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Common business superannuation mistakes

Wednesday, September 20, 2017 - by Max Business

Superannuation requirements are a tricky subject and something that many businesses get wrong. Put yourself in front of the pack by ensuring your methods are up-to-date and meet all the legal requirements.

Are you making these common superannuation mistakes?

Failing to provide super fund choice

If you’re not giving your employees access to nominate their own chosen superannuation fund then you are breaking the law.

While it's very convenient to have all your staff signed up with your employer-nominated fund, you still must offer all your employees a choice of superannuation fund and provide their TFNs to their chosen fund if they decide to choose their own.

If you don’t, you’re in danger of enormous penalties that will really harm your business.

Not budgeting for superannuation

If you aren’t currently budgeting for superannuation, you need to start now.

Setting aside money in your budget for superannuation payments is planning for success and increases the legitimacy of your company.

Consider all the legal and financial ramifications of not budgeting for superannuation. The picture is not pretty. The consequences can be colossal..

How will a bookkeeper help?

Budgeting for super means you need to have an expert knowledge of superannuation law, and the current ATO rules. And it’s common knowledge that these laws are constantly changing, ranging from small tweaks to large-scale changes with every passing federal budget. Instead of having to keep up yourself, a bookkeeper comes with that knowledge on hand.

At Maximum Business Solutions, we ensure that all our clients are well covered when it comes to correct superannuation practices. There really isn’t a better way to ensure your practices are up to today’s standards than by connecting with a bookkeeping team.

Missing quarterly deadlines

You can pay your employees superannuation monthly or quarterly, but the Australian super system is fundamentally based on a quarterly system.

As an employer you need to be aware of the quarterly superannuation deadlines (the 28th of the quarter’s final month), and be able to show the ATO that you’ve met your quarterly superannuation payment requirements. If you miss the deadlines you’ll be hit by the superannuation guarantee charge.

Businesses that leave paying superannuation to the last minute often land in strife.

Keep in mind that if you’re paying your employee’s superannuation by EFTPOS or BPAY that there may a delay in the transaction so you want to make sure you make the payments with plenty of time for it to go through.

Be really careful when it comes to paying super...

Businesses can easily get years behind on their superannuation, and hope on the ignorance of their employees that they can get away with it.

While it's true that superannuation isn’t something many Australians pay much attention to, all it takes is for one employee to notice that you aren’t meeting your superannuation obligations and you can find yourself in enormous trouble.

Not only will you be made to pay exorbitant penalties, but you’ll have to pay back all that superannuation that you’ve missed. It’s a mistake that can essentially end a business.

Neglecting to track superannuation payments

You must have evidence to show you’ve met your superannuation requirements.

If you’re making superannuation payments to your employees as you go, it’s important that you track these payments and keep a record of them. Many business owners neglect this and land in trouble come end of financial year.

Also make sure, and this goes with all your financial files, that you backup your records in a secure location. Using a cloud-based bookkeeping software like MYOB or Xero is a great way to keep important business data protected.

Find a bookkeeper who will help you manage super payments

A bookkeeper keeps you on track and ensures you meet all the various deadlines, including superannuation. Want to learn more? Organise your first consultation with the Maximum Business Solutions team!

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Small business bookkeeping mistakes [Part 2]

Wednesday, September 13, 2017 - by Max Business

The end of financial year may have come and gone, but that is no excuse to slack off dwindle on your bookkeeping duties!

In fact, as this is the start of a new financial year you should be motivated to start off the (financial) year on the right foot.

We have been in this business a long time, so we’ve collected some of the most common and most alarming financial mistakes we see small businesses making.

Not filing receipts

Not filing receipts is a classic rookie error. It’s very important to ensure you’re tracking every payment your business makes throughout each financial year.

There are now so many apps that enable quick and easy filing of receipts. By snapping a photo using your smartphone you can instantly convert a paper receipt into a digital one, and store it within the app.

So many businesses fall behind when it comes to tracking this information: they put it off, let it pile up and before they know it they’re in a mess come tax time, scurrying to play catch-ups.

Don’t be one of these businesses. Start today and stay organised.   

Not making deadlines (and not sticking to them)

Deadlines are critical for every aspect of every business.

Financial reporting and bookkeeping is no different and it's paramount that you set realistic, achievable deadlines for your financial goals and responsibilities - and stick to them.

Being on top of your businesses financial obligations and fulfilling them in a responsible and timely manner is by far and above the best way to manage your business. Missing deadlines is a bad financial habit you should break. And those late penalty fees sting.

Not getting the right basic bookkeeping training

No matter what task we have to do, it's obvious that we’ll do it better when we know how to actually do it!

That’s the whole purpose of education and training, after all, to equip you for those tasks you are inexperienced in and are unsure how to handle.

Instead of second guessing yourself or “winging it”, take the responsible approach and train yourself and your staff in the correct procedures of how to perform your bookkeeping tasks correctly and accurately.

Outsource your bookkeeping to Maximum Business Solutions

If your business is quite small and you don’t have the staff or resources to handle your books accurately then outsource your bookkeeping to us today. We have a wealth of experience and knowledge at completing bookkeeping for small businesses.

Working seamlessly within your business, we can either:

  • Provide MYOB and Xero training that enables you and your staff to manage your own bookkeeping in the future

  • Manage your business’s entire bookkeeping needs on an ongoing basis

Not planning for the future – or learning from the past

A business that does not plan for the future will not succeed.

It is important to always be setting achievable goals that push your business to constantly be performing at its best.

If you set impossible (or non-specific) goals, you will never be able to accomplish them. Not setting any goals is just as bad. To succeed in business you must have a clear idea what direction you want for your business, and it is the same with your business’ finances. Your business will only improve financially if you plan for it to improve and how you plan to improve it.

Book a bookkeeper in Melbourne

Hiring a bookkeeper to take on the responsibilities of your finances and bookkeeping tasks will make your business more profitable and successful.

It is by far the best way to minimise the risks of making those common bookkeeping errors that could cost your business hundreds or thousands. If you’re searching for a reliable bookkeeper in Melbourne to help your business reach financial clarity, you can’t go past the team at Maximum Business Solutions. Call us today or organise a consultation!

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Small business bookkeeping mistakes [Part 1]

Wednesday, September 06, 2017 - by Max Business
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4 bad financial habits that impact your business

Friday, September 01, 2017 - by Max Business

The end of financial year may have come and gone, but that is no excuse to slack off dwindle on your bookkeeping duties! Read more

Bookkeeping tips: how to manage your payroll

Wednesday, August 30, 2017 - by Max Business

Do you want to update and refine your payroll system? Here are # tips that are sure to help! Read more

Questions to ask a prospective bookkeeper

Tuesday, August 29, 2017 - by Max Business

Deciding to outsource your bookkeeping tasks to a qualified team is a smart business decision, especially for small to medium-sized business owners with little experience in financial reporting or bookkeeping. Read more

Why choose an MYOB partner?

Wednesday, July 26, 2017 - by Max Business

Maximum Business Solutions is a leading bookkeeper based in Beaumaris, partnered with a number of prime bookkeeping software. One such is global leader MYOB, software that takes the pain out of small business bookkeeping.  Read more

How to choose the right bookkeeper for your business

Wednesday, July 19, 2017 - by Max Business

Beginning to search for a bookkeeper may seem like a daunting task, and you might struggle to begin. Read more

6 signs you urgently need a new bookkeeper

Tuesday, July 18, 2017 - by Max Business

Bookkeeping is an essential task to managing your business well and it’s vitally important to know that it’s being done right. Choosing the very best team to manage your books is one of the most important decisions you can make for your business.  Read more

A brief history of bookkeeping

Friday, July 14, 2017 - by Max Business

The bookkeeping practices and software we use today for our businesses has become so important and commonplace. Read more