cash flow

Know your boosts inside and out

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If you’ve received a cash flow boost, you may be wondering if the amounts you’ve received affect your income or deductions this tax time.

Here are the four essentials you need to know when lodging your tax return:

  1. You don’t pay tax on cash flow boost amounts as they’re non-assessable non-exempt income. You may still need to report the amounts in your tax return for other purposes. Read the relevant tax return instructions for your business structure for more information.
  2. You’re still entitled to a deduction for the payments made to your workers provided you have complied with the pay as you go (PAYG) withholding and reporting obligations for that payment.
  3. If you pass the cash flow boost on to others, there may be tax consequences for the recipient.
  4. If you claim the research and development tax offset, your claim isn’t affected by any cash flow boost you receive.

Remember, a registered tax agent can help you with your tax; please check with your accountant for further information on the tax consequences of the cash flow boost.

From builders to pharmacies, medical clinics to dental practices, Notch Above Bookkeeping has your business BAS covered. If you have questions in relation to eligibility and reporting requirements please call our team on 1300 015 130 for specific advice regarding your business.

Source: Know your boosts inside and out. (2020). Retrieved from https://www.ato.gov.au/Newsroom/smallbusiness/Employers/Know-your-boosts-inside-and-out/

Extension of the JobKeeper payment2020. Notch Above Bookkeeping

Who in your business is eligible for JobKeeper?

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Did you know that if your business is enrolled for the JobKeeper Payment, you may be able to claim payments for an eligible business participant?

An eligible business participant is an individual who is not an employee of your business, but who is actively engaged in its operation.

For example, they might manage the sale of your business’s goods or exercise control over your business strategy.

To be eligible for JobKeeper payments, the business participant must be an individual who is:

  • a sole trader (and is not bankrupt)
  • a director of a company
  • a shareholder in a company
  • a partner of a partnership (but not through an interposed entity, for example an individual trustee of a trust that is a partner in a partnership)
  • an adult beneficiary of a trust (who is not the trustee).

The individual must also meet other criteria, including having been actively engaged in the business at 1 March 2020.

You can only nominate one eligible business participant, even if several people meet the criteria.

Unlike employees, the key date for assessing business participants’ eligibility is still 1 March 2020.

As of 20 July 2020, approved providers of child care services can’t claim JobKeeper payments for business participants.

The individual must be engaged in the fortnight that the JobKeeper payment is claimed. For instance, if your eligible business participant is on leave, you cannot claim JobKeeper payments for JobKeeper fortnights that fall in that time period.

From builders to pharmacies, medical clinics to dental practices, Notch Above Bookkeeping has your business payroll covered. If you have questions in relation to eligibility and reporting requirements for the JobKeeper Payment scheme call our team on 1300 015 130 for specific advice regarding your business.

Source: Who in your business is eligible for JobKeeper?. (2020). Retrieved from https://www.ato.gov.au/Newsroom/smallbusiness/General/Who-in-your-business-is-eligible-for-JobKeeper-/

insurance broker in meeting

Insurance broker’s bookkeeping now a breeze

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Powered by Notch Above’s Time Saver bookkeeping package

Client-focused insurance professionals who are busy servicing clients have precious other time to focus on their bookkeeping.

According to our client who is an insurance broker, managing her own bookkeeping before handing it over to Notch Above was a very laborious process!

“I would enter my income and expense items onto a manual spreadsheet, which was time-consuming and not always 100 per cent accurate,” she said.

“Payroll was the same each week so paying my two staff members was relatively easy, but when it came to SuperStream and Single Touch Payroll I wasn’t fully across the requirements of how we needed to comply.”

This opened up to her business to potential Fair Work claims and Tax Office fines for non-compliance.

In frustration, she reached out to Notch Above Bookkeeping Consultant Annie Caulfield who assessed her needs and recommended our Time Saver bookkeeping package.

The first thing we did was get Xero Payroll up and running to take care of the compliance requirements for the business. Not only that, but it suddenly became quick and easy to supply each employee with a compliant payslip every fortnight.

“Holiday calculations are now accurate and always up to date so each employee is aware of how much leave they are entitled to,” said Annie.

“Each month income statements are emailed directly to us so we can code up the income monthly when it hits the bank account. This income does need splitting as costs are deducted directly from this with different GST treatments, so it’s essential to get it right so that the GST claim is maximised.”

Enhancements to capture bills and receipts

We also set up Hubdoc for our insurance client. Hubdoc is like an electronic inbox which sits behind Xero where we as bookkeepers can get the information on how to code her expenses correctly, ensuring the maximum claims are made.

Now, as our client spends money or receives a bill to pay, she can either photograph it with the Hubdoc app on her smartphone or email the bill directly to Hubdoc. (Watch more about this feature on our YouTube Channel here »)

This insurance broker now has peace of mind knowing that Notch Above’s bookkeeping processes produce accurate monthly data which is available to her whenever she needs it. It not only helps her in her business decision-making but it also makes for easy end-of-financial-year processing.

To find out more about how Notch Above Bookkeeping can help your professional business, call us on 1300 015 130 or peruse our bookkeeping service packages at notchabove.com.au/services/packages/.

Copyright 2020. Notch Above Bookkeeping Remote Xero Business Bookkeeping @NotchAboveBAS

Xero File Review Service

Xero File Review Service

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Streamline your business with Notch Above

Streamlining is about improving business processes to create efficiency – including operations, automation, planning and strategy.

As a business owner, it’s easy to get caught up in the day-to-day, especially when you’ve got a thousand items on your to-do list!

Streamlining your business, starting with your accounting processes, is a great way to help you save time and more effectively manage your workload.

In a nutshell, streamlining is about improving your business processes to ensure you’re operating as efficiently as possible. This is especially important for businesses with limited resources, where inefficiencies can have a significant impact.

The good news is that, with the right tools and methods, you can streamline your business processes to save time, cut costs and give you the space required to focus on growth.

So, what’s the first step to streamlining your business?

Get started with Notch Above Bookkeeping’s Xero File Review where we deep dive into your Xero file via a one on one online session:

This process will give you the peace of mind that your business accounting data is accurate and therefore providing information that enables you to make informed financial decisions to sustain and push your business forward despite COVID-19.

Using technology to automate laborious or repetitive tasks is one of the biggest time-savers for businesses today. Automation can be used to streamline payments and invoicing to stock management, customer service, accounting and many other functions. In the digital age, businesses need to optimise their workflows to maintain a competitive edge, and automation enables you to do just that.

Likewise, regularly reviewing your people and processes is key to being agile and refining your approach to stay efficient as you grow. This includes monitoring everything from staff numbers and job roles to meetings, communication strategies and operational protocols.

Call the team at Notch Above Bookkeeping on 1300 015 130 to book your session.

1300015130

New 1300 number for Notch Above

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Notch’s new phone number

Still keeping your business a notch above the rest with even easier phone access.

We’re pleased to be able to advise all clients (and potential clients) of Notch Above Bookkeeping of our change in business phone number.

Effective immediately, our new phone number is 1300 015 130.

Kindly delete the old one from your records and replace it with this new one for all your Xero business bookkeeping needs.

It is our privilege to be able to provide cloud-based Xero bookkeeping services and support to small business owners. Taking care of our clients’ needs is always our number one priority so please feel free to contact our team anytime on our new number for assistance on our range of hassle-free bookkeeping packages.

All the Notch Above team looks forward to being of service to you next time we talk.