Starting your small business can be many things: exciting, overwhelming, frustrating, and, well, confusing. A good portion of this confusion comes in the form of the enormous variety of terms that you will find being thrown at you. The more that you familiarise yourself with these common tax and business terms, the easier it will be to navigate the process of getting your small business off the ground
An Australian Business Number (ABN) is an 11 digit number that is used to distinguish your business for a variety of different purposes, and it also allows access to multiple benefits. Not everyone is entitled to an ABN, but if you are starting up a business and have taken steps such as securing financing, leasing property, or beginning advertisement, you might want to think about applying for one.
For years, technology has been taking a larger role in nearly every aspect of everyday life. From boxes of receipts to spreadsheets filled with data to increasing complex software, accounting is not an area that has been exempted from these changes. That’s why today’s accountants, in addition to more traditional skill sets, need to be at the forefront of the latest technology in their industry.
Technology is constantly changing, and these days, everything seems to be more and more digital. It’s perhaps not a surprising statistic that there are now more mobile devices in the world than human beings — 8.7 billion in comparison to 7.6 billion. Digital technology bleeds into everything we do. You can get a ride through use of an app, work from home through use of your computer or smartphone, and connect with friends from all over the world. So naturally, accounting has changed to suit the digital world, as well.
If you own a small business and have not yet made the transition to Single Touch Payroll, now is the time to start the process. While large employers with 20 or more employees should have begun the process in 2018, employers with 19 or fewer employees will need to begin between 1 July and 30 September 2019, and the sooner that you begin the reporting process, the sooner that you can streamline and ensure that your reporting method is accurate.
The ATO is encouraging small businesses to use their small business benchmark tool to check the health of their business — but the benchmarks aren’t only a helpful tool. They are also another reason why regular documentation and recordkeeping regarding your business is essential.
Maybe some of the investments you’ve chosen aren’t paying off, or you don’t have enough money left over for the marketing you need. Maybe you’re putting too much money into marketing that isn’t working. When it comes to small business, even small flaws in your company budget can hurt deeply. If the idea of rehauling your business’s finances, however necessary, seems like an overwhelming headache, here are a few things to make the process run more smoothly.
The Sydney Morning Herald reported back in December that $830,000 has been lost by taxpayers to convincing tax scams conducted by phone, with the scammers likely originating far outside of Australia. These callers would then trick taxpayers into providing their personal information, and ultimately their money, by threatening them with arrest and other scare tactics.
Dealing with an ATO audit or dispute as a small business owner can have a devastating impact on both yourself and your business. Often, payments are expected within thirty days and, even if you do decide to object, you may owe half the amount up front. However, it seems that things may finally be looking up for small business owners initiating tax disputes. Beginning on 1 March 2019, there is a new service and a new division aimed at assisting small business owners wishing to address their tax disputes.
Amid all the stress of tax season, one of the bright lights is tax deductions. However, many Australian business owners aren’t getting all that they can from their tax deductions — simply because they don’t know about them or have forgotten about them. These tax deductions in particular often fly under the radar.
With the Christmas season underway, many businesses are planning parties or providing gifts for their employees. Some may have even considered offering tokens of appreciation to clients and customers. While this is, of course, all in good cheer, there are still a few details you’ll want to consider tax-wise, before you get that party fully started.
It’s one thing to run a small business yourself for the love of it and earn whatever profits can be gained there. However, if you have plans to one day sell your small business and let it become something bigger, you have to start thinking about it in a different way. Much like in the conception of the business idea you had to think of what would make your business appeal to your customers, now you have to consider what would make your business appeal to other businesses or potential buyers.
With the announcement of the Federal Government’s possible new funding package, there has never been a better time to start a small business. Usually, with rates that are often higher than home loans, this is a result of the high interest rates on business loans. Now that new funding proposals are in place, the idea behind it all is that the larger banks will have competition, pushing interest rates for small business loans down all around. If this happens, you have the recipe for a market that is ripe and ready for building a small business, or even expanding your current one.
Successfully creating and running a small business is no easy task. You will often be tasked with finding ways to save your business money. Budgeting and adjusting your expenses as soon as possible will add up quickly for your business. Here are a few way to modify your business in small ways that will save you big money in the long run.
With the new financial year in full swing, this is the ideal time to focus on getting and staying organized. Properly maintaining your business’ records from the start of the year is something you’ll thank yourself for when EOFY comes back around.
Here are the top 4 ways you can make bookkeeping a breeze this year:
Deciding which payment methods to offer customers is an often overlooked area of business. Many small businesses begin by accepting cash-only payments, while others venture early into the ever-growing world of electronic payment. There’s no question that, at least for the time being, cash is clearly still an important part of our transactions, but it may be worth it to your business to consider offering electronic methods, as well.
No matter your age, if you’re employed, you’ve heard of superannuation. This is money that your employer pays into an account set up for your future after retirement. Since superannuation provides for your retirement, it’s an incredibly important asset. Even knowing this, many Australians are understandably confused by the details of superannuation. The truth is, understanding how superannuation works is a vital part of your financial health — and it really isn’t as complicated as it sounds.
That cloud accounting is the future can hardly be doubted anymore. If you need help migrating to a cloud accounting software, book an appointment with TCA Darwin today.