What if your fun and passionate hobby leads to a paid job and you’re asked to provide an invoice so you can be paid? You then have to trawl the ATO website (not a fun experience!) and you realise you need to get an ABN to whack on that invoice otherwise the person paying you […]

Knowing the distinction between a business and a hobby is important and getting it wrong may wake even the sleepiest giants at the ATO. Whether you’re just trying to earn a little money on the side, diversify your income stream or turn your side hustle into a full-time fixture, make sure you know how to […]

Have you thought about offering your staff the option to salary sacrifice? Salary sacrifice, or salary packaging, is a voluntary arrangement between you and your employee which allows the employee to pay for some items or services straight from their pre-tax salary, such as motor vehicles, laptops, tablets and superannuation. This means your employee pays […]

The word ‘tax’ strikes fear in most people’s hearts – it is complex and constantly changing.  But the chance of a tax audit is far greater now than at any time in the past – so understanding even just the basics is important. Businesses in the health and well-being sector who carefully plan their taxation […]

A profit and loss statement is a summary of the financial performance of a business over a period of time – this could be monthly, quarterly, or annually. It reflects your business’s past performance and can help you track how your business is performing. It can highlight where your business is succeeding and where it […]

A cash flow statement shows how much cash is moving in and out of your business over a certain period of time. It reflects your business’s liquidity. Having the available cash to pay your debts and buy materials and assets are an important part of planning your business. The most crucial number of your cash […]

These are the financial obligations that your business is required to pay. In simpler terms, this is what you owe external parties or businesses. For example if you acquired a bank loan for your business, what you owe your bank is a liability. Current Liabilities – These are the things you expect to pay within […]

This is what your company owns. Assets include the resources and capital that you have acquired through transactions and that have future economic value. For example, if you own a massage business examples of an asset would be the massage table you use. This table helps you provide the product/service you sell, and can be […]

A balance sheet is a good way to see the big picture of your business’s financial health. It shows a summary of your business’s financial position at a particular point in time. By understanding the numbers in a balance sheet you will be able to identify the strengths and capabilities of your business. The balance […]

Accounting provides data which is used as a way of understanding or visualising the effects of business activities. By understanding and using the numbers you get through correct bookkeeping and accounting, you will be able to make decisions about which activities you should involve yourself in more to get the results you desire. The trouble […]