Author: Tailored Accounts

It's nearing the end of the financial year. And because EOFY is always a hectic time of the year, Tailored Accounts would like to save you some time by sharing some important dates to be aware of so you can get ahead of the game. 

Super Contributions

To be eligible for a tax deduction in the current Financial year, your final superannuation guarantee payment for EOFY should be made 7-10 days before 25th June (allow for delays) to ensure that super funds receive the contributions by 30th June.

Salary Sacrifice Super payment will happen on the same date to ensure that the salary sacrifice super contribution appears in this financial year’s payment summary.

If your Super is being managed by Tailored Accounts, all the deadlines will be met so there won’t be any hassle for you! Super reports and reminders will be sent out well in advance so that you will have sufficient time to review and make super payments before the deadline.

Make sure you are aware of the following rules:

• The concessional contribution cap is $27,500 for all individuals regardless of age for this income year.
• Concessional contributions include employer contributions (including contributions made under a salary sacrifice arrangement) and employee personal contributions claimed as a tax deduction

Single Touch Payroll (STP) Submission & Reconciliation

If you are managing your own payroll, you will need to have STP ready for employees by 14th July and the ATO by 14th August.

Tailored Accounts will be preparing STP on behalf of our clients and submitting them to the ATO. We will submit STP to the ATO by 14th August via STP enable software. Your payroll summary (which used to be called payment summaries) will automatically show up in your MyGov's ATO section.

Final Business Activity Statements for this FY

April – June BAS is not due until 28th July or 25th August if you are using BAS/Tax Agent to lodge online. Tailored Accounts will be asking our clients to send us the quarterly paperwork a few days after 1st July. This will help us with End of Year reconciliation and ensure that your BASs are complete before the due date.

Thank you for entrusting Tailored Accounts with your EOFY services – We guarantee that 100% of your payment summaries are completed before the 14th July due date!

Author: Harry Hoang | CEO of Tailored Accounts

The end of financial year is approaching us rapidly. Here at Tailored Accounts, we are already planning our payment summaries for the end of year reconciliation! However, we know that April through to July is the period when we are flooded with enquiries concerning moves from an existing accounting system to a new system like Xero, so we are ready for this surge of interest too!

Transitioning into a different system can be a big endeavour but it is also important to keep the potential benefits in mind. One of the biggest questions our clients like to ask us is "How much will I save?". We'll be answering this question today with the case of one of our largest-staffed client company's transition to Xero, showing you how much you can save by moving from a large corporate accounting method to a more de-centralized system like Xero and its add-ons.

The client was previously using Attaché, for which they were paying around $40,000 per year plus around $5,000 extra for upgrades and general support. However, the highest costs were felt in the inefficiency of recording transactions using this clumsy software. Large investments of time from the payroll and accounting team meant serious losses to the company!

By moving this client to Xero, here are the straight savings in dollars that were collected:

• Software subscription cost: From $40,000 down to $8,020 per year ($720 for Xero + $4,500 for Keypay + $1,800 for Receipt bank + $1,000 for Power BI). A straight saving of 80%;
• Paperwork handling and warehouse storage (turning hard copies to soft copies) cost: From $9,600 per year down to $0 as XERO + Receipt Bank will enable clients to be 100% paperless. Savings of 100%;
• Time-saving for payroll handling (staff) & processing (payroll team): Around 15 minutes per staff + 3 hours per payroll clerk per week. Annual savings of around 1,456 hours or $36,400;
• Time savings for account payable handling (staff & manager) & processing (AP team): Around 30 minutes per staff & manager + 3 hours per AP clerk per week. Annual saving of around 208 hours or $6,240;
• Time savings for senior accountant & CFO in producing reports: Around 2 hours per week per person. Annual savings of around 208 hours or $8,320;
• Improvements in financial data that help Managers & the Board to make the right decision at the right time: Including identifying waste or overspending budget cost items (including salary); Pressuring sale team to meet KPI; Retaining recurring income and customers. The estimated annual saving will be a minimum of $100,000 per year for a business of this size.

Overall, that's a saving of almost $200,000 per year for a business turning over around $10 million. Our client will save over $2 million in just the next 10 years!

If you want us to review your system and produce a business plan to show you how much your business would save, we can get it done for NO upfront cost!

So what are you waiting for?

Author: Tailored Accounts