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<link>https://www.keyadmin.com.au/blog/cash-flow-on-autopilot-using-automation-to-keep-your-business-financially-healthy-128s70</link>
<title><![CDATA[Cash Flow on Autopilot: Using Automation to Keep Your Business Financially Healthy]]></title>
<description><![CDATA[For many business owners, cash flow management can feel like a constant balancing act. Between issuing invoices, paying suppliers, tracking expenses, and planning for future obligations, financial administration can quickly become time-consuming and overwhelming.

Businesses are working far harder than necessary to stay on top of their finances. Many are still relying on manual processes, spreadsheets, and reactive decision-making, which makes it difficult to maintain consistent cash flow.

The good news is that modern bookkeeping technology allows much of this work to be automated. With the right systems in place, routine financial tasks can run in the background while you focus on running and growing your business.

Automation doesn&rsquo;t just make bookkeeping more efficient. It helps businesses gain better financial visibility, reduce errors, and make smarter decisions. Here are some of the key ways automation can help keep your business financially healthy.
]]></description>
<content><![CDATA[For many business owners, cash flow management can feel like a constant balancing act. Between issuing invoices, paying suppliers, tracking expenses, and planning for future obligations, financial administration can quickly become time-consuming and overwhelming.

Businesses are working far harder than necessary to stay on top of their finances. Many are still relying on manual processes, spreadsheets, and reactive decision-making, which makes it difficult to maintain consistent cash flow.

The good news is that modern bookkeeping technology allows much of this work to be automated. With the right systems in place, routine financial tasks can run in the background while you focus on running and growing your business.

Automation doesn&rsquo;t just make bookkeeping more efficient. It helps businesses gain better financial visibility, reduce errors, and make smarter decisions. Here are some of the key ways automation can help keep your business financially healthy.

Automated Invoicing and Payment Reminders

One of the most common cash flow challenges businesses face is delayed payments. Even when a business is profitable on paper, late invoices can cause significant pressure on day-to-day operations.

A surprisingly common issue is that invoices are not always sent promptly. When teams are busy with operational work, invoicing can easily fall down the priority list.

Automation solves this problem by ensuring invoices are issued quickly and consistently.

By setting up automated invoicing within your accounting system, invoices can be generated automatically when certain conditions are met. 

For example:


	
	When a project or a project milestone is completed
	
	
	When a product or service is delivered
	
	
	At the start of a recurring billing cycle
	
	
	On scheduled dates for regular clients
	


This ensures customers receive invoices promptly, which significantly improves the likelihood of timely payment.

Automated payment reminders can also make a major difference. Instead of manually following up with customers, your accounting software can send polite reminder emails at scheduled intervals, such as:


	
	A reminder before the invoice due date
	
	
	A notice on the due date
	
	
	Follow-up reminders if payment becomes overdue
	


These reminders are consistent, professional, and remove the uncomfortable task of chasing clients for payment.

Many invoicing systems also allow customers to pay directly from the invoice through online payment options. This convenience can further accelerate the payment process and reduce outstanding receivables.

From our experience working with clients, implementing automated invoicing and reminders alone can significantly improve cash flow reliability.

Predictive Cash-Flow Reporting

Another area where automation can make a significant difference is cash-flow forecasting.

Many business owners only review financial data after the fact, such as when preparing monthly reports or reviewing quarterly results. While this historical information is important, it doesn&rsquo;t always help you anticipate what&rsquo;s coming next.

Predictive cash-flow reporting uses automation to analyse your historical transactions and combine them with upcoming financial obligations to forecast your future cash position.

This allows business owners to see expected cash inflows and outflows over the coming weeks or months.

With this information, you can answer important questions such as:


	
	Will there be enough cash available to cover upcoming expenses?
	
	
	When might the business experience tighter cash flow?
	
	
	Is there room in the budget to invest in new equipment or staff?
	
	
	Are seasonal fluctuations likely to impact revenue?
	


Having a forward-looking view of your finances makes it much easier to plan ahead.

At Key Admin, we often work with clients to review these forecasts regularly and identify potential issues early. If a cash shortfall is predicted, it may be possible to adjust payment terms, reduce discretionary spending, or prioritise collection of outstanding invoices.

The key advantage of automated forecasting is that it continuously updates as new data enters your accounting system, meaning your projections remain current and relevant.

Setting Rules for Recurring Transactions

Many financial transactions occur repeatedly each month. These can include rent payments, software subscriptions, insurance premiums, loan repayments, and other regular business expenses.

Manually coding these transactions every time they appear in your bank feed is not only inefficient but also increases the risk of inconsistent record-keeping.

Automation allows businesses to set rules that automatically categorise recurring transactions when they appear in the accounting system.

For example, a rule may automatically:


	
	Code rent payments under rent expenses
	
	
	Allocate monthly software subscriptions to technology costs
	
	
	Categorise fuel purchases as vehicle expenses
	
	
	Assign payments to specific suppliers or expense accounts
	


Once these rules are in place, transactions that match the criteria will be categorised automatically during bank reconciliation.

This significantly reduces the amount of manual data entry required and ensures financial records remain consistent over time.

From a bookkeeping perspective, consistent categorisation is extremely valuable. It improves the accuracy of financial reports and makes it much easier to track trends in spending and profitability.

For business owners, it also means financial reports become more reliable tools for decision-making.

Integrations That Improve Forecasting Accuracy

One of the most powerful aspects of modern accounting software is its ability to integrate with other business systems.

Many businesses use a range of digital tools to manage operations, from point-of-sale systems and e-commerce platforms to payroll software and inventory management tools.

When these systems operate separately, financial data often needs to be manually transferred into accounting software, which can create delays and increase the risk of errors.

Integrations solve this problem by allowing information to flow automatically between systems.

For example, businesses can connect their accounting software with:


	
	Point-of-sale systems to capture daily sales data
	
	
	E-commerce platforms to record online orders and payments
	
	
	Payroll systems to automatically track wage expenses
	
	
	Inventory management tools to reflect product purchases and cost of goods sold
	


These integrations ensure financial data is recorded accurately and in real time.

From a forecasting perspective, this is extremely valuable. Automated cash-flow projections become far more accurate when they incorporate real-time operational data rather than relying on manual updates.

We help businesses identify which integrations will provide the most value based on how their operations run. When the right systems are connected, financial reporting becomes faster, more accurate, and far more useful.

Reducing Errors and Strengthening Financial Control

Another important benefit of automation is the reduction of manual errors.

Even the most organised business owners can make mistakes when entering financial data by hand. Duplicate entries, misclassified transactions, and missed invoices are all common issues we encounter when reviewing financial records.

Automation helps minimise these risks by standardising processes and removing repetitive manual tasks.

When transactions are imported directly from bank feeds, categorised using predefined rules, and supported by automated invoicing systems, the chances of error decrease significantly.

This not only improves the reliability of financial reports but also supports better compliance with tax obligations. Accurate and well-maintained financial records make it much easier to prepare Business Activity Statements, manage GST reporting, and complete end-of-year accounts.

For businesses operating in Australia&rsquo;s regulatory environment, having clean and organised financial records is essential.

Let Automation Support Your Financial Health

Automation is not about replacing the role of bookkeepers, it&rsquo;s about enhancing the way businesses manage their finances.

When routine tasks are automated, business owners gain clearer financial visibility while spending less time on administrative work. At the same time, bookkeepers can focus on providing higher-value support, such as analysing financial performance and helping businesses plan for the future.

In our experience, businesses that adopt automation often see improvements in cash flow consistency, financial accuracy, and overall efficiency.

If your current bookkeeping processes feel time-consuming or reactive, it may be time to explore how automation could improve your financial systems.

With the right tools and professional guidance, your business can move toward a more streamlined and proactive approach to financial management, keeping your cash flow healthy and your business positioned for sustainable growth.
]]></content>
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<pubDate>30 Mar 2026 21:55:00 GMT</pubDate>
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<link>https://www.keyadmin.com.au/blog/7-signs-it-is-time-to-outsource-your-bookkeeping-128s69</link>
<title><![CDATA[7 Signs It is time to Outsource Your Bookkeeping]]></title>
<description><![CDATA[Outsourcing your bookkeeping can be one of the smartest financial decisions you make as a business owner. Many small businesses start by managing their own books, but as transactions increase and compliance becomes more complex, DIY bookkeeping can quickly turn into a costly risk. Knowing when to outsource helps protect your cash flow, keep you compliant with ATO requirements, and free up time to focus on growth.
]]></description>
<content><![CDATA[This guide outlines the seven clearest signs it&rsquo;s time to bring in a professional bookkeeper and why outsourcing is often more affordable and efficient than doing it yourself.

1. You&rsquo;re Spending Too Much Time on Bookkeeping Instead of Running the Business

If bookkeeping tasks regularly take over your evenings or weekends, it&rsquo;s a strong sign your business has outgrown DIY admin. Time spent reconciling accounts, preparing BAS, or managing payroll is time not spent on sales, customer service, or strategy. Outsourcing gives you back the hours that actually generate revenue.

2. Your Books Are Behind or Inaccurate

Falling behind on bookkeeping is extremely common and extremely risky. Late or inaccurate data entry leads to incorrect financial reports, missed deductions, and cash flow surprises. If you&rsquo;re constantly &ldquo;catching up&rdquo; or avoiding the task altogether, a bookkeeper can bring your accounts up to date and keep them accurate year&#x2011;round.

3. BAS, GST, or Payroll Compliance Is Stressing You Out

Australian compliance requirements change frequently. If you&rsquo;re unsure about GST categories, STP reporting, superannuation deadlines, or BAS preparation, outsourcing ensures everything is done correctly and on time. A professional bookkeeper helps you avoid penalties and stay compliant with ATO rules.

4. You Don&rsquo;t Have Clear Cash Flow Visibility

If you rely on your bank balance to understand your financial position, you&rsquo;re missing the bigger picture. Clean, up&#x2011;to&#x2011;date books give you accurate cash flow insights, profit tracking, and the ability to make informed decisions. Outsourcing ensures your financial reports are always current and meaningful.

5. Your Accountant Is Fixing Your Books at Tax Time

If your accountant spends hours cleaning up your file before lodging your tax return, you&rsquo;re paying premium rates for work a bookkeeper is better suited to handle. Outsourcing your bookkeeping reduces accounting costs and ensures your accountant can focus on tax planning, not data cleanup.

6. Your Business Is Growing and Your Finances Are Getting More Complex

Growth brings more invoices, more payroll, more transactions, and more compliance. What was once manageable quickly becomes overwhelming. Outsourcing gives you scalable support that grows with your business, without the cost of hiring an internal finance team.

7. Your Books Are Messy and You Don&rsquo;t Know Where to Start

If your accounts don&rsquo;t balance, your reports don&rsquo;t make sense, or you suspect errors but can&rsquo;t identify them, it&rsquo;s time for professional help. A bookkeeper can clean up your file, fix historical issues, and implement systems that prevent the same problems from returning.

Why Outsourcing Bookkeeping Is a Smart Move for Small Businesses

Outsourcing gives you:


	Accurate, up&#x2011;to&#x2011;date financials
	Peace of mind around ATO compliance
	More time to focus on growth
	Better cash flow visibility
	Lower accounting costs
	A reliable financial partner who understands your business


It&rsquo;s not just about removing a task, it&rsquo;s about strengthening the financial foundation of your business.

Ready to Outsource Your Bookkeeping?

If you&rsquo;re experiencing any of these signs, now is the ideal time to hand your bookkeeping over to a professional. Our Melbourne&#x2011;based team supports small businesses with accurate bookkeeping, BAS and GST compliance, payroll management, and complete tax services, giving you confidence that every part of your financial world is handled correctly and on time.

With clean books, clear reporting, and expert tax guidance, you can focus on growing your business while we take care of the numbers.

CONTACT OUR EXPERTS
]]></content>
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<pubDate>16 Mar 2026 05:21:00 GMT</pubDate>
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<link>https://www.keyadmin.com.au/blog/what-is-business-process-automation-128s68</link>
<title><![CDATA[What Is Business Process Automation?]]></title>
<description><![CDATA[Business Process Automation (BPA) refers to the use of technology to streamline, standardise, and automate complex business processes that would otherwise require manual effort. By leveraging software tools and workflow automation platforms, organisations can transform repetitive activities into efficient, consistent, and error-free operations. BPA helps businesses reduce operational friction, enhance productivity, and improve customer satisfaction - all while freeing teams to focus on more strategic, high-value work.

At its core, Business Process Automation is not simply about replacing human labor with machines. Rather, it is about enabling people to work smarter and more effectively by allowing technology to handle repetitive, rule-based tasks. From onboarding new employees and generating invoices to managing customer service workflows, BPA has become an essential component of modern business operations.
]]></description>
<content><![CDATA[What Is Business Process Automation?

Business Process Automation (BPA) refers to the use of technology to streamline, standardise, and automate complex business processes that would otherwise require manual effort. By leveraging software tools and workflow automation platforms, organisations can transform repetitive activities into efficient, consistent, and error-free operations. BPA helps businesses reduce operational friction, enhance productivity, and improve customer satisfaction - all while freeing teams to focus on more strategic, high-value work.

At its core, Business Process Automation is not simply about replacing human labor with machines. Rather, it is about enabling people to work smarter and more effectively by allowing technology to handle repetitive, rule-based tasks. From onboarding new employees and generating invoices to managing customer service workflows, BPA has become an essential component of modern business operations.

What is Robotic Process Automation (RPA)?

Robotic Process Automation (RPA) is a subset of BPA that uses software robots - or &ldquo;bots&rdquo; to mimic human interactions within digital systems. These bots can log into applications, enter data, perform calculations, extract information, and complete transactions, all without human intervention. RPA is particularly powerful for automating structured, rule-based tasks that are high volume and repetitive.

While BPA focuses on improving entire workflows, RPA zeroes in on automating specific tasks within those workflows. For example, BPA might automate an entire procurement approval process, whereas RPA might extract invoice data from emails and enter it into an accounting system. When combined, BPA and RPA offer a comprehensive approach to workflow transformation.

Why Business Process Automation Matters

Business Process Automation has become increasingly important as organisations navigate rapid digital transformation, rising customer expectations, and competitive pressures. The ability to automate processes allows companies to operate with greater accuracy, speed, and cost-efficiency. BPA also creates opportunities for innovation, enabling businesses to reimagine how work gets done and to build scalable, future-ready operations.

Below are several reasons why BPA plays a critical role in modern business strategy.

Increase Efficiency

One of the most immediate benefits of BPA is increased operational efficiency. Manual processes often involve slow, repetitive steps that are prone to delays. Automation accelerates these tasks by executing them faster and more consistently than humans can.

Automated workflows can run 24/7 without fatigue, ensuring that processes keep moving - even outside of standard working hours. This results in improved turnaround times, more predictable outcomes, and the ability to process higher volumes of work with the same or fewer resources.

Enhance Accuracy

Human error is unavoidable, especially in processes involving data entry, calculations, or compliance checks. Business Process Automation significantly reduces these errors by enforcing standardised rules and ensuring that tasks are completed the same way every time.

Automation also minimises the risks associated with oversight, duplicated data, or incorrect information and compliance. This enhanced accuracy is particularly valuable in industries where precision is critical, such as finance, healthcare, and logistics.

Reduce Costs

By increasing efficiency and reducing errors, BPA delivers substantial cost savings. Automation decreases the amount of time employees spend on low-value tasks, allowing organisations to allocate staff toward high-impact work such as innovation, customer engagement, and strategic planning.

Additionally, reduced errors translate directly into financial savings. Mistakes in billing, reporting, and compliance can lead to costly penalties or recovery efforts. Automation helps prevent these issues, resulting in long-term operational and financial benefits.

Improve Customer Experience

Customers expect fast, accurate, and seamless interactions. Whether it&rsquo;s processing orders, responding to inquiries, or resolving issues, automation improves the customer experience by enabling quicker and more consistent service.

Automated systems can instantly acknowledge requests, provide real-time updates, and route inquiries to the right departments. Behind the scenes, BPA ensures that each step of the customer journey is optimised for speed and reliability. As a result, customers enjoy smoother interactions and higher satisfaction levels.

Enable Scalability

As businesses grow, their operational demands increase. Manual processes can quickly become bottlenecks, limiting a company&rsquo;s ability to scale effectively. BPA enables scalable operations by automating workflows that can handle increased volumes without requiring proportional increases in staff or resources.

With automation in place, organisations can expand confidently, knowing their processes can keep up with demand. This scalability is especially important for startups and growing enterprises that need systems capable of supporting rapid expansion.

Key Benefits of Business Process Automation

Business Process Automation delivers a wide range of strategic advantages, including:


	
	Consistency and Compliance: Automated workflows ensure tasks follow standardised rules, making compliance easier to maintain and audit.
	
	
	Employee Satisfaction: By eliminating monotonous tasks, employees can focus on more meaningful, creative, and strategic work.
	
	
	Faster Decision-Making: Automation provides real-time data and insights, enabling leaders to make informed decisions quickly.
	
	
	Process Visibility: BPA platforms often include dashboards and analytics, helping organisations monitor performance and identify areas for improvement.
	
	
	Cross-Department Collaboration: Automation connects disparate systems and departments, creating more cohesive and transparent workflows.
	 
	


Examples of business process automation in action

BPA is used across nearly every industry and department. Below illustrates an Integrated Workflow Example: 

Invoice-to-Cash Automation Flow


	
	Customer order triggers automatic invoice generation
	
	
	Invoices are emailed instantly
	
	
	System tracks whether it was opened
	
	
	Automated reminders are scheduled
	
	
	Payment is recorded automatically when received
	
	
	Bank feeds reconcile the deposit
	
	
	Dashboards update with real-time revenue
	


This removes numerous manual touchpoints and increases financial accuracy and speed.

Some common automation flows you can implement within your business include:

Administrative Automation

1. Document Management Automation

Systems automatically tag, categorise, file, and store documents - making retrieval simple and eliminating manual filing.

2. Calendar &amp; Scheduling Automation

Automation books appointments, sends reminders, handles rescheduling, and syncs across team calendars.

3. Automated Onboarding Workflows

For employees or clients, automation manages welcome emails, document collection, identity checks, training tasks, and system permissions.

4. Email Management Automation

Tools prioritise emails, categorise them, auto-reply to common messages, and delegate tasks - reducing inbox overload.

5. Contract &amp; Renewal Tracking

Automation monitors contract dates, sets renewal reminders, generates templates, and manages approval workflows.

Finance Automation

1. Budgeting &amp; Forecasting Tools

Automation uses historical data and predictive analytics to create dynamic, real-time forecasts and what-if financial scenarios.

2. Automated Tax Calculations &amp; Compliance

Software calculates GST, prepares reports, and tracks legislative changes - reducing compliance risks.

3. Expense Reimbursement Automation

Employees upload receipts, automation extracts data, checks policy compliance, routes approvals, and processes reimbursements seamlessly.

4. Fraud Detection Alerts

The system monitors financial transactions for anomalies and sends instant alerts to finance teams, strengthening internal controls and risk management.

Bookkeeping Automation

1. Automated Bank Reconciliation

Automation software imports bank transactions, matches them to ledger entries, flags anomalies, and generates reconciliation reports. This dramatically reduces the time bookkeepers spend manually verifying accounts.

2. Automatic Expense Categorisation

Using rules, systems assign expense categories based on transaction patterns. This ensures coding consistency and significantly reduces manual classification work.

3. OCR-Powered Data Entry for Bills &amp; Receipts

Optical Character Recognition extracts data from receipts, invoices, and bills, turning them into structured accounting entries - eliminating manual inputs.

4. Recurring Transaction Automation

Software can automatically schedule and record recurring transactions including rent, subscriptions, and loan payments - keeping ledgers current without human intervention.

Business Process Automation vs. Manual Processes

Manual processes rely heavily on human intervention, which can slow operations, increase the risk of error, and create inconsistencies. They often require repetitive steps that consume valuable employee time and leave room for variations in quality.

In contrast, Business Process Automation ensures standardised, efficient workflows that operate predictably and consistently. Automated processes can be monitored and optimised more easily, allowing organisations to quickly adapt to changes or improve performance. While manual processes may still be needed for tasks requiring human judgment, BPA significantly reduces the burden on staff and enhances overall productivity.

The Future of Business Process Automation

The future of BPA lies in increasingly sophisticated technologies. These tools enable automation systems to learn from data, identify patterns, make predictions, and even adapt workflows dynamically.

As intelligent automation evolves, businesses will see greater opportunities to automate complex decision-making tasks - not just routine, repetitive ones. Integration between BPA and emerging technologies will further expand automation capabilities, enabling real-time adjustments across connected systems and devices.

Organisations that embrace advanced automation will gain a significant competitive edge by operating more efficiently, responding faster to market changes, and delivering exceptional customer experiences.

Conclusion

Business Process Automation has become an essential tool for organisations seeking to streamline operations, reduce costs, and improve service quality. By automating repetitive tasks and optimising workflows, businesses can achieve higher efficiency, greater accuracy, and enhanced scalability. Ultimately, BPA empowers organisations to focus on what matters most - innovation, customer value, and long-term strategic growth.

Chat to our team at Key Admin to learn more about automation and how we can help to make your business efficient. 
]]></content>
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<pubDate>28 Jan 2026 23:40:00 GMT</pubDate>
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<link>https://www.keyadmin.com.au/blog/ecommerce-bookkeeping-for-small-business-complete-guide-128s67</link>
<title><![CDATA[Ecommerce Bookkeeping for Small Business [Complete Guide]]]></title>
<description><![CDATA[Running an eCommerce business in Australia offers huge growth potential, but it also comes with financial responsibilities. From managing online sales across multiple channels, inventory management, to navigating GST compliance, bookkeeping can quickly become overwhelming for small business owners. A solid bookkeeping system paired with tools and automation can not only keep your business compliant, but also improves cash flow, profitability, save time and reduce costly errors. 
]]></description>
<content><![CDATA[Running an eCommerce business in Australia offers huge growth potential, but it also comes with financial responsibilities. From managing online sales across multiple channels, inventory management, to navigating GST compliance, bookkeeping can quickly become overwhelming for small business owners. A solid bookkeeping system paired with tools and automation can not only keep your business compliant, but also improves cash flow, profitability, save time and reduce costly errors. 

Why Bookkeeping Matters for Australian eCommerce Businesses

Ecommerce transactions move fast, often across several platforms (Shopify, Amazon, eBay, WooCommerce, etc.). Without proper bookkeeping, it becomes difficult to:


	
	Understand your true financial position
	
	
	Track profitability across products
	
	
	Maintain accurate BAS and GST records
	
	
	Avoid cash-flow shortages
	
	
	Prevent accounting errors or audit issues
	
	
	Make informed decisions about pricing, inventory, and marketing
	


Because the Australian Taxation Office (ATO) requires accurate reporting for income, GST, payroll, and superannuation, clean and organised financial records are essential - not optional.

Key Components of Ecommerce Bookkeeping

1. Recording Sales Revenue Accurately

Ecommerce sales may come from multiple channels, and each may have:


	
	Different fee structures
	
	
	Refunds and chargebacks
	
	
	Currency conversions
	
	
	Shipping income
	
	
	Merchant fees
	


A proper bookkeeping system should consolidate all transactions into one source of truth. This usually means syncing each sales channel with your accounting software such as Xero, QuickBooks, MYOB and A2X (for automating marketplace reconciliations).

Platforms like A2X are especially useful because they break down deposits from Shopify, Amazon or eBay into detailed accounting summaries, saving hours of reconciliation time.

2. GST Compliance for eCommerce Sellers

Australian eCommerce businesses earning over $75,000 must register for GST. Even under this threshold, voluntary registration can be beneficial for businesses with large expenses.

Your bookkeeping system must properly track:


	
	GST on sales (10%)
	
	
	GST on purchases
	
	
	Export sales (GST-free)
	
	
	BAS lodgements
	
	
	Marketplace GST rules (e.g., Amazon sometimes remits GST on marketplace facilitator sales)
	


Accurate coding of GST in your accounting software ensures you don&#39;t overpay or underpay your BAS.

3. Managing Expenses and Cost of Goods Sold (COGS)

Expense tracking is vital for maintaining profitability. COGS includes:


	
	Wholesale purchase costs
	
	
	Import and freight charges
	
	
	Customs duties
	
	
	Packaging
	
	
	Manufacturing costs
	


Accurately assigning costs to products ensures you know your real profit margin, not just your sales minus bank deposits.

Automated expense tracking tools can simplify this significantly.

Essential Automations for Ecommerce Bookkeeping

Automation is the key to staying organised and reducing admin time. Below are the most important bookkeeping tasks you should automate.

1. Automated Invoicing and Payment Processing

Although many eCommerce sales involve automatic checkout payments, some businesses still rely on invoices for B2B orders, wholesale customers, or pre-orders.

Automation Benefits:


	
	Eliminates manual invoice creation
	
	
	Sends automatic reminders for overdue payments
	
	
	Ensures GST is correctly calculated
	
	
	Speeds up cash flow
	
	
	Improves customer experience
	


Tools That Help Automate Invoicing:


	
	Xero - auto-generated recurring invoices, online payments
	
	
	QuickBooks Online - automated invoicing workflows
	 
	
	
	Stripe / PayPal - integrated checkout and automated receipts
	 
	
	
	Shopify - automated order confirmation invoices
	 
	


By automating invoicing, you reduce human error and ensure customers receive accurate documentation instantly.

2. Expense Tracking Automation

Manually uploading receipts or categorising expenses is time-consuming. Automated expense tracking reduces data entry and ensures your books stay up to date.

Automation Benefits:


	
	Automatically imports bank transactions
	
	
	Auto-categorises common expenses
	
	
	Captures and stores digital receipts
	
	
	Helps track GST credits
	
	
	Reduces mistakes during BAS reporting
	


Tools That Help Automate Expense Tracking:


	
	Xero HubDoc - scans receipts and bills, auto-publishes to accounts
	
	
	Dext - extracts data from invoices and receipts
	
	
	QuickBooks receipt capture - mobile photo upload and auto-matching
	
	
	Bank feed integrations -  direct imports from Australian banks
	


These tools keep your expense data organised and audit-proof.

3. Inventory Management Automation

Maintaining accurate inventory records is one of the biggest challenges in eCommerce bookkeeping. Manual spreadsheets quickly become outdated, especially when selling across multiple channels.

Why Inventory Automation Matters:


	
	Prevents overselling and stockouts
	
	
	Updates inventory levels in real time
	
	
	Tracks COGS accurately
	
	
	Syncs purchase orders and stock receipts
	
	
	Enables accurate forecasting
	
	
	Helps maintain profit margins
	


Tools That Help Automate Inventory Management:


	
	Cin7
	
	
	Unleashed
	
	
	Shopify Inventory
	
	
	TradeGecko (QuickBooks Commerce)
	


When integrated with accounting software, inventory systems automatically update COGS and stock valuations - eliminating hours of manual reconciliation.

4. Automated Sales Channel Reconciliation

If you sell on platforms like Shopify, Amazon, eBay, or Etsy, reconciling payouts to actual sales can be extremely complicated. Marketplaces deduct referral fees, shipping fees, GST on fees, advertising expenses, chargebacks, currency conversion losses.

Tools that help automate reconciliation:


	
	A2X - the gold standard for marketplace and Shopify reconciliation
	
	
	Link My Books - popular with Amazon and eBay sellers
	
	
	Shopify - Xero/QuickBooks connectors
	These tools group thousands of transactions into clean summaries that match your bank deposits, saving enormous time and ensuring accuracy.
	


5. Bank Feed and Payment Automation

Bank feeds connect your business bank accounts and payment gateways (Stripe, Afterpay, PayPal) to your accounting software.

Benefits:


	
	Real-time visibility of cash flow
	
	
	Automatic transaction imports
	
	
	Easy reconciliation of deposits and fees
	
	
	Reduces admin time significantly
	


For eCommerce businesses with high transaction volume, this automation is essential.

Best Practices for eCommerce Bookkeeping in Australia

1. Separate personal and business finances

Use dedicated business bank accounts and credit cards to avoid mixing transactions.

2. Reconcile weekly

eCommerce activity moves fast. Weekly reconciliations ensure you stay ahead of errors.

3. Track cash flow, not just profit

High sales do not always mean strong cash flow - especially when inventory and ad spend are high.

4. Understand your marketplace fees

Each platform charges different fees that impact your margins.

5. Hire a professional bookkeeper when needed

Automations save time, but a professional bookkeeper ensures accuracy, BAS compliance, and strategic financial guidance.

Conclusion: Automation is the key to sustainable eCommerce growth

Ecommerce bookkeeping doesn&#39;t have to be complicated. With the right systems and automations, such as invoicing, expense tracking, inventory management, and sales reconciliation - you can save countless hours and dramatically improve your financial accuracy.

For Australian small businesses, staying compliant with GST requirements and maintaining clean financial records is critical to long-term success. Whether you&#39;re just starting out or scaling rapidly across multiple platforms, investing in automated bookkeeping tools will ensure your business runs smoothly and profitably.

If you&rsquo;d like help setting up your bookkeeping systems, choosing automation tools, or managing your eCommerce bookkeeping and accounting, our Team at KeyAdmin can help. 
]]></content>
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<pubDate>17 Dec 2025 12:32:00 GMT</pubDate>
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<link>https://www.keyadmin.com.au/blog/tax-planning-strategies-for-small-businesses-128s66</link>
<title><![CDATA[Tax Planning Strategies for Small  Businesses]]></title>
<description><![CDATA[Effective tax planning is essential for small businesses in Australia. Beyond meeting compliance obligations, strategic tax management can help businesses improve cash flow, reduce liabilities, and maximise long-term growth opportunities. The following guide outlines key tax planning strategies for small businesses.
]]></description>
<content><![CDATA[Effective tax planning is essential for small businesses in Australia. Beyond meeting compliance obligations, strategic tax management can help businesses improve cash flow, reduce liabilities, and maximise long-term growth opportunities. The following guide outlines key tax planning strategies for small businesses. 

1. Review Your Business Structure

The structure of a business&mdash;sole trader, partnership, company, or trust&mdash;has a direct impact on tax obligations, flexibility in distributing income and asset protection.


	Companies: Many trading companies qualify as base rate entities (BREs) and are subject to the reduced company tax rate of 25% (rather than 30%), provided aggregated turnover is under $50 million and no more than 80% of income is passive. Dividend distribution and franking credit management should be carefully timed, as the franking rate is linked to the previous year&rsquo;s tax rate.
	 
	Trusts and partnerships: These structures provide flexibility in distributing profits, but they require accurate documentation of resolutions and awareness of anti-avoidance rules.
	 
	Sole traders: While simple and cost-effective, income is taxed at the individual&rsquo;s marginal rate. As profits increase, it may be beneficial to transition to a company or trust structure.


Best practice: Conduct an annual review of your business structure to ensure it remains tax-effective and aligned with your growth plans.

2. Manage Goods and Services Tax (GST) Obligations

GST registration and reporting settings directly affect compliance requirements and cash flow.


	Threshold: Registration is compulsory once turnover reaches $75,000 (or $150,000 for not-for-profits). Voluntary registration may be advantageous where significant GST credits can be claimed.
	 
	Cash versus accrual basis: Many small businesses benefit from accounting for GST on a cash basis, as this aligns liabilities with actual customer payments and avoids remitting GST on unpaid invoices. Eligibility generally requires aggregated turnover of less than $10 million.


Best practice: Monitor turnover regularly and ensure registration occurs as soon as the threshold is exceeded. Where possible, adopt GST accounting methods that complement cash flow.

3. Leverage the Instant Asset Write-Off

For 2025&ndash;26, small businesses with aggregated turnover below $10 million may immediately deduct the full cost of eligible new or second hand assets costing less than $20,000 each. Assets must be first used, or installed ready for use, during the income year. Assets exceeding this threshold must be depreciated under the small business pool rules. Government announcements may extend or amend this measure beyond 30 June 2025, but businesses should rely on current legislation when planning.

Best practice: Structure asset purchases so that individual items fall under the $20,000 threshold and maintain accurate records of business use.

4. Time Income and Deductions Strategically

Taxable income can often be managed through the strategic timing of income recognition and deductions:


	Prepaying expenses (up to 12 months) such as rent, insurance, or software can accelerate deductions into the current year.
	 
	Deferring income&mdash;for example, by issuing invoices after 30 June&mdash;may, where commercially appropriate legitimately reduce current year taxable income.
	 
	Bad debts should be written off before year-end to ensure deductibility.


Best practice: Implement a tax calendar to identify opportunities for managing timing decisions throughout the year.

5. Manage Trading Stock Valuation

Trading stock must be valued at year-end, with businesses able to choose between cost, market selling value, or replacement value. Selecting the most appropriate method may reduce taxable income, particularly for slow-moving or obsolete stock.

Best practice: Conduct a comprehensive stocktake before 30 June and maintain supporting documentation for valuation decisions.

6. Utilise Superannuation as a Planning Tool

Superannuation remains a highly effective tax planning mechanism for both owners and employees.


	The concessional contributions cap increased to $30,000 from 1 July 2024. Employer superannuation guarantee contributions, salary sacrifice, and personal deductible contributions all count towards this cap.
	 
	Unused concessional cap amounts from previous years may be carried forward, subject to eligibility.
	 
	Employers must ensure timely payment of superannuation guarantee obligations to avoid penalties.


Best practice: Track contributions throughout the year to prevent exceeding the cap, and consider superannuation as part of a broader remuneration and retirement strategy.

7. Apply Small Business Concessions

Small businesses may be eligible for targeted concessions:


	Amendment period extension: For assessments from 2024&ndash;25 onwards, small businesses generally have up to four years to lodge amendments.
	 
	Skills and Training Boost: This program ceased on 30 June 2024. Eligible expenditure incurred up to this date can be claimed in the 2024&ndash;25 tax return.


Best practice: Review eligibility for concessions annually and maintain clear records to substantiate claims.

8. Plan Early for Capital Gains Tax (CGT) Concessions

The small business CGT concessions can significantly reduce or eliminate capital gains on the sale of business assets. These include the 15-year exemption, 50% active asset reduction, retirement exemption, and rollover provisions. Eligibility requires careful planning and compliance with detailed conditions, such as the active asset test and significant individual test.

Best practice: Conduct a CGT eligibility review well in advance of any planned business sale or restructure.

9. Monitor Pay-As-You-Go (PAYG) Instalments

PAYG instalments allow businesses to spread tax payments throughout the year.


	If profitability declines or significant deductions arise, businesses can vary instalments downward to align with expected taxable income.
	 
	Conversely, increasing instalments may prevent large tax bills at year-end.


Best practice: Review PAYG instalments each quarter to maintain accurate and manageable tax payments.

10. Substantiate Motor Vehicle and Home Office Claims

The Australian Taxation Office (ATO) frequently reviews claims relating to motor vehicles and home offices.


	Motor vehicles: Individuals may claim using the cents-per-kilometre method (up to 5,000 km per car) or the logbook method (requiring a 12-week logbook). For company-owned or trust owned vehicles, businesses generally need to use the logbook method and consider fringe benefits tax (FBT) obligations where private use occurs.
	 
	Home office expenses: Deductions can be calculated using the fixed-rate method or actual running costs, provided adequate records are maintained.


Best practice: Ensure logbooks and expense records are accurate, up to date, and retained in the event of an ATO review.

11. Strengthen Record-Keeping and Systems

Accurate record-keeping reduces compliance risk and ensures deductions are not overlooked.


	Implement cloud-based accounting systems with bank feeds and digital receipt capture.
	 
	Reconcile BAS and superannuation obligations regularly.
	 
	Maintain current ABN and GST registration details for suppliers.


Best practice: Prepare a year-end documentation pack including reconciliations, stocktake records, and fixed asset registers to streamline tax return preparation.

12. Seek Professional Advice

While small business owners can implement many tax strategies independently, professional advice is valuable when:


	Changing business structures or introducing new investors
	 
	Purchasing or selling significant assets
	 
	Managing trust distributions or Division 7A loans
	 
	Confirming eligibility for small business CGT concessions
	 
	Reviewing PAYG installments.


Best practice: Schedule a mid-year or pre-year-end consultation with a qualified tax agent to identify tailored opportunities.

Conclusion

Tax planning for small businesses in Australia is not about aggressive tax minimisation. It is about aligning financial management with legislative frameworks to achieve sustainable outcomes. By reviewing business structures, leveraging concessions, managing cash flow, and maintaining strong compliance systems, small business owners can significantly reduce tax risk and position their enterprises for long-term success.
]]></content>
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<pubDate>31 Aug 2025 21:56:00 GMT</pubDate>
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<link>https://www.keyadmin.com.au/blog/tax-concessions-for-small-businesses-a-comprehensive-guide-2026-update-128s65</link>
<title><![CDATA[Tax Concessions for Small Businesses: A Comprehensive Guide [2026 Update]]]></title>
<description><![CDATA[Small businesses play a vital role in the Australian economy, contributing significantly to job creation, innovation, and overall economic growth. Recognising their importance, the Australian Government offers a range of tax concessions designed to support small businesses, allowing them to reduce their tax burden, reinvest in growth, and maintain financial stability. This article explores the various tax concessions available to small businesses in Australia and outlines how they can benefit from these opportunities.
]]></description>
<content><![CDATA[Small businesses play a vital role in the Australian economy, contributing significantly to job creation, innovation, and overall economic growth. Recognising their importance, the Australian Government offers a range of tax concessions designed to support small businesses, allowing them to reduce their tax burden, reinvest in growth, and maintain financial stability. This article explores the various tax concessions available to small businesses in Australia and outlines how they can benefit from these opportunities.

What type of business qualifies to receive tax concessions and deductions in Australia?

For most concessions, a small business is generally defined as a business that has an aggregated annual turnover of less than $10 million. There are some concessions for businesses with an aggregate turnover less than 50 million. This threshold is critical in determining eligibility for certain tax concessions. The Australian Taxation Office (ATO) uses this criterion to differentiate small businesses from larger corporations, which are subject to different tax rules and rates.

Key Tax Concessions for Small Businesses in Australia


	
	Small Business Tax Rate
	
	One of the most significant tax benefits for small businesses in Australia is the reduced corporate tax rate. Small businesses with an aggregated turnover of less than $50 million are eligible for a lower tax rate of 25% (as of the 2021-2022 financial year). The standard tax rate is 30% for the 2024-2025 financial year. This reduced tax rate is part of the government&#39;s ongoing effort to support small businesses and stimulate economic growth. The rate applies to all companies, including sole traders and partnerships, provided they meet the turnover threshold.
	 
	
	
	Instant Asset Write-Off
	
	The Instant Asset Write-Off (IAWO) allows eligible businesses to claim an immediate deduction for the cost of purchasing eligible assets, such as equipment, machinery, and vehicles, up to a certain threshold. The current threshold for the IAWO is $20,000 as of the 2024-2025 financial year. This concession enables small businesses to claim deductions for assets they acquire, significantly reducing their taxable income and providing an immediate cash flow benefit.
	
	In response to the economic challenges posed by the COVID-19 pandemic, the government temporarily increased the instant asset write-off threshold to $150,000, but this was phased out in 2021. Businesses that purchased assets under this higher threshold can still claim the deduction, provided they did so during the period when the higher limit was in effect.
	 
	
	
	Simplified Depreciation Rules
	
	Small businesses can also benefit from simplified depreciation rules. Under this regime, businesses can immediately write off the cost of most depreciating assets in the year they are purchased, up to the relevant thresholds. Additionally, businesses can pool their depreciating assets with a cost of less than $1,000 into a single depreciation pool, allowing them to depreciate these assets at 15% in the first year and 30% in the subsequent years.
	 
	
	
	GST Concessions
	
	Small businesses with an annual turnover of less than $10 million are eligible for GST concessions, which include a range of simplifications designed to reduce compliance costs. One key concession is the option to report GST on a cash basis, meaning businesses can pay GST only when they receive payments from customers, rather than when the invoice is issued. This method improves cash flow and helps businesses manage their financial obligations more effectively.
	 
	
	
	Fringe Benefits Tax (FBT) Exemptions
	
	Small businesses may also be eligible for exemptions from certain aspects of Fringe Benefits Tax (FBT), particularly in relation to work-related items provided to employees. For example, small businesses can offer employees items such as mobile phones, laptops, and tablets without incurring FBT, provided the items are primarily used for work purposes.
	
	Additionally, small businesses that provide other minor benefits to employees may be eligible for a FBT exemption if the total value of these benefits is less than $300 per employee in a given year.
	 
	
	
	Pay As You Go (PAYG) Instalment Reductions
	
	Small businesses can apply for a reduction in their Pay As You Go (PAYG) instalments if they experience a significant reduction in income. This allows businesses to adjust their tax obligations to reflect their current cash flow situation, reducing financial strain during difficult periods. The ATO typically requires businesses to demonstrate a decline in income to qualify for this concession.
	 
	
	
	Small Business CGT Concessions
	
	Small businesses can also take advantage of a range of Capital Gains Tax (CGT) concessions when they sell business assets or shares. These concessions include the 15-year exemption, the 50% active asset reduction, the retirement exemption, and the rollover exemption. These concessions aim to reduce the tax liability on the sale of business assets, helping business owners retain more of the proceeds and reinvest them into their next ventures.
	
	For example, the 15-year exemption allows business owners to be completely exempt from CGT on the sale of assets, provided they meet specific eligibility criteria, including having owned the asset for at least 15 years and being over the age of 55.
	 
	
	
	Research and Development (R&amp;D) Tax Incentive
	
	The R&amp;D Tax Incentive is designed to encourage innovation by providing a tax offset to businesses that engage in eligible research and development activities. Small businesses with a turnover of less than $20 million can access a refundable tax offset, which effectively provides a cash refund for eligible R&amp;D expenses. This incentive can significantly reduce the financial burden on small businesses seeking to innovate and improve their products or services.
	


How Small Businesses Can Take Advantage of Tax Concessions

To take full advantage of the available tax concessions, small businesses must ensure they are meeting all eligibility criteria and properly documenting their claims. The following steps can help small businesses maximise their tax benefits:


	
	Maintain Accurate Records: Proper record-keeping is essential for claiming tax concessions. Small businesses should keep detailed records of all transactions, purchases, and income, ensuring they can substantiate any claims made to the ATO.
	 
	
	
	Consult with a Tax Agent: Tax laws can be complex, and it is advisable for small business owners to consult with a registered tax agent or accountant to ensure they are making the most of available concessions. These professionals can also help with planning and strategising for future tax obligations.
	 
	
	
	Stay Updated on Legislative Changes: Tax laws and concessions are subject to change. Small businesses should stay informed about updates from the ATO and other relevant government bodies to ensure they are compliant with the latest regulations.
	


Final thoughts

Tax concessions are an invaluable tool for small businesses in Australia, providing them with opportunities to reduce their tax burden, improve cash flow, and reinvest in growth. The various concessions available &mdash; ranging from reduced tax rates to asset write-offs and R&amp;D incentives &mdash; are designed to help small businesses remain competitive in an increasingly complex economic environment. By understanding and leveraging these concessions, small business owners can not only meet their immediate financial needs but also position their businesses for long-term success.

As always, it is essential for small business owners to seek professional advice and stay informed about changes in tax law to ensure they are fully benefiting from the available tax relief measures.

If you&rsquo;re not sure about what tax concessions are available to your situation then please contact Key Administration Solutions today to speak with a Melbourne-based Tax Accountant providing services across Australia.

CONTACT KEY ADMIN
]]></content>
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<pubDate>27 May 2025 22:34:00 GMT</pubDate>
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<link>https://www.keyadmin.com.au/blog/bookkeeping-101-a-beginners-guide-to-business-bookkeeping-128s64</link>
<title><![CDATA[Bookkeeping 101: A Beginners Guide to Business Bookkeeping]]></title>
<description><![CDATA[Running a successful business involves more than just offering a great product or service&mdash;it also requires maintaining a strong financial foundation. Whether you&#39;re just starting out or have been in business for a while, bookkeeping is one of the most important aspects of managing your finances. In this beginner&rsquo;s guide, we&rsquo;ll cover the basics of business bookkeeping, including what bookkeeping entails, how it differs from accounting, and tips on how to work effectively with a professional bookkeeper.
]]></description>
<content><![CDATA[Running a successful business involves more than just offering a great product or service&mdash;it also requires maintaining a strong financial foundation. Whether you&#39;re just starting out or have been in business for a while, bookkeeping is one of the most important aspects of managing your finances. In this beginner&rsquo;s guide, we&rsquo;ll cover the basics of business bookkeeping, including what bookkeeping entails, how it differs from accounting, and tips on how to work effectively with a professional bookkeeper.

Top 3 Takeaways


	
	Role of Bookkeepers: Bookkeepers handle the day-to-day financial activities of a business, including recording income and expenses, preparing payroll, and maintaining the business accounting systems.
	
	
	Bookkeepers vs. Accountants: Bookkeepers are responsible for recording financial transactions, while accountants analyze these records to provide strategic advice for the business.
	
	
	Hire Early: It&rsquo;s beneficial to hire a bookkeeper early in your business journey. Getting your financial records organized from the start will help you stay tax-compliant and provide a clear picture of your business&rsquo;s financial health.
	


What is Bookkeeping?

At its core, bookkeeping is the process of systematically recording and organizing all the financial transactions of a business. These transactions can include purchases, sales, receipts, payments, and any other financial activity. Bookkeeping ensures that a business has an accurate and up-to-date record of its financial transactions, which is essential for both day-to-day operations and long-term planning.

For small businesses, bookkeeping can often feel like a daunting task, but it is critical for staying on top of cash flow, ensuring tax compliance, and understanding the financial health of your business. Proper bookkeeping also allows you to generate financial statements like profit and loss reports, balance sheets, and tax filings, which are necessary for making informed business decisions.

Bookkeepers vs. Accountants: What&rsquo;s the Difference?

It&rsquo;s common for business owners to confuse bookkeeping with accounting, but while the two roles are closely related, they are distinct.


	
	Bookkeepers focus on the detailed, ongoing process of recording every financial transaction. They maintain the financial records that form the foundation of your business&rsquo;s finances.
	
	
	Accountants, on the other hand, typically analyze the financial records created by bookkeepers and interpret the data to offer strategic advice. Accountants prepare financial statements, tax returns, and help with financial planning, often using the information compiled by bookkeepers.
	


In short, bookkeepers are responsible for the &quot;recording&quot; part of the process, while accountants interpret that data to make financial decisions. While many accountants can perform bookkeeping tasks, not all bookkeepers have the expertise or training to offer strategic financial advice.

Do You Need Qualifications for Bookkeeping?

One of the appealing aspects of bookkeeping is that it can be managed without formal qualifications. If you have a strong understanding of financial data management and are diligent about keeping accurate records, you can handle the task yourself. However, bookkeeping is more complex than just adding up numbers&mdash;it involves understanding different accounting principles, keeping track of business transactions, and ensuring compliance with tax laws.

If you plan to hire a bookkeeper, it&rsquo;s essential to know that while formal qualifications aren&#39;t always required, professional bookkeepers often have certifications and training that help them do their jobs effectively. For example, in some countries, bookkeepers must be registered with regulatory bodies if they are responsible for preparing Business Activity Statements (BAS) or handling complex financial matters like GST (Goods and Services Tax) calculations.

What Do Bookkeepers Do?

Bookkeepers are often referred to as the &quot;financial backbone&quot; of a business because they manage critical tasks that ensure the business runs smoothly. Some of the key responsibilities of a bookkeeper include:


	
	Manage Accounting Systems: Bookkeepers set up and maintain accounting software, keeping the records of transactions and financial activities current. They also help organize invoicing and make sure payments are processed accurately and on time.
	
	
	Process Transactions: Bookkeepers handle the entry of all business transactions, including invoices, receipts, and payments. They ensure that the financial data is accurate and that all transactions are properly categorized and recorded.
	
	
	Manage Payroll: Bookkeepers are often responsible for calculating employee salaries, including tax deductions and benefits, and issuing paychecks. They also ensure that payroll records are accurate, up-to-date, and compliant with tax regulations.
	
	
	Prepare Financial Statements: Bookkeepers generate regular financial reports, such as profit and loss statements and balance sheets, which provide an overview of the business&#39;s financial health. These reports can help identify trends, make business decisions, and prepare for tax season.
	
	
	Reconcile Accounts: Bookkeepers regularly reconcile bank statements with company records to ensure that no discrepancies exist. This involves checking that the business&rsquo;s account balances match what is recorded in the books.
	
	
	Manage Loans and Debt: Bookkeepers track any loans or outstanding debt and ensure that repayments are being made on time. They keep records of loan balances, interest payments, and due dates.
	
	
	Calculate GST and Prepare BAS: For businesses that are registered for GST (Goods and Services Tax), bookkeepers help calculate the tax owed and prepare the Business Activity Statement (BAS), ensuring compliance with tax laws.
	
	
	Prepare Financial Forecasts: Bookkeepers can assist with forecasting future revenues and expenses based on historical data, which helps with planning for growth, capital needs, or expansion.
	


When Should You Hire a Bookkeeper?

While it might seem tempting to handle your own bookkeeping, there are significant advantages to hiring a bookkeeper early on in your business&rsquo;s lifecycle. Here&rsquo;s why:


	
	Get a Strong Start: A bookkeeper can help you establish solid financial practices right from the beginning, ensuring that your records are accurate and organized.
	
	
	Save Time and Avoid Mistakes: Bookkeeping can be time-consuming and complex, especially as your business grows. A professional can help you avoid common mistakes that could cost you in the long run.
	
	
	Ensure Tax Compliance: A bookkeeper can help ensure that your business stays compliant with tax regulations, avoiding costly penalties or audits down the line.
	
	
	Focus on What You Do Best: As a business owner, your time is best spent focusing on growing and managing your business. By delegating bookkeeping to a professional, you can focus on what matters most.
	


Many bookkeepers are available for freelance or part-time work, allowing you to hire them as needed. This can be especially useful during the early stages of your business when financial demands fluctuate.

How to Work with Your Bookkeeper

Building a strong working relationship with your bookkeeper is key to ensuring your financial records are properly maintained and your business&rsquo;s finances stay on track. Here are a few tips on how to work effectively with your bookkeeper:


	
	Clarify Terms and Expectations: Clearly outline your expectations and what specific services you need from your bookkeeper. This can include bookkeeping tasks like reconciling accounts, payroll, and tax preparation. Discuss the frequency of updates, reporting deadlines, and costs upfront to avoid misunderstandings later.
	
	
	Establish Communication Preferences: Whether you prefer emails, phone calls, or even a shared online workspace, establishing clear communication guidelines is essential for a productive partnership. Regular communication will help you stay updated on your financials and ensure any issues are addressed promptly.
	
	
	Schedule Regular Meetings: Even if your bookkeeper works remotely, regular meetings (either monthly or bi-weekly) are crucial to discuss ongoing tasks, review financial reports, and address any concerns you may have. Regular check-ins help keep everything organized and ensure that your bookkeeping is always up to date.
	
	
	Keep Your Records Organized: Provide your bookkeeper with organized records of all business transactions. Whether it&rsquo;s receipts, invoices, or financial statements, having all the necessary documents ready will help your bookkeeper do their job more efficiently.
	


Final Thoughts

Bookkeeping is essential to running a business effectively, and while it might seem intimidating, getting the basics down can set you up for long-term success. By understanding the role of a bookkeeper and knowing when to hire one, you can ensure that your financial records are organized and compliant with tax regulations. Moreover, if you do hire a professional, having a strong partnership with your bookkeeper will help your business thrive.

Remember, good bookkeeping practices not only help you maintain accurate financial records but also provide a clear picture of your business&rsquo;s financial health. By staying on top of your bookkeeping, you&rsquo;re setting your business up for growth, success, and continued financial stability.
]]></content>
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<pubDate>30 Jan 2025 17:29:00 GMT</pubDate>
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<link>https://www.keyadmin.com.au/blog/how-to-calculate-your-bas-gst-128s51</link>
<title><![CDATA[How to Calculate Your BAS &amp; GST]]></title>
<description><![CDATA[Managing your BAS is an important part of bookkeeping and critical to the continued existence of any Australian business. However, understanding BAS can be a challenging task if you&rsquo;re a small business owner or new to running a business.

At Key Admin, we provide complete coverage of how to calculate BAS, GST, and everything else you need to know for tax time. Full knowledge of filing key business reports can help ensure your business stays compliant while helping you get concessions where possible.
]]></description>
<content><![CDATA[Managing your BAS is an important aspect of bookkeeping and critical to the continued existence of any Australian business. However, understanding BAS can be a challenging task if you&rsquo;re a small business owner or new to running a business.

At Key Admin, we provide complete coverage of how to calculate BAS, GST, and everything else you need to know for tax time. Full knowledge of filing key business reports can help ensure your business stays compliant while helping you get concessions where possible.

As a business owner juggling many tasks, you may sometimes find yourself scratching your head. If you want to prevent errors leading to penalties and wish to focus on running your business, you should consider hiring a registered BAS agent to complete the task for you.

What is BAS?

The Business Activity Statement (BAS) is a comprehensive tax report you submit to the Australian Taxation Office (ATO) monthly, quarterly or yearly. Businesses complete the BAS to report and pay Goods and Services Tax (GST) and all other relevant business taxes. Every Australian business registered for GST needs to lodge the form at the ATO.

The ATO mandates BAS as a tax reporting requirement and has been allowing small businesses to use a simpler BAS system since 2017, making the process easier and faster. Managing BAS can help business owners monitor business finances: tracking your income and expenses lets you calculate GST and other BAS liabilities.

The option of quarterly submissions in BAS means you can break down a bigger job of tracking with the convenience of doing the submission four times a year. You can use the quarterly method to your advantage, for making minor adjustments, including setting aside the right amount of money for payment and making observations a few times a year. Since you&rsquo;re collecting money for the ATO daily, tracking the activity can help you understand the likely tax liability.

A BAS form serves several purposes, including reporting and paying:


	
	Goods &amp; Services Tax (GST)
	
	
	Pay-As-You-Go (PAYG) Income Tax Instalments
	
	
	PAYG Withholding Taxation 
	
	
	Fringe Benefits Tax (FBT) Instalments
	
	
	Fuel Tax Credits 
	
	
	Wine Equalisation Tax (WET) 
	
	
	Luxury Car Tax (LCT)
	


What is GST?

GST stands for Goods and Services Tax, which applies to the prices of most products and services in Australia. Your business collects the current rate of 10% GST for the government any time you sell your items or services and receive revenue in return.

The collected GST is used by the government in various public works and development. It is eventually distributed across states to help pay for infrastructure and public services, such as public schools, roads, hospitals etc.

GST came into existence in July 2000, replacing multiple levies, duties and taxes by the state and federal governments. Customers who are the end-users of products and on the receiving end of a transaction are the ones paying GST.

Despite the levying of GST,  most basic foods, some medical, health products and some education courses happen to be GST-free for ease of the consumer. In addition, as a small business owner it may help to know that selling a business as a going concern is GST-free as long as conditions for GST-free sale are met.

After registering for GST, the ATO sends you a BAS form to complete which makes bookkeeping, BAS preparation and lodging less complicated. Some other perks of BAS GST reporting also include:


	
	Fewer GST classification codes
	
	
	No need to split your purchases into non-capital and capital
	
	
	GST-taxable and non-taxable purchases are a single bookkeeping entry
	
	
	Setting up accounting software is easy and automation effortless
	


Who is Eligible for BAS and GST?

Only those who register for GST are eligible to submit BAS. Plus, you only register for GST once&mdash;even if you&rsquo;re operating multiple businesses.

However, the good news is that not everyone has to register for GST unless:


	
	Your business is generating a minimum gross income of over $75,000 a year
	
	
	You&rsquo;re running a non-profit organisation with a gross income of over $150,000 a year
	
	
	You are a Taxi driver or individual offering rideshare services regardless of the turnover&mdash;or whether you rent or own the vehicle
	
	
	You intend to claim future fuel tax credits
	


Businesses under the threshold can register for GST voluntarily as well. However, failure to register and collect GST can land you in legal difficulty and GST registration comes with both benefits and extra conditions to consider. So if you&rsquo;re not yet eligible, weigh your options before registering for GST.

If you are eligible for GST, take note of the timelines of registration:


	
	You have 21 days to apply once you reach the required threshold
	
	
	You must stay registered for a minimum of 12 months
	


Registration is unnecessary if your business is in its early stages. But it&rsquo;s a legal requirement to register for GST once the money comes in. After registering for GST and an Australian Business Number (ABN), the ATO will let you know when to lodge your BAS. You can check out the link to the ATO Business Portal for further information and access to GST registration.

What are BAS Timelines &amp; Due Dates?

You have specific lodgement dates that you need to meet for quarterly returns. The BAS due dates applicable for the 2024/25 financial year are:


	
		
			
			Quarter
			
			
			Quarterly Return Periods
			
			
			Due Date Before
			
		
		
			
			1
			
			
			1 July 2025 to 30 September 2025 
			
			
			28 October 2025
			
		
		
			
			2
			
			
			1 October 2025 to 31 December 2025
			
			
			28 February 2026
			
		
		
			
			3
			
			
			1 January 2026 to 31 March 2026
			
			
			28 April 2026
			
		
		
			
			4
			
			
			1 April 2026 to 30 June 2026
			
			
			28 July 2026
			
		
	



The BAS payment due dates depend on your reporting cycle, and your business&rsquo; annual GST turnover determines the cycle. Small businesses with less activity to report usually have quarterly or annual payment dates.

Other business size considerations include:


	
	Businesses with an annual GST turnover of $20 million and less report quarterly&mdash;unless the ATO informs them otherwise
	
	
	An annual GST turnover of over $20 million means your BAS is due monthly
	
	
	Businesses that voluntarily register for GST and have a turnover of less than $75,000 report annually&mdash; whereas the limit for not-for-profit organisations is $150,000
	


BAS GST Cycles

For better understanding, also keep the following timelines in mind when managing BAS. 


	
	Quarterly: Businesses on a quarterly BAS schedule have the next due date on the 28th day of the month after the financial quarter. However, the second quarter that ends in December has the reporting deadline for February.
	



	
	Monthly: Business lodging monthly BAS have the next due date on the 21st day of the following month.
	



	
	Annually: Businesses that fall into the annual BAS due dates category have up to 31st October. A business that doesn&rsquo;t need to lodge a tax return has a due date of 28th February after the annual tax period.
	


Changing Your GST Payment Cycle

You can change your GST cycle depending on your circumstances. Some reasons for changing the cycle include:


	
	You are experiencing GST turnover changes
	
	
	You are opting to report and pay using a different cycle
	
	
	After a natural disaster
	
	
	When the date falls on a public holiday or weekend
	


Changing the cycle early in your lodgement period allows for commencing the new schedule right away. Otherwise, the new cycle takes effect at the start of the next quarter or year.

How to Do BAS

Once you clearly understand BAS, GST, their eligibility and timeline, the next step is to calculate GST and to do a BAS statement&mdash;which we explain separately here.

Hiring a BAS agent for this task can help extend deadlines for GST &amp; BAS, which is not the case if you choose to submit BAS on your own. If you have BAS lodgements running late, you can consider outsourced bookkeeping services as a viable option.

Calculating GST

Businesses have various methods of recording and calculating GST. Some prefer comprehensive excel spreadsheets, while others are comfortable using payment and invoicing systems.

Keep an eye on your GST calculations for BAS statements with the ATO GST Calculation Worksheet. The worksheet is ideal if you don&rsquo;t have software generated BAS forms and want a link from the BAS return and accounting system reports. You don&rsquo;t have to lodge it with your BAS, but can file it with a copy of the BAS it is relevant to. The worksheet is for filling out online though some browsers don&rsquo;t allow this. Instead, you can download the form to your desktop, open it with a PDF viewer, and fill in the fields. Print the complete file and file it with your records.

Businesses can also calculate GST directly from their accounting records. The formula for finding GST is P x 0.1 = G, where P is the original price, G is the GST amount, and 0.1 is the converted form of 10%.

The GST reporting and payment periods are mentioned in the BAS and as discussed previously, your schedule can be monthly, quarterly, or annually. To make things easier, you can also use this GST calculator to work out your GST.

Accounting Method

A critical part of the BAS calculation is the accounting method you&rsquo;re using. The two methods for calculating your GST are cash and accrual.

The cash accounting method involves tracking cash flows [cash inflow and outflow from your business]. This strategy does not require recording the invoice cost until you pay for it. Plus, you don&rsquo;t record a sale until you receive payment on an invoice you send out.

The accrual accounting method records sales and expenses as they take place, instead of when cash changes hands. For example, the invoice you send out on Monday appears in your books the same day&mdash;even without receiving the money. An accrual account shows how much amount is owed and what you owe others.

The best method for your business depends on:


	
	The business size
	
	
	Complexity of transactions
	
	
	Accounting and bookkeeping resources you have
	


Accounting for GST using the cash accounting method considers the transactions you&rsquo;ve made and you should choose this method if you run a small business that handles cash. Accrual accounting is more complicated and suitable for businesses that don&rsquo;t receive payments right away. The system helps track the true financial position of your business because you have a clear picture of the money you owe and owed to you. Use this method if you&rsquo;re running a business that handles contracts and large transactions and use the first tax period when you issue the invoice relating to a sale or payment when accounting for GST.

Preparing BAS

BAS is personalised to each business, depending on your GST registration details. So, you must report using the form you receive from the ATO.

Fortunately, most BAS lodgement occurs online. This method makes it easy to get help while completing the form. You also get an extra two weeks to lodge and pay your quarterly BAS when you lodge online.

Make sure to include the following minimum information for a simple BAS:


	
	The GST amount you owe (or are claiming)
	
	
	The PAYG tax you withhold from your salary and wages of employees
	
	
	GST payment variations in case of mistakes in a previous BAS or when accounting for cancelled sales, rebates, and bad debts
	
	
	PAYG tax payment from an error during in an earlier return
	
	
	The total amount you are remitting to the ATO
	
	
	Additional: Larger businesses may also report on Fringe Benefits Tax, Luxury Car Tax, Wine Equalisation Tax and Fuel Tax Credits.
	


You can prepare BAS in several ways, including:


	
	Calculate and report quarterly&mdash;An option for all quarterly businesses. You calculate and report the GST labels in your BAS and pay GST each quarter. 
	
	
	Calculate quarterly and report annually&mdash;You calculate and pay the GST amounts quarterly, but report only the collected and paid GST annually. 
	
	
	Pay instalment amount and report annually&mdash;The method lets you pay the ATO mandated GST amount in quarterly instalments. The ATO expects you to complete and lodge an annual GST reconciliation report. 
	
	
	PAYG income tax instalment&mdash;Pay-As-You-Go instalments you pay in incremental amounts towards your end-year income tax liability. 
	


What are BAS Errors and Adjustments?

Rectifying a mistake on your previous BAS differs from an adjustment. A BAS error or mistake is when you enter the wrong amount during lodgement. An adjustment is a change in purchase or sale that was correct at the time of lodging.

Examples of BAS mistakes are:


	
	Categorising a GST-free purchase or sale as taxable
	
	
	Counting some purchases twice
	
	
	Errors while exporting or typing in the data
	
	
	Classifying a taxable purchase or sale as GST-free
	


Examples that require an adjustment include:


	
	When the price of a purchase or sale changes
	
	
	When you return the goods or a customer cancels their purchase
	


You can fix a BAS error or mistake using your next BAS or you can revise the original form. For example, fuel tax credit and GST mistakes are correctable using the next BAS. However, you&rsquo;ll need to lodge a revision if you cannot correct the error in the next BAS.

What&rsquo;s Next?

Through this detailed guide, you now have a solid understanding of how to prepare and calculate your BAS, including reporting GST and claiming credits on your business expenses.

However, lodging your BAS correctly is just as important as calculating it. Even small errors can lead to penalties, missed credits, or unnecessary stress. Instead of navigating the ATO portal alone, let a registered BAS and Tax Agent ensure everything is accurate, compliant, and optimised for your business. With professional support from us, you can save time, reduce risk, and gain peace of mind knowing your BAS is handled properly.
 

BOOK YOUR BAS CONSULTATION WITH US

 
]]></content>
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<pubDate>30 Aug 2024 03:03:00 GMT</pubDate>
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<link>https://www.keyadmin.com.au/blog/christmas-gifts-for-employees-tax-deductions-gst-fbt-128s55</link>
<title><![CDATA[Christmas Gifts for Employees: Tax Deductions, GST &amp; FBT]]></title>
<description><![CDATA[Are you thinking of appreciating your employees this Christmas with a gift or a company party and wondering how to not struggle with tax implications?
]]></description>
<content><![CDATA[As the Christmas season approaches, you might be busy looking for gifts for your family and friends. If you&#39;re an Australian business owner, it may also be time to plan a good gesture for your employees. Perhaps you&rsquo;re thinking of appreciating them this Christmas with a gift or a company party and wondering how to not struggle with tax implications?

Here&rsquo;s a simple guide on understanding tax deductions and how to reduce your tax bill with all the expenses coming up this Christmas and New Year season.  

Are Christmas Gifts to Employees Tax Deductible?

As per the Australian Taxation Office (ATO), Christmas gifts for staff can be divided into two categories: Entertainment and Non-entertainment.  



Non-Entertainment Gifts

Gifts under $300 (including GST) are fully tax deductible, can claim any GST credits and no FBT applies. Gifts over $300 (including GST) are tax deductible, and can claim GST and FBT is payable. Some examples for the type of gifts are as below:


	
	Company merchandise
	
	
	Christmas hampers
	
	
	Gift vouchers and gift cards
	
	
	Flowers, clothes, beauty products
	
	
	Perfumes, sport watches
	
	
	Bottle of wine
	


Entertainment Gifts

Gifts under $300 (GST inclusive) are not tax deductible, no GST claimable and no FBT applies. Gifts over $300 (GST inclusive) are tax deductible, GST claimable and FBT liability applies. Some examples of entertainment benefits are as below:


	
	Fancy dinners and drinks
	
	
	Concert, theatre or movie tickets
	
	
	Sporting event tickets
	
	
	Flight or accommodation for holiday
	
	
	Club memberships
	


Also note that gifts for customers, suppliers and volunteers are also a deductible expense, so long as they are not excessive or overly valuable. This is not clearly defined, so we advise that you exercise conservative judgement when making a call regarding the value of the gift. Also remember, gifts that are not an Entertainment expense are treated more favourably. 

Are your Company Christmas Parties Tax Deductible?

If you are planning to arrange a Christmas party for your employees and are concerned about how tax can be deducted, make sure you remember these tips. 

Your staff Christmas party is tax deductible, only if:


	
	It is held on your business premises &amp; held on a working day (no weekends or public holidays)
	
	
	It is held for current employees, volunteers, customers, and suppliers only 
	
	
	It is provided finger food or a light meal, no alcohol
	
	
	No employee associates are present (e.g. spouses, children, etc.)
	
	
	The cost of the party is less than $300 per person
	


As a small business, it can be challenging to stay on top of all tax terms and exemptions regarding staff gifts and Christmas functions. If you need further assistance with your taxes, please contact us to learn more about our tax agent services. We look forward to supporting you.
]]></content>
<guid isPermaLink="true">https://www.keyadmin.com.au/blog/christmas-gifts-for-employees-tax-deductions-gst-fbt-128s55</guid>
<pubDate>06 Dec 2023 02:48:00 GMT</pubDate>
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<link>https://www.keyadmin.com.au/blog/how-tax-deductions-work-for-small-business-128s54</link>
<title><![CDATA[How Tax Deductions Work for Small Business]]></title>
<description><![CDATA[Tax deductions are amounts a company deducts as business expenses to reduce its tax liability. Tax liability is the amount of tax a business will owe from its net income. Tax deductions help small...
]]></description>
<content><![CDATA[Small business owners have the advantage to reduce their tax liability with tax deductions from varying tax-deductible expenses. Tax deductions are amounts a company deducts as business expenses to reduce its tax liability. Here, tax liability is the amount of tax a business will owe from its net income. Tax deductions help small businesses lower tax bills by reducing their net income.  

The Australian Taxation Office (ATO) requires businesses to report income and settle tax liability periodically or face penalties for not meeting ATO tax guidelines. This is why it&#39;s very important to get advise from a registered tax agent.

However, small businesses may find tax complexities daunting, and while also managing small business operations, are left with little time to maximise their tax benefits. Follow this guide to small business tax deductions that can help you make the most of your tax time.

What Are Small Business Expense Categories?

Different expense categories allow small businesses to identify the costs they can deduct from their annual revenues. Not all expenses are tax-deductible, so it is crucial to use a bookkeeping system to categorise expenses. 

The different types of expense categories include:


	Start Up Expenses [incurred if business is being started from scratch and can include licensing, registration and legal fees]
	Advertising &amp; Marketing Costs
	Business Transport &amp; Vehicles
	Payroll &amp; Employee Benefits
	Training &amp; Organisational Development
	Research &amp; Development
	Meals &amp; Recreational Expenses
	Office Supplies
	Depreciation
	Utilities [electric, water, phone, internet]
	Rent
	Insurance
	Loan Interest Payments
	Other [professional service, repairs, softwares, subscriptions, shipping]


Costs allowed by the ATO as tax deductible can include some operating expenses and capital expenses:

Operating Expenses


	Office Supplies
	Office Space
	Wages
	Utilities
	Depreciation
	Hardware and Software
	Training &amp; Organisational Development
	Advertising and Marketing


Day-to-day expenses include most expenses the business has to conduct business. Meals and entertainment expenses may be included in this if they are not personal.

Capital Expenses


	Machinery and Equipment
	Insurance
	Land and Property Development


Capital expenses are considered long-term expenses. A tax accountant is skilled in categorising and placing the current term expenses from this in the accounting books &ndash; some capital expenses, such as a vehicle purchase, can be expensed all at once or through a process called depreciation. 

Tax Deductible Expenses for Small Business 

The ATO defines deductible expenses as expenses that result in revenue from operations and has a set of requirements for record-keeping for all tax reporting. It is strict about identifying personal and business expenses and following these rules:


	
	No private expenses can be deducted. They must be for business-related reasons only.
	
	
	Mixed expenses, where the expense is used privately and for the business, such as a car, must be divided based on the percentage of use. Therefore if you use a truck for business twenty-five percent of the time and the rest for personal use, you can only deduct twenty-five percent of its value as a tax-deductible expense. 
	
	
	Expenses cannot be arbitrary. You must have records to prove the cost occurred and that the expense is related to business. 
	


 Consider the following tax deductible expenses for your business:

Tax Depreciation Incentive 

The ATO introduced a tax depreciation incentive that gives businesses special incentives to help them cover the impact of the coronavirus pandemic. Incentives can be applied in four areas. Businesses should apply them to maximise their deduction potential:


	Temporary Full Expensing
	Instant Asset Write-Off
	Backing Business Investment
	General Depreciation Rules


1. Temporary Full Expensing 

Temporary full expensing (TFE) allows businesses in Australia to take a break from the cost of a depreciating asset in the first year of its use or installation. 


	A small business must have less than five billion dollars in aggregated turnover (total income of the small business) and be a tax entity that meets the alternative income test. 
	Small businesses can take this expense for the financial years 2020-21, 2021-22, and 2022-23.
	TFE covers new assets obtained or installed between October 6, 2020, through June 30, 2023. Assets secured, used, or installed in the same date range are eligible. 
	The ATO also allows assets that were improved during the same period to be deducted. These assets must have been owned before October 6, 2020.


2. Instant Asset Write-Off 

The instant asset write-off incentive encourages small business owners to write off new and used depreciating assets as a tax deduction. The rule applies to assets in the year it was first used or installed for use. 


	The instant asset write-off allows multiple assets to be included if the total of those assets is less than a threshold determined by the ATO based on the business type.
	Assets purchased between October 6, 2020, to June 30, 2023, are not eligible for instant asset write-off. 
	Additional qualifications must be met to use the instant asset write-off incentive. Your aggregated turnover must be below $500 million.


This incentive is similar to TFE. If an asset does not qualify for TFE, instant asset write-off is the next incentive small businesses should consider. The asset must be purchased by December 31, 2020, and first used or installed before June 30, 2021 in that case. 

The ATO applies thresholds for businesses that apply simplified depreciation rules in their accounting for assets. These thresholds are measured by the aggregate turnover and date range of the asset&#39;s purchase.

Not all assets are eligible for this incentive and there are also additional limitations such as car limits. You should consult a tax professional to determine your thresholds.  

3. Backing Business Investment

The ATO allows small businesses to deduct the cost of new depreciating assets by following accelerated depreciation rules &ndash; this is where small businesses deduct the cost of a new asset from the year of purchase or installation for use in the standard depreciation deduction method over the years after the purchase or installation. 


	Businesses that do not use the simplified depreciation method can opt out of backing business investments but must notify the ATO on their tax returns. 
	Small businesses with an aggregate turnover of less than $500 million are eligible to use this deduction. 
	The deduction is only available for the financial years 2019-20 and 2020-21. 
	The asset cannot be held or owned by another company except for trading stock. 
	The asset must be held on or after March 12, 2020, used or installed on or after March 12, 2020, through June 30, 2021. 
	Assets such as second-hand depreciating assets, certain production assets, and assets that will never be located or used primarily in Australia, or acquired before March 12, 2020, are not eligible. 


4. General Depreciation Rules

The general depreciation rules follow traditional depreciation deduction procedures. These rules apply when instant asset write-offs or simplified depreciation incentives are not eligible. 


	The deduction amounts will be based on the asset&#39;s life. 
	Some specifications are required based on how the asset was acquired:
	
		Businesses that gain new assets that have never been used can choose between the prime cost method or the diminishing value method of depreciation. 
		If an asset is purchased from a previous owner, the method used by the previous owner must be used by the new owner until the depreciation is exhausted. 
	
	
	The prime method must be used for certain intangible assets. 


Use the depreciation and capital allowances tool on the ATO website to calculate and compare which method works best for your business. Different rules for different assets could change how the general depreciation can apply, such as improvements to buildings or assets used in mining exploration. 

Prepaid Expenses 

The ATO website defines prepaid expenses for small businesses as expenses incurred for work to be done gradually or totally over a future time or a set date within a later financial year. Prepaid expense deductions cannot be taken for expenditures completed in the current financial year. 

The expense types are the same as regular expenses allowed during a current financial year. For example, building a structure for business operations is an allowed expense. If that structure takes five years to build, the cost becomes a prepaid expense for the portion of the build that has not taken place in the current financial year. 

Prepaid expenses can only be claimed during the time of the expenditure. Using the previous example, a business cannot deduct prepaid expenses for year six if the expenditure was completed in year five. 

Business Travel Expenses

Business travel expenses can be deducted for you and your employees for travel expenses related to operating the business. Record keeping is crucial to accurately track small business costs. The ATO recommends you keep a business travel diary &ndash; this helps you remember when parts of a trip are for business purposes. The ATO has restrictions on business travel expense deductions. 


	Small business owners can claim airfare, train, bus, taxi, ride-share, or metro train fares. 
	Private car hire fees or rental car expenses are deductible. 
	Business owners and employees can deduct fuel, toll, and parking expenses. 
	If you are away overnight, hotel accommodations and meals are tax deductible but some overnight stay restrictions apply.


The ATO restricts businesses from including personal affairs conducted during a business trip. Trips to see family or business travel expenses strategically planned around holidays will face restrictions. Therefore do not include costs such as gifts and souvenirs as business expenses, as these do not qualify. Start-up travel costs may not apply as well. The business must be in operation before travel expenses can be taken. 

Costs for employee travel must be managed carefully. If employees pay for expenses themselves, they will deduct this from their tax filings unless you have reimbursed them for the expense. 

Fringe benefits taxes incur if a business travel expense is associated with leisure &ndash; this is common for lavish sales trips to popular tourist areas. While the trip may be for business, there are fringe benefits that should be reported to the ATO. 

This is usually claimed in income tax returns excluding the GST paid in case GST is claimed as credit on the Business Activity Statement [BAS].

Business Vehicle Expenses

Motorised vehicles can be a business expense tax deduction. If a business needs the vehicle to carry out its operations, all or a part of the vehicle can be expensed. The small business must own the vehicle through a direct purchase, a lease, or a rental agreement. 

Businesses can expense cars that carry less than nine passengers and a load of less than one tonne. Other vehicles, such as motorcycles, utility trucks, vans of one tonne or more, and passenger vans or trucks that carry nine passengers or more are also included.

Certain entity types can claim expenses for vehicles offered for employee use. These are separate for vehicles used primarily for operations. Usually, executives are given employee-use vehicles. Along with the vehicle itself, a business can claim:


	Fuel and Oil
	Repairs and Maintenance
	Loan Interest 
	Insurance Premiums
	Registration 
	General Depreciation


General Operating Expenses

These are simple deductions related to the day-to-day operations of your business that help in generating business income. The ATO provides guidelines on what general operating expenses can be included in your annual tax filing. Operating expenses can be current or prepaid.

Operating expenses include advertising, public relations, tender, and other transaction fees and expenses, uncollectible accounts receivables, legal and other professional expenses, such as accounting, governmental fees, taxes owed, and insurance premiums. In addition, building and car leases, payroll, office maintenance, and supplies are included. Consult with a tax professional for all eligible operating expenses for your business. 

Home Office Expenses

If you run your business from home, the ATO allows special provisions for home office expense deductions. These provisions apply to business owners who are self-employed or run an entity from home and employees who work for an entity from their own homes. 

Employees must conduct most of their work duties from home, and their work must be significant. Answering emails or taking calls does not qualify. 

Employees can deduct additional expenses when working from home, such as:


	Operating Costs: electricity, heating and cooling, office equipment, depreciation of office equipment, internet and phone expenses. 
	Occupancy cost: interest on mortgage, rent, house insurance premium
	Travel costs for travelling between home and other work related locations


A home-based business is different from an employee who works from home. If your small business has employees that work from home, the employee can take the deductions mentioned above. However, the small business cannot. The small business can expense equipment and reimbursements they&#39;ve provided to the employee to conduct their job. 

If a business owner runs a home-based business, similar to employees, they can deduct a range of expenses such as office equipment, utilities, and some depreciation on equipment. In addition, home-based business owners can deduct occupancy expenses such as rent, mortgage interest, lease costs, and other property taxes. 

Home-based businesses can also include motor vehicle expenses for trips from the home to business-related destinations. Home-based businesses do not have to register at the home address. The ATO defines home-based businesses as those that are worked at home [primary place of work] or worked from home [offering services at other premises or people&rsquo;s houses but storing tools at or performing bookkeeping from home]. 

Capital gains tax may still have to be paid if the small business owner sells their home and GST needs to be excluded again if eligibility for input tax credits for GST is there.

Salary &amp; Super Contributions

Salary and super contributions are considered payroll expenses. The ATO has an expansive payroll reporting process. You can deduct employee wages, your wages as a self employed  sole trader, and contributions to employee superannuation costs. 

A sole trader is a business owner who operates with no other members, partners, or employees. The sole trader would take an expense for wages paid to themselves through their tax filing. The ATO doesn&#39;t consider sole traders to have payroll. Any &quot;payments&quot; you make as a sole trader to yourself or your bank account are considered an equity withdrawal. The same rules apply to partnerships.

If your business is an entity however, it can pay wages to owners if those owners are on the payroll. Your wages as an employee of the entity can be deducted as a payroll expense. 

Bad Debt Write-Off

Bad debts are accounts receivables, or payments from sales owed to you by a customer that cannot be collected. The ATO qualifies bad debt based on how the account receivable is removed from your assets. 

Certain provisions, except payment, must apply, such as a debtor&#39;s balance being released or waived. The debt is removed through the accounting reconciliation process done by your bookkeeper or accountant. It is important to write of all bad debts for the tax year as this can prevent that debt to be considered as taxable income and owner will not be required to pay taxes on this amount

Bad debts can be expensed if the debt is too old to legally pursue, the debt has been sold to a private company, or if other agreements release the debtor from the debt.

How to Claim Your Tax Deduction?

Each entity can claim expenses in a variety of ways. Every entity does not enjoy the same tax small business deduction benefits. Here is the lowdown for small business tax deductions for dummies.


	Sole Traders can claim deducted expenses in individual tax returns under the business and professional items section. They cannot deduct payroll expenses because they do not pay wages. Sole traders who perform as personal services (PSI) are limited in many small business tax deductions that can be expensed that other sole traders could. Generally, sole traders can deduct home-based operations or facility expenses, leaves, rents, cost of goods sold, and general operating expenses. 
	Partnerships can claim expenses in their partnership tax returns. They are similar to sole traders: they cannot deduct payroll wages and can deduct expenses related to general operations. 
	Trust and Companies are treated as stand-alone entities that can claim expense deductions in their trust or company tax return. They can claim payroll expenses, the cost of goods sold, and all other general operating expenses. 


All entity types must file annual tax filings with the ATO.   

Get Expert Advice

As you grow your business, you will need proper and timely record-keeping to ensure you maximise your tax deduction and improve your small business savings. Hire a bookkeeping service or tax professional to help document, record, and reconcile your account accurately to get the correct deductions on your business taxes. 
]]></content>
<guid isPermaLink="true">https://www.keyadmin.com.au/blog/how-tax-deductions-work-for-small-business-128s54</guid>
<pubDate>18 Sep 2023 06:37:00 GMT</pubDate>
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<link>https://www.keyadmin.com.au/blog/how-to-set-up-payroll-for-a-small-business-128s53</link>
<title><![CDATA[How to Set Up Payroll for a Small Business]]></title>
<description><![CDATA[Payroll involves paying employees timely and fairly, accounting for and reporting tax, superannuation, and any other deductions required by law. Payroll can be considered an expansive part of...
]]></description>
<content><![CDATA[When running a small business, owners often must depend on their understanding of accounting and financial basics to avoid the risks of inaccurate accounting, including the concept of payroll. 

Payroll is about more than issuing a paycheck to an employee. Payroll involves paying employees timely and fairly, accounting for and reporting tax, superannuation, and any other deductions required by law.

Payroll can be considered an expansive part of accounting and is an important task for any small business that has hired employees. It can not be overlooked as it may eventually impact business operations through unsatisfied employees, as well as delayed payroll, tax and profit reporting.

This guide will teach you how to set up a small business payroll and can help small business owners like you in keeping track of their payroll process so that your company remains compliant.

What Factors Impact Payroll for Small Businesses? 

Every small business owner should have an answer to some key questions when setting up payroll for their business. These questions can impact how the small business approaches payroll. Taxes, employment laws, the employee and the scope of their job function can all impact payroll. 

It is important to consider:


	
	Whether the nature of employment is casual, part-time, temporary, contractual or permanent. 
	
	
	Whether the hired individuals are employees or independent contractors.
	
	
	What the pay schedule is like [daily, weekly, bi-weekly, monthly].
	
	
	How the record keeping and tracking of employee&rsquo;s work and pay are ensured.
	
	
	Whether wage requirements and other entitlements as per employment law are being met.
	
	
	What the tax and superannuation obligations are.
	


The Federal Government collects the income tax from citizens and as employment income is the most common income in the world, governments have set up regulations &amp; tax rates to collect income taxes timely and accurately. However, they cannot do this alone and require employers to manage this process through a process called payroll deduction.

Employment laws determine how small business owners can manage their employees, including how they are to be paid and the minimum wage they are paid. The Australian government requires a minimum wage under the Fair Work Act 2009. This act is always active and reviewed annually. Therefore, it is also essential that a small business owner remains educated on changes to current laws. 

The type of employee impacts how you manage payroll. An employee can be a permanent employee or a temporary employee. Their salary range also affects reporting requirements. 

Payroll also generates a lot of paperwork. Employees receive pay stubs from you. Payroll produces much supporting documentation that you&rsquo;ll need to complete tax filings. It&rsquo;s a good rule to hold onto payroll records for seven years or more. Not only does this help you, but it also helps your employees. You may need to reference hard files of payroll records such as the employee&rsquo;s paychecks in the future. 

Payroll Compliance in Australia 

Australia has several compliance factors for payroll. These cover minimum wage, paid holidays, leave policies, and record keeping. Many of these regulations are common in most countries, and small business owners must abide by these to be compliant. 

National Employment Standards 

The National Employment Standards (NES) are a set of entitlements employers must make available to employees. There are currently eleven: 


	
	Maximum Weekly Hours
	
	
	Flexible Working Arrangements
	
	
	Ability to convert to permanent employment status
	
	
	Parental Leave
	
	
	Annual Leave
	
	
	Personal Care Leave/Family Leave
	
	
	Community Service Leave
	
	
	Long Service Leave
	
	
	Public Holidays
	
	
	Termination Notice/Severance Pay
	
	
	Fair Work Information/Casual Employment Information Statements
	


Small businesses must provide these rights to their employees or risk facing penalties. Four key aspects have been explained below:


	
	Maximum Weekly Hours
	


Employers cannot unreasonably request that employees work more than thirty-eight hours a week.


	
	Leave
	


There are five leave standards under the NES. Employees&rsquo; rights based on their tenure are parental, annual, and long service leaves. Community service, personal care, and family leaves must be provided regardless of the length of employment tenure. 


	
	Public Holidays
	


Public holidays are awarded to employees based on the Australian territory they work in. The territory affects how much the employee is compensated for them.


	
	Termination Notice/Severance Pay
	


Employers must provide written notice to an employee about termination or layoff. There are exceptions to consider. In addition, the notice period is based on the business industry. 

Accurate Record Keeping

Small business owners should always keep business records, and payroll &amp; employee records are at the top of the list. Australia mandates employee records to be kept for seven years.

Examples of NES records that must be kept are:


	
	Pay, Leave, and Hours Worked
	
	
	Expense Reimbursements
	
	
	Workers&rsquo; Compensation Information
	
	
	Superannuation Contribution
	


In line with these requirements, small business should record the following employee information:


	
	General details [such as full name, bank account number, start date, employment type and status]
	
	
	Leave details [taken leaves vs accrued leaves]
	
	
	Pay and payroll schedule details [pay rate, gross pay, pay period, bonus or other allowances]
	
	
	Work hours [starting and finishing hours, work hour flexibility if any, over time]
	
	
	Super details [amount paid, dates paid on, fund name]
	


Payroll information should also include your payroll schedule and pay period records. Pay slips should be accurate and show deductions, gross pay, and the employee&rsquo;s pay rate. If an electronic deposit is set up, keep records of bank account information, and any authorisation forms the employee signed for direct deposit.  

Recording leave details can prove as evidence in employee related disputes and also provide an audit trail that will safeguard you from liability or issues related tax deposits.

Modern Awards

Modern awards are a part of the NES. They set standards for how employers are to pay employees and manage how and when they work. The list of modern award entitlements are:


	
	Pay
	
	
	Hours of Work
	
	
	Rosters
	
	
	Breaks
	
	
	Allowances
	
	
	Penalty Rates
	
	
	Overtime Pay
	


The national workplace relations system accounts for employees covered under modern awards. Some awards are unavailable for specific pay ranges and industries. 

Small business owners must follow Australia&rsquo;s standard for modern awards. Some circumstances affect how a business complies with modern awards, such as if the company is covered by a registered agreement, which is similar to an employment contract. In the absence of a registered agreement, Modern Awards rules are followed.  

Payroll Tax &amp; Other Deductions

Payroll tax and other deductions are a primary reason for payroll management. Proper payroll management protects the business from a compliance failure. Since tax and deductions reporting is time sensitive, and the Australian government requires them to be reported and paid in the correct period, it is necessary to manage payroll records. 

This is where Single Touch Payroll (STP) plays a role. STP is a government-led payroll tool that makes it simpler for small business owners in Australia to manage their payroll deductions and meet deadlines. STP is now mandatory for all businesses in Australia. 

With STP, businesses can report required information about employees to multiple government agencies through one portal. 

In addition to the STP registration, businesses in Australia must register for Pay as You Go (PAYG). PAYG is a system that facilitates tax payments to the ATO. Small businesses in Australia are required to register for PAYG tax withholding before they make a payment subject to withholding. 

The benefit of the PAYG for business is that it allows the end-of-year anticipated tax bill to be paid in installments throughout the year. The ATO will notify all companies that are required to issue tax payments periodically. It is important to register your employer identification number [the Australian Business Number] which can help you avoid PAYG on payments you receive.

PAYG also has a withholding system for employee or contractor wages. This system helps businesses collect and pay taxes to the ATO on behalf of the employee. 

Payroll tax is different from PAYG and is classified as a state tax calculated on the total wages paid each month. Your eligibility to pay this tax depends on whether your total wages paid are over the tax free threshold for your respective state, which you can easily check through the State&rsquo;s Revenue Office website.

Payroll Solutions for Small Business

Payroll management and reporting has evolved over the years, along with the accounting process. Manual reporting and spreadsheets are an age-old, tried-and-true method for managing payroll, but most businesses now use accounting software and apps. Even though small businesses can manage payroll through these manual recording methods with spreadsheets for calculations and filing cabinets for hard copies of records, this may require much oversight since errors are more likely to occur. 

The key benefits of using payroll software or running online payroll are access to automation tools and integration with bank accounts and other stakeholders involved in the process. Some softwares also make it easier to collect information from employees electronically, while also supporting filing of taxes and tax returns.

As businesses grow, they eventually turn accounting management over to a dedicated bookkeeper or bookkeeping service. Bookkeepers are specially trained to work on accounting transactions which include payroll. However, because a bookkeeper manages end-to-end accounting, they will need to be up to date with the changes in Australian payroll and labor laws.

An effective way a small business can ensure its payroll is managed correctly is to outsource it to a payroll provider. Payroll providers specialize in processing payroll and will remain current on changes to the payroll requirements in Australia. 

Set Up Payroll for New Employee

As a small business with in-house payroll, once you are comfortable with payroll basics, you can refer to this payroll checklist for onboarding a new hire:


	
	Collect and verify employee personal information: Full name, date of birth, and taxpayer number. This can be collected from the employee application, identification verification, and any applicable tax forms the employee submits. 
	
	
	Set up qualifying entitlements and awards and ensure they meet the NES. Review the employment contract, job description, and working hours to determine what entitlements and awards the employee should receive. 
	
	
	Determine the employee&rsquo;s tax liability and super requirements. Use the super tool and tax form as a guide.
	
	
	Set up STP. This can be done through the ATO website. 
	
	
	Track hours and issue pay slips on time to the employee. Pay slips should be recorded and stored for future reference. 
	
	
	Conduct monthly accounting processes to reconcile payroll with the business bank account. Use an accounting system, bookkeeper, or payroll administrator to help facilitate the reconciliation. 
	
	
	Use PAYG to verify payroll records of employee withholdings reconciled with PAYG payments.
	
	
	Any discrepancies should be updated in your payroll system. Keep track of records and changes for seven years.
	


Final Word

As a small business grows, the owner may need help to handle all payroll tasks. With so many requirements to be met with payroll in Australia, a company can easily make mistakes and miss regulatory actions. 

Small businesses must create a straightforward process to set up and run payroll. Given how time-consuming payroll can get, it may be a better solution to hire a payroll service to do the work and ensure you maintain compliance. A payroll service provider can work with employees directly and help the small business owner focus on other aspects of business continuity.
]]></content>
<guid isPermaLink="true">https://www.keyadmin.com.au/blog/how-to-set-up-payroll-for-a-small-business-128s53</guid>
<pubDate>18 Sep 2023 05:42:00 GMT</pubDate>
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<link>https://www.keyadmin.com.au/blog/bookkeeping-basics-for-small-businesses-128s52</link>
<title><![CDATA[Bookkeeping Basics for Small Businesses]]></title>
<description><![CDATA[Small business management requires oversight of every aspect of the business. Getting an accurate overview of a business&rsquo;s financial health is a vital part of decision-making, and that is precisely where bookkeeping comes into play.

Here are important bookkeeping basics that can help you decide between double-entry vs. single-entry bookkeeping, understand the benefits of bookkeeping, and learn key bookkeeping steps to keep your finances in order.
]]></description>
<content><![CDATA[Running a business is no easy task. As a small business owner, you&rsquo;re responsible for overseeing every part of your operation&mdash;and one of the most important areas is your financial health. That&rsquo;s where bookkeeping comes in.

Bookkeeping is the process of recording all financial transactions within your business. This includes everything from sales and expenses to invoices, payroll processing, loans, and more. Accurate records provide a clear picture of how your business is performing and help support better decision-making.

While bookkeeping can be complex, especially for small business owners in Australia - understanding the basics is essential, even if you plan to outsource your work to a bookkeeping service. A solid grasp of common processes and terminology will help you stay informed and in control.

Below, we&rsquo;ll cover key bookkeeping fundamentals, including the difference between single-entry and double-entry systems, the benefits of good bookkeeping, and the essential steps to keep your business finances on track.

Why Does a Small Business Need Bookkeeping?

1. Financial Tracking: Bookkeeping keeps track of how much money goes in and out of a business. This way, once you add up the total numbers of payments and total revenue, you can see your business&rsquo;s cash flow management and how much cash on hand you have. A proper Bookkeeping system also helps small businesses track  income, expenses, and overall financial transactions in an organized way. If you have a dispute with a supplier or customer, having a clear trail of transactions can make it much easier to see who&rsquo;s at fault. You can also double check any data entry or accounting errors.

2. Compliance: Accurate, consistent bookkeeping is essential for governmental compliance, audits, disputes, fraud detection, and more. Small businesses must adhere to tax laws and regulations. Proper bookkeeping ensures accurate financial records, making it easier to file taxes correctly and avoid penalties or audits. No business wants to hand over messy books to the Australian Taxation Office (ATO) for audit. BAS compliance is important, so stay on top of your books to get the most out of your tax returns.

3. Budgeting &amp; Decision Making: Bookkeeping enables businesses to create realistic budgets, set financial goals, and make informed decisions about investments and expenditures. Timely access to financial data allows small business owners to make informed decisions about pricing, inventory management, and resource allocation. Not only this, but the insights gained from bookkeeping can lead to strategic decisions, which help businesses adapt to changing market conditions and seize opportunities.

4. Business Growth: As a small business grows, its financial complexities increase. Effective bookkeeping helps manage this growth by providing data to secure loans, attract investors, and make expansion decisions. If you have any investors, they will want data reflecting business continuity and progress, which starts with bookkeeping. Lenders and creditors often request financial statements before extending credit. Accurate bookkeeping increases a small business&#39;s creditworthiness and ability to secure financing.

To summarize, your business may need bookkeeping for:


	
	Making management decisions [including sound planning and budgeting]
	
	
	Providing financing to the business [e.g. through bank loans or private investors]
	
	
	Filing Tax Returns and ensuring BAS compliance
	
	
	Identifying errors, wrong payments or potential fraud
	


Basic Considerations for Small Business Bookkeeping

So you&rsquo;ve decided to get serious about bookkeeping for your small business. Now you just have to determine how to keep your books. You need to make many decisions, such as what entry system you&rsquo;ll use, how you&rsquo;ll keep track of invoices and bills, how to keep your financial information straight, and more.


	
	Bookkeeping Method: Single vs. Double Entry
	


Single-entry bookkeeping is where you record the financial transaction once. This method is straightforward and you should only use it if you have very few uncomplicated business transactions. Since you record the transaction only once, a mistake in the data entry can be tough to catch, so this method is not recommended for most businesses.

On the other hand, double-entry bookkeeping transcribes financial transactions twice. Since most financial entries in businesses affect at least two accounts, this accounting method is ideal.

You record the transactions in two different accounts that balance each other out. For example, if you buy $2,000 worth of inventory, you debit your inventory account and credit your accounts payable or cash account. Since you record the transaction twice, it is easy to spot errors, as the number of credits should always match the number of debits.

It&rsquo;s recommended to use double-entry accounting for most businesses, so take your time to learn the ins and outs. It&rsquo;s more complicated than single-entry bookkeeping, but it&#39;s a far more accurate method of accounting that gives you a better look at your business&rsquo;s finances.


	
	Accounting Method: Cash Accounting vs. Accruals Accounting
	


Now you need to decide on your accounting method. 

Cash accounting is simple &mdash; too simple for most businesses. You record financial transactions as they happen which gives you a picture of the cash you have in your till but does not reflect the money that is owed to you or you have to pay others.

When a client pays you, you enter it in, regardless of the date the invoice was sent. When you pay your bills, you log into your ledger, regardless of when the bill&rsquo;s due. However, this accounting method is far too basic for businesses that need to separate income that is due vs that which is received and bills that have been paid vs those that have been incurred but need paying in the future.

This is where accrual accounting comes in. Accrual accounting makes sure to record revenues as they are earned, and expenses as they are incurred. It lists invoices, future payments to me made or received, and other important information for the future and does not simply depend on cash flows. 

The accrual method of accounting takes into consideration the accounts receivable and the accounts payable, so when a transaction occurs, but no money is involved, you instead either debit the transaction to accounts receivable or credit to accounts payable. These entries are then reversed when you finally pay or receive the actual payment.


	
	Separating Business and Personal Accounts
	


A business needs a business bank account; that should be the first thing you do after trademarking your business name. You then take your business information to the bank to open your business account and receive an Australian Business Number (ABN).

So why is a business account necessary? 

You must keep your business&rsquo;s financial information separate from your personal financial information. You don&rsquo;t want to sift through months of transactions filled with coffee receipts and gas station fill-ups.

Plus, separate accounts help prevent liability if something goes wrong with your business e.g. a lawsuit, bankruptcy or liability claims. Legal entities like corporations need their separate accounts to do business transactions legally. Depending on your business type, a business account might be lawfully necessary, if not a choice.


	
	Digital vs. Manual Bookkeeping
	


Bookkeeping is a leftover term from when people kept business financial records in books, known as ledgers. In the pre-digital age, these hard copy general ledgers kept all of a business&rsquo;s information and financials in one place for the owner&#39;s inconvenience.

While you can keep doing this, there has no doubt been a massive shift towards digital bookkeeping that allows for automated recording of transactions and other accounting calculations. You&rsquo;re likely wasting time and money if you aren&#39;t using technology to improve your bookkeeping practices.

It is recommended to store the information digitally, like with Microsoft Excel, even if you choose to keep your own books and not go for advanced bookkeeping tools that can depend strictly on the budget available. Store the information in a secure place that only you can access, like on a secure cloud or with secure passwords in place.


	
	Accounting Systems Software &amp; Programs
	


Digital and cloud-based accounting is the way to go, especially if you&rsquo;re opening a business today. However, you can go further and get technology geared explicitly towards bookkeeping.

Bookkeeping software automatically fills out balance sheets, creates financial statements, and performs routine tasks. It&rsquo;s usually equipped with double-entry accounting and compliant with organization standards suitable for BAS statements and for the ATO.

Accounting softwares and tools like MYOB, Xero, and Quickbooks, all have options for small business owners. They are easy to use, save time, and keep accurate financial records.

How To Do Bookkeeping for Small Business?

For successful and regular bookkeeping, you need to take crucial steps to set up your books and keep them updated and accurate well into the future.


	
	Account for Each Transaction
	


Transactions happen in businesses daily, and you need to record each one. This can help you determine your profit, and carefully recording transactions prevents potential disputes with customers.

You need to understand your business&rsquo;s cash flows and revenue, so keep careful track of every transaction in a physical ledger, an excel spreadsheet, or bookkeeping software.

By additionally using a POS (point-of-sale) system, you can set up transactions to record automatically with bookkeeping software. POS systems usually include registers or bank accounts that update when you get paid. Bookkeeping systems have access to these and automatically record any transactions.

Getting an accurate end-of-day picture of your business&rsquo;s cash inflows and outflows is convenient, while additionally categorizing your transactions as personal and business expenses will help you when tax season rolls around and also support in making inaccurate EOFY financial reports.


	
	Reconcile Transactions
	


An important part of bookkeeping is reconciling transactions between books and bank accounts. Reconciling is to match transactions and numbers recorded in your books in comparison to what is recorded in your bank statements.

Bank reconciliation is integral to bookkeeping, so you should reconcile the bank accounts and books as often as you need to. At the minimum, you must reconcile your books at least once a year for tax season, but you can do it monthly, weekly, or daily depending on how many transactions you do.

It is typical for the bank accounts to not perfectly match the books due to delayed reflection of deposits, payments, interest due to other banking procedures. You can then adjust the books by reviewing bank statements and credit card transactions to see if the transactions match your books. 


	
	Update Accounts Receivable
	


Accounts receivable means open invoices and other sources of income that you expect to come in but haven&rsquo;t yet. Understanding earned and received income is essential to your business&rsquo;s financial health.

Accounts receivable are the heart of your business&rsquo;s revenue and cash flows, so keeping them accurate and updated is one of the more critical tasks of bookkeeping. Moreover, timely invoicing and reminding customers about unpaid invoices is also an essential role of bookkeeping. This includes dating invoices, keeping track of due dates, and taking action after a certain deadline for payments has crossed.


	
	Update Accounts Payable
	


No less critical than accounts receivable, accounts payable is the money going out of your business to suppliers, bills, and whatever else your business needs to pay to run.

Much like accounts receivable, accounts payable is future payments for a transaction that has already occurred [i.e. raw materials received but not paid for]. The money hasn&rsquo;t left your business yet, but it will need to be paid eventually. Again, updating and keeping your accounts payable accurate is important for a clear picture of your costs, revenues and cash flows.

Another vital role of accounts payable is to stay on top of purchase orders and maintain good relationships with suppliers and vendors. After all, clients that don&rsquo;t pay on time develop a bad reputation and can lose out on key suppliers.


	
	Manage Payroll
	


Employees are the beating heart of any business, but come at a cost and don&rsquo;t just work for a pat on the back. Managing payroll is another essential part of bookkeeping that helps keep the business running smoothly.

Payroll means paying employees on time and handling any onboarding or offboarding settlements. Updating employee information, providing payslips, calculating and withholding tax, meeting payroll superannuation obligations and other employee benefits are all handled through the payroll. This also includes updating payroll reports and checking to see if your payroll software is in working order which is especially important for making tax payments to the ATO.


	
	Prepare for Financial Reporting
	


One of the best benefits of rigorous bookkeeping is that it&#39;s much easier to prepare for financial reporting &mdash; you have all the required data at your fingertips.

Annual financial statements should include balance sheets, income statements, and cash flow statements. Balance sheets report all company assets, income statements list all of your income and its sources as well as the expenses incurred, and cash flow statements state the amount of cash and cash equivalents going in and out of a company,

Doing your taxes requires gathering financial reports and information. Accurate financial reporting will guarantee accurate BAS &amp; GST calculations, getting you the most back in your tax return. Tax season which also marks the end of the fiscal year, isn&rsquo;t just when you report your income to the government. It&rsquo;s also an excellent time to review your growth over the last year and set new goals for your business.

Final Word

Bookkeeping is integral to any small business as recording financial information is essential for making decisions. So whether you choose single or double-entry, cash or accrual accounting, or even if you decide to go old-school with manual bookkeeping, ensure you&rsquo;re following the correct bookkeeping process and account for all financial transactions. Keep your accounts updated, reconcile your bills, and pay your employees on time to keep your business up and running. 

As your business grows, you may find you&rsquo;re unable to keep up with the bookkeeping all by yourself, and may need to outsource to a bookkeeping service. Hiring a bookkeeping service will free up your time for other essential business considerations while providing you with seamless service to keep your books in order as your business continues to flourish.
]]></content>
<guid isPermaLink="true">https://www.keyadmin.com.au/blog/bookkeeping-basics-for-small-businesses-128s52</guid>
<pubDate>15 Sep 2023 06:49:00 GMT</pubDate>
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<link>https://www.keyadmin.com.au/blog/15-must-know-bookkeeping-checklist-items-for-business-128s50</link>
<title><![CDATA[15 Must-Know Bookkeeping Checklist Items For Business]]></title>
<description><![CDATA[Small and medium-sized businesses must maintain specific bookkeeping processes for efficiency. Since staffing is often limited in smaller companies, businesses can have a lot on their plate and it can be easy to overlook some crucial financial responsibilities. 

Having a checklist to ensure that everything is well accounted for can be the difference between success and failure for your small business. With a bookkeeping checklist on hand, you get to keep your focus where you need it the most: your sales revenue. 
]]></description>
<content><![CDATA[Small and medium-sized businesses must maintain specific bookkeeping processes for efficiency. Since staffing is often limited in smaller companies, businesses can have a lot on their plate and it can be easy to overlook some crucial financial responsibilities. 

Having a checklist to ensure that everything is well accounted for can be the difference between success and failure for your small business. With a bookkeeping checklist on hand, along with a professional bookkeeper, you get to keep your focus where you need it the most: your sales revenue. 

A checklist is a resource that will help you in several ways:


	
	Your business will stay organized.
	
	
	You can understand your financial position quicker 
	
	
	You can identify errors in the business flow earlier 
	
	
	You will have the required information prepared when hiring a bookkeeper.
	


Try incorporating our take on the daily, weekly, monthly, and yearly checklists in your business with these important bookkeeping checklist items and bookkeeping tips.

Daily Bookkeeping Checklist

1. Cash-on-Hand Review

Each morning, start the day with a quick check of your cash on hand. It is wise to keep enough money available to cover unforeseen situations that may arise. 

Cash on hand is the cash accessible by the business. It includes both your bank account and your petty cash in the office. Having a daily habit of reviewing your cash position will make you prepared to handle unexpected expenses. 

Keeping cash flow documented is imperative. You should note any payments made to or from the petty cash or other accounts as soon as possible to account for any cash imbalances. Finish the day with a second review to ensure the information is accurate and current. This also prepares you better for the next business day.

2. Account For Daily Expenses and Revenues

You should make time to record all revenue and expenses daily. Having these records will keep you up to date to check against your cash on hand. In case of a mismatch, you will be able to remedy it before it gets out of control. 

Proper cash flow management will make your business more prepared for the days to come. Neatly annotate all inflow and outflow, like bills paid and the daily sales totals, which will help keep your accounts up to date.

The bookkeeping software your company uses is likely to offer comprehensive reports. Use this tool to verify that the accounts match the official numbers. Proper bookkeeping keeps you apprised of where the accounts stand when business begins.

3. Categorize Transactions

A business has more than one expense and often more than one income stream. Categorizing transactions provides a way to see at a glance where things are headed and to better manage finances.

The main category heads for daily evaluation are credit and debit: income and expense. Expenses may include utilities, rent, raw material, or parts whereas income may be sales or service revenue. 

Breaking down transactions and categorizing them in records can help in three ways:


	
	Easier to claim and reduce tax on business expenses when owners have categorized personal and business expenses
	
	
	Owners or managers can keep a check on the distribution of payments and receipts across categories and see if there&rsquo;s any that can be increased or cut down for profit.
	
	
	Preparation for audits or end-of-fiscal-year (EOFY) reports
	


Weekly Bookkeeping Checklist

1. Review Bills

Every business has bills to pay. Keeping on top of upcoming bills and their deadlines will prevent overdue payments and late fees. It will also boost the company&#39;s reputation when it pays its bills on time.

Some of the bills that you should go over include:


	
	Rent: If your company leases a physical location, paying rent before it is due is favorable.
	
	
	Utilities: Electricity, water, phone &amp; internet service are all crucial to running a business. A physical location without power or loss of internet service can severely impair business communication.
	
	
	Insurance premiums: A liability unmanaged can cost a small business a lot. Maintaining insurance to prevent bankruptcy can be indispensable to some companies. 
	
	
	Credit cards and debts: Pay loans and credit cards promptly to improve the business&#39;s credit. 
	
	
	Vendors &amp; Suppliers: Make sure to pay your key accounts payable within the time as well to maintain your credibility and secure future support.
	


2. Send Invoices

Day-to-day business can often get in the way of invoicing clients on time. You can&#39;t blame the customer whose payment was overdue because of a missed invoice. Additionally, an invoice reminder for unpaid invoices may become necessary.

Check for both paid and unpaid invoices to be sure you have recorded them properly and sent them promptly. Customers dislike getting second reminders for invoices they have already paid. They also dislike making late payments for invoices they did not receive as it can impede their own process flows.

Note payment terms when assessing invoices. Clients need to know when to pay and what form the payment should take. Make sure to include payment methods and your process to handle debt collection when discussing invoices.

3. Check For Open Purchase Orders

Open purchase orders (POs) are orders that are in process but are not yet invoiced. It is not a bill or a payment until it is a closed PO and you have completed the transaction. An open PO may be due to partial fulfillment of an order or recently placing an order with a vendor.

Recording open POs will help small business owners have an accurate picture of expenses, while making sure correct journal entries are recorded only when the PO has been closed. Owners can also identify if there are any unusual delays in the PO closure on part of vendor or the business itself and take action accordingly.

4. Reconcile Bank Accounts

Reconciliation is the next step once bills have been reviewed, invoices sent and recorded, and POs and vendor deposits dealt with.

Reconcile bank and credit card accounts by verifying that your journals match the bank. Match starting amounts, income, outgo, and ending amounts (making adjustments for outstanding transactions).

Look for errors such as a missed entry or a double transaction which are easy to make but not always easy to find. Additionally, you should be looking for failed transactions and watching out for any financial activity that could be problematic in the case of an audit or security check.

Even though it is commonly a monthly practice for larger businesses, it would help a small business to reconcile accounts and credit cards weekly and adjust for any errors to avoid error build-up that may be difficult to trace at month end.

Monthly Bookkeeping Checklist

1. Update Bookkeeping Software

Using accounting software can be a lifesaver for a small business. Think about how time consuming it would be to search a physical ledger for a sale instead of having a software handy. 

However, using old, outdated software is worse than none at all. Security vulnerabilities and technical incompatibilities cause myriad problems if the software is not updated regularly. 

Keep in mind to also update the data regularly .A fully and timely updated software will produce accurate reports and financial statements for use. Businesses should check for any missing transactions, category heads, and other changes and make sure to record them to the software.

2. Update Payroll

Payroll is an integral part of every business. The government has regulations that you must follow when preparing payroll. Managing payroll can be daunting for businesses as they onboard new employees.

Every month, update payroll reports and check that you have met superannuation and payroll obligations. Other elements that you need to include are:


	
	Update new employee details
	
	
	Record and provide payslips
	
	
	Make payroll tax payments.
	
	
	Report to ATO using Single Touch Payroll.
	


Payroll is a need for any business that has employees. Using the right tools and keeping on top of it makes the job easier.

3. Review Inventory

Managing and tracking inventory is crucial for business success. As a small business owner, you want the right amount of inventory. Too much can cause issues in storage or spoilage, while too little can cause a loss of sales.

Timely inventory management limits shortage and excess problems. It can be useful to account for stock requirements for the coming months - which can then trigger a timely order process across the supply chain.

Try to invest in a resourceful inventory management tool where you can input each item and any variations. The right software provides credible reports to predict upcoming stock requirements and reviewing them monthly can keep your company on top of things. 

4. Check Up On Aged Receivables

Aged accounts receivables are customer invoices that have not yet been paid. Send reminders to your accounts receivables about past-due invoices to encourage timely payment. When checking these invoices, look out for missed invoices or doubled charges, and take appropriate corrective measures. 

The amount of aged receivables present at a time can be an indicator of financial health and the lack of timely payments can create problems in the cash flows of a small business. Default by a debtor indicates that you should reconsider dealing with that company. Reviewing aged receivables monthly and use them to choose who you do business with to maintain future cash flows.

EOFY Bookkeeping Checklist

1. Clear Year-End Debt &amp; Invoices

Finishing up the fiscal year means finalizing information for annual reports. Your business will want to prevent carryover through debt settlement and payment collection. Check for unpaid invoices from vendors and unpaid invoices to customers and contact them as needed.

Double-check the receipts and invoices to ensure you have accounted for them all. Make sure you have categorized and filed them properly to find them easily in case of an audit. 

The less you carry over to the next fiscal year, the better off you will be. Once you have finished settling things, you can prepare your annual financial reports.

2. Prepare &amp; Review Financial Reports

With all the transactions settled, you are ready to create your yearly financial reports. Your key financial statements include:


	
	Balance sheet
	
	
	Cash flow
	
	
	Changes in net worth
	
	
	Income statement
	
	
	Shareholder equity
	


Some companies include a list of financial goals for the upcoming fiscal year as well. You can see the progress of the business in achieving the goals set at the end of the previous fiscal year and prepare for the upcoming year appropriately.

3. File Tax Returns

The end of the fiscal year also indicates the time to calculate BAS &amp; GST, and file taxes. Your tax accountant will need the financial reports and supporting documents for this task. 

By this time of the year, a small business should have some taxes already accounted for. These taxes may include:


	
	Capital gains tax
	
	
	Fringe benefits tax
	
	
	Sales tax (GST)
	
	
	Income tax
	
	
	Pay As You Go (PAYG) withholding tax
	


Filing tax returns for tax paid throughout the year, can be beneficial in two ways: a tax claim on business expenses and possible tax concessions.

As a heads up, make sure you choose your tax agent wisely. Check the Tax Practitioners Board to verify that the tax agent is legitimate. More importantly, be vigilant about tax refund scams and check for scams on the government scam alert website to stay informed and aware.

4. Backup Files

While computers are a wonderful asset, consider the effects of a catastrophic malfunction. If you lost your financial information, could you recover it? Keep financial information safe through proper backup and secure storage.

Data that needs enhanced security can include:


	
	Customer data
	
	
	Financial information
	
	
	Registration details
	


Make sure to encrypt digital documents. You can then store the encrypted files in cloud-based storage, on an external hard drive, or on a flash drive. The latter two options should join your printed information in a locked cabinet for safekeeping and future use.

Final Word

Using a bookkeeping checklist can improve the efficiency of your financial processes. Feel free to use our provided checklist as an aid for your small business bookkeeping needs.

If you&rsquo;re still a bit rattled, you could also hire a bookkeeping service to guide you better and provide you with a worry free bookkeeping experience so you can focus on achieving your core business goals.
]]></content>
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<pubDate>24 Jun 2022 01:54:00 GMT</pubDate>
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<link>https://www.keyadmin.com.au/blog/myob-vs-xero-which-is-best-128s49</link>
<title><![CDATA[MYOB vs XERO: Which is Best?]]></title>
<description><![CDATA[MYOB (Mind Your Own Business) and Xero, are both accounting software packages. They both provide great accounting solutions but which one is best for your business?

While both account software packages offer pros &amp; cons it depends on how your business is set up that will decide which one is best for you. 

For example, how big is your business? How many employees do you have? Are you managing a great intake of stock, sales, orders, or do you have a service-based business? All of these factors, and more, need to be taken into consideration to establish which accounting software package is the most suitable for your business.

Ultimately it&rsquo;s best to speak with a professional bookkeeper who can help you decide on what accounting package is best for you and your specific business needs.
 
]]></description>
<content><![CDATA[MYOB (Mind Your Own Business) and Xero, are both accounting software packages. They both provide great accounting solutions but which one is best for your business?

While both account software packages offer pros &amp; cons it depends on how your business is set up that will decide which software integration is best for you. 

For example, how big is your business? How many employees do you have? Are you managing a great intake of stock, sales, orders, or do you have a service-based business? All of these factors, and more, need to be taken into consideration to establish which accounting software package is the most suitable for your business.

Ultimately it&rsquo;s best to speak with a professional bookkeeper who can help you decide on what accounting package is best for you and your specific business needs, and whether you would do well with XERO bookkeeping services or MYOB bookkeeping.

XERO

Let&rsquo;s start with Xero. This is an easy to use cloud-based accounting solution which works great for small businesses. 

Xero is a basic accounting system that creates automation of small business processes, meaning you can get on and do what you do best, and that isn&#39;t filing receipts, writing out invoices, and chasing payments.

How Much Does Xero Cost?

There are three plans within Xero. The Starter plan, the Standard, and the Premium 5.

The Starter Plan is really that, a plan if you are just starting out and won&#39;t be doing many transactions. Ideal for the sole trader with no employees. This plan can be quite limited as the number of invoices you can produce is restricted to 20 per month, and the number of bills to just five.

The Standard Plan is a better option if you have one or two employees and you see your business expanding in the near future. 

The Premium 5 Plan is the one for you if you have between 2 and 5 employees and need more capacity for the payroll, reconciliations, and are maybe dealing with more than one currency.

There are also a multitude of add-ons, which can be added to any of these plans, so really can be tailored to suit your business. 

Xero connects to your bank account so matching payments are made automatically. It also corresponds to your Accountant, or Bookkeeper, making the end of year accounts much easier. Xero comes with several ready-to-use charts for cash flow, transactions, and accounts, making it simple to manage your company&#39;s finances. There are even expense tracking features built-in.

Quotes are converted into invoices. Filing Tax Returns becomes a breeze. Following up overdue payments is automated. You can keep track of your money - whether it&#39;s coming in or going out, in one glance. As there is the Xero Mobile App, this can be done anywhere at any time.

MYOB

MYOB is a more established company than Xero, and has a good track record. Like Xero, MYOB has several tiers to choose from, so you can get the best fit for your business at a price that meets your needs.

How Much Does MYOB Cost?

MYOB is split into two main tiers of Essentials and Accountright. The system is a modular design, so the various applications can be added to create a bespoke model specifically tailored for your specific business needs.

The Essentials and the AccountRight are effective and simple to use accounting systems, similar to Xero, and are great for small to medium size businesses. The Essentials would be good for a start-up business with less than 5 employees. The AccountRight can manage up to 30 employees. 

From this information alone, you can see we are already into the larger companies than what Xero is suitable for.

Each of the Essentials and AccountRight plans have stepped versions, with each step providing slightly more advanced tools than the previous.

Once a business is getting up to the 30 employees range, they should be looking at more than just an accounting solution. This is where the Enterprise Resource Planning solution comes in, (the ERP). Larger companies need to go with an ERP solution to help manage day-to-day business activities in addition to just the accounting.

ERP systems connect a variety of company operations and allow data to move between them. ERP solutions avoid data duplication and ensure data integrity by gathering and collaborating an organisation&#39;s shared transactional data from numerous sources. This is an appropriate solution for companies with multiple departments and a requirement to provide multifaceted reports.

ERP systems are essential for the management of these businesses to be able to operate as smoothly and efficiently as they do.

The MYOB Exo and Advanced plans are completely integrated ERP and HRM (Human Resource Management) systems.

The MYOB Advanced is the only cloud-based option, so provides more flexibility than the alternatives. The Advanced allows the user to have visibility across their entire business.

MYOB Advanced is the top of the line option for MYOB. The Advanced brings real-time business insights with flow between the functions. It can build reports as required. Essentially this is the system required if you are looking to future-proof your operation.

MYOB Advanced has two Suites, MYOB Advanced Business and MYOB Advanced People.

MYOB Advanced Business is the ERP management system that provides a customised, measurable, cloud-based platform.

MYOB Advanced People is the payroll and HR suite. It features a comprehensive payroll system that caters to the many employee requirements.

Additionally, there are expandable editions to the Advanced suites, not to forget the Mobile App MYOB Advanced OnTheGo.

Final Thoughts

Both MYOB and Xero are excellent choices and they&rsquo;re both fantastic choices for managing your accounts. Choosing which is best comes down to your unique needs as a business owner.

For example, if inventory management is important for you then MYOB&rsquo;s kits and auto-build items could add a lot of benefits to your business. On the other hand, if you require additional features then Xero offers greater app add-ons.

Ultimately it&rsquo;s best to speak with a professional bookkeeper who can help you decide on what accounting package is best for you or speak to our small business consultants to advise the right software integration for you.
]]></content>
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<pubDate>12 Apr 2022 07:04:00 GMT</pubDate>
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<link>https://www.keyadmin.com.au/blog/11-must-know-steps-for-good-cash-flow-management-128s48</link>
<title><![CDATA[11 Must Know Steps for Good Cash Flow Management]]></title>
<description><![CDATA[If you&rsquo;re a small business owner, you have to be wise for your business to succeed. This calls for consistent monitoring of your cash flow more than anything else. 

Whether it&#39;s weekly or monthly, you need to be on top of your cash flow. 

Checking on your statements gives you insight into income levels and whatever is moving out of your business. If the numbers indicate more income than spending, then you&rsquo;re doing great. If the reverse is the case, then you need to watch out.

If your cash flow management has not been the best, check out these 11 must know steps for good cash flow management.
]]></description>
<content><![CDATA[If you&rsquo;re a small business owner, you have to be wise for your business to succeed. This calls for consistent monitoring of your cash flow more than anything else. 

Whether it&#39;s weekly or monthly, you need to be on top of your cash flow, and consider it a crucial part of your bookkeeping checklist. 

Checking on your statements gives you insight into income levels and whatever is moving out of your business. If the numbers indicate more income than spending, then you&rsquo;re doing great. If the reverse is the case, then you need to watch out.

If your cash flow management has not been the best, check out these 11 must know steps for good cash flow management.

1. Monitor and Analyze Your Cash Flow Regularly

The first step to good cash flow management is to frequently conduct cash flow analysis. This will help you establish where your business stands in terms of finances. Subsequently, you can plan strategically.

Today, online accounting software is available, making things easier for you. With software integrations, you can generate reports and statements, reconcile accounts, and much more from the comfort of your office with fewer hassles.

In the cloud, your financial information is secure, and no matter your location, you can easily monitor your cash flow, provided you have an internet connection.

2. Cut Unnecessary Expenses

If your expenses exceed your income, that should raise a red flag. It&rsquo;s an indication that you need to cut down on some of your expenses. By doing so, you work towards balancing your scales.

Making cuts can be challenging for any business. However, if you can identify priority areas, it&#39;s easy to spot the places to reduce spending. 

Of course, there are things you cannot touch. On the other hand, some things will require a change of approach to reduce expenditure. Some changes to consider include:


	
	Can you cut costs on rent, utilities, or payroll?
	
	
	Are there services or subscriptions you can stop paying for?
	
	
	Are there insurances you no longer need?
	
	
	Do you have leases or loans that could be renegotiated? 
	


3. Create Good Credit Control Procedures

What do your credit control procedures look like? If there&rsquo;s still room for improvement, don&rsquo;t hesitate. This should include establishing payment terms and communicating them to your buyers, not only during sale interactions but formally in your paperwork too.

In addition, put in place procedures defining the way forward for overdue invoices.

4. Cash In on Assets

It does not make sense to keep assets that are no longer of use to your business. It&rsquo;s better to sell the equipment, machinery, and tools that are dormant. 

Also, don&rsquo;t leave behind any inventory that&rsquo;s already obsolete. Selling these assets will generate some quick cash you can use to boost your business.

5. Stay on Top of Invoicing

There&rsquo;s no need to wait after you deliver products or completed work before making the invoice available to your customers. Instead, send the invoices immediately. Know who you need to send the invoice to and all their address details to avoid stressing them as they move from one department to another.

Don&rsquo;t confuse your customers by designing your invoices in a complicated format. Make them easy to read and understand. The payment details should be direct. 

To make invoicing smoother and more efficient, consider emailing them to customers instead of sending them via mail.

6. Consider Leasing in Place of Buying

Sometimes, leasing has more financial and operational benefits than buying. Business equipment such as computers and vehicles requires a significant amount of cash to acquire. 

By leasing, you avoid tying up money. Moreover, you can access modern features in such equipment, speeding up your business operations altogether.

7. Develop Tight Stock Control Measures

Stock control is a crucial aspect of cash flow management. You don&rsquo;t want a situation where you run into problems but have no cash to bail yourself out. This often happens when businesses have tied up money in slow-moving stock.

To avoid such situations, be good at stock management, ensuring safe levels. That way, you maintain the proper business balance, meaning:


	
	You get your stock at the right time
	
	
	Your stock comes in at the right price
	
	
	You don&rsquo;t have stock that ties up your cash unnecessarily
	


8. Have a Cash Reserve in Place for Emergencies

An emergency fund is an excellent cash flow management practice. 

Setting aside enough cash to cater for a couple of months&rsquo; expenses prepares you for unpredictable eventualities. In fact, this is not only good for businesses but individuals as well.

The COVID-19 pandemic is a perfect example of how things can take a turn, and at such times, only businesses with good cash flow management strategies can stand the test of time.

Granted, contributing to a cash reserve has its challenges, and most businesses don&rsquo;t manage to do so. But a saving habit and culture when your income is doing well will go a long way when things take a turn. 

Therefore, strive to achieve a reserve that can take care of things for a few months if unforeseen circumstances happen.

9. Speed Up Payments

If your line of business deals with the delivery of products or services at homes or offices, you can accelerate your payments by adopting mobile app payments. Install the apps on mobile phones or tablets so that when you get paid, you can instantly accept payment, whether by debit or credit card.

In addition, you can speed up payments by offering your customers good deals. For example, you can give incentives when a customer pays early. However, it&rsquo;s worth mentioning that this requires proper analysis and planning beforehand to ensure the motivation is worth the time and effort.

10. Request for Deposits

The plausibility to request deposits depends on the type of business you operate. If you get a large order on a product or a long-term contract to deliver a service, you can ask for a partial payment or deposit.

For instance, say you&rsquo;re a website developer or contractor. You can request your clients for a certain percentage of the total cost before beginning the work. Then, you can get half of the remainder after starting the work and the rest at the end of the project. 

That way, you get enough cash to keep running the project. In any case, you need money for materials and paying workers.

11. Be Open, Honest, and Realistic

Finally, good cash flow management requires business owners to be honest, open, and realistic as they deal with cash flow problems. 

So, go over the steps mentioned earlier and honestly assess your business position. Be open to input from stakeholders and advisors, such as accountants.

For example, you might find out your sales are down or your expenses are still high. Weigh out realistic solutions that will result in practical achievements. That way, you address the problem amicably.

Final Word

Now you know some must know steps for creating good cash flow management strategies. These steps are crucial if your business is to have a good flow of money.

The measures listed above are proactive, positioning you in the best place to have a positive cash flow. In addition, these strategies will ensure your income is more than your spending, leaving you with sufficient profits.

Look around you. Every flourishing business has good cash flow management, and it&rsquo;s time you upped yours.

About Key Administration Solutions

We are a Melbourne based bookkeeping service offering personality packed, financial mastery to small and-medium Melbourne businesses.

Our mission is to build better, more organised and thriving businesses through a caring, professional and plain-speaking financial management service.

 
]]></content>
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<pubDate>30 Nov 2021 04:29:00 GMT</pubDate>
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<link>https://www.keyadmin.com.au/blog/the-pros-cons-of-outsourced-bookkeeping-services-128s46</link>
<title><![CDATA[The Pros &amp; Cons of Outsourced Bookkeeping Services]]></title>
<description><![CDATA[Outsourced bookkeeping, payroll and office administration services are fast becoming a popular solution for small businesses. Large corporations have enjoyed outsourced business services and now smaller businesses are starting to take advantage of these services too.

With remote access and an Australian based bookkeeping team at hand, business owners have access to a team of knowledgeable experts working to help their business run more efficiently, grow faster, and make more money. In addition, local outsourced business and bookkeeping services come with lower risks and significant cost savings versus hiring an internal bookkeeper.
]]></description>
<content><![CDATA[Outsourced bookkeeping, payroll and office administration services are fast becoming a popular solution for small businesses. Large corporations have enjoyed outsourced business services and now smaller businesses are starting to take advantage of these services too.

With remote access and an Australian based bookkeeping team at hand, business owners have access to a team of knowledgeable experts working to help their business run more efficiently, grow faster, and make more money. In addition, local outsourced business and bookkeeping services come with lower risks and significant cost savings versus hiring an internal bookkeeper.

When Should You Outsource?

Often, business owners will manage their bookkeeping needs on their own with a comprehensive bookkeeping checklist to reduce costs. As their business grows and the volume of financial data and requirements increases, bookkeeping becomes a more complex and time consuming part of the business.

Managing the books begins to take more time and effort away from the core business leading to a drop in business performance and in some cases getting the business owner into trouble with the ATO due to compliance issues.

So, is it time to outsource your bookkeeping needs?

Start by asking yourself these important questions:

Are you unsure about the accuracy of your businesses financial data?

Are you unsure if you&#39;re keeping proper financial records?

Has tax time become a nightmare?

Are you finding yourself consumed by invoices and business transactions which is negatively impacting your core work?

Are you unsure about the profitability of your business?

Are your BAS lodgements late?

If any of the questions above sound familiar then it&#39;s time to consider hiring an expert to support your businesses growth.

The pros and cons of outsourcing

As with any good business decision, it starts with weighing the pros and cons so you can make an informed choice whether outsourced bookkeeping is right for you.

Enables transformation - for example migrating bookkeeping and other key business processes to the cloud while also implementing more streamlined processes. Businesses also use outsourcing to drive transformational change and improve business results.

Minimize risk &amp; building resilience - cost savings, focusing on core business functions, minimizing risk and solving capacity issues are the main reasons to outsource. 

Pro #1: Cost Effective

Hiring an outsourced bookkeeping service is more cost effective and less risky than hiring an in-house bookkeeper to handle the books. By outsourcing, you don&rsquo;t have any additional overhead costs that an employee would generate, such as Super, annual leave, health insurance, vacation, sick pay and workers&rsquo; comp. Also, a single person might not have all the answers to complex/more advanced bookkeeping issues while an outsourced team has a number of experts who support each other and can share knowledge to provide the best solution for your needs.

Con #1: Hidden Costs

As with any paid service, additional costs can become a problem if a task is more complex than you initially anticipated resulting in unforeseen costs. The best way to manage this is by talking to your bookkeeper about this to understand and set expectations around any work.

Pro #2: A Proactive Approach

As a business owner, you didn&#39;t go into business to become a trained financial professional who lives in the books. Your focus is on serving your customers and growing your business to secure your desired lifestyle. Hiring an external bookkeeping firm ensures that any red flags are spotted ahead of time including cash flow issues and over expenditure. Having a team of experts care for your financial data gives you peace of mind and the confidence to continue forward knowing you won&#39;t run into any unforeseen financial trouble down the road.

Con #2: Less Control

Having an external team of bookkeepers to support you does come with a downside, you can&rsquo;t simply walk into the office next door and get the rundown on how finances are tracking. Instead, you&#39;ll have to schedule a call or arrange a meeting which does mean updates aren&#39;t instantaneous. Outsourcing your financial data can also feel daunting for a lot of business owners so make sure you do your homework and work with a trusted partner before making a final decision.

Pro #3: Reduced Fraud

Fraud is a concerning aspect for any small to medium sized business owner when they allow a single person to control the books. Small transactions can easily go unnoticed and the books can get manipulated to appear normal for years. It&#39;s a mistake to blindly trust employees, even if you have a strong relationship together as it can lead you into a false sense of security that leads to heartache down the road.

Outsourcing your bookkeeping means no single person controls the books and with multiple pairs of eyes monitoring transactions significantly reduces the risk of fraud and any accounting anomalies.

Con #3: Not Local

There are a lot of overseas bookkeeping and business service providers based overseas. The biggest risk is these companies are not always aware of Australia&#39;s tax laws, BAS statements, superannuation, GST or payroll requirements leaving you open to harsh penalties. In addition, overseas agencies can often be more challenging to communicate with and explain your financial data in a way that makes sense. It&#39;s important to weigh up if outsourcing overseas is the right long term strategy. Alternatively, a more effective and risk free option is to hire an Australian Based Outsourced Team.

Pro #4: Training

Bookkeeping firms are legally obliged to stay up to date with the latest Government regulations and tax laws to ensure proper compliance and best practices. As a business owner, this is important as you want to ensure your books are managed as per the ATO&#39;s regulations even when those regulations are updated. Working with an outsourced bookkeeping company gives you that peace of mind.

Key Admin Are Your Dedicated Financial Team

Here at Key Admin Solutions, we&rsquo;ve helped small to medium sized businesses gain the peace of mind, efficiency, and actionable financial data they need to succeed. 

Contact our friendly team to learn more about how we can help you to save time and money in your business today!

 
]]></content>
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<pubDate>25 Aug 2021 05:46:00 GMT</pubDate>
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<link>https://www.keyadmin.com.au/blog/12-must-know-bookkeeping-tips-for-businesses-128s45</link>
<title><![CDATA[12 Must Know Bookkeeping Tips for Businesses]]></title>
<description><![CDATA[As a business owner, you have a lot on your plate. From managing your day-to-day business operations, working with customers, marketing strategies, networking and keeping everything running smoothly. 

Managing your books, staying in control of your finances and making sure your business is compliant is vital for long term success. 

So, before you spend another late night reviewing spreadsheets, here are 12 essential bookkeeping tips every business should know.
]]></description>
<content><![CDATA[As a business owner, you have a lot on your plate. From managing your day-to-day business operations, working with customers, marketing strategies, networking and keeping everything running smoothly. It&rsquo;s tough to find time to sort through financial spreadsheets, analyse the numbers and manage your cash flow. 

The reality is that managing your books, staying in control of your finances and making sure your business is compliant is vital for long term success. 

So, before you spend another late night reviewing spreadsheets, here are 12 essential bookkeeping tips every business should know.

And if this is too much, you can always ask us for help! We&#39;re Melbourne Bookkeepers who can keep your business finances on track.

1. Keep Personal and Business Accounts Separate

Mixing your personal and business cash might not seem like a huge problem at first. However, every business should have a separate business bank account independent of any personal bank accounts. In many cases, a separate business bank account is compulsory, depending on your business structure. 

This separate account will make it easier for you and your bookkeeper to sort through the purchases and sales relevant to your business and save you a lot of time, effort and headaches. 

2. Automate with Cloud Based Accounting Software

We&rsquo;re lucky to live in a time where cloud based accounting software gives you as the business owner the power to access your business information whenever you need it. Software integration technology has made it possible to sort through piles of paperwork each month, check spreadsheets, and perform manual calculations. Today, cloud based software does most of the hard work for you. 

Accounting software [e.g. MYOB or Xero] can automatically send invoices to customers on the right due date, track your incoming and outgoing expenses, and generate reports on your cash flow. There are plenty of software options out there. The right choice for you will be the one that makes life easier for you, and if you&rsquo;re not sure which option is correct, then you can always speak with a bookkeeping expert to get clear advice.



3. Create An Easy To Follow Record Keeping System

Every transaction your business makes should be recorded and organised in a way that&rsquo;s easy for you to maintain and manage your cash flow. Keeping track of all business records, including invoices, receipts and expenses will help you predict future opportunities for your business and maintain tax compliance in the case of an audit. 

While there are easy ways to digitise your paper receipts, if you prefer to keep paper records, these should remain in a locked and secure cabinet somewhere and be organised into a simple system. It&rsquo;s also best to have a backup of your records just in case something goes missing. 

Alternatively, most cloud-based bookkeeping software can store these documents for you by scanning receipts with your phone or forward electronic bills straight to your online bookkeeping system for reconciliation and record storage.

4. Set Reminders for Important Deadlines

You spend most of your time as a business owner running from one challenge to the next. With so much on your plate, it&rsquo;s easy to lose track of when you should be paying GST, payroll, and regular business invoices. To avoid missing deadlines that could leave you with a fine or disgruntled partner, set reminders for yourself. You can do this with your email calendar online, or even your smartphone.

Even writing notes down for a few days before the deadlines can help keep you on track if you regularly check your physical calendar. 

5. Build an Audit Trail

No matter how careful you are with your books, you could still end up with a tax audit on your hands. You must leave a trail of documentation that backs up everything you&rsquo;ve purchased, and everything your customers have paid for.

An audit trail is essentially a selection of documents that prove the transactions recorded in your books are, in fact, true. Your audit trail will help you to retrace your steps if you have any issues with things like tax inaccuracies, source documents, or missing transactions. 

6. Know Your Business Expenses

It&rsquo;s difficult to predict what kind of expenses you&rsquo;re going to tackle when you start running your business, and what kind of costs are deductible from your taxes. For instance, costs related to the company&#39;s operation and connected to your generation of income are tax-deductible. However, if you buy something that&rsquo;s just for you &ndash; you can&rsquo;t add that to your accounts. 

Mixing business and personal accounts doesn&rsquo;t mean that you can simply claim for everything you buy. You need to review and understand what&rsquo;s claimable under Australian Tax Laws. If you&rsquo;re not sure what counts as a deductible purchase, contact either an accounting professional or your local tax department. 

7. Create Regular Reports

A good bookkeeping strategy isn&rsquo;t just essential for tax purposes. Keeping track of your incoming and outgoing cash makes it easy to perform regular financial check-ups. With the right accounting software, you can ensure that all your customers pay their invoices on time and avoid any gaps in your reporting. 

While it&rsquo;s good to perform monthly check ups, you might want to take an in-depth look at your accounting and bookkeeping records at the end of each quarter, paying close attention to trends like declining or growing sales, large expenses, or evidence of late-paying customers. A proper evaluation of your numbers will help you to plan for a better cash flow in the future. 

8. Track Cash Payments

It&rsquo;s easy to forget about this when you first start building your business, but you need to record your cash payments too. Any cash received by the business needs to go into the business bank account before spending it &ndash; even on business products. It&rsquo;s tempting to take the cash immediately to purchase supplies, but this can easily mess up your bookkeeping system. 

When recording cash payments, remember to make a note of which customer paid, so you don&rsquo;t chase them up again later. If you&rsquo;re unsure how to manage the details of a cash payment on your accounting software, speak to a bookkeeper who can help you set it up and use it correctly. 

9. Budget for Tax Payments

There are few things more wonderful than seeing that your business is making money. You might know that you&rsquo;re starting to make a profit and decide to plough all your extra cash back into the company as soon as possible. Spending profit on product development, marketing, and other growth strategies is a great way to maintain your company&rsquo;s momentum &ndash; but don&rsquo;t rush in.

Remember that a portion of your income will need to go towards tax expenses at the end of the year. You should be saving at least a part of all your income &ndash; perhaps 20% - to ensure that you have enough money left to pay your bills. If you struggle to keep this money in your business account, use a separate savings account. 

10. Know the Basics

Many business owners think that they don&rsquo;t have to learn about tax and accounting rules if they have a professional to manage their books. You might even feel that way if you have an automated accounting software solution. However, while these assets reduce your risk of having problems with your taxes, it&rsquo;s best to be informed about your tax obligations.

Go online and read everything you might need to know for the type of business you run. Remember that registered companies have different rules for sole traders and partnerships. Consider whether you&rsquo;re paying corporation tax, registered for GST, and other regular fees. Having a basic insight into how taxes work could save you from some severe penalties. 

11. Outsource to a Professional Bookkeeper

Cloud based accounting systems like Xero, Quickbooks and Reckon make it easier for business owners to handle their accounting without a lot of excess effort. However, that doesn&rsquo;t mean you shouldn&rsquo;t use a professional bookkeeper. Outsourcing to an experienced bookkeeper offers several benefits, including:


	
	saving you valuable time
	
	
	ensuring your books are always up to date and organised 
	
	
	save money
	
	
	meeting all of your compliance activities including BAS and tax obligations
	


When your books are professionally organised with outsourced bookkeeping services, it is easy to decide on important business decisions as you have a clear picture of how your business is performing financially.



12. Make Your Books a Priority

Finally, tracking your expenses might not be the most exciting part of running your business, but it does need to be a priority. One mistake on a tax report or a poorly managed set of invoices in your bookkeeping records can throw your life into turmoil. From day one, make sure you have a strategy in place for keeping your books organised and up to date. 

Although you don&rsquo;t necessarily need to balance everything at the end of each working day, you should be sorting through your financial information at least once a month. 

Commit to Better Bookkeeping

Whether you&rsquo;re handling most of your accounting yourself or you&rsquo;re hiring a professional to manage things for you, the right bookkeeping strategy is key. Follow the tips above, and you&rsquo;ll have a better understanding of your business cash flow, fewer issues with tax, and more opportunities to grow.
]]></content>
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<pubDate>15 Feb 2021 07:38:00 GMT</pubDate>
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<link>https://www.keyadmin.com.au/blog/10-things-to-know-this-tax-time-128s40</link>
<title><![CDATA[10 things to know this tax time!]]></title>
<description><![CDATA[Tax time is here and the ATO have developed a list of important things you need to know this year.

Please read the following link for more information:

https://www.ato.gov.au/Tax-professionals/Newsroom/Income-tax/10-things-to-know-this-tax-time/
]]></description>
<content><![CDATA[Tax time is here and the ATO have developed a list of important things you need to know this year.

Please read the following link for more information:

https://www.ato.gov.au/Tax-professionals/Newsroom/Income-tax/10-things-to-know-this-tax-time/
]]></content>
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<pubDate>06 Jul 2020 02:01:00 GMT</pubDate>
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</item>

<item>
<link>https://www.keyadmin.com.au/blog/are-you-stp-ready-128s39</link>
<title><![CDATA[Are you STP Ready?]]></title>
<description><![CDATA[Single Touch Payroll (STP) is a new way of reporting tax and super information to the ATO.

Large employers with 20 or more employees should already be reporting through STP or have applied to the ATO for a later start date than 1st July 2018. The parliament has passed legislation to extend STP to include all employers from 1 July 2019 for employers with 5-19 employees (small employers). 
]]></description>
<content><![CDATA[Single Touch Payroll (STP) is a new way of reporting tax and super information to the ATO.

Large employers with 20 or more employees should already be reporting through STP or have applied to the ATO for a later start date than 1st July 2018. The parliament has passed legislation to extend STP to include all employers from 1 July 2019 for employers with 5-19 employees (small employers).  This is a gradual transition with flexible options and not all employers will start reporting at the same time.

If you are using a solution that offers STP reporting, such as payroll or accounting software, you will send your employees&#39; tax and super information to the ATO each time you run your payroll and pay your employees.  The information is sent directly from your software, or through a third party &ndash; such as a sending service provider.

Determine when you need to start reporting from one of the following options.  It is best to start reporting as early as you can before 1st July 2019. If you use payroll software which offers STP, you can update your product and start reporting any time.

If you have four or less employees (micro employer) and you don&#39;t currently use payroll software, there will be other ways to report STP information.

There are lots of software developers with low-cost STP solutions for micro employers &ndash; including simple payroll software, mobile phone apps and portals.  As a registered BAS agent providing bookkeeping services we will also be able to report your STP information quarterly, rather than each time you run payroll. This option will be available until 30 June 2021.

Not sure about Single Touch Payroll, or even where to get started? Is payroll causing you stress and confusion? We&rsquo;re here to support you! Our payroll services can take the stress away and make sure you&#39;re compliant. Alternatively, schedule a consultation with one of our payroll experts &ndash; we will discuss your needs and help you come up with the right solution.

Contact us for more information.
]]></content>
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<pubDate>24 Apr 2019 03:55:00 GMT</pubDate>
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<item>
<link>https://www.keyadmin.com.au/blog/our-new-online-client-resources-are-here-128s32</link>
<title><![CDATA[Our new Online Client Resources are here!]]></title>
<description><![CDATA[At Key Administration Solutions we understand that it can be confusing with all of the different files and documents that may be needed in keeping track of your business accounts or payroll.  With the launch of our new website we now have the capability to host informative and helpful documents behind a login that you can easily download as one of our respected clients.
]]></description>
<content><![CDATA[At Key Administration Solutions we understand that it can be confusing with all of the different files and documents that may be needed in keeping track of your business accounts or payroll.  With the launch of our new website we now have the capability to host informative and helpful documents behind a login that you can easily download as one of our respected clients.

You can access the client resources by going to the client resources page and logging in with the details we give you and start downloading the documents you need.
]]></content>
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<pubDate>10 Apr 2019 07:06:00 GMT</pubDate>
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</item>

<item>
<link>https://www.keyadmin.com.au/blog/businesses-need-more-than-an-accounting-package-128s31</link>
<title><![CDATA[Businesses need more than an accounting package]]></title>
<description><![CDATA[More and more businesses are moving towards add-on job management programs to improve work flow efficiency and reduce the need for additional excel reporting, double handling and time consuming paper based systems.

There are a number of new softwares appearing in the marketplace such as Fleetmatics, Simpro, Tradify and ServiceM8.
]]></description>
<content><![CDATA[More and more businesses are moving towards add-on job management programs to improve work flow efficiency and reduce the need for additional excel reporting, double handling and time consuming paper based systems.

There are a number of new softwares appearing in the marketplace such as Fleetmatics, Simpro, Tradify and ServiceM8.

They all perform the same kind of thing and will sync with most accounting packages which save time and double handling but what&rsquo;s really great about them is the ability to track all of the relevant information in one spot and be able to manage a fleet of staff from a smart phone or an tablet.
]]></content>
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<pubDate>23 Jul 2018 01:45:00 GMT</pubDate>
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<item>
<link>https://www.keyadmin.com.au/blog/single-touch-payroll-and-how-it-affects-you-128s30</link>
<title><![CDATA[Single Touch Payroll and how it affects you]]></title>
<description><![CDATA[Single Touch Payroll will become mandatory on July 1st this year for employers with a head count of 20 or more staff including casuals on 1st April 2018.

It becomes mandatory for all other businesses on July 1 2019.
]]></description>
<content><![CDATA[Single Touch Payroll will become mandatory on July 1st this year for employers with a head count of 20 or more staff including casuals on 1st April 2018.

It becomes mandatory for all other businesses on July 1 2019.

Single Touch Payroll is a way of communicating gross wages, tax withheld and super for your employees directly to the ATO immediately after each pay run has occurred.

What this means is that you will need to use a payroll or accounting software that can talk directly to the ATO.

In most instances desktop (or non cloud) softwares will not comply and you will need to upgrade to a compliant (cloud based program).
There will be some exceptions to this rule and your current software provider can give you more information.
]]></content>
<guid isPermaLink="true">https://www.keyadmin.com.au/blog/single-touch-payroll-and-how-it-affects-you-128s30</guid>
<pubDate>29 Jun 2018 01:29:00 GMT</pubDate>
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