GST is one of those tricky things, its existence keeps us in our jobs, but for small business it causes endless frustration and confusion.
GST or Goods and services tax is not clear cut nor is it black and white. For this reason it is important to be aware of those areas where GST free items may play a role in your small business.
We have put together a quick list of items, fees and charges that are GST free or have not reportable GST for you to use as a quick reference guide. Perhaps refresh yourself on areas of your business where you assumed an item had GST.
Keep in mind that these are the main ones and there are more out there. If you would like to add to our list please feel free, as this list can become a very useful resource for others to draw from, as we attempt to make the GST a little less fuzzy around the edges.
It can sometimes be difficult to determine the appropriate tax code to use. This article explains the different tax codes for use in bookkeeping, and gives some examples of when they might be used.
GST transactions where claimable by the business
A well-structured bookkeeping system is more than just record-keeping; it is the foundation for financial success and sustainable business growth. Without accurate financial records, businesses struggle with cash flow, compliance, and forecasting, which can lead to costly mistakes. A professional bookkeeper ensures that your financial data is organised, accurate, and optimised to help you scale efficiently.
At Figureworks Bookkeeping, we specialise in setting up and maintaining high-quality bookkeeping systems using Xero, giving businesses the clarity and financial stability they need to grow. In this blog, we’ll explore how professional bookkeeping supports business expansion and long-term success.
One of the key elements of business growth is understanding your financial position. Inaccurate or disorganised financial records can lead to poor decision-making, unexpected cash flow shortages, and compliance risks.
How a Professional Bookkeeper Helps:
With a strong bookkeeping system in place, business owners can confidently make data-driven decisions that support long-term growth.
Poor cash flow management is one of the top reasons businesses struggle or fail. Growth requires reinvestment in inventory, employees, or marketing, and without a solid cash flow system, business owners may find themselves unable to cover expenses when needed.
How a Professional Bookkeeper Helps:
By working with a professional bookkeeper, businesses can avoid cash shortages and confidently invest in their future.
Scaling a business requires financial planning. Whether expanding to new markets, hiring staff, or launching a new product, having a reliable forecasting system is crucial.
How a Professional Bookkeeper Helps:
A well-maintained bookkeeping system ensures businesses can predict and plan for their financial future with confidence.
Failing to meet tax obligations can lead to penalties and financial setbacks. A strong bookkeeping system ensures that all financial data is ready for BAS and tax lodgment, minimising risks and ensuring compliance.
How a Professional Bookkeeper Helps:
Staying compliant means business owners can focus on growth without worrying about financial mismanagement or penalties.
Many business owners attempt to manage their own bookkeeping, only to find it overwhelming and time-consuming. A professional bookkeeper streamlines processes, reducing the time spent on manual data entry and financial management.
How a Professional Bookkeeper Helps:
With a professional managing the bookkeeping system, businesses can operate more efficiently and scale with confidence.
A reliable bookkeeping system is essential for any business looking to grow. From cash flow management and financial records to forecasting and compliance, professional bookkeeping supports every stage of business expansion.
At Figureworks Bookkeeping, our team of experienced Xero Advisors ensures your financial data is accurate, organised, and ready to support your business goals. Whether you need help setting up a cash flow system, managing BAS lodgment, or forecasting future growth, we’re here to help.
Let us help you build a strong financial foundation for growth. Contact Figureworks Bookkeeping today to discuss how our bookkeeping system solutions can support your business success.
Cash flow is the lifeblood of any business. Without a well-managed cash flow system, even profitable businesses can struggle to cover day-to-day expenses. Effective cash flow management ensures that businesses have the liquidity to meet obligations, invest in growth, and maintain financial stability. At Figureworks Bookkeeping, we specialise in creating tailored cash flow systems using Xero to help businesses stay on top of their finances. In this guide, we’ll explore why cash flow is crucial, practical strategies for maintaining positive cash flow, and how our Cash Flow Management service can support your business.
Many businesses focus on profitability but overlook cash flow, which determines the actual financial health of a company. Poor cash flow can lead to:
A strong cash flow system allows businesses to plan ahead, make informed decisions, and operate with confidence. Using Xero, businesses can track cash flow in real-time, making it easier to manage inflows and outflows efficiently.
It’s essential to keep a close eye on your business’s cash flow to avoid surprises. Use Xero’s reporting features to generate real-time cash flow statements and forecasts. At Figureworks Bookkeeping, we help businesses set up automated reports to monitor trends and identify potential issues early.
Late payments can significantly disrupt cash flow. Ensure your invoicing process is streamlined by:
Review expenses regularly and eliminate unnecessary spending. Categorizing expenses in Xero helps businesses track where their money is going and identify areas where costs can be cut without impacting operations.
A strong cash flow management strategy includes forecasting future income and expenses. Forecasting helps businesses prepare for seasonal fluctuations, unexpected costs, and investment opportunities. Figureworks Bookkeeping provides detailed cash flow forecasting reports to ensure businesses are prepared weeks and months in advance.
Having a cash reserve acts as a financial cushion during slow periods or unexpected downturns. Setting aside a portion of profits each month into a reserve account can provide security and stability.
At Figureworks Bookkeeping, we understand that every business has unique financial needs. Our Cash Flow Management service is designed to provide businesses with a tailored cash flow system that ensures stability and growth. Here’s how we help:
We assess your business’s financial data in Xero and develop a cash flow system that suits your operations. This includes setting up efficient invoicing, expense tracking, and reporting tools to give you better control over your finances.
We provide detailed cash flow forecasting reports that help businesses prepare for upcoming expenses, seasonal trends, and revenue fluctuations. By staying ahead of potential cash flow issues, businesses can make smarter financial decisions and avoid financial stress.
Unlike a one-time setup, our service includes recurring reports to help you stay on track with your cash flow goals. These reports highlight key financial trends, helping you understand your cash position and make informed decisions about future investments and expenditures.
A professionally managed cash flow system not only helps businesses stay financially healthy but also reduces bookkeeping and accounting costs. With a structured approach to cash flow management, businesses spend less time fixing errors and dealing with financial stress, leading to lower accounting fees and improved financial efficiency.
If cash flow management has been a challenge for your business, Figureworks Bookkeeping is here to help. Our team of Xero Advisors specializes in creating and maintaining cash flow systems that keep businesses financially stable and prepared for the future.
Contact us today to learn how our Cash Flow Management service can support your business and help you achieve financial success!
It’s a common question business owners ask: “Why should I hire a bookkeeper when I can manage the books myself?” At first glance, handling your own bookkeeping might seem like a smart way to save money, but the reality is often quite different. While DIY bookkeeping may offer short-term savings, it can lead to significant long-term costs if errors are made in tax allocation, transaction categorization, and reconciliation.
Many business owners underestimate the complexity of accurate bookkeeping. Managing daily transactions, payroll, taxes, and reconciliations might seem manageable when your business is small, but as it grows, so do the demands on your time and the potential for errors.
Incorrectly allocated tax rates or misclassified transactions can result in costly mistakes. For example, an incorrectly allocated GST or income tax item can lead to underpayment or overpayment of taxes, triggering penalties and interest charges. When the time comes to lodge your BAS or complete end-of-year reports, these errors often surface, leaving you with a significant administrative and financial burden.
Professional bookkeepers, like those at Figureworks, are experts in their field. They understand tax laws, accounting standards, and how to accurately reconcile your accounts. Their expertise ensures that every transaction is correctly recorded, every deduction is maximized, and every financial statement is accurate. This precision not only saves you time but also avoids the risk of costly mistakes.
Another significant benefit of working with a professional bookkeeper is having access to clear and accurate reports tailored to your business needs. At Figureworks, we create a custom chart of accounts unique to your business. This allows us to generate detailed reports showing exactly where your money is coming from and where it’s going, giving you full control over your financials.
These reports are not just about compliance—they’re tools for growth. With accurate data at your fingertips, you can make better financial decisions, optimize spending, and identify opportunities for expansion. A clear understanding of your business’s financial health gives you the confidence to take it to the next level.
When you partner with Figureworks, you’re not just hiring a bookkeeper—you’re gaining a team of professionals who are here to support your business in the capacity that suits you and your budget. Whether you need full-service bookkeeping or specific assistance with payroll or BAS lodgment, we tailor our services to meet your needs.
One of the key benefits is that we grow with you. As your business expands, so too does our support. You’ll receive high-level service without overstretching your budget, ensuring that your financial health is always our top priority.
Hiring a bookkeeper allows you to focus on what you do best: running your business. Instead of worrying about whether you’ve coded a transaction correctly or allocated the right tax rate, you can trust your financials are in good hands.
With Figureworks by your side, you can confidently manage the most important part of your business—its financial health and viability—knowing we are here to help you thrive.
A well-maintained Xero file is essential for accurate financial reporting, tax compliance, and smooth business operations. However, errors in your financial filing can lead to costly financial mistakes. At Figureworks Bookkeeping, our team of expert Xero Advisors specializes in financial correction, ensuring that your records are accurate and reliable. In this blog, we’ll walk you through the five most common signs that your Xero file needs fixing and how to address them.
One of the most frequent errors in Xero files is the misclassification of GST codes. If transactions are allocated to the wrong tax code, you may end up overpaying or underpaying GST, leading to compliance issues with the ATO.
Common Mistakes:
How to Fix It:
Duplicate transactions distort financial data and can result in incorrect financial reports, affecting cash flow projections and tax calculations.
How to Fix It:
Bank reconciliations are crucial for ensuring that your Xero records match your actual bank transactions. Unreconciled transactions may indicate missing or incorrectly recorded data.
How to Fix It:
A poorly structured or inconsistently used chart of accounts can create confusion in financial reporting and make tax time a nightmare.
How to Fix It:
Without accurate financial reports, you won’t have a clear picture of your business’s financial health. Many businesses fail to generate key reports, such as Profit and Loss statements or Balance Sheets, leading to poor decision-making.
How to Fix It:
If your Xero file contains any of these errors, it’s time for a professional review. As certified Xero Advisors, Figureworks Bookkeeping specializes in financial correction and ongoing financial filing support. Our expert team will review your records, identify discrepancies, and implement solutions to ensure your bookkeeping is accurate, compliant, and efficient.
Don’t let bookkeeping errors hold your business back. Reach out to Figureworks Bookkeeping for expert Xero file fixing and corrections, and let us keep your financial records in top shape. Get in touch today to see how we can help streamline your bookkeeping process!
A well-structured bookkeeping system is essential for business success. Without proper financial filing and organization, businesses can quickly fall into chaos, leading to costly errors, missed tax obligations, and unnecessary stress. At Figureworks Bookkeeping, we specialize in setting up efficient and effective bookkeeping systems using Xero, ensuring accuracy, compliance, and financial stability.
Many business owners attempt to handle their own bookkeeping, assuming it will save them money. However, without the right expertise, this often leads to disorganized financial filing, misclassified transactions, and reconciliation errors. These mistakes result in financial correction work down the line, increasing bookkeeping and accounting fees.
By setting up a professional bookkeeping system, you:
The foundation of a great bookkeeping system starts with the right software. At Figureworks Bookkeeping, we use Xero because it provides real-time financial tracking, automated invoicing, and seamless integration with other business tools. As Xero Certified Advisors, we ensure that your Xero setup is optimized for your business.
Financial filing is the backbone of bookkeeping. Without proper filing, businesses struggle with missing documents and inconsistent record-keeping. We establish clear, organized filing systems for:
A well-structured chart of accounts is critical to accurate financial tracking. We customize your Xero file to reflect your business operations, ensuring that every transaction is properly categorized for streamlined reporting.
One of the major benefits of Xero is its ability to automate bank feeds, ensuring that transactions are imported directly into your system. This minimizes manual data entry and reduces the risk of human error, making financial correction less frequent.
Regular reconciliation is essential to ensure accuracy. We implement a routine reconciliation schedule, checking that your bank statements match the transactions recorded in Xero. This step prevents discrepancies and ensures financial reports are always up to date.
Even with the best systems in place, errors can still occur. That’s why we create financial correction protocols to quickly identify and resolve issues such as:
By having these protocols in place, your financial filing remains accurate, and compliance is maintained.
At Figureworks Bookkeeping, we don’t just set up your bookkeeping system and walk away. We provide training so you and your team understand how to maintain your Xero file effectively. Additionally, we offer ongoing support to assist with financial correction, reporting, and optimization.
Many business owners overlook the long-term savings of a well-organized bookkeeping system. By investing in professional financial filing and bookkeeping setup, you benefit from: dui nec tortor rhoncus, in scelerisque libero ullamcorper. Phasellus nec urna eu lectus placerat pellentesque in quis nisl. Duis ut mollis elit, non mollis est. Quisque lorem sem, lobortis ac arcu sit amet, viverra pulvinar dolor. Quisque interdum nunc at sapien vehicula, sit amet fringilla quam lobortis.
At Figureworks Bookkeeping, we specialize in creating customized bookkeeping systems using Xero. From financial filing to financial correction, we ensure that your records are accurate, organized, and compliant. If you’re ready to take control of your business finances, contact us today to get started!
By implementing a structured bookkeeping system, you’re not just keeping track of numbers—you’re setting up your business for long-term financial success.
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Figureworks Bookkeeping is a trusted provider of professional bookkeeping services, proudly helping Australian small and medium-sized businesses since 1996. As Xero Certified Advisors, we specialize in tailored bookkeeping services, including BAS & IAS lodgment, payroll management, cash flow strategies, and comprehensive outsourced bookkeeping. Our team is dedicated to accuracy, efficiency, and personalized support—partner with us to keep your finances clear, compliant, and organized.
