Great news for people who use their CARS for business purposes!

The ATO have announced that the rate for work-related car expenses has increased for the 2019 tax year to 68 cents per km.

This is applicable if you use the cents per km method for calculating the expense.

Isn’t it great to have more money to spend on our families!

Another tidbit from the Money Matters Made Easy for Small Business accountant.  Accolade Accounting

 

Attention Small Business Owners in Cleaning and Courier Industries

 

Attention
Small Businesses operating in the Cleaning and Courier Industries

The taxable payments reporting system is applicable to you as from 1 July 2018.
Previously only businesses operating in the construction industries were affected.

What does this mean?

You need to keep a record of the subcontractors you pay during the year and submit their details to the ATO by August 2019 for the 2018 year. Your accounting software package should be able to do this.

Should you need assistance in setting this up, please contact Neil from Accolade Accounting on 0421 824 137.

Reduce your Cash Flow pain by getting Invoices paid quickly

Think of the amount of time you spend on collecting your invoices. What a waste of productive time!

You have provided your client with work  timeously  so why should you wait for payment beyond your agreed terms?

Below are some tips that will help you collect your invoices quickly.

  1. Agree on the value of the invoice and the payment terms with your customer before you commence the work. This will prevent your customer from making excuses for not paying  the correct amount or not paying on time.
  2. Email your invoices to the customer. Gone are the days when you need to put invoices in an envelope and use snail mail. With Xero you can create the invoice and simply email it directly to your client. You will also know when they have opened it, as a mark appears in Xero  against this invoice when they do.
  3. Record the Invoice due date correctly according to the industry that you are in. If  the standard terms in your industry are 14 days, then do not allow longer terms.  Your due date can be set within Xero when creating the invoice  automatically as  a default which you can adjust per invoice should you need to.
  4. Invoice immediately after finishing the work at the latest or whenever monies are due during a project, for example a deposit at the start of a project. Create draft invoices at the commencement of a job and adjust this as need be during the life of the project as soon as portions of work are completed.  Once the work is completed this draft invoice can be converted into an actual invoice with a simple push of a button.

Should you wish to improve your cash flow, please give Neil a call for a free consultation.