Keep super records or be super charged

April 12th, 2011

Do you employ people?

Do you pay super for your eligible employees?

If you answer ‘yes’ to both these questions, do you know what records you need to keep for super?

You must keep adequate records showing the amount of super paid for all your eligible employees.

Your records should include:

how you calculate any reportable employer super contributions
how you calculate each of your employee’s salary or wages and ordinary time earnings
copies of relevant salary sacrifice agreements you entered into with your employees
copies of relevant industrial agreements with your employees
evidence that you have offered your eligible employees a choice of super fund

You must also keep records:

for five years
in English, or in a form that can be easily accessed and converted into English

Have you ever missed the cut-off for superannuation?

Meeting your employer super obligations is an important part of running your business.

All compulsory super guarantee contributions must be made by the quarterly deadlines, as outlined below.

Quarter Period Payment cut-off date
1. 1 July – 30 September - 28 October
2. 1 October – 31 December - 28 January
3. 1 January – 31 March- 28 April
4. 1 April – 30 June - 28 July
If you miss the super guarantee quarterly deadline, you must submit a Superannuation guarantee charge statement – quarterly (NAT 9599) to the ATO

The superannuation guarantee charge is a charge you have to pay to ATO if you:

do not pay enough super contributions (at least 9%) for your eligible employees
do not pay super contributions for the quarter at all
do not pay super to the employee’s chosen super fund
pay a super contribution to a fund after the cut-off date for payment

Can the superannuation guarantee charge be offset?

If you make a super contribution to an employee’s super fund after the cut-off date, you may be able to offset this late payment against your superannuation guarantee charge liability. This is called the superannuation guarantee late payment offset.

You can elect to apply the late payment offset when the late payment for an employee is made into a complying super fund before the superannuation guarantee charge assessment for the quarter is made.

A handy reference: Portable Document Format (NAT 72035, PDF, 153 KB)

Small Business Superannuation Clearing House

If you have fewer than 20 employees, you can use the free Small Business Superannuation Clearing House service administered by Medicare Australia.

The service is optional. It’s designed to reduce red tape and compliance costs for small businesses by letting employers pay their super guarantee contributions to a single location in one simple electronic transaction.

You can find out more or register for the service by:
visiting the Medicare Australia website at www.medicareaustralia.gov.au/super

For more information about your super obligations and record keeping, visit www.ato.gov.au/employersuper

Article from Workforce Education news 1.4.11. Website: www.ato.gov.au/wen

Shared with you by – Maureen Millar

Jim’s Bookkeeping Northern Gold Coast (Helensvale QLD 4121)

Maureen Millar is the owner of Jim’s Bookkeeping Northern Gold Coast and she supports small business’ in Helensvale and across the Northside of the Gold Coast. To find out more about Maureen, visit her profile page at http://www.jimsbookkeepingbrisbane.com/maureen-millar.html or request her free report to discover “How to Stabilise & Grow Your Business in 7 Easy Steps“

Tags: bookkeeper, government, Legal, small business, Superannuation
Posted in Bookkeeping, Gold Coast, Superannuation, small business | Comments Off

Crackdown on Sham Contracting

March 31st, 2011

Group of workers The Fair Work Ombudsman says it is taking aim at ’sham contracting’ in the health and beauty, cleaning and call centre industries, in a special auditing campaign to be completed over April and May.
Ombudsman Nicholas Wilson says the watchdog is in the process of auditing a “number of industries to see what the threshold level of sham contracting might be”. The FWO will release further details on the campaign in the coming weeks but said the workplace regulator will “distribute tens of thousands of educational brochures on contracting arrangements nationally to workers who may be vulnerable to sham contracting arrangements and to the members of key industry groups.”

The Ombudsman will focus on employers who incorrectly label employees as ‘contractors’ to cut costs – this follows a $214,500 fine this month for a Brisbane call centre company and its director for sham contracting and underpayments.

News of the crackdown comes as the Construction, Forestry, Mining and Energy Union released a report claiming there could be more than 168,000 people employed on sham contracts in the construction industry. The union claims that ABS data and independent tax consultant analysis suggests these sham arrangements are costing the government $2.45 billion in lost tax revenue and wants to see the problem fixed. “Workers forced onto sham contracts lose their rights and entitlements, and the Government loses tax dollars,” CFMEU national secretary Dave Noonan said in a statement. “The only winners are those employers who flout the law knowing they won’t be punished under the current system.”

Article from Gold Coast Chamber of Commerce -Northern Gold Coast

If you are unsure if your staff are an employee or contractor visit: http://www.ato.gov.au/businesses/content.asp?doc=/content/00095062.htm

Click on Employee/Contractor decision Tool and follow the process to help you understand whether your individual workers are employees or contractors

Shared with you by – Maureen Millar

Jim’s Bookkeeping Northern Gold Coast (Helensvale QLD 4121)

Tags: bookkeeping systems, government, small business, tax
Posted in Bookkeeping, Business Planning, Gold Coast, small business | Comments Off

Turtle tax – a reminder to know when you’re in business and when you just have a hobby

March 28th, 2011

From the ATO website:

29 November 2010

A recent court case has highlighted the importance of being sure that an activity that you might think is a hobby, actually is. It’s important because if an activity constitutes a business, rather than a hobby, it means any money received from the activity is assessable income for tax purposes.

In Liverpool Local Court on 11 November, a person who raised and sold over 1200 turtles was found to be in business rather than, as the person claimed, simply enjoying a pastime. The turtles were sold in New South Wales after purchasing them from an interstate supplier, advertised via the internet and payments were received in both cash and direct deposit to a bank account. Gross sales were in excess of $100,000 over a three year period and were not reported on the income tax returns.

The person was convicted and fined, including a penalty of $1,500, costs of $122 and an order to pay an additional tax penalty in excess of $9,000. So, if you fail to correctly declare when you are in business, you may have additional costs and penalties on top of the tax you would have paid.

Of course, being in business doesn’t just mean the money you receive from the activity being assessable income for tax purposes. It also means that any loss you make can be offset against other income you earn in that year or in future years. Also, if you are carrying on a business you are entitled to an ABN and you may choose to register for GST. You must be registered for GST if your annual turnover is $75,000 or more.

How to tell if you are in business…

You would normally be considered to be in business for tax purposes if you enter into an activity with the intention of running it as a profit-making business, and if the activity is carried out in a way that shows it has a significant commercial purpose and viability.

While tax law does not provide a detailed definition of a business, the following ‘business indicators’ have been used by various Courts and Tribunals to determine whether a business exists for tax purposes:
• Does your activity have a significant commercial purpose or character?
• Do you have more than just an intention to engage in business?
• Do you have a purpose of profit as well as a prospect of profit?
• Is there repetition and regularity to your activity?
• Is your activity of the same kind and carried on in a similar manner to businesses in your industry?
• Is your activity planned, organised and carried on in a business-like manner?
• Does your activity have characteristics of size, scale and permanency?
• Would it be true to say your activity is really better described as a business, rather than a hobby, recreation or sporting activity?

These indicators give general guidance as to whether your activity is a business. If your activity does not satisfy all of the indicators it does not automatically mean that it is not a business. However, it is likely that, if you answer ‘no’ to all these questions, your activity would be considered a hobby.

Warning: This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

Shared with you by – Maureen Millar

Jim’s Bookkeeping Northern Gold Coast (Helensvale QLD 4121)

Tags: accounting services, bookkeeping services, small business, tax
Posted in Accounting, Bookkeeping, Franchising, Home Based Business, small business | Comments Off

“Have One Week Off”, 7 days to de – stress…

March 28th, 2011

Man stretching They say there’s more than one way to skin a cat. The same goes when you start tearing your hair out with all the frustration, grief, anxiety, and yes, stress. It’s a state of mental conditioning that is like taking that bitter pill down your throat, causing you to lose your sense of self, and worse your sanity. Just thinking about it can drive anyone off the edge.

And they say that the proactive ones are already living off the edge…

As one stressed-out person to another, I know how it feels, and believe me there are many variants when it comes to stress. Coping with life, and carrying the problems that may or may not belong to you can scratch away the little joy and happiness that you can carry once you head out that door. You can’t blame them for being like that; they have their own reasons, so much like we have our reasons to allow stress to weigh us down. They say that stress is all in the mind, well, what’s bugging you anyway?

There are several ways to manage stress, and eventually remove it out of your life one of these days. So I’ll try to divide it into a seven-day course for you and I promise it’s not going to be too taxing on the body, or on the mind.

1. Acknowledge stress is good

Make stress your friend! Based on the body’s natural “fight or flight” response, that burst of energy will enhance your performance at the right moment. I’ve yet to see a top sportsman totally relaxed before a big competition. Use stress wisely to push yourself that little bit harder when it counts most.

2. Avoid stress sneezers

Stressed people sneeze stress germs indiscriminately and before you know it, you are infected too!

Protect yourself by recognizing stress in others and limiting your contact with them. Or if you’ve got the inclination, play stress doctor and teach them how to better manage themselves.

3. Learn from the best

When people around are losing their head, who keeps calm? What are they doing differently? What is their attitude? What language do they use? Are they trained and experienced?
Figure it out from afar or sit them down for a chat. Learn from the best stress managers and copy what they do.

4. Practice socially acceptable heavy breathing

This is something I’ve learned from a gym instructor: You can trick your body into relaxing by using heavy breathing. Breathe in slowly for a count of 7 then breathe out for a count of 11. Repeat the 7-11 breathing until your heart rate slows down, your sweaty palms dry off and things start to feel more normal.

5. Give stressy thoughts the red light

It is possible to tangle yourself up in a stress knot all by yourself. “If this happens, then that might happen and then we’re all up the creek!” Most of these things never happen, so why waste all that energy worrying needlessly?

Give stress thought-trains the red light and stop them in their tracks. Okay so it might go wrong – how likely is that, and what can you do to prevent it?

6. Know your trigger points and hot spots

Presentations, interviews, meetings, giving difficult feedback, tight deadlines…. My heart rate is cranking up just writing these down!

Make your own list of stress trigger points or hot spots. Be specific. Is it only presentations to a certain audience that get you worked up? Does one project cause more stress than another? Did you drink too much coffee?

Knowing what causes you stress is powerful information, as you can take action to make it less stressful. Do you need to learn some new skills?

Do you need extra resources?

Do you need to switch to decaf?

7. Burn the candle at one end

Lack of sleep, poor diet and no exercise wreaks havoc on our body and mind. Kind of obvious, but worth mentioning as it’s often ignored as a stress management technique. Listen to your mother and don’t burn the candle at both ends!

So having stress can be a total drag, but that should not hinder us to find the inner peace of mind that we have wanted for a long time. In any case, one could always go to the Whitsundays and bask under the summer sun for 7 days

Remember ”Don’t Sweat the Small Stuff”

Shared with you by – Maureen Millar

Jim’s Bookkeeping Northern Gold Coast (Helensvale QLD 4121)

Tags: bookkeeping systems, debt, home office, small business, stress management
Posted in Brisbane, Gold Coast, Home Based Business, small business | Comments Off

Teach Your Kids How To Look After Money

March 19th, 2011

Putting coins into a Piggy bank It is a sad fact but many people retire only to live in poverty. After working forty odd years and over that time earning hundreds of thousands of dollars many have very little to show for it.

What happened to it all? Well, most of it would have just slipped through your fingers. Why? Well, schools are very good at teaching us many different subjects including maths, but the one thing they do not teach is personal finance and how to make money work for you rather than you working for money.

So where can our kids learn about personal finance? Well, it is up to us as parents to teach them. Trouble is many adults are not too good at looking after money either, again because we were not shown how to in our youth. Let’s face it in most households money matters are not discussed between parents and children. Now I am not suggesting that we start showing them our mortgage and bank statements because I appreciate that some parents, especially with pre-teens and teens, may find an admission of their financial status embarrassing.

What we can do is advise our children of the pitfalls and dangers that await them in later life. Draw from your own life experiences and dealings with banks and other financial institutions. The fact that at certain times in our lives things are going to happen that will affect our personal finances. Certain things will be out of our control and not of our own making, but there will be times where a choice has been made that “seemed like a good idea at the time“. We have all been there, done that, only to pay a price at the end.

So, how and when do we start them off? As young as possible, usually by the time a child is about 3 years old they know about coins and notes and understand the concept of handing them over in order to purchase goods. Hand over enough coins and they get the lollipop they want at the sweet shop.

Here are some tips and ideas to help your kids start on the right path to financial prosperity.

* Buy a piggy bank for your younger children. Allow them to choose whatever colour shape or size they wish. Invite them to put their coins into their piggy bank. Occasionally they may count their coins and reward themselves if they want.

* Once they have proven themselves adept to handling their silver & gold coins, take them to open their own bank accounts. Most major high street banks and building societies have special savings accounts for kids. Depending on their age group, they may be offered some incentives e.g. fun packs, money-off vouchers for CDs, DVDs, computer games, etc.

* Many kids think, “money grows on trees”. Let them know that YOU working brings about this paper and metal stuff called money. Whether or not you work or you have inherited a large fortune, do not encourage laziness in your child. I am sure there are loads of chores around the house, washing the dishes, cleaning the rooms, etc. Give your kids an allowance but let them work for it. They also need to be able to work for free sometimes to learn the value of hard work.

* Many relatives nowadays tend to give money for birthdays and Christmas especially for the over 10s. At this age, their tastes are constantly changing (what a 12 year old and a 60-year-old see, as being “the in thing” is usually very different!) Encourage them to save 10% of their money gifts. If they are older and have a paper run, or something similar, again encourage them to save 10 % of their earnings. This may be only a small amount but it is a good habit to get into. If you are reading this now, as a middle-aged parent, imagine how much you would have in the bank today if you had saved 10% of everything you had ever earned. Scary stuff!

* Managing money does not mean hoarding it and locking it away forever. It simply means being careful, spending wisely, and acquiring a regular savings habit. Teach your kids that donating money to worthwhile causes is a noble thing to do. This could be to the local hospice, the homeless, or to a charity of their choice. This would help them become more rounded, more respectful of others regardless of the situation and become more appreciative of their own lives and their own prosperity. They would learn that the money returns to you in more ways than you could imagine.

* Encourage your child to purchase a journal or a diary where they can record their dreams and desires. This allows them to dream big and look forward to their lives ahead-filled with prosperity. There is nothing wrong with accumulating wealth to fulfill these desires. Money is not evil!

* “Filthy lucre” and “Money is the root of all evil” are phrases you will often hear people say. Ignore them. Money actually brings enormous good into the world. Creating wealth helps create jobs for others. Investing in business helps to bring solutions into people’s lives by way of innovative products and services. Acquiring a great fortune allows you to donate more money to charity – or even start your own trust fund. Therefore, as you can see money is neither good nor bad – it is what you do with it that makes the difference.

* One of the oldest wealth-creation maxims is, “It takes money to make money”. Unfortunately, it also takes money to lose money. Teach your kids the value of caution when entering into financial affairs. Remember the golden rule of any high-risk venture. Only invest what you can afford to lose. Moreover, let them know that many self-made millionaires started with literally nothing.

* Debt is one of the greatest social diseases of our time. The price to pay for the “have now, pay later” philosophy is that you certainly will pay later. Unfortunately, some high street banks have contributed to this philosophy. My own bank had posters in the branch stating “why wait, have it now!” Debt imprisons you in a job you do not like, creates stress and anxiety in your life, and erodes your wealth creation program. You will never become rich while you are in debt. Teach your kids the value of delayed gratification. “If in doubt, go without”.

* Your financial health is really the difference between how much you earn and how much you spend. It therefore makes sense not to pay any more money for something than you have to. Teach your children that bargain hunting does not make you a miser just a sensible individual. If you see the same item in two different shops with a $20 price tag difference, from whom are you going to make the final purchase?

* Eventually everyone is offered a “sure-fire” method of making a fortune, whether it is the three-card trick, an once-in-a-lifetime investment plan, or some time-limited business opportunity only available to a select few… Always check these “opportunities” with a fine toothed comb. Do not part with any money and remember – if it is too-good-to-be-true it is usually is. Teach your kids that wealth creation is a simple and timeless process based on common sense.

Silly question – If you had learned the above principles when you were 10 years old, and had applied them every day of your life, would you be financially healthier today? I know I would…
So what are you waiting for? Teach your kids the timeless truths of acquiring and keeping wealth. Like most parental advice, they probably will not appreciate it now. In later life, they will be thankful that you did. Knowledge truly is the most precious gift you can give.
I also recommend a board game formatted by Robert Kiyosaki (author of Rich Dad, Poor Dad) called ‘Cashflow 101′ – I played it for the first time last week and had sooo much fun…it’s an educational tool (wish all educational programs were this much fun).

This is a game that will change your mind set and help you break out of your old thinking patterns about money…
If your children are really young and you want to give them a powerful start there is a childrens version called ‘Cashflow for Kids’.

Shared with you by – Maureen Millar

Jim’s Bookkeeping Northern Gold Coast (Helensvale QLD 4121)

Tags: Bookkeeping, cashflow, families
Posted in Bookkeeping, Gold Coast | Comments Off

When will you start to make a profit?

March 17th, 2011

Do you know your Break-even point?

A Break-even point analysis is a powerful management too, and one that is critical in planning, decision-making and expense control. Break-even analysis can be invaluable in determining where to buy or lease, expand into a new area, build a new plant, and many other such considerations. Break-even analysis can also show the impact on your business of changing your price structure. As the price goes down (and so your gross margin goes down), breakeven shoots up – usually very rapidly. Break-even analysis will not force a decision, of course, but it will provide you with additional insights into the effect of important business decisions on your bottom line

Break-even refers to the level of sales necessary to cover all of the Fixed and Variable costs

FIXED COSTS
Fixed costs are those costs or expenses that are expected to remain fairly constant over a reasonable period of time. These costs are relatively unaffected by changes in output or sales up to the point where the level of operation reaches the capacity of the existing facilities. At that point, major changes would have to be made such as the expansion of existing plant and equipment or the construction of new facilities. Such actions would increase the fixed costs. However, under normal operating conditions, the fixed costs (also referred to as indirect costs, overhead) will remain constant.

VARIABLE COSTS
Variable costs are those costs or expenses that vary or change directly with output. These costs are associated with production and/or selling and are frequently identified as “costs of goods sold”. As compared with the fixed costs which continue whether the firm is doing business or not, variable costs do not exist if the firm is not doing business. Thus, by definition, variable costs are zero when no output is being produced. At that time Fixed Costs are the only cost that will be incurred.

Examples:
Fixed Costs

Wages/Salaries
General Office expenses
PAYG tax
Utilities
Rent
Franchisee fees
Operating supplies
Insurance
Advertising
Legal and accounting
Depreciation
Interest
Maintenance and cleaning
Dues and publications
Mortgage payments
Interest on loans

Variable Costs

Sales Commissions
Lead Fee
Fuel
Bad Debts
Cost of goods sold
Postage
Casual Labour
Benefits

Break-even point is calculated from the most current income statement to identify each cost as either fixed or variable. Fixed costs are independent of sales level, while variable costs rise and fall with sales. Mixed costs involve elements of both. Most costs will fall readily into fixed or variable. For those that don’t, allocate 50% to fixed costs, and 50% to variable.
Once your Break-even analysis is calculated and you will know your Beak-even point (a graph will give a visual picture) you will also learn at what point you begin to make a profit given the Fixed and Variable costs in their present form.
Now you can work on important points to increase profits without investing extra funds and work on ways to lower your Break-even point

1. A possible increase in utilization of existing capacity through reduction of idle time
2. Better repair and maintenance of equipment to reduce downtime – time elapsed from the moment the machine breaks down to the time it get back in service
3. Improved working schedules – labour productivity
4. Diligent purchasing and inventory levels
5. Longer business hours
6. Improved production control
7. Technology improvement
8. Increase prices

Let’s look at increasing prices…

The most obvious way to lower your Break-even point is to raise prices. If prices can be increased without impairing sales (and without increasing costs) the Break-even point will go down. For some companies and products, this is not an option. Remember that attempting to increase profits by simply raising prices can be risky. Unless your customers perceive greater value in your product or service, increasing prices may negatively impact sales.

SUMMARY
Break-even analysis and techniques are the tools that finally tell the business owner when they are making a profit. Break-even graphs and analysis need to be a part of every budget – they enable you to gauge the business’ production rate accurately and gives you additional insight into important business decisions.

You can do a better job of handling cash flow e.g. If you are projecting your sales volume to fall below the Break-even level during slow periods, you can be prepared to closely monitor costs to minimize losses.

You cannot ignore a break-even point! Many businesses have failed because they were not aware of their Break-even point? You may even decide to completely discontinue a product or service after this kind of analysis! And, that may be a reasonable business decision if it is better for you to scrap an idea and invest your time and money in a more profitable direction.

Contact your Jim’s Professional Bookkeeper today to aid you in determining your Break-even Point
Contribution by www.bixbound.com and Dr William R Osgood

Shared with you by – Maureen Millar

Jim’s Bookkeeping Northern Gold Coast (Helensvale QLD 4121)

Tags: bookkeeping services, break-even, business growth, cashflow, small business
Posted in Bookkeeping, Business Planning, Gold Coast, small business | Comments Off

Cut into tiny pieces them those credit cards…

March 6th, 2011

Credit card debt is a devastating, emotional and incredible stressful roll-a-coaster ride which plays heavily on your attitude, shows in your temperament, your personality, can strain relationships both personal and business.

Eliminating credit card debt will free up funds in your monthly budget. It will also improve your credit rating so you can qualify for better rates on future purchases, such as a car or home.

To start getting your credit cards under control:-

1. lower your interest rates.
2. then develop a payment strategy.
3. or if you need some outside discipline, turn to a debt management company.

Start Lowering Your Interest Rates

Go to your Bank and talk to them about a lower interest rate. Remember you are paying an increased interest rate for those ‘Award Points’ Also, question the Insurance on the credit card, some are beneficial and necessary – some are not.
High interest rates make it nearly impossible to get a handle on large credit card balances. But by lowering your interest rates, you can increase your payment on those cards’ balances without increasing your overall payment.

The two most common ways to reduce your rates are to open a new credit card or consolidate with a loan.

1. Transferring balances to an introductory low or no rate card is a no cost solution BUT BE WARNED! You need to ensure you pay OUT the old card and cut it into little tiny pieces to destroy it along with notifying the bank that you no longer require that card. Otherwise, you end up drowning in much deeper debt -remembering that the low rate card rate doesn’t last forever (always clarify at what interest it will jump too)-eliminate the temptation – to use the old credit card especially when circumstances and situations get tight. If you are behind with another creditor on paying a bill, talk to them of a payment plan don’t be tempted to stick it on the plastic.

Credit Cards only really work for you if you can pay them out in full before the interest and other charges are dumped into them

2. Consolidating bills with a home equity or personal loan provide long term low rates with some closing costs involved.

Develop A Payment Plan

Once you get your interest rates under control, develop a payment plan to get out of debt. One course is to make extra payments on the lowest balance. Then when it is paid off, use those extra funds to pay off the next lowest balance.

The other option is to make extra payments on the highest interest account. Even though it may take longer to close out an account, you will see a long term savings in your interest costs.

Get Help Before It’s Too Late

Before you start thinking about bankruptcy, look at a debt management company to help you deal with your debt. For a small fee, they will pay your bills, lower your rates, and structure a debt elimination plan. While your credit score may temporarily decrease, debt management is better than a credit report with a bankruptcy or foreclosure.
Evaluate all of your options before settling on a credit card payment plan. The greatest savings are often found with the do-it-yourself approach of debt consolidation and budgeting. However, debt management companies provide a valuable service to those who need more structure to get out of debt.

The end achievement will give you a great deal of self satisfaction and you will no longer feel overwhelmed by the enormity of struggling with credit card debt

If your business is struggling with credit card debt and you need help to find a way out of it contact us today for a complimentary review of your situation… it might not be as bad as it feels.

Shared with you by – Maureen Millar

Jim’s Bookkeeping Northern Gold Coast (Helensvale QLD 4121)

Tags: Bookkeeping, credit cards, debt, interest rates, small business
Posted in Accounting, Bookkeeping, Business Planning, Gold Coast, small business | Comments Off

There’s “bookkeepers’ and there’s “bookkeepers!”

February 28th, 2011

… and then there’s Professional Bookkeepers who are Registered BAS Agents who will – Save You Time, Save You $$ and Make You $$

There can be a huge difference in skill level of people that call themselves bookkeepers. Just as an apprentice “chippie” and his boss with 30 years construction experience may both call themselves “builders,” people representing themselves as bookkeepers can range from data entry clerks through to qualified management accountants.
A Professional Bookkeeper is identified by the fact that they are:

working to a Code of Practice Standard, a Code of Conduct and a Code of Ethics
a member of an accredited association recognised by the ATO
registered with the Tax Practitioners Board as a BAS Agent
able to produce a current Practicing Certificate which illustrates their qualification to offer their services publicly
constantly furthering their studies to expand their knowledge and service
prepared to work with the Client’s accountant on a professional level to ensure their client’s needs are best served
helping the client achieve their business goals
accredited in the use of accounting software.

How will they save me Time?

Time is a non-renewable resource. Every second you waste is a second you will never have back. Effective time management is one of the biggest keys to success for any business. Try this little exercise out to see if you are using your time in the best way possible:

Make a list of the top five most important tasks that need to be done in your business on a daily basis. These should be the things that literally put more money in your pocket.

Now, make a separate list of the tasks you spend the most amount of time on each day.

Don’t worry, I’ll wait until you actually put these two lists down on paper…

Now, if those two lists are not identical then there is a problem with your time management.

The solution is to outsource the tasks that are on the second list but not the first. If you are like most business owners then bookkeeping is certainly on the second list (or even worse it is not on it at all). Finding a service to handle this task will be a very important step in freeing up time for the tasks that actually grow your business. Struggling to stay on top of your paperwork along with the complexities of accounting and GST is not an ideal task.

OK, how will they Save me $$ and Make me $$

Do you think is sounds a little strange that hiring a Professional Bookkeeper will save you money? Well, it really comes down to simple mathematics. There are likely two scenarios right now for how you are handling your financials. Either you are doing it yourself or you are paying a member of your staff to do it for you. Both of these cut deep into your bottom line, and I will tell you why.

If you know your business well then you will know exactly how much an hour of your time is worth to the company. As we talked about in the previous section, there are some tasks that are just more important than others. For example let’s say that when working on the most important jobs your time earns your business $100 per hour. Now compare that to the amount of money it would cost to outsource to bookkeeping services. Even if it costs as much as $55 per hour you are still making an extra $45 per hour by having someone else do it. When you do a $55 per hour job yourself instead of a $100 per hour one, you are wasting a lot of potential money.

The other scenario is that you are paying an employee to do the job, either part or full time. When you factor in superannuation, sick pay, holiday pay and pay raises the cost can add up quickly. In most cases you can outsource this job to a dedicated Professional Bookkeeper and save a lot of money now and in the future.

Look at it this way…

What is the average cost of your DIY Bookkeeping per month? Answer: $ _________
How much of your cost for DIY Bookkeeping is claimable as a business deduction? Answer: Nil
The total amount that is claimable as a business deduction for using a Professional Bookkeeper?

Answer: 100%

Added Bonus – Help Prevent Costly Mistakes

Incorrect GST coding usually resulting in under claiming GST Credits

You probably know that mistakes in your bookkeeping can seriously damage your business. This is much more likely to happen if the job is being handled by someone who is not specifically trained for it. Most business owners are not bookkeepers. If bookkeeping was something you loved and excelled greatly in than it is not likely you would have started your current business in the first place – you’d be a bookkeeper. The combination of inexperience and distaste for the job is a recipe for costly mistakes.

Here lies the added Benefit of using a Registered BAS Agent.

A Taxpayer is provided a level of ‘consumer protection’ in meeting their GST legislative compliance obligation requirements
BAS Agents get extensions for BAS lodgments and Payment concession of up to 4 weeks after the due date
BAS Agents get extension for Payment Summaries until 30th September instead of 14th August
Clients are assured that a registered BAS Agent can ‘do the BAS legally’ for them, are accredited to help and can therefore be relied upon to assist.
A Taxpayer who engages the services of a Registered BAS Agent has access to ‘Safe Harbour’ which removes penalties (Failure to lodge – FTL) from certain administrative activities such as late lodgement, misstatement

When does the Safe Harbour from FTL not apply? – when it is lodged by the Taxpayer

Save yourself some trouble and outsource this job to someone who really knows what they are doing.

“Oh but I just send it to my accountant” I hear you say…

And we hear it all the time but unfortunately what many business owners are confused about and and don’t realise is that while very similar, a Professional Bookkeeper focuses on maintaining timely and accurate records of financial data – ranging from income, payments, Payroll, BAS, Reconciliation, sales, and purchases. An accountant, on the other hand, takes the information recorded by the bookkeeper in order to create financial statements. They are valuable for preparation of tax returns and conducting an overview of the business

DID YOU KNOW THAT YOUR BEST $$ VALUE IS ACHIEVED IF YOU SPEND 80% OF YOUR ACCOUNT MANAGEMENT TIME WITH YOUR PROFESSIONAL BOOKKEEPER AND 20% WITH YOUR ACCOUNTANT…

Shared with you by – Maureen Millar

Jim’s Bookkeeping Northern Gold Coast (Helensvale QLD 4121)

Tags: accounting services, bookkeeper, Bookkeeping, bookkeeping services, business growth, small business, tax
Posted in Accounting, Bookkeeping, Brisbane, Gold Coast, Software, Sunshine Coast | Comments Off

Picked anyone’s Brains today?

February 21st, 2011

A Human Brain Many of my most important clients are small business owners. I make a study out of what makes them successful and what pitfalls they need to avoid.
I was telling Bob, one of my clients, this week how I was chatting to a Business Owner I met (let’s call him Max) who told me about his business so I couldn’t help but to ‘pick his brain’ (I thinks it’s good to do this as you are not only getting practical info but real knowledge from someone who has ‘fruit on the tree’).

He explained how his company started from the boot of his car (and it was a small boot so that’s a small business). And now today he is the CEO of a multimillion dollar business.
Max gave me ‘food for thought’ and this is his list of the

Top 10 Ways to Grow your Small Business:

1 – Know yourself. Do a SWOT analysis.
What are your Strengths, your Weaknesses, the Opportunities and the Threats? Examine and understand each. In every strength, there is a weakness and in every weakness there is strength (e.g. you are small so lack financial clout, the advantage is by necessity you will be more creative). The better you know yourself the more successful you will be. By knowing yourself you not only know your areas of opportunity, you know what areas to avoid.
2 – Set goals. This sounds almost too simple but many people and businesses do not set goals and write them down. Goals can keep you focused on where you want to go and how you need to get there. Set specific measurable goals with timelines and track progress towards them. Set goals in areas that you know you can win (if you did the SWOT in 1, you will know those areas).
3 – Grow within profitability. Often I see businesses who set the goals like I speak about in point 1 and grow their expenses in anticipation of sales only to find the sales do not materialise at the level they thought. Sell first then add overheads.
4 – Sell more to your existing customers. Look at what they buy from other sources that you might be able to sell them. You already have the relationship with your customers. You are already spending the time to service them so your incremental cost is quite low. For example, if you supply them with toner cartridges, it is easy to sell them some printers or other hardware or software.
5 – Sell to more customers. You obviously have something worth buying or you would have no customers. What other customers might use this service. Then market and sell to that audience – email, mail, fax, advertise, call, visit, etc. Ask your existing customers for referrals. Sell in a larger geographic area. Take the knowledge and systems you have to broader areas. Warning on this – the grass is not always greener. It costs more to sell in markets further away. You can lose your advantage.
6 – Grow your people. What I have consistently done is to look at what I do and figure out who can do it (in many cases better than I can). By learning to delegate, I have been able to not only grow myself but grow my people and my business.
7 – Create a change culture in your business. People need to be told that things change. Yes, I wish for the good old times but without change, we would not grow. There is an expression “if you do what you always have done, you will get what you have always got”.
Max’s variation on this is “if you do what you have always done (even if it was successful), you will go bankrupt”. Set a goal to do something new every month.
8 – As one of my heroes, Thomas Edison said, “good things come to those who hustle while they wait”. In business, speed wins. Companies and people with a high sense of urgency win. If you do not have this in your business – create it. Set deadlines. Set goals. Do it now. This can be one area that small business can beat big business.
9 – Focus on learning. People and companies that learn, win. This ties into point 7. You need to be a life-long learner. Spend part of your time on learning. Develop a habit of constant learning.
10 – I am a big believer in the good use of time. If you know your goals and focus your time appropriately, you will grow. I study time and constantly polish my time systems.

Many thanks for the your words of wisdom Max!

Shared with you by – Maureen Millar

Jim’s Bookkeeping Northern Gold Coast (Helensvale QLD 4121)

Tags: bookkeeping services, business growth, profits, small business
Posted in Bookkeeping, Brisbane, Business Planning, Gold Coast, Sunshine Coast, small business | Comments Off

SMALL BUSINESS CONTRACTS – A must read guide to avoid being screwed over…

February 12th, 2011

Received this great Article from my Northern Gold Coast Chamber of Commerce on 10th February and couldn’t wait to get it out there – this is a must read…

Lady reading It’s a common and legitimate sport for business owners to complain about government being out of touch and obsessed with regulation. But occasionally governments even the federal government, do produce good things, like the Department of Innovation’s new guide for small business contracts titled Contracts Made Simple which can be downloaded by clicking the link below.
http://www.business.gov.au/BusinessTopics/Independentcontractors/Documents/IndependentcontractsmadesimpleNovember2010.pdf

The reason this guide is potentially so important to small businesses is the principle that ‘knowledge is power‘. Always remember a contract is between two equal parties. For the majority of small businesses the hardest word to learn to say is NO.

Small business people can often be confused by contracts or overawed by legal terms. They’ll often take a job, ignore the contract risks and hope nothing goes wrong. But if people use the government guide they’ll have reliable facts upon which to better judge contracts. They will be more confident and prepared to negotiate to change contracts so that the contracts are balanced and protect their interests.

The guide, put together by the Department of Innovation, advises how to avoid being screwed over as an independent contractor, legitimising advice that has been offered by private organisations for years. When the information comes from the government people are more likely to take it as the truth.

For too long, confronted with all sorts of evidence of unfair contracts, business owners have taken the view that this is simply a part of running a business and that you can’t expect fairness. It’s certainly the position many solicitors take when they write contracts which are totally one sided. These are designed to exclusively protect the interests of their clients at the expense of the other party. Small business people are prey to this. They become victims because they rarely have the financial muscle to afford countervailing legal advice.

This is where the new government contract guide is helpful and also possibly quite powerful. The new contract guide is logically laid out and uses refreshingly clear, non-legalistic language. It also goes through all the basic items that a contract should sensibly contain, rather than providing a generic contract template.

For example, it covers descriptions of indemnity, intellectual property and confidentiality issues, payment and performance expectations, exclusivity and restraint of trade and – most importantly – contract termination and dispute resolution procedures. It looks at associated laws that the contract must be factored around, including workers compensation, taxation, superannuation, anti-discrimination and collective bargaining under the Trade Practices Act. It also gives a sensible description of Personal Services Income tax law. But more broadly it helps foster a better overall business environment.

Shared with you by – Maureen Millar

Jim’s Bookkeeping Northern Gold Coast (Helensvale QLD 4121)

Tags: contracts, government, Legal, small business
Posted in Bookkeeping, Home Based Business, Legal, small business | Comments Off

Jim's Bookkeeping Brisbane

Jim's Bookkeeping Blog

Keep super records or be super charged

Do you employ people?

Have you ever missed the cut-off for superannuation?

Can the superannuation guarantee charge be offset?

Crackdown on Sham Contracting

Turtle tax – a reminder to know when you’re in business and when you just have a hobby

How to tell if you are in business…

“Have One Week Off”, 7 days to de – stress…

1. Acknowledge stress is good

2. Avoid stress sneezers

3. Learn from the best

4. Practice socially acceptable heavy breathing

5. Give stressy thoughts the red light

6. Know your trigger points and hot spots

7. Burn the candle at one end

Remember ”Don’t Sweat the Small Stuff”

Teach Your Kids How To Look After Money

When will you start to make a profit?

Do you know your Break-even point?

Let’s look at increasing prices…

Cut into tiny pieces them those credit cards…

To start getting your credit cards under control:-

Start Lowering Your Interest Rates

The two most common ways to reduce your rates are to open a new credit card or consolidate with a loan.

Develop A Payment Plan

Get Help Before It’s Too Late

There’s “bookkeepers’ and there’s “bookkeepers!”

How will they save me Time?

OK, how will they Save me $$ and Make me $$

DID YOU KNOW THAT YOUR BEST $$ VALUE IS ACHIEVED IF YOU SPEND 80% OF YOUR ACCOUNT MANAGEMENT TIME WITH YOUR PROFESSIONAL BOOKKEEPER AND 20% WITH YOUR ACCOUNTANT…

Picked anyone’s Brains today?

Top 10 Ways to Grow your Small Business:

SMALL BUSINESS CONTRACTS – A must read guide to avoid being screwed over…

Archives

Categories