If you have set up cloud accounting for your business, there’s a good chance you needed to enter your business industry and structure to help automate your bookkeeping file. This would have assisted you in setting up your bookkeeping to get the ball rolling to generate your financial reports. You might need to start considering tailoring your accounting requirements.
Are you part of the gig economy, operate abroad or import products? There are special ways of reporting for imports tax and GST, and you may need accounting software that can handle multiple currencies. If your business employs staff or keeps inventory, then you’ll need to keep track of those too. All these things matter when shaping your financial reporting systems.
If you haven’t heard of the gig economy, that’s when you work as a contractor or freelancer for another business. You may just be entitled to extra benefits! The main point here is to make sure you understand your rights and obligations from both sides.
Some businesses will look to engage a contractor rather than employing someone. And highly skilled individuals are turning to freelance work because of the new technologies out there such as online work hubs and software specialised in their field of work. The line isn’t always clear what the difference is between an employee and a contractor.
Sometimes a contractor is actually considered an employee under Australian fair work law (even if they’re working under an ABN) so some employee rules may apply. Just make sure you keep track of who is working for you, or who you work for in case you need that information at a later date.
A quick note - if you have contracted cleaners, couriers or building and construction workers, you may have to report the payments you’ve made to them, it’s called TPAR (taxable payments annual report) and some software programs have this component built in for ease of reporting. TPAR reporting is usually for those businesses operating in the industries mentioned above, but make sure you visit the ATO for more information if your business provides mixed services. You may still have to report if 10% or more of your revenue is covered by the above service industries.
If you'd like some more information or some assistance with freelance accounting and more, contact Money Monarch today or make a booking on our website.