Benefits of this is a great reduction in data entry, saving lots of time and money.  This means that your existing bookkeeping and accounting dollars can be better utilised for uptodate reporting, enabling quick management decisions to improve the producitivity, efficiency and profitability of your business.

Other benefits include

• See your cashflow in real-time. Just login anytime, anywhere. On your computer or smartphone
• Up-to-date reporting with quick links to all the original transactions.
• do pay runs and track wage expenses or connect with your payroll system.
• Manage your spending and make bill payments in bulk to creditors.
• Unlimited, around the clock email support and detailed online help center.
• Automatically import and code your bank transactions.
• Create and send invoices automatically and get paid online.
• Handle personal expenses – just review and approve receipts.
• Track stock movements and make invoicing easier with inventory items.

Youd be surprised our reasonable service levels with more services than just tax and financial statements.  Most clients are opting for a $440 per month package that includes bookkeeping as well.  Sounds pretty sharp?  Contact us for sharper money management for your business.  1300 219 818 or info@morriasccounting.com

Deductible contributions under 50years old $25,000 per year and over 50years $50,000 (with balances under $500k).

These are not eligible for government co-contribution.

Non Deductible contributions are capped at $150k per year, however you can bring forward 2 years to make a one off contribution of $450k.

Non Deductible contributions are eligible for government co-contribution if income tests are met.  $1 for $1 if your assessable income is under $31,920, which reduces to no benefit once income is over $61,920.

Employees

The only way to make tax deductible contributions is via salary packaging /  salary sacrifice.  These contributions are known as employer concessional/deductible contributions.

Non deductible contributions can be made with your after tax net wages and these may be eligible for government co-contribution depending on your income.  These contributions are known as member non-concessional/non-deductible contributions.

Business owners

You are able to make tax deductible contributions from your business if you are a sole trader or in a partnership.  These contributions are called member concessional/deductible contributions.
Those businesses in companies and trusts can make contributions on behalf of business owners. These contributions are known as employer concessional/deductible contributions.

Non-Deductible contributions should be made from personal accounts, not business accounts.  Depending on your income these may be eligible for government co-contribution.  These contributions are known as member non-concessional/non-deductible contributions.

Ensure with your superannuation fund that you are notifying them of the correct contribution types so you are able to claim a tax deduction if application or receive the government co-contribution.

Please do not hesitate to contact our office for any further assistance you need with superannuation and taxation planning.

What are yours? Please share them with us and we will help you keep accountable to those!

Its time to reflect, celebrate! (for surviving at least), and plan for 2012 to be better!

You need to take time to reflect and assess the 2011 year.  How do you do this?  With analysing your KPIS:

• Number of customers
• Sales
• Profit
• cashflow
• business owner remuneration.

Then come up with a quick action plan of goals and items todo in 2012!  Time management is key.  Dale Beaumont says Cashflow follows your Calendar! So you need to plan

• Review existing products, and are there new ones you can/need to provide to customers
• Marketing these to existing clients (easier) then to new potential clients
• Sales systems to consistently deliver great conversions
• Delivery systems to consistently deliver great customer experience, and provide opportunities to give more to clients
• Efficient Administration systems to automate non-productive tasks, and easy review of key numbers to grow business.

In particular we have additional tools for clients:

• quick analysis tool to review your business performance when you get back to the office
• specific KPIs for
• easy time management system to plan your year ahead
• set and forget strategies in 2012 so you can concentrate on improving the business next year
• automation of record keeping, and dashboards for monitoring business performance
• and more!

Talk to us about how to sharpen your business for a bright future!

Join us in learning, sharing at our last info night of 2011! Free Nibbles and Drinks , book here.

All employees should be considering salary packaging as a great way to

• save tax
• contribute to super
• save quicker
• invest more
• accumulate wealth!

Did you know that for as little as $240 a week you are maximising your superannuation savings, which could be invested in investments of you choosing, property, your ideal share portfolio?

What can you salary package tax effectively?

• Laptops
• Mobile Devices
• Superannuation
• Motor Vehicles

The above benefits have the better tax benefits.  You can package any other benefits, however these will attract Fringe Benefits Tax of 46.5%, and this may not be tax effective.

How does it work?  Most things we buy include GST.  When you are an employee you generally can’t claim the GST back, so the employer can claim that on your behalf.  Further, businesses can claim a higher percentage for laptops, mobiles, superannuation and motor vehicles than we can as individuals.

How does salary packaging increase my wealth?

Well we’ve saved at least 15% in the example of an employee earning more than $57k a year, and as much as 30% for higher income earners.

These additional funds in super earn investment income only taxed at 15%, not your individual rate of 30-45%.

The kicker is when investments are sold in super pre retirement, tax is only 10%, not 15-23% in your individual or trust name.

What happens if you saved it until retirement, then its tax free when sold, and tax free when you withdraw.  Why would you bother saving in your own name with these opportunities?!!?

Talk to us about how to manage your cash, savings and tax more sharply!

Renting where you want to live in the short term is cheaper than paying a mortgage.

Buying a property is a long term investment. So with lifestyle changing between single income, double income, kids, family, empty nesting, renting makes sense.

So invest in assets that give you capital growth, income and best of all leverage to compound growth over a long time.  Buying and selling your home over many years will incur lots of transaction costs, stamp duty, real estate agent fees.

Over time rents will increase way above your mortgage repayments. When your income reduces in retirement you will likely have paid off our home and only have rates, insurance and maintenance costs. When you need aged care accommodation you have an asset to pay for it.

Here’s some more in the Sydney Morning Herald.

For more information from the ATO website click here

The new legislation applies to all car fringe benefits after 7.30pm Australian Eastern Standard Time (AEST) on 10 May 2011; unless it can be shown there was a pre-existing commitment in place to provide a car. All pre-existing commitments will remain under the old statutory rates unless there is a change made that would amount to a new commitment.

Under the changes, the current progressive rates have been replaced with a flat statutory rate of 20% that applies regardless of the distance travelled. For new commitments, the flat rate will be phased in over four years, unless an employer elects to skip these transitional arrangements.

Employers will still be able to use the operating cost (or log book) method so that the taxable value of their car fringe benefits will exclude any business use of the car.

For more information from the ATO website click here

In this months issue

• Nathan’s update and October happenings
• Upcoming events you should attend
• Individuals and businesses – be prepared for a tax audit!
• Business strategy planning – exit of business (or death of business owner)
• Businesses! Time to review your Sales process and Customer Relationahips

Click here to read more

The four pillars of business are marketing, sales, delivery/operations and administration.  All too often confuse marketing and sales but they are two different things.  Marketing is identifying your marketing and through activities attract potential clients/customers to your business.

Sales is converting these leads from marketing, into clients and customers who will buy your service/product.   Sales is about increasing your conversion rate of leads to sales, and creating a sales process and experience that is leveraged and gives the client a good consistent experience.

Many businesses we talk to don’t have a proper sales system.  Even we are in the middle of actually re-documenting our sales process.

Things you need to address with your accountant, business advisor include:

• blueprint for a streamlined sales process
• qualifies leads to become better clients
• creates value for clients
• integrates with an easy CRM
• leveraged sales process that reduces your time and your staff can use
• and more.

We are covering these at our business power lunch, come along to find out more, or call us at Morris Accounting to discuss in further detail your sales system.