happens if they don’t know how to treat an accounting issue as they don’t have the knowledge or expertise? Does this mean that your numbers don’t make sense until you next see your accountant. Make sure that you know who to turn to if your bookkeeper doesn’t have the answers so you have up to date numbers in your business.

4. How do I avoid these issues?

Nudge does all the bookkeeping, accounting and tax for small businesses and startups. What this means is that you don’t need to worry about quality issues with your bookkeeper, as we have qualified accountants doing the bookkeeping for your small business. Using Nudge means you have up to date numbers you can have confidence in, plus we can answer all your accounting and tax questions as well.

Online Accounting-1

Dynamic Online Accounting

Evolution, progression and growth are inevitable factors in the majority of industries. Technological advancements and leaps into the realm of the unknown have become a trend in today’s era, speculating whether or not our progressive minds might just be a tad too much. Traditionally, regarding the accounting world, an individual would pack their suitcase fill it up with a year’s worth of paperwork and spill them in front of the accountant so they could action it over a longer period of time. However, our adept thinking in concordance with the flourishment and uprising of the internet, have lead us to new and versatile ways of accounting. New accounting. Fast accounting!

First and foremost, online accounting is engulfed and executed by online accounting software. Something that not only boosts the speed of accounting procedures, yet also provides a user-friendly environment for both the understanding of the client and the efficiency of the accountants. Following this, one thing we always need and seek with our accounting, security. Security is key when dealing with financial statements and matters. With an array of security certificates embedded in online accounting, one can never go wrong in choosing online accounting. Safer, faster and more accurate accounting!

Invoicing, payroll management and cash-flow can all be measured and grasped in numbers and ease with online accounting. These factors are critical as they provide revenue for your company and valuable income. In addition, productivity is also increased. Paperwork can be tedious, causing employees to get distracted and become less productive. Online accounting software, combined with online accounting techniques is a much more effective procedure than filling out paperwork because half the work is already done for you!

Nudge Accounting take pride in providing the utmost finest online accounting service across Australia, with a variety of small to medium businesses and accounting excellence, technology and Nudge go hand in hand, just like the glove fits the hand! Equipped with the necessary and up-to-date online accounting software, we propel our clients to prosperity and maintain an organised financial structure. Online accounting plays a pivotal role in today’s businesses and could turn out to be a detrimental factor for those who have elected against it.

Concluding, older and more traditional methods should be kept in the past! Immense paperwork and enormous amounts of time will and tend to lead to mistakes, costly mistakes! Newer and more adroit online accounting techniques are favorable, time-saving and accurate. Your choice…

online accounting

We Are E.S.T. 2012

Who WE Are

At Nudge, we do it all for your small business: bookkeeping, accounting and tax. we can also help you with tax advice, company setups, personal tax, monthly performance summaries and specialist advice for small business owners. All work is completed by Aussie Accountants so you’ll never have to worry about compliance again.

Nudge Accounting
100% Online Accounting
Nudge Accounting
FREE Business Health Check
Nudge Accounting
Scalable Pricing Packages
Nudge Accounting
Easy Signup Process
Nudge Accounting
XERO Integration
Nudge Accounting
100% Satisfaction Guaranteed

TESTIMONIALS

OUR COMPANY

OUR COMPANY Quality

With the uprising of technology and the plethora of competition in the majority of industries, business owners tend to seek help and assistance in managing and tailoring their business to suit the era’s needs and expectations. The process of accounting provides reports that bring key financial indicators together. Understanding financial concepts and gearing clients to financial success is what we exceed at here at Nudge Accounting. Our expertise lingers throughout the field of online accounting and engulfs all financial cases. With years of extensive experience and a dedication for our clients success, we endeavour to evolve our existing methodologies, in order to transform into Australia’s leading online financial firm.

OUR COMPANY Commitment

A successful marriage between bookkeeping and accounting will contribute to the long-term financial success of any business. Nudge Accounting takes pride with their online bookkeeping and online accounting services that encompass all aspects and sectors of finance to ensure our clients receive the utmost finest service. Commitment is an attribute we stand for as client satisfaction is always key to evolution. Our reliability is second to none, as we ensure our clients are well organised and pursuit their financial tasks with accuracy and precision. Nudge Accounting propelled their excellence and with their dynamic team of online accounting professionals transcended competition and have cemented themselves as the leading online bookkeepers in Australia.

OUR COMPANY Success

Our software and technological client interface is meticulous and seldom do alternative online accounting companies acquire this quality of infrastructure. This is what portrays our excellence and gears Nudge Accounting towards success. We ensure client satisfaction, by going through all the details and explaining financial situations to our clients. Engaging the client is what makes us stand out! Online accounting software, combined with online accounting techniques is a much more effective procedure than filling out paperwork because half the work is already done for you! Nudge Accounting take pride in providing the utmost finest online accounting service across Australia, with a variety of small to medium businesses and accounting excellence, technology and Nudge go hand in hand, just like the glove fits the hand!

WE HELPING SMALL BUSINESSES

Nudge provide exceptional accounting service and support whilst remaining price competitive. All of our packages provide the same great features for your small business accounting needs, which includes:

  • Performance Management Reporting
  • Annual Tax Return Preparation and Lodgements
  • Annual Financial Statements
  • Financial Monthly Statements
  • QTR BAS Preparation and Lodgements
  • Monthly KPI's to Identify Improvement Areas
80
YEARS OF
EXPERIENCES
$250m
UNDER MANAGEMENT
REVENUE
$150m
TOTAL
ASSETS
100
% SECURE
CLOUD STORAGE

LATEST NEWS

Online Small Business Tax Accountant, Remote Accountants in Sydney, Offsite Accounting Service, Remote Small Business Bookkeeping Service, Remote Small Business Accounting Service, Remote Bookkeeping Service, Remote Accounting Service, Online Small Business Bookkeeping Service, Online Small Business Accounting Service, Online Chartered Accountants Sydney, Online Bookkeeping Service Sydney, Online Bookkeeping Service, Online Bookkeepers Sydney, Online Accounting Service Sydney, Online Accounting Service, Online Accountants Sydney, Online Accountants opecity
07.12.2016
Retailer from home | Where to start

Whether you’re making tie dye shirts from your garage or quirky birthday cards that stand out, the

Online Small Business Tax Accountant, Remote Accountants in Sydney, Offsite Accounting Service, Remote Small Business Bookkeeping Service, Remote Small Business Accounting Service, Remote Bookkeeping Service, Remote Accounting Service, Online Small Business Bookkeeping Service, Online Small Business Accounting Service, Online Chartered Accountants Sydney, Online Bookkeeping Service Sydney, Online Bookkeeping Service, Online Bookkeepers Sydney, Online Accounting Service Sydney, Online Accounting Service, Online Accountants Sydney, Online Accountants opecity
13.09.2016
Automation and Why Your Business Needs It

If you have ever heard the words efficiency and streamlining, you might be picturing a robot working

Online Small Business Tax Accountant, Remote Accountants in Sydney, Offsite Accounting Service, Remote Small Business Bookkeeping Service, Remote Small Business Accounting Service, Remote Bookkeeping Service, Remote Accounting Service, Online Small Business Bookkeeping Service, Online Small Business Accounting Service, Online Chartered Accountants Sydney, Online Bookkeeping Service Sydney, Online Bookkeeping Service, Online Bookkeepers Sydney, Online Accounting Service Sydney, Online Accounting Service, Online Accountants Sydney, Online Accountants opecity
30.08.2016
Business Computing – Windows or Mac

The classic rivalry, we all know the tension between people who use the mac and people who use windo

5 Things Every New Office Needs opecity
23.08.2016
5 Things Every New Office Needs

For companies that are finding themselves growing more and more and are struggling with basing thems

Featured in

Featured In Logo
Featured In Logo
Featured In Logo
Featured In Logo
Featured In Logo

GET IN TOUCH