There are always ongoing changes in the world of business, particularly where technology is concerned. According to a recent Xero report, “there is a strong relationship between connected app use and better business performance.”
Extending the benefits of digital connectivity to all of Australia’s 2.23 million small and medium enterprises (SMEs) should be a national priority. While high speed internet is now available to half the country via the National Broadband Network (NBN), and many SMEs use apps to streamline their operations, too many small businesses are still missing out. Thirty per cent of businesses still complete business activity statements (BAS) on paper, according to the ATO. Business owners often work long nights and take few holidays because of the high number of manual, paper-based tasks they need to perform.
Xero has found that businesses with apps grew revenue by 5.5 per cent. That compares with revenue growth of just 3.6 per cent for firms on Xero with no connected apps. Small businesses are even requesting that app advisors build bespoke systems. Product development is no longer just for the big end of town. If only apps would make it RAIN!
Big Brother is watching
There is an increasing level of compliance which requires real-time reporting for all wages paid from 1 July for small businesses.
Clients will need to be careful with some of the processes in order to be compliant.
Single Touch Payroll (STP) is designed to extract information that already exists in an employer’s payroll system.
According to the government, it is not intended to impose any additional burden on employers, other than requiring them to report the information to the ATO sooner.
From a practical perspective, businesses must use STP-compatible software to comply with the new obligations. This may necessitate updating or changing current payroll software.
We believe that for just $10 a month, we can help you stay up to date with these requirements even if you are a Phoenix user.
For those with four or less employees, we will be able to report your wage information on a quarterly basis for the first two years. Please note that if you think you can pay super late, THINK AGAIN. The ATO will know when your employees are paid and how much super is due for that quarter. Superfunds are required to report superannuation contributions received to the ATO. Here at Peacocke Accountants we have moved to paying super monthly to avoid costly errors. Consider following our example.
There is no leeway for any mistakes in the legislation. And remember it is not the day the money comes out of your bank account – it is the day your employee’s super fund records it as being received!
Contact us to take advantage of our offer.
Introducing… 
Kate Boshammer is a web developer from Condamine Qld with strong ties to rural Australia and the Dubbo region. She started her business Kabosh Creative in 2009 and juggles that with being mum to a young child and helping her husband Justin with their family business, JK Cattle Company. Kate has a genuine commitment to assisting her clients, and aims to make it possible for all businesses to achieve an online presence, without the need to work with big city companies who may not understand their aims or their clientele. Read more about Kate’s work including examples of success stories at kabosh.com.au
Digital drought help at hand
A website offering tips and coping mechanisms for the drought has been established to assist farming families. Information on building communication between parents and their children regarding their circumstances can often be helpful to target the financial pressure and emotional stress of going through this hardship. For more information, visit reachout.com
Super guarantee contributions
It’s never too early to get your super guarantee contributions for the next quarter done. (January – March 2019) These should be received by your fund by April 28. Remember, if a clearing house is used, the contribution should be forwarded to the super fund to the deadline in order to meet legal obligations. Clearing houses recommend allowing an extra week for this to occur. Contact us if you need assistance with this process.
Changes to instant asset write-off
New legislation has been introduced to:
- extend the small business instant asset write-off by 12 months to 30 June 2020
- increase the write-off threshold from below $20,000 to less than $25,000
Under the proposed changes, until 30 June 2020, small businesses with an aggregated annual turnover of less than $10 million can claim an immediate deduction for the business use portion of each depreciating asset that’s less than $25,000.
Contact us for more information.