Business and The Budget

This year’s budget has been the most highly anticipated we can remember. COVID-19 has not only made itself known in our lives and health system but made an unprecedented impact on the Australian economy. This impact, while sure to be felt for years to come, has been reduced by the government’s quick responses, and this year’s budget has been named The Economic Recovery Plan for Australia.

Here are some of the key facts about this budget:

  • Low and middle-income taxes to be offset, as well as more personal income tax relief.

  • Support for first home buyers under the First Home Loan Deposit Scheme.

  • Increased investment in infrastructure, manufacturing, research, and development.

  • Temporary tax incentives provided to businesses.

  • Greater attention given to digital platforms and the internet following increased online trade for many businesses during COVID-19. This includes more quickly rolling out the 5G network.

  • Investment in education, training, and apprenticeships.

  • Improved economic security for women in the workforce and leadership positions.

What does this mean for small businesses?

At the centre of those impacted by the economic effects of COVID-19 are Australia’s small, independently-owned businesses and their owners. It’s important to know what this means for them.

  • A focus on the digital is geared towards helping businesses grow and continue to trade or provide services in an online marketplace.

  • Reforms to the insolvency are taking place in an effort to better meet the needs of small businesses and ensure they survive.

  • Credit restrictions are being eased to ensure that businesses have the means to invest in and stabilise their businesses.

  • ‘JobMaker’ is a new government initiative that will assist and encourage employers/small businesses in the creation of jobs and the filling of roles.

There are a lot of changes in play when it comes to this year’s budget – Read more on the government website. 


Top bookkeeping mistakes

When it comes to doing the bookkeeping yourself, the scope for making errors is endless. This isn’t because people doing their own bookkeeping are hopeless – it’s simply because as a business owner, there’s often just too much to manage.

These are some of the most common mistakes that are costing Australian businesses:

  • Losing track of transactions by not keeping and filing receipts, no matter how small.

  • Failing to record purchases as assets, eg. printers that have a longer life than most purchases.

  • Trying to scrape records and data together at the last minute when you haven’t been consistent. Maintenance of your books and records is key.

  • Not having backup copies or digital backups.

  • Wasting time struggling to do it all yourself.

  • Classifying things incorrectly, from employees’ status to expenses.

  • Reconciling any discrepancies in bank statements as they arise.

If you need help with bookkeeping, get in touch.