We’ve helped many business owners around Mandurah with getting the bookwork upto date, and even helped them avoid LATE FEES issued by the ATO, so if you are late with lodging your Business Activity Statements, then what options are available to you?

We’ve listed ten options for those small business owners around Mandurah that have failed to lodge your BAS for the reporting period 1 April 2011 – 30 June 2011:

1) Take the easy option and ignore it, hoping that the problem will go away

2) Have a panic attack and wonder what to do now you’ve missed the deadline

3) Do what most people do, and just accept that you’ll have to pay a penalty for late BAS lodgement

4) Have sleepless nights wondering how to complete the BAS even though it’s going to be a late lodgement

5) Call the Australian Taxation Office (ATO) and tell them that the canary grabbed the BAS form and has shredded it to make a nest

6) Fossic through your paperwork in the glovebox of your car along with all your other unopened mail, and see if you can even find the Business Activity Statement whilst making a mental note that it should have been lodged by the end of July

7) Call your accountant and ask him / her what you should do next

8.) Do nothing, and just accept that fact that you’ll be fined for a late lodgment, and look forward to receiving fan mail from the ATO

9) Grab a cold one from the fridge, sit in your favorite chair and see what’s on the idiot box

10) Contact us (quickly) because we may be able to get an extension for you, as well as getting all your documentation sorted out to help you ensure that you’re not going to be paying ms Julia more than you need, since she’s shown us all how good she is at spending all that money

Having an inaccurate set of bookkeeping records can create some challenges dow the track

As a result there’s some Mandurah small business owners that discovered their bookkeeping has become a nightmare for a number of reasons:

Any successful business owner will tell you that if you don’t have the skills or the passion to carry out certain tasks in your business, then you shouldn’t be doing them – One of these areas is the bookkeeping.

Quite simply some people seem to be “naturally gifted” with numbers, whereas others would rather crawl through the desert on broken glass than do their own bookwork

It’s totally unproductive to be getting frustrated and stressed out when you can outsource your bookeeping to a professional bookkeeper

An inexperienced bookkeeper can quickly become a liability in your business though making innocent errors, taking more time than is necessary, or simply not having the expertise

You can quickly come unstuck because a well-meanng friend or relative has offered to do your bookwork at “mates rates” or even for free.

Even some so-called “professional” bookkeepers just do not have the experience or expertise to be “let loose” on your accounts. They may be recently qualified and tell yo that there’s new legislation requiring bookkeepers to become registered BAS Agents before they can lodge your Business Activity Statements.

Before engaging a freelance bookkeeper ask them how many clients they have and how long they’ve been freelancing

MYOB software is not simply “plug-and-play” so that simply installing it into your computer will not mean you are ready to do your bookkeeping – you’ll need to enusre that the chart of accounts are correctly set up, and all the tax codes are correct for your specific business. Failure to do that can result in you paying the Australian Taxation Office (ATO) more than is necessary.

Contact us today for a bookkeeping health check

With the Christmas holiday period over for many small businesses, it’s time to get all your paperwork together and get it to your bookkeeper or outsourced bookkeeping service- to report on the 2nd quarter (1 September to 31 December 2009) to get your BAS lodged on time.

Maybe the Australian Taxation Office (ATO) does have a heart, after all. Rather than asking for lodgements on 28 January, they automatically give everyone an extension to the BAS lodgements to 28 February. This is, of course, a Sunday. However, the next business day is not Monday, since it’s a public holiday in Western Australia. Thus the Q2 BAS is due on 2 March 2010

However, don’t be fooled by their grace, because there is NO WAY that they’ll consider granting an extension after that date. So you need to ensure that you have your Business Activity Statement lodged by 2 March 2010

If you are struggling with your bookkeeping and need help, if you do not have a bookkeeper, or are looking to outsource to a mobile bookkeeping service, then contact us now

You may use MYOB or Quickbooks accounting software – or even some other system for your bookwork. We can assist you with any challenges, or even just relieve you of the burden of the book-keeping

Our bookkeeping Service has clients in and around Mandurah, Dudley Park, Coodanup, Greenfields, Erskine, Pinjarra and Meadow Springs, Australia Contact us here for details

The amount was for AUD$210.75. Nothing strange about that, except for the spelling and the grammar.

They ask you to click a link that takes you to a website [ wv.us ] not anything to do with [ ato.gov.au ]

DON’T CLICK ON THE LINK – who knows what may happen – it could result in a little piece of software that invades your computer and extracts your usernames and pass words

It’s probably going to ask you for all your credit card details, so that the fraudsters in question can then go on a spending spree in London!

Not since Kevin Rudd organised for us to have a cheques sent out from the ATO have we had a tax refund.

And, thank you Mr Rudd, because the cheques arrived a couple of days after the ATO sent us a request for us to pay more tax – so much for the “Stimulus Package” – a waste of money, a publicity stunt – and a wonderful inheritance for the yournger generation of this fine nation.

Apparently the Australian Taxation Office thinks so – but that could be because it’s a government organisation that really does not have to worry about the bottom line

Where is the sense (cents) in making a five cent payment?

One of our bookkeeping clients received a communication from the ATO advising that they owe $0.05

Let’s just think about this simple transaction in terms of human and energy resources:
There’s the cost the ATO $0.55 for the postage. That’s before you take into account the cost of printing the letter, the cost of the paper and the envelope, and the cost of paying someone to handle the letter.

Our bookkeeping client was going to make a phone call, but that would cost 500% more than the value of the enquiry

Whilst they do not have a problem paying the 5 cents, it’s quite obvious why ordinary hard-working Australians are having to pay so much tax overall.

Apparently there is a great deal of wastage of resources at the ATO – typical of the Public Service that doesn’t have to worry about keeping costs down

So, our bookkeeping client was going to do internet banking and make a BPAY transfer, to find out that the ATO does not accept such small amount of payment for a BPAY transfer

So how does our bookkeeping client pay the 5 cents that the ATO is asking for?
Are they expected to go to the Post Office and make a payment over the counter?

Again, what is the cost of that simple exercise?
The Government is concerned about carbon pollution, yet the ATO wants our bookkeeping client to jump in their gas guzzling motor vehicle to drive to the shopping centre, find a car park, then walk to the Post Office, stand in a queue, take up the time of a Post Office Staff member, to process a 5 cent payment

Can anyone from the Australian Taxation Office or the Federal Treasury please tell us, where is the sense (no pun in tended) in making this five cent payment?

Are You Paying More GST than You Should?

When you consider that many small business owners around Mandurah, Dudley Park, Coodanup, Greenfields, Erskine, Pinjarra and Meadow Springs believe that bookkeeping is an expense, rather than an investment, it is hardly surprising that so many people who have no idea what they are doing complete Business Activity Statements. Contact us today for more information.

Many clients approach our professional contract bookkeeping service because they realise that a mobile bookkeeper can save them heart-ache and stress in getting their paperwork upto date.

Speaking to a client in Greenfields last week, it transpired that he had absolutely no idea what was involved in running a business from the financial aspects. As long as there was money in his pocket at the end of each week to pay the bills, he was happy.

When the first BAS form arrived on his doorstep he just figured he’d guess what figures went where and hope that it would all sort it self out at the end of the financial year

The crazy thing is, that by having to report quarterly Business Activity Statements, small businesses are being encouraged to record their business activities every three months.

If you leave it all for your accountant at the end of the financial year, then guess what? It’s all too late.

If you’re now faced with a large tax liability after the end of the year, there’s nothing you can do about it. Whereas if you are aware of the situation beforehand, then there maybe avenues that you can follow to reduce your tax liability. We are not registered tax agents and cannot give guidance in such matters, so you need to speak to your accountant.

We’ll look at your bookkeeping and assess your requirements. It’s not uncommon for us to find some major savings for our clients. Contact us today for more information.

The Australian Taxation Office (ATO) requires you to keep business records:

• for five years after they are prepared, obtained or the transactions completed (whichever occurs later), and
• in English, or in a form that the ATO can access and understand in order to determine your tax liability.

You should keep records for a longer period if you use information from those records in a later tax return (for example, claiming a loss carried forward from a business activity in an earlier year). The records should be kept until the end of any period of review for that later return.

Records relating to assets for capital gains tax purposes may also need to be kept for a longer period. You can issue and store records in either paper or electronic form.

There are penalties for not maintaining the required records and for not keeping them for five years. Keeping good records will help you avoid these penalties.

Keeping good Business Records Makes for Good Business
By having an organised set of records, you’ll find it so much easier to:

• complete your Business Activity Statements (BAS) and prepare your annual tax returns

• monitor the health of your business
• make sound business decisions, for example, by keeping track of debtors and creditors to ensure your cash flow is adequate
• demonstrate your financial position to banks and other lenders, and also to prospective buyers of your business, and
• make best use of your tax adviser.

Rather than paying an accountant or tax agent to sort through a shoebox of paperwork, outsource a freelance mobile bookkeeping service, or have professional bookkeepers come into your premises to generate well prepared records. That way you can present all the necessary information to your accountant or tax agent who can then advise you accordingly

As bookkeepers we continually see the importance of monitoring the progress of your business. By having good records you can quickly see where your business is improving, or what parts of your business may need some changes. Your bookkeeper is an essential part of your business, and therefore should be regarded as a necessary investment not an unnecessary expense

Identifying sources of your receipts
Most businesses have money coming in from a number of sources, and you’ll be spending money on both personal and business items. You need to identify and differentiate your business and personal expenses, so that your bookkeeping accurately reflects the costs incurred in running your business

Accurate Financial Statements
Your bookkeeper should be able to quickly prepare accurate financial statenments when called upon so to do. These may include balance sheets and income(profit and loss) statements. The P & L shows your income and expenses for a given time frame. The balance sheet shows your assets, liabilities and equities for a specific date

Legitimate Expenses
The ATO recognise that there are legitimate expenses incurred in running your business. Any claims that you make for deductions need to be substantiated. By keeping your bookwork in order, having your bookkeeper file all the relevant documentation in order will be important when the Tax office conducts an audit in your business.

Preparation of Tax Returns
Just as you need to support claims for legitimate expenses, your bookkeeper needs to record the income coming into your business. By having an efficient tax system in place, you’ll be able to track all income, expenses, and credits for your tax returns.

Keeping separate records for each business
It can be tempting to record all of your business activities in the same set of accounts. However, what happens if you decide to sell one of your businesses? How do you show which business is generating what income.

The type of business you operate affects the type of records you need to keep for ATO purposes. You should set up your books using an accounting method that clearly shows your income for your selected tax year. You may choose to use an accounting software package such as MYOB or Quickbooks. Contact our team of mobile freelance professional bookkeepers for more information.

Bookeeping is an important part of any small business

Bookeeping is an important part of any small business – whilst it is historical, in recording past transactions of money coming into and going out of your business, book-keeping can also help with managing the cash flow of your business

Whilst world leaders have a money-tree policy to create cash, the average small business owner has limited opportunities when cash flow gets very tight, as in the present economy.

Contractors in the building industry can quickly run up large accounts with builders and developers, and forget that even large companies can fall over in a recession.

On Australia’s Gold Coast a large property developer has collapsed with millions of dollars debt, and often the sole tradesman or small business owner is at the bottom of the food chain, even though they are the ones that need the cash the most, not the Banks or Finance Companies

Our bookkeeping team of mobile freelance bookkeeprs have put together ten tips to help you manage your cash flow:

1. As bookkeepers, we’re amazed by businesses that issue invoices with no specific payment date or credit terms. There’s nothing wrong in specifying the date on which you expect payment – after all, don’t the utility companies do just that on the invoices they send you?

2. Why not issue the invoice the day that you provide the goods / services, rather than waiting until the end of the week, fortnight, or month? Some business owners choose to issue their invoices monthly, knowing their creditors only issue payments monthly

3. There’s been a recent trend, again with utility companies, to offer an incentive to pay early, such as giving a discount. Notice that in reality they are adding a penalty for late payment rather than a discount

4. Ask your customer for a deposit in advance, particularly if they are requesting a high ticket item that you have to purchase from your supplier before receiving payment from your customer

5. If you find that you have customers that are regularly late in payment, offer them a discount if they pay by credit card

6. Control the stock in hand. We’ve all seen carpet retailers making outrageous claims that they’ve ordered too much stock and just HAVE to sell it quickly this week at ridiculously marked down prices. It may be an effective marketing ploy for them, but if they really ran their business by constantly over-stocking, how long would they really survive?

7. Small business owners can find it beneficial to make part payments regularly on larger invoices, rather than waiting to pay a huge account in one large lump sum. By managing your invoices can you keep a tighter control on your cash flow

8. Ensure that you bank your cheques/ cash regularly rather than doing the banking once a fortnight/monthly – By ensuring you have regularly payments coming in to your business, you’ll be better able to pay bills as they come in

9. When cash flow gets tight in the business, have a look at how much money you really need to be drawing out as wages for yourself

10. Have a review of your expenses in running your business and see where you can make savings straight away. We’re seeing this with department stores that have seen in a drop in sales, yet they’ve managed to maintain their profits. How are they doing that? Cutting staff levels and making the remaining staff work more efficiently

Larger companies paying experts huge consultancy fees to examine ways to reduce overheads and increase profits are using many of these tips. You can follow what they are doing and implement many of those practices in your own business.

When you see a change in behaviour and/ or management of the departments stores and utility companies, just pause to think for a moment how you apply those same changes in the operation of your business

If you have no cash-flow strategy in place, then contact us now, so we can get together and help you