Business accounting is a critical aspect of running a successful business. Learn the basics of accounting and when you should seek professional expertise.
What are the pros and cons of capitalizing software development costs and amortizing vs expensing and carrying forward losses? Is it just to make to make the balance sheet look nicer or are there...
What has been your personal experience with these software packages? Are there any better options out there besides the popular ones for a small business? I'm also interested to know if anyone has...
As Kirsty said, the easiest accounting software package for small businesses boils down to personal preference and what you are using it for. Xero, QuickBooks, Reckon, Sassu (and many other accounting software programs) are designed with small business owners in mind and have excellent resources to equip you with what you need to use the various tools and functions. While there is no one-size-fits-all approach, Xero is arguably one of the easiest accounting programs for small business owners.
Some of the features that make Xero such a user-friendly accounting package include:
It’s cloud-based - meaning you can access it from any computer or mobile device with an internet connection
There are 500+ tools available to tailor the program to your business’s requirements
It’s very easy to collaborate with your bookkeeper or accountant
Automatic currency conversion
Automated bank statement feeds
User experience is on point - Xero has one of the prettiest user interfaces which makes accounting far less daunting
It has an award-winning 24/7 email support team
The key is to read comparison guides and user reviews to help you decide on the right package. I would also second taking advantage of free trials to get a feel for different programs and how they work for you. Hope this helps.
Which accounting software packages are best (both cloud and desktop software) for sole traders without employees? My question is mainly directed at freelancers, the self-employed and one-person small...
Every business is different so there is no best software accounting package. MYOB, Xero, WAVE, Quickbooks etc all have different functionailty. Does the business need a POS interface? Does it require stock records? Do you need time keeping, traceability, barcode reading, multiple currencies conversion and reporting? Record keeping and reporting is critical for all businesses, but so are budgets and planning. Around 80% of start-ups fail in the first 5 years. so is the software decision a high prority? My suggestion:
1. Define a business plan with milestones and dates.
Most businesses aim at nothing and hit it with incredible accuracy.
2. Find a good bookkeeper or accountant
You will be busy running the business.
Get a professional to do the accounting and provide financial advice, lodge BAS, tax etc.
3. Get an Executive Support Team (people that will give you straight and honest feedback).
Don't do it on your own - you are too close to see the reality.
Ego's, emotions, passion can get in the way of objectivity and success/failure.
4. Set a budget for at least 12 months by month.
What is the breakeven point? How much money do you need to succeed?
5. Manage the business against the budget.
You can only manage what you measure. Know when to reassess priorities or stop.
Failure is a great teacher than can lead to success. But it can't do it on its own.
And the original best accounting software decision.. we covered that in point 2
As a side you should explore any grants available to support your business.
What are the main factors in selecting the best accounting firm for your small business?
For tax purposes, do I have to run my company on a calendar year basis or fiscal basis? Under what conditions can I change between them?
Would love to get your opinion on this @Amanda Hoffmann - Certified Bookkeeper, BAS Agent
Can someone please explain the differences between BAS and PAYG and how they work?
If you are a business registered for GST you will be required to lodge a Business Activity Statement. This statement will include PAYG for staff and PAYG instalments along with other taxes like Fringe Benefits Tax, Fuel Credits or Wine equalization Tax.
See https://www.ato.gov.au/business/business-activity-statements-(bas)/ for more details.
Pay as you go relates to :
You do not have to be registered for GST but employee staff.
As such, a Business Activity Statement will not be applicable. You will need to still declare and submit Single Touch Payroll (STP) for your employees.
Link on the ATO for more details https://www.ato.gov.au/Business/PAYG-withholding/
If your company/business made a profit in any financial year, the Australian Taxation Office will require you the following year's tax liability in advance.
Link on the ATO for more details https://www.ato.gov.au/General/PAYG-instalments/
In your experience, how much does a BAS agent typically charge for BAS preparation and lodgement fees? How are BAS agent fees structured?
How much does the ATO charge as a penalty fee if your BAS lodgement is late? Is there any way of appealing the penalty fee?
When you fail to pay your BAS on time, the Australian Taxation Office may impose a late lodgement penalty fee.
One penalty unit will be applied for each 28 days that you are late which equals $222
If you know you will be late lodging or payment your BAS the best option is simply to pick up the phone and let the Australian Taxation Office know in advance. Most times they are understanding of your circumstances and will not impose you with a penalty fee.
The WORST THING YOU CAN DO is not contact the Australian Taxation Office.
Failure to do so will only attract more fees and interest.