USEFUL INFORMATION

The following information may assist you in gaining a better understand of why a good bookkeeping service such as ours is a benefit to you running a successful business.

Common Mistakes Made By Trades People

1. Are you a tradesperson who is working as a sole trader and believe that you're earning a personal income subcontracting to clients? 
   In actual fact, you are running a business and need to be aware of your record keeping and tax obligations.
2. Do you keep all your receipts in your work vehicle or beer box?
   While at least your receipts are in one or maybe two locations, there are many apps available that allow you to take photos of your receipts so they never get lost
3. Do you leave all your invoicing to the end of the month?
   Preparing your invoicing as a job is completed is the most efficient way to keep your cash flow rolling in, if weekly is not practical for you, aim for weekly or hire a bookkeeper to invoice for you.
4. As a tradesperson, are you aware of your tax obligations and the due date?
   Tradespeople are often hit with late fees and a tax account piling with debt, hire a bookkeeper to keep you up to date with payment dates
5. Being a tradie, I am sure you are able to fix a leaking tap or re-wire a house, but is your paperwork up to date?
   For peace of mind and to avoid running your business into the ground, hire a professional to keep on top of the paperwork for you and advise on your obligations and due dates.
6. Tradespeople often are good at what they do but have no understanding of running a business. 
   They often believe that they are just earning a personal income subcontracting as a Sole Trader. However, in actual fact, they are running a business and need to be aware of their record keeping and tax obligations. 
7. Are you a tradesperson who gets their partner to process your paperwork, invoicing and lodge tax documents?  
   I hate to break it to you but your partner does NOT want to do your paperwork for you, they want to sit back at the end of the day and enjoy family time just as you do.
8. Why do many tradies choose not to use a bookkeeper, but still complain about paperwork?  
   For a fraction of the cost, why not hire a professional to keep you up to date in a timely manner while you concentrate on the work you are good at.
9. Ask any tradie what holds them back in business, and often the answer will be paperwork.
   If this is your sore point, for a small cost it is worth hiring a professional to do the paperwork for you. 

Single Touch Payroll

Most business owners with over 20 x employees will now be aware of the implementation of STP (single touch payroll) as of the 1st of July this year. 
For the rest of the business owners out there, do you know that regardless of the number of employees you have, you will need to start reporting STP as of the 1st of July, 2019.
This means that all salaries & wages, PAYG withholding, and superannuation will need to be reported to the ATO from your accounting software program each time you process a payroll period run.
For more information, please contact Perth Bookkeeping Services.