P-ART business consulting

15/09/2025

🧐🧐🧐🧐Newbie Question

How Do I Create a Financial Statement?

If you’re just starting out in accounting or running your own small business, you’ve probably asked: “How do I create financial statements?” Don’t worry — every accountant and entrepreneur starts here, and the process is easier than it looks once you break it into steps.

30/07/2025

📘 What is an Accounting Framework?

A set of principles and standards that guide how companies record, report, and interpret financial data—ensuring transparency, consistency, and comparability.

🎯 Purpose of Financial Reporting

To provide useful information to investors, creditors, and other users for making economic decisions.
🧩 Key Components of the Framework

1️⃣ Qualitative Characteristics
Fundamental:
✅ Relevance
✅ Faithful Representation
Enhancing:
📊 Comparability
🕒 Timeliness
🔍 Verifiability
👓 Understandability

2️⃣ Underlying Assumptions
🔁 Accrual basis
🏢 Going concern

26/07/2025

Client asked: 💡 How to Treat Scrap Value in Cost of Goods Sold (COGS)

P- art consulted:

🔧 What is Scrap Value?

Scrap value (or residual value) refers to the estimated amount you can recover from leftover materials or waste during production — usually through resale or reuse.

It’s not a cost, but a reduction in cost, since it offsets some of your production expenses.

📘 How Scrap Affects COGS

When you calculate COGS, you normally include:

Direct materials

Direct labor

Manufacturing overhead

👉 But if you can recover value from scrap, that reduces your net cost of production. So instead of adding it to the cost, you subtract the scrap value.

✅ Two Common Ways to Treat Scrap Value

1. Offset Against Production Cost

If the scrap is generated consistently and can be sold for value, its expected sales value is deducted from the total cost of production.

Example:

Total production cost: $50,000

Scrap value recovered: $2,000

Net cost = $50,000 - $2,000 = $48,000

This $48,000 is used when calculating COGS.

2. Record Scrap as Other Income (Less Common)

Sometimes, especially for irregular scrap sales, the income from scrap is recorded as other income in the income statement, not as a COGS reduction.

✅ Tip: The method depends on company policy and materiality. Regular and significant scrap is usually netted off from COGS. Irregular or small-value scrap can be shown as separate income.

✍️ Quick Formula (If Scrap Reduces COGS):

COGS=Total Production Cost−Scrap Value

23/07/2025

🧐Why Benchmarking Matters for Your Business
Whether you’re a growing SME or an established enterprise, benchmarking can reveal:

💰 Cost inefficiencies in operations and finance

⚙️ Process bottlenecks in accounting workflows

📈 Growth opportunities based on peer analysis

💼 Strategic insights for pricing, profitability, and budgeting

19/07/2025

🧐🧐🧐How to apply the Balanced Scorecard in your business?

1. Financial: Increase profit margin by 10%.

2. Customer: Improve customer satisfaction score to 90%.

3. Internal: Reduce lead time by 20%.

4. Learning: Increase employee training participation by 30%.

👇👇👇

11/07/2025

🧾 How to Lodge a Tax Return via MyGov (ATO Online Services)

✅ Before You Begin

Make sure you have:
• A registered MyGov account
• Linked your ATO account to MyGov
• Your Tax File Number (TFN)
• Your income details (most will be pre-filled from employers, banks, etc.)
• Any records of deductions or other income

📝 Step-by-Step Guide

Step 1: Log into MyGov
• Visit https://my.gov.au
• Log in using your username and password (or myGovID if enabled)

Step 2: Access ATO Online
• From your MyGov dashboard, click on “Australian Taxation Office”
• You’ll be redirected to ATO Online Services

Step 3: Start Your Tax Return
• Go to the top menu: Lodgments > Income tax > Lodge tax return
• Choose the correct financial year (e.g. 2024–25)

Step 4: Confirm Personal Details
• ATO will display your:
• Name, address, date of birth
• Residency status
• Contact details
• Review and update if needed

Step 5: Review Pre-filled Income Details

ATO automatically pre-fills:
• Salary & wages (from employers)
• Interest income (from banks)
• Government payments (e.g. Centrelink

Access government services from one place.

09/07/2025

How to Lodge Your STP Finalisation in Australia Before 17 July

If you’re an employer in Australia, it’s important to finalise your Single Touch Payroll (STP) data by 17 July each year. The STP finalisation process lets the ATO (Australian Taxation Office) know that your payroll information is complete and ready for your employees to lodge their tax returns.

What is STP Finalisation?

STP Finalisation is the process of declaring that the payroll information you’ve reported throughout the financial year (1 July to 30 June) is complete and accurate. Once you finalise, your employees will see their income statements marked as “Tax Ready” in myGov.

Steps to Finalise Your STP:
1. Review Payroll Data
Ensure that all year-to-date figures (YTD) — including wages, PAYG withholding, superannuation, and allowances — are accurate and complete for each employee.
2. Use Your STP-Enabled Software
Finalisation is done through your payroll software. Most software providers include an STP Finalisation option — check the instructions specific to your software.
3. Declare to the ATO
Once data is confirmed, submit the finalisation declaration through the software. This tells the ATO that you’re finished reporting for the financial year.
4. Inform Your Employees
Let your employees know once their income statement is marked “Tax Ready” so they can lodge their tax returns.

Key Deadline
• 17 July – Final date to complete STP Finalisation for employers with 20 or more employees.
• Small employers (19 or fewer) should also finalise by 17 July to ensure their employees’ tax returns aren’t delayed.

02/07/2025

🚨🚨🚨 Important Australia Tax Changes You Need to Know Before Lodging Your 2025 Tax Return 🚨🚨🚨

During 2024–2025 financial year, the ATO has introduced some key tax updates that could impact both individuals and businesses. Here's what you need to know:

💡💡 For Individuals:

✅ Tax cuts for those earning under $135,000:

Income between $18,201 – $45,000: Tax rate reduced from 19% to 16%

Income between $45,001 – $135,000: Tax rate reduced from 32.5% to 30%

✅ Work-from-home expenses: Deduction rate increased from 67 cents to 70 cents/hour

✅ Car expenses for work: Rate increased from 85 cents to 88 cents/km

✅ Electric or hybrid vehicles: If used for work and charged at home, you may be eligible to claim 4.2 cents/km for electricity usage

💡💡 For Businesses (from 1 July 2025 onwards):

✅ Minimum wage: Will increase by 3.5% to $24.95/hour

✅ Superannuation contributions: Superannuantion rate increases from 11.5% to 12%

✅ Instant asset write-off: The $20,000 threshold for small businesses has been extended to 30 June 2025

✅ ATO interest penalties: Late payment interest will no longer be tax-deductible

📌 Stay informed and ensure your 2024–2025 tax return is accurate and optimised. Planning ahead can make a big difference for the upcoming financial year.

💬 Have questions or need support this tax season ???
Don’t hesitate to contact!

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26/04/2025

INVENTORY CONTROL
1. Process: Ordering, receiving, issuing
2. Inventory count: Periodic and continuos
3. Closing inventory method
- FIFO
- LIFO
- AVCO: CWA & PWA
*The fifferenct between CWA and PWA is the period of counting closing unit price
Exp - CWA

03/04/2025

How do you shape your career in accounting field? Management accounting or Financial accounting
According to ACCA notes, let's see the difference between MA and FA