Christmas Gifts for Employees, Clients and Suppliers

With Christmas around the corner it is a good idea to check what are acceptable “Gifts”    Christmas Gifts for Employees Are gifts to your employees claimable? Gifts may be classified as “entertainment” or “non-entertainment”.The provision of a gift to an employee at Christmas time, such as a hamper, may be a minor benefit that is an exempt benefit where the value is less than $300. Where the gift is given at the Christmas party, each benefit can be considered separately. For gifts such as wine, food, hampers, vouchers, etc., these are not considered to be entertainment. If the gift is a minor benefit (i.e., less than $300 value), then the gift is not tax deductible, and therefore GST is not claimable for gifts to employees and their family members. No FBT applies to gifts of less than $300. For gifts over $300, FBT may apply for employees and their family members. Gifts such as a holiday, membership to a club, or tickets to a theatre, sporting or musical event are considered to be entertainment. For minor benefits, as above, the gift is not tax deductible and no FBT applies. For employees this is not a minor benefit, the gift is tax deductible but it is also subject to FBT. Christmas Gifts for Your Clients and Suppliers Are gifts to your clients and suppliers claimable? Gifts may be classified as “entertainment” or “non-entertainment”. For gifts such as wine, food, hampers, vouchers, etc., these are not considered to be entertainment. Non-entertainment gifts to clients or suppliers are deductible and GST is claimable. Gifts such as a holiday, membership to a club,...
When should you add yourself to the payroll system?

When should you add yourself to the payroll system?

As a business owner, you have a few options when it comes to paying yourself. One of these includes adding yourself as an employee to the payroll system. But you need to always balance your own pay with the financial needs of your business. So what’s the best way to do that? Think about your pay If you’re a business owner thinking about your remuneration, ask yourself these questions: How do you pay yourself? The options are salary through payroll, dividends, loans and taking money out as needed. How much should you take? Enough to get by? Enough to be comfortable? More than the highest paid employees? When should you take money out of the business? Is it ever okay not to pay yourself? In this guide we’ll help you answer these questions, so you’ll know how and when you should pay yourself. Businesses must be built Before looking at paying yourself, you need to think about the flow of money into your business. Businesses need investment to grow. In fact they often need it just to keep pace with developments in their market. Some investment comes in the shape of employee skills, which is why it’s important to hire the right employees. But some investment needs to be in the form of cash, which might come from: Financial investment. This may come from you, fellow owners or directors, or anyone else. Investors need to be paid back under agreed terms. These usually include providing a return on the original sum. Grants. These tend to be for specific uses so are only worth applying for if you need what they...

Thinking of Outsourcing Your Bookkeeping?

  Are you a business owner or operator who is considering outsourcing your bookkeeping? Then you’re in the right place! Read on to discover the benefits of outsourcing your bookkeeping to a qualified professional. Find out what to look for in a bookkeeper, what skills they have, and how a bookkeeper can help you run a more successful, profitable business. 10 reasons to outsource your bookkeeping Leveraging time is the goal of most smart business operators. Leveraging your time in business means that you achieve many tasks with the least personal input, thus reserving your time for the most important parts of your business. Outsourcing is a powerful business tool for those committed to leveraging their time. Done well, it brings significant benefits to your business. Consider the following 10 reasons to outsource your business’s bookkeeping. Outsourcing will: free you and your key personnel up to focus on your core business. save you money. A contract bookkeeper is significantly more efficient at dealing with bookkeeping issues and accounting software. This efficiency means the cost of you performing your own bookkeeping is likely to be higher. The opportunity cost (due to your time being spent on bookkeeping) may be significant again. offer you the ability to tap into a knowledge base not available internally. give you peace of mind knowing that you have complied with your legislative obligations. enable efficient dealings with the Tax Office, including lodgements. improve your financial reporting abilities, thus improving your access to key information with which to run your business. allow you to leverage the bookkeeper’s software knowledge, ensuring that you’re using the best software...