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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Paying superannuation for my team – what do I need to know?

As part of our monthly blog post for Shoestring, we write about the superannuation requirements that employers need to meet for their team members.

Shoestring, Nudge, superannuation

The key superannuation requirements that employers have to meet 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 startups make is that they assume that they are not required to make superannuation guarantee contribution payments for contractors. If an individual is paid mainly for their labour for hours worked under a contract, then you will have to pay contributions 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 9.25% and is scheduled to change to 9.5% from 1 July 2014.

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.

4. What else is changing?

Apart from the proposed change in superannuation rates, the Government has confirmed that superannuation contributions must be paid electronically by employers into the future. The new system will be compulsory from 1 July 2015 for businesses with less than 20 employees.

Under the new ruling, superannuation payments must be made using a single Electronic Funds Transfer (EFT) to a registered superannuation clearing house. Many accounting software providers offer this function (such as Xero and QuickBooks Online). Alternatively, if you have less than 20 employees you can register to use the ATO’s Superannuation Clearing House.

You can read more in the article on Shoestring here

Startup Founders – How can I pay myself from my business?

ShoeString, Pay myself, Nudge Accounting

Writing in my monthly contribution to Shoestring, I put myself in the position of a startup founder and asked the question, “How can I pay myself from my business?”. There are different ways that a startup founder can pay themselves but it all depends on the type of business structure that they have:

1. Sole traders – the business money is your money

A sole trader is where an individual operates a business and there is no distinction between them and the business. And this means that all money made from your sole trader business is yours. You just need to be careful as this means that all money you make in your sole trader business is taxed in your personal tax return. And personal tax rates can get quite high. Up to 45% + the medicare levy of 1.5%.

2. Partnership – you take a share of the partnership profits

A partnership is similar in many respects to a sole trader. Except that you are working with others, called the Partners, and you share the profits with them based on your share of the Partnership. Although a Partner may want to pay themselves a salary, this is effectively the same as them receiving a share of the profits and that is how the ATO views it.

3. Company – how do I pay myself?

There are different ways you can pay yourself from your company. As the company is a separate entity to you, you need to ensure that you don’t draw down money from the company as if it is your personal bank account. Ways you can pay yourself include: Continue reading “Startup Founders – How can I pay myself from my business?”

Is my business lunch a tax deduction? Nudge in Shoestring

Tax deduction, business lunch

“Is my business lunch a tax deduction” was our article last month for leading Start-Up publication, Shoe String Why? Because it is one area which causes a lot of confusion and start-ups and small businesses want to understand whether meals (and coffees) can be claimed as a tax deduction.

It’s not a black and white area so we thought that some simple tips can help go a long way in working out whether you can claim a tax deduction. So what are the questions that you should ask (and that the ATO wants you to consider):

  1. Why is the food or drink being provided – i.e. what is its purpose of the event. If it is provided in a social setting, then the chances are that is is entertainment
  2. What food or drink is being provided – is it a light meal provided at work or is it a set menu with matching wines. As the meal starts to become more elaborate, it starts to take the character of entertainment
  3. When is the food or drink being provided – meals provided during work hours are less likely to be entertainment, however with this point it’s especially important to consider the purpose and whether it is social.
  4. Where is the food or drink being provided – meals consumed on your business premises are less likely to be entertainment. At a restaurant, it is difficult to say it isn’t.

It’s important to consider these initial steps to help you work out whether you can claim a tax deduction on meals (and coffees).

And for more information on this, and the next steps we take at Nudge, you can read my article here.

Cheers
Emma

Budgets. The Story of your Business in Numbers! Nudge in Shoestring

Nudge

“Budgets and the story of your business in numbers” was our article this month for leading Start-Up publication, Shoe String. Why? Because so many start-ups and small businesses don’t have an effective budget in place. And to help me out, Aaron stepped into my shoes to talk about a presentation on budgets he gave to The Entourage’s Scalable and Saleable program.

Why do we think budgets are so important? Because they map out the strategy of your business into numbers. After all, that’s what drives your business to success.

So what are the reasons for start-ups and small businesses to have a budget:

  • You need to work out whether your start-up business can be sustainable / profitable
  • It helps you keep yourself accountable to the targets you have set
  • To help track your operations and the costs you have to meet

Continue reading “Budgets. The Story of your Business in Numbers! Nudge in Shoestring”

How can I take money out of my company? Nudge in ShoeString

ShoeString

“How can I take money out of my company” was my article this month in leading Start-Up publication, Shoe String. Why? Following up from last months post on the issues around moving a business from their own name to that of a company, I decided to follow up with a more detailed post about how to take money out of your company.

Normally I don’t talk in so much technical language but it’s a question that I keep getting asked and is something very relevant to start-ups and small businesses.

So, what were some of the key tips that you should know when taking money out of your company:

  • A Director is not considered to be any different to an employee when taking money out as a salary. So factor in PAYG tax and superannuation when thinking of these types of payments.
  • Dividends paid to you can gain the benefit of tax credits when done properly. So make sure you have taken the right steps when doing this.
  • Be careful if you borrow money from your own company. It’s not a bottomless pit and the ATO expects you to repay this loan, just like any other loan.

You can read the article here.

Cheers

Emma

What is the ROI on knowing your numbers?

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!

Continue reading “What is the ROI on knowing your numbers?”

Mat Beeche from ShoeString Startups talking about Nudge Accounting

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.

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

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