Business

 

Business Management
 

Advisers to Privately Owned Businesses

Within small businesses, there tends to be only one or two persons who will make all management choices with regards to accounting, finance, personnel, processing or servicing, selling and marketing. This is done without the aid of internal specialists and often with detailed knowledge in only one or two functional areas. The term “knowledge or expertise gap” is an important area which has long been the point of discussion.

Having a full time finance executive or director is not an option for many privately owned businesses. Most often we find that business owners cannot efficiently handle financial matters which results in this part of the business becoming a burden, this is where an external service can help alleviate these issues.

Our clients often feel more secured and confident when they know that their financial affairs are being handled by a professional.

Many businesses face one or more of the following issues:

  • Rapid and uncontrolled growth resulting in cash flow shortages

  • Lower than anticipated profits

  • Lack of adequate finance

  • Insufficient financial and management information on which to base important business decisions

  • Lack of adequate management personnel and structure

  • Inadequate short and long term planning

  • Deciding whether to purchase another business or to expand

  • Issues such as these can be resolved with the appropriate information and advice.

Our aspiration is to be able to assist with the growth and maintenance of our clients business.

Business News

How Single Touch Payroll will impact you

Single Touch Payroll or STP is a new regulation that will change how information such as wages, super contributions, PAYG withheld etc is reported to the ATO.


Before STP was introduced businesses previously reported such information to the ATO once a year. The reports then would be submitted to the ATO digitally in a specific format. How STP will impact when you report payroll


Previously small businesses would finalise their payroll records at the end of the financial year. They would need to generate and submit to the ATO a: Payment Summary Annual Report. The report would state the amount of wages the business paid, PAYG withheld and superannuation contributions the business made Payments Summary/PAYG Summary for each employee. The PAYG summary would contain information such as the total salary that was paid to the employee, payroll taxes that was collected during the year and the superannuation contributions the employer contributed The introduction of STP means that businesses will no longer need to issue a Payment Summary Annual Report or Payment Summaries to each employee. Why payment summary annual reports are no longer needed STP requires employers to report payroll information to the ATO on a pay-by-pay basis, this removes the need for a payment summary annual report. Instead the employer will advise the ATO once they have made the last pay run of the financial year for their employees.

Why employee payment summaries are no longer needed


The ATO will use STP payroll reports as the single source of information regarding each employee’s wages paid, taxes collected and super contributions. This will remove the need to issue employees with payment summaries. Employees can access the information that used to be contained in payment summaries through their myGov account.

Online Reporting


Paper forms for payroll activity will become a thing of the past. Employers will need to submit the information digitally using the SBR (Standard Business Reporting) format.


Businesses will need to check how they are currently completing payroll. Businesses may need to change/upgrade their software or find a service provider that will be able to generate reports that are compliant with the ATO’s standards.

STP Deadline


Businesses with less than 20 employees do not have a STP deadline at current. Small Business Advisors predict that STP will become compulsory from 1 July 2019.


For businesses with more than 20 employees, STP commenced on 1 July 2018.

How to be STP ready



Businesses will need to ensure that they have the software/service provider that will enable them to submit compliant reports every payday. Businesses using online payroll software will need to ensure that the software can produce ATO compliant reports. Businesses that use a desktop payroll software will need to find a service provider that can convert the report so it is compliant, and upload and submit the reports on the businesses’ behalf Businesses that use spreadsheets or pen and paper will need to find a service provider that can convert the data into a compliant report and upload and submit the reports on the businesses’ behalf Depending on what method your business is using you may need to find a new service provider or switch to a software provider that is STP enabled and compliant.


Please contact us on admin@lockwood.com.au or 02 9299 7044 if you have any questions regarding STP. #STP

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How Single Touch Payroll will impact you

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We are Taxation and Business Advisors in Sydney.

Services include: 

  • Business Taxation advice

  • Personal Income Tax Returns

  • Super and SMSF advice

  • Finance and Mortgages

  • Accounting and Bookkeeping

 

Professional Standing

  • Member: ICAA

  • Licenced Auditors

  • Registered Business Agents

  • Registered Tax Agents

 

Lockwood and Ward • Taxation and Business Advisors • Level 9, 50 Clarence St Sydney NSW 2000

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