In this fast -paced world of business, staying ahead of technological advancements is crucial for maintaining efficiency and competitiveness. One of the biggest challenges for small business is getting paid on time when 50% of small businesses are paid late. How it works and the Benefits Accept payments on the spot Spend less time chasing payments and time managing cashflow. This means shorter waiting times for clients and improved customer satisfaction due to ease of the process. Xero has released a groundbreaking new feature “Tap to Pay”. This is a new innovative secure way to get paid by your customers in-person. You can accept payments on the spot on completion of a job. All you need is a smart phone, Stripe account and the Xero Accounting application. No physical terminal is needed. This is a great application to assist with getting paid on time in these challenging economic times and enhance your cash flow. Improved Cash Flow Receive payments via Stripe using the Xero Accounting app on your mobile with faster payment processing times leading to quicker receipt of funds. Payments can be processed immediately. This is especially beneficial for business with tight cash flow where every day a payment is outstanding can really matter. This feature can significantly improve a business’s cash flow. This enables better financial planning and management, helping businesses stay on top of their financial obligations. Simplified Payment Processing Invoices are automatically marked as paid, ready for reconciliation. This eliminates the need for manual entry of payment data. No need to log into another application or integrate another application. Payments are processed in real-time, ensuring the financial records are always up to date. “Tap to Pay” integrates seamlessly with existing Xero features, providing a cohesive and comprehensive accounting solution. The ability to easily track payments, generate reports, and manage financial data all within Xero. This reduces the time spent on manual reconciliations and allows yourself, bookkeeper or accountant more time to focus on strategic financial tasks.

In today’s competitive business environment, leveraging the power of Key Performance Indicators (KPIs) through Xero can be a game-changer for your business. At Evolve Online Bookkeeping, we specialise in setting up and monitoring these Xero KPIs to provide you with real-time, data-driven insights. This enables you to make informed decisions, manage cash flow effectively, and streamline operations. By partnering with us, you’ll not only enhance your financial management but also improve customer satisfaction and employee productivity. Here’s how engaging us, a Xero Platinum Partner can help you achieve your business goals: 1. Enhanced Decision-Making Data-Driven Insights: Xero KPIs provide real-time data that helps business owners make informed decisions. By analysing metrics such as revenue growth, profit margins, and cash flow, you can identify trends and make strategic choices to drive your business forward. Performance Tracking: Regularly monitoring KPIs allows you to track your business’s performance against set goals. This helps in identifying areas that need improvement and those that are performing well. 2. Improved Financial Management Cash Flow Management: One of the most critical aspects of running a business is managing cash flow. Xero KPIs like accounts receivable turnover and cash flow forecasts help you understand your cash position and ensure you have enough liquidity to meet your obligations. Expense Control: By keeping an eye on KPIs related to expenses, such as cost of goods sold (COGS) and operating expenses, you can identify areas where you can cut costs and improve profitability. 3. Operational Efficiency Efficiency Metrics: KPIs related to operational efficiency, such as inventory turnover and production costs, help you streamline your operations. By optimizing these areas, you can reduce waste, improve productivity, and increase profitability. Automation: Xero’s automated features, combined with KPI tracking, reduce the time spent on manual data entry and reconciliation. This allows you to focus more on strategic activities that drive growth.

Build a Tech Stack for Business In technology, a ‘stack’ is a way of visualising a collection of software systems (tools, platforms, apps and pieces of software) used together to get work done and consists of various front end and backend technologies. They allow a system to be built that involves multiple tools but feels like one single workflow. As a business adapts and grows it will change its tech stack to maximise efficiency and lower costs and no single piece of software or tool can accomplish everything a business needs. Successful businesses will leverage various apps and build a technology stack to achieve their business goals. As businesses advance their digital transformations, they need to ensure that all the applications they use are integrated with their accounting software. Integration is the key to building an efficient, connected work environment. The objective being. Data is shared between solutions automatically, eliminating the need to rekey data and reducing the chance of errors. Teams make better use of time, leaving routine, repetitive tasks to technology so they can focus on higher-value activities. Cash flow is enhanced when accounting has all the information it needs to immediately invoice or request reimbursements for digital transactions. Businesses can take on more clients without hiring additional employees. Employees experience less stress than if they were continuously inundated with paper and manual work. Businesses need to audit their tech stack on a regular basis. By reviewing the apps your business uses, you may discover ways to: Save employees’ time Save money on apps Consolidate apps Maintain a single source of truth for data Identify what tools are required to run your business effectively. Any apps used should tie back to the strategy of the business. The audit must look at all the business processes, what apps are used to complete daily tasks, what is the impact of each app on employee efficiency and the overall customer experience in using the apps.

The National Minimum Wage increase to $915.90 per week or $24.10 per hour.

A large part of the 2024-25 Federal Budget is aimed at cost-of-living relief, there are also several important announcements relating to superannuation. Some changes are already legislated to take place. Others need to become law before they can be implemented. Individual income tax rates and threshold changes Changes to individual income tax rates and thresholds from 1 July 2024. On 25 January 2024, the government announced changes to Individual income tax rates and thresholds from 1 July 2024. These changes are now law. From 1 July 2024, the proposed tax cuts will: reduce the 19 per cent tax rate to 16 per cent reduce the 32.5 per cent tax rate to 30 per cent increase the threshold above which the 37 per cent tax rate applies from $120,000 to $135,000 increase the threshold above which the 45 per cent tax rate applies from $180,000 to $190,000. Increase in Medicare Levy Low-Income threshold The government has announced they are increasing the Medicare levy low-income thresholds for singles, families and seniors and pensioners to provide cost of living relief. The increase ensures that low-income individuals continue to be exempt from paying a Medicare levy or pay a reduced levy rate. threshold for singles has increased from $24,276 to $26,000. threshold for families has increased from $40,939 to $43,846. Threshold for single seniors and pensioners, has increased from $38,365 to $41,089. family threshold for seniors and pensioners has increased from $53,406 to $57,198. family income threshold will now increase by $4,027 for each dependent child, up from $3,760.

Monitoring cash flow can quickly turn into a full-time job. Many business failures are related to issues with managing cash flow and without a healthy cash flow, you are unable to pay bills, invest in new opportunities, and grow your business effectively. There are various practical strategies that can be used with the help of Xero for optimising your invoicing process, speeding up your payment collections, getting cash in faster, and improving cash flow. Cash Flow refers to the amount of cash flows in and out of your business over a specific period. Put simply, it is the movement of money into and out of a business. Cash flow can be positive, meaning that more money is coming in then going out, or negative , meaning that more money is going out than coming in. When a business operates with negative cash flow it must find alternative means to satisfy its debts and expenses, such as dipping into its cash reserves. If the company continues to operate with cash flow outflow exceeding inflow. It will eventually deplete its cash reserves and runs the risk of defaulting on its debts. This may require additional loans or raising capital. When a business operates with positive cash it means you have more cash coming in then going out. This does not mean that you should start spending your profits straight away. It is important to understand future anticipated cash flows before making any decisions. An understanding can be obtained by completing a cash flow forecast. A forecast should consider any upcoming expenses that you have. By doing so you can ensure there is enough cash to cover expenses when they come due. It is also important to consider long term financial goals. If there is excess cash it might be better to consider investing in your business for business growth. This could include the upgrading of equipment or expansion to new premises, covering operating expenses, or simply taking a holiday. 

Did you know that you may be liable for additional tax of 47% on additional benefits provided to employees? Many businesses know very little about this tax and are exposing themselves to potential audits from the ATO. What are Fringe Benefits? A fringe benefit is something extra an employer provides in addition to a wage or salary or in return for forgoing some of an employee’s salary under a salary sacrifice arrangement. It is not salary and wages or cash, and the benefit can be something for the employee, spouse, or children. The employer is liable for the tax (FBT) that may apply to the benefits received and not the employee. For FBT purposes, an employee includes a: current, future, or past employee director of a company beneficiary of a trust who works in the business. If you are a sole trader or a partner in a partnership, you are not an employee. Benefits that you provide to yourself are not subject to FBT. Why do businesses offer fringe benefits? Fringe benefits can help employers to attract, retain, and motivate employees. Employers are becoming increasingly competitive with what they offer their employees and fringe benefits are one way they can gain that competitive edge. Common ones include free food, coffee bars, discounted gym memberships and entertainment. Providing these perks can make employees feel valued and create a happier workplace. Not all of these attract FBT.

The ATO has recently put out a warning about the tax implications for the employer of holding a staff Christmas party. These events are a Fringe Benefits Tax (FBT) minefield and the ATO’s warnings are particularly timely given that we are now heading into the Christmas party season and thousands of Australian small businesses will pay for their staff to let their hair down at the annual end of year celebration. If your business holds a Christmas function: on a working day, on your business premises, and only for your current employees, you don’t pay fringe benefits tax (FBT) for the food and drink. off your business premises at a hotel, restaurant, or function centre, or the party includes associates of employees (such as their partners), you don't pay FBT if the party is a minor benefit – that is, the cost for each person is less than $300 and it would be considered unreasonable to treat it as a fringe benefit. that includes clients, you don't pay FBT for the costs relating to the clients. If you give your employees a Christmas gift, you don't pay FBT if the value of the gift is less than $300 per person and it would be considered unreasonable to treat it as a fringe benefit. The minor benefits exemption applies to each benefit provided. What that means in practice is that if you are feeling generous and spend $290 per head on the party and then give a gift to each employee valued at a further $290, then both expenses are free of FBT. If you spend more than $300 on the function, the whole lot will be subject to FBT, not just the excess. If the Christmas party is not subject to FBT, you can't claim income tax deductions for the cost of the party. Nor can you claim GST credits for the costs incurred.

Xero Me is an employee self-service tool/app that empowers your entire team. It gives staff tools to scan receipts, claim expenses, submit timesheets, leave requests and more. Data and sensitive financial information is also kept private. It assists small businesses greatly reduce the time spent gathering and fielding requests on employee time, leave expenses and pay. The Xero Accounting app is included as part of your Xero subscription and free to download from either the App Store or Google Play. The app is available with any Xero plan that includes Xero Payroll and/or Xero Expenses. With Xero Payroll, your team can use Xero Me to access payslips, timesheets and leave balances. Timesheets are automatically fed into the payroll. With Xero expenses, your team can use Xero Me to claim expenses.