Some keys points to know!
Ensure you some base knowledge
Making sure you start your business finances on the right foot.
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In this section we are going to step through some critical pieces of information that you really need to know about the base finances of your business, the last thing you need to is to be left in the dark.
Keeping accurate records of you business finances are very important. Keeping compliant with your ATO obligations and ensuring all your details are ready for the end of year tax return is critical.
Not to mention the advantages of keeping track of your business finances and giving you the power to make powerful business decisisons.
Bookkeeper vs BAS Agent
These 2 trade holders are key to helping you keep great financial records in your business.
However it is importan to know the difference between the 2 qualifications.
1. Bookkeeper – qualified with at least a certificate IV in Bookkeeping or Accounting or higher. A passion for numbers and problem solving analytically.
2. BAS Agent – qualified with at least a certificate IV in Bookkeeping or Accounting or higher. Completed the minimum requirement to be registered with the Tax Practicioners Board (TPB) of 1400 hours in the past 4 years. With current registration number from TPB.
You can check an agents registration using this link: https://www.tpb.gov.au/registrations_search – keeping in mind they could be under a business name or personal name.
Why do we need this under control?
It really is the kind of item of business that ideally shouldn’t be put off.
The reason is, once it builds up, we are more likely to leave it even longer, and the more time that passes the harder it gets.
It will also cost you more time or money to catch up later. and Could leave to higher charges from your Tax Agent/Accountant if it’s a red hot mess come end of year tax time.
Paperwork vs Digital?
You must remember you need to keep all business financial documentation for 7 years. With all of this information, 3 key considerations must come into play.
1. Paperwork doesn’t always last the distance.
2. Digital everything is much less space consuming.
3. Digital records are cheaper to collate and maintain than paper.
So consider from the beginning and system that works for you, now and for the long term.
If you are not in a position to go digital at the beginning, at the least scan or take photo’s of your invoices or receipts to get the ball rolling in the right direction later.
A few things to know about claims…
Prime examples of what to claim and what not to claim as business expeneses:
You can claim car expenses
You can claim home office – ask your accountant
You can claim all equipment and tools
You can’t claim grooming your office mascot
You can’t claim clothes unless it’s required wear
You can’t claim ‘Tattslotto’ tickets
All receipts must be kept over $82.50 including GST
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