Separating Personal from Business Finance

  As a small business owner it can be easy to intertwine business and personal finances, but keeping the two apart is vital. To build long-term financial growth and keep track of ongoing expenses and taxes, making sure your business and personal capital are separate is essential. While as a growing small business it is tempting to save on as many costs as possible by claiming tax deductions, failing to see the difference between personal and business expenses could see you facing an audit or other legal consequences. Here’s how to keep your personal cash away from your business finances. Use Separate Accounts It seems like a no-brainer, but having two different accounts for your personal and business finances is fundamental. Even for those in the early stages of their business who see it as a one-man-shop, it’s all the more important to track business and personal incomings and outgoings separately, or risk facing a headache at tax time. Also, if you use accounting software , make sure you also have two separate systems for your personal and business financial activity. Keeping clear records all year long will provide you with proof of your business expenses in case the Australian Tax Office (ATO) queries any claims or you are audited. Have a Business Credit Card When it comes to buying stationery for the office or paying for transport to meetings, having a work credit card at the ready will help you separate your business financial activity from your personal purchases. No matter how big or small the expense, it’s important to keep your business finances on the company card...

Xero Announces New Features 2017 (Expenses & Projects)

Xero launches new expenses and projects The cloud accounting provider makes its “biggest ever” announcement of new apps and features.     Xero expenses The idea behind Xero expenses is that a user captures a receipt, and “we’ll take care of the less,” Xero expenses lead Samyak Shah told Xerocon 2017 attendees. Xero has developed a separate mobile app for expenses, as most employees don’t need access to other accounting-related functions. This app, for iOS and Android, lets a user photograph a receipt and submit it as an expenses claim. Behind the scenes, Xero extracts the relevant data and creates a corresponding transaction. Alternatively, the transaction can be entered in the traditional way via the main Xero web application, in which case the item can be entered on behalf of another person. Either way, claims can be approved by an authorised person via the app or the web, and then approved claims can be paid as a batch or individually. Other features of Xero expenses include reports such as a bar graph of a person’s expenses by category. Xero expenses is now live for selected users ahead of a general rollout. Plans for further development include the addition of mileage claims. Xero projects Xero projects is designed to make it easy to capture, track and report on the time and money spent on each job. Features will be added to support different market segments,  to include architects, engineers, and larger accounting and legal firms. Small business in Australia is fragmented and diverse, said Xero Australia managing director Trent Innes, so there will still be opportunities for boutique project management products...

Single Touch Payroll Is Coming – Start Preparing Now

If you have 20 or more employees, you should start thinking about Single Touch Payroll. You’ll be required to report payroll and super information to the ATO using a Single Touch Payroll enabled payroll solution from 1 July 2018. Visit ato.gov.au/singletouchpayroll for more information....

Penalty Rates Cuts – Hospitality & Retail Industries

Sunday and public holiday penalty rates will be reduced for full-time and part-time workers in the hospitality, retail and fast-food industries, the Fair Work Commission has ruled.   WHAT’S ACTUALLY CHANGING? Full-time and part-time hospitality workers will have their Sunday penalty rate cut from 175% to 150% Full-time and part-time retail workers will have their Sunday penalty rate cut from 200% to 150% Full-time and part-time fast food workers will have their rate cut from 150% to 125%. Public holiday rate in retail, hospitality, and fast food will also be cut. Casual workers in the retail and fast-food industries will also see their pay cut but rates for casuals in hospitality will remain the same. The cuts to public holiday rates will start from 1st July 2017.   WILL IT AFFECT ME? The workers who will be hardest hit are those in the retail, hospitality and fast food industries. Aussie’s who rely on penalty rates generally earn a relatively low wage. The ACTU estimates the FWC decision will cost low-paid workers up to $6000   IF YOU WORK IN FAST FOOD Fulltime and part-time level one fast-food workers will have Sunday penalty rates reduced from 150 per cent to 125 per cent. Level two and three employees will stay at 150 per cent.   IF YOU WORK IN HOSPITALITY Fulltime and part-time hospitality workers will have Sunday rates slashed from 175 per cent to 150 per cent. Sunday rates for casuals will remain at 175 per cent. If you’re on the national minimum wage, $17.70 per hour, an eight-hour Sunday shift would have earnt you about $248. Under the changes, that drops to...