Demystifying the BAS Myths

/in /by

I get a 2-week extension to lodge my BAS return through my business portal, why should I use a BAS Agent?

Because with a BAS Agency you get FOUR WEEKS. That’s an additional two weeks that you could be making your money work for you, like reducing the interest charge on your overdraft.

 

What is the difference between cash and accruals for BAS?

For an accruals BAS you need to have received the invoice for expenses to be able to claim it. But you don’t have to have paid the invoice to include it in your BAS.

And this works in reverse also, sales made during that period are included whether the customer has paid you or not.

Cash method is when income and expenses are only included when the money is paid and received. If your business turnover is over $2 million you need to be on the accruals basis for BAS.

 

My BAS return always seems to be really high – how can I reduce this?

Money due on your BAS return is not your money. Most BAS returns have three types of tax GAST, PAYGW and PAYGI.

GST due is the difference between GST collected on sales and GST paid on purchases. This is purely a calculation so there is no way this can be reduced. In fact, often more is better, as this usually means you’ve made more profit. (subject to GST free income and expenses and wages paid)

PAYGW is the tax you have withheld from employee wages. Again this figure is a direct result of wages you have paid. The only way to reduce this is to pay less wages.

PAYGI is a calculated prepayment of income tax based on the last lodged income tax return. If your income is likely to be less in the current financial year this number can be reduced, however you do open yourself up to interest and penalties if this is underestimated. If you believe this to be the case we can discuss and revise along with advice from your tax agent.

For further clarification on any of these points please call our office today on 1300 015 130. Feel free to share if your feel others would benefit.

 

Specialising in Xero bookkeeping, Notch Above is a Brisbane bookkeeper and BAS Agent located in Alderley that offers Xero setup, as well as training and ongoing support. Notch Above can take care of all the bookkeeping tasks you would rather not do, like bank reconciliations, supplier payments, payroll services, debtor control and BAS returns.

Like us now on Facebook.

Follow us now on Twitter.

Connect with me on LinkedIn.

Visit our Website.

3 Easy steps To The First Holiday Dad Has Had In Years.

/in /by

Does the prospect of going away on holiday away from your business fill you with dread?

Are you exhausted and teetering on the brink of burn out?

Are you feeling like you can’t take a break away as you are the only one who can do the key tasks in your business?

Give yourself a present this Father’s Day! By following these three simple steps you’ll be packing your bags in no time.

 

1. Identify your core business processes which are repeatable on many jobs.

If you can review what you do for customers, you will most likely find that there are core processes you perform over and over again in each job. Identify what these are so that you have a finite list of service offerings for your clients.

 

2. Break your business processes down into step by step tasks.

Next time you are doing a job in your business take some extra time and write down the step by step tasks associated with that job. The desired outcome here is a check list which can be followed and ticked off as each task is completed. The aim of this is to get the knowledge out of your head and documented, making it possible for another team member to do the job.

 

3. Collect knowledge using cloud base applications.

Capture the process of completing these key tasks via screen capture software such as Snag It. Set up a knowledge manage system and store videos for your team to refer to when they need to complete each task. Over time you will build a library of knowledge that team members can access at any given time.

By putting these three steps into place you truly can pack that suitcase. Start planning for your holiday now. If you would like further information on this download our e-book.

Specialising in Xero bookkeeping, Notch Above is a Brisbane bookkeeper and BAS Agent located in Alderley that offers Xero setup, as well as training and ongoing support. Notch Above can take care of all the bookkeeping tasks you would rather not do, like bank reconciliations, supplier payments, payroll services, debtor control and BAS returns.

Like us now on Facebook.

Follow us now on Twitter.

Connect with me on LinkedIn.

Visit our Website.

The Xero Dashboard

/in /by

The Xero Dashboard displays all of your most important financial information – so you don’t need to trawl through all of your data to get a clear view of your business.

Stay on top of cashflow and see all your bank balances, invoices, bills and expense claims at a glance. Add new transactions with a click and see interactive graphs with money going in and out.

Having real-time financial data at your fingertips means you can respond quickly and make informed business decisions.

To learn more about the Xero Dashboard visit: xero.com/accounting-software/dashboard/

Small Business Marketing Pt2

/in /by

The top 10 must-have tips for email marketing

Part I of this guide focused on small business marketing on a budget and the tools to do this. There are many different ways of marketing to your customers, ranging from direct mail to telephone calls, online banners to radio ads, Facebook to Twitter. But businesses often see high returns from email marketing.

As Constant Contact says, that’s because people regularly check their email and spend a lot of time in front of it. Sending email is cheap, too, but how do you get your message across effectively?

  1. Build relationships with your readers
    Not all of your readers are the same. Some may be lifelong customers, while others will be new to your business, so segmenting your email lists is very important. Have a goal in mind when you send an email, whether it’s attracting new customers to your store, driving traffic to your website or simply raising awareness. That goal should dictate how you craft your message. Take your time to think this through, so your customers feel connected to you.
  2. Start small
    Don’t send your first email newsletter to your entire mailing list. Start small, with perhaps a few dozen or a few hundred recipients. Then watch the response. If it’s good, send it to more people. If it’s not, tweak and test out a new version.
  3. Make it easy to opt in and opt out
    Email marketing is permission based. That mean customers have indicated (through a sign-up form on a website or a number of other ways) that they want to receive emails from you. But they might change their mind. As important as it as to make it easy for people to receive your emails, you must also make it easy for them to opt out or unsubscribe. Be sure to follow their wishes, or risk being labeled a spammer.
  4. Personalise your emails
    If half your customers are middle-aged women then there’s no point sending them emails offering cheap football boots. Or is there? If their children play sports at school, they could be just the customers you’re looking for. This is why business information is so important. Never make assumptions. Use the data to find out what you need to know, then send the right offers to the right customers.
  5. Use good content to keep your readers engaged
    Think of the recipients of your emails as more than customers. Think of them as readers too. Give them a narrative, a story about the products you’re selling. Help them to engage with your products, to find a way to weave them into their own lives. Your emails should not just be used as a sales vehicle but also as an opportunity to foster relationships. Be sure to include helpful hints and best practices that will bring value to your readers. Keep your content interesting and fresh, and always relevant. You will build an engaged audience of loyal customers this way.
  6. Strike a balance with length
    It’s important to find the sweet spot in terms of the length of your emails. You need to figure out what’s going to be most effective for the majority of people on your list. Keep in mind that a lot of emails are read on mobile devices, so you’re working with less real estate. On the other hand, an email can be too short. If there isn’t sufficient content to grab your readers’ interest, they’ll move on to the next email. It’s all about testing out different options to find a balance that works for you and your readers.
  7. Get the tone right
    There’s a fine line between marketing emails that add value and are welcomed by the recipient, and ‘spam’ or junk mail which will be deleted immediately. Don’t go over the top with exclamation marks and wild claims. Try to use a friendly, authoritative but not arrogant tone. Your goal is to get the customer on your side and keep them there.
  8. Offer something of value
    There’s nothing wrong with simply listing your products and their prices. That’s useful information for people who are already looking to buy. But you can go further, to convert those who are undecided. Offer discounts for people ordering in response to your email. Two-for-one deals, discounts on multiple purchases, free shipping for orders over a certain value – there are plenty of ways to add value and get your customers to spend more.
  9. Track email responses
    With the right software, email marketing lets you track the response of your campaigns, by embedding unique links into each message. Some of the response metrics might include:

    • Who opened your email.
    • Which links in the email were clicked.
    • Who forwarded your email to others.
    • Who shared your email on social media.
    • Which emails led to sales, online reviews, event registrations and other destinations.

    This will provide insight into the type of information your audience is most interested in, and will give you a benchmark to improve upon every time you hit ‘Send’.

  10. Don’t spam!
    Sending out email ‘blasts’ of generic, over-the-top sales text is a waste of time – for you and for your customers. You’ll lose existing subscribers faster than you can sign up new ones. Effective email marketing takes time, thought, and consideration. You must be focused on building relationships.

Email communication is a good way to hone your marketing skills. Once you’ve mastered it, you can move on to other outlets, such as social media and mobile marketing. Although the platforms might be different, many of the skills and tactics required are the same.