How To Attain Maximum Profit For Small Businesses With The Implementation Of GST Reform? KNOW IT NOW.
With the incepting roll-out of change in GST reforms onwards July 1st, 2017 would be benefitting the owners of small businesses; the parliamentary budget was the one to sought for that brought the shine on economic policies driving record growth of small businesses profitably.
How is it going to make the accounting task for first-hand trade owners facile & stress-free?
This major change has been made possible by the all-round co-operation & partnerships amongst ATO, software developers, tax professionals & small business affiliation. The resultant of this is Simpler Business Activity Statement (BAS) which is meant to report less GST information reducing the headache & making more convenient for the owners to harness & channelize their work-flow.
The to-do list includes,
- GST on sales (1A)
- on purchases (1B)
- Total sales (G1)
While the ta-da list comprises of,
- GST free Export Sales (G2)
- GST free sales (G3)
- Capital purchases (G10)
- Non-capital purchases (G11)
Things to Know
- If your annual GST turnover is less than $10 million, you will be transitioned to Simpler BAS reporting from 1 July 2017.
- Simpler BAS will not affect how other taxes are reported (Ex: PAYG income tax installments or PAYG tax withheld), or how often you submit your BAS.
- You still need to keep records, such as invoices, as proof of any claims you make in your BAS and income tax return lodgements.
- Subject to eligibility, small businesses registering from 19 January 2017 have the option to use Simpler BAS immediately.
To get the things in order & to gain the right amount of zenith in the business, it is best to hire a professional accountant to get the most equitable things in the system to boost up your business as well as to give it an unprecedented growth by utilizing the liabilities-turned-assets giving your business a very good dividend in the interim span of time & take it to a new height.
Amongst the Tax Accountants in Melbourne, PND Accountancy Firm provides one of the most reliable, customer-centric & re-growing business services to the clientele. In turn, this will ease the cramped paperwork needed to be covered every forth-night & will get you your own leisure time needed to spend with loved ones.
Why do you need to hire a Professional Accountant…In What aspect do you benefit the most…is it worth shelling out your hard earned capital?
Is Book-keeping a more fancy job than working straight for long hours & getting strangled in the weekend keeping up with the records, purchases & expenses throughout the week, piling and filing up your mind as well as the office? Obviously not.
Most of the business owners don’t really enjoy book-keeping. In this process of doing all by myself; the DIY attitude needs to be redesigned as it ends up in consuming themselves; not getting time to spend with their loved ones.
Appointing an accountant is not an indication of a lavish lifestyle but a sign of wise & think-thorough business decision. The need of the hour is to invest now in this to help you yield optimal dividend in your significant profession then.
They will very well keep a tab on your statutory obligations & debt in the business ensuring that your long-termed nest egg grows economically strong for a significant return. Hiring them will fetch you a bonus of giving back your weekend as well as ensured financial returns. One just needs to handle them in a tacit way to make sure your money is well-spent.
Here you don’t wanna end up in a fiasco in the long run, so it’s prudent to know the downsides of DIY Accounting & Book-Keeping.
Being a small scale business owner, you have a lot to cover up with the book records & margin-statements. Starting over with DIY way for a short run is fine, but one must remember that Book- Keeping is not a quarter-mile race to be finished but a lap race with consistent limitations & obligatory documentation needed to give a thrive to your own business to take it to the accounted growth it is meant to be.
Here’s the snag of what not-to-get-into.
- You don’t have complete information to help you make the right decisions at the needed time.
- The books end up in miscalculating additional tax burdens which make up for the tedious hours to fix.
- Paying your tax bill late may end up you in legal tax triangles.
- You can miss out on deductible assets resulting in paying more tax than accounted for.
- As the business grows, one can fall behind with invoicing & in turn chasing up unpaid balance sheets.
- Book-Keepers track money owed, bill due to dates & bank balances, keeping track of these three provides your company with a good credit score for a scaling company. Hence, your reputation to boosts up.
Online Bookkeeping Services are too now available which clears out the possibility of visiting your accountant personally. Software, as well as websites designed for ease of customer-centric needs, is also a good option to keep the accounts & financial operations in check. This ensures a sound & secure log of all the tax entries. Accounting Professionals guides you virtually by cleaning your accounts books once & for all. They ensure by cleaning everything up so you have a clean-slate record of your legal indenture. As mentioned, they will set you up with online software that makes it much easier, faster & hassle-free for the future incomes, expenditure & data-entries possible. Hence, it is you who will reap the benefit by hiring a good accountant.
Which things do you require first-hand when one sets up a new company or trust?
One of the most crucial & crux that indicates the growth & revenue of a company for a start-up is KEY PERFORMANCE INDICATORS (KPI). What do these comprise of? It demonstrates how effectively a company is achieving the key business aim. Accountants help you unclog your growth in your business by removing unnecessary expenses & streamlining your cash flow, adding to this, they also help in figuring out what drives revenues & profit upstream in your business which is the crux of an agile & record growing company to build on.
Exploiting the KPI: What factors steer the KPI index…find out NOW!!
- Chart out a clear objective for your KPI
- Share your KPI with your stakeholders
- Review the KPI on a bi-weekly basis
- Make sure the KPI is actionable
- Evolve your KPI to fit the changing needs of the business
- Check to see that KPI is attainable by the people working with
- Update & mind change in the KPI objectives as & when needed
KPI in action
As an example of how this might work, think of a startup or a small scale business whose primary need is to get as many sales possible with a small target initially. Not possible to crack enough sales without a service list of clientele & what they offer to them. They won’t get the service list until they sufficiently commence to market themselves & make contact with the outsourcing firm. Unless they don’t have a considerable number of clients, the revenues won’t be reaching its target. To ease this, accountants can make sure by measuring the right yardstick by getting
- Calls answered
- Contacting outsourcing firm
- Getting revenues boosted
- Making sure you get the resources you need for a sky-dive initially.
Pulling all the strings together, an accountant encourages the business owner to get an answering-outsourcing firm. They would even tell you how much to expect a return in the interim future by investing today. Apps like Geckoboard & Salesforce helps to track your KPI performance virtually. An accountant can set these up for you, so you can always keep a tab on where to improve your business.
Why it matters today to get an Accountant & getting the best bang for your every buck spent?
As for in any profession, one wants to have the best of what they spend behind for. So is here, hiring an accountant; Try to keep them focused on the problems or the opportunities that you find it more profitable for the business development. Try not to hinge them on labour-intensive or low-yielding work that takes away the time that you spent money for like
- Pinning up the errors in your books
- Squaring up bank accounts
- Squaring up control accounts
- Scurrying up the tax deadlines
Above mentioned help lines are important, but they won’t be adding a tonne of value to your business.
Burning your budget dividing through this minuscule task will leave you hindered in your business growth. So, rather focus on getting your business on track with the strategies you need to adapt through the accountant helping your business to streamline & shape-shift faster & in the more optimum way. TO BE IN BUSINESS, you have to heart in your business & your business in your heart.