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)

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Are emotions impacting your business finances? The Entourage Blog

The Entourage, emotions impacting finances, startups

Writing as part of our contribution to The Entourage Blog, we look at how emotions can impact your business finances.

We work with hundreds of startups and small businesses around Australia and often see emotions dictating the look, feel and performance of how people describe their business’ finances. Business owners can overplay their success and work more from a vibe then a genuine understanding of what is actually happening in their business.

While the emotional attachment and passion you have towards your business is probably the reason you have a level of success in the first place, it’s even better sometimes to take a step back (and away from the emotion) and look back into your business. Why? Because starting to think like an investor or advisor to your own business may tell you some interesting things. Continue reading “Are emotions impacting your business finances? The Entourage Blog”

Tax Tip Tuesday – Do I need to charge GST with that?

Tax tips, do i need to charge gst, ato, gst, small business, startups

When starting out, one of the big decisions you’ll have to make is how to price your product or service. You’ll look at costings and competitors pricing coupled with other branding and marketing considerations to make this decision. One mistake we often see though is businesses not factoring GST into their pricing which leads to the question, ‘Do I need to charge GST?’.

Once your business is registered for GST (and the product or service you are selling attracts GST), you need to add 10% to your selling price. As your pricing must include 10% GST, it’s another price point which you need to be aware of. And when it comes to raising money on Pozible and Kickstarter, remember the same rules apply. Continue reading “Tax Tip Tuesday – Do I need to charge GST with that?”

Tax Tip Tuesday: Can I borrow money from my business?

Tax tips, borrow money from my business, ato, dividends, small business, startups

In this Tax Tip Tuesday, we look at a question that business owners will face at some time with their business. Can I borrow money from my business?

This is part of our three part series on how do I take money out of my company?

Borrow money from my business.

The final way to take money out of your company is as a loan. This essentially means you are being loaned money from the company. The thing to remember here though is that your loan is a ‘balance’ and takes into account both money you have taken out of the company as well as money you have put in.

What we generally find with our business clients is that to start their business, they normally put in a fair bit of their own money. Let’s say you put in $20,000 to start your business. Using this scenario, you can take out up to $20,000 tax free before triggering any loan amount owing by you to the company. Continue reading “Tax Tip Tuesday: Can I borrow money from my business?”

Getting your business finances sorted. Improve your business operations…

Business operations, business financeIn our blog post this week, we continue a series looking at the three key steps that businesses need to tackle to get their business finances sorted. And our focus this week is on how to improve your business operations.

Step 3 – How to integrate your accounting with your business operations?

So you now have an accounting system in place and want to look at improvements to your business operations. Here are some questions you should be asking:

Revenues

  • Sales – how are you pricing your product / service. Do you have low sales $ yet you’re always busy- there’s a problem!
  • Composition of sales / How is each product performing? Are some product lines not making you any sales? Do you have product lines where you are making a million sales? They could both be as bad as each as as they’re unprofitable (we’ll look at this in Gross Profit as well)
  • Look at trends across months – helps in forecasting. Busier months? What can you do to pick up business in quieter months.

What could you change in your monthly management report. Consider a breakdown of sales data so you understand where your sales are coming from and which product lines. Continue reading “Getting your business finances sorted. Improve your business operations…”

Tax Tip Tuesday: How do I pay myself a salary?

Tax tips, pay myself a salary, ato, dividends, salary

In this Tax Tip Tuesday, we look at a question that all business owners ask. How do I pay myself a salary?

This is part of our three part series on how do I take money out of my company?

Pay myself a salary?

One way to take money out of your company is to pay yourself a salary, so essentially you are now an ‘employee’ of your company. Although you may be a Director, the same rules here apply whether you’re a Director or an employee.
As an employee, tax will need to be taken out of your salary on pay day. A good tool to work out how much tax to take out is to use the ATO Tax calculator.

As an employee, there are also other on-costs you need to consider. The two main ones are superannuation and worker’s compensation insurance. Generally speaking (although, there are some exemptions), your company will need to pay superannuation when you earn at least $450 per month. The current rate of superannuation is 9.25%. Continue reading “Tax Tip Tuesday: How do I pay myself a salary?”

Getting your business finances sorted. We look at accounting software…

Xero, Nudge Accounting, accounting systemMYOB, accounting system

In our blog post this week, we continue a series looking at the three key steps that businesses need to tackle to get their business finances sorted. And our focus in this blog post is on accounting software and managing your finances.

Step 2 – How to use an accounting software to track your performance

The first thing you need is an accounting software for your business. Some of the key things you should think about when looking at accounting software are:

  • Cloud v desktop. Do you need access on the go and have multiple users or want to share data with your bookkeeper and accountant in real time, than a cloud based accounting software package is probably more suitable for you.
  • Do you invoice and need unlimited invoicing? Accounting software has a strong focus on invoicing and should be able to help you manage this function.
  • Do you track inventory? Make sure that your accounting software has this functionality so you don’t need to worry about costly addons.
  • Do you have overseas sales and need to consider other currencies. It will often be an additional cost but it is so important in tracking things effectively.

Continue reading “Getting your business finances sorted. We look at accounting software…”

Getting your business finances sorted. We look at invoicing…

Business finance, Invoicing

In our blog post this week, we start a series looking at the three key steps that businesses need to tackle to get their business finances sorted. And as part of our ongoing work with the business community, we presented these topics at The Entourage Scalable & Saleable Program in October 2014.

And our focus in this blog post is on invoicing and getting cash through the door.

Step 1 – How to ensure that you’re invoicing and getting cash through the door

Cash in any business is king. And it is so important that you should have a process for it. Why? One key fact around invoicing demonstrates this point:

  • Debtor days is almost 2 months (54 days) for small business. That means that after small businesses make a sale, it takes them this long to collect the money. Ouch!!

Some of the things you should be thinking about when invoicing:

  • Will you invoice when a service is performed and if so, within how many days?
  • Will you invoice upfront before the work is performed – hold the clients credit card or ensure that you receive payment before the final product is delivered?

So when setting up a process for invoicing, how will your invoicing get done?

  • Set aside time to do your invoicing – how regularly will you invoice?
  • Keep records to substantiate e.g. hours worked if questioned. Back yourself. Your time is worth $$$
  • Invoices need to look professional so you are taken seriously. also be aware that if you are starting your business, you may not be required to register for GST. However, clients will know you are small if you don’t include GST on the invoice so consider the pros and cons associated with this registration
  • What payment methods will you accept – credit card, paypal etc
  • Be clear on your payment terms and have them stand out on your invoices.

What are some essential things that your invoices need to include:

  • That it is a tax invoice by including the words ‘Tax Invoice’ on it
  • Who you are (your business) – ABN
  • Date of invoice
  • Description of what the invoice is in relation to – i.e. quantity x price
  • Whether GST (tax) is applicable and to what extent

Don’t waste your time doing your invoicing manually, there is software out there to help you manage and track this. Also consider software that sends out automatic reminders when invoices have not been paid on time and include this as part of your process.

This blog post is part of a three part series on managing your business finances.

How does my Tax Return affect my PAYG Instalments?

Tax tips, accounting, PAYG Instalments, bookkeeping, small business, nudge accounting, startupsSo you have been organised this year and have prepared the Income Tax Return for your small business. Last year was a great year, which means that you are stuck with a tax bill. At first you think lets lodge it on the last day so I can defer paying the tax as late as possible.

What does this mean for the quarterly PAYG Instalments you have to pay?

Lets look at an example:
A small business works out the taxable income for the year ended 30 June 2014 is $100,000. Company income tax on this is $30,000.

The company has paid quarterly PAYG Instalment of $2,000 per quarter. The total PAYG Instalments is $8,000.

On this basis, the balance of the income tax payable when the return is lodged is $22,000.

Depending on when the income tax return is lodged, the small business will need to make a catch up PAYG Instalment in that quarter. What this means for the PAYG Instalments is as follows:

(a) If the income tax return is lodged in the September 2014 quarter, the quarterly PAYG Instalments going forward will be approximately $7,500 per quarter.

(b) If the income tax return is lodged in the December 2014 quarter, the quarterly PAYG Instalment for the December quarter will be approximately $13,000, then $7,500 for the following quarters.

(c) If the income tax return is lodged in the March 2015 quarter, the quarterly PAYG Instalment for the March quarter will be approximately $18,500, then $7,500 for the following quarter.

(d) If the income tax return is lodged in the June 2015 quarter, the quarterly PAYG Instalment
for the June quarter will be approximately $24,000.

Bear in mind for the above example that the quarterly instalments remain at $2,000 per quarter until the income tax return is lodged.

So in summary, once a return is lodged, the ATO will reassess the quarterly PAYG instalments. We just need to be aware of how this is calculated so business cash flow for the rest of the financial year is not so lumpy.

This Tax Tips Tuesday is brought to you with love by Nudge Accounting. You can read more about PAYG Instalments and other Tax Tips here.

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.

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.

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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
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