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8 tips to making the most of Government Business Assistance

The COVID-19 pandemic has turned life upside down for many small business owners. While there has been a lot of talk on how to avoid contracting the virus and how businesses can operate safely to adapt to the current conditions, this article covers 8 tips to ensure you are making the most of the government assistance available.

Equipment write-off: The $150,000 instant asset write-off scheme has now been extended to December 2020. Australian businesses with less than $500 million annual turnover will be able to take advantage of the write-off and invest in assets to support their business. This government initiative is well worth using. The entire cost is deductible if spent before 30 December 2020, instead of depreciating the value over several years.

Small-business grants: New information is being released on a regular basis and the circumstances often vary by state. Watch for direct grants for small business from your own state government. Some states such as NSW are on a second round of grants. The process of applying varies from simple to complex, depending on which grant you are applying for. Your bookkeeper or accountant is likely to be on top of these changes and will be able to assist you to apply.

Bookkeeping: Never underestimate the power of neatly kept bookkeeping – especially during unprecedented times. Your small business bookkeeping is not just important for current times (i.e. JobKeeper applications and BAS lodgement), but also for assisting you to forecast your cashflow and make better business decisions. In addition, your bookkeeping may be required to prove your eligibility for grants. Get in touch with your bookkeeper or accountant to get started with this.

Bookkeeping Software: Are you currently using a bookkeeping system such as MYOB, Xero, Quickbooks? Using accounting software allows you to track your expenses and keep on top of your cashflow (among many other things!) Bear in mind, although many of these programs are simple to use, it is essential that your bookkeeping is set up with the software correctly from day one – to ensure no messy and costly fix-ups later! 

Vehicle: Your accountant will be the best person to advise you on claiming for your work or personal vehicle. Chat to your accountant about claiming for your vehicle’s depreciation and running costs for the best tax savings and maximised benefits.

Payroll: Just as in bookkeeping, payroll is done most efficiently with a great bookkeeper and bookkeeping software! In addition, it may be worth the investment to look into online rostering and payroll systems so that you can track wage costs. 

BAS payments: Keep on the lookout for changes to BAS payments and additional refunds. Again, your bookkeeper or accountant will be able to assist you with this.

Lease or Buy? Renting to buy is another option for new or used equipment — this will be a tax deduction and help to preserve your capital. It is safe to say the the COVID-19 circumstances have taught many business owners about the importance of monitoring their cash flow and maintaining healthy savings/working capital. Our recent blog covers the differences between leasing, buying and which you should choose. Have a read here.

Educate! More than ever, short courses are becoming available online. Not only is self-education the best investment you can make for your future, but it can also be claimed as a personal expense if it is directly connected to your work.

Contact your local bookkeeper

The information and insight a bookkeeper provides goes a long way to helping you make smart business decisions, especially during the uncertainty of COVID-19.

Whether you’re just after some financial advice, bookkeeping tips or assistance selecting an accounting software package such as MYOB, Xero, Quickbooks Online or Receipt Bank, we can work through it together.

See below for our bookkeeper locations; if you’d like to ask a question, please feel free to use the form below and we’ll be in touch with you soon. Alternatively, have a read of our latest COVID-19 bookkeeping blogs here.

Our Bookkeepers

Justine Day: Southern Highlands / Bowral Bookkeeper
Amanda Graham: Southern Highlands / Bowral Bookkeeper
Petra Austing: Southern Highlands / Bowral Bookkeeper
Karin Evans: Gold Coast Bookkeeper
Pru Hall: Wollongong Bookkeeper
Jackie Short: Canberra Bookkeeper