Voki a Virtual Me!

I was playing around with a free program my son showed me called Voki.  It enables you to create an avatar which you can make speak either by recording your own voice or by using text to voice recognition.

It's really cool and simple to use. 

You can check it out the voki site at  http://www.voki.com/.

My creation is to the right of this blog post.  Click the play button to hear my spiel.

Cheers Katrina

Fair Work Information

From 1 January 2010, all employers have an obligation to provide each new employee a copy of the Fair Work Information Statement which lists the 10 National Employment Statements (NES) entitlements as below:

• Maximum weekly hours of work
• Requests for flexible working arrangement
• Parental leave and related entitlements Annual leave
• Personal/ Carer’s leave (the old sick leave) and
• Compassionate leave
• Community service leave
• Long service leave
• Public holidays
• Notice of termination and redundancy pay
• Provision of a Fair Work Information Statement

This statement must be handed to new employees before, or as soon as possible after, they start employment. There are significant penalties for the employers who fail to give a statement to a new employee. It is recommended that the employer retain details of how the statement was given. Employers affected are those classified as trading corporations, employing people who earn less than $108,300 The new national workplace relations system is gradually introduced to some workplaces and occupations, and will be completely applicable from 1 July 2010, now might be the time for you to consider preparing new employment contracts or/and enterprise agreements covered by the Modern Awards relating to minimum wages, work arrangements, and leave entitlement etc.

                     Katrina Lavrack © 2011 All Rights Reserved

Common GST Mistakes

The GST has been effective since 1 July 2000, and despite a major education campaign by the Australian Taxation Office there are still many errors and omissions being made by small businesses on their GST returns. Most of these errors relate to the over-claiming of GST credits. The ATO has now shifted its GST focus from an education to compliance phase. It is therefore very important for businesses to have the correct systems in place to ensure that GST is correctly accounted for on each transaction and that proper documentation is kept (e.g. valid tax invoices). Failure to comply with the GST rules may result in substantial penalties upon an audit by the ATO.

If you are incorrectly classifying your expenditure or revenue for GST, you may be exposing yourself to future penalties and interest charges from the ATO. At KLBS we ensure that all transactions are correctly categorised. Below are some of the more common GST mistakes made by companies that don't have accurate bookkeeping systems in place:

• Bank Fees (e.g. monthly and annual fees, chequebook fees and loan establishment fees). Bank fees are treated as "input taxed" meaning the bank doesn't charge GST to the customer. Note, GST is charged on credit card merchants fees and therefore a GST credit can be claimed on these expenses;
• Interest Income should have ITS (Input Taxed Sale) as the code.
• Government Fees where no GST has been charged should be costed FRE. Examples include land tax, council rates, water rates, ASIC filing fees and motor vehicle registration;
• Expenses relating to residential rental properties where the entity is registered for GST. Residential premises are input taxed and therefore GST credits cannot be claimed on the expenses paid;
• Business insurance policy. As there is a stamp duty component in the premium which is not subject to GST, a GST credit cannot be claimed on this portion of the payment. The actual amount of GST payable on an insurance premium is usually stated on the renewal form;
• Sale of cars and equipment, including the trade of motor vehicles. The sale of a business asset is subject to GST just like any ordinary business transaction unless the going concern exemption is claimed;
• Government grants and incentives which are received inclusive of GST;
• GST-free purchases such as basic food items, exports and some health services;
• Wages and superannuation payments are non-taxable supplies;
• Entertainment expenses where the business has elected to use the 50/50 split method for fringe benefits tax purposes. Only 50% of the GST credits can be claimed in this situation;
• Motor Vehicles with a purchase price in excess of the luxury car limit of $57,009 GST inclusive. The maximum GST credit that can be claimed is limited to $5,183;
• Sole traders and partnerships are not apportioning input tax credits and making adjustments to expenditure that is partly private and partly business use (e.g. motor vehicle expenses). To calculate their GST liability, small businesses are required to undertake this apportionment each time they prepare their BAS, though in practice the actual private use may not be accurately determined until the business is required to complete and lodge its annual income tax return. Sole traders and partnerships with an annual turnover of up to $2 million that pay GST either on a monthly or quarterly basis can apportion the private portion of GST credits on an annual basis, instead of each time the BAS is lodged;
• Assets financed by way of commercial hire purchase (CHP). While an up-front GST credit is available for businesses accounting for GST using the accruals or invoice basis, this is not available where the business uses the cash basis. When the cash basis applies the GST credit to be claimed is calculated as 1/11th of the "principal" portion of the total CHP payments made during the relevant month or quarter, (i.e. the credit is claimed progressively over the term of the CHP loan). In order to claim the total GST credit upfront, the business would need to consider financing the asset by way of a chattel mortgage;
• Making adjustments to expenditure that is partly private and partly business use (e.g.chattel mortgage)
• Personal Income that isn't really income (eg. a family loan, a gift or a tax refund) is non-taxable.
• Yellow Pages advertising. Where the business chooses to pay for the cost of advertising by instalments, the entire GST is charged up-front. Businesses that account for GST on an accruals or invoice basis can claim this up-front amount in their next BAS, whereas businesses that use the cash basis can only claim a GST credit equivalent to 1/11th of each instalment;
• No valid tax invoice at the time of lodging the BAS. Businesses in this situation should contact the ATO for permission to claim the GST credit.
• Other GST Free items include Milk, tea, coffee, international travel, donations and some first aid supplies.

---

Katrina Lavrack © 2011 All Rights Reserved

Advising Clients of a Fee Increase

One of the hardest things you will have to do as a Sole Trader is advise your clients you are raising your fees.

If you are anything like me, you will put it off time and again, as the voices in your head start saying things like times are tough for everyone or, will my fee increase lose me the client to someone offering a less expensive service?

Tonight I finally bit the proverbial bullet and sent a letter to each of my clients advising of an increase to my fee.

I agonised over the wording all day but I am happy with what I finally produced and I am posting a copy of what I came up with in the hope that I may be able to assist someone else who may be struggling with the right thing to say.

Remember, to be successful we must first be confident and believe in ourself and our worth.

I will let you know in a future post how I went.

Remember to the virtuous is good...but to be virtual is better! ©

Cheers Katrina


SAMPLE LETTER: Naturally you would omit any irrelevant data!

Dear (Client Name),

RE: Fee increase from (Your Business Name).

Firstly, may I take this opportunity to personally thank you for supporting me in the * years since I began my Bookkeeping Service and for choosing me for your bookkeeping needs.

I have avoided raising my rates for as long as possible, however due to the increased cost of living I will be increasing my rates effective from the start of the March BAS quarter (Jan 2011).

For those of you whom I work for on a quarterly basis, this increase will take effect when I process your Jan, Feb, March bookwork (any work related to the Dec quarter not yet processed will be charged at the current rate).

For those of you whom I work for on a weekly/fortnightly basis, this increase will take effect from 1 March 2011.

My offsite rate will increase from $** to $** per hour.
My onsite rate will increase from $** to $** per hour.

As in the past, I am offering a lower rate for work conducted from my own office.

I believe this increase to be commensurate with my qualifications which now include a Certificate IV in Financial Services (which has become a legal requirement for contract bookkeepers) and am proud to announce that I am now also a Registered BAS agent in my own right.

I thank you for your understanding and continued support.
As always I'm here to help.

Sincerely,
(Your Name).

What is a Virtual Assistant?

A Vitual Assistant is a person employed to complete Administration, Data Entry and Secretarial Services on an As Needed basis.

Wikipedia* defines it as:

A virtual personal assistant (typically abbreviated to VA or VPA, also called a virtual office assistant) is an entrepreneur who provides professional administrative, technical, or creative (social) assistance to clients from a home office. 

How Can I Benefit from Employing a Virtual Assistant?

Because virtual assistants are independent contractors rather than employees, clients are not responsible for any employee-related taxes, insurance or benefits. Clients also avoid the logistical problem of providing extra office space, equipment or supplies. They usually work for other small businesses, brokers and consultancy groups.

How do I communicate with a Virtual Assistant?

Common modes of communication and data delivery include the Internet, e-mail and phone-call conferences, online work spaces, and fax machine. Professionals in this business work on a contractual basis and a long-lasting cooperation is standard. 

What should I look for in a Virtual Assistant?

Typically 5 years of administrative experience in real office environments is expected at such positions as Executive Assistant, Office Manager/Supervisor, Secretary, Legal Assistant, Paralegal, Legal Secretary, Real Estate Assistant, Information Technology, et cetera.

Why is it important that my Virtual Assistant has prior experience in a real office environment?

You have worked hard to build your business to the level it has achieved. It deserves to be represented professionally, skillfully and respectfully.

There are many people on the web offering their services to you whom have never worked a day in an office environment, whom do not understand the importance of time management and the value of great presentation and skill. 

On the up side, there are just as many, if not more people whom have the skill-set you require waiting to provide you with great service, skill and ability!

Many of these are stay at home mums, whom have left the Corporate World to focus on raising a family. They already have all the skills and training required to get the job done well, and are in need of the mental stimulation that work provides to break the monotony of watching The Wiggles, or Dora the Explorer all day ;-).

Until next time remember...To be virtuous is good, but to be virtual is better!©

Cheers Katrina

*Any Text reproduced from Wikipedia is shown in italic type.

2011 - Welcome to a New Decade and a New Approach to Business.

Newsflash... KLBS are excited to announce they are now offering Virtual Assistance as part of their commitment to helping your business excel.

Katrina Lavrack Virtual PA...because you dont have enough hours in your day.©

As a new decade dawns, there is no better time than now to reflect on the year that was and the direction your business is heading.  No doubt you have made countless New Years Resolutions regarding your personal and family life but what about your business?

Are you ready to enter the Virtual World?  If your answer is no I implore you to reassess your stance on the matter. 

Thanks to the power of the internet we can now work virtually anywhere and any time we want. While some people may find this unnerving, let me assure you that once you get "tech savy" or put your faith in someone else that is, a whole new world of opportunity awaits.

Over the next few weeks, I will be posting Blogs on Virtual Assistance and how it can help make your business perform better and smarter as well as outlining how Katrina Lavrack Bookkeeping and Virtual PA's can give you more time in your day.

Until next time remember...To be virtuous is good, but to be virtual is better!©

Cheers Katrina