by Roann Castro | Dec 2, 2024 | Bookkeeping, Business
Whether you’re an individual managing your personal finances or a business owner keeping operations running smoothly, good bookkeeping is a must. Staying organised, informed, and proactive with your finances can make all the difference. With updates like MyGov’s MYID feature and advancements in digital tools, here are some practical tips for Australians to get the most out of their bookkeeping services in 2025.
1. Take Advantage of MyGov’s New MYID Feature
The Australian Government has introduced the MYID feature to simplify access to government services, making it easier to stay on top of your financial obligations. For individuals, this means keeping track of tax refunds, Medicare claims, and other key updates. Business owners can use MYID to monitor tax obligations, superannuation updates, and compliance requirements.
Tip: Check your MyGov account weekly to stay informed and pass on relevant updates to your bookkeeper. For more information, visit the official MyGov announcement.
2. Keep Your Records Organised
Timely and accurate record-keeping is essential. Whether you’re tracking personal expenses or managing business finances, having your records in order makes everything easier. For individuals, this means saving receipts and documenting income. Business owners should ensure their bookkeepers receive regular updates, including invoices, payroll records, and bank statements. Staying organised can help avoid surprises and identify opportunities to save.
3. Embrace Cloud-Based Accounting Tools
Cloud accounting platforms like Xero, MYOB, and QuickBooks are game-changers for Australians. These tools allow real-time access to your financial data, making it easier for individuals to monitor their spending and for business owners to collaborate effectively with bookkeepers. Ask your bookkeeper about the best platform for your needs and how to set it up for maximum efficiency.
4. Schedule Regular Financial Check-Ins
Regular communication with your bookkeeper is critical. For individuals, a periodic review of personal finances can highlight opportunities to save or improve budgeting. Business owners should schedule regular meetings to review reports, discuss tax planning, and strategise for the months ahead. These check-ins ensure you’re on top of your finances and ready for any challenges.
5. Leverage Your Bookkeeper’s Business Advisory Expertise
Bookkeepers are more than number-crunchers—they’re valuable advisors. They can offer insights into cash flow, budgeting, and planning to help businesses improve efficiency and profitability. For individuals, they can assist in identifying tax-saving opportunities. Don’t hesitate to seek their advice and use their expertise to make informed decisions.
Why Bookkeeping Matters for Australians
Whether you’re managing a household budget or running a business, effective bookkeeping keeps your finances on track and compliant with regulations. By staying informed with tools like MYID, organising your records, embracing digital solutions, and tapping into your bookkeeper’s expertise, you’ll be set for a successful 2025.
At Lowrys Accountants, we’re committed to helping Australians achieve their financial goals with expert bookkeeping and business advisory services. Let’s work together to make 2025 a standout year for your personal or business finances.
by Roann Castro | Dec 2, 2024 | Business
Artificial Intelligence (AI) is transforming the finance sector, revolutionising traditional practices and unlocking powerful capabilities. At Lowrys, we harness the power of AI to offer advanced financial analysis and reporting services tailored to meet your business needs. Here’s how AI is reshaping the way we approach finance:
AI-Powered Data Analytics
For businesses looking to optimise performance, AI-powered data analytics is a game changer. With the ability to process large volumes of transactional data in real-time, AI tools uncover valuable insights into market trends, customer behaviours, and sales patterns. By working closely with our expert team, we can turn these insights into strategic recommendations, helping you navigate industry-specific challenges with precision.
Predictive Modelling and Forecasting
Accurate forecasting is key to managing financial risks and opportunities. AI-driven predictive modelling at Lowrys analyses historical data, economic indicators, and relevant market factors to offer reliable predictions. Our experts enhance this analysis with their deep understanding of market sentiment, regulatory developments, and macroeconomic factors, ensuring that forecasts are actionable and relevant to your business goals.
Automation of Routine Tasks
Routine administrative tasks can take up significant time and resources in any finance department. At Lowrys, we use AI to automate repetitive processes such as data entry, reconciliation, and report generation. This allows your team to focus on higher-value activities, improving efficiency and outcomes.
Enhanced Risk Management
AI is a powerful tool in risk management. By analysing behavioural patterns, transactional data, and historical trends, AI tools can detect potential fraud and flag suspicious activities. While AI identifies these risks, our experts assess the severity, interpret findings, and develop proactive risk mitigation strategies, ensuring that your business is protected against emerging threats.
Improved Compliance and Regulatory Reporting
Staying compliant with financial regulations is more important than ever. AI-powered compliance tools automate the process of transaction monitoring, data analysis, and reporting. Our experts ensure that all reports generated are accurate, comprehensive, and aligned with regulatory requirements, providing peace of mind and helping your business stay ahead of regulatory changes.
The Role of Human Expertise
While AI offers powerful capabilities, human expertise remains essential. At Lowrys, our professionals bring:
- Contextual Understanding: We provide industry-specific insights and ensure that AI-generated data is contextualised to your business needs.
- Quality Assurance: Our experts validate all AI outputs, ensuring that you receive accurate and actionable information.
- Strategic Decision-Making: We use our judgement to interpret AI findings and develop long-term strategies that align with your goals.
AI is transforming financial analysis and reporting, but the real value comes when it’s combined with human expertise. At Lowrys, we bring together cutting-edge technology and expert insight to deliver personalised financial solutions that drive business success. Reach out today to learn how AI, combined with our expert team, can enhance your financial strategy and reporting capabilities.
Let’s work together to unlock the full potential of your business with AI-powered financial services.
by Roann Castro | Nov 4, 2024 | Business, Superanuation, Wealth Management
Australia’s superannuation system plays a crucial role in the country’s retirement landscape, ensuring people are financially secure in later years. Recent updates, including the introduction of Payday Super, have been implemented to protect retirement savings further, increasing transparency and accountability for both employers and workers.
What is Payday Super?
Payday Super requires employers to make superannuation contributions at the same time as they pay wages. This change is intended to strengthen the super system by ensuring contributions are paid more regularly, reducing the risk of missed or late payments, and helping workers grow their retirement savings.
For employers, this shift brings both opportunities and obligations. With greater scrutiny and reporting requirements, businesses must adapt to stay compliant with these evolving obligations.
How Does Payday Super Benefit Employees?
With Payday Super, employees can track their super contributions in real-time. This transparency lets workers see their super payments align with their pay cycle, giving peace of mind that their retirement savings are on track. It also enables individuals to promptly address any discrepancies with their employer or super fund.
Employer Responsibilities Under Payday Super
Employers need to stay updated on their super payment obligations under the Payday Super requirements, including:
- Timely Super Payments: Super contributions must now be made on the same day as salary or wages are paid.
- Accurate Reporting: Employers must submit accurate super reports to the Australian Tax Office (ATO), ensuring contributions are processed correctly.
- Avoiding Penalties: Late or incorrect payments can result in penalties or interest charges from the ATO, affecting a business’s financial standing.
How Lowrys Accountants Can Help
At Lowrys Accountants, we understand that staying compliant with changing superannuation requirements can be challenging for businesses of any size. Our team of experts is here to streamline your payroll and super processes, ensuring you meet your obligations while reducing the risk of penalties.
- Super Compliance: We help you navigate the superannuation landscape, making sure all payments are made correctly and on time.
- Payroll Integration: Our services integrate seamlessly with your payroll, making super contributions straightforward.
- Business Advisory: We provide tailored advice to help your business stay ahead of legislative changes and make informed decisions about managing super obligations.
Whether you’re a small business or a large organisation, Lowrys Accountants offers the support you need to manage your super responsibilities efficiently. Let us take care of the details so you can focus on growing your business.
by Roann Castro | Nov 4, 2024 | Business, Uncategorized
Fringe Benefits Tax (FBT) can often feel complex and daunting for Australian employers, but understanding it is essential to ensure your business remains compliant and avoids costly penalties. This guide breaks down FBT, explaining how it works and what you need to know for the 2024-25 tax year.
What Is FBT? FBT is a tax paid by employers on certain benefits provided to employees, their families, or associates. These benefits, known as “fringe benefits,” can include anything from company cars to low-rate loans, entertainment, or gym memberships.
Key Changes for 2024-25 The 2024-25 tax year brings some updates to FBT rules that employers should be aware of, including:
- Exemptions for Electric Vehicles (EVs): If your business provides employees with electric vehicles, these may be exempt from FBT, provided the EV meets specific criteria.
- Car Parking Benefits: The threshold for exempt car parking benefits has increased, and it’s crucial to assess how this might impact your FBT obligations.
Common Fringe Benefits Some of the most common types of fringe benefits include:
- Car Benefits: If you provide an employee with a vehicle for private use, FBT applies.
- Loan Benefits: Offering low-rate or interest-free loans to employees is considered a fringe benefit.
- Expense Payments: Paying for employees’ personal expenses, such as school fees or rent, is subject to FBT.
- Entertainment: Providing entertainment, such as meals or tickets to events, can also attract FBT.
Calculating FBT To calculate FBT, you need to determine the taxable value of the benefit provided. This involves considering factors like the employee’s use of the benefit and whether any employee contributions were made.
The FBT rate for the 2024-25 tax year remains at 47%, and the gross-up rate depends on whether the benefit is subject to GST:
- Type 1 Benefits (GST credit available): Gross-up rate is 2.0802.
- Type 2 Benefits (GST credit not available): Gross-up rate is 1.8868.
Recordkeeping and Reporting Accurate recordkeeping is essential to comply with FBT requirements. Employers need to keep documentation that clearly outlines the benefits provided, their value, and any employee contributions. FBT returns are lodged annually, with payment due in May each FBT year.
- FBT calculations and lodgements
- FBT exemption advice
- Minimising FBT liability through tax planning
How Lowrys Can Help FBT compliance can be complex, but at Lowrys, we offer expert guidance to help you navigate these regulations smoothly. Our team can assist with:
Stay ahead of your FBT obligations with Lowrys by your side.
by Roann Castro | Nov 4, 2024 | Business
In today’s dynamic business world, cloud-based bookkeeping has completely transformed how accountants, bookkeepers, and small business owners manage their finances. Here’s how this technology is changing the industry:
1. Accessibility and Flexibility
- Anytime, Anywhere Access: With cloud bookkeeping, you can access your financial data from any device with internet, giving you freedom beyond the office.
- Remote Collaboration: Cloud solutions support seamless teamwork, whether team members are working in the office or remotely, boosting productivity and communication.
2. Cost-Effectiveness
- Lower Infrastructure Costs: Say goodbye to expensive servers or hardware. Cloud bookkeeping services are hosted off-site, cutting down infrastructure costs.
- Subscription Model: Many cloud solutions use a pay-as-you-go model, so you pay only for the features you need—making it a budget-friendly option.
3. Automation and Efficiency
- Automated Data Entry: Cloud bookkeeping software can automatically import bank transactions, saving time and reducing errors from manual data entry.
- Streamlined Processes: Tasks like invoicing and expense tracking are automated, freeing up time for higher-value analysis.
4. Enhanced Security
- Data Encryption: Cloud providers use strong encryption protocols to protect your sensitive information.
- Regular Backups: Automatic backups keep your data safe, reducing the risk of loss from hardware failures or other disasters.
5. Scalability
- Adaptable Solutions: Whether you’re a startup or an established business, cloud bookkeeping can grow with you, meeting your changing needs.
Choosing the Right Cloud Solution When selecting a cloud bookkeeping platform, consider options like QuickBooks Online, Xero, and Wave. Compare their features, pricing, and user reviews to find the best fit for your business. Security Measures: Make sure the provider follows industry security standards and offers solid data protection features.
Cloud-based bookkeeping represents a major shift in managing financial data, offering real-time insights, improved collaboration, and the flexibility needed to thrive in today’s competitive environment. Whether you’re a solo operator or part of a larger team, switching to cloud-based bookkeeping can bring substantial benefits.
Disclaimer: The information provided is for general purposes only. Always consult a certified accountant for tailored advice.
