Independent LawnMowing Contractors Of Australia Forum
Page 10 of 17 FirstFirst 1234567891011121314151617 LastLast
Results 136 to 150 of 250

Thread: David's bookkeeping corner.

  1. #136
    Very Helpful Member
    Join Date
    Jul 2006
    Location
    melb.sth. east
    Posts
    4,908

    Default Re: David's bookkeeping corner.

    sorry to disappoint you david but it's only 11 days not 7 weeks
    Anything Ian says may or may not be garbage, it may also be his own opinion or it may not be his opinion at all, it may just be something he felt like stating anyone following his advice does so at their own risk and may be doing something Ian would actually advise against.
    And if you don't like what Ian has to say use the ignore function if you don't know how ask i will gladly tell you

  2. #137
    Senior Member glassngrass's Avatar
    Join Date
    Apr 2007
    Location
    Whittlesea, Vic
    Posts
    1,419

    Default Re: David's bookkeeping corner.

    Quote Originally Posted by ian View Post
    sorry to disappoint you david but it's only 11 days not 7 weeks
    I meant to say 7 seven working days!

    Your accountant is best qualified to advise you on the best use of your business structure (sole trader, partnership, company or trust).

    I recommend to my clients that they take their up-to-date figure foir year to end of May to their accountant= and request specific tax planning advice.
    This has potential to save thousands.

    View building a relationship with your accountant as high priority - they can be a real partner for your success.
    David
    Mr Sparkle Car Spa

  3. #138
    Senior Member glassngrass's Avatar
    Join Date
    Apr 2007
    Location
    Whittlesea, Vic
    Posts
    1,419

    Default 10 tips for a better bottom line in 2010

    http://www.genesysadvisers.com.au/Ma...306_6_EOFY.pdf

    The end of the 2009/10 financial year will be here before you know it, so now’s the time to
    examine your situation and ensure your finances are as tax effective as possible.

    Here are 10 tips that can potentially boost your financial bottom line.
    • 1 Sacrifice your salary to super
      If your marginal tax rate is more than 15 per cent, salary sacrifice can be a great way to boost your superannuation and pay less tax.
      By putting pre-tax salary into super rather than having it taxed at your marginal rate you may save tax.
    • 2 Offset capital gains
      Tax is normally payable on any capital gains. To lessen this obligation it may be possible to realise investment losses on nonperforming assets through 2009/10. Capital losses from previous years can also be carried forward.
    • 3 Move assets into a lower tax rate ownership
      Consider changing the ownership of assets from a higher to a lower income tax bracket. For example, if a husband works part time and his wife earns a higher wage from full-time employment, it may be tax-effective for assets to be in the husband’s name.
      However, be aware that putting this strategy into action can trigger capital gains tax and other transaction costs.
    • 4 Contribute to your super
      Whether you make personal tax deductible (concessional) or posttax (non-concessional) contributions, putting money into super can be very tax effective. This is because earnings on super assets are taxed at a concessional rate (up to 15 per cent), compared with earnings on your personal investments, which are taxed at your marginal tax rate (up to 46.5 per cent).
      Personal tax deductible (concessional) contributions. If you are under 50, you can make contributions of up to $25,000 in the 2009/10 financial year. If you are over 50, you have until 2011/12 to use a higher annual cap of $50,000 each year. Concessional contributions include super guarantee (SG) contributions made by your employer, so be careful to ensure you don’t go above the caps.
      Post-tax (non-concessional) contributions
      A cap of $150,000 each financial year applies to these contributions. This amount can be averaged over a three year period to allow for larger contributions to a maximum of $450,000 if you are under 65.
      Penalty rates of tax may apply where you make contributions in excess of these caps.
    • 5 Contribute to your spouse’s super
      You can claim an 18 per cent tax offset on super contributions of
      up to $3,000 made on behalf of a low-income or non-working spouse. To be eligible for the maximum $540 tax offset, you spouse’s income must not be more than $10,800 per annum, while
      a reduced offset is available if your spouse earns less than $13,800.
    • 6 Qualify for a government co-contribution
      If your total income is less than $61,920 in 2009/10, you may be eligible for a super co-contribution from the Federal Government.
      For each dollar in personal super contributions, the government will contribute up to $1.00, up to a maximum co-contribution of $1,000.
    • 7 Claim the net medical expenses tax offset
      If your out-of-pocket medical expenses exceeded $1,500 for the 2009/10 financial year, you may be able to claim a tax offset of 20 per cent of the excess over $1,500. There is no upper limit on the amount you can claim.
    • 8 Protect your income
      Cover for one of your greatest assets – your ability to earn an income – can be an important part of securing your financial future. Income protection insurance replaces up to 75 per cent of your salary if you are unable to work due to sickness or an accident. The insurance premium is tax deductible.
    • 9 Take out life insurance within super
      Normally personal life insurance premiums are not tax deductible.
      However, if this insurance is held within your super fund, the fund is able to claim a tax deduction for the premium, effectively providing tax benefits.
    • 10 Take advantage of imputation credits
      When Australian companies pay dividends to their shareholders, they have often already paid company tax on the profits that are being distributed. Shareholders can therefore claim an imputation credit on the dividend for the amount of tax paid by the company.


    These recent posts are gleanings from research via internet - I am a bookkeeper, not a financial planner, accountant or tax agent. Usual disclaimers apply - seek specific advice for your particular circumstances.
    David
    Mr Sparkle Car Spa

  4. #139
    Senior Member glassngrass's Avatar
    Join Date
    Apr 2007
    Location
    Whittlesea, Vic
    Posts
    1,419

    Default Re: David's bookkeeping corner.

    Quote Originally Posted by 4 Gardens View Post
    With less than 2 weeks until EOFY what are you top 5 last minute tips?
    If you are planning to purchase new equipment shortly, consider doing so before end June - this will enable you to claim the cost (or depreciated portion) in THIS financial year.

    eg. A new 216 mower might set you back $1,500 now, but you could get $450 back in the way of reduced tax bill (more if you are in a higher tax bracket)

    If you were to upgrade your ride on or vehicle you will likely find some "End of Financial Year" sales nearby - now could be a really good time to buy.
    David
    Mr Sparkle Car Spa

  5. #140
    Senior Member glassngrass's Avatar
    Join Date
    Apr 2007
    Location
    Whittlesea, Vic
    Posts
    1,419

    Default Re: What's required on an invoice?

    Quote Originally Posted by glassngrass View Post
    By law, your Tax Invoices must include the following information:-
    • Date
    • The words “Tax Invoice”
    • The name of the business and ABN (does not apply to expenses less than $75 including GST).
    • Description and details of the item or service
    • GST amount
    • Total amount payable

    As a courtesy invoice should include
    • Name of the customer

    If over $1,000 then Tax Invoice must also include
    • Name and ABN of customer

    Best practice - always include
    • Due Date for payment
    • The terms for payment
    • Your bank details
    Many use the pre-printed invoice books you get from newsagents, Safeway or K-mart. Others the template provided with MYOB or QuickBooks. These usually have the header "TAX INVOICE".

    It is an offense to mislead customers into thinking you are registered for GST if you are not.
    If you are not registered for GST and are using these pre-printed books, be sure to cross out the "TAX" from the header "TAX INVOICE" and write "nil" in the GST amount.
    If using MYOB or QuickBooks, the same can be done by customising your invoice templates.
    David
    Mr Sparkle Car Spa

  6. #141
    Very Helpful Member
    Join Date
    Jul 2006
    Location
    melb.sth. east
    Posts
    4,908

    Default Re: David's bookkeeping corner.

    thought i would pass this on it's a copy from a SCAMwatch email

    With the end of the financial year upon us, small businesses across Australia are busy tidying up their financial affairs. However, this time is not only busy for business, but for scammers as well.

    Scams targeting business come disguised in various forms: from billing for advertising that was never requested to dubious office supplies that were never ordered. More recently, overpayment scams and dodgy investment opportunities have been added to the mix.

    One scam that causes many headaches involves advertising or online directories. If your business receives an invoice for advertising in a telephone directory, trade journal or online directory, SCAMwatch urges you to check it carefully before you provide any details or make any payments. Are you really only being asked to update your details? Is the service really free? Do you want to pay to advertise in that directory?

    It’s not uncommon for scammers to use a name or logo similar to a genuine and reputable directory, so don’t be fooled.

    Tax time is busy. Take steps to protect your business - and don’t let a scammer take a slice of your profits.
    Protect yourself

    * The best defence is to protect your business. Limit who has authority to buy or order anything; keep written records of all orders and purchases; and only deal with people you know and trust.
    * If you are unsure whether you have received a legitimate invoice or request, contact the organisation. Don’t rely on contact details provided to you in an email - obtain the details through an internet search, telephone directory or official letters/statements from organisations like banks.
    * Remember that government agencies, banks and financial institutions will never send emails requesting verification of personal details for any reason, including tax returns.

    Report

    You can report a scam to the ACCC via the report a scam page on SCAMwatch or by calling 1300 795 995.

    i remember a few years ago getting a letter which appeared to be asking me to confirm my details on reading the small print on the back i would actually have been signing a contract for over $1200 per year for 2 years on this contact the amount was written [ie: twelve hundred dollars ] not given in numbers so it was less likely to be spotted so keep your eyes open
    Anything Ian says may or may not be garbage, it may also be his own opinion or it may not be his opinion at all, it may just be something he felt like stating anyone following his advice does so at their own risk and may be doing something Ian would actually advise against.
    And if you don't like what Ian has to say use the ignore function if you don't know how ask i will gladly tell you

  7. #142
    Senior Member glassngrass's Avatar
    Join Date
    Apr 2007
    Location
    Whittlesea, Vic
    Posts
    1,419

    Default Changes to GST/BAS for 2010

    GST & BAS

    • the important timing change that has occurred for people on the accruals method

    Due to Tavco v FCT the tax office have brought out an impact statement that can result in invoices which MYOB or any other accounting system would presume has to be in a quarter not being either assessable or claimable .. this is due to the date of receipt overriding the date on the invoice

    For example if you are on the accruals method and I send you my 30th June invoice by mail . The date you receive the invoice say 4th July is the first date you can claim the GST if you are on an accrual basis
    see the Decision impact statement re this case

    For the majority this will not be a significant issue but should be looked at and the exposure discussed with any client who is on an accrual basis and a method of reviewing any impact be implemented to avoid incorrect claims and penalties being imposed.

    One Bookkeeper reported that he had had incidences of the tax office chasing him for the receipt date and posting date with his builders.

    Likely for most clients the exposure will be minimal but all will need a file note and a procedure to be put in place until either
    The ruling is overturned as impractical
    or
    QuickBooks and MYOB have another field for all documents being the date sent/date received

    Similar alterations have occurred for people on a cash basis but these raise no real operational issue
    ie you have paid when you sent the chq , signed the credit voucher, made the Bpay

    • Valid GST invoices

    The new rules for a valid tax invoice gives us some relief from inadvertent errors

    The new rules result in the ability for a valid invoice to consist of more than one document. It can consist of two or three documents

    For example if the quote had the suppliers ABN but the final invoice did not you can place the two documents together to create a valid “invoice” . You must have all the requisite information to document that a valid invoice has been supplied

    Also the need to say tax invoice is no longer a pre-requisite .
    David
    Mr Sparkle Car Spa

  8. #143
    Senior Member glassngrass's Avatar
    Join Date
    Apr 2007
    Location
    Whittlesea, Vic
    Posts
    1,419

    Default Tax office ruling threatens thousands of small businesses

    3/06/2010 12:08:00 PM, Ross Greenwood

    If you're in business today ... right now in fact ... stop, and think about the structure of your business. Your whole livelihood and wealth could depend on it.

    The truth is that a new final tax ruling from the Tax Office has the potential impact of wiping out thousands, perhaps tens of thousands of small business operators ... in the process sending many of them broke.

    The final tax ruling retrospectively destroys the most common form of corporate structure.

    I'll try to explain it simply.

    A trust, by its nature, is designed to distribute all of its income each year to its beneficiaries. The benefit of a trust (unlike a company) is that it can distribute varying amounts each year depending on circumstance. The beneficiaries of a trust are commonly partners in a business (husband and wife, say) and commonly they will also have a family company as a separate beneficiary of the trust (known as a corporate beneficiary).

    The reason for the corporate beneficiary is that any income above the individual beneficiaries' needs is directed to the company, and taxed at the corporate rate of 30%. If you think about it, this produces an end result that is not far different from a company earning the money and paying wages, but the advantage of the trust is that it can easily distribute differing amounts each year.

    The latest tax ruling - and do note, it's final, not a draft ruling - claims that payments made to a corporate beneficiary are "unpaid present entitlements" which will be treated as a deemed dividend. The effect is that the payments will be taxed at the top personal tax rate (47%) rather than the corporate rate of 30%.

    Robert Jeremenko, the senior tax counsel at the Taxation Institute says: “Some small businesses may go to the wall as a result – especially as some aspects of the ruling are retrospective.

    “This is inequitable given that individuals and businesses set up these structures in a manner consistent with the long-standing interpretation of the law.”

    Restructuring businesses to take into account the new ruling is not so difficult. What will be harder - perhaps impossible for some - is the retrospective tax that the ATO will not come chasing. In effect it will want the different between the corporate and top personal rate of tax (app 14% tax) for any money paid through to a corporate beneficiary in the past. In many cases this will no doubt run into hundreds of thousands of dollars.

    As Jeremenko notes, it is the retrospectivity of this that will be most damaging for many small businesses, consultants and professional. And though the ATO is the sole determinant of the ruling, it would appear that the small business minister Craig Emerson and his finance colleagues Wayne Swan and Lindsay Tanner will need to act quickly to avert a potential disaster.
    David
    Mr Sparkle Car Spa

  9. #144
    Senior Member glassngrass's Avatar
    Join Date
    Apr 2007
    Location
    Whittlesea, Vic
    Posts
    1,419

    Default Re: David's bookkeeping corner.

    A member PM's me -
    Hi

    i had read a few posts about your ways of handling customers and terms and conditions.

    I am in QLD and have only been working full time for a few months and wondering if possible if you could forward me a nice terms and conditions.

    i have a real estate that is being useless about paying its accounts and stupidly did not terms and conditions to this.

    I have meet a few people in my travels now who say this Real estate is bad at paying on time and now I have to start playing hard ball as they do not answer my nice questions and phone calls

    Any help or advise would be very grateful.
    Cheers
    Getting paid is always a valid concern, and a key to your success.

    You're right - slow paying customers are are pain and a drain on your business, and customers that don't pay are not customers at all, but a liability to dump.
    Some say 'but I can't afford to lose this customer'.
    I ask 'can you afford to keep them?'

    That said, there are a few things you can do to improve collections from commercial clients, most of which have been expressed in various posts on INDI forum.

    1. agreed account terms and conditions - contract your commercial clients to an agreed payment time-frame. I suggest 14 days - some may insist on monthly payments at end of following month. Earlier is of course better, but contracted terms for end of next month at least provide some certainty. With a contract in place, late payments become breach of contract rather than small claims you need to prove.
    Invoice each and every job separately. Then if there is a query re: a job, this shouldn't prevent payment for other jobs.

    2. Include penalties for late payment in your terms - eg. $20 per month per overdue invoice
    If they refuse, this may well indicate their intent to remain slow payers - decide if you want to keep them.

    3. Increase your rates - but offer a discount for payment within terms. This incentive rather than a penalty may have desired effect - or you may get paid more for your patience.
    Your letter/email explaining your penalty or discount solution can be general and not directed to them specifically - "due to a number of clients allowing their accounts to become overdue and the stress this is putting on our own cash-flow, we need to address this with our commercial clients..."

    4. email/write the estate agent's account dept - be emotive - payments for your invoices don't go into the coffers of a large organization - but this is your livelihood.
    When you don't get paid, your wide and kids go without...

    5. with ALL your clients - keep on top of accounts receivables. Don't wait even one week before sending an overdue reminder notice. Continue to send them weekly - one for each and every account due.
    Bombard them with the consequences of their tardy payment system. The accounts person may well conclude it is easier to pay than stall.

    6. suspend services. Your second reminder should advise their account is on hold and services are suspended until payment is made. It should also advise that as they haven't responded to your first reminder, you are prepared to use legal action to recover amounts owed. You should never be apologetic about being insistent on getting paid for the work that they asked you to do.

    7. Listen to others and your 'gut'. Forewarned is forearmed. When you have doubts about a business, place them on a shortened collection cycle - weekly - insist on account terms, perhaps also get part payment in advance if you are to incur expenses such as plants.

    8. Your terms can stipulate method of payment - bank transfer. Don't accept cheques and you'll never hear 'cheque is in the mail', or 'our cheque run is at the end of the month'

    9. Resolve that ALL your commercial clients have account terms.... or cash up front first!

    10. Your terms should include items such as :

    Payment in full is required within seven (7) days of invoice. - or whatever your terms is
    Accounts referred to a Collection Agency or a Solicitor will have legal costs and commission added to
    the amount due. - this can help prioritize you account over others
    Where more than one party is liable for payment of this account, they will be liable jointly and severally. - great for partnership clients
    Perhaps if a company - a Director's Guarantee. This means you can pursue the director for the debt of the company.
    If you supply plants and landscaping, you might include also - all materials supplied and used remain the property of [me] until this account is paid in full, and [client] covenants to allow access for retrieval

    11. As a gardener I only been stung perhaps 4 times in 6 years for total under $200. As a bookkeeper I been stung 4 times for as much as $5,000 in 12 months. Here is the account terms I now use :
    http://dl.dropbox.com/u/2050259/Cred...n-7%20days.pdf

    I've had zero problems since.
    David
    Mr Sparkle Car Spa

  10. #145
    Senior Member glassngrass's Avatar
    Join Date
    Apr 2007
    Location
    Whittlesea, Vic
    Posts
    1,419

    Default Re: David's bookkeeping corner.

    Should also mention - the privacy consent form attached allows me to discuss (with anybody I deem relevant) the credit worthiness of client.
    Also I can list them as a default with Veda without needing a court decision in my favor first!
    It shows you mean business.
    David
    Mr Sparkle Car Spa

  11. #146
    Senior Member glassngrass's Avatar
    Join Date
    Apr 2007
    Location
    Whittlesea, Vic
    Posts
    1,419

    Default Re: David's bookkeeping corner.

    When a client doesn't pay on time, or makes only a part payment - be sure to ask them if there is a problem.
    You should not be reluctant to ask them straight out :
    "Is there a reason your account has not been paid?"

    If there is a problem with your service or a misunderstanding of some sort with billing, you want to get this into the open right away.

    When a client is under difficulties making payments, you cannot make demands with regards a payment arrangement. It is better to ask them what payment arrangements they can offer - make sure their offer is not under duress from your call.
    "What payment arrangement are you offering?"

    If you find their offer acceptable, be sure to document it right away and post/email this understanding back to them.

    "Thank you for your offer of $X per [period] to settle your account. We accept your offer and anticipate your faithful and regular payments in lieu of proceeding with 'elevated enforcement action' "

    If their offer is not acceptable, then proceed with debt collectors. Don't threaten legal action if you have no intention of proceeding - they may call your bluff!
    David
    Mr Sparkle Car Spa

  12. #147
    Member Mowjoe's Avatar
    Join Date
    Jul 2006
    Posts
    63

    Default Re: David's bookkeeping corner.

    Hi David,

    Just a quick question. I am looking at updating my work vehicle in the later part of this year. I currently have a two door Falcon 1 Tonne ute.

    I have been advised that if I purchase a 4 door vehicle, eg Hilux Dual Cab ute, I can not claim it on Tax as it is classed as a sedan for taxation purposes. Is this correct?

    I also intend purchasing it under a Chatel Mortgage, are there any pitfalls that I need to be aware of.

    Thanx
    Darrel Foster
    Hastings Valley Mowing

  13. #148
    Senior Member glassngrass's Avatar
    Join Date
    Apr 2007
    Location
    Whittlesea, Vic
    Posts
    1,419

    Default Re: David's bookkeeping corner.

    Hi Daryl

    I am neither an accountant nor a tax agent, so am not qualified to advise you on these, however here are my understandings.

    "I have been advised that if I purchase a 4 door vehicle, eg Hilux Dual Cab ute, I can not claim it on Tax as it is classed as a sedan for taxation purposes. Is this correct?"
    ANY work vehicle can be claimed if used in your business. There are several methods of calculating how much to claim, the simplest being the cents per business kilometer traveled (can claim up to 5,000 kms per year). The one I use is actual expenses as this results in best outcome for me.
    Both methods would require keeping a logbook to justify your claim.
    With the cents per km, the log book for three months will become your yearly average - so is best kept during your busy period.
    With the actual expenses method, if my log book shows 80% business, then you would make adjustment at the end of each year (or quarter for BAS) to allow for the personal use.

    "I also intend purchasing it under a Chatel Mortgage, are there any pitfalls that I need to be aware of."

    Disadvantages :
    You are locked into an interest rate that may be 'high' at present - but interest locking may be a good thing as your interest rate is known and fixed for the period.

    If you are registered for GST you can claim the GST in full for purchase at end of quarter if you report GST on a cash basis. This could be a real advantage for you. You can not do this with a lease.

    Check out these:
    http://www.motorcore.com.au/chattel_mortgage/
    http://www.finlease.com.au/fundingme...elmortgage.cfm
    http://www.assetlease.com.au/Chattel...ge-Detail.aspx
    David
    Mr Sparkle Car Spa

  14. #149
    Member Mowjoe's Avatar
    Join Date
    Jul 2006
    Posts
    63

    Default Re: David's bookkeeping corner.

    Thank you David for your info and prompt response.
    Darrel Foster
    Hastings Valley Mowing

  15. #150
    Senior Member glassngrass's Avatar
    Join Date
    Apr 2007
    Location
    Whittlesea, Vic
    Posts
    1,419

    Default Re: David's bookkeeping corner.

    The Reach Accounting website says there offer is for TWO free years subscription with every new domain registered thru Netregistry. Netregistry homepage says TWO free years.
    BUT - http://www.netregistry.com.au/domain...-registration/ says FIVE free years.

    Netregistry says this is likely a typo, but they will honor this if the offer is taken up before they correct this.

    Call to Action

    If you aren't currently using an accounting package or are wanting to change to web-based, then I recommend you take up this offer and register a new domain name even if you already have one.
    David
    Mr Sparkle Car Spa

Page 10 of 17 FirstFirst 1234567891011121314151617 LastLast

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •