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Financial reporting is a regular record of the financial activities of a business, person, or other entity. Relevant financial information is presented in a structured manner and in a form easy to understand, including related notes. Objectives of Financials Reporting: ·          Financial Reporting allows users to make and evaluate decisions about allocating scarce resources. ·          Financial Reporting is relevant to assessing performance, financial position, financing and investment. ·          Financial Reporting is relevant and reliable. ·          Financial Reporting facilitates comparability. ·          Financial Reporting is easily understandable. ·          Accounting standards should facilitate the Australian economy by...

Book keeping is the recording, on a day-to-day basis, of the financial transactions and information pertaining to a business. Purpose of Book Keeping : ·          Book keeping ensures that records of the individual financial transactions are correct, up-to-date and comprehensive. Accuracy is therefore vital to the process. ·          Book keeping provides the information from which accounts are prepared. It is a distinct process that occurs within the broader scope of accounting. ·          Bookkeeping  is responsible for the recording of financial transactions. ·          Bookkeeping can become your best system for managing your financial assets and testing your business strategies. ·          Bookkeeping is usually performed by a bookkeeper. A bookkeeper is a person wh...

Tax Return is a tax form on which a taxpayer makes an annual statement of income and personal circumstances, used by the tax authorities to assess liability for tax. Tax Planning is right to arrange your financial affairs to keep your tax to a minimum – this is often referred to as tax planning, or tax-effective investing. Tax planning is lawful when you do it within the letter and the spirit of the law. However, some arrangements attract our attention to determine whether or not they are lawful. Involvement in a tax avoidance scheme can risk your original investment. You might also have to pay back any missing tax – with interest – and penalties. Taxpayers who tell us about their involvement before we start to investigate could be eligible for a reduction in penalties. Why Every Person Needs Tax Planning ? Tax Planning is resorted to maximize the cash inflow and minimize the cash outflow. Since Tax is kind of cast, the reduction of cost shall increase the profitability. Eve...

Superannuation refers that money saved during your working life to help support your financial needs when you retire. Generally you begin accumulating super when you start work as your employer will start making contributions to a fund on your behalf. Benefits of Superannuation : ·          The Age Pension: The Age Pension is a state-funded initiative to support our elderly, and comes out of general revenue supplied by the taxpayer. More people who require funding from the government, the less the economy could have to support other areas of the economy such as infrastructure, healthcare and business incentives. ·          Superannuation impacts on the business and investment: Superannuation’s large pool of stable and unleveraged superannuation assets contributes to financial stability by adding depth and liquidity to financial markets. The national Australian savings rate is up, and those savings...

Goods and Service Tax:   It is a broad-based consumption tax as it applies to all sorts of goods and services that are consumed by the general public. It is ultimately paid by consumers who are the end users of goods and services.   Fuel Tax Credit: Fuel Tax credit is a federal refundable tax credit for taxes paid on fuel purchased for off road use.  Fringe Benefit Tax: It is levied on the employer who has provided or deemed fringe benefits to his employees during the previous year. Fringe benefits  include: ·          Medical and dental insurance ·          Use of a company car ·          Housing allowance ·          Educational assistance ·          Vacation pay ·          Sick pay ·  ...

Book keeping is the process of recording, analysing and interpreting the financial transactions of a business. Features of Outsourced Book keeping services : Billing for goods sold or services. Recording receipts from customers. Verifying and recording invoices from suppliers. Paying suppliers. Processing employees' pay and the related governmental reports. Monitoring individual accounts receivable. Recording depreciation and other adjusting entries. Providing financial reports. Importance of Book Keeping: ·          Better financial analysis and management:   Cash flow is vital for every business and it is important to make sure it is being managed correctly. Book keeping can systemise these transactions and keep everything up-to-date, including invoices and payments. ·          Fulfillment of Tax Obligations: Book keeping...

When you want to start up your own business, then it is necessary to apply licenses of your own business. Without license, a business cannot run successfully. Australian Company Number : ACN must be on all public documents and eligible negotiable instruments. The items on which it should appear include: Statements of account, including invoices Orders for goods and services Business letterheads Official company notices Cheques, promissory notes and bills of exchange, and Written advertisements making a specific offer. Australian Business Number: If you apply for an ABN and you're not entitled, your application may be refused. You'll be sent a letter explaining why. Confirm your business identity to others when ordering and invoicing Avoid Pay as You Go (PAYG) tax on payments you receive Claim Goods and Services Tax (GST) credits Claim energy grants credits PAYG withholding registration: PAYG withholding is...

Australian Accounting Standards are set by the Australian Accounting Standards Board (AASB), an independent Australian Government agency. The standards are legislative requirements for corporations. They must also be applied to all other general purpose financial reports of public and private sector reporting entities. The Australian Accounting Standards meet the requirements of the International Financial Reporting Standards (IFRS). Whilst much of the standard-setting is the responsibility of the International Accounting Standards Board (IASB), the AASB maintains standard-setting power over matters specifically relating to Australia. If you are running your business as an unincorporated entity – such as a sole proprietor, a partnership, or as a family trust – these accounts will not need to be lodged with a third party regulator in Australia, but they will form the basis of the tax return which is submitted to the Australian Taxation Office. It includes following features : ...