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Are Your Casual Employees Really Casual?
Posted 11 December 2019

Are Your Casual Employees Really Casual?

Whilst there has been much talk about an increase in the casualisation of the Australian Workforce the actual rate of casual employment has remained steady at 24%-25%, according to data from The Australian Bureau of Statistics.

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The Correlation Between Poor Accounting Processes, Lost Profits and Cash Flow Slumps
Posted 11 December 2019

The Correlation Between Poor Accounting Processes, Lost Profits and Cash Flow Slumps

Because bookkeeping encompasses so many aspects of your business, including purchases, sales, receipts, payments, reconciliations and reporting, poor quality bookkeeping has the potential to cause significant harm.

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What You Should Be Getting From Your Bookkeeping and Admin Team?
Posted 10 December 2019

What You Should Be Getting From Your Bookkeeping and Admin Team?

As per other articles on our website the advent of the GST Act in 2000 exponentially changed the role of the bookkeeper from basic data input for accounts payable and receivable and basic payroll to a much more complex one.

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Superannuation, It’s More Complicated Than You Think. Are You Processing It Correctly?
Posted 10 December 2019

Superannuation, It’s More Complicated Than You Think. Are You Processing It Correctly?

The introduction of the SGC required employers to pay to employees selected superannuation fund an amount equal to 3% of assessable wages.

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The Evolution Of Basic Compliance and Accounting Practices In Australia
Posted 9 December 2019

The Evolution Of Basic Compliance and Accounting Practices In Australia

The implementation of the GST in Australia in 2000 created a new and important environment for the bookkeeping industry.

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The Essentials and Basics of Accounting and Business Administration
Posted 4 December 2019

The Essentials and Basics of Accounting and Business Administration

The GST Act requires accurate record-keeping in order to lodge regular BAS with the ATO.

The role of the bookkeeper is therefore important in maintaining and recording all transactions that impact the BAS.

Bookkeepers must keep a business advised of the following:

  • Advising the business of any liabilities, obligations or entitlements of the business that may arise under a BAS provision.
  • Deal with the ATO in regards to any issues arising from BAS preparation
  • Prepare and lodge the BAS either in paper form or via the ATO portal
  • Advise the business of the liability that will arise subsequent to the preparation of the BAS and the due date for payment

The bookkeeper must also be aware of the BAS provisions which include the following:

  • GST
  • Fringe benefits tax
  • PAYG withholding
  • Pay as you go (PAYGI) instalments
  • Luxury car tax
  • Fuel tax
  • Wine equalisation tax

In order to comply with much of the above record keeping becomes an integral part of the BAS process. In the event that the regulator, the ATO, conducts an audit all BAS or GST transactions must be supported by correct and accurate source documentation.

In summary, the following source documentation must be kept for a period of five years:

  • Sales invoices
  • Receipts
  • Cash register tapes
  • Tax invoices received from suppliers
  • Payroll records

The ATO allows for records to be kept in electronic form and consistent with this requirement most accounting software allows for the attachment of pdf copies of appropriate documents to be attached to the electronic transaction removing the need to retain hard copy records.

As can be seen from the above the duties of the bookkeeper have changed significantly since the introduction of the GST and are much more onerous than previously. In order to comply with all the issues surrounding BAS the bookkeeper, whether internal or external, should have a Certificate 1V qualification and if external should be a registered BAS agent through the Tax Practitioners Board.

 

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What Are the Most Important Financial Metrics You Need To Understand?
Posted 4 December 2019

What Are the Most Important Financial Metrics You Need To Understand?

By definition business metrics are quantifiable measures that a business may use to monitor any number of business processes for success or failure.

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The Importance Of Financial and Non-Financial Metrics
Posted 4 December 2019

The Importance Of Financial and Non-Financial Metrics

Companies that deliver high-quality service, have good customer satisfaction, customer retention and low staff churn are probably using good metrics to measure their performance.

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The Importance Of Adapting To New Technology and Introducing Automation
Posted 4 December 2019

The Importance Of Adapting To New Technology and Introducing Automation

Automation is becoming the catch cry in many industries from mining to accounting with driverless trucks becoming the normal practice on mine sites to automated accounts payable systems in accounting software.

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Working Together With Your Team To Maintain Safe Work Practices
Posted 4 December 2019

Working Together With Your Team To Maintain Safe Work Practices

Workplace Health and Safety (WHS) or OH & S as it is more commonly known is a major issue for management. Full compliance with WHS laws and regulations is essential to avoid significant penalties.

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