If you’re a small business owner or a sole trader, the idea of doing your own bookkeeping to save money might be a great idea. But doing your company’s financials is not something to take lightly, you may do this well in the beginning and think you’re saving money but in the long run, it might cost you a fortune and your time.

On average, a startup business owner can spend many hours in a week updating records and making computations. Could be more if it is tax season and end of the year reports. This is okay but can do more harm than good to your money and time management. Doing your books are taking away valuable time for growing your business. Hiring a professional bookkeeper to take care of the company’s financial records and manage your day to day finances is something you should ponder on.

Bookkeeping is also something an expert in financials and accounting should be doing. Bookkeepers are experts in monitoring cash flow from different accounts, bills, and invoices. They are skilled in organizing your books for better money management. Though bookkeeping can be done by non-professionals, this task should be done and can be best handled by a trained individual. This will also avoid errors in your end that can cost problems in the future.

Hiring a bookkeeper can give you more time to focus on what’s important– YOUR BUSINESS. You don’t have to spend countless hours organizing your books. You can keep your focus on your business and health being.

Lastly, a good bookkeeper will help your business through all stages of starting and growing. They can give you a perspective on how you can make your budget well and run your business more efficiently. They can teach you ways on how you can cut costs and different strategies on cash flow. As they are an extension of your business and the keeper of your records, it pays to hire the right one.

Axia Accounts offers Bookkeeping, Taxation, and Accounting, Australia wide. We are more than just a traditional bookkeeping service. Our experienced Bookkeepers will give you a comprehensive, simple to understand business reports giving you a better insight into how well your business is performing.

For more information, call us today at 1300 497 790.

Australian Business Taxes

Australian Business Taxes

The key taxes affecting businesses are Company (income) Tax, Capital Gains Tax (CGT) and the Goods and Services Tax (GST).

These taxes are all set by the Australian Taxation Office (ATO).

Company Tax

A resident Australian company is subject to company tax which is currently 30%.

Capital Gains Tax

Capital Gains Tax (CGT) applies on any capital gain made through the disposal of assets. It is paid as part of income tax. Businesses are required to keep records upon acquiring assets that may be subject to CGT in the future. Small businesses may also be eligible for CGT concessions under certain circumstances.

Goods and Services Tax

The Goods and Services Tax (GST) is a national, broad-based consumer tax on most goods and services sold or consumed in Australia and is currently at the rate of 10%.

Most businesses are required to register for GST with the Australian Taxation Office (ATO).

These include any business with an annual sales turnover of $75,000 or more.

If a business is earning less than $75,000 annual sales they can choose whether to be GST registered or not.

If they are not registered then they do not need to complete and submit a Business Activity Statement (BAS) every quarter.

Sample GST due calculation

If a business makes sales of $88,000 which include GST and has expenses of $66,000 including GST, then GST to be paid is applied on the balance of $22,000.

10% (GST) of $22,000 is $2,000 which is the amount to be paid to the ATO.

Assistance with bookkeeping, GST calculations and BAS submission can be provide by us at Axia Accounts.

Contact one of our experienced Australian bookkeepers.

Payroll Tax

Payroll tax is a state tax on the wages paid to employees.

It is calculated on the amount of wages paid per month and must be paid if total Australian wages exceed the exemption threshold in the relevant state or territory.

The payroll tax exemption threshold and the payroll tax rate varies between states and territories.

Other Business Taxes

Other Australian Government and state and territory government taxes may be relevant to certain business activities.

This may include items such as land tax and fringe benefits tax (FBT).

Contact Axia Accounting to find out if this applies to you.