Business Activity Statements BAS are due on 2 march 2010 for businesses that report their GST obligations quarterly

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 Mrach 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 Mrach 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 syatem for your bookwork. We can assist you with any challenges, or even just releave you of the burden of the book-keeping

Our bookkeeping Service has clients in and around Cockburn, Melville, Fremantle, Canning Vale, and South Perth, Western Australia. Contact us here for details

Here are ten options to consider if you have failed to lodge your BAS for the reporting period 1 July 2009 – 30 September 2009:

Contact us (quickly) because we may be able to get an extension for your BAS

1) Bury your head in the sand and hope that the whole thing will go away

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

3) Shrug your shoulders and just accept the fact that you’ll be making a late lodgement of the BAS

4) Stay up all night sweating away trying to complete the BAS even though it’s going to be a late lodgement

5) Call the tax office (ATO) and tell them that your dog grabbed the BAS form and has buried it in the garden

6) Look through your pile of paperwork, because you remember seeing the Business Activity Statement somewhere, sometime whilst making a mental note that it had to be lodged by the end of October

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) Go to the fridge and grab a coldie, sit down and relax in frnt of the widescreen TV that Kev’s just help you buy

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 Kev07 more than you need, since he’s shown us all how good he is at spending all that money

For many small business owners and especially for their bookkeepers around Fremantle and Canning Vale, July is always a busy time of year.

With end of financial year reporting, together with reporting of the 01 April to 30 June quarter, businesses that are behind in their paperwork can struggle under extra pressure that they really do not need

Cash flow has certainly tightened up in the economy. As bookkeepers, we’ve seen that invoice payments are being dragged out longer and longer, as suppliers wait to be paid by customers, and service providers wait to be paid by their clients

The phone’s been ringing as desperate business owners in a panic wanting help with their MYOB and Quickbooks files. In most cases, they can simply email us the files and we’ll have a look at their reporting and can generally work out where the problems are within a short time

One lady contacted us after spending two days trying to reconcile her Quickbooks bank accounts. We had a look at her file and solved the problem in 35 minutes. Look at the time and stress she would have saved if she had contacted our bookkeeping company when she first noticed that there was a problem

As a small business owner we encourage you to focus on what you do best, and we’ll do the rest

It’s the “good cop” / “bad cop” thing

You know the “good cop” / “bad cop” thing. Get the bookkeeper to get on the phone and chase up those unpaid accounts before it’s too late. As the recession that we had to have deepens, more small businesses will experience bad debts. It even happens at the big end of town.

If you don’t have a handle on your bookkeeping, then you can quickly find that those clients owing you money have nothing left to pay you with. Many operators get caught up in getting the job done, and forget to chase up payments of previous jobs.

Our bookkeeping service can help you keep a closer eye on your unpaid accounts. We can get on the phone for you. We can reconcile your accounts, track all your payments and receipts- and do so many other things to ensure that you have your financials in order.

Don’t get caught in the trap of skimping on your bookkeeping – it can be a false economy to look at saving money by spending so much time on your paperwork. Hand it over to the professionals and focus on what you do best: running your business. Contact us today for a free quote.

Are You Paying More GST than You Should?

When you consider that many small business owners around Cockburn, Melville, Fremantle, Canning Vale, and South Perth 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.

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. Contact us today for more information.

Speaking to a client in Canning Vale 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.

No sooner have we finished lodging BAS for the December Quarter, to find the January – March 2009 Quarter will soon be due. Contact us for HELP

Quarterly BAS
Most businesses submit quarterly, and the 1 January – 31 March 2009 (Quarter 3) BAS is due 28 April 09 for lodgment and payment with the Australian Taxation Office (ATO).

A new client contacted us out of desperation. Struggling to prepare all the documentation for the Business Activity Statement, she could not get the figures to balance.

We suggested she email us the MYOB data file, so that we could get a clearer understanding of where she was at with her bookwork. Contact us for HELP with your BAS

“I had trouble with my MYOB files and contacted Carol and her team and they were just excellent.
They listened and then explained what they could do to help.
Everything was done speedily, efficiently and most of all cost effectively.
They emailed me how to send my files and worked on them that day!
Most of all “they listen” and don’t treat you like a dummy!
It got me out of a potentially tricky situation and literally saved the day!
Thanks Carol.
Liz Bird, Perth WA”

Monthly BAS
If your business submits the (BAS) Business Activity Statement monthly, then 21 March 09 was the due date for lodgement and payment of the February 2009 monthly activity statements

Superannuation Guarantee Contributions
Also on that date are due the Quarter 3 Superannuation guarantee contributions (1 January -31 March) contributions to be made to the fund by this date.

If you are struggling to complete your BAS form, contact our team of Fremantle Bookkeepers for HELP

When a business gets started, the first thing you should do is to make sure that you keep track of all the costs involved in setting up you business, so that you can set up a book-keeping system correctly from day one.

If you need some help in establishing your bookeeping, then contact us right now.

What’s become a nightmare for her, is a bookkeeper’s dream

A new Cockburn bookkeeping client has been running her graphic design business for over a year operating on one bank account for everything. What’s become a nightmare for her, is a bookkeeper’s dream, using the same bank account for both her personal and business expenses. That makes our job as mobile book keepers in the Fremantle area quite a challenge. We have to ask her which items on her bank account relate to business, and which are personal.

What Bookkeeping Records Do You Need?
The type of business you operate affects the type of records you need to keep for ATO purposes. You should have your bookkeeper set up your books using an accounting method that clearly shows your income for your selected tax year.

From a bookkeeping viewpoint there are a few basic bookkeeping matters that every small business owners should focus on to reduce the fees you will otherwise have to pay your bookkeeper or accountant

Depending on your business, whether you are located in Canning Vale or South Perth, you should get into a habit of keeping records daily

• Identify the source income that you’ve received
• Ensure you keep your dockets for expenses, and a note of any petty cash expenses
• Keep a record of all your assets

The Australian Taxation Office requires you have supporting documentation such as invoices and receipts for all transactions incurred in running your business such as purchases and sales. You might generate invoices electronically using an accounting software package such as MYOB or Quickbooks, or you may hand write your invoices using an invoice book

The ATO do not like you putting a lump sum amount on invoices for amounts above $1000. You need to itemise the account into, say $300 for labour and $700 for materials

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.

It is important to retain these documents because they support the entries in your books and on your tax returns. You should keep them in an orderly fashion and a safe place.

Purchases
Purchases are items that you buy maybe as raw materials, that you then on sell to your customers. The supporting documentation may be suppliers invoices, or dockets from cash / credit card purchases made for the business

Expenses
Expenses are costs incurred in running your business, such as telephone, electricity, rent etc The supporting documentation may be utility bills invoices, or dockets from cash / credit card

Petty Cash
It’s a good idea to ensure that you have petty cash for staff to make small purchases for items such as milk, or postage stamps etc. A good policy is that if your staff cannot produce a docket, then you should not reimburse them for monies spent.

Travel
Depending on how your accountant advises you, there may be opportunities to claim your fuel expenses in running the business from Canning Vale to South Perth, or wherever your business is located. You may be able to claim for travel to meet a client at Cockburn or Melville, etc.

No problem in buying your Fremantle client a gift at Christmas time, just keep the docket, and ask your accountant if it’s a legitimate claim.

Travel, transportation, entertainment and gift expenses require some extra documentation to deduct them as business expenses. For example, for your bookkeeper to deduct the cost of taking a client to lunch in Perth, you should record the name of the client, the purpose of the lunch and topic discussed at the lunch.

Contact us for more information

PS – We are not registered tax agents and cannot give advise in such matters. You need at ask your accountant regarding what you can and cannot legitimately claim.

Why? Because it’s a legal requirement. If you want help with setting up a book-keeping system, then contact us now

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.

Whether your business is in Fremantle of Melville, 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.

Bookkeeping 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 book-keeping records and for not keeping them for five years. Keeping good records will help you avoid these penalties.

Having a Book keeping System to maintain good Business Records Makes for Good Business
By having an organised system for your bookwok, you or your bookkeeper will 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 Canning Vale, and South Perth 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 in and around Cockburn, Melville, Fremantle we continually see the importance of monitoring the progress of your business. By having a bookkeeping system to keep ordered 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, whether you are located in Canning Vale or South Perth, 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 statements 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. If you want help with setting up a book-keeping system, then contact us now

PS We are not registerd tax agants and cannot advise in such matters. Please contact your accountant for matters regarding taxation

The December Quarter 2009 (Q2) Business Activity Statement is due on 3 MARCH 2009

If you’re hoping to get an extension, you’ve got buckleys as the Australian Taxation Office have already given you an extension from 28 January to 3 March.

Really, you’ve got an extension on the extension, since the ATO normally ask for the BAS lodgment to be submitted by 28 February, which this year falls on a Saturday,

If your chart of accounts is not set up correctly, or the allocations are incorrect, you could find yourself believing that you owe Wayne Swan far more than you need.

So the next business day would be 2 March 2009, except that we’ve got a public holiday here in Western Australia, so the ATO has moved the deadline to 3 March 2009

Do you need help with your BAS lodgment?
We get many frantic calls from clients who are struggling to complete their Business Activity Statements. The few weeks leading up to the BAS deadline can be very hectic for freelance bookkeepers

Our mobile bookkeepers can come to your premises, or even better, you can simply send us your data files and we can review your work, run a few reports and make sure that you’ve got all the figures in the correct allocations.

Business Activity Statements can appear daunting. What many small business owners do not realise is that the completion of the BAS form is not where the problems can be. Where the challenge may in fact be, is the fact that the data entry is not correct.

Maybe you’ve been down to your local computer supply store and bought your accounting software at a Hardly Normal Sale. You’ve rushed home and wacked the CD into your PC and then followed the prompts thinking that everything will fall rapidly into place

If your chart of accounts is not set up correctly, or the allocations are incorrect, you could find yourself believing that you owe Wayne Swan far more than you need. And rest assured, our illustrious Treasurer will soon find a way of spending other people’s money. He’s had many years of experience at that as a Trade Unionist

If you need help with your BAS, and don’t want to pay the ATO more than is absolutely necessary, then contact us right now so we can help you out

Australian Government Reducing December Quarter PAYG by 20%

In an attempt to weather the global financial crises, The Australian Government is reducing by 20% the quarterly PAYG (Pay As You Go) instalment due for the December 2008 Quarter. If you make monthly payments, the PAYG is due on 21 January 2009, while most small businesses that report quarterly, this instalment is due on 28 February 2009

However, the information released by the ATO then adds a comment. Note that as the date falls on a long weekend in some states, the lodgement and payment deadline has been extended to 3 March 2009 Australia Wide)

You may have already received a letter from the Australian Taxation Office in relation to the December quarter PAYG reduction. Just be aware that it’s not a tax cut and it will all be adjusted at the end of the financial year

PS We are not registered Tax Agents and cannot give advise in such matters – Speak to you accountant to see how it affects you