A lot of new small business owners think that a BAS (Business Activity Statement) is for them to record GST only. There are, however, three key sections (and even more for particular industries such as wine and farming/transport) that are included in a BAS. These are:
1. GST – this is where you record the net sum of (a) GST you have collected from sales and (b) credits for the GST you paid on purchases.
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:
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.
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.
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.
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.
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.
The Tax Tips Tuesday topic this week is on how changes to the Medicare Levy will impact how much you pay your employees.
Did you know that the Medicare Levy has increased from 1 July 2014 from 1.5% to 2%? The Medicare levy is an amount most taxpayers pay to the Australian Government and is based on a percentage of their taxable income. It is used to help fund the Medicare scheme that gives access to healthcare in Australia.
This means that for all your staff members, especially those that are full time and are probably on a recurring payment from your bank, you will need to make an adjustment.
While the numbers may not be significant, now is a good time to get the calculation right before it all starts to add up. And it helps to use some good accounting software to calculate payroll for your employees such as Xero or MYOB Essentials.
Tax Tips Tuesdays is brought to you with love from Nudge Accounting.
Registering for GST – when do you need to start worrying about GST? You need to register for GST if your 12-month turnover or anticipated 12-month turnover is $75,000 or more
Tax & Hiring staff – when it comes to hiring staff, you need to provide staff with a Tax File Number Declaration Form, as well as assessing whether to pay superannuation, how much superannuation to pay, and how much tax must be withheld from their wages.
Superannuation – a mistake a lot of startups make is in thinking that superannuation is not payable for casual staff. This is not right. The same superannuation requirements apply for casuals and permanent employees. Continue reading “Worrying about tax & my startup”
I had a potential client call up this week and we spent a bit of time talking about the return on investment (ROI) of the work that Nudge does. Having only started her business in August, she wanted to get on top of the numbers. And she was interested in what Nudge could offer her business. But most of all, she wanted to understand what return her business would generate from one of our monthly Nudge packages.
It was a really good question. How do you assess the ROI on the work that your accountant does? From a Nudge perspective, we think about it as follows:
Traditional accountants generally help you comply with your taxes. The return that you generate from them doing this work can be broken down into (1) you are not an expert in it so let them do it all and (2) the time you need to spend getting them the work. This work really can be viewed as something to help you stay on the right side of the ATO but does it really add any value to your business.
On top of the cost of a traditional accountant, you have the following choices in getting your books up to speed. You can do it yourself, at a considerable time cost (time which you could spend getting more sales through the door) or you can hire a bookkeeper which is another separate cost.
How do you track your income and expenses? Often you will need to go and buy some accounting software to help you manage the business finances and to do your invoicing. You need to pay for this on top of your accounting and bookkeeping costs.
Then, because you bookkeeper and accountant work for different companies, you need to help them talk to each other and often when they have questions, you somehow get involved in answering them.
Is something missing here? With this complicated, timely and expensive process, have you noticed that no one is talking about how this helps your small business grow!
Mat Beeche from ShoeString Startups is talking about how Nudge Accounting gives startups and small businesses their numbers each month.
A quote we love is when he is talking about the importance of the monthly numbers as says “one of the biggest things that I have seen with a lot of start-ups that I have interviewed that have failed or gone under, is that they are not managing their finances properly, and think they are growing faster than they actually are”. You can read more about what you can achieve from knowing your numbers here.
At nudge, a lot of our new clients have come to us through referrals from existing clients. For us, this is the ultimate compliment! To say thank you, we have started a referral program – clients receive one month free subscription for every client they refer. Most clients had no idea about this program when they made the referral and so it came as a nice surprise to them!
We know a lot of small businesses have different referral programs in place and we’d love to learn more. Tell us what referral program you are using in your small business.
We are proud to say that that our co-founder, Emma Petroulas, was listed earlier this week as one of the 8 women to watch in the Sydney Tech-Startup Scene by Shoe String.
It’s a real honour that Nudge has been listed alongside some really amazing Aussie women in startups who are doing such exciting things! Many of whom we have followed their journeys as we were starting Nudge.
Other women included on the list were:
Katrin Suess from Vimily: a new online concept where you can leave video messages for future generations
Fiona Anson and Alison Baker from Hire me Up: recruitment for the part-time and casual markets making waves at the moment
Kat McKinnon from Verify1st: on a mission to stop fake websites and scammers
Katie Campbell from firehosiery: a subscription service for hosiery
Jodie Fox from Shoes of Prey and Pascale Helyar Moray from Style Rocks: design your own shoes and jewellery
Priyanka Rao from Evolvex: online flat-packed furniture
Bronwen O’Brien from Digital Sorbet: virtual PA services
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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Jane Lu - CEO
“Nudge has been a fantastic company to work with. They’ve really gone above and beyond in providing an extremely high level of service and truly care about our business and its growth. Their team is very personable and supportive. By providing us financial transparency, Nudge has better equipped us to make informed business decisions.”
Steven Fine - Managing Director
“The nudge service has been a massive cost and time saver for me. Having a separate bookkeeper to my accountant was causing double handling. I was spending far to much time on admin tasks. The automation, workflows, responsiveness and easy access to real time information has allowed me to focus on the growth aspects of the business rather than administration.”
SHOE STRING MEDIA GROUP
“Nudge is like having my own personal CFO for my startup without the cost. The team go above and beyond to make sure they take the time to assess your numbers in order to help you strategise on getting your business to the next level”
Dan Stinton - Managing Director
“Nudge takes the hassle out of bookkeeping and accounting. Their service utilises cloud accounting to make things fast, painless and easily accessible, so I can spend less time on administrative tasks and more time on growing my business. I recommend them to any startup, as well as any other business who wants a thoroughly modern approach to accounting.”
RESOURCES FOR PROFIT
“Nudge rescued us from a midsized accounting practice who, amongst other things, messed up our GST returns. As an ex Accountant, I have to say, to move to a cloud based solution (but very cost effective) had me feeling uneasy, but we decided to take “the risk”. The outcome (we’ve now done a full years cycle) was much better than expected. Accounting is now a simple process for us, no longer a distraction from running our business. Monthly reports, GST returns and our annual return are prompt, and any questions (there are very few) are answered quickly. We can’t give a strong enough recommendation for Nudge.”
Kate Miller - Director
“The biggest challenge that I have faced since starting my own business 3 years ago is finding a good accountant/bookkeeper who not only understands my business but can provide advice and solutions to help grow my business. Nudge takes care of all of my bookkeeping and financial reporting in a timely and professional manner. They never grow tired of answering my questions – no matter how silly they may sound! I would strongly recommend Nudge to any business owner.”
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Russell Wells - Managing Director
“Nudge have been awesome from the very start, from flawlessly migrating our accounting software mid way through a financial year, to giving us clarity on our numbers with tailored reports that are meaningful to our business. Their team has a genuine interest in seeing us succeed and are always available with any support that we need.”
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:
For companies that are finding themselves growing more and more and are struggling with basing thems
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