Annoucement: This blog has relocated

We have a new look and location. Now you can read the Dollars & Sense blogs at Dollars & Sense.

Office 2007 Tips & Tricks

Simple tasks can become very frustrating if you're not sure how to go about them. Sometimes you simply need to know how to fix your page numbering in Word or produce a particular chart in Excel.

Small business operators especially simply cannot afford to waste a single moment more on administrative tasks than necessary. For this reason, I have created a blog to handle queries and showcase tips, tricks and tutorials to save you time and stress at the computer.

Practical Computing lays everything out in a clear manner with regular video demonstrations and plenty of screenshots to accompany instructions.

Writing Off Bad Debts in MYOB

The above screencast demonstrates how to write off bad debts in MYOB. Full instructions along with more screencast tutorials will be made available from our web site soon. Be sure to send in any requests!

Office Closed 6th - 13th April

Please note that our office will be closed from Sunday 6 April until Sunday 13 April. Clients who wish to speak with Alan are welcome to try reaching him on his mobile phone.

If you don't get through (we are staying in an area with little reception) please leave a message on the mobile and Alan will call you back as soon as he can.

Alternatively, voice messages left on the office answering machine will be followed up on the 13th when we return. Thank you for your understanding.

2008 Next Big Thing Awards

Applications are being sought nationwide from businesses and individuals who have designed new products with the potential to become the 'next big thing'.

The Next Big Thing Award, created by the Victorian Innovation Centre INNOVIC, is designed to celebrate and promote Australian innovative ideas.

Winners receive over $50 000 in cash and prizes plus media exposure. An exhibition of the 21 finalists' innovations also be held at the Melbourne Museum.

Applications close on 14 March 2008. For more information on eligibility and the application process, refer to the Next Big Thing Award website or phone INNOVIC on (03) 9650 4733.

December quarterly superannuation contributions due soon

ATO Media Release 2008/05

The Tax Office today reminded employers that December quarterly superannuation contributions for their employees must be paid to a complying superannuation fund by Tuesday, 29 January 2008.

Tax Commissioner Michael D’Ascenzo said that since the 28 January deadline falls on a public holiday, contributions can be made without penalty until close of business on Tuesday, 29 January 2008.

“Even if you contribute more frequently than quarterly, you should pay all super guarantee contributions for the December quarter on or before the due date,” Mr D’Ascenzo said.

“If employers don’t make sufficient superannuation contributions by the deadline, they must lodge a superannuation guarantee charge statement and pay the super guarantee charge to the Tax Office by 28 February 2008.”

Employers unsure how to meet their super guarantee obligations can visit the Tax Office website at www.ato.gov.au/super or phone 13 10 20 for more information.

Company, Super and Trust Returns Due

REMINDER:

If you are not using a registered tax agent to prepare and lodge for you, the due date for company, superanuation fund and trust income tax returns is January 15th, 2008.

Centrelink info for business

As a business owner and/or employer, you should be aware of information available to you from Centrelink.

Without ever leaving your computer, you can discover a range of information on assistance, services and business opportunities available to you and download a number of business publications.

For more information check out the Centrelink Business Index.

Risk Management Guide for Small Business

As a business owner you need to be aware of the risks (and not just financial ones) associated with your business. The NSW Department of State and Regional Development have made a free Risk Management Guide available.

The guide can help you identify risks to your business and meet legislative and regulatory requirements in the areas of:

- occupational health and safety
- fair trading
- contracts
- insurance

To read the guide online or download a free PDF version to your own computer, you can head directly to the Risk Management Guide at the NSW Small Business site by clicking here.

Super Contributions Due Soon

REMINDER:

If your business employs staff, you will need to make your Quarter 1 superannuation guarantee contributions by 28 October 2007.

Tax Office Announces External Debt Collection Panel

Source: ATO Media Release 2007/48

The Tax Office today announced the appointment of a panel of external collection agencies to assist with the collection of debt, including tax debts over two years old and employer superannuation guarantee charge debt.

Acting Tax Commissioner Jennie Granger said the appointments follow a successful 3 month trial conducted in 2006, which resulted in $21 million in outstanding debt being collected.

“We do understand there are situations when it can be difficult to pay an outstanding debt. What is really important is that people contact us as early as possible so we can agree on a suitable arrangement to get them back on track,” Ms Granger said.

“The panel will help us follow up more quickly and encourage people and businesses to pay their debts.

“Some of the debt to be referred for collection will be superannuation money owed to employees so will help protect retirement savings,” Ms Granger said.

The Tax Office was allocated an additional $42 million over four years in this year’s federal budget to establish and pay for the services of the panel, and expects to commence referring parcels of debt for collection activity towards the end of 2007.

The panel is required to adhere to strict privacy and professionalism guidelines and will have to report back to the Tax Office monthly on their progress and adherence to these guidelines. They will also need to meet all Commonwealth secrecy and privacy requirements.

“Our debt collection strategies, including the establishment of this panel are about fairness and creating a level playing field for everyone.

“I encourage anyone experiencing difficulties to contact us as soon as possible on 13 11 42 and we will work with them to clear any tax debt before it becomes unmanageable,” Ms Granger said.

Business Encouraged to Reassess Attitutes to Mature Workers

Today sees the release of the Mature Age Employment Practical Guide, an online, one-stop resource for employing people over 45 in Australia.

The guide is designed to address the needs of small and medium-sized businesses. It includes information on how to find and keep experienced, older workers and what HR policies and practices employers need to implement to respond to the smaller, older workforce.

The message is, if you don't keep your older workers you're heading for trouble.

“The country can’t afford to retire its most experience workers. We simply do not have queues of similarly experienced workers waiting in the wings,” Minister Stone said today in a media release.

“As the population ages, and the generations following the baby boomers continue to shrink, Australian businesses need to reassess their attitudes to mature age workers. Successful businesses will be those who retain older workers.

According to Dr Stone, “Businesses must appreciate the importance and financial benefits of keeping or recruiting mature age staff to meet their skills needs."

Tax Help and Equine Influenza

The Tax Office is offering assistance to businesses directly affected by equine influenza and the resulting quarantine measures.

Tax Commissioner Michael D’Ascenzo has reassured people affected that we will work with them during this difficult time to help them meet their tax obligations.

“We understand that equine influenza has directly affected the income of many people involved in the horse and related industries,” Mr D’Ascenzo said.

“Anyone who is having problems meeting their tax obligations should call us as soon as possible on 13 11 42 so we can make arrangements to suit their individual circumstances.

Your tax agent can also contact the ATO on your behalf.

Remember, even if you can’t pay the amount owning in your activity statement, it’s important to make every attempt to lodge it by the due date.

Tax Dobbers Turn on Bosses

The Daily Telegraph yesterday reported that more than 120 people a day turned informant on their bosses, neighbours and even former lovers last financial year to accuse them of tax fraud through a confidential hotline.

Over the past three years a whopping 140,616 Australians called the Tax Evasion Hotline to accuse others of cheating on their tax. It seems the ATO are keen to follow up on these leads with more than $4.4 million in lost revenue already identified as a result of the information supplied in 2006-07.

Businesses failing to report cash income was the most common tax evasion practice followed by paying cash-in-hand wages.

Fax Spamming - Have Your Say

We receive a fair amount of "junk mail" via our fax machine. Most of the time, the interuption is minimal and I give it little thought. However, it does interupt productivity, uses our print resources and ties up the fax machine... none of this leaves me with a positive impression of the sender.

How do you feel about commercial fax spam? Should the Government take action to reduce the volume of unsolicited commercial faxes?

The Business Consultation website is asking for businesses to provide comments on a consultation regarding unsolicited commercial fax messaging. The closing date for comments and submissions is 17 September 2007 and businesses are able to submit their answers online.

While you are at the website you can register your interest to be consulted on government policy or regulation affecting business and also view current and archived public consultations.

MYOB Professional Partner

We are pleased to announce that Alan Lewis Accounting & Taxation now operates as an MYOB Professional Partner and Authorised Reseller.

As a Professional Partner we are better equipped to evaluate your specific software needs, supply and install MYOB, set up files and accounts and train clients in the use of the software.

Keep an eye on our site for product updates, tutorials and additional resources.

Business Name Checks Online

Do you want to find more information on a registered business?

You can now search online using the NSW Office of Fair Trading's Business name details check. The search can provide a range of information including:

- business name and registration number
- registration date and status

- ABN
- business addresses, and
- nature of the business.

For more information and to use the search, visit the Office of Fair Trading website today.

August Lodgement Dates

11 August:
Quarter 4 (April – June 2007) activity statements: final date for paper or ECI lodgment and payment.

14 August:
PAYG withholding payment summary annual report – final date for lodgement.

Due date for reporting departing Australia superannuation payment (DASP) data records for the 2006/07 year that form part of the PAYG withholding payment summary annual report.

21 August:
July 2007 monthly activity statements: final date for lodgment and payment.

Final date for monthly GST reporters to elect to report GST annually.

28 August:
Due date for lodgment of the Superannuation guarantee charge statement – quarterly and payment of the superannuation guarantee charge for quarter 4 (April/June 2007) if sufficient contributions were not paid on time.

31 August:
Reasonable benefits limits (RBL) reporting – due date for funds to correct any errors on previously lodged reasonable benefits limits reports.

MYOB Account Numbers

Within each of the major account types (header or detail) there are a number of account types that may be nominated. The account number in MYOB is a four-digit number that is added to the prefix that identifies the type of
account it is.

The number you give an account will determine it's order and grouping in the financial statements. So what are the types of account and their prefix in MYOB?

1. Asset:
In the simplest of terms, assets are what is owned. Assets are resources controlled by the business from which future economic benefits are expected. Examples of assets include cash, accounts receivable, furnishings, vehicles and equipment. Assets will probably be grouped as current or non-current (but we'll get to that in another lesson).

2. Liability:
In everyday terms, this basically means what is owed. Liabilities are the future economic sacrifices that the business is obliged to make. Examples of liabilities include accounts payable, credit card debts and bank loans. As with assets, liabilities will also be grouped as being current or non-current in nature.

3. Equity:
Equity (frequently called owner's equity or proprietorship) is the owner's claim on total assets of the business. A simple way to look at equity is 'what the business owes to the owner.' Common equity accounts include capital, retained earnings and drawings.

4. Income:
Income (also called revenue) arises from the ordinary activity of the business. This usually comes from sales or services provided in the ordinary course of business.

5. Cost of Sales:
Cost of sales (commonly called COGS or Cost of Goods Sold) are the expenses to the business directly related to the goods being sold. As service businesses do not have inventory, they have no need for COGS accounts. Typical cost of sales accounts include Purchases and Freight Inwards. Cost of Sales are taken from Net Sales on the Profit & Loss in order to arrive at the gross profit figure.

6. Expense:
Expenses are assets consumed or services used in the process of generating revenue. Typical expenses might include things like rent, wages paid, office supplies, bank fees, advertising expenses and electricity. Expenses are taken from gross profit to arrive at net profit.

8. Other Income:
Other income is where you would put income received which is unusual or outside the ordinary revenue-generating activies of the business. Examples
might include interest received or the proceeds from disposal of a long-term asset.

9. Other Expense:
Other expenses is often used for out-of-the-ordinary expenses or those not related to the income producing activity of the business.

For more MYOB information, visit our MYOB Tips and Tutorials Page.

Disastrous Domain Names

If you are planning on registering a domain name, it's so important to look at it closely... see it as others will.

What follows is a series of actual unfortunate business domains.


Looking for a pen? Look no further than Pen Island at
http://www.penisland.net/

If you’re looking for computer software, there’s always
http://www.ipanywhere.com/

Experts Exchange is located at.. wait for it...
http://www.expertsexchange.com/

The Mole Station Native Nursery, based in New South Wales has since removed their site at
www.molestationnursery.com

The First Cumming Methodist Church has their website at
http://www.cummingfirst.com/

Need a therapist? Try Therapist Finder at
http://www.therapistfinder.com/

A site called ‘Who Represents' where you can find the name of the agent that represents a celebrity has the domain name
http://www.whorepresents.com/

Locate speedy art designers at
http://www.speedofart.com/

Then of course, there’s the Italian Power Generator company…
http://www.powergenitalia.com/

I can't help wondering, why didn't somebody tell them?