Single-Touch-Payroll is here and as off 30th September 2019 all business (with exception of a few) should have been switched onto STP.
Single Touch Payroll is a new way of reporting payroll information to the Australian Tax Office. Businesses used to report this information to the ATO once at the end of the financial year
Now, businesses need to send information after each pay run. And those reports must be submitted using a solution that is Single Touch Payroll compliant, such as payroll or accounting software. Xero have worked hard in becoming compliant and now have a one-stop solution for all business sizes.
With Single Touch Payroll, the payment summary annual report and the payment summary will go away, you can still create a payment summary if the employee asks, but it is no longer a mandatory requirement as they will receive a notification from their MyGov account.
So you may ask yourself, “How do I become STP Compliant”, easy follow these easy four steps;
1. You can report your Single Touch Payroll through a payroll or accounting software, a registered tax or BAS agent who reports on your behalf or a low cost STP solution
2. Before you can file your payroll to the ATO, you’ll first need to set up your payroll system.
3. To be compliant with the ATO’s requirements, you’ll need to connect your Xero account to the ATO’s portal.
4. Call us and we can take the hassle out of STP for you
Most accounting software have developed their STP solution as part of their accounting package, however if you have not used an accounting package for your payroll calculations in the past you now need to subscribe to one. Xero have developed payroll only accounting packages to help you, however we do recommend, regardless how small your business is, to implement a full accounting package so that you can manage your business better.
Once you have the right software and STP compliant, remember to “File” your payroll every-time you run one.
We have all done it before, “Spring Clean”, a time we throw out the old in anticipation of warmer weather. Who says this is limited to our homes, businesses can benefit from the same approach! A good look of how the first quarter of the financial year has gone and a time to change strategies if required.
It is important to keep on top of your business and its strategies and make slight changes to them as environment, industries and general markets change. By keeping on top of these you can take advantages of new trends emerging in your industries or simply concentrating on different parts of your business which bring the most benefit.
An engaged bookkeeper partners with your business and works through with your strategies, gone are the days of “rear view” accounting where you spend most of your time looking at what has happened. Although important to see the path taken it is evermore important to look at the path forward.
At Galaxi Bookkeeping we enjoy partnering with our clients to help them achieve the most of their business by keeping their books up to date and providing insightful information on their business. Providing you with detailed information allows you to;
Another benefit of taking the time to review your business as part of a “Spring Clean” it sets milestones within your business calendar to ensure you are spending time improving your business and not just running it. Our experience has taught us that businesses grow but their processes don’t keep up. Part of a good business “Spring Clean” may be the need to identify if the business has outgrown “how you do things” and look at introducing intuitive applications to help the business into the next phase of its life.
Whether it’s a simple “how am I going”, through to “we need to change”, Galaxi Bookkeeping is here to partner with you and help you succeed.
Many businesses from time to time start to ask themselves whether they are operating the right accounting software for their business, especially through time of growth or change. The good news is that you are not stuck with the one accounting system for the whole life of your business.
Your accounting system should change as does your business, if it becomes more complex or grows your accounting software should also change to keep up with the businesses demand. If you find yourself asking some or all of these questions you should look at upgrading;
1. I am not getting the right reports from my system
2. I have some complex processes which are not catered for
3. My chart-of-account and reports no longer make sense
4. Price continues to increase but I am unsure what I am getting
The start of a financial year is always a great time to look at changing your accounting system, there are many strategies on how to bring data across and how much detail. From converting a whole accounting year at a transaction level to simple opening balances, there is a solution for all businesses.
It is important you choose an accounting system which suits your business and will grow with your business and complexity. Look at choosing a system which can;
1. Grow with your business
2. Has adaptable applications which can be integrated and help you run your business
3. Provides you the level of data and reports that can be used to make decision
4. Is user friendly and gives you a quick snapshot on the performance of your business
Another item to be aware is that many software options provide different levels of functionality, from entry level with limited transactions to multi-currency, multi employee top of the line functionality. Not only choose the software which suits you now, but one which may become useful in the future. Taken into consideration that some upgrades require a full conversion rather than a simple software upgrade.
Galaxi Bookkeeping specialise in software conversion and are partnered with Xero to provide you the solution you need. Ask us now which software application best fits your business now and in the future.
STP For Small Business
Most recently new legislation has been introduced relating to payroll which will impact small to medium businesses. Due to come into effect 1st of July this year if you run your own business it is important to be prepared.
Regardless of your business size or number of employees as of 1 July you will need to lodge all payroll information, including salaries, tax and super information to the ATO each time you complete a pay run.
Having the right systems in place and team to help you implement and manage these is the key in ensuring you meet the new legislative requirements, allowing for a seamless and efficient process so you can continue to focus on what keeps your business ticking.
For an estimated 90,000 business who don’t operate a payroll application, this means higher compliance costs with them now requiring to obtain appropriate software to calculate and lodge payroll information. Using Excel will no longer will acceptable according to the ATO.
So what do I do if I am a small business now impacted by STP;
1. Contact your accountant or bookkeeper
2. Decide on a compliant payroll software
3. Setup and commence using an application for payroll
We understand the rising costs of compliance and as a result can help you with low-cost payroll software, setting it up so that it is seamless and even look after your payroll needs. If you need help, get in contact with us for a free chat and see how we can help you direct you down the right path.
Each business requires different levels of finance help, from concise record keeping to an ear to sound out strategies, it is important that the right person is engaged to help you in your journey. At Galaxi Bookkeeping we are more than just bookkeepers tasked to keep your records up to date and correct.
We can offer a wide range of services all tailored to your requirements. With decades of experience across multiple industries ask us how we can help you above and beyond bookkeeping. Below are the various services we can offer you.
Cloud accounting is awesome, we all love the advantages of accounting on-the-go.. access your data and financials anywhere anytime. However, with leaps of technology comes risks of security and for many people the nerves of keeping data safe
Here are some great tips on keeping your data safe;
Most cloud-based software now give you the option of two-way authentication, some mandate it to ensure your data is secure. Two-Way authentication places an additional layer of security when you login. This means that in addition to your standard login, you’re required to provide another factor to authenticate your identity. This could be a unique code generated by a separate application, service or device, or something unique to you – like your fingerprint or voice. This reduces the risk of your account being accessed if your password is compromised.
All security conscious cloud software allows users to run activity reports to show who has logged on, when and what they have done. This is a great way to keep an eye for any unauthorized access to your system and also http://genericclomid.net keeps track on what is being done by those with access.
Everything now has a password, pin or unique identifier and keeping track of which password goes with what application can be quite challenging. Many users write their password down and keep it near their computer or use the one password for all their login. Although quite useful to remember password it is quite dangerous and unsafe. It is best to have unique passwords for each application being used and change it every three months or whenever the system requests it. Use a combination of capital, numbers and special characters.
Hacking can happen through people, not just computers. Calls are made to individuals pretending to be IT support and asking for passwords so that they can help you. Remember no one will ever have a need for your password. Another method of hacking is called ‘phishing’ and this happens by email. Often the email will contain links that the hacker wants you to click on. Without training, your staff might give away vital security information via phone or email.
Starting a new financial year on the right foot is as important as ensuring you previous year is closed off. We have spoken to many business who leave monitoring their business until the end of the year and by then it certainly be too late. We suggest to start on the right foot and ensure you have the right path for the year ahead.
Budget: ensure that you have looked at your budget and what your expectation is for the upcoming year. This will allow you to adjust as you go to ensure you are taking advantage of the moment. Don’t be afraid to introduce rolling forecast concepts so that you can track where you are to where you will be finishing
Technology: take time to see how you can work smarter, with the latest applications directly linking to Xero you have a wide range of applications available to you to make the jobs easier. Whether it being a rostering http://xanaxonlinebuy.com application, collection management or digital archive it is wonders how they can help
Review: don’t be afraid of wanting to review your accounts every couple of months, businesses don’t spend enough time understanding how they are going throughout the year. Our customers take advantage of our periodical health check whether face-to-face over a hot coffee or over the phone, they know where their business is and what they need to change.
Cashflow: along with your budget, forecast your cash position and know early on if you need help managing bills and receivables. You can make changes before it is too late and then miss critical lodgments which incur penalties and interest charges
If you are not getting the right attention from your accountant or bookkeeper speak to us on how we can help you with your business. A chat doesn’t cost anything but can lead to a more efficient way of thinking.
Cash flow roller coaster, saving for a rainy day – chances are you’ve heard of these phrases in relation to business at one point or another. Throughout the year, your business could go through really good times where the cash is flowing in more than you ever thought possible, but then out of nowhere that flow could dry up, leaving you feeling anxious about where the cash is going to come from next.
As stressful as it is to ride the seasonal cash flow roller coaster, it is a part of business – the way to manage it is to be smart when thing are running perfectly so that you’re ready and prepared in leaner times. Seasonal cash flow is a real thing in pretty much every business! Whether you’re a retail shop doing the best business around the holidays or you’re a financial analyst working with businesses around the fiscal calendar, seasonal cash flow affects nearly everyone. Here are some cash flow tips to implement into your business so you can weather any type of storm that comes your way throughout slower periods:
Every business goes through cycles – always prepare for them by staying focused and conservative with spending, even if the cash flow is high.
For any business, cash flow is very important – it’s also one of the things that new or small businesses stress about most often and for good reason! A good cash flow means you have funds when things are slow at the office or when you’ve hit a lull during a certain season.
As a new or small business, it’s real easy to get caught up in the day-to-day operations, which include spending money and earning profit, but it’s even more important to look ahead and track cash flow goals so there’s always a steady stream of funds coming into the business.
Here are three cash flow goals you need to have for your business, starting now:
Creating a cash flow doesn’t happen overnight, but takes careful planning and saving to make it happen. Use these tips to help guide you into positive cash flow!
If you own a business or are in the process of launching a startup, the idea of making a profit is an enticing one – but is it enough to sustain your business over a long period of time? In a word, no.
Sure, profit is something all businesses strive to have and it’s a crucial aspect of any startup, but there’s something many experts would venture to say is even more important to have: cash. Have you ever heard the term cash is king? Well, having money in the bank is one of the best signs of a thriving business – it’s vital that you know the difference between profit and cash if you want to ensure a successful launch of a startup or longevity in your business.
Profit comes in various forms through sales, but that form of money is often tied up with other aspects of the business such as assets, liabilities or even outgoing payments. So is that money truly cash? Not really. Cash in the bank gives you the freedom and peace of mind to grow your business; after all, a profitable business still has the potential to go broke when money is tied up.
Monitor cash flow and make any necessary adjustments as soon as possible in order to begin creating a cushion should you need one – you can easily do this by learning where the money comes and goes in your business. Things to look at include fixed or variable costs, startup or first-time expenses – once you have this you could determine how much you’ll have left over to put away as actual cash in the bank.
Having cash flow means that when your credit is tied up or you have unforeseen expenses, you don’t have to worry as much about closing the doors to your hard-earned business. Managing your money and cutting expenses is one way to start saving that cash for when you need it most!