BUSINESS HOW GOOD IS YOUR RECORD KEEPING? Managing a business so that it is profitable and sustainable is a challenge at the best of times, but this year has upped the ante. For many small businesses, this emphasises the importance of good business practice, which includes paying attention to record keeping. Good record keeping helps you keep track of • the money you have made • the money you have spent • your cash flow position. It also helps provide a snapshot of your current situation to help with your business decisions and planning, which is why it is important to do it properly. Consider your record keeping practices, do you: • keep records electronically and make a backup so they do not fade or get lost, and keep them for five years • reconcile sales regularly to help you identify problems early, such as administration errors • remember to account for stock taken for personal use • only use your business account to pay for business expenses, so you do not need to sort through and separate your business and personal expenses all the time • keep complete and accurate records as you go along, instead of leaving it until later? Good record keeping practices will make it easier for you, and your registered agent if you use one, when it is time to lodge. If you are having difficulty with your cash flow, you can prepare a cash flow projection to help you plan and manage. You can also talk to a registered tax professional who can work through our cash flow coaching kit with you.
Find out more • Try the ATO's record keeping evaluation tool • Talk to a registered tax professional to find out more about the ATO’s cash flow coaching kit
Source. Australian Taxation Office website
Government announces turnover test for JobKeeper The government announced in August that it will wind back the eligibility criteria for the JobKeeper Payment scheme for the extended period from 28 September 2020 to 28 March 2021. The latest announcement is a result of the economic impact the Victorian lockdown will have on the national economy and will ensure that more businesses and employees are eligible to receive JobKeeper payments.
Turnover tests • For the first extension period to 3 January 2021, businesses and not-for-profits will be required to demonstrate that their actual GST turnover has significantly fallen (using the relevant existing decline in turnover tests) in the September 2020 quarter only relative to the corresponding quarter in 2019. • For the second extension period to 28 March 2021, businesses and not-for-profits will be required to demonstrate that their actual GST turnover has significantly fallen (using the relevant existing decline in turnover tests) in the December 2020 quarter only relative to the corresponding quarter in 2019. Information. For information about JobKeeper, go to The Treasury website
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