Bookkeeping

Struggling with Cash Flow? Poor Bookkeeping Might Be the Real Problem

Bookkeeping, Cash Flow /

For many startups and small businesses in Australia, cash flow problems—not lack of customers—are the reason they struggle to survive. You might be selling well and staying busy, but if the money isn’t flowing in on time or your expenses aren’t tracked properly, your business can feel like it’s constantly under pressure. And more often than not, the root cause is incomplete or inconsistent bookkeeping. Common Red Flags of Bookkeeping Issues If you’ve experienced any of these, it’s time to take a closer look at your books: You don’t know exactly what’s coming in or going out each week Invoices are sent late—or forgotten altogether You’re unsure how much clients still owe you You don’t know what you owe in tax, GST, or superannuation You’re unclear about when WorkCover insurance is required or when wage reporting is due You constantly feel like cash is tight—even during busy months Good Bookkeeping = Healthy Cash Flow Bookkeeping isn’t just record-keeping—it’s the foundation of smart decision-making. When your books are up to date and managed well, you’ll: ✅ Get a real-time view of your business’s cash position✅ Know exactly who owes you—and how long it’s been overdue✅ Stay on top of tax, super, and compliance deadlines✅ Make confident decisions about spending, staffing, and investing How We Can Help At Phu & Co Financial, we specialise in bookkeeping services for startups and small businesses across Queensland. Whether you’re a sole trader, tradie, or running a growing team, we help you: Clean up messy accounts and get back on track Set up user-friendly systems like Xero or MYOB Stay compliant with ATO, WorkCover, and super requirements Understand your numbers—without the financial jargon Book Your Free Cash Flow Health Check Not sure where your business stands? Let’s start with a quick, free review of your books and cash flow. We’ll show you where things can improve and how to get ahead—no pressure, just practical advice. 📞 Contact us today to book a consultation and take control of your business finances.

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GST Tips

Basic GST Tips For Small Business Owners

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As a small business owner, managing your financial obligations is crucial, especially when it comes to GST (Goods and Services Tax). GST is a 10% tax applied to most goods, services, and items sold or consumed in Australia. Initially, you may not have needed to register for GST, and you might have chosen not to voluntarily register. However, as your business grows and your GST turnover exceeds the threshold (currently $75,000 or $150,000 for not-for-profits), you will be required to register for GST. Here are some key tips to help you manage your GST responsibilities effectively. Register for GST on Time It’s essential to keep track of your GST turnover each month to monitor your progress towards the registration threshold. Once your turnover hits $75,000, you must register for GST within 21 days to avoid penalties and prevent being responsible for GST that should have been covered by your customers. Pre-Establishment Costs If you’re starting a new business, you can claim GST credits for certain expenses incurred before your business is officially registered, such as set-up fees, business registration, trading stock, and premises costs. Be sure to consult your accountant to understand the specific rules that apply to these expenses. GST-Free and Input-Taxed Sales Certain products and services are GST-free or Input-Taxed. Key points to remember: If your sale is GST-free, you don’t include GST in the price but can still claim GST credits on purchases used to make these sales. You cannot claim GST credits for purchases like basic foods, loan interest, or bank fees, and you should always check your invoices carefully to ensure you’re claiming GST correctly. Check out a list of common GST-free products and services on the ATO site here. Avoid Claiming GST on Private Expenses GST credits can’t be claimed for private or personal expenses. If you make a purchase that is partly for business and partly for personal use, only claim the business portion of the GST. GST Credits for Employee Reimbursements You can claim GST credits when reimbursing employees for business-related expenses, as long as you have a tax invoice for expenses over $82.50 (GST-inclusive). However, you cannot claim credits for non-deductible expenses, such as client entertainment costs. Keep Accurate Records Maintaining accurate records is essential for managing GST. This includes all sales, tax invoices, expenses, and other GST-related transactions. Make sure to keep these records for at least five years, starting from when they were prepared or when the transaction occurred. Conclusion Managing GST can be straightforward when you start with the right approach and stay on top of it regularly. Consult a professional to ensure you’re following the proper procedures for registration, claiming credits, and lodging returns. Need help with GST or BAS? Contact us today, and we’ll guide you through the process! At Phu & Co Financial, our Bookkeeping Services are designed to keep your financial records in order and compliant. Explore our Bookkeeping Services to ensure your business stays on the right financial track.

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5 Essential Accounting Tips for Digital Marketing Start-ups

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As a digital marketing start-up, having your accounting in order is crucial for sustainable growth. Here are five accounting tips to keep your financial health in check. Plan for Tax Compliance Understand your tax obligations from day one. This includes knowing which taxes apply to your digital marketing business, setting up the right accounting systems to collect the necessary data, and planning for periodic GST payments. Cloud-based accounting software like Xero can be invaluable. They offer functionalities like invoicing, expense tracking, and financial reporting, which are keys in monitoring your financial performance and in making informed business decisions. Staying compliant avoids penalties and legal issues. Separate Personal and Business Finances It’s essential to establish clear boundaries between your personal and business finances. Open a business bank account and use it for all business-related transactions. This separation not only simplifies accounting but also provides clarity during tax season and helps in establishing a clear financial history for your business. Utilise Project-Based Accounting Given the project-centric nature of digital marketing, you recommend you to adopt a project-based accounting approach. This will allow you to track your revenues and expenses on a per-project basis. This also provides insights into which projects are most profitable and helps in making informed decisions about future endeavours. Keep a Close Eye on Cash Flow Cash flow is vital for any start-up’s survival. It’s important to carefully track your cash flow to avoid running low on funds needed for operations before client payments come in. In industries like digital marketing, where some seasons are more profitable than others, adapting your financial planning to these fluctuations is key to thriving. For more insights, check out our previous blog on ‘6 Tips to Improve Your Cash Flow‘. Regular bookkeeping By maintaining rigorous bookkeeping practices and regularly analysing your financial statements, you gain a real-time understanding of your business’s financial status. Seeking assistance from a bookkeeping expert is crucial to ensure your financial numbers are accurately maintained, freeing up your time to concentrate on core marketing services. This help empower you to make informed strategic decision that can drive growth and enhance profitability. Phu & Co Financial Bookkeeping Services Can Help Getting your bookkeeping right from the start is crucial to avoid costly mistakes and potential penalties from the ATO. At Phu & Co Financial, our Bookkeeping Services are designed to keep your financial records in order and compliant. Explore our Bookkeeping Services to ensure your business stays on the right financial track.

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Bookkeeping mistakes

Common Bookkeeping Mistakes Business Owners Should Avoid

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Bookkeeping is crucial for businesses, whether large or small. However, many small and medium business owners often wear multiple hats, including handling their own accounting. This juggling act can lead to mistakes that may seem insignificant at first but can cause problems down the road. Let’s explore these common mistakes and see how professional bookkeeping services can help you steer clear of them. 1. Confusing the difference between cash flow and profit It’s important for small businesses to distinguish between cash flow and profits, as they can exhibit different dynamics. A business may experience positive cash flow in the short term yet lack profitability, while conversely, it might face temporary negative cash flow but ultimately prove profitable in the long run. A good example of this is when businesses make upfront payments to suppliers before receiving payments from their customers. It is important to maintain a clear understanding of your business’s financial health at all times as a lack of awareness regarding cash flow and profit stands as one of the primary causes of business failure. 2. Using a Single Account for Personal and Business Expenses Starting a business using your personal bank account or credit card may be common, but it’s advisable to maintain a clear separation between personal and business finances. Opening a dedicated business account ensures you don’t miss out on tax deductions and helps you avoid mixing business and personal expenses. A bookkeeper can assist you in making this transition. 3. Overlooking Small Purchases Small expenses like office supplies or milk and coffee for the office may not seem significant individually, but they can add up. Keeping track of these purchases is essential to maximize tax deductions and maintain a clear record for potential audits. As your business grows, a bookkeeper can help you organize and categorize these expenses effectively. 4. Neglecting Data Backups While going paperless and using cloud-based accounting software can be efficient, technical issues can occur. A simple error can lead to critical data loss. To mitigate this risk, maintain physical records of your financial transactions or create multiple digital backups of your online bookkeeping. 5. Failing to Reconcile Regularly Regular account reconciliation involves comparing your monthly bank statement to your financial records. This process helps you determine your available cash and spot any errors made by the bank. Regular reconciliation provides valuable insights into your business’s financial health and enables better expense planning. Working alongside a bookkeeper who can regularly reconcile and update your financial data is a wise decision. Phu & Co Financial Bookkeeping Services Can Help Getting your bookkeeping right from the start is crucial to avoid costly mistakes and potential penalties from the ATO. At Phu & Co Financial, our professional bookkeepers are here to help you avoid these common pitfalls. Our Bookkeeping Services are designed to keep your financial records in order and compliant. Explore our Bookkeeping Services to ensure your business stays on the right financial track.

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