Hi guys, this is how to apply for your Director Identification Number (DIN) online.
So if you watched my first video, I’ve run through what a DIN or a director identification number is. But thought I would run through the process on how to actually do it. We have Dan, who’s going to be our example. As a director of a company you have to do your own. Your accountant/tax agent can’t do it on your behalf. Dan’s going to do it and I’m going to help guide him.
Step #1 – Set up your MyGovID
I’m on the ABRS website and I’ve navigated to “how to apply for your director ID”. There essentially are three steps to doing that. The first thing is to set up your my Gov ID. Not to get confused with my Gov as the two are different.
I know a lot of people have already had this set up on their phone. We literally just set up on Dan’s phone. We used his Medicare card and driver’s license to do that and that took less than 5 minutes. We won’t go through that process in detail but if you go on the ABRS website, you can get instructions on how to do that.
Step #2 – Gather your documents
You’ll need to gather some basic information. It could be your TFN number, residential address, or two documents to verify your identity. So if you just quickly read these below it could be a bank account, notice of assessment, super details and dividend statement summary or pay as you go payment summary which don’t exist anymore because now we’ve moved to STP finalisation reporting.
In this case we have Dan’s bank details which the ATO will have for any tax refunds that have gone into his bank account. And I’ve also got a notice of assessment. This is how a notice of assessment looks like. If you’re looking for that you can log into your myGov and you should be able to grab that off there if it’s not readily available to you.
Step #3 – Complete your application
I’ll go ahead and get Dan to apply now. If we click on here, let’s see what happens. I will put in Dan’s email address, log in to myGovID (go to the app on your phone and authenticate to go to the second step of security).
So now we’re on the next page. Have a little read through here, just making sure everything makes sense.
This is obviously your sort of T&Cs. Tick ‘I agree to the T&Cs of use’ and then ‘Next’. The next page will have your name and date of birth and we are going to confirm our identity details. It’s interesting because when I did mine, I didn’t have to go through any of these. I think I might’ve previously submitted some sort of my ID details another way. But we can go ahead and do that. So let’s have a go at the notice of assessment. On the other screen I’m going to put in the date of issue and then the reference ID or reference number.
And then we have some bank details, let’s go ahead and put those in now.
And now we have been able to verify Dan’s ID with the identity details and we’ll go ahead and click ‘Continue’. So Dan’s going to read the application requirements and ensure that he complies with everything that’s listed on the screen. Tick the relevant boxes.
We got personal details that we will review. We’ll go ahead and make sure that that’s all true and correct. We’re just reviewing the details here, making sure we’re in line with the application requirements, making sure that these details are correct and making sure that we complete the application. Click ‘Submit’.
Step #4 – Record & share your DIN
That’s it! On the very last page you’ll have your director identification number, you will go ahead and save that down.
And it’ll actually say ‘Next Steps’. Once you save it down, if you’re a client of mine – can you please send me your director ID number so we can save that on the relevant place for you. And if someone else is looking after your corporate secretary affairs, give that to the relevant person.
If you’re a company director, complete your application form to get your DIN. Any questions, drop us a comment, DM, email and will try to help where we can. Otherwise the ABRS website should be able to have all the information there for you.
I hope this video is helpful and i’ll see you on the next one, bye!
Hi guys, it’s Michelle Knight from Little Miss Bookkeeping. Today we will be chatting about Director ID’s and how to apply for your Director Identification Number (DIN).
What is a Director ID?
A Director ID is a unique 15 digit number given to an existing, new or intending director who has verified their identity with the Registrar. It is issued to a person forever, much like a tax file number or ABN.
Who needs a Director ID?
The Director ID applies to all directors & alternate directors of registered companies under the Corporations Act 2001 (Cth) & the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI).
You do not need to apply for a DIN if you are a sole trader or partnership.
When do I apply for a DIN?
Where do I apply for a DIN?
Before you get started, you will need to set up for myGovID and complete the proof of record ownership process via the app & then apply online via the ABRS website. I have a YouTube video which runs you through a step by step process on this, you can check that out here.
Other important notes:
– We, as your tax agent, can’t apply for our clients. They need to do it directly online.
– Apply for a DIN ASAP or penalties may apply!
– A director of more than 1 company needs just 1 director ID.
A government website where you can have a look around on information about pay rates and wages, awards, starting employment, etc
Has pay calculators you can use to determine pay rate, awards, etc
You can contact Fair Work to get some advice directly from them
HR professional or solicitor
Can be an agency that specifically deals with HR issues, or a solicitor
Can help with more complex issues such as employee contacts
This is not to say we cannot have some preliminary discussions. There is going to things I can help with and things that I can’t. For the areas that I cannot, I will direct my clients to the appropriate place to go with those queries.
3. What do you help with?
Once the pay rate/salary wage has been finalised and provided to us, we can then help you with:
Payroll set up
Wage adjustments in accounting software
Paying tax on wages (PAYGW)
Keeping track of leave and processing leave
Assisting with tax calculations on commissions or bonus payments
STP filing & finalisations
So in summary, I am not a HR professional. I will direct you to either Fair Work or a Solicitor/HR Agency if you have any specific questions around that. Again, as business owners it is up to you to determine what pay rate you’re paying your employees, and once you have determined that I, in my accountant role, will help with setting that all up in your accounting system, calculating the correct amount of tax and wages. If there’s any tax related questions or accounting issues with payroll, yes, we can definitely help with that.
If you have any other questions or concerns, please reach out to us here at Little Miss Bookkeeping. As always, please speak to the right professionals to get the right advice. Have a lovely day and I’ll see you in the next one, bye!
Hi guys, this is Michelle from Little Miss Bookkeeping.
I want to run through the super increases from 9.5% to 10% occurring from the 1st of July 2021. This is going to be affecting all my clients who have employees and their employees. So I thought I’d put together a quick video just explaining the changes and how this is going to be affecting them from a business owner point of view. Let’s quickly run through it, and what it means, what we need to do, and then the next steps that you as a business owner should be undertaking.
We know that the at ATO has been this discussing increasing the super for a while now. And from the most recent change that’s happening from the 1st of July. So we’re going from 9.5% percent to 10% – a 0.5% increase. I’ll insert a little table here, but basically, there are some planned increases in the future, which I won’t be talking about right now, we’re just talking about the 10% increase which will be implemented very, very soon. I’m filming this video in mid June 2021. So if you’re watching this, just make sure that it’s up to date and relevant, because we know that tax legislation likes to change all the time.
So the first question I’ll quickly go through is
1. When does the payment or the 10% increase start?
Any wages paid on or after the 1st of July will be subject to increased SGC irrespective of when the amounts were accrued. It’s going to be based on the payment date of the wages, not specifically when the wages were accrued. Sometimes we have pay periods that cut off between two months. It’s going to depend on their payment date. This morning, I saw information online that just clarified that for us, business owners, accountants, bookkeepers, that that was the case.
If wages were paid on the 30th of June, that’s going to be that 9.5%. Anything from the 1st of July onwards, that’s going to be subject to the 10% SGC, even if that pay period was say from the 15th of June to the 30th of June.
As a business owner, I want you to check the arrangements with your current employees.
Are they on salary? Are they on wages? Specifically for employees that are on salary packages, does this include or exclude super? I’m not an HR professional. This is totally out of my scope of expertise. And I highly recommend if you’ve got questions around this, go speak to someone in the HR industry.
Basically, as a business owner, I highly encourage you guys to check your employment contracts for salary package employees. Does it say including or excluding super? If, for example, you are paying someone $60,000 a year, does it say $60,000 + super? Then you as an employee are going to have to find that extra 0.5% top up. If an employee contract says including super, potentially there’s going to be an issue around the employee having to have less take home pay because they have to absorb that 0.5%.
Again, if there’re questions around this, go speak to an HR professional.
You might have seen some of the articles flying around on the news around employees being worse off because of this change. I encourage you to have a review of all those employee contracts. And even if people aren’t on salary packages, maybe it’s a good time now to review that you’re paying the right reward, that your agreements are all correct, up to date, whatever that might be. Because the reality is, there might be some issues with payroll.
For example, If I’m processing payroll in July and an employee notices that they’re getting this slightly, I’m talking very slightly, smaller amount in the hand, just in line with this legislation – they’re going to start asking questions. You as a business owner should be on the front foot, checking your compliance obligations around your employee contracts. And if need be, having discussions with your employee.
So the next question I have is
2. How do I process the 10% Super?
From the correspondence I’ve seen from an accounting software like Xero, they’re in the process of updating their back end system to make sure that it will be able to calculate super correctly. Let’s leave it at that, they’re saying that they should be able to handle the change. We haven’t had any confirmation yet as to when they would update on that process exactly. I assume that we’re going to run smoothly into July and payroll systems will be able to handle it.
We’ll stay tuned and see if there’s anything we need to do as business owners, bookkeepers, accountants. Let’s hope that it’s going to be a smooth transition into your financial year.
To wrap up,
I’ve written three quick dot points for business owners with employees to show what you should be doing:
1) Review your employee contract agreement and seek HR advice if required.
2) Have a discussion with your employees about the changes and if required, update your payroll. If for example, you’re reviewing employee contracts and something needs to be changed regarding how it’s imputed in the payroll system, talk to your employee about it and talk to whoever is looking after payroll to make sure that it’s being captured correctly in the system.
3) Process wages as normal from the 1st of July checking that your accounting software accurately reflects the 0.5% increase.
Unfortunately, I can’t see any specific guidance from the ATO or Xero yet or other accounting software regarding the change. If you’re a client of mine, reach out if you’ve got any questions. Hopefully it’s going be a smooth transition when we start doing pay runs in July. As always, if you have any specific questions, do speak to your trusted tax agent professional.
Hope you enjoyed this video, and please do share it with any other business owners who might be in the same boat.
Have a great day and I’ll see you in the next video. Bye guys!
Hi guys, it’s Michelle Knight from Little Miss Bookkeeping. And today I wanted to run through the reality of owning an investment property. Recently I’ve seen a lot of discussion on social media platforms like Facebook groups around property – either questions from people who currently have an investment property or rental property, or people looking to purchase an investment property as a part of their overall investment strategy. Now there was a lot of discussion around cost and benefits and that sort of thing and I suppose I wanted to share what the reality is with myself owning an investment property and seeing a lot of other millennials potentially moving into that space.
Now, there were myths around landlords, that they’re these wealthy people who price gouge/put their prices up for no other reason than to make a profit. And they are these bad people that shouldn’t be trying to buy all these properties when there’s not enough places for people to live. That was what got me triggered a little bit. And the point of this video is to educate you guys around what the reality of owning an investment property is, from a cash flow point of view. This video isn’t going to be specifically around the tax advantages, deductions or how negative gearing works. But I am exposing myself a little bit, just to show you how much it costs me on average per week to hold the property.
Myself and my partner, we reside together in my partner’s residence. There’s no reason for me to continue living in my place, which is just a little two-bedroom townhouse that I’ve purchased as my very first place. That’s been rented for a couple years now. And what I’ve done is I’ve put together a little Excel workpaper. I’m a very visual person, so I thought others might enjoy me going through what these costs are. And remembering that this is based on my situation. Everyone’s completely different. It’s based on where the property is. And we know that across Australia, there’s different situations, different locations, different prices, x y z. But I thought it would kind of give a good overall overview and baseline for people who are potentially looking into property, and really be ready for those costs, especially if, for example, you’ve never owned property before. And when you become an adult, you’ve got to start thinking about things like rights and body corp and water and all these other things that we do take for granted when we are adolescents.
So what I’ll do now is I’m currently screen recording my iPhone. And I’ve got here a breakdown of the property itself. I’ve put on here that it’s just a two-bedroom townhouse, I live on the Sunshine Coast, that’s where the property is located. Now per week, I rent that $420. That’s pretty much market value as is. Now if we go through all the costs, I’ve broken them down per week, based on what I paid last financial year, so I pulled out my tax return and I sort of had a quick overview of what that was last year because it’s probably going to be about the same or maybe a slight increase with inflation.
My property manager fees are about $2,000 a year. I’ve done the whole self-manage and use the property manager and for me time benefit cost property manager – highly recommend. So that’s why we’ve got someone looking after that. I pay about $1,000 every six months for my council rates, my body corps again about $1,500 every six months, so $3,000 a year. I pay a landlord insurance which is at $300 a year. Water, so in my lease the tenant pays the water usage cost and I pay the fixed fee/ fixed cost which is the cost of the pipes as opposed to the use of water. So that’s kind of like a 50/50 split depending on. But I’ve put in there a provision for the fixed costs that I pay for, which is about $1,000 a year. And my repair maintenance is pretty low. When I purchased the property, it was brand new, so it’s not a lot of ongoing repairs and maintenance. But you do have to do your smoke alarm compliance and that sort of thing. So I put $200 per year and it would probably go up a little bit. If you have a look at this spreadsheet, my rental incomes $420 a week. Now out of that if we deduct every cost that I currently pay, and that’s not considering any capital investment where I might have to replace a kitchen or a dishwasher or something like that, the ongoing cost of the property is about $163. So, in reality, my net income is about $257.
If we keep reading down, my current mortgage repayment on that is about $1,700 per month, or $418. When we think about it, my weekly rental income of $420 just covers my average mortgage payment of $418, not including all my ongoing costs. If we keep reading further down, this puts me in a deficit of $161 per week, or rather, per year, it’s about $8,000 odd a year, I have to cash flow myself. So in reality, from a cash flow point of view, what I do each week, is I put away a set amount into a bank account for me to cover costs. So according to the spreadsheet, I need to be putting aside $163 per week. So when my next bill comes up, when my council rate comes up, when my body corp comes up, my insurance renewal comes up, I have that cash sitting there. Now, it’s quite clear that even though I am getting $420 income, that only covers my mortgage payment, and I’ve got to cashflow all those costs. This is me, this is my situation, this is my scenario. And I really wanted to show you that so you guys understand that it’s not all cash money, you know, raining from the sky here.
You might be asking “Michelle, why would you forecast $163 per week, or rather $8,000 a year just to hold this rental property?” . Now, in summary, this is in line with my overall investment strategy around my tax planning, around capital gains, growth in property. It’s not something I want to go through in detail now. But just because my property income, doesn’t quite cover the costs of my property. To me, I’m totally comfortable with that. To me, I have $163 extra weight to set aside now account to make ongoing payments when they’re due, knowing that the rental property situation is beneficial in regards to how it gets applied to my individual income tax. I’m banking on capital and growth, where one day I eventually might sell that property.
So what I’m going to show you is if we change the rental income. Now, let’s say years down the track, the costs were about the same, and I could rent this property for a lot more. Let’s show that situation. This is going to be a pretty high jump, but let’s make that $550. Let’s assume, and it’s probably not gonna be the case, but assume everything remained relevant. Everything remained the same where I only have to cash flow $30 a week as opposed to another $100 or more, or rather about $1.6K a year. Let’s pretend that I had a significantly lower mortgage on my property. When I purchased my property, a few years ago, I had quite a high LVR. I just wanted to get into the property. I was totally comfortable with that. Let’s pretend I had a slightly bigger deposit. And let’s say my mortgage repayments were about $200 a week.
If we have a look now, we can see that with everything remaining the same $420 a week, I have cost of $163 a week, and my mortgage repayments were only $200. I am actually cashflow positive, a whole $57 so that is my raining money cashola figure there and per year, that’s about almost $3,000 a year, which is flowing through to me. That’s obviously the point that as an investor you want to get to. That’s really a summary or the reality of owning an investment property.
So that is really a quick short and sharp breakdown of how much it costs me to hold my investment properties. An example of where if you had a significantly reduced mortgage, the cashflow benefit of that would be. I haven’t run through a tax deductibility, tax planning, tax advantage point of view on this or the application of what is negative gearing and how it all works. But I hope this was helpful if you really enjoyed this video, please subscribe to my channel and give it a like, it really does help me to provide more valuable content to you.
As always, if you have any specific questions of around you and your scenario, please do speak to a trusted tax professional to get the right advice. Thanks for watching and I will see you in the next video. Bye!
Tax Planning is where you will review your financial situation and apply strategies to minimise or reduce the potential tax liability at the end of the financial year. This is around applying strategies within our law, within our legislation legally, to potentially minimise any tax debt that our clients might have coming to the end of the 2021 financial year.
How is tax planning done?
So myself as a tax agent, I will have clients engage me for tax planning services. And I’ve actually written down five steps that I will quickly run through to give you a broad overview of how we complete tax planning.
The first step is we’ll be reviewing the clients accounting file where say they’re in Xero, ensure all the data is correct and up to date, which will lead us on to completing step two, which is determining their year-to-date profit. For example, we might look at the period 1st of July to the very end of March or the 1st of July to 30th of April and look at how the business has been trading for say those 9, 10, 11 months depending on when we determine that cut off. The third step of this process is we’ll be extrapolating out a full financial year. If I’m reviewing July to April, and we don’t know what May or June is gonna be, we can make some informed decisions based on our understanding of the business, maybe discussions with the client as to what the full 2021 financial year will look like. And based on that review, step number four be estimating any tax payable amounts for the 2021 financial year. It’s kind of using our informed crystal ball to see what will the 2021 financial year potentially look like? What will the tax payable for the client look like? And then step number five is considering any tax planning strategies for the client that we can suggest to reduce that potential tax liability.
What are some tax strategies?
Now, this is really going to be dependent on your situation. And this is why you really need to speak to a tax professional around the appropriate strategies for you. And there are so many, and I’m not going to list them all here. It’s going to be really dependent on what’s going to be the best strategy for you. But I will run through a couple of the most common strategies that might be implemented, whether that’s applicable in your situation or not. That might be making additional super contributions, pre-pay expenses, new asset purchases, and depending on the entity structure, reviewing how the distribution of profit is flowed through a family group.
What will tax planning cost me?
You’re probably wondering, “Michelle, how much is this all going to cost me?”, And I always say – it depends. You know, how long is a piece of string? Everyone’s circumstances are different. It could be a couple hundred dollars to a couple of thousand. It really depends on the individuals situation. What I would like to say is Tax Planning is definitely an investment. I’ll give you an example. Just for arguments sake, it costs you a couple of thousand dollars to get tax planning done by your tax agent. But the reality is by engaging them to complete their review, complete recommendations, tax strategies that might potentially save you tens of thousands of dollars in tax. So a $2,000 investment, resulting in $10,000 worth of tax savings is definitely a no brainer. I mean, you’re going to pay the two to reduce your tax by a significantly more amount. Not to say that that’s always going to happen but it’s one of those things where as a business owner, you’ve got to be making the right decisions and engaging those professionals who are going to help you long term in the overall picture. So it’s going to be totally up to you as a business owner as to whether you will get someone to do tax planning, but it is something that I highly recommend with my clients to look at coming into the tax planning season.
So if you’re all about reducing your tax liability for the 2021 financial year, go speak with your trusted tax agent and engage them for tax planning services. They will totally love you for it. I’m about to start that rollout with my clients. To be honest, tax planning is really fun work for us. It is one of the more exciting type of accounting work we do, coming from a tax accounting nerd.
Anyway, if you’ve liked this video, please do give it a thumbs up and subscribe to my channel. It does help me to provide more valuable content to you. Thanks for watching and I will see you in the next video. Bye!
As an accountant, I do see these get completed incorrectly. So I thought it would be a good idea to just quickly run through some of the details. If you’re interested in learning more, please keep watching!
So typically you will complete your super form when you commence a new job and you will generally be given this at the same time as your TFN Declaration. I’ve created another video going through this little baby. Your new employer will give you these forms together. So you’ll complete these both at the same time.
The reason why you would these forms is so employer can pay super into the right super fund. Now there are all different types of super funds, industry funds, self-managed super funds. And it’s essentially directing your employer to put your super in the right account. So, what I’m going to do is quickly run through this pack, and then specifically the three pages that you will complete and send back to your employer.
Okay, so what I’ve got in front of me is the super form which is about seven pages long, I believe, the first few pages, again, like the TFN declaration, is just some information about how to complete the form and information to direct you where to find out some more info. So, I’m just going to quickly go through these just as an FYI and then we’ll get to the nitty gritty part of the superannuation standard choice form or in short, your super form.
The form itself is typically three pages long. So you will complete all three pages and I just wanted to run through each section of the page and what that sort of means in layman’s terms, because again, ATO forms can be a little bit confusing. The terminology you might know as another term, so, let’s just break that down right here, right now.
When you get your super form, you’ll tick one of these three boxes. The first one in layman’s terms is you’re going to nominate a super fund. I remember years and years ago, when I first completed this form as a 14/15 year old, I’m thinking “What’s an AFRA fund retirement savings account? Okay, I’m not sure if I have one of them. Self managed super fund, I definitely don’t have one of them”. Or you can get your employer to put it in a default fund of their choosing. So long story short, if you have any sort of industry fund already set up, you can go ahead and tick this box and then complete sections two, three, and five.
If you have a self managed super fund, you can go ahead and tick this box and complete sections two, four, and five. Now, just be aware that some industry funds have this terminology code called “part self-managed”. I’ve had conversations or heard of conversations with people saying, “Oh no, Michelle, my super is self-managed. It’s with Sunsuper and they let me part self-manage my superfund”. So I know some industry funds allow you to do that or retail funds, but at the end of the day, that is not a self managed super fund by default, according to this form. So just be aware that even though your fund may allow you to select different investments or select different portfolios, it’s actually not a full self-managed super fund. And you will know if you have a self managed super fund, they’re not cheap, they’re not easy to set up, you’ve got a lot of compliance during the year and typically you should have a lot of super to roll into a self-managed super fund. So you will know if you have one of these. More often than not, if you’re not sure, you probably don’t have one.
And then lastly, if you don’t have a super fund already and you just want to get your employer to choose a default fund, you can tick this. This would be most common in situations where you might be a teenager, young adult and it’s your first employer ever, you might just go “can you just set up a super for me?” and that’s all cool. So that’s the third option there.
If we go down to section two, you’ll have to complete this. Name and TFN, if you have some sort of employee identification number, typically a lot of people don’t fill this out because they don’t have one, but in the case that you might, you can complete that.
So let’s get to section three. Now, retail industry funds, we’re talking the guys like Sunsuper, Rest, BUSSQ, all those really common funds that you have heard of, you’re already apart of it, your friends are apart of it. This is where you’ll complete the details. So, you’ll have to find the ABN, the name, and then all these other details. Now, the most important ones as an accountant that we’ll need to align is the fund ABN, the name, the USI and member number. And this is really important because, some super funds have lots and lots and lots of different, I don’t know if the right term is portfolios, but different types of super options with different USI numbers. For example, Sunsuper, I think only has one where they have just one USI. There are big super funds that have lots and lots of different USI’s. I think maybe Rest I was setting up a payroll for a new client and setting up the super settings for the employees and if this section is completed incorrectly, it gets really frustrating and confusing as the payroll person.
And then the member number is equally as important. So, for example, back in the day, I used to be apart of Sunsuper. I would find the ABN online. You can usually do a Google search for them. It’s typically quite easy to find on their website. And if not, if you have online access to your super, you should be able to find those details pretty easily. So if you’re really unsure, I would suggest getting in contact with your Superfund directly.
So for example, if you Google “Sunsuper” it would actually give you your ABN, write in Sunsuper, they’ll have some standard address and the USI connected to your super fund and the member number. I’ll make a really important point as to why the member number is so important for the payroll person.
If this number is wrong and it comes to paying your super, what sometimes happens, and this really varies based on the fund, and if this number is not correct and doesn’t quite match the person who’s listed on the top of the form, it can sometimes bounce, so it’s sometimes rejected by the fund. And it gets really frustrating for business owners, bookkeepers, accountants because we don’t like to see super bounce cause then the business owner is going to have to repay it. Then we fall into issues of super not being paid on time and penalties and interest and that sort of thing. So, this is why I stress to you getting this information right, and if you’re not sure, finding out. Don’t just leave it blank or write in “Rest Super” and leave everything else blank, that’s just not going to help anyone. And it’s going to make the bookkeeper or payroll person pull the hair out, trust me. Cause that’s what I have to do sometimes.
Let’s go to the next page. So, if you have a self-managed super fund, you will complete this form. And I always get whoever’s claiming this form just to provide some additional info, confirm that these details are correct. Because, you’ve got to ensure that the super is being paid into the right super fund.
And because self managed super funds are set up personally, and they’re all sort of like private funds. We don’t want it not getting into the right bank account, if that makes sense. And I’ll just point out one of the things that people don’t complete, don’t understand or don’t get right, which makes it again really frustrating for the payroll person when they’re setting up super funds in the backend of an accounting software. If they don’t have all the data, they’re gonna pull their hair out. And it’s just not a fun time. The biggest mistake that I see when people are completing this section of the form when they have a self-managed super fund, is that they don’t know their ESA or their electronic service address. The best place to check this is to ask your accountant or ask the person who set up your self managed super fund, because this is really important.
For example, when you set up a self managed super fund up in the backend of Xero, if you don’t have any ESA, it kind of doesn’t let you set it up. This all comes back to the compliance and making sure any super contributions go through a clearing house, and this is important, so please put the right details in there, from me and all the bookkeepers and accountants and payroll people, get that right!
And then the last bit is you will sign the form, date it and that’s pretty much it. Let’s quickly jump onto the last page and that will be for your employer to complete. So no problems there. As you’ve probably noticed, if you’ve completed this section there is no where for you to complete anything else because your employer is just going to pick a default fund and you’ll have super set up. And I’m sure once the first round of super has been paid into your account, you’ll probably get a nice little letter from whatever superfund that is, saying “Hi, welcome to X super fund, here’s your member number and details and how to contact us” and maybe set up your online account.
So, that’s pretty much how to complete your superannuation standard choice form in a nutshell, if you have any specific questions around this, I do suggest you speak to a tax professional because everyones circumstances are different.
I hope this video was helpful. If you did enjoy it, do please give it a thumbs up and subscribe to my channel. It does help me provide valuable content to you. Thanks for watching and I’ll see you in the next video.
Hi guys, it’s Michelle Knight from Little Miss Bookkeeping.
Today I wanted to run through the reasons why I love Xero. Now, for those of you who don’t know, Xero is a cloud-based accounting software, a software that I use on a daily basis and software that my clients use. So I wanted to run through the five main reasons why I love it.
So if you’re interested in learning more about that, please keep watching!
This is my opinion and sort of some little tidbits that I thought I’d share. This is not in any way a sponsored post or anything like that, I just wanted to share my thoughts around it and I suppose inform those who might be sitting on the fence as to whether to choose Xero or not.
There are many different types of software providers on the market. There’s Xero, QuickBooks, MYOB, Reckon, a whole range of different software providers. Xero being probably one of the biggest players in the market.
So we saw Xero come into the marketplace and we saw how great and amazing it was. The transition from desktop accounting software like MYOB to Xero. Software like Xero’s competitors do have comparative cloud-based options. But in my opinion, they’re probably not as user friendly in some circumstances and they’ll probably not as good. Not to say that Xero is going to dominate the market forever and ever, and ever, but right here right now, it’s a program that I recommend for a lot of my clients based on their needs, remembering that everyone’s businesses and circumstances are different. Xero might not fit that criteria for a client. But a lot of clients that I deal with, it’s gonna tick the boxes for them.
You might’ve seen ads pop up online or on TV, that sort of thing. Now, when I first started accounting years and years ago, MYOB was the biggest player back then. MYOB was probably the most common accounting software I used back just after I’d finished Uni. And then everything moved to the cloud.
Let’s jump into it. The first reason why I love Xero.
1. It’s easy to use
You log in via your internet browser, it has beautiful interface from both a frontend and backend. So for business owners who are trained up to do their own bookkeeping or internal bookkeepers, the software is quite user-friendly.
From a backend, it generates really good reporting for accountants to take away certain information they need to complete compliance, such as your BAS or tax returns, that type of thing.
A lot of people kind of get a little bit scared about using an accounting software, and I say, let’s do some training. It is no where near as scary as you first think!
2. It has a lot of integrations
The second reason I like Xero is that it has lots of integrations. I’m noticing with a lot of e-commerce clients that I pick up, one of the first things I’ll do is make sure that any of those integrations are linked. In addition to your normal bank feeds that are in most cloud accounting software, we’ll link PayPal fees, we’ll link E-way, Stripe, Square, Timely, depending on obviously if that’s gonna work for their business processes and it works for their bookkeeping.
I love the fact that Xero has a whole marketplace where there’s additional add-ons, you can select and really make that bookkeeping and accounting processing a lot more streamlined, a lot quicker, really cut down the every day menial tasks. Once upon a time we had to do a lot of manual filing, scanning documents and nowadays, we have our iPhone, we take a photo, we upload it via an add-on such as receipt bank, push it through to Xero and it’s in the cloud forever and ever, and ever.
3. Value for money
Now, the third reason why I love Xero is value for money.
Now I’m always a cost-benefit type of gal. So, let’s put it this way, it’s not the cheapest on the market. And when you’re comparing “cheapest” it’s hard because the accounting software available, is like comparing apples to oranges. I’ve had clients come to me and say “QuickBooks is cheaper than Xero” or “MYOB is way cheaper” or “This more expensive”, and I say, you’re really comparing apples and oranges.
So don’t think, “Oh, I’m starting a new business, I need to go with the cheapest option”. You will shoot yourself in the foot. I’ve had clients go to cheaper options, and as they grow, or they’ve noticed that it just doesn’t have quite the functionalities that they need for their business.
So, they start off with an invoicing system that kind of fits 50% of their needs. They grow, they realise 12 months down the track, “oh crap, it’s not doing what I need it to do”, and then we have to go through the process of converting them over to something like Xero. It’s not a big deal, but it’s that time and investment where if you choose the right solution for you, based on benefits to you, as opposed to that cost figure.
I definitely recommend making sure you pick the right solution for you because if we go ahead and pick a different software based on price, we get it all set up and that’s a time cost, whether you get assistance with that or you do it yourself, and convert it six months later, why didn’t we just pick the right option?
And that’s why I say Xero is value for money. It’s definitely not the cheapest people come up with. There are free options, but don’t get stuck into that trap.
4. It’s 100% cloud based!
The fourth reason is pretty obvious – It’s a hundred percent cloud based!
So I can jump on my computer, at the same time I can be in the phone call with the client, and they can jump on their computer. If I’m out and about, and I really need to pull some data I can do so on my phone (although it’s not my preferred way to pull any Xero data).
Xero does have apps for you to do certain things, but being in the cloud, you can give access to different members in your team, give access to your bookkeeper, your accountant, and it’s all in there. You can upload and scan documents instantly and seamlessly. Amazing! I love the cloud, it is great.
Another thing you can do is link to the ATO. So it obviously ticks the boxes around STP filing, you can do BAS lodgements through there as an option.
Now, fifth and final reason why Xero is amazing…
5. Xero is always improving
So I’ve noticed comparative to other competitors out there, they really invest the time into product development. You’ll see a little forums in the past where people ask “can I have this specific function?”, and more often than not Xero say, “Okay, we’re working on it. Thank you for the feedback”, and if there are enough people in the Xero community or enough Xero’s out there requesting for the same type of functionality, Xero will at least look into making that option available.
So I really love that they’re making it better for the users.
That is pretty much the five reasons why I love Xero!
Again, if you have any specific questions around your accounting software, your accounting needs, please definitely speak to a trusted tax professional. Again, everyone’s circumstances are different and you do need specific advice for your specific situation.
If you have liked my video, please do give it a thumbs up and subscribe to my channel, it helps me to provide more valuable content for you. Thanks for watching and I will see you in the next video. Bye.