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 Tip Tuesday: When is my Business Lunch Tax Deductible?

Tax tips, business lunch tax deductible, ato, tax, startups, small business, startups

Determining whether or not your meals can be claimed as a tax deduction can be very confusing for startups and small businesses. While its not a black and white area, there are some simple tips that you can follow to determine whether or not you can claim a tax deduction.

What are the questions you should ask yourself?

  1. Why is the food or drink being provided? That is, what is its purpose, if it is a social setting than the chances are its entertainment.
  2. What food or drink is being provided? As the meal becomes more elaborate i.e, a menu with matching wines, it starts to take the form of entertainment.
  3. When is the food or drink being provided? If the meal is provided during work hours, this is less likely to be entertainment, however it is important to consider at this point whether or not it its social.
  4. Where is the food or drink being provided? If the meal is consumed on your premises then it’s not likely to be entertainment. However at a restaurant it is difficult to say it isn’t.

These initial steps are what will help you work out whether your business lunch is tax deductible. Continue reading “Tax Tip Tuesday: When is my Business Lunch Tax Deductible?”

TaxTipTuesday: What’s The Tax Rate For My Business?

Tax tips, tax rate, ato, tax, startups, small business, startups

Looking at the tax rate for your business is something many small businesses ask about. But it all depends on the type of business structure that you have. So lets get to the bottom of it:

What is Your Business Structure?

The structure of the business will determine the tax rate. The different structures include; Sole Trader (Individual), Partnership and a Company. You can read more about different business structures here.

1. What is a Sole Trader?

As a sole trader there is no separation in business ownership between yourself and the business. Therefore there is unlimited liability, so if your business can’t pay its creditors, your own personal assets could be up for sale.

2. What is a Partnership?

A partnership requires 2 or more people and like with a sole trader, the partners individually share in the business assets as well as its liabilities.

3. What is a Company?

A company has a director(s) as well as shareholder(s). The directors are responsible for the management of the company, whereas the shareholder(s) own the company. Continue reading “TaxTipTuesday: What’s The Tax Rate For My Business?”

Tax Tip Tuesday: Can I use tax losses in my business?

Tax tips, tax loss, ato, small business, startupsWhat is a tax loss?

A loss is made when the total deductions you claim exceed your income in the financial year.

Why are tax losses important?

It is important to know how to treat a loss when you are starting up a new company, as generally, most businesses will not make a profit in there first year of trading. This is often due to the initial investment in setting up the business and getting it running leading to a loss in the business until sales catch up. Continue reading “Tax Tip Tuesday: Can I use tax losses in my business?”

Tax Tip Tuesday: Is My Business Laptop a Tax Deduction?

Tax tips, business laptop a tax deduction,  ato, small business, startups

Is My Business Laptop a Tax Deduction?

Generally speaking, yes. If your laptop is used for your small business, it is a tax deduction. However, the cost of the laptop will determine whether it can be claimed as a tax deduction immediately, or whether it must be depreciated (claimed over a number of years).

These rules apply not just to laptops, but to most other assets/equipment purchased for your small business.

What are the rules

If you have a small business (small business entity) which is an individual, partnership, trust or company with aggregated turnover of less than $2 million, than you can use the simplified depreciation rules. Continue reading “Tax Tip Tuesday: Is My Business Laptop a Tax Deduction?”

Tax Tip Tuesday: Are Gifts and Donations Tax Deductible?

Tax tips, business, donations tax deductible, ato, small business, startups

Are Gifts and Donations Tax Deductible?

A gift or donation to an organisation is only tax deductible if they have the status of deductible gift recipients (DGRs)

What is a Deductible Gift Recipient (DGR)?

A DGR is an organisation who is entitled to receive income tax deductible gifts and contributions. For example Amnesty International Australia.

How do I claim a tax deduction for a gift or donation?

There are four conditions that must be met in order for you to claim a tax deduction. These include:

  1. The gift must be made out to a DGR.
  2. It must truly be a gift, there should be no material benefit or advantage from the transfer of money or property.
  3. The gift must be covered by one of the gift types, these include money, property and shares.
  4. The gift must comply with any relevant conditions. For some DGRs, the income tax law adds extra conditions affecting the types of deductible gifts they can receive.

Continue reading “Tax Tip Tuesday: Are Gifts and Donations Tax Deductible?”

Tax Tip Tuesday: When do I pay PAYG Instalments for my Business?

Tax tips, business, payg instalments, ato, small business, startups

A PAYG Instalment forms part of a small businesses BAS (Business Activity Statement). But what exactly is a PAYG Instalment? And when do you need to pay it for your business?

What is a PAYG Instalment?

A PAYG Instalment (or Pay As You Go Instalment) is the ATO’s way of making us prepay our income tax during the year for our Business.

When do you pay PAYG Instalments?

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 by prepaying your tax it will help to reduce or avoid those lumpy tax payments at the end of the year, which no business wants!

A PAYG Instalment amount is calculated based on your previous tax return lodged. So, if you paid some tax last year for your business, it is likely that you will have to pay PAYG Instalments this year. However, if it is your first year of operation you won’t pay PAYG instalments, as you haven’t lodged your first tax return yet. Also, if your business was in a tax loss position last year, you will not pay tax instalments as the tax payable last year was nil. Continue reading “Tax Tip Tuesday: When do I pay PAYG Instalments for my Business?”

Tax Tip Tuesday: How long do I need to keep tax records for?

Tax tips, tax records, small business tax records, ato, small business, startups

Often small business owners ask us if they can throw out their tax records once they have lodged their tax return and received their Notice of Assessment from the ATO. The answer is no – definitely not!

Small business owners are required to keep their records for much longer than that. As a general rule of thumb, you must keep your records for the later of five years from when your tax return is due to be lodged, or when you lodge your tax return. Continue reading “Tax Tip Tuesday: How long do I need to keep tax records for?”

Do I need to register my business for Workers Compensation?

Workers CompensationWorkers compensation is something that business owners often think about but never get around to doing something about it. So let’s look at some of the key things to be aware of and when you need to register for Workers Compensation.

  1. Workers Compensation is a state based scheme that protects employees and employers in the event of a work related injury or disease. It provides a level of insurance so that injured workers can receive entitlements and / or medical assistance should they be injured in the workplace.
  2. The conditions associated with registration vary by state but for instance when looking at the NSW scheme, registration is required when:
    • Salary & wages for the business are greater than $7,500. This includes Directors wages where Directors who are working in the business are also considered to be employees of the company
    • Businesses that employ apprentices or trainees must register automatically.

The Workers Compensation registration must be for all employees and will cover both permanent and casual staff. It also pays to consider whether your contractors will be considered a worker under your state based Workers Compensation Scheme as certain contractors are included in this definition.

Tax Tip Tuesday: Company losses, do I get a tax refund?

Tax tips, company tax refund, company losses, ato, small business, startups

A common question we get asked by new businesses is why they don’t receive a tax refund from the ATO when their company made a loss. This often occurs in the first 6 – 12 months of trading when business owners invest heavily in their business getting it off the ground and don’t make money in the first year of trading.

The reason a company won’t receive a tax refund is that they haven’t paid any tax so as the name suggests, there is no tax to refund. So, if companies don’t receive a tax refund when they make a loss, the next question is whether the losses in the company are wasted? And the answer is No! Continue reading “Tax Tip Tuesday: Company losses, do I get a tax refund?”

How to manage working capital in your business?

What is working capital? It is effectively a calculation of the short term asset / liability position of a business to see whether it can meet its meets its short term obligations. And the great thing about this calculation is that it is also a measure of how efficient your business operations are.

So lets look at working capital and some key things you should focus on:

When looking at this balance sheet, the working capital calculation is as follows: cash + current assets – current liabilities = ($24,997). This means that there is a working capital deficit which is a significant problem for this company as they do not have enough funds to pay out their liabilities.

Working capital

Issue No. 1: Always ensure your working capital is positive to avoid short term financial hardship

Looking at numbers from the same demo company below, we can see that the working capital ratio (also seen below as current assets to liabilities) is 0.4 x. This highlights Issue No. 1 above that there are not enough assets to cover the businesses liabilities.

 

Working capital When observing some of the other financial indicators of this business, we can see an increase in debtor days (meaning how long it takes to receive the cash for a sale) and creditor days are increasing (meaning it is taking longer to pay suppliers). This highlights that the financial systems within the business may not be working as effectively as they should be.

Issue No. 2: Your numbers can say a lot about the efficiency of your operations so watch them carefully.

 

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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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

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