Networking events allow you to generate new client leads, discuss issues with like-minded business owners and meet potential new suppliers and employees. All things that are an important part of growing a business. However one downfall is that these events can be costly for small businesses! Being able to claim a tax deduction for these cost obviously assists with this financial burden.

Generally speaking, you can claim a tax deduction for any costs that you have incurred which have a direct relationship to earning your business income. https://www.ato.gov.au/business/income-and-deductions-for-business/deductions/

Of course, there are exceptions which include:

entertainment expenses and traffic finesprivate or domestic expensesexpenses relating to earning income that is not assessable, such as money you earn from a hobby

Relevant in the instance of networking events is the Entertainment rules. If the event includes the provision of food or drink there is a chance that this may be considered "entertainment" for the purposes of the tax law. Entertainment expenses are non deductible. TR 97/17 provides some guidance on how to determine if a specific cost is "entertainment" for the purposes of these laws. The ruling outlines 4 questions that should be answered:

If there is a genuine belief that attending an event is for the purposes of business growth and development or new client generation and any food or drink provided is incidental, there is a reasonable basis for arguing that the provision of food and drink is not entertainment. If this is the case, the costs of the event should be deductible to the business.

If you are unsure about how this applies to your specific circumstances or events, be sure to query this with your accountant!

This post is not advice. You should not act on the basis on this information alone. Please seek professional advice directly if required.

So...What is a Bookkeeper?

Bookkeepers assist businesses in preparing and recording everyday transactions such as payroll, invoices and bills. They provide timely information to the business owners by preparing management reports and financial statements. Bookkeepers can also be responsible for liaising with the ATO and ATO lodgements including Business Activity Statements (BAS), Instalment Activity Statements (IAS) and Annual Payment Summary Reports. If performing any BAS services it is essential that the Bookkeeper is registered with the Tax Practitioners Board.

If you would like to check a bookkeepers registration, you can do so here: https://www.tpb.gov.au/registrations_search

Some of the tasks of a traditional bookkeeper include:

Recording and coding transactions in an accounting software (eg Xero)Prepare bank reconciliationsEntering accounts payable invoices Payment of accounts payable invoicesPreparing and sending sales invoices to customersProcessing payroll and maintaining employee records including super and withholding taxesPreparation and lodgement of ATO forms such as IAS and BAS

A value add bookkeeper will also provide some additional services including:

Balance sheet reconciliations for other accounts such as Hire Purchases and Fixed AssetsManagement reports and analyticsJob tracking and profitabilityImplementing and streamlining processes to enhance efficiencyEvaluating, suggesting and implementing apps that bring value to the businessCash flow forecasting and budgeting

Bookkeepers can be employed by the business as an internal employee or as a external consultant or adviser to the business. With today's technology, for most small businesses there is no reason to have an internal bookkeeper. All good accounting software is online and use of cloud business apps the bookkeeper is able to access and process data from anywhere.

Some other benefits of an external bookkeeper compared to an internal bookkeeper are:

If you would like to discuss what a bookkeeper can do for your business, please contact us as Abacus Bookkeeping Group!

At Abacus, we are always looking for ways to create efficencies. The majority of the time we recommend that our clients implement Receipt Bank to assist with processing invoices and receipts.

So, how does it work?! Invoices and receipts are submitted to the software via a phone app, email, Post, dropbox or drag and drop upload. The software reads the data on the invoice and sends that data to Xero to be reconciled with your bank account or be set for payment.

The things we love most:

Less risk of data entry errors with the software reading the dates, invoice totals and GST directly from the invoiceA copy of the invoice is saved in Xero as part of the integration meaning if we ever have any questions about transactions the documents are readily availableThe phone app! Take a photo of your receipts straight away and avoid misplaced invoicesSupplier rules enable default coding so expenses all go to the right spotsAuto publish any standard receipts will mean the invoice will appear in Xero without needing to do any processing

As a Partner of Receipt Bank our clients have access to a free Onboarding Service which includes:

Comprehensive training on how to submit receipts & invoices using different submission methods.Mobile Onboarding through SMS invitation.Personalised reminders to submit your receipts & invoices. (based on previous submission behaviour)

If you would like to get started using Receipt Bank, or have Receipt Bank and need help, training or just want to ask a question please contact us.

If your office is closing down and/or any staff are taking leave over the Holiday Season here are a few resources and tips that may assist:

Some employees are entitled to Annual Leave Loading when taking annual leave, this means they are paid a percentage over their ordinary rate. Refer to the employment contract and/or the award rules for your employee to determine if this is applicible.If your employee has not accumulated enough leave to cover the full office closure dates, you can provide leave without pay or allow your employee to take more leave than they have available. If paying the employee for unaccrued leave, keep in mind that the employee will need to accrue this leave in the future. If they leave prior to accumulating enough leave a deduction from their final pay would be required.

We will be working through the holiday season, but for most clients where the office is closing, we will be providing payroll calculations for the closure period in advance. This means our clients can pre-set all payments and they do not need to worry about paying employees during the break!

Please be sure to speak to your Bookkeeper or Accountant regarding the best process for you business over this Holiday season!

Did you know you may be elegible for the NSW Small Busness Grant to receive $2,000 in funding? If you have created a new position within your business and maintain that new position over a 12 month period you may be eligible to receive the small business grant.

"A business will receive the grant if all the following employment conditions are met:

- A person is employed in a position that is a new job.

- The employment commences on or after 1 July 2015 and before 1 July 2019.

- The employment is maintained for a period of 12 months.

- Your number of full-time equivalent (FTE) employees, prior to creating a new position must increase and be maintained over a 12 month period.

- The services of the employee are performed wholly or mainly in NSW.

To find out more and apply for the grant, visit http://www.revenue.nsw.gov.au/grants/sbg

Our practice is focused on cloud accounting; specifically Xero . We are a Silver Partner and Certified Advisor you can find us in the Advisor Directory here: https://www.xero.com/au/advisors/accountant/2017/abacus-bookkeeping-group/.

Whilst we have experience in most accounting software packages we have chosen to soley focus on the use of Xero for our clients. If you are curious about what benefits Xero can deliver for your business please contact us!

Some of the main benefits we believe cloud accounting provides includes:

* access to your accounts any time from any device * multiuser access at any time * no need to manage various versions of a file and ensure you are working from the correct file * no upgrades required * no more rolling over files meaning that you are able to see all history in one place Why have we choosen Xero? * user friendly interface * bank feeds direct from your bank * phone and tablet app for easy bank recs and generating invoices * invoice clients on the go and accept payments directly from the invoice * staff can enter timesheets, access their payroll records, apply for leave via mypayroll * so many fantastic integrations available ensuring you can get acess to more complex functionality as required Need a bookkeeper to help manage your Xero file? Or have you decided to make the plunge and convert to Xero? Need assistance with anything Xero, please contact us!

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