Can a BAS agent lodge super guarantee charge?
Yes. From 6 November 2020, registered BAS agents can legally provide a wider range of services relating to the superannuation guarantee (SG) and superannuation guarantee charge (SGC)
More about your Accounts Reports…
As mentioned in May’s newsletter, Accounting reports let you keep track of business transactions, and help you maintain a budget, predict cashflow, and forecast revenue
Accounts Payable
Accounts payable reporting involves tracking and recording business transactions.
Accounts payable (AP) is the money your business owes to its vendors and suppliers. These purchases could include rent, utilities, inventory and the cost of doing business. When you make a purchase, the vendor or supplier invoices you. You then make the payment at a later date.
Accounts payable are considered a liability, since they represent money your business owes on a particular date.
Accounts Receivable
Accounts receivable is the total amount of money owed to your business by its customers. This includes the money already invoiced and any credits or discounts not yet applied to invoices.
A typical AR report shows how much revenue has been generated by invoicing clients for products or services. It can also show how much revenue is outstanding.
Accounts receivable are typically considered a business asset.
It is important to review these report to ensure your business position is accurate, and no item has been recorded incorrectly.
Quick Money Saving tip
Separate your savings
A separate online savings account (or 2) is a great way to grow your money faster. Unlike a transaction account, you can’t spend money directly from a savings account, so it’s harder to dip into your savings.
Automate your savings
Transfer part of your pay into your savings account. You can ask your employer to do this for you or you can set up a direct debit. This way, you’re saving without even having to think about it.
Business Tax Deductions
What you might be able to claim
You may claim a tax deduction for most expenses from carrying on your business, as long as they are directly related to earning your assessable income.
There are 3 golden rules for what we accept as a valid business deduction:
1. The expense must have been for your business, not for private use.
2. If the expense is for a mix of business and private use, you may only claim the portion that is used for your business.
3. You must have records to prove it.
For example, if you buy a laptop and you only use it for your business, you may claim a deduction for the full purchase price. However, if you use the laptop 50% of the time for your business and 50% of the time for private use, you may only claim 50% of the amount as a deduction.
https://www.ato.gov.au/Business/Income-and-deductions-for-business/Deductions/
What you can’t claim
There are some expenses that are not deductible, such as:
- Entertainment expenses
- Traffic fines
- Private or domestic expenses, such as childcare fees or clothes for your family
- Expenses relating to earning income that is not assessable
The GST component of a purchase if you can claim it as a GST credit on your business activity statement.
**Disclaimer: The information herein is for general information only. It should not be taken as constituting professional advice. A Girl Friday is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances. A Girl Friday is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this information