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Thread: David's bookkeeping corner.

  1. #46
    Senior Member Mrs HMS's Avatar
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    Default Re: David's bookkeeping corner.

    Quote Originally Posted by glassngrass
    Would love to post the spreadsheet but it's a little too big.
    Compressed it wit winzip, but forum will only accept a much smaller file if a zip, so it's still too large.
    PM your email to me and I'll send it to you.
    Hi David,

    When I need to share large files I use a file sharing website - people go and download it themselves from the link that you post that way. There are a few out there but the one I use is 4shared.

    http://www.4shared.com/
    ~ Joanne ~

  2. #47
    Senior Member glassngrass's Avatar
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    Default Re: David's bookkeeping corner.

    Quote Originally Posted by Wattle GC
    Dear David..
    I have been keeping tabs on your thread and its great info Thanks..The delemah I have is that I am a one man band however i do have the contacts to take my business to the next level with employing someone..With your knowledge could you advise me if I should take this plunge or rather involve another contractor to share the workload.
    An employment agency has called me and gave me some good advice and the government incentives to do so..I have been badly burnt with the franchise thing a few years ago however i would dearly love to take on these new contracts and employ some help but its an area i have little to no experiance with and hence reluctant to employ anyone..I know to grow the business i need to do this but i dont want the hassels that can be associated with it all and would rather concentrate on my core business..
    Any suggestions would be muchly appreciated..Regards Michael..
    Michael. Business really takes off once you get past the limitations of what YOU can do, and instead leverage from the efforts of others. HR is a specialised field and much more that just payroll. I am not qualified to advise on sourcing people, govt incentives, employee vs subby, or business coaching, however you have definitley hit on a key element to growing your business successfully - you "would rather concentrate on my core business."

    May I ask - do you do your own bookkeeping? If so - could you free up another hour of your time each day by outsourcing this so as to service and extra client each day? This would be a surew way to increase your profitability.
    If you also allowed someone else to care for your payroll, do you think this would free not only time, but of hassles of the admin associated with employees?

    Subby work may simplify things somewhat. Would you use uninsured people? - Insured contractors are more likely business oriented and may behave more like competition than labor, and there costs may leave little margin with you guaranteeing the quality of their work AND they may not be so available when you need them most - them have work of their own.

    Workcove and safety are STILL issues with contracting.
    Subby vs employee has been discussed on this forum before and you'll find some good things to consider. I also related my own experiences with employing. I suggest you do a search for this thread.

    What I CAN help you with is payroll and free you of concern by guaranteeing compliance regarding all laws and regulations governing it.
    David
    Mr Sparkle Car Spa

  3. #48
    Member Of Forum Wattle GC's Avatar
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    Default Re: David's bookkeeping corner.

    Quote Originally Posted by glassngrass
    Michael. Business really takes off once you get past the limitations of what YOU can do, and instead leverage from the efforts of others. HR is a specialised field and much more that just payroll. I am not qualified to advise on sourcing people, govt incentives, employee vs subby, or business coaching, however you have definitley hit on a key element to growing your business successfully - you "would rather concentrate on my core business."

    May I ask - do you do your own bookkeeping? If so - could you free up another hour of your time each day by outsourcing this so as to service and extra client each day? This would be a surew way to increase your profitability.
    If you also allowed someone else to care for your payroll, do you think this would free not only time, but of hassles of the admin associated with employees?

    Subby work may simplify things somewhat. Would you use uninsured people? - Insured contractors are more likely business oriented and may behave more like competition than labor, and there costs may leave little margin with you guaranteeing the quality of their work AND they may not be so available when you need them most - them have work of their own.

    Workcove and safety are STILL issues with contracting.
    Subby vs employee has been discussed on this forum before and you'll find some good things to consider. I also related my own experiences with employing. I suggest you do a search for this thread.

    What I CAN help you with is payroll and free you of concern by guaranteeing compliance regarding all laws and regulations governing it.
    Thanks David for your advice..My Mrs works as a manager in Payroll and HR for a major share holding group ,so she is right up to speed with all the latest and greatest in that area..A wealth of knowledge she is..Both of us do the bookkeeping and I have a good accountant on board as well so that side of things is well taken care of.
    I would only employ Insured and educated contractors in my field as I am aware of the "Cowboy" problem out there and to take on any un-professional contractors which my jeperdise any of my accounts would be nuts..I have certificates in Horticulture from TAFE and I am prepared to train someone but again its the juggling act of time vs money...Im finding this a very frustrating problem as expantion is staring me in the face with an unability to tackle extra work while hitting the ground running..
    It seems a case of one step back to take two steps forward but the time frames involved with that accompanied with a real risk accosiated with employees puts me at a frustrating delemah I need to work out,especially before the growing season.I am looking at the possiblity of muture age employees at this stage ,so with a little more research I may find an answer...But again thanks for you advice.. Regards Michael..

  4. #49
    Senior Member glassngrass's Avatar
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    Default Re: David's bookkeeping corner.

    Michael
    I had no end of trouble sourcing (and keeping) good people. Year after year I would hire, take on extra work, then be let down - and end up working 12 hour days inc Sat to almost keep up!
    After 07-08 I sent out 20 group certificates (I employed ONE at a time) for emplyees with service life that averaged one week!
    Before anyone suggests the problem must be ME, I assure you I have sought expert advice and relied heavily on that, and offered good remuneration for employees.
    In 08-09 I tried a different tact - I reduced reliance on help by 55% - but my earning decreased only by 20% while profit actually increased slightly.
    WOW! I realised that at present I can alleviate the headache of sourcing, managing, training and supervising staff and still grow!
    Of course, unless I leverage from others I won't grow further, but I feel a burden has been lifted off my shoulders! I enjoyed running my business again!
    David
    Mr Sparkle Car Spa

  5. #50
    Member Of Forum Wattle GC's Avatar
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    Default Re: David's bookkeeping corner.

    Quote Originally Posted by glassngrass
    Michael
    I had no end of trouble sourcing (and keeping) good people. Year after year I would hire, take on extra work, then be let down - and end up working 12 hour days inc Sat to almost keep up!
    After 07-08 I sent out 20 group certificates (I employed ONE at a time) for emplyees with service life that averaged one week!
    Before anyone suggests the problem must be ME, I assure you I have sought expert advice and relied heavily on that, and offered good remuneration for employees.
    In 08-09 I tried a different tact - I reduced reliance on help by 55% - but my earning decreased only by 20% while profit actually increased slightly.
    WOW! I realised that at present I can alleviate the headache of sourcing, managing, training and supervising staff and still grow!
    Of course, unless I leverage from others I won't grow further, but I feel a burden has been lifted off my shoulders! I enjoyed running my business again!
    Yes I see.. I earn good money by myself and I have very good contracts so Im not about to burn any of that..I either be satisfied where I am or take the plunge.. During this economic time I think I will give it more thought...Again thanks for the advice.. M

  6. #51
    Senior Member glassngrass's Avatar
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    Default Re: David's bookkeeping corner.

    I firmly believe that Australia's economy is on the up - the bust wasn't as bad as anticipated. NOW is indeed the time to consider investing in growing your business.

    If you can do well when times are tough - and grow as well - you'll be well placed to make a killing when things pick up. There will always be chaps ready to enter the market as your competitors.

    Pick the best of the bunch and make them your employees!
    David
    Mr Sparkle Car Spa

  7. #52
    Senior Member glassngrass's Avatar
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    Default Choosing the right business structure

    The following is an excert from a ATO publication:

    Having the right structure can save your business time and money.
    Commonly used business structures in Australia are
    Sole traders
    Partnerships
    Companies
    Trusts

    There are real advantages in choosing a structure best suited to the way you want to operate your business.
    It’s important you understand these advantages and responsibilities as they may affect:
    the way tax applies to your business
    protection of your assets
    your operating costs
    how other businesses deal with you.

    Sole traders
    If you operate your business as a sole trader, although you may decide to have employees, you trade, control and manage all aspects of your business.
    Advantages
    There are very few legal and tax formalities involved setting up the business.
    The structure is inexpensive to set up.
    You have full control of the business.
    You receive the full benefit of profits made by
    the business.
    You keep all the after-tax gains if the business is sold.
    Things to consider
    Your access to finances is usually limited to your own resources.
    If you have no employees, you usually have to do all the work.
    You are legally responsible for all aspects of the business.
    Debts and losses cannot be shared.
    You can lose private assets such as your home, contents and vehicles if the business goes into debt.
    Reporting and paying income tax
    As a sole trader, you need to report the business
    income you earn (after expenses) on your personal income tax return, along with any other income you earn.
    You pay the same tax as any other individual and you’re also entitled to the tax-free threshold (the first $6,000 you earn in an income year) if you’re an Australian resident.
    Paying super
    You’re responsible for your own super arrangements and may be able to claim a deduction for personal super contributions you make. You must also make super contributions for any eligible workers you employ.

    Partnerships
    If you operate your business as a partnership, you’re carrying on your business with one or more other people as partners and receiving your income jointly.
    Advantages
    Partnerships are inexpensive to set up.
    Greater access to finances from the resources of all partners.
    There are more people to share the work load.
    There are more people to share losses and legal responsibilities.
    Things to consider
    You must share the profits with the other partners.
    You and your partners are responsible for the debts of the partnership, even if you do not directly incur or cause the debt.
    You can lose private assets such as your home, contents and vehicles to settle debts of the partnership.
    Reporting and paying income tax
    Although your business does not pay tax, you need to lodge an annual partnership income tax return on behalf of the business to show the total income earned and deductions claimed by the business. The tax return also shows each partner’s share of net partnership income.
    As a partner, you need to pay tax on your share of the partnership income (less expenses) you earn.
    Under a partnership, each partner is personally liable for the tax debts of the partnership.
    Paying super
    As a member of the partnership, you’re responsible for your own super arrangements as you’re not an employee of the business. You may be able to claim a deduction for any personal super contributions you make, and the partnership must make super contributions for any eligible workers they employ.

    Companies
    If you operate your business as an incorporated company, the business is a distinct legal entity that is regulated by the Australian Securities and Investment Commission.
    A company is a more complex business structure.
    Usually, the set-up and administrative costs for a company are higher than for other business structures.
    Advantages
    A company has far greater access to capital for the running of the business.
    A company pays tax on its own profits.
    Shareholders are not liable for the debts of the business.
    Increased asset protection.
    Things to consider
    A company is more expensive to establish.
    The tax reporting requirements for companies are far greater than for sole traders and partnerships.
    Shareholders have little say in the running of the business.
    Reporting and paying income tax
    Your company must lodge an annual company tax return to report its income and deductions, and the income tax it is liable to pay. All companies pay their own income tax.
    Your company pays tax on its net profit at a flat rate of 30%, which may be an advantage for businesses with high profit levels.
    If you receive wages or director’s fees from your company, you need to:
    include them in your individual tax return
    pay tax on them at the individuals tax rates.
    Paying super
    Your company must make super contributions for any eligible workers it employs, including you as a company director.

    Trusts
    If you operate your business as a trust, you’re:
    a trustee
    responsible for holding property or income for the benefit of others (the beneficiaries).
    The most common variety of trust is the discretionary trust. If you’re the trustee of a discretionary trust, you have the power to decide how the profit will be distributed among the beneficiaries.
    Advantages
    A trust has a limited liability if the trust is a company.
    A trust has perpetual existence and does not cease with the death of a beneficiary.
    Increased asset protection.
    Things to consider
    Like a company, a trust is more expensive and potentially complicated to establish.
    It may be more expensive to complete the required
    tax and administrative paperwork each year. Profits distributed to children under 18 may be taxed at higher rates.
    Reporting and paying income tax
    Your discretionary trust does not have to pay tax.
    Instead, the trust beneficiaries pay tax on their share of the trust’s net income.
    As a trustee, you can use your discretion each year to decide which beneficiaries will receive income.
    Trusts can pay very high rates of tax on any profits that are not distributed.
    Paying super
    Your trust must make super contributions for any eligible workers it employs. This includes you if you’re employed by the trust.

    -----------------------------------------------------------
    Every business' circumstances differ. In my case I was guided by the advice of a solicitor. I own and am the sole director of a company. This company does not trade, but is the trustee of a discretionary trust fund. Our trading names and ABN are linked to the trust fund.

    You should use this information as a guide only. We recommend you talk to an accountant, tax professional, solicitor or other adviser before deciding which business structure to use.
    David
    Mr Sparkle Car Spa

  8. #53
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    Default Re: David's bookkeeping corner.

    great job david please keep up the good work
    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

  9. #54
    Senior Member glassngrass's Avatar
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    Default Re: David's bookkeeping corner.

    What's on YOUR mind. If you have a bookkeeping/accounting/office issue/concern/queery you would like me to discuss then please - let me know.
    Otherwise, I'll just keep selecting random items that may interest.

    PS : I thrive on your feedback and appreciation
    David
    Mr Sparkle Car Spa

  10. #55
    Senior Member glassngrass's Avatar
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    Default You Can't Send a Duck to Eagle School

    When hiring, I thought this article would be a good one to keep in mind.
    An excerpt from :

    You Can't Send a Duck to Eagle School
    by Mac Anderson

    A few years ago I had lunch with a top executive from a company known for their legendary retail service. My wife and I are both big fans, and over lunch I shared with him some of the great service stories his people had provided the Anderson family. I said, “With the service your people give…you must have a training manual 2 inches thick.”

    He looked up and said, “Mac, we don’t have a training manual. What we do is find the best people we can find and we empower them to do whatever it takes to satisfy the customer.”

    Then he said something I’ll never forget. He said, “We learned a long time ago that you can’t send a duck to eagle school.”

    “Excuse me?” I said. He repeated... “You can’t send a duck to eagle school.” He said, “You can’t teach someone to smile, you can’t teach someone to want to serve, you can’t teach personality. What we can do, however, is hire people who have those qualities and we can then teach them about our products and teach them our culture.”

    As long as I live I will never forget this simple analogy about hiring people. It is branded on my brain forever. And since that day, with every hiring decision I’ve made, I find myself asking the question: “Am I hiring a duck thinking they will become an eagle?” I can also honestly say that asking this simple question has saved me from making some important hiring mistakes. I just wish I’d heard it 20 years sooner.
    David
    Mr Sparkle Car Spa

  11. #56
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    Default Re: David's bookkeeping corner.

    So you won't take a chance and let the ugly duckling grow into a beautiful swan?

  12. #57
    Senior Member glassngrass's Avatar
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    Default Re: David's bookkeeping corner.

    Quote Originally Posted by Islandhead
    So you won't take a chance and let the ugly duckling grow into a beautiful swan?
    Ducklings CAN grow into beautiful swans - but a duck will never grow into an eagle!

    The question remains valid - “Am I hiring a duck thinking they will become an eagle?”

    Employers that don't recognise this are not equiped to play a role in the selection of staff.
    David
    Mr Sparkle Car Spa

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    Default Re: David's bookkeeping corner.

    Quote Originally Posted by glassngrass
    Employers that don't recognise this are not equiped to play a role in the selection of staff.
    Harsh but fair I guess, I wonder how many of us, perched on our lofty eyries, can spot the potential majesty of the eagle in the ducks that apply?

  14. #59
    Senior Member glassngrass's Avatar
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    Default Re: David's bookkeeping corner.

    Quote Originally Posted by Islandhead
    Harsh but fair I guess, I wonder how many of us, perched on our lofty eyries, can spot the potential majesty of the eagle in the ducks that apply?
    Yes, even from lowly ground level the majesty in a soaring eagle is obvious. To see it in a duck is wishful thinking !

    If you can spot eagle-like majesty in ducks, what can I say?

    Some employers, due to nature of work and mindset required, want to employ ducks. But can an eagle waddle in a pond, or is this expectation unrealistic? To put an eagle in this role is obviously foolish.
    David
    Mr Sparkle Car Spa

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    Default Re: David's bookkeeping corner.

    Quote Originally Posted by glassngrass
    If you can spot eagle-like majesty in ducks, what can I say?
    Lol... I never said I was an eagle spotter (although I am an amateur twitcher)

    I was agreeing with you david, in the sense that managers who can't spot an eagle have no business in staff selection. I was simply asking how many of us have that ability to be eagle spotters.

    The legendary Einstein himself was sub-standard at school and his own teachers never saw the potential this man had to become the lord of the eagles...

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