Calm & Collected Bookkeeping

10/06/2024

The Social Enterprise Development Initiative (SEDI) is now offering capability-building grants worth up to $120,000 each. These grants aim to assist eligible social enterprises in enhancing and expanding their social impact. Funds can be used to acquire business and impact capability-building services, including financial services, evaluation and impact measurement, business consulting, and legal advice.

Grant eligibility
Eligible SEDI Grant applicants:
Are a social enterprise (*see definition below) or a trading Indigenous owned or controlled organisation with a defined social benefit
Have an impact in one or more of the approved Department of Social Services outcome areas
Currently provide benefit to those experiencing entrenched disadvantage in Australia
Are an Australian organisation
Have beneficiaries who primarily reside in Australia
Have a turnover of at least $50,000 per year
May be early stage but have progressed beyond the start-up phase
Are seeking to scale impact (now or in the future) in one or more of the approved outcome areas to address entrenched disadvantage in Australia.
*A social enterprise is a business that puts people and planet first. It trades like any other business, but exists specifically to make the world a better place. A social enterprise seeks to solve a social or environmental problem. It can be a for-profit or non-profit organisation, or a charity that trades.

Grant process
Organisations that believe they qualify for a SEDI Grant should submit an Expression of Interest. The grants’ administrator, Impact Investing Australia (IIA), will then arrange a phone conversation to discuss grant eligibility and the selection process. Organisations meeting the eligibility criteria will be invited to submit a grant application, which will be assessed by an expert panel.

Grant timeframe
The SEDI Grants program will run through to June 2026. There will be rolling grant rounds, ensuring ample time for submissions. Grants will be awarded based on the merit of the enterprises/projects, not on the order of application.

SEDI is funded by the Australian Government Department of Social Services. The administrator for the SEDI Grants is Impact Investing Australia. Full details on SEDI Grants and the grant application process are available here:

Social Enterprise Development Initiative (SEDI) Grants help social enterprises, including trading Indigenous owned or controlled organisations with a defined social benefit, grow their business, scale their impact and further their missions of creating positive social change.

31/01/2024

The 3 pillars of sustainability are People, Planet & Profit, and even though we have known this for years (I was taught this priciple in uni 20yrs ago!), many business owners still hold profit above all else. But I know (and I work with many other businesses who know) that you don’t not have to sacrifice our communities (people) and a healthy environment (planet) to enjoy enough profit to sustain ourselves, our families and beyond. ✨

23/05/2021

We all l❤ve our suppliers and want to support creative local (friend's) businesses, but in order to claim a purchase as a business expense they must supply you with either a receipt or invoice 🧾 with their ABN on it, or a 'Statement By Supplier' declaring that they are operating as a hobby.

If you don't get either of these things then you have 2 choices:
👉 treat the purchase as a personal expense, or
👉 withhold 47% of the total payment and send it to the ATO!!

Ain't nobody got time for that 🤦‍♀️, so if you're counting on making a purchase for business, check that your suppliers are legit by asking for an invoice and looking them up on the ABN lookup 👩‍💻 at www.abr.business.gov.au

11/05/2021

Main Causes of Stress for Business Owners & How to Counter Them

Many entrepreneurs wrestle with stress and anxiety, worrying that they are not ‘good at business’, cannot afford to pay themselves a wage and will have to face defeat and go back to employment. They often don't have the close understanding of technology and accounting knowledge and how this can create huge efficiencies to their business, and ultimately create the abundance and freedom they crave. Being stressed is the fastest way to erode your passion for providing your gift, as well as taking a toll on your health and wellbeing.

But don’t despair! There are some simple and practical tips for avoiding the main causes of “business burn-out.”
https://calmcollected.com.au/main-causes-of-stress-for-business-owners-how-to-counter-them/

27/04/2021

If you’ve just started working with Quickbooks Online (QBO), it is normal to make a few mistakes while you’re learning. We see mistakes that are quite common – and unfortunately costly – so you should be aware of them if you want to get the most out of Quickbooks’s powerful cloud accounting system.

1. Not connecting all the bank and credit card accounts dedicated for your business

Make sure that you keep all your business bank and credit card accounts synced to Quickbooks to ensure that you don’t miss any sales or expenses in your reports.

Even more importantly, make sure that you separate your business accounts with your personal ones.. Trust us…your accountant and bookkeeper will thank you! Doing this also helps you make accurate business decisions.

2. Not reconciling the bank account in Quickbooks to bank statements

Run a reconciliation report in Quickbooks on a regular basis and then compare it to your bank statements to ensure there aren’t any errors or duplications.

Many business owners miss this critical step, which means that they are looking at inaccurate or incomplete data when they check their reports.

3. Not checking user access and permission levels

Many business owners simply give key team members full access to their business’ Quickbooks system and don’t review the user permissions at all.

However, the best practice is to provide access on an “as needed” basis and review who has access to the system and what permission level they have on a quarterly basis.

Also, when your staff members leave, remember to revoke their Quickbooks access immediately.

4. Not setting financial SOPs (standard operating procedures)

Create a proper financial SOP which describes who is responsible for what and by when, as well as the step-by-step process on how to get things done.

For instance, you can assign your operations manager to run the aged receivables report in the system so you’ll know who owes your business money. Then, map out a clear action plan of what happens in specific scenarios such as a payment that’s 2 weeks late. You can also have standard replies that the team can send as needed.

5. Mishandling transactions when you’ve paid with your personal money

We find that many business owners don’t know how to handle transactions when they’ve paid for a business expense using their personal account. There are actually ways to capture such expenses paid on the wrong card in Quickbooks so you can still claim the tax deduction.

You may need to get in touch with your advisors to make the adjustments accordingly.

Avoid Quickbooks Mistakes by Working with a Specialist Advisor

The best way to ensure that you’re taking full advantage of all the features in Quickbooks and avoiding costly financial mistakes is to work with an experienced advisor who knows the ins and outs of this cloud accounting system.

We’re Quickbooks ProAdvisors and would be happy to take a look at your file to give you some suggestions.

Get in touch with us today and let us help you save time and make smarter decisions that are supported by data.

21/04/2021

Do you have closely held employees? These are family members who work for the family business, directors or shareholders of a company, and beneficiaries of a trust.

Currently you have not been required to report the earning of your closely held employees until the end of the financial year (and your accountant has probably done it for you).

But as of 1 July this year, you are required to report through Single Touch Payroll (STP).

If you're not all over this, please contact your BAS Agent or Accountant ASAP as there is software to set up and June is going to be hectic!!

There are changes to STP reporting form 1 July 2021 which may affect you.

16/04/2021

Don't miss your chance to claim for the first JobMaker Hiring Credit claim period for additional eligible employees who were hired from 7 October 2020 to 6 January 2021.

Not sure if you are an eligible business or if you have any eligible employees? We can help you work it out and get you feeling confident 😏

The first JobMaker Hiring Credit claim period ends soon.

31/03/2021

Don't you wish the ATO would just send you a basic checklist of what's required to set up your business when you apply for an ABN?!! It's like they're hoping you don't read the 1000s of pages on the ATO website and catch you out down the track.. OK, maybe that's a bit cynical! But it would be great if you had some idea of the requirements for running a business in Australia.

Well, look no further! I've created a super simple checklist just for you. It breaks down all the important things to consider and points out which expert that can help you further.

Follow the link in the comments to get it, and feel the anxiety that you're missing something important start to melt away.

29/03/2021

Accurate and timely bookkeeping - not only will it give you instant knowledge about every aspect of your business, but it will also help you keep on-side with the ATO. If you’re able to meet your tax obligations through sensible planning you’ll sleep better at night and won’t be worried you are doing the wrong thing or that you might get audited or fined. Your anxiety will subside when you always know which taxes are due, and when.

Good business planning - will help you set goals for your business, with specific steps on how to achieve these goals. Do you want to pay yourself consistently, increase your profits or upgrade equipment? Without good bookkeeping and business planning together, it is hard to know if you’re on track to reach your goals.

Cashflow forecasting - will enable you to anticipate a possible cashflow problem (something all growing businesses experience from time to time) and take steps before the problem becomes a crisis. It really pays to have a clear vision over revenue generated from different products and services as well as knowing your cost of sales and overhead expenses.

Creditor and debtor control - will improve your cash flow. Invoicing promptly and collecting debts on time gives you the cash to pay suppliers on time. It is a virtuous circle and important to recognise the energy flow in both directions. Money blocks in this department is one of the most common (and unnecessary) causes of business owners experiencing stress and anxiety. Be grateful for your suppliers and pay them on time as well as being grateful for your clients and expecting them to pay you for your services.

Realistic pricing and costing - will ensure that you run your business in a competitive but profitable way. Poor skills in this regard could mean that you’re operating at unrealistic levels—even at a loss. If you let costs get out of hand (keep an eye on professional development and subscriptions!) your profits will erode and you’ll end up paying yourself last (and less!). There is no point in increasing sales if you’re not increasing your profits.

22/03/2021

Maintaining positive cash flow can be challenging for small businesses, whether you’re just starting out or have been running your business for years.

The difficulty often comes down to waiting for clients to pay their invoices. One or two chronic late payers cost valuable time and money when you have to chase them down; if reliable clients also fall behind one month, the result can be devastating.

These tips will help you get paid faster, so you can keep your cash flowing.

Stagger your schedule
By billing some of your clients mid-month and the rest at month end, you can facilitate a steady stream of ongoing cashflow. This in turn will make it easier to pay your own bills as they fall due.

Invoice quickly – and accurately
When a contract wraps up or it’s your scheduled billing day, send your invoices straight away. Automating your invoicing with a cloud-based accounting solution will eliminate the need for time-intensive manual billing and ensure you never fall behind. Before you send an invoice, be sure it’s addressed to the right contact. It also helps to itemise costs in detail so no questions arise that delay payment processing.

Set a deadline
Make it clear on every invoice when payment is due – for instance, “Payment due on receipt” or “Payment due within 14 days”. Ideally you’ll have outlined your payment terms in writing, including any penalties for late or non-payment, when you start working with a client. Summarize your terms on each invoice as a reminder. Also keep in mind it is becoming the norm to invoice in advance or ask for a deposit before you start work.

Set payment policies
You might choose to reward customers who pay early with a small discount or reward as an incentive—or charge a penalty for late payments. Outline on your invoice the different amounts your customer will owe, depending on the date they choose to pay.

Follow up
If a client doesn’t acknowledge receipt of your invoice, check in to make sure it was received. Follow up as soon as a deadline is missed, then resend the invoice with a friendly reminder. Automatic reminders set up in your software can eliminate the anxiety often felt when contacting a client about an unpaid invoice.
Also, be willing to negotiate. Sometimes a client intends to pay but needs a bit of time to come up with the cash. Be open to negotiating a payment plan; it’s better to receive payments in small increments than not at all.

Final tips
Remember, being in business with someone is an exchange of energy, as well as money. One of the best ways to encourage customers to pay on time is to maintain a friendly relationship. Encourage goodwill by adding a handwritten note to your invoices, and be sure to thank them from time to time for their ongoing business.

It’s a simple fact: when your customers feel a connection to the person behind the business that serves them, they’ll be more inclined to take care of their invoices quickly.