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Bookkeeper vs. Accountant: Why Bookkeeping is the Backbone of Your Business

When it comes to managing your business finances, you might think a bookkeeper and an accountant are interchangeable. However, each has a unique role in keeping your business on track – and, trust us, you need both!

While accountants often get the spotlight, it’s the bookkeepers who work tirelessly behind the scenes, providing the essential groundwork for your business’s financial success. In this blog post, we cover the difference between these two roles and why in our opinion, solid bookkeeping is the backbone of any successful small business.

How Tracking Categories can Transform your Business

One of Xero’s many standout features is the ability to use tracking categories. Tracking categories can provide SIGNIFICANT benefits to your business, ultimately enhancing your financial management, decision-making processes and profitability.

Note: Tracking categories are not just unique to Xero, plenty of other online bookkeeping software have this capability including: MYOB, Quickbooks Online, Zoho Books, Sage Business Cloud Accounting, and Wave.

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The Importance of Net Profit and COGS in Building a Great Business

Here at Freshwater, we encounter many stressed business owners with healthy turnovers but weak cost of sales and bottom line profits. Turnover is often seen as a key indicator of success and while having a high turnover is certainly a positive sign, it’s definitely not the be-all and end-all. Without a healthy net profit and well-managed Cost of Goods (or services) sold, your business may survive in the short term, however, it will likely struggle to achieve long-term sustainability and growth.

Tips for a SEAMLESS tax experience this financial year

Unless you’re expecting a fat tax refund, sorting your taxes is commonly considered a tedious task that fills most people with dread. Every year here at Freshwater, we encounter countless new clients who have managed to fall years behind on their tax affairs DESPITE being owed refunds from each outstanding tax year.

The Instant Asset-Write off explained in simple terms

On 14 May 2024, as part of the 2024–25 Budget, the government announced it will continue it’s aim to improve cash flow and reduce compliance costs for small businesses by extending the $20,000 instant asset write-off by a further 12 months until 30 June 2025. This measure was previously announced as part of the 2023–24 Budget in relation to the 2023–24 income year.

Balancing Business and Motherhood: Lessons Learned and My Tips for Success

Running a business is no small feat, especially when you’re also a solo parent.

Over the course of my journey with Freshwater Tax, I’ve learned many invaluable lessons that have not only shaped my business but also helped me balance my personal responsibilities. Here are some insights and tips designed to help other busy business-owners in my situation (of which I know first-hand) there are plenty!

Claiming Motor Vehicle Expenses: Employed vs. Self-Employed

Navigating the intricacies of tax deductions for motor vehicle expenses can get a bit confusing! This is especially the case because the rules can differ slightly depending on if you are an employee versus self-employed. This blog will take you through the different ways in which you can claim your car costs, depending on your specific situation.

The importance of preparing your Trust Distribution Minute BEFORE June 30

What are Annual Distribution Minutes?
Each year, a discretionary trust’s distributable income must be calculated and allocated to beneficiaries according to the trust deed. Trust law mandates that this allocation be determined and documented through trust minutes before June 30th.

Do you REALLY save tax by running your business as in a family trust structure?

Choosing the right structure for your business is vital for its success and sustainability. One option that offers significant advantages is operating as a family trust. You may have heard that small business owners who run their business structure in this structure actually save tax – do they really?

How to make a tax-deductible, charitable donation in Australia

Australia is known for its generous spirit, especially when it comes to supporting charitable causes. One of the most impactful ways to contribute is by donating to Deductible Gift Recipients (DGRs). Not only do these donations support vital causes, but they can also offer tax benefits.

Work from home? Here’s how to claim your tax deductions correctly…

With the rise of remote work, understanding the rules around claiming tax deductions for working from home has become increasingly important. Regardless of if you’re an individual employee or a business owner, knowing what you can claim can help you maximise your deductions and ensure compliance with ATO regulations.