eInvoicing How to use eInvoicing to exchange invoices directly between suppliers’ and buyers’ software. What is eInvoicing? About eInvoicing and how your business can benefit from its use. eInvoicing for businesses How to get started with eInvoicing and work with your trading partners for a smooth transition. eInvoicing for tax professionals and business advisers How to support your clients in getting started with eInvoicing and enhancing your clients’ digital capability. eInvoicing for government How all levels of government are adopting Peppol eInvoicing to help boost productivity across the economy. Peppol About the Peppol framework and how to identify Australian trade partners that are ready to receive eInvoices. eInvoicing news and resources Keep up to date with the latest eInvoicing information and...
What This Resource is About When ATO officers are reviewing claims for home office running expenses and electronic device expenses, there is a need to establish that expenditure has been incurred, and the extent of deductibility. This summary of the ATO practice statement concerns acceptable verification approaches for: home office running expenses – home office electricity, gas and cleaning, and decline in value (previously known as depreciation) of home office items such as furniture and furnishings – Not deductions for computer consumables and stationery. home office occupancy expenses such as rent, mortgage interest, council and water rates, or house insurance premiums. Only taxpayers using a part of their home exclusively as a place of business can claim a deduction for occupancy expenses. electronic device usage expenses – phone calls and internet (data) expenses, but not deductions for the decline in value of electronic devices. These should be calculated and claimed in accordance with Division 40 of the Income Tax Assessment Act 1997, and the annual guide titled ‘Guide to depreciating assets’ available on ato.gov.au or through the ATO Publication Ordering Service. Basic Principles Pre-requisites for deductions include the conditions that: the taxpayer has actually incurred the expenses and has not been reimbursed (see section 3 of this practice statement), and there must be a real connection between the use of the home office or device and the taxpayer’s income-producing work. If the taxpayer uses their home office or device for work purposes and private purposes, only the expense related to the work usage can be claimed as a deduction (see section 4 of this practice statement). In effect, a taxpayer can claim a deduction for the ‘additional’ expenses they incur,...
10 Tips on Starting a New Business Starting a new business can be overwhelming. You have to consider what products or services to provide, which type of customer you want to work with, and how to earn enough money. These 10 tips help the small-to mid-sized business owners make the right choice. #1: Create your list of services. Don’t try to do everything. If you’re doing consulting, be specific about the type of consulting you want to do. #2: Find your jam. In other words, what niche do you want to work in, and how will it differentiate you? Your jam can be anything from your ideal industry, to the services you provide, to the software or apps you use. #3: Determine your business structure. Depending on what type of business you have, you may need to set up a sole proprietorship, partnership or company. Check with your accountant, or lawyer, to determine the best structure for the type of business you run. #4: Design processes. Think about what processes would help you – lead tracking (essential), onboarding new clients, finances and weekly/monthly/quarterly processes. #5: Establish revenue streams. Plan for your revenue stream. To develop these, look at your core services and determine what other things you may provide. #6: Get out there. “Remember Field of Dreams,” where Kevin Costner kept hearing a voice saying, “If you build it, they will come?” That’s the mistake many small business owners make. They decide to open up shop, so they set up a website and expect to immediately have clients. To get clients, you have to work hard. Social media, in-person networking,...
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 so...
I am the product of a small business family. My dad started his first business the year I was born and by the time I left high school, he was running his third business. Right now, he’s on his fourth. Being part of a small business family wasn’t always easy. There were good times, but there were also tough times. The hours were long and everyone had to contribute. Growing up, I started to notice the difference between our family and my friends’ families, where their parents had a regular, corporate job. Today, I am nothing but grateful for what my dad has given me. In fact, I feel very lucky and privileged because I got to witness my dad doing what he loved. Like so many small business owners, he wouldn’t have been happy doing anything else. I don’t think he ever specifically told me he loved his work, and I don’t remember ever discussing the trade-offs of starting a business. But what I did learn from him is that we should all do something that makes us happy. This is an incredible gift which has shaped key decisions in my life. I also learned some great business fundamentals – lessons which I reflect on and share with others whenever I get the chance. 1. Dream big Someone has to have a vision for your business and it should be you. Share your vision with your team, suppliers, customers … anyone who will listen. We all love a story and love to be a part of something bigger than the here and now – your vision adds to the intangible...
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