Good business records help you manage your business and make sound business decisions. They can also improve the value of your business if you decide to sell it. Employment records If you employ people under a modern award or agreement, you're legally required to keep accurate and complete time and wages records and issue pay slips to each employee. You need to keep each employees' time and wages records for at least seven years and make sure they are always accessible for inspection. The records should be in plain English, easy to read and not altered in any way, unless correcting an error. Whilst not all employee records are legally required to be kept, it may be best practice to keep empl

Operating a small business is about more than just being your own boss - it's also about having the management skills, industry knowledge and long-term vision to grow and succeed. If you're thinking of joining the one million people in Australia who run a business from home, check out these 7 tips to help you get started. 1. Download our Starting a business checklist Our handy checklist contains a series of questions to guide you through the various stages of your business, including: 1. before you start a business 2. when you start a business 3. when you buy a business 4. when you run your business. Download the Starting your business checklist now! 2. Develop a detailed business plan Think

As a small business owner, you’ve probably heard about the 2015 Budget changes to instant asset write-offs. To help you understand what the changes can mean for your small business, we’ve put together some key facts. What has changed as a result of the 2015 Budget? Under the changes to simplified depreciation rules for small business, you can: immediately write off eligible depreciating assets costing less than $20,000 each, as long as you buy them and install them ready for use from 7.30pm on 12 May 2015 until 30 June 2017. immediately write off a small business asset pool (including existing pools) if the balance is less than $20,000at the end of a financial year, until 30 June 2017. choo

You can generally claim a tax deduction for your business travel expenses. Records you need to keep If you’re away for one night or more, you’ll need to keep a record of everything you buy when you travel. If you’re away for six nights or more, you’ll also need to keep a diary to record all your business activities while you’re away. Include specific details of each business activity, including: 1. the date and time of the activity 2. how long the activity lasted 3. a description of the activity 4. where the activity took place. If you travel for work and personal reasons If you travel for personal reasons during your business trip, this part of the trip is not deductible. When you calculate

Building and improving on your website ranking in search engines is an essential part of running an online business. It should also be considered an objective in your overall marketing strategy. Search Engine Optimisation (SEO) can help you design a website that meets the needs of your customers and improve the chances of them finding you online. What is SEO? Put simply, SEO is a set of web best practice techniques that allows the information you publish on your website (web content) to be discovered, understood and ranked against similar websites on search engines like Google, Bing etc. SEO is about understanding how people use search engines so that your website is front and centre when th

The beginning of a new financial year can be a busy time for business owners. To help you, we've put together a list of changes that are coming on 1 July 2015 that you should be aware of, as they may affect your business compliance. 2.5% increase to minimum wage From 1 July 2015, there will be a 2.5% wage increase for employees who are paid rates from: the national minimum wage a modern award certain registered agreements. The national minimum wage will be increased to $656.90 per week, or $17.29 per hour. Visit the Fair Work Ombudsman website to find out more about the wage increase and new award rates. Jobactive to replace Job Services Australia Jobactive will come into place on 1 July 20

If you have a business website, or are planning to set one up, you can claim a number of your website costs back as a tax deduction. What costs can I claim? Some of the costs you may be eligible to claim for include: 1. buying server hardware 2. buying or developing software 3. website hosting fees. You can even claim running costs, such as website hosting fees, straight away. When can I claim? When you can claim your set-up costs can change depending on when you start (or started) trading. If you’ve already started trade, any set-up costs you’ve made prior to starting are deductible over five years. A number of set-up costs after the start of trade are also deductible: 1. Amounts under $1,0

Financial reports or statements are crucial for tracking the financial health of your business. They're also important for setting goals, making sound business decisions and obtaining finance. While you may rely on an accountant to prepare your financial statements, always check them carefully for accuracy and ask questions. With your knowledge of your business and some financial training, you can ensure that your statements are up to date and accurate. Free financial templates Start preparing your own financial reports with these free templates: Start-up costing If you're thinking of starting a business, a start-up costing sheet can help determine how much money you need to start. This can

A balance sheet is a snapshot of your business on a particular date. It lists all of your business's assets and liabilities and works out your net assets. A balance sheet can also help you work out your working capital (money needed to fund day-to-day operations) and business liquidity (how quickly you are able to pay your current debts), which can give you a good indication of the financial health of your business. On your balance sheet, list all your balance sheet items with the dollar amount for the next three years. For each year list the items and total the figures under the headings Total assets and Total liabilities. Use the outline below as your starting point for your balance sheet

A profit and loss or income statement lists your sales and expenses and is generally recorded on a monthly, quarterly or yearly basis. It tells you how much real profit you're making or losing. A profit and loss statement can help you develop sales targets and an appropriate sales price for goods/services using tools like the break-even, profit margin and mark up calculators. On your profit and loss statement, list all your sales and expense items with the dollar amount for the next three years. For each year list the items and total the figures under the headings Sales and Expenses. Use the outline below as starting point for your profit and loss statement for each year. Profit and loss sta

The small business sector has variously been described as the engine room of the economy as well as the biggest employer in the country – and it's not hard to see why. Recent research undertaken by the Council of Small Business Organisations of Australia (COSBOA) showed that small businesses were responsible for generating 5.1 million jobs, or around half of private sector employment. What is a small business? The definitions of what constitutes a small business are not consistent however. The Australian Bureau of Statistics defines a small business as having less than 20 employees, while for the purposes of corporations law it is set at fewer than 50. From a tax perspective, the bar is set

A cash flow statement can be one of the most important tools in managing your finances. It tracks all the money flowing in and out of your business and can reveal payment cycles or seasonal trends that require additional cash to cover payments. This cycle or pattern can help you plan ahead and make sure you always have money to cover your payments. See our Business finances topic for more information on managing and seeking finance. On your cash flow statement, list all your incoming and outgoing cash items with the dollar amount for the next 12 months. For each month list the items and total the figures under the headings Cash incoming and Cash outgoing. Use the outline below as your starti

If you're thinking of starting a business, a start-up costing sheet can help you determine how much money you need to start. It can also help you find the right amount of finance and determine how much money you need to invest from other sources. How much will it cost to start a business? Your start-up costing can be prepared well before you start your business and can give you a more realistic idea of what it will cost. Use the items below as a starting point to create your start-up costing sheet, listing all your current or expected start-up costs with each dollar amount. Once you have all of your items listed, total the amounts under your group headings. Conducting this activity as part o

If you are an employee and required to use your computer, phone or other electronic device for work purposes, you may be able to claim a deduction for your costs. Watch this video

Travellers departing Australia can get a GST or WET refund under the tourist refund scheme (TRS), administered by the Australian Customs and Border Protection Service (ACBPS). The scheme applies to certain goods purchased from an Australian retailer that has an Australian business number (ABN) and is registered for GST, by travellers at prices that include GST or WET. It does not apply to services such as accommodation. If a traveller has purchased GST-free goods, they cannot get a refund under the scheme. The requirements of the scheme are that a traveller may claim a refund under the TRS if they: 1. buy a minimum of $300 worth of goods from one retailer 2. buy the goods no earlier than 60

Religious holidays are days that people celebrate because of religion. Check out the Calendar of cultural and religious dates on the Department of Social Services’ website for a list of religious holidays. Benefits of letting your employees celebrate religious holidays There are many benefits if you allow your employees to celebrate their religious holidays, including: 1. higher productivity from your staff 2. improved job satisfaction for your staff 3. less risk of lawsuits due to anti-discrimination law 4. improved workplace culture 5. retaining talented employees. Anti-discrimination law and religious holidays It can be discrimination if you don’t allow your employees to celebrate religi

With the end of the financial year fast approaching, it's time for small business owners to complete bookkeeping, tax returns for 2014-15 and begin planning for 2015-16. Putting the hard work in now can help you get your business organised and work smarter in the year ahead. We have put together 10 essential tasks for your end of financial (EOFY) year to-do list. 1. Record keeping and compliance Some of your yearly responsibilities as a small business owner may include: *Summarising income and expenses in a profit and loss statement. *Conducting a stocktake. *Summarising your record of debtors and creditors. *Collating records of asset purchases or expenditure on improvements to assets to ca

When starting your business, it’s important to consider how you’ll capture and record your sales data. Gathering this information effectively can help you to measure your success over time and manage your business finances. Point-of-sale (POS) systems are computer systems that help your business to process sales. As your business grows, you may find you need to update or upgrade your POS system. This may depend on the type of business you run and the payment methods that your business uses. When choosing a POS system, make sure you consider how your business may change in the future. What can POS systems do? Depending on the system you choose, POS systems can automatically: 1. adjust sales i

Tax payers who do not meet their tax obligations may face penalty or interest charges. To avoid these charges, ensure you pay the full amount of tax you owe by the due date. The main charges for failing to meet tax obligations are the: General interest charge (GIC) - Applies to a variety of situations, whenever outstanding amounts are due to the ATO. Failure to lodge on time penalty (FTL) - Administrative penalty which may be applied if you fail to lodge a return, statement, notice, or another document with the ATO by the required date. Additional penalties include failing to: Keep or retain required records Retain or produce required declarations Provide access and reasonable facilities to

The Medicare Levy is a tax Australian residents pay to cover health care charges. It is payable on taxable income, in addition to income tax. Individuals and families on higher incomes who do not have an appropriate level of private hospital cover may have to pay the Medicare levy surcharge. ​The Medicare Levy is usually calculated at 1.5% of your taxable income, however this rate can vary depending on individual circumstance. You may be exempt from the levy or it may be reduced if you have a low income or are a prescribed person. Please note that from 1 July 2014, the government will increase the Medicare levy rate from 1.5 to 2% of taxable income for the 2014-15 income year and later incom