2021 - Page 3 of 5 - Notch Above Bookkeeping

STP Phase 2 starts January 2022

August 2, 2021/in Payroll /by Notch Above

Learn what STP Phase 2 means for employers

Single Touch Payroll (STP) Phase 2 reporting starts 1 January 2022.

If you employ staff, you’ll need to be ready for this change.

If your business uses Xero, it will be compliant.

If not — or you know someone who is not — there’s time to start thinking about and planning your STP Phase 2 reporting now.

STP Phase 2 reporting means changes to the way employers report:

amounts paid to staff
income types
employment conditions.

The way you lodge and the due date of your STP reports don’t change.

Your payroll software should be updated by your software provider with steps provided for you to take. However if you use a manual system, we strongly recommend that you make time to check your settings in advance of the changeover deadline.

Check the ATO’s guidelines and contact the team at Notch Above Bookkeeping on 1300 015 130 to help you understand the changes and what they mean for your business.

Australian Accounting Awards Bookkeeping Firm of the Year Finalists 2021 and 2020.

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Entrepreneur working on a project at home

4 Start Up Tips for Budding Entrepreneurs

July 26, 2021/in Bookkeeping, Cash Flow /by Notch Above

Entrepreneurs cautioned to keep a lid on costs when starting a business

In the wake of COVID-19, what were once employees are reconsidering how they’ll make their living in a new world.

Cue the surge of budding entrepreneurs!

Starting your own business can feel like you’re in a pressure cooker with newfound worry about when the next dollar will land in your bank account.

However there are some solid and proven steps that owners of business start-ups can take from Day 1 to keep your finances in check and make what should be an exciting process less daunting.

1. Side gig safety net

Picking up a side job could help reduce financial pressure and add some structure to the week.

It’s not uncommon for entrepreneurs who go from full-time employment to no structure find it overwhelming and they end up going back to a job.

If you can find a part-time job and leave your ego at the door – willing to do anything from brewing coffee, washing dishes or doing backroom work – be grateful that you can be fully present in your part-time job and, as a result, be fully present in your business.

2. Hire specialists

Apportioning income in a separate account to hire a bookkeeper is a smart move.

Make sure that you source professional advice from mentors as well as experts in their fields. When you’re starting out, you don’t know what you don’t know, so it pays to ask as many questions early on. Having professional help ensures that you don’t miss something important, especially when it comes to regulation and hitting deadlines on time, not after the fact!

And make sure that you do your tax annually, rather than letting it pile up for several years!

Recordkeeping is much easier with digital technology. Barely anyone hoards paper receipts for expenses anymore. Working with a professional bookkeeper can tick this box from the start of your engagement and keep you organised from the get-go.

3. Keep personal and business expenditure separate

Whether you deal with a bookkeeper or an accountant (or both) this is a golden rule!

The first step is to open up a separate bank account for your business. Doing so not only helps make that mental shift from thinking of your business as a fun hobby or a side project to a serious business, but you’ll be much more confident selling your products or services once your tax and systems are sorted.

Leaving the back end of your business in disarray subconsciously affects how you present to customers.

Entrepreneurs that know the advantages of organising their business into specified accounts can have multiple accounts covering tax and legal costs, operating expenses, savings to invest back into the business and payroll.

4. Keep a lid on costs

Another best practice piece of advice to new business owners is to keep overhead costs low and to use as many free resources as possible.

It’s out there if you know where to look: free software and as many free templates as you can practically use.

Starting as lean as possible could be a game-changer in the long run. Whereas launching yourself into $20,000 to $30,000 of debt puts you under pressure straight away, rather than having an opportunity to just enjoy working, getting out there and finding new customers.

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Specialising in Xero bookkeeping, Notch Above is a remote service bookkeeper and BAS Agent 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. Contact us Australia-wide on 1300 015 130.

Your Financial Literacy

July 19, 2021/in Bookkeeping /by Notch Above

Accurate financial reporting

Why good financial reporting is essential and the consequences of missing the mark.

The importance of accurate, ethical financial reporting can’t be underestimated.

Business Australia recently reiterated this fact in their article Accurate Financial Reporting: 12 Must-Dos, highlighting why good financial reporting is critical to your business for a range of important responsibilities including preparing accounts, evaluating tax liabilities, decision making, planning and forecasting.

The many financial reports that must be prepared for any business provides owners with the information needed to establish sound business strategy, make management decisions and understand if that business is facing opportunities (or challenges).

The article outlines seven reasons why quality financial reporting is so important, the consequences of poor reporting, and then provides 12 best practice steps that business owners can follow either with their accountant or independently, depending on your level of confidence and proficiency.

Business Australia concludes that accurate financial reporting is key to understanding the true position of your business in order to make informed decisions.

Conversely, the dangers of inaccurate financial reporting are extensive, so it pays to get it right.

Closing the gate after the horse has bolted?

The good news is that it’s easy to work with your bookkeeper to tap into more regular reporting that delivers the data in real-time so you’re not retro-fixing your business performance.

Ask the team at Notch Above Bookkeeping about how you can do that at the start of a new financial year. Small business owners are invited to contact us — Australia-wide — on 1300 015 130 or read more at Understanding the numbers.

Employment Contract Tool

July 5, 2021/in Payroll /by Notch Above

Australian Government Employer Contract Tool

The Government has launched a new online tool for small business owners that takes the stress out of hiring their first staff member and reduces the risks of costly mistakes

Who can use it

This tool helps small business employers to make a basic employment contract that complies with workplace laws. Use it to create a contract for an employee under the national industrial relations system. You can use it for full-time, part-time and casual employees who are covered by an award.

In the tool you’ll find:

conditions that you must provide to your employee
optional clauses to help set expectations and protect your business.

To use this tool, you’ll need to pay your employee an hourly or weekly wage. We don’t provide for salaries in the tool due to their complex requirements.

Know your award

As you work through this contract tool, you’ll need to add details about your employee’s terms and conditions. We’ll help you to find these details in each section, but you’ll need to know the:

award
employee’s classification level in the award.

If you’re not sure what the award is, use the Fair Work Ombudsman’s Find my award tool.

Please note that this tool is unsuitable for some types of workers. Visit https://employ.business.gov.au/ for more information or to start building a contract.

Contact Notch Above’s Bookkeeping specialists Australia-wide on 1300 015 130 for specific advice about your payroll.

Source: business.gov.au

Superannuation guarantee increase on 1 July

June 28, 2021/in Payroll /by Notch Above

Employers should be managing the super guarantee (SG) increase which comes into effect 1 July

An SG base rate rise is set from 1 July which will increase from 9.5% to 10%, followed by incremental half percentage point increases each year to 12% on 1 July 2025.

Businesses owners should establish an approach strategy to the increase now because missing deadlines is likely to attract ATO attention. And it should be done with transparency that clearly communicates how employees’ payslips will be impacted.

Employers should keep in mind that this is not a one-off increase.

While the legislation is for the employer to contribute the extra half per cent without impacting take-home wages, this may not be the case across all workplaces. Check with us first for any clarification required about your business or sector.

Employee contributions are required to be paid on at least a quarterly basis. Employers are urged to brace for the SG increase on 1 July by allowing plenty of time for payroll changes via business activities that sustain cash flow.

Do note that software providers will be making the adjustment to their systems but, depending on your setup, if you have manually entered a rate you may need to adjust this.

Click here to review the ATO’s super rates and thresholds or contact Notch Above’s Bookkeeping specialists Australia-wide on 1300 015 130 for specific advice about your payroll.

Australian Accounting Awards Bookkeeping Firm of the Year Finalists 2021 and 2020.

Single Touch Payroll changes

June 21, 2021/in Payroll /by Notch Above

What small businesses need to know about changes to STP this EOFY

As a small business owner, you’ve likely heard about Single Touch Payroll (STP) by now.

Many employers will already be using STP. However, with the ATO rolling the initiative out in stages, there are still some that have been offered exemptions. That is, until now.

From 1 July this year, most small businesses will need to be STP compliant.

This includes small employers with closely held payees, as well as some micro-businesses and seasonal employers. The changes could mean that you have to opt into STP for the first time or start filing employees who aren’t already being reported with the ATO. If you’re feeling unsure about whether these changes will affect your business, we’ve compiled all the information you need to help determine your next steps.

Although EOFY is just around the corner, there’s still time to get prepared. With the help of your bookkeeper and Xero, together, we can make the transition to STP as smooth as possible.

What does ‘closely held’ mean?

According to the ATO a closely held payee (otherwise known as a closely held employee) is an individual directly related to the entity from which they receive payments. For example, this would include relatives in a family business, or beneficiaries of a trust fund.

Depending on your working arrangements, some businesses process irregular or infrequent pay runs for family members on their books. That’s why, up until 1 July 2021, small employers (with 19 or fewer payees) have been exempt from STP reporting of closely held payees.

What’s changing with how my business remunerates closely held payees?

By the end of FY21, employers with fewer than 19 employees will have to report closely held salaries or wages through STP. Whether it’s your sister, great-uncle, cousin or in-law, every family member on your books, counts. There are three payment reporting requirements to be aware of:

Report and process payroll through STP on or before payday
Report the accurate payroll amount with STP once per quarter, on or before the BAS due date
Report a reasonable estimate with STP once per quarter, on or before the BAS due date

Out of the three reporting options, there’s no one-size-fits-all approach – it comes down to what works best for your business’ needs.

Are there any other changes to know about?

As well as small employers with closely held payees, some micro and seasonal employers will now have to report on or before the payment date – not quarterly – unless they receive a concession. This includes businesses with four or fewer employees, including the following industries:

Agriculture, fishing and forestry
Not-for-profit clubs and associations
Seasonal and intermittent employers

Microbusinesses in each category may still be eligible for STP reporting concessions, such as quarterly or exceptional circumstances exemptions. Ask your advisor about how you can apply for a concession, and head over to the ATO website for more details.

The STP changes for this EOFY are one of the final hurdles in transitioning most Australian small businesses to a more streamlined reporting system. Although the initiative is still evolving, with the support of Xero and your trusted bookkeeper, you’ll be able to tackle any new changes head-on.

Notch Above Bookkeeping has been providing business owners with accurate and timely bookkeeping services that makes them more efficient and gives them peace of mind for 15 years. Let us help take your business to the next level of bookkeeping digitally, via the cloud! Call us on 1300 015 130.

Top Xero time saving tips

May 31, 2021/in Xero Tips /by Notch Above

Top Xero timesavers to help you run your business more efficiently

If you are short on time, take a peek at a few Xero time-saving tips.

Work smarter, not harder

Global search

Global search is available to all Xero users from most screens in Xero. Use it as a shortcut to open other screens, or to ‘add new’ transactions.

Open global search from the magnifying glass in the navigation menu, or press forward slash (/) on your keyboard, and search for the screen you need.

Another option is to use shortcut keys when searching. You can see a list of these on-screen now. In most cases, the shortcut keys are the first initial of the screen name, such as ‘B’ for Bills or ‘R’ for Reports.

Bank feeds

Arguably the best time-saving feature in Xero, and one of the favourites amongst many of our users, bank feeds! Xero connects with thousands of banks across the globe to securely import bank statement lines into your Xero organisation on a daily basis.

If you’re using online banking already then connecting a bank feed is a no brainer. If you’re yet to add your bank account in Xero, you’ll be prompted to connect a feed when setting up. If your bank account is already set up, you can click ‘Get bank feeds’ at any time to connect a feed.

Once connected, your bank statement lines will automatically appear in Xero, ready to reconcile. This saves you from manually entering statement lines, making bank reconciliation much easier.

User roles

One saying we love is “work smarter, not harder”, and that couldn’t be truer when it comes to Xero user roles. Why should you do all the work when you have staff that can help?

Security is an important part of all businesses and it’s key when more and more businesses are running online. That’s why it’s so important to give your staff the correct level of access.

There are different user levels with great customisation in Xero, which means you can invite your staff AND accountant into your organisation. Not only does this come with your subscription, but it also means that staff can take on some of the workload. This frees you up to concentrate on some of the more important areas of the business – or maybe give you time back to spend with family.

Register for Xero Education Month each year to learn more time-saving tips and more

Join Xero each March to gain the skills and knowledge you need to build your business with Xero.

Notch Above Bookkeeping are Platinum Certified Xero bookkeepers and BAS Agents. We help small businesses across Australia to prepare their BAS returns and streamline their bookkeeping processes, payroll and accounting records using cloud technology. Call us to find out how on 1300 015 130 today.

Source: Xero

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2020 Notch Above Bookkeeping

Is your business analysing the rise in data to better understand customers?

May 24, 2021/in Coronavirus COVID-19 /by Notch Above

The COVID crisis has prompted businesses to become more customer-centric

Those that don’t go down this road may struggle to compete.

Is your company collecting data that helps you understand your customers better and putting it to use when you engage with them?

If the answer is ‘no’, you’re behind the eight ball and it may be to your commercial detriment, perhaps catastrophically so, in the months and years to come.

That’s because the worst pandemic in a century didn’t just up-end economies and societies, it also transformed the way consumers acquire goods and services and interact with organisations.

Last year’s cyber surge

Australia, for example, saw an unprecedented surge in e-commerce activity as stuck-at-home shoppers let their fingers do the walking during April and May’s nationwide shutdowns and through the remainder of that strange, socially distant year.

NAB’s Online Retail Sales Index: January 2021 revealed Australians spent $45.61 billion on online retail between January 2020 and January 2021; a whopping 49.1 per cent increase on the previous year’s figures. That number, which represents around 12.9 per cent of the total retail trade estimate, is expected to continue growing, as shoppers eschew bricks and mortar experiences for the convenience and safety of digital browsing.

Australians aren’t just spending their hard-earned online. Increasingly, they’re using digital channels to research goods and services and interact with organisations before, during and after the purchase process.

For many organisations, that’s necessitated the adoption of additional digital channels – think web chat, SMS and apps – to allow customers to connect with them, whenever and wherever it suits.

Organising with the data deluge

The upshot of this dash to digital? A deluge of customer data pouring into organisations via multiple channels.

In many enterprises, that data is stored in a series of silos where it can be accessed and analysed, to obtain an understanding of a customer’s dealings with the company, via the channel in question.

Savvy businesses, however, are doing things differently. They’re using new generation customer data platforms (CDPs) to aggregate customer data from across all channels and sources – web, mobile, server and cloud. And they’re analysing it to create a complete picture of individual customers’ motivations, preferences and behaviour patterns.

So much so that Twilio Segment’s Customer Data Platform was processing over a trillion API calls a month by the end of 2020 – a 100 per cent increase on the previous year’s figure of 500 billion.

Keeping the customer satisfied

So, what are those ahead-of-the-curve businesses doing with the insights they’re amassing about their customers?

For most, the overarching goal is to create seamless, compelling customer experiences in real-time, in both the virtual and real-life realms. That’s because, in a crowded market, customer experience can be the only significant point of difference between an organisation and its competitors – and enough of a reason for one-time buyers to become loyal, repeat customers.

Hence, we’re seeing businesses use their aggregated data to inform digital advertising campaigns via Facebook, Pixel and Google ads, email marketing mailshots via Mailchimp and Braze, and interactions with customers via platforms like Salesforce, HubSpot and Zendesk.

Laggards lose out

And businesses that don’t take this data-driven approach to interacting with customers and delivering experiences that meet and exceed their expectations? Increasingly, they’ll find themselves left behind; struggling to remain relevant and compelling, at a time when cash-strapped and cost-conscious consumers have every reason not to spend.

Investing in a customer data platform is the starting point for every enterprise that’s serious about doing more with digital. For Australian businesses yet to take this high-tech step, the stakes are high and the clock is ticking.

Get onto cloud bookkeeping in your business

Xero is Australia’s most popular cloud-based bookkeeping and accounting software. Transform your business with real-time financial reports by making the switch to Xero.

Notch Above Bookkeeping are Platinum Certified Xero bookkeepers and BAS Agents. We help small businesses across Australia to prepare their BAS returns and streamline their bookkeeping processes, payroll and accounting records using cloud technology. Call us to find out how on 1300 015 130 today.

Article first published by Dynamic Business on 4 May 2021 at https://dynamicbusiness.com.au/topics/technology/business-customer-data-analysing-advice-tips-opinion.html

Digital bookkeeping for business

May 19, 2021/in Bookkeeping /by Notch Above

The benefits of a digital bookkeeping expert in your business

Bookkeeping using traditional mediums such as hard copy invoicing, spreadsheets or desktop software can create high costs in business.

They’re also notorious time thieves!

However, cloud bookkeeping lets you liaise with your customers accurately, cost-effectively and measurably. Plus, not to mention that you can easily pay your employees on time and make sure you’re keeping on top of your employer and superannuation obligations.

Small to medium-sized businesses owners typically spend too much time keeping the books as it is hard to get experienced digital bookkeeping professionals with apt skills to work within the business. Therefore, outsourcing digital bookkeeping services to an experienced cloud bookkeeping specialist is becoming more widespread among business owners. Outsourcing is easy and streamlined without the need to hire skilled bookkeepers on the payroll.

We’re super excited to see how last week’s Budget measures play out. Particularly the announced investment incentives for the digital economy and the expansion of small business digital support services.

Digital and cloud solutions are very much on the government’s agenda. Partnering with a digital bookkeeping provider, like Notch Above Bookkeeping, helps you achieve your goals, enhances your business reputation, and lets you attract and keep more customers. In coming weeks we’ll explain the top benefits of having a digital bookkeeping expert working for your business.

Here’s the bottom line

If your team lacks the skills, expertise or time, then why not partner with Notch Above Bookkeeping? Being a small business, we understand the value of your business goals. Our team of experienced bookkeeping specialists have years of industry exposure across a number of niches.

We can seamlessly transition your bookkeeping to the cloud, identify the top-performing drivers of your business, improve your business efficiency, plan a strategy to put accurate financials in front of you every month or quarter, and help you better organise your payroll and customers no matter where your business is located within Australia.

Want help with the creation of a customised cloud bookkeeping solution? Reach out to our cloud bookkeeping specialists at Notch Above Bookkeeping to get started.

Simply fill out the form here, and a member of our team will be in touch »