There are many legalities surrounding MSMEs in India, however, we’ll discuss the benefits and advantages enjoyed by entrepreneurs who have registered for MSMEs.

So let’s get into it!

What Is MSME?

MSME India – Official Home Page

MSME stands for “Micro, Small, and Medium Enterprises.”

These are businesses that are relatively small in size but play a crucial role in a country’s economy. MSMEs are the backbone of many economies around the world, providing employment, promoting entrepreneurship, and contributing to economic growth. Here’s a breakdown:

Micro Enterprises: These are the smallest of the small, often run by just one or a few people. They could be local shops, small online businesses, or even street food vendors. An example could be a neighborhood bakery operated by a family or a freelance graphic designer working from home.

Small Enterprises: Small businesses are a bit larger than micro-enterprises and may have a few employees. Examples include a local clothing boutique, a small software development company, or a family-owned restaurant in your town.

Medium Enterprises: These are bigger than small businesses, with more employees and higher revenue. A medium-sized enterprise might be a regional chain of stores, a mid-sized manufacturing company, or a technology firm with a broader market reach.

For instance, let’s take a look at a typical example.

Imagine a family-owned bakery (a micro-enterprise) that grows and expands into a small regional chain of bakeries (a small enterprise) and later evolves into a well-known regional or national pastry and confectionery brand with numerous outlets (a medium enterprise).

MSMEs are important because they create jobs, foster innovation, and contribute significantly to the economic health of a country. They’re often considered the engines of economic development and are supported through various government programs to help them grow and thrive.

Benefits of MSME Registration in India

One will get to enjoy several advantages after registering his/her business and obtaining Udyog Aadhar. The best thing about obtaining Udyog Aadhar is that the process is quite simple and in addition to that, one won’t have to handle the paperwork for obtaining Udyog Aadhar.

Check out the top 10 benefits derived from the numerous schemes that are offered by the Ministry of MSME to protect small enterprises and assist them in growth and development.

1. Reduced rate of Interest from banks
2. Collateral-free loans from banks
3. Protection against delayed payments
4. Fast resolution of disputes
5. After getting registered with MSME, your business will be eligible for availing government scheme benefits which will include loans without guarantee, low-interest rates on loans, and easy loans.
6. 15% subsidy under the CLCSS scheme for technology upgradation
7. The exemption under the direct tax laws
8. Carry forward the minimum alternate tax (MAT) credit for up to 15 years instead of 10 years
9. Benefits under the Credit guarantee scheme
10. Octroi Benefits
11. Waiver of Stamp duty and registration fees
12. Reimbursement of payment made for obtaining ISO registration
13. Reimbursement of payment made for obtaining Trade Mark, Patent, or Intellectual Property
14. Benefits for Industrial Promotion Subsidy (IPS)
15. Benefit up to 75% of registration fees for Barcodes.
16. You will have financial backing from the government for participating in foreign business expos.
17. You will also get to enjoy other forms of subsidies that will help you in increasing your company’s revenue.
18. Concession in electricity bills
19. Your company gains preference for government certification
20. You will get an exemption when your enterprise applies for government tenders.

You can read in detail about MSME Schemes from this official document of the Government of India.

Conclusion

In conclusion, the world of MSMEs in India is filled with immense potential and benefits for small business owners. Through the MSME registration process, entrepreneurs can unlock a wide array of advantages that pave the way for business growth and development.

With the added advantage of preference in government certifications and tender applications, the registration process simplifies many aspects of running a small business.

So, if you’re a small business owner in India, embracing MSME registration can be a game-changer, just like choosing the right software to manage your finances and books.

ProfitBooks is a cloud accounting system that manages all accounting and bookkeeping needs on the go. With this simple-to-use tool, you can raise invoices, be tax-compliant, manage books, and much more. The best part? It is 100% free to use, so get your account now!

Also Read:

MSME Registration Process In India

ONDC: A revolutionary digital network for small business

What is a Debit and Credit?

Trademark Registration Online Easy Process In India

How To Get Working Capital Loans In India

The post Benefits of MSME Registration In India appeared first on ProfitBooks.net.

In today’s world, it is extremely important to showcase your ware and ideas in front of the right people, at the right time. Due to the growing popularity of startups and the need for a place for entrepreneurs to come together, many startup events are being organized in order to give such interested people a platform for networking and socializing.

This has led to the need for networking with the correct group of people from investors to future employees.

What Is Startup Networking?

Since there are so many different platforms for people to initiate a startup on, it is becoming quite a common thing.

But this also means that the system is becoming saturated in terms of resources. So if you are planning to initiate a startup, you need to make sure that you are putting a certain edge to the idea, in order to get the attention you need to make your business a success.

In this context, one of the most important aspects is building a strong network.

What is networking?

It is essentially communication – communicating with the right set of people who can help you to give your startup al the elements it needs to become a success. Each business idea requires a lot of different types of resources to make it a success.

What’s The Need For Effective Networking?

A startup is a long process that includes a lot of intricacies.

Handling a start up on your own or with your team of professionals, might seem easy but in actuality you will need a lot of support from numerous groups of people if you want to accomplish in the task and establish yourself a s a success.

Among these groups of people, one of the most important set of people whose support will take you a long way are the investors and the network people.

The process involves talking and making people interested in your business model.

This group of people will include investors, customers and even future employees. Proper network strategies play a pivotal role in the success of your business as the right interest of people can make or break your business.

Now that the importance of building a professional network has been established, here are a few tips and hacks to help you network effectively in networking events.

5 Ways For Startups To Network Effectively

While networking, it is very important to get the attention of the person who you are trying to engage in conversation. Here are 5 tried and tested ways in which you can network efficiently.

1) Introduce and get introduced

In most of the different networking events, you will find different groups of people huddled together on their own. This technically shows that people often like to stick to their own group of peers who they know from before. They create sub groups that include people they are comfortable with. But in actuality, you need to step out of your comfort zone if you want to meet new people.

So if you have the option to meet new people and get them to talk to you, you need to introduce yourself well. If you do not find the option to do the introductions yourself, you can ask your peers who know new [people in the group to do the introductions. This will take you a long way.

2) Have a pitch plan in mind

When you are done being introduces, the person on the other side will want some kind of pitch from you. In these event meets, you will be required to pitch the ideas for your business if you want to get investors and customers. The pitch needs to include the details of your business along with any kind of information that the other person might want. So it is a very important step to keep the different information ready in the form of a pitch.

3) Place your questions well

The best way to understand the people who you are trying to network with is by asking a lot of questions. Asking questions will help you to know the persona and at the same time, they will feel that you are interested in them. This helps you to get into their good books which are a very important part of networking.

While asking question make sure to sound genuinely interested and also ask relevant questions. Since a networking event is rather a professional event, you need to make sure that you stick to your professional etiquettes.

4) Offer to help

Staying selfish during such events will get you nowhere. If you want a piece of the pie, you need to offer others a piece of that pie as well. Networking is not only about getting things or resources for yourself, you are essentially expected to talk to a lot of people and get them to show interest in your business. So it is rather important to help out others with the same cause as this helps you to get their attention. If you are able to help these people, they will gladly return the favour.

5) Diligently follow up post event

The network building never ends with the event. You need to make sure to continuously follow up with the people with whom you have spoken to if you want to keep them interested in your work. While you network during the event, you need to make sure that you take some kind of contact information that will help you to stay connected to them post event. This ensures that you are able to follow up on the work and keep their interest intact.

Bonus: 5 Hacks For Positive Networking

If you are able to keep the above tips in mind you should be able to network efficiently. But a lot of different entrepreneurs are networking at the same time. So how do you stand out among such competition? Here are a few hacks that you can follow in order to stay ahead of competition and create a strong impression on the mind of the people.

1) Prepare a battle plan

When you are heading to one of these events, consider this to be a battle. And hence you need a proper battle plan in place. You need to strategies on the different things you need to talk about, in such a way that it is very informative but at the same time not boring. You will have to plan on how you can introduce yourself and then get the attention of the people.

2) Try to get behind the scenes

Getting behind the scenes can open up a world of information for you. If you know that there is a place in the organizing committee or they require a keynote speaker, it is a very good idea to make yourself available. This will help you to connect to a lot of different people who might be able to help you network. This is also a great way to know the details of the people who you are planning on networking with.

3) Know the bio of the speakers

Most of these network events have some speakers who are accomplishes persons from their fields. Many a time these speakers have the capability to invest in your startup or help to get connections in the industry where you want to function in. So if you have a proper bio of such speakers you can get a chance to network with them better.

4) Have attractive business cards

Everyone has business card that contains the contact information. But if you really want people to remember your card details or store it, you need to make it stand out. Design a very attractive and creative business card, which will help you to network better.

5) Bring something new to the table

Always remember that most people are at the networking event for the same thing. So you need to do your research and try and stand out among the entrepreneurs so that you are able to bring something new to the forum.

Final Thoughts

These are some of ways in which you can stay ahead of competition when you are at a networking event. With the growing number of startup and limited resources, you need to make sure that you stand apart among them in order to get the resources allocated to you.

There are numerous mixers being hosted and you need to visit as many of them as possible if you want the best impact. It is quite important for you to network well, if you want people to invest in your startup or offer their expertise for the same.

Also Read:

Best Business Blogs For Entrepreneurs

Franchise Business: All You Need To Know

How To Use Pareto’s 80-20 Rule To Grow Your Business

ChatGPT and other free AI Marketing Tools

(This post was contributed by our guest author – Nidhi. She often writes for Booksrun.) 

The post How To Do Effective Networking In Startup Events appeared first on ProfitBooks.net.

All software cannot be like ProfitBooks, which offers powerful and 100% free inventory management and is also easy to use.

In this article, we discuss how inventory management works, and what free inventory management software you should use as a small business owner.

How Inventory Management Works

In simple words, inventory management refers to the process of ordering, storing, and using a company’s inventory. These include the management of raw materials, components, and finished products, as well as the warehousing and processing of such items.

A company’s inventory is one of its most valuable assets. Be it retail, manufacturing, food service, and other inventory-intensive sectors, a company’s inputs, and finished products are the core of its business.

A shortage of inventory when and where it’s needed can be extremely detrimental.

At the same time, inventory can be thought of as a liability. A large inventory carries the risk of spoilage, theft, damage, or shifts in demand.

Inventory must be insured, and if it is not sold in time it may have to be disposed of at clearance prices—or simply destroyed.  Read more on how surplus stock can be managed so that you don’t incur losses.

Anyway, for the above reasons, inventory management is important for businesses of any size. Knowing when to restock certain items, what amounts to purchase or produce, what price to pay—as well as when to sell and at what price—can easily become complex decisions.

Small businesses often keep track of stock manually and determine the reorder points and quantities using Excel formulas. This is often hectic and cumbersome.

Thankfully, technology has transformed inventory management systems for both online and offline retailers. Now retailers can sell more, grow faster, and run smarter.

Many businesses are now using free inventory management software to stay up in the game and scale their business.

Free Inventory management software makes accessing and updating a business’ stock possible from any location at any time using smartphones and tablets.

Many apps also include features like customer-facing product catalogs and processing sales; supplier and customer data management; order entry, editing, and tracking; as well as direct integrations with other physical and digital tools.

If you want to learn more, read our in-depth article on Inventory management.

Benefits of using software for inventory management

Simplified inventory management

The biggest benefit to using free inventory management software is that it makes the process of managing your inventory a whole lot easier, saving you time and money.

With supply and demand changing throughout the year and your stock levels continuously fluctuating, inventory management software helps to avoid the risk of human error by automating your key business processes.

Reduced risk of overselling

Overselling is a major challenge for online sellers, often resulting in loss of control, disappointed customers, and in some instances, being suspended from marketplaces such as Amazon and eBay.

That said, it is a selling challenge that is preventable by using the software. An inventory management software synchronizes your orders and inventory across each of your online marketplaces and eCommerce platforms.

This ensures that your stock levels are adjusted each time you make a sale.

Greater cost-savings

By streamlining your inventory management processes, you not only stand to eliminate the inventory costs associated with human error, but you can also benefit from further cost savings

Well to start with, it can improve your chances of shortening your supplier lead time through better supplier management relationships.

It also allows you to reduce excess and obsolete stock, not to mention the subsequent costs incurred, by establishing your par levels and calculating your safety stock.

Perhaps the biggest cost saving comes from automation. Poor inventory management can cause significant revenue losses, driven by avoidable errors including stock-outs and overstocks.

Want to know more effective ways to save yourself from losses? Check out our article on various inventory management techniques that you can use to cut losses.

Avoidance of stock-outs and excess stock

When it comes to managing your inventory, trying to maintain the right balance is a challenging task. After all, too little stock can lead to a stock-out, unhappy customers, and potential loss of sales.

On the other hand, having excess stock, can take up valuable warehouse space and incur unnecessary charges. Either way, you look at it, it comes at a cost to your business.

Fortunately, with free inventory management software, you can track low stock levels and identify the re-order points for each product, in turn avoiding the occurrence of stock-outs.

The ability to make more profitable business decisions

Effective free inventory management software can provide invaluable sales data, allowing for more data-driven business decisions.

As an example, with a more informed understanding of supply and demand, you can go some way to forecast sales trends, giving you a more competitive edge.

With access to reporting features and inventory metrics, many inventory management systems equip you with the tools needed to make strategic decisions.

But, why choose free software?

If you’re not sure which inventory management software to use then you should consider available free options, so you don’t have to commit to something you may find difficult to use.

Free inventory management software will get you used to using various features so you have a better idea of what you’re doing, and what you need. Moreover, it will help you at least get started!

It is such a good idea to have something in place and organized at the start of your business for managing your inventory, and if you have to change later you can usually export the data into whichever program you decide to switch to!

Also, it doesn’t cost you anything. This provides the ROI justification to implement it. Second, it helps you improve the customer experience you have to offer.

The free software automatically tracks your inventory and alerts you in case of a shortage. With this automation, you can significantly reduce the chances of order cancellation.

A free inventory management solution will trigger business growth in two ways: you save on software costs and reduce revenue losses due to canceled orders.

Let’s have a look at the top 10 free inventory management software:

1. Odoo – Free Inventory Management Software

Odoo Free Inventory Management Software

Pros

Odoo’s free inventory management software comes with a free downloadable version.

Its modern interface allows you to control and monitor your incoming orders, manufacturing orders, scrap products, pack products, receipts, and much more easily and quickly without any complications

Odoo Inventory is fully integrated with manufacturing, purchase, and sales and thus keeps every function on the same page.

The software allows you to automatically schedule all your orders based on your sales order request. It has various features like a mobile dashboard, advanced routing facility, and smart scheduling.

Cons

It gets expensive if you are planning to purchase multiple Odoo apps. One single standalone Odoo app is not sufficient to use.

2. Zoho Inventory

Pros

Zoho Inventory’s free version is perfect for small and growing businesses. It is a complete inventory control system that helps with creating sale strategies, managing reorder points, generating insightful reports, and much more.

With Zoho, Inventory status is automatically updated across all sales channels. Also, can track transfer orders using a specific batch or serial number. The key feature is its dashboard that gives you a quick view of sales order status- pending, invoiced, delivered.

Cons

The lack of BOM (Bill of Material) functionality is a huge disadvantage of this free inventory software. Companies are forced to use a more time-consuming functionality instead of this feature.

Also, there are issues in syncing real-time data when you are managing e-commerce orders.

3. Zhenhub

ZhenHub Inventory Management Software

Pros

ZhenHub is a cloud-based logistics and inventory management solution for small and midsize businesses (SMBs). Its free version offers inventory tracking, shipment tracking, and warehouse management.

ZhenHub’s USP is its shipping management functionality that integrates with multiple shipping solutions such as DHL and FedEx. It lets you schedule, manage, and track orders from these providers.

Cons

ZhenHub charges both sender and receiver fees for international transfers, which can make billing costly. It can sometimes take time for the shipping status to sync up with the shipper’s account.

4. InFlow

Inflow Free Inventory Management Software

Pros

Inflow is another ideal free inventory management software to keep your business running. It saves your time given to paperwork, helps in accurately meeting your customer’s requirements, and generates insightful reports.

It has a cloud-based as well as on-premise free inventory management system. All their plans include unlimited customers, warehouses, orders, and products. There is easy navigation because of the simple user interface.

Cons:

There are a lot of differences between the functionalities of on-premise and cloud-based solutions.

5. Ornavi – Free Inventory Management Software

Ornavi – Free Inventory Management Software

Pros

Ornavi combines a lot of business management processes, monitoring, and HR practices in a single hub from where users can also maintain inventory and purchase control.

The system offers simple, yet powerful stock management capabilities, such as importing suppliers’ price lists, rapid quote generation, and multiple units for monitoring and management (boxes, metrics, etc.).

A separate part of this system is dedicated to purchasing orders, where you get a clear view of your minimal stock levels, store manufacturer information, auto-generate orders for shortfalls, and record both lists and prices for each item.

Cons

It doesn’t give a comprehensive overview of tasks.

6. Partkeepr

Partkeepr – Free Inventory Management Software

Pros

PartKeepr is an open-source free inventory management software application developed to help companies reorder items in their stock, and always have a clear overview of the products they have for disposal.

With a blazing-fast search function and a variety of part data parameters being tracked, PartKeepr is a master of its skill, helping companies streamline relationships with distributors, and keeping their customers satisfied.

Cons

Parker requires some technical expertise to operate.

7. RightControl

Right Control – Free Inventory Management Software

Pros

RightControl offers you full control over your stock and inventory.

This inventory management software product is ideal for centralized warehouse management and is perfect for freelance and small-biz service providers.

But it can also be tailored to cater to larger enterprises due to its unlimited size ventures and functionality.

Some of its features include a modern and simplified system that puts in place accurate invoice management, constant stock level monitoring, order management, barcode scanning, and enterprise-level reporting mechanisms for you to enhance stock control.

Cons

Users can play around with it all they want, but with one catch: With the free version, all stock data is removed when the program is closed.

Make sure you’re aware of this before you enter your inventory, or you may end up wasting a whole lot of time.

8. Delivered

Pros

Delivered is a free inventory management software cloud solution, ideal for everyone from small online retailers to large E-commerce businesses. This software allows users to track and control both regular and damaged inventories.

Whenever you create a new customer order in Delivrd, a check is performed to ensure that you have enough available stock to fulfill your custom order.

Another unique feature of the Delivrd Inventory management system is that it allows one to control even the packaging materials.

Cons

It is not that powerful and doesn’t have advanced features

9. Stockpile

Stockpile – Free Inventory Management Software

Pros:

Stockpile Inventory is ideal for small businesses and individual users. It is simple and makes online inventory management efficient, easy, and quick. The software is a big time-saver.

Users, locations, and managed products are not limited. It has various features like an easy-to-use interface, a tiered access model to manage multiple locations at the same time, and excellent technical support.

Cons:

Some users consider the wait time for money transfers from account to bank a bit too long.

10. Profitbooks – 100% FREE Inventory Management Software

ProfitBooks – 100% FREE Inventory Management Software

ProfitBooks is the easiest-to-use free inventory management software on this list!

ProfitBooks offers endless advantages to using its free inventory management software solution. We’ve mentioned their top features and pros below.

Pros:

• Simplify Purchase Workflow: Create Purchase Orders and email them to your vendors with one click. You can allocate the inventory to desired warehouses at the time of recording purchase.
• Stock Control & Adjustments: Record stock transfer between warehouses, stock wastage, raw material consumption, and production of finished goods – from a super simple interface of this free inventory management software.
• Maintain Product Batches: Organise products in different batches and specify batch numbers, manufacturing dates, and expiry dates. This helps a lot if you are a manufacturer or deal with perishable goods.
• Create Multiple Users: You can add multiple users and even assign them specific roles. For example, an employee with an ‘inventory manager’ role can only access the inventory function.
• Maintain Multiple Warehouses: Create multiple warehouses to store inventory. You can even call them Store, Location, or Godown as per your business needs.
• Support Multiple Currencies: ProfitBooks Trade supports all the major currencies. You even get a report that shows gain or loss due to currency fluctuation.

ProfitBooks’s cloud-based inventory management system automates your unique workflows and accelerates purchase requisitions.

You can convert Purchase Orders to Purchases in one click. The system connects with accounts payable, cash management, and inventory, so you don’t have to enter the same information twice.

Cons: The mobile application of ProfitBooks’ free inventory management software can be improved, as the UI is not at par with the easy-to-use software on a desktop or PC.

Conclusion

In conclusion, finding effective and free inventory management software can be a challenging task. However, not all inventory software is created equal, and ProfitBooks stands out as a powerful, user-friendly, and 100% free inventory management software solution.

While there are many inventory management software options available, we’ve highlighted the top 10 free choices, with ProfitBooks standing out as a standout solution. It streamlines purchase workflows, offers robust stock control, and supports multiple currencies.

Choosing free inventory management software is a wise move, allowing you to get acquainted with various features, improve the customer experience, and reduce the chances of order cancellations.

ProfitBooks, in particular, offers a user-friendly experience. So, make the right choice for your business needs and watch it thrive. Get your 100% FREE account now!

Also Read:

Top Ten Business Software With A Free Plan

Best FREE Lead Generation Software For SMBs

Top 5 Software To Help Sole Traders.

5 Kickass Cold Email Software

Free accounting software for small businesses

The post Top 10 Free Inventory Management Software For Your Small Business appeared first on ProfitBooks.net.

These business blogs are written to appeal to the broadest possible audience, which in turn makes their content generic and useless to real businesspersons.

Instead, try these business publications because they have something real and important to show, teach, and learn.

We have carefully picked and listed the 10 best business blogs for you in 2020. Let’s take a look:

1. Fox Business Blogs

People were worried about Fox’s future after it was bought by Disney, but the corporation is as strong as ever. The Fox Business publication is one of the strongest news companies in the business world because of the sheer number of resources it has at its disposal. It is ideal for businesses who need to keep their finger on the pulse of the world economy

2. Resumeble

Originally conceived as a business services website, Resumeble’s members soon started adding fresh content to the website and before you knew it, their website was loaded with business tips, help, information, and advice. Over the years, the publication has matured into a strong resource for anybody in business. The magic behind this publication is the sheer weight of talent that goes into it. Behind the scenes, there are teams of academic and business experts who are all adding their knowledge and thoughts to the stewpot. It makes for a great read.

3. Profitbooks

ProfitBooks is primarily an online accounting software company. However, their business blogs are a must-read!

If you are a business owner looking for tips and ideas on how to scale your business, beat your competitors, and learn about various technical resources that can help you with your business, you should check out their blog. You can explore various resources like customer stories, information for accountants and re-sellers, events, press mentions, and much more on their page.

Its creative and compelling articles and case studies are wonderful ways to learn about entrepreneurship, marketing, technology trends, and so much more. Each blog is well-researched and jam-packed with information, which gives you new ideas and helps you succeed.

4. The Economist – Business Blogs

Some of their business articles lean in an almost 19th-century Classical Liberalism manner. In turn, you get business articles with an unusual slant. Everybody agrees that bias in business publications is a bad thing, but when it takes such an old-fashioned liberalist flavor, The Economist is well worth taking a look even if only to hear a story from a different viewpoint.

5. Fixbracket

Fixbracket is the most versatile blog page in this list. From cryptocurrencies and the metaverse to their super engaging comparison blogs, including one specially written for marketers looking to leverage Instagram Threads, they cover everything hot and happening in the B2B space.

Their new line of AI and SEO blogs is a useful resource for any business owner, just like their detailed guides for marketers.

Although a marketing-first blog, Fixbracket is growing at a tremendous speed in almost every branch of business blogs. They have started attracting audiences from almost every industry and are focused on expanding themselves to become the one-stop shop for all business blogs.

This all-rounder business blog is best recommended for marketers, UI/UX designers, podcasters, and heck, even techies who’d like to know about every single product update from Google Analytics 4 to Spotify.

If you’re in any digital business whatsoever, you will find something of value from Fixbracket. Check it out, we do recommend it!

6. Forbes

Everybody knows that Forbes is the business world’s trashy magazine. It has so many agendas that it could have been edited by a child. Yet, if you are interested in the business world, isn’t it okay to read a bit of fluffy nonsense from time to time? The information you glean will be useless, but does every business publication have to be a learning experience?

There are times when it is okay to turn your brain off for a while and read something trashy like articles on how millionaires spend their money, or how a Millennial has wasted her legacy and is bankrupting the family. Their stories are interesting, even if noneducational, such as learning how somebody quit her job at Netflix and became rich or finding out that a rapper bought a basketball team without knowing it was in debt.

7. Savings.Tips

A little like eCheck.org, Savings. Tips business blogs were originally designed to help people save money on things like doing their washing and dog food, but it was their business-related posts that gathered the most attention. Now, the website has a very strong digital marketing focus that draws in all types of businesses from advanced manufacturing to venture capitalists. The great thing about this publication is that it doesn’t pull its punches when it comes to details. Some of the articles are the size of e-books, and many of them rival the how-to Dummies books that were popular in the late 00s.

8. NewsMax Finance

NewsMax Finance is a publication for advanced business readers. There is nothing for the layperson in this publication, which is bad for overall readership, but great for people who want to get to the meat of the issue without all the usual laypeople explaining fluff. It is also good for investors, and it would have probably made it to the top of this list if it didn’t have such stupid adverts between its stories.

You can be flipping from one story to another and you see one about how chocolate can cause you to lose weight, and it takes a few seconds for you to realize that it is an advert. The worst part is that they look so out of place between highly advanced business articles. If they were nestled between Forbes articles, then you may not look twice, but the fact they are nestled between such high-level content seems to make the adverts all the more offensive to the eye.

9. National Review Business

Most people know the National Review for its news function, but it has very strong business blogs and an economy element that is very cleverly put together. The posts are not written by regular authors, they are written by analysts, and many times their work takes on an almost prophetic quality. They do this by analyzing the current world state according to news streams and then incorporating it into their articles. So good are their analysts that they can predict things like oil, house, and bitcoin price increases to the month.

10. Post Planner – Business Blogs

One hesitates to use the phrase “Pop media,” but Post Planner is one notch above being a glossy magazine. There are times when you want business information that isn’t laden with details and facts. There are times when you want a few quick and easy answers in an easy-to-read format, and that is exactly what the Post Planner has to offer. Plus, many people find the original art style more engaging. This is the sort of easy reading you may enjoy if you are pressed for time or are looking for a break from the heavier stuff.

Summing Up: What Business Blogs Will You Read?

From the international business cum politics side, you have Fox Business Blogs and for quick reads and detailed guides, Fixbracket is here to save the day! If you’re looking to get finance-related business articles, you can hop over to Forbes and if you simply want marketing-related tips for your business; just check out this guide on LinkedIn groups that SMBs follow.

All in all, we’ve covered some of the most comprehensive and niche business blogs that small business owners and entrepreneurs will benefit greatly from.

Author Bio: Ava Williams is a career development specialist. She is interested in traveling, online learning and courses, and the job industry. Ava enjoys writing on education, career, and blogging tendencies. Find out more about Ava’s work by visiting her career blog. You can also follow her on Twitter and LinkedIn

The post Best Business Blogs For Entrepreneurs appeared first on ProfitBooks.net.

In the present day, the advancement in technology has eliminated the need for large paper files. Instead, small business owners can use free accounting software that is available online to manage all financial aspects of their business.

What is accounting software?

An accounting software assists bookkeepers and accountants in recording and reporting a firm’s financial transactions.

With recent technological trends, accounting software has become an invaluable resource for modern business. The software allows detailed tracking of financial transactions and near-instantaneous reporting and analysis.

Before accounting software, these tasks had to be performed by hand, using large transaction journals.

Manual reporting was generally impractical due to the labor involved in consolidating all the entries.

Accounting software automates these tasks, reducing the costs of accounting and allowing better financial decision-making through timely reporting.

Why you should use an accounting software

1. Accuracy

You can achieve increased accuracy by reducing or eliminating human errors in calculation. Manual bookkeeping processes involve making a lot of mathematical calculations by hand.

An incorrect calculation early on in the process could have a great impact on your end balance. Computers are virtually incapable of making such errors.

You can achieve speed and accuracy too without incurring more costs. This is the number one reason why you should start using accounting software.

2. Speed

The benefits that you get from the speed and efficiency of accounting software often go hand-in-hand with reduced overall cost.

The use of an accounting program allows each member of the accounting team to do more in a given time, which means that, overall, a smaller team is needed.

This, in turn, can reduce your accounting department’s payroll and administration costs.

3. Tax Filing

Filing your business taxes can be a complex process, requiring you to keep close track of all your business’s transactions.

Accounting software benefits include making this process easier by ensuring that all of your business’s financial details are in one place.

In addition, some companies like Intuit produce tax return software that integrates with their accounting programs.

This allows you to calculate your return itself semi-automatically, rather than spending time and resources working out the necessary details by hand.

4. Business Reports

You constantly need your invoices, transaction history, and details of your stock which are parts of your total business report.

It can be exhausting to sit down with papers and make the reports. The accounting system gets those reports ready for you on its own.

What should you look for in accounting software?

If you have a business, you need accounting software to record your income and expenses. Ideally, this is the first piece of software you should purchase when you start the business.

However, most business owners get one only when they need to pay taxes or apply for loans.

So, how to choose the right accounting software for your business? This can get confusing as there are plenty of products available in the market today.

Let’s make your job easy by listing down some important filtering criteria that you should consider before you invest in an accounting system.

It is important to be careful in choosing which one to implement as there is no one-size-fits-all solution for your own business, hence get to know your own needs through business evaluation.

Here are some examples of things to keep in mind when choosing accounting software:

Features

With the help of an accountant, you should check whether the product’s features match your needs because software solutions are not created equal.

Overall Value

Take into account the software’s overall value based on its set of features and functionalities.

Scalability

Growth is one of any business’ goals; hence, factor in scaling to ensure the software will grow with you as your needs become more demanding.

User-friendly:

Take into consideration how long it will take to learn the software. Choosing one that’s user-friendly is essential to immediately implement the system.

Integrations

Maximizing what you can do in the software is achieved with a robust marketplace of integrations that will enhance the system’s functionality and core capabilities.

Still, confused about how to choose the right accounting software for your business? Read our article to learn some tips on how to choose the best accounting software that suits your business and fits your needs.

Let’s have a look at the top 10 free accounting software in Africa

1. Quickbooks

Quickbooks online accounting software

Quickbooks is the first choice for many African business owners as this American company has been marketing aggressively in the region.

Quickbooks is not restricted to a particular range of business models or industries. It is utilized by every kind of company imaginable. They’ve done well by releasing several versions of their software to the demands of the industry.

The primary market for Quickbooks desktops is business and professional services. Professional service companies and independent freelancers are increasingly using Quickbooks online.

Contractors, manufacturers and distributors, lawyers, and even retail and restaurant enterprises are among the target markets for Quickbooks Enterprise. This means that QuickBooks appears to be effective and useful in nearly every industry.

Pros: Pros of Quickbooks: Quickbooks offers a user-friendly interface, time-saving automation, robust reporting, third-party integrations, and excellent customer support.

Cons: It can be costly, has limited scalability, frequent updates, potential data security concerns, and a learning curve.

2. Zipbooks

Zipbooks has a modern interface and a variety of features that make accounting easy for the user. There are different tiers, but the starter tier is the only free option.

In the starter package, the user gets unlimited bookkeeping. You can use PayPal and credit cards for monetary transactions. The free option allows you to: Manage your accounts receivable.

Manage your accounts payable. Connect credit card and bank accounts – You are only authorized to connect one credit card or a bank account for each user. If you want to connect more, you have to upgrade to the paid-for packages.

Pros

ZipBooks provides powerful and simple-to-use accounting software designed to help small businesses in Africa move to the next level.

ZipBooks’ free starter option includes unlimited invoicing, unlimited vendors and customers, unlimited bookkeeping, the ability to connect and manage one bank account, and a business health and invoice quality score.

Cons

ZipBooks falls short in three main areas: the number of users is limited to one, you can only connect one bank and credit card account, and you cannot run a statement of cash flows.

Two of these limitations can only be resolved by upgrading to a paid subscription.

3. SlickPie

SlickPie provides basic expense management for start-ups and small businesses in Africa.

This easy-to-use expense management software provides everything a small business will need for slick and timely accounting, including straightforward invoicing and detailed reports to help keep their business finances healthy.

Pros

The free version of this accounting software allows for unlimited automated receipt entries, 10 different companies on one account, and email support. It also allows you to create quotes and estimates that can easily become professional invoices.

SlickPie also allows you to connect your PayPal and Stripe accounts for free.

That means customers will be able to fulfill their invoices with card or PayPal payments online—and you’ll simply have to pay the standard transaction fees that PayPal and Stripe charge.

Cons

Compared to its competitors, SlickPie falls short in two areas: accounts payable is a manual process and you can’t run a statement of cash flows.

4. Akaunting

Pros

Akaunting offers many of the most necessary features that a small business accounting software should have.

Within this technology, you’ll be able to invoice, sync accounts, track expenses, set up recurring bills, manage customers, and manage vendors.

Cons

Akaunting is missing a double-entry accounting system. Customers will need to pay an extra amount per year to install a separate double-entry accounting module.

Akaunting also does not automatically pull in data from bank and credit card accounts. Akaunting is also missing essential financial statements such as the balance sheet and statement of cash flows.

5. ProfitBooks

ProfitBooks creates a pretty welcoming environment for businesses to thrive. What’s good about them is they’ve made it super user-friendly, so you don’t even need to hire an accountant. I mean, even if you’re clueless about accounting, you can handle it with ease.

Invoicing is good. They offer 25 invoices per month even on the FREE lifetime plan. The invoices are very professional yet simplistic to understand.

They’re not big on direct integrations with other platforms, but they’ve got a workaround using Excel to move data around if you ever need it. Profitbooks also has fantastic inventory management providing support for a well-maintained record of items. The inventory could also be secured by controlling its access.

One more thing that sets ProfitBooks apart is its simplicity.

They don’t overwhelm you with super complicated reports. Instead, they keep it focused on what matters. It helps you concentrate on the essentials, which later leads to a more solid and non-negotiable analysis of crucial points, resulting in steady but significant growth.

They’re one of the very few accounting software providers worldwide that offer a lifetime FREE plan. It’s not some stripped-down version either; it’s quite valuable, especially for startups and small businesses.

Pros: The bank reconciliation feature is on point. The biggest pro would be the simplicity of the usage of the software and the very small learning curve. The best part is that it is 100% free to use for a lifetime.

Cons: The mobile app feels slightly chunky and can be improved. The software is not the best suited for integrations or automatic invoice generation.

6. ZohoBooks

Zoho Books is online accounting software that manages your finances, automates business workflows, and helps you work collectively across departments.

Zoho Books has been designed in such a way that it lets you connect with your bank, fetch feeds, and categorize transactions based on rules. Furthermore, you can automate complex business scenarios using custom functions and workflows to save time.

Pros

Right from negotiating deals to raising sales orders and invoicing, Zoho Books handles mundane accounting tasks so you can focus on your business.

Cons

Customer Support and the lack of detail in payments received. Also, Zoho doesn’t have an API integration with the system

7. FreshBooks

Freshbooks is a very popular cloud accounting app for small businesses in Africa.

It is used by about five million customers worldwide offering a wide range of features, from cloud-based invoicing to an online payment gateway. You’ll benefit from its robust reporting functionalities that offer insights for making more informed decisions.

Users can snap a picture of receipts or link to the bank for quick expense tracking. You can transfer your timesheet data to invoice and collect payments more quickly.

Pros

Excellent API, customer service, recurring billing & autopay functionality, and an easy-to-use interface.

Cons

Despite a wide range of excellent features, users have pointed out a few minor things that can be improved in FreshBooks: its metrics, goal setting, and reporting features can be better.

One user also found bugs in FreshBooks’ email click-throughs and automated expenses which did not function to his liking.

8. Xero

From expenses to capturing bills, projects, and payroll, Xero is made to keep your business moving.

Pros

Easy to use, easy to input data and there are often little popup boxes to explain what elements are. It’s cloud-managed, so there is no need to download any software or store anything locally.

Cons

1. Some of the automatic accounts Xero suggests you reconcile to are not correct so it is important to double-check each transaction before reconciling.
2. The way the contacts database has been developed could be improved to make importing and exporting data easier.

9. ZipBooks

ZipBooks provides you with a smart way to track all your transactions, keep on top of what you owe and who owes you, and figure out how much your business is making.

Pros

ZipBooks provides powerful and simple-to-use accounting software designed to help small businesses move to the next level.

ZipBooks’ free starter option includes unlimited invoicing, unlimited vendors and customers, unlimited bookkeeping, the ability to connect and manage one bank account, and a business health and invoice quality score.

Cons

ZipBooks falls short in three main areas: the number of users is limited to one, you can only connect one bank and credit card account, and you cannot run a statement of cash flows.

Two of these limitations can only be resolved by upgrading to a paid subscription.

10. GNU Cash

GnuCash is one of the best open-source accounting software that is 100% free. It offers simplicity, flexibility, and amazing features such as handling multiple currencies and some payroll features.

The application is available on Android, Linux, OpenBSD, Windows, GNU, and macOS devices. Some of the other features are managing accounts payable and receivable and managing employee expenses.

Pros

GnuCash is good free accounting software for businesses that want open-source accounting software that you can customize to meet your needs.

For example, if you need a report that is not in the list of report options, you can build it from scratch in GnuCash because a programmer or developer can change the code behind the scenes.

Cons

First, you can only have one person in the file at a time. Second, your bank and credit card information will not automatically download into GnuCash.

Instead, you have to obtain the file from your financial institution and then import the data into GnuCash.

Conclusion

We hope you learn something of value from this article listing the best accounting software used in Africa.

Most SMBs from Tanzania, Kenya, South Africa, Nigeria, Mozambique, and many other countries prefer using cloud accounting software which does not require any installation.

ProfitBooks cloud accounting software is just the solution to this problem and the #1 choice for many African businesses. Our powerful bookkeeping system allows you to track all expenditures in one place.

Get your 100% FREE account now!

The post Top 10 Free Accounting Software In Africa appeared first on ProfitBooks.net.

BAS is like a financial report card that Aussie businesses must submit regularly to the Australian Taxation Office (ATO). In this article, we’ll dive into the world of BAS, unraveling its purpose, how it works, and why it matters to your business.

Whether you’re a seasoned entrepreneur or just starting, understanding BAS will help you stay on top of your tax obligations and keep your business financially healthy.

Business Activity Statement (BAS): A Brief

Think of a BAS like a report card for your business, but instead of grades, it’s all about your finances.

Depending on how big your business is, you might have to fill it out anywhere from once a year to as many as twelve times. The Australian Taxation Office (ATO) takes this info and uses it to figure out if you owe them money or if they owe you. And it’s not just about the GST; it’s also used to calculate other taxes like income tax, employee tax, and even taxes on fancy cars, wine, and fuel.

So, keeping your BAS in good shape is essential for your business’s financial health.

Business Activity Statement (BAS) Sample Lodgement

Information You Need To Lodge BAS

Lodging your company’s business activity statement is a task, but an easy one.

You should keep track of the GST you’ve gathered from your sales and the GST you’ve paid on your purchases. While you don’t have to send in your tax invoices when you submit your BAS, it’s important to keep them handy, just in case the ATO wants to check them later.

Since your BAS might be used for various tax purposes, you might also need to share more details about your business, its earnings, and any staff you have onboard.

It is recommended that you read about the business activity statement on the official ATO website.

Am I Eligible For Business Activity Statement (BAS)?

In Australia, most businesses are eligible to lodge a Business Activity Statement or BAS.

If you’re running a business that is registered for the Goods and Services Tax (GST), which is generally required if your annual turnover is $75,000 or more (or $150,000 or more for non-profit organizations), you’ll need to submit a BAS.

Additionally, businesses operating as sole traders, partnerships, companies, or trusts are also typically required to lodge BAS. However, it’s crucial to check with the Australian Taxation Office (ATO) or a tax professional to ensure your specific business meets the eligibility criteria and stays compliant with BAS requirements.

Before you read further on how to lodge for a BAS in Australia, we recommend that you read our guide on the taxes that businesses have to pay in Australia. This will help you get a better understanding of how the taxation system works in the land down under.

How To Prepare Your Business Activity Statement (BAS)

Before we get into how you can lodge your BAS, let’s first see how you can prepare it.

Here’s a simple five-step procedure for preparing a Business Activity Statement (BAS) for a small business in Australia:

1. Collect Records: Gather all financial records, such as invoices and receipts, for the reporting period.
2. Log In: Access the ATO Business Portal and log in using your credentials.
3. Complete BAS Form: Fill out the BAS form sections accurately, including GST, PAYG withholding, and other relevant details.
4. Review and Submit: Double-check all figures and information for accuracy, then submit your BAS through the portal.
5. Payment (if applicable): If you owe taxes, make the necessary payment by the due date.

Remember to maintain organized records and stay informed about any changes in tax regulations that may affect your BAS reporting. If you have complex financial situations, consider seeking advice from a tax professional or accountant.

Procedure To Lodge BAS In Australia

Making sure you submit your BAS (Business Activity Statement) and pay any outstanding amounts on time is crucial.

Now, you’ve got a few choices when it comes to sending in your BAS and reporting stuff like GST, PAYG installments, PAYG withholding tax, and other taxes to the Australian Taxation Office (ATO).

If you’re unaware of the PAYG system in Australia, you can refer to our sole trader tax guide, in which we’ve extensively talked about this.

If you’re looking to get detailed instructions on how to pay your business activity statement, it’s recommended that you refer to the official guide on BAS payment by ATO.

What Are The BAS Lodgement Options?

Lodge BAS Online

Many businesses handling their BAS (Business Activity Statement) often choose the electronic path. It offers some clear advantages:

First, it’s flexible. You can submit your BAS when it suits your schedule.

Plus, there’s a handy two-week deferral option. This means you get an extra two weeks to both lodge and pay your BAS, which can be quite helpful.

If you’re due for a refund, going electronic could speed up the process. Who doesn’t want their money faster, right?

Lastly, it’s a great way to avoid errors. You can double-check everything before hitting that ‘submit’ button, ensuring that your numbers match your expectations.

Please go through the official BAS lodgement guide by ATO to know the exact procedure of lodgement specific to your type of business. They have three types of online lodgement options based on the legalities of your company registration type.

Mail Your Business Activity Statement

When it comes to sending in your completed BAS form, you can use the pre-addressed envelope that comes with your BAS package.

If you happen to make a mistake on your paper BAS, don’t fret – you can simply use white-out to correct it.

But, if that pre-addressed envelope goes missing, no worries. You can send your BAS to this address instead:

Australian Taxation Office
Locked Bag 1936
ALBURY NSW 1936

And if you’ve lost or haven’t received your paper BAS in the first place, just give us a call at 13 28 66 to get a copy.

Please keep in mind that mailing isn’t an option if you’re lodging your BAS through an online channel.

Lodge Your Business Activity Statement Via Your BAS Agent

Here’s a useful option: You can have a registered tax or BAS agent handle the lodging, varying, and payment process for you using their preferred electronic platform.

When you go this route:

1. Your agent can see any BAS and reminder messages that come your way through their online service.
2. You can still check your BAS yourself via Online services for business or myGov, even if your agent is managing it on your behalf.

If you’re interested in finding a registered agent, you can visit the Tax Practitioners Board for assistance.

Lodge BAS By Phone (Especially if you have nothing to report)

If you’ve got nothing to report for the period and need to submit a ‘nil’ BAS, there’s a handy service for that:

You can do it by phone at 13 72 26. It’s automated, so you can call at any time, 24/7.

Just make sure you’ve got your BAS document identification number (DIN) ready when you call.

Wrapping Up: Where’s My BAS?

How you choose to lodge your BAS affects how you receive your statements. If you opt for Online business services, your next statement will be accessible there.

When you use ATO’s online services, we’ll send you an email notification 21 days before the due date, letting you know when your BAS becomes available. Just ensure your contact details are current.

It’s worth noting that a single electronic lodgment can alter the way your next BAS is issued. After your online submission, your BAS will be sent electronically.

Preparing your business activity statement requires a lot of financial tracking, especially keeping track of taxes, invoices, payroll, and much more.

ProfitBooks is a great solution for tracking all your finances in one place!

As a cloud accounting software, ProfitBooks travels with you, wherever you work. We’d recommend you give it a try and get a 100% FREE account now!

Also Read:

Australian Business Number (ABN) Guidelines

What Taxes Do Small Businesses Pay In Australia?

What Is VAT or GST In Australia?

How To Calculate GST In Australia?

Sole Trader Tax In Australia

The post What Is Business Activity Statement (BAS) In Australia & How To Lodge It? appeared first on ProfitBooks.net.

In this article, we will talk about all four of these business structures, how they operate and what are tax systems surrounding them.

So let’s get right into it!

What Is A Business Structure?

A business structure is like the blueprint for how a company is organized and operates. It’s how a business is legally set up and managed. Imagine it as the foundation of a house – it determines the rules and roles for everyone involved.

There are different types, like sole proprietorships, partnerships, corporations, and LLCs. For Australia specifically, the four types of company formations are mentioned below in the next section.

For example, let’s say you and a friend start a bakery together. You can choose a partnership as your business structure. In this setup, both of you share the responsibilities and profits. It’s like a team effort.

On the other hand, if you decide to open a tech company and want to raise money from investors, a corporation might be better. In a corporation, you can issue shares to investors and have a board of directors to make decisions.

The choice of business structure can impact taxes, liability, and how you can grow your business, so it’s an important decision for any entrepreneur.

What Are The Four Business Structures In Australia?

The 4 Business Structures In Australia

In Australia, there are four main ways you can structure your business, and each has its own pros and cons. You can run your business as a sole trader, partner up with someone in a partnership, go with a trust, or establish a company.

Choosing the right business structure is a big deal when you’re starting out because it affects how you’ll deal with taxes and what kind of paperwork you’ll have to do as your business grows.

To make this decision, think about stuff like how many people are in your business, what exactly your business will do, how much money you’ll make, and how big you want your business to become.

We’d recommend you go through our starting a small business guide in Australia, to know more about how you can choose the right business structures for your endeavor.

Now let’s explore them each one by one.

1. Sole Trader

This is the most basic way to run a business.

A sole trader is someone who runs the whole show by themselves. Even if you hire others to help, you’re the one in charge, and you’re legally responsible for everything the business does. In the eyes of the law, your business and you are like a package deal – you both use the same tax and business numbers.

Plus, any money the business makes or debts it racks up are all on your shoulders; you can’t split that responsibility with anyone else except yourself.

We have discussed extensively the sole trader business models and how they compare to a company in Australia in our sole trader vs company blog.

How Does The Sole Trader Tax Work In Australia?

If you’re running your own business as a sole trader in 2024, the amount of tax you owe will be based on how much money you make. This means the profit you earn from your business after subtracting allowable deductions.

As a sole trader, you’re required to pay taxes at your individual tax rates. These rates can vary, but for the 2023-24 financial year, they look like this:

1. If your income is up to $18,200, you won’t have to pay any tax (this is known as the tax-free threshold).
2. If your income falls between $18,201 and $45,000, you’ll pay 19 cents for every extra dollar over $18,200.
3. If you earn between $45,001 and $120,000, you’ll pay $5,092 plus 32.5 cents for each extra dollar over $45,000.
4. For incomes ranging from $120,001 to $180,000, you’ll owe $29,467 plus 37 cents for every additional dollar over $120,000.
5. If your income exceeds $180,000, you’ll pay $51,667 plus 45 cents for every extra dollar over $180,000.

Keep in mind that tax laws and rates can change over time, so it’s crucial to stay updated with any revisions.

Additionally, as a sole trader, you might have other taxes to consider. For instance, if your business’s annual turnover reaches $75,000 or more, you’ll need to pay a 10% goods and services tax (GST). There’s also the Medicare Levy, which amounts to 2% of your taxable income.

Do go through our sole trader tax guide to know all the legalities and technicalities of this domain.

2. Partnerships

When two or more people team up to run a business together, it’s called a partnership. They share the business earnings. Making a partnership is usually easy on the wallet.

Most partnerships are created using a partnership agreement that spells out who does what and who gets what.

Here’s the catch: the partnership itself doesn’t get taxed; instead, each partner pays tax on the money they make from the partnership. But there’s a downside too.

Partners share not just profits but also the legal responsibility for the business’s debts and obligations. This means if the business can’t pay its bills, the partners are on the hook. Plus, disagreements among partners can be a problem and harm trust in the partnership.

How does partnership tax work?

In a partnership, you and your business buddy don’t have to pay income tax as a team, but you have to file a special tax form for the partnership every year. This form tells the government how much money the partnership made and who gets how much.

When the partnership earns money or loses money, each partner includes their part in their own tax report. Even if you don’t actually get the money, you still have to tell the tax folks about it.

On the other hand, the partnership also has to fill out its own tax form to share info about how much money it made, what it spent, and who got what.

When it comes to things like selling stuff and making a profit, each partner is responsible for figuring out their own share of the gain or loss for tax purposes.

3. Trust

In a trust, there’s someone called a trustee who looks after the property or stuff in the trust and runs the business on behalf of the folks who benefit from it.

This trustee can be a person or a company.

But how do you create a trust? Compared to other business structures, a trust is usually not for profit.

To create a trust, you need a formal Deed, and the trustee has to do yearly tasks. This can make it quite expensive and complex.

Now, the good part about trusts is that they’re flexible when it comes to how money is shared among the beneficiaries, and you can send money to people with lower incomes to save on taxes. Plus, if you set up the Deed right, it can protect your assets.

But, the downside is that trusts can cost a lot to create, and there are extra rules and legal stuff to follow.

What taxes do trusts pay?

When it comes to trusts, the way taxes work depends on who benefits from it. If you’re an adult or a company that benefits from a trust, you’ll pay taxes on the income you get from the trust based on your regular tax rate.

Now, for non-residents and minors, things are a bit different. The person in charge of the trust, called the trustee, pays the taxes on their behalf. But, these beneficiaries might still need to report that income on their own tax returns. They can also get a tax credit for the tax paid by the trustee.

If the trust gives money to minors, there might be higher tax rates. This applies to folks under 18 years old.

Sometimes, there might be some money in the trust that no one can access right now. In that case, the trustee pays taxes on that portion of the income. If the trust doesn’t have any income, the trustee pays taxes on any net income.

Usually, the trustee is taxed at the highest individual tax rate, except for some special trusts like deceased estates, which have different tax rates.

4. Company

A company is like its own legal character, able to own stuff under its own name.

When you see “Pty Ltd” after a business name, it means that the business is a registered legal thing doing business on its own. Shareholders own a company, and directors are the ones steering the ship day-to-day. Any profits a company makes go to the shareholders as dividends.

The cool thing is, if the company goes into debt, the shareholders usually don’t have to pay from their pockets. The company’s debt is limited to what the company owns.

Companies have to follow the Corporations Law, which means directors have to put the company’s interests first. But, starting a company and keeping up with all the legal stuff can be expensive. And you also have to share important info with the public.

It would be better if you go through our guide comparing companies and sole traders so that you get a good idea of how a company can act similarly to an individual entity while still being differentiated legally from a sole trader.

What taxes do companies have to pay?

Although we’ve discussed extensively the business taxes in Australia, we’ll briefly mention all the ‘need-to-know’ about it. As this is a very vast topic, we recommend you go through that guide if you’d like to know in depth about this.

There are three taxes that companies in Australia have to pay: Company or Income Tax, Capital Gains Tax (CGT), and Goods and Services Tax (GST). Other than that, there are some minor taxes as well like fringe benefits tax and payroll taxes.

All the taxes that we’ve mentioned above are dynamic and the tax rate depends on the company size and turnover. It is only GST that is fixed at 10% and has always been since its inception in the year 2000.

Conclusion

Every business is unique, and no two business owners have identical situations. It’s a good idea to have a chat with an accountant or lawyer to discuss the expenses and potential drawbacks of different business structures. This way, you can ensure that you’re picking the perfect business setup that suits your specific business and its future requirements.

Whatever your business structures may be, handling your finances properly is a must. ProfitBooks allows just that, by providing powerful bookkeeping and financial records on the cloud. So your business travels with you! Get your 100% FREE account now!

Also Read:

Starting A Small Business In Australia

What Taxes Do Small Businesses Pay In Australia?

ATO Tax Deductions: 14 Things You Didn’t Know About

Sole Trader vs Company: What Are The Key Differences?

Sole Trader Tax In Australia

The post What Are The 4 Business Structures In Australia? appeared first on ProfitBooks.net.

Taking care of the legality is the number one priority, and every legal step has guidelines that must be followed.

On that note, in this article, we’ll discuss what an Australian Business Number is, how to apply for one, and most importantly; what guidelines must be followed.

So let’s get started!

What Is An Australian Business Number (ABN)?

Australian Business Number Official Website

An Australian Business Number, or ABN for short, is like a special ID card for businesses in Australia. It’s a unique 11-digit number that helps the government and other businesses identify your company.

Think of it as your business’s fingerprint. Just like every person has a unique fingerprint, every business has a unique ABN. This number is used for all sorts of important stuff, like paying taxes, invoicing, and dealing with other businesses.

Here’s an explanation with a hypothetical example:

To illustrate, consider the hypothetical establishment of “Sydney Tech Solutions,” an IT consulting firm:

Upon launching the business, obtaining an Australian Business Number becomes imperative. The ABN acts as an official business code, akin to a Social Security Number for individuals, ensuring the business’s legitimacy.

Once Sydney Tech Solutions secures its ABN, it can include it on invoices, contracts, and tax returns. This numerical designation is indispensable because it allows the government and other businesses to accurately identify and track the company.

Why One Needs An Australian Business Number?

Having an Australian Business Number is essential for several reasons.

First, it’s required by law if you’re operating a business or trading as a sole trader. It helps the government keep tabs on businesses for tax purposes.

Second, many suppliers and customers may ask for your Australian Business Number when dealing with you, as it establishes your business’s legitimacy.

It also makes it easier to claim GST credits and facilitates smoother transactions. In short, an ABN is your business’s official badge, and not having one can cause unnecessary headaches.

How Much Does It Cost To Get An ABN?

Getting an Australian Business Number (ABN) is usually free! Yep, no upfront costs involved.

The Australian government doesn’t charge a fee for ABN registration. However, if you use a tax agent or service provider to help you apply, they may charge a fee for their assistance.

What Is ACN, and How Does It Differ From ABN?

An Australian Company Number (ACN), also known as the Australian Registered Body Number (ARBN) is a unique nine-digit identifier assigned to companies registered in Australia. It’s like a business’s fingerprint, helping track its activities.

On the other hand, an Australian Business Number (ABN) is also a nine-digit identifier, but it’s for all types of businesses, including sole traders and partnerships.

Here’s the key difference: ACN is exclusively for companies, while ABN covers a broader spectrum of businesses. ACN is essential for legal purposes, like signing contracts and financial reporting, while ABN is primarily for tax and government dealings.

So, if you’re a company, you’ll need an ACN, but most businesses will also require an ABN for tax and business transactions.

ABN Registration: What You Need & How To Get One

Getting your own ABN is a breeze. Just hop on over to the Australian Business Register (ABR) website and fill out a quick online form. It’ll only take you about 15 minutes, so no need to block out a whole afternoon for this task.

Now, here’s the important part: make sure you’ve got all your info spot on, especially your business name. The ABR will double-check it against their “Not-For-Profit database” to ensure it’s not already claimed by another nonprofit in Australia. If you find a name clash, you’ll have to pick a different one.

Timing matters too.

Start the ABN process early to avoid extra fees if you’re near your registration deadline. They’ll hit you with an extra charge if you wait until the end of the month.

A couple more tips: You must be an Australian resident, or if your company’s based overseas, you’ll need a representative in Oz. You can even apply without a company name yet. The application fee is $100 plus GST, which adds up to around $110.

What Do You Need To Apply?

Below are the things you should keep handy while registering for an ABN. The list may include some extra documents, and depending on your situation, you will need different sets of documents. It’s always recommended that you consult an accountant or a tax agent before you gather the necessary documents for your needs.

• Previous ABNs: If you had one before, bring those along.
• Your Tax File Number (TFN): Don’t forget it! Also, make sure you’ve got TFNs for your partners, directors, and trustees if they’re in the mix.
• Your ACN or ARBN: If you’ve got an Australian Company Number (ACN) or Australian Registered Body Number (ARBN), keep them handy. Good news – you can apply for an ACN and ABN at the same time if you don’t have one yet.
• Your Entity’s Legal Name: The official name on all your legal documents. You can sort this out while applying for your ABN too.
• ABN Start Date: This should match the date you plan to kick off your business activities. Don’t go more than six months into the future when applying.
• Professional Advisor’s License Number: If you’ve got a financial wizard on your team with something like an Australian Financial Services (AFS) license, jot down their license number.
• Tax Agent Registration Number: Needed for tax-related stuff, so keep it in your records.
• Authorized Contacts: These folks should have the green light to make changes for your business.
• Details of Associates: Shareholders, directors, etc. – their info varies depending on your entity type.
• Business Activity: What’s your main hustle? Whether it’s farming, building, investing, or making stuff, let them know.
• Business Locations: Share all the spots where your business operates. Just don’t give out sensitive info that could jeopardize safety.

Remember, you’ll get your ABN as soon as you wrap up your application. If you skip vital info or there’s a verification hiccup, it might take up to 28 days to sort things out.

A Brief On ABN Lookup

ABN Lookup is like a handy detective tool for checking out Aussie businesses that got themselves an ABN (Australian Business Number). Plus, if you’re in the ABN club too, it’s where you can locate yours!

This nifty tool helps you confirm who your suppliers and customers are. It’s like peeking at a business’s public profile and seeing things like:

• Their official, fancy, and everyday names
• What type of business they are
• Where they hang their business hat (including which state and postcode)
• If they’re a superannuation fund or charity
• Whether they can receive tax-deductible gifts
• If they’re part of the GST club
• And even when they got these registrations

The Australian Business Register says folks made over a billion searches here last financial year, so it’s kind of a big deal!

Australian Business Register (ABR) Home Page

How Can You Update ABN Details?

Since the government, other businesses and the community count on your ABN info being correct, it’s vital to inform the Australian Business Register whenever your details change. Make sure to do this within 28 days of any changes through the ABR website. Just remember, there are a few things you can’t change on your own:

• Your business name
• The actual names of individuals and sole traders. You’ll need to get in touch with the Australian Tax Office (ATO) for that.
• The official names of companies registered with the Australian Securities & Investments Commission (ASIC). They handle those updates separately.

How Can You Cancel Your Australian Business Number?

If you’ve closed down your business or sold it, it’s important to cancel your Australian Business Number. But before you go ahead, it’s a good idea to chat with your bookkeeper or accountant to ensure you’ve met all your filing and payment requirements.

One crucial point: if you’re thinking of canceling your pay-as-you-go withholding (PAYG), be sure to do that before you cancel your ABN.

You’ve got a few options for canceling your ABN:

1. You can do it online, using your myGovID.
2. You can fill out a form from the official ABR website and mail it in.
3. If you run into any issues with the above methods, you can get in touch with the Australian Business Register for assistance.

How Do You Reactivate ABN?

The folks over at the Australian Business Register are the ones in charge of making sure that only real-deal businesses get and hang onto their ABNs.

Now, here’s the thing: if you need to bring your Australian Business Number back to life or apply for a new one, you might need to show some proof that you’re already doing business or have plans to do so. This can include things like:

• Trying to snag some financing
• Getting your website up and running
• Putting your name out there through ads or social media
• Getting the necessary permits or insurance
• Renting or buying a place, equipment, or stock

So, if you’re pretty sure you’re the real business deal, go ahead and use this form to get your ABN back in action (or apply for a new one).

Conclusion

In closing, starting a business in Australia is a breeze with your trusty Australian Business Number (ABN) by your side. It’s like your business’s official ID, making tax and transactions a snap.

Remember, it won’t cost you a dime to get your Australian Business Number, thanks to the Australian government. And if you ever need to reactivate it, just show that you mean business by taking steps like securing financing, building your online presence, and getting your paperwork in order.

ABN Lookup is your secret weapon for checking out other Aussie businesses and keeping your own details up to date. And when it’s time to call it a day, don’t forget to cancel your ABN properly.

So, with your ABN in hand, you’re all set to conquer the Aussie business world!

Also Read:

What Taxes Do Small Businesses Pay In Australia?

Sole Trader vs Company: What Are The Key Differences?

ATO Tax Deductions: 14 Things You Didn’t Know About

How To Calculate GST In Australia?

The post Australian Business Number (ABN) Guidelines appeared first on ProfitBooks.net.

With changing times and the evolution of technology and advertising platforms, brands have explored digital channels where they get many opportunities to develop varied marketing strategies for different customer segments.

They can directly reach out to the prospects in real-time and convert them into potential customers in a cost-effective way.

One way to do this is via lead generation. Any person who shows an interest in products/services of a particular brand or business is a lead, and attracting those leads is lead management.

Lead Generation: A Brief

Businesses like retailers, restaurants, or service providers who communicate with customers directly and rely on custom revenue for growth and survival must focus on lead generation. While lead generation will help you get leads and convert them into customers, it will surely boost your sales and grow your customer base.

We have many lead generation tools to carry out this activity and enable the marketers to deliver quality results. Henceforth, it’s advisable to use any lead generation tool that satisfies the particular requirements of the brands and helps them grow.

While searching for an ideal tool you ensure that your tool has the following features to provide your hassle-free services CRM integration, huge database storage capacity, user-friendly interface, Lead qualification, analytical tools, lead scoring, Compatibility to be used on all devices, responsive customer support, etc.

Different tools have different usages, features, and pricing. You need to pick the one which caters to all your needs. Analyze the software on the grounds of your requirements, the functionality, and the pricing, of course. If the free version of the plan is sufficient for your needs, then well and good, but if your requirements are more, then you can upgrade the plan.

What Is Lead Generation & How Does It Work?

Lead generation is a process that’s far more pleasant than the intrusive nature of cold calling. It involves engaging people who have shown interest in a company’s product or service through their actions, like filling out a form or signing up for a trial. For example, if you take an online survey about car care, the car company might email you helpful information. It’s a more respectful and personalized way to approach potential customers.

Leads come in different types and qualifications.

Some are interested but not ready to make a purchase (Marketing Qualified Leads – MQLs), while others are ready to buy (Sales Qualified Leads – SQLs). Some leads have shown interest in using a product (Product Qualified Leads – PQLs), while others express an intention to upgrade (Service Qualified Leads).

Lead generation uses strategies like blog posts, coupons, events, and online content to warm up potential customers to a brand. It’s all about making the transition from strangers to customers as smooth as possible.

Here’s how it works: A person discovers a business through channels like a website or social media. They’re encouraged to take action through something like a button or message that leads them to a page with valuable information in exchange for their details. Once they share their information by filling out a form, they become a lead. The key is making sure what’s offered matches what the visitor needs.

To generate leads, you can use different channels like content, email, ads, blog posts, social media, product trials, referrals, events, partnerships, and community building. But it all starts with a well-designed page where visitors become leads.

Inbound lead generation fits nicely with the idea of naturally moving interested people into happy customers. So, instead of being the annoying cold caller, think about the power of attracting and nurturing leads through inbound lead generation.

Best Free Lead Generation Software

Now that we have understand what exactly is lead generation and the way that lead generation works, let us have a look at the Best free lead generation software for use:-

1. BITRIX24

Best Free Lead Generation Software: BitRix24

Bitrix24 is a leading CRM software that offers a vast assortment of features & customizable options that businesses can use as per their needs. If you are running a business and are in search of CRM software and social networking tools, then Bitrix24 is where your search ends.

It’s a must-have tool that any small-medium size enterprise would require to manage & communicate within their company and with the audience.

Some things you can do with Bitrix24 are creating leads, generating invoices, closing deals, recording info, assigning tasks, sharing information within teams, etc. The best part is you can use at least 90% of their tools for free.

There are n number of ways to promote a brand via Bitrix24. Email marketing, text messaging, calling, social ads, re-targeting, etc. are to name a few.

You get to generate & capture the leads through landing pages & sales forms with the help of a lead management tool.

Ratings – 4/5

Pricing – Free plan, Paid plan starts at $29.40/month

2. HELLOBAR

Best Free Lead Generation Software: Hello Bar

 One of the most popular lead-generation tools is HelloBar. Anytime you visit any website, you might have come across pop-ups, static bars, or full-page takeovers. HelloBar is used to display these Calls to Action on your website.

It’s a tool used to display attractive information to the visitors of your site and convert them into customers. It’s a highly versatile tool as you can use it with many sites, whether it’s WordPress, HTML, or any other CMS.

One of the most convenient tools that can be customized as per your needs & requirements is to collect a vast database and direct users to your conversion funnel.

One can not only increase the conversion rate but can also enhance the user experience in terms of their website’s performance. HelloBar can also conduct surveys, get subscribers, promote ebooks or social media pages, etc.

Ratings – 4/5

Pricing – Free plan, Paid plan starts at $29.00/month

3. ARITIC PINPOINT

Best Free Lead Generation Software: Artic

Arictic Pinpoint is a marketing automation software that helps large corporates and enterprises to build the brand, lead generation, develop personalized relationships with leads, automate marketing campaigns, keep track of visitors convert them into leads, retarget ads, etc.

Both B2B & B2C companies can use multiple marketing channels like mobile, web, email, etc. to leverage digital mediums for growth. You can even segment the database based on demographics, website behavior, patterns, etc. to associate relevant trigger points to them.

Users of Arctic Pinpoint with its help can engage with potential buyers, map their behaviors & accordingly create actions to keep track of the same.

Ratings – 4.5/5

Pricing – Free plan, Paid plan starts at $19.00/month

4. FLOWLU

Best Free Lead Generation Software: FLOWLU

Flowlu is a multitasker software tool that is a must-have for any business. Flowlu allows businesses to get a clear overview of existing happenings in the company.

It carries many tools in its basket, ranging from task management, project management, agile project management, and invoicing to collaboration tools, and many more.

Flowlu has a cloud-based CRM to manage leads/contacts and keep track of new sales opportunities. It even ensures smooth communications among the tea members of the company by eliminating the time lag and providing various tools for the same. Generating invoices or payment follow-ups with clients is just a click away.

You can carry both activities from within the projects and can manage those projects anytime, anywhere, and on any device via iOS or Android apps.

Ratings – 4.8/5

Pricing – Free plan, Paid plan starts at $29.00/month

5. ENGAGE BAY

Best Free Lead Generation Software: Egage Bay

Engage Bay–A one-stop solution that caters to too many business requirements, few, are lead generation, email marketing, marketing automation, CRM, and social media management.

With Engage Bay, you can create custom web forms and landing pages to convert web visitors to leads. By tracing their communications, you can get a complete view of every website visitor and gain meaningful insights into their activities.

You can email marketing campaigns and customize them to meet the company’s branding aim.

Analyzing the sales figures and generating reports is yet another feature of Engage Bay with which you get to know the performance of marketing content and how it can be improved to foster better results.

Ratings – 4.6/5

Pricing – Free plan, Paid plan starts at $8.99/month

6. SUMO

Best Free Lead Generation Software: Sumo Leadz

 Sumo is yet another easy-to-use and value-for-money tool for generating leads. It’s useful for small & medium-scale enterprises and e-commerce businesses where they can convert website visitors to potential buyers.

Users can use various tools like list builders, heat maps, etc. to grow traffic and maximize content engagement on their respective websites. It has an extremely user-friendly interface to generate leads, grow email lists, and perform marketing automation.

Sumo helps businesses to grow their email lists, develop marketing strategies, increase conversions, and generate more sales. It enhances the look and functionality of the site on which it’s installed and provides various functions that improve the user experience.

Ratings – 4.1/5

Pricing – Free plan, Paid plan starts at $39.00/month

7. HUBSPOT MARKETING HUB

Best Free Lead Generation Software: Hubspot

HubSpot is a huge platform with varied tools to help businesses generate more leads.

Forms, landing pages, email marketing, SEO tools, social media marketing, etc. are some of the marketing tools that will not only save you valuable time but will also get all the content you need to provide an ultimate user experience to the website visitors and henceforth converts them into customers.

There are even analytical tools to keep a close eye on the lead generation activity and continuously measure and improve the efforts. Since the CRM platform is closely integrated, the marketing hub enables the marketers to keep the entire database in one place and track the sales to prove the ROI and validate investments.

Ratings – 4.5/5

Pricing – Free plan, Paid plan starts at $50.00/month

8. HUNTER

Best Free Lead Generation Software: Hunter

A cloud-based email marketing solution that helps businesses find professional email addresses, either from domains, companies, or the web.

All sizes of businesses who need to send a cold email, insert images in the mail, search results, etc should use Hunter.

They have a highly responsive after-sale support system. Hunter automatically grabs the email with the same domains across the web in no time and hence has turned out to be an affordable, easy-to-use, time-saving tool for all.

Ratings – 4.6/5

Pricing – Free plan, Paid plan starts at $49.00/month

9. LEAD FUZE

Best Free Lead Generation Software: LeadFuze

 For carrying out various marketing activities or reaching out to customers digitally, the basic thing required is valid and professional contact information. That’s what Lead Fuze does for them.

It carries out searches in the entire market segment amongst specific individuals, and accounts and aggregates the world’s professional data to deliver fresh leads to companies. Marketers, B2B businesses and 

Recruiters use Lead Fuze to build an ideal list of leads.

Ratings – 4.7/5

Pricing – Paid plan starts at $132.30/month

10. REVAMP CRM

Best Free Lead Generation Software: Revamp CRM

If any business is in search of ideal CRM software that meets the basic objectives of sales, marketing, and e-commerce, then Revamp CRM is the perfect solution for their search.

It’s built to manage your contact list, track activities like deals & orders, segmenting and emailing your contact list, etc.

You can connect the Revamp CRM with your favorite apps and integrations to ensure the smooth functioning of the activities within your business. You can segment the contact list to perform bulk actions like running an email campaign or workflow.

Sales reports, task tracking, and automatic follow-up are some of the many additional features that can be explored with Revamp CRM software.

Ratings – 4/5

Pricing – Free plan, Paid plan starts at $19.00/ month

Conclusion

All the tools have their features and applications that can be used as the needs of respective businesses.

To add to these tools, you can also make use of another software that enables businesses to manage their financial operations–ProfitBooks.

ProfitBooks Accounting Software

ProfitBooks saves a lot of time by automating the accounting work, Keeping your financial statements organized and updated, tracking daily expenses, looking after inventory management, generating financial reports, etc. Easy-to-use software that covers all accounting processes to make your life hassle-free.

For more information, log on to www.profitbooks.net

The post Best FREE Lead Generation Software For SMBs appeared first on ProfitBooks.net.

In Australia, there are certain payroll rules and regulations and a special tax asserted by the Australian Taxation Office (ATO).

Australia’s thriving economy and welcoming business atmosphere are drawing folks from all over. Yet, getting started with pay wages and onboarding can be quite a hassle. Like elsewhere, employers in Australia must stick to wages rules to dodge hefty fines.

In this article, we’ll break down the Aussie payroll system for you.

Australia & New Zealand Payroll Process Brief

ATO Login Portal For Tax Lodging

Note that all regulations of payroll tax-related stuff are managed by ATO, and it’s best to run through ATO’s guide on ‘single-touch payroll’. The way we handle wages is the same for all countries we support, including:

– Getting things ready before payday.
– Printing paychecks.
– Making financial records.
– Checking payroll details.
– Finalizing everything.

For employees in Australia and New Zealand, you need to do all these steps. But make sure you know how our basic JD Edwards EnterpriseOne Payroll system works before you deal with payments for Australian and New Zealand employees.

This guide only talks about the steps and things unique to handling payments for them.

Plenty of companies worldwide use payroll software to pay their staff, and Australia is no exception. The Aussie payroll system can get tricky, especially depending on your job field.

To know how ProfitBooks can manage your payroll efficiently, go through our payroll guide and get started with us!

Managing payroll in ProfitBooks software

What Are The Payment Periods For Wages?

A pay period is simply the schedule for paying employees while they work at a company. This can be every week, every two weeks (fortnightly), or once a month, with the money usually sent straight to their bank accounts.

Companies get to choose which pay period suits each job. The type of job can also decide how often someone gets paid.

For instance, casual workers might get paid every week based on their hours. Meanwhile, full-time employees often receive a monthly salary. Australian payroll software has to be able to handle all these differences.

Payroll Taxes: How Do They Work In Australia?

We’ve discussed payroll taxes briefly in our Australian Business Taxes Guide, so you can refer to that if you’d like to know in-depth about all business taxes in Australia.

If your business is paying salaries, benefits, and superannuation contributions that go beyond the tax-free threshold set by your state or territory, you’ll need to factor in payroll tax as one of your financial responsibilities.

Now, since payroll tax is specific to each state, you’ll need to visit your local government’s official websites to find out what those specific thresholds and tax rates are.

Making it clearer with examples

To give you an idea, let’s say you have employees in New South Wales. If your total wage payments for them exceed $1.2 million, you’ll be required to pay a payroll tax rate of 5.45% to your local government. On the other hand, if you employ people in Queensland and your wage payments surpass $1.2 million, you’ll be subject to a payroll tax rate of 4.75%.

The difference between these tax rates based on region is shown in the graphic below.

Payroll Tax Rates Differ Region-Wise

So this is how the taxation system for paying wages works.

In the 2018-2019 financial year, Queensland (QLD) and New South Wales (NSW) had specific money limits for payroll tax: $91,666 for QLD and $72,192 for NSW.

If you have employees in both QLD and NSW and your total employee wages for those 31 days are:

• $95,000 – you have to sign up for payroll tax in both states.
• $75,000 – you only need to register in NSW.

If your total Australian wage bill is below the maximum limit set by your state or territory, you don’t have to pay payroll tax.

Single Touch Payroll (STP): What It Is & How It Works

Single Touch Payroll (STP) is a government effort in Australia to make life easier for employers when they report to government agencies.

Here’s the deal with STP: Whenever you pay your employees using STP-ready software, you share their payment details with the government. This info covers things like salaries, taxes, and superannuation.

STP rolled out on July 1, 2018, for big employers (20 or more employees) and on July 1, 2019, for smaller ones (19 or fewer employees). And guess what? It’s not optional—it’s a must-do.

Starting from January 1, 2022, they made STP even more detailed, collecting extra payroll data (they call it STP Phase 2).

How does STP work?

STP, or Single Touch Payroll, is a nifty system. It takes info about taxes and super from your payroll software and sends it straight to the tax folks at the ATO when you do employee payments.

Here’s how it works:

• Run your payroll.
• Pay your crew just like you always do.
• Hand out payslips like usual.

No need to mess with your pay schedule. Keep paying your team weekly, every two weeks, or once a month – your call!

Are there any penalties?

The ATO has been talking to employers and tax experts a lot ever since STP reporting became something everyone has to do. If you still haven’t started or moved to STP Phase 2 reporting, and you don’t have an excuse, you might face penalties for not doing it on time.

If a company doesn’t send the STP payroll report to the ATO by payday, could the ATO impose fines on them?

Yes, they could. Each late filing could cost $210, so if a business files its 52 weekly pays just one day late, it might end up with fines totaling $10,920 for the year.

Fringe Benefits Tax (FBT)

We have talked about Fringe Benefits Tax (FBT), and all other business taxes in Australia, so we’d recommend you check out that post before.

Along with the payroll taxes, there’s also the fringe benefits tax, which applies to all the benefits that corporations provide to their employees, other than the CTC or salary.

A fringe benefit is an extra perk or form of compensation given to an employee on top of their regular salary or wages.

Fringe Benefits Tax (FBT)

Let’s say you’re running a company and you’re also an employee of that company. In this case, any additional benefits you receive, apart from your salary, are considered fringe benefits.

These fringe benefits can take various forms, including:

• Providing an employee with a loan that doesn’t accrue interest.
• Allowing an employee to use a company vehicle for their personal use.
• Reimbursing an employee for their children’s school fees.
• Covering an employee’s health insurance costs.
• Covering expenses related to entertainment, like hosting a Christmas party for employees and their partners.

These are just a few examples of fringe benefits, and there can be more. It’s important to understand that these benefits come with specific tax implications and regulations, so it’s wise to consult a professional for guidance on how to handle them correctly.

Conclusion

In conclusion, understanding the taxation landscape for small businesses in Australia is crucial for financial planning and compliance.

In this dynamic tax landscape, proactive tax planning and compliance will continue to be essential for the success and sustainability of small businesses in Australia.

If you’re an Australian business and are looking to manage your payroll efficiently, ProfitBooks can be a viable option for you. Our robust accounting software and powerful bookkeeping offer impeccable features without burning a hole in your pocket.

Sign up for a 100% FREE account now!

Also Read:

What Taxes Do Small Businesses Pay In Australia?

CGT vs GST: How Do They Differ In Australia?

4 Perfect Quickbooks Alternatives In Australia

How To Calculate GST In Australia?

Sole Trader vs Company: What Are The Key Differences?

The post Payroll Tax, Regulations And Process In Australia appeared first on ProfitBooks.net.