Understanding the Basics of Tax on Superannuation
Do you know how much tax you pay on superannuation contributions and withdrawals? The amount of tax depends on several factors. It is possible to minimise the amount you pay by understanding how the tax on super works. Tax on super is generally a lower rate than the tax on your income. By using a […]
Understanding the Basics of Business Taxes
Different business structures pay taxes in different ways. There are many taxes that may affect a business. The main ones are; goods and services tax, income tax, pay as you go withholding tax for employees, payroll tax and excise tax. Other taxes that a business could encounter are; fringe benefits, capital gains, property, vehicle and […]
How to Improve your Procurement Spending
One of your most significant areas of business expenditure will be buying the goods and services needed for the company to operate. Whether these are raw materials, wholesale goods, or cloud services, you need someone to control this procurement process. Managing your procurement spending is vital for keeping the business cost-effective and competitive in the […]
Cash Flow and Profit: Which is King?
The foundational goal of any business is to make a profit. As a business owner, that’s one of your key financial aims – to make enough sales at a big enough margin to generate profit from your enterprise. But how does profit differ from cash flow? And why is cash king? How do profit and […]
Unique Selling Point: What’s Yours?
Making your business stand out in a crowded market can be a challenge. However, differentiating your business will be key to attracting the right customers. Give them a reason to choose you over a competitor. That’s why it’s important to identify your unique selling point (USP). Your USP give you a differentiator to communicate in […]
PAYGI and PAYGW: What’s the Difference?
Many people new to running a business and employing people are unsure about the difference between PAYGI and PAYGW. They are not the same thing! PAYG stands for ‘pay as you go’. This is the means the ATO uses to obtain tax payments from both employees and business owners. Paying tax ‘as you go’ throughout […]
What is Personal Services Income?
Personal services income (PSI) is income received as payment for individual personal efforts and skills. It applies to many contractors who provide services to earn an income. PSI rules can apply to individual sole traders and other types of business entities, but not employees. If PSI rules apply, the entity is called a personal services […]
Contractor or Employee – What You Need to Know
What is the difference between a contractor and an employee, and whose responsibility is it to get right? An employee works in the business and is integral to that business, has rights and entitlements under the Fair Work Act 2009, has a reasonable expectation of ongoing work, agreed hours, and duties, is covered by the […]
Financial Accounting vs Management Accounting
What’s the difference between Financial Accounting and Management Accounting? You’re running a business, so you know the legal requirements around producing accounts and submitting tax returns. But do you truly know WHY you’ve engaged an accountant? And do you understand the value that a good accountant and business adviser can add to your company? As […]
Business Asset Depreciation 101
Business asset depreciation is what happens when business assets lose value over time. It’s an often-forgotten cost of doing business – but it shouldn’t be. Here’s why depreciation is so important: Costs you money – Depreciation accounting involves calculating how much value your assets lose each year. It can be listed as a loss and subtracted […]