Carbon Bookkeeping's EOFY tips to get your bookkeeping in order

EOFY Tips To Get Your Bookkeeping In Order

In most cases the financial year runs 1st July to 30th June the following year. This is the time when the businesses close their books for the year and then start afresh for the new financial year. To enable the business to close their books, most bookkeepers have the unenviable task of dotting all the Is and crossing all the Ts. Each business needs to have their books reflect the exact financial position at year end.

Monthly Procedures that can help at EOFY

With the end of financial year nearly upon us, planning ahead can assist with completing all the tasks required. When you have great procedures already in place at the end of the month and end of quarter, this really helps burden the load throughout the year rather than have it all to be completed at once. By introducing these procedures monthly, it means that a lot of items have already been checked come end of year. Here is a list of some items to check on a monthly basis so there are no surprises that pop-up end of year:

• Statement Balances – All bank accounts can be checked every month, including credit cards, back to the physical statement. Online accounting software with bank feeds is fantastic, but it’s still worth double-checking.
• Wages Payable – Confirming wages paid every month matches with payrolls generated in the online system.
• General Ledger – Ensure all transactions have been coded to the correct account along with the correct GST Coding.
• Manual Journals – Complete all end of month journals as required including accruals and prepayments.
• Review Balance Sheet – Look for any movements and ensure all items are coded correctly.
• Profit and Loss – Check through the report to notice any consistent patterns. Any significant variances are to be checked and corrected if necessary.
• Inter Entity Accounts – Ensure these are reconciled and match in both bookkeeping software accounts.
• ATO Liabilities – check the amounts agree with the ATO Portal.

Procedures for EOFY

Once a final check as above has been completed on a monthly basis, the task of finishing the end of year checks becomes a bit easier. All of the above need to be checked over again for the entire financial year as well as the following:

• Confirm that the trial balance from the last financial year matches with the year-end balance per your accountant as they will often make minor adjustments to your file.
• Acquire the bank statements so they can be added to the work papers to show all bank balances and credit cards are correct, allowing easy verification for your accountant
• Ensure the payment summaries match up with the wages figures on the profit and loss and the monthly/quarterly activity statements during the year.
• GST Reconciliation – ensure that this is all matched up and reconciled for the year, matching the monthly/quarterly activity statements and reconciling with any adjustment between cash and accrual accounting.
• Have all invoices and bills been entered so a list can be completed to see how much money is owed to creditors and how much is still to be received from debtors.
• Confirm all current year activity statements are completed and lodged in order to ensure that any necessary adjustments are included in the final BAS
Once these checks have all been completed, the work papers are compiled which confirms all balances at the end of the financial year.

This saves time for your accountant as the checks have already been completed for them and they can concentrate their efforts on proactive advice for your business. Happy accountants + happy bookkeepers = happy businesses. Feeling a bit overwhelmed? Contact Carbon Bookkeeping if you need assistance, on (08) 9446 8588.

Carbon group bogan bingo 2017 raising funds for Vinnies WA CEO Sleepout

Carbon Goes Bogan To Raise Funds For Homelessness

In the busy and stressful time of EOFY, many business owners and workers need an excuse to let their hair down and have a laugh, and that’s exactly what they did at our annual Bogan Bingo charity night on Friday!

Half game show, half party, this is the third year that Carbon have hosted the event. And it gets bigger and better each year! We had 150 bogans join us at The Rise in Maylands for a night full of laughs, jokes, air guitar competitions, biggest bogan competitions, and of course, some bingo. Jokes aside, there was a serious side to the night, since the purpose was to raise funds for Vinnie’s CEO Sleepout. Carbon’s co-founders, Jamie Davison and Nathan Hood are due to sleep outdoors on 22nd June with other CEOs in Perth, to raise awareness of homelessness; an initiative run by Vinnies since 2006. It will be the third year the guys have participated, and they have raised a total of $26,422 between them to date.

Friday’s event is about to boost that up massively, since we raised more than $9,000 on the night, through ticket sales, drink and food sales, raffles, auctions and door games. Big thanks to our clients who donated gifts as prizes for our raffle: Grazie Gifts, Life Ready Physio, Pigeonhole, House of Honey and Viva Photography.

Vinnie’s spokesperson Stephanie Rullo started the night by reminding the bogans of the work that Vinnies do, and how their donations would help.

“Vinnies was absolutely overwhelmed by the support of the community that attended the Bogan Bingo night put on by Carbon Group. Both Jamie and Nathan have been supporting Vinnies and the CEO Sleepout, with this being their 3rd year.”

On any given night in WA over 9,500 people are experiencing homelessness. Of these people, 25% are under the age of 18 – an alarming statistic! Growing unemployment , domestic violence, family breakdown and housing stress are major causes, proving that homelessness can happen to anyone at any time. “Support from leaders like Jamie and Nathan is truly vital in ensuring we can turn the light on homelessness and continue to help people experiencing homelessness in our community.”

Carbon’s Nathan Hood acknowledged the support the community showed on the night. “It’s fantastic that we are able to leverage from our clients, family and wider networks to promote these events and make them so successful. Without their support, we wouldn’t have so many people attending our events and therefore raising the amount we have reached.”

Thank you to everyone who attended for making it such a great night, we really value you supporting Carbon’s events and making them a success. If you couldn’t make the night, there is still chance to donate through the donation’s page on the CEO Sleepout website. Our Bogan Bingo night will return next year so keep an eye out for information on Carbon’s event page early next year!

Carbon Group Accounting Perth - last minute tips to maximise your tax deductions

Last Minute Tips to Maximise Tax Deductions

It’s that time again. We have a new budget to consider, and the end of the year is fast approaching. So below we’ve highlighted a few tips that could help maximise your tax deductions, and you still have time to implement them!

Bring forward your expenses

If you know you are going to have to spend money on tax deductible items in the near future, it may be an idea to spend that money now as opposed to waiting until the new year. Bringing forward your expenses means you get that tax benefit immediately, rather than waiting another year to take advantage of spending money on disposables, consultants and various other expenses.
If you are in a small company, then the benefit is even greater, as the tax rates drop as of 1st July 2017. This means that if you spend now, the benefit of that tax deduction is greater this year, than it will be next year. You get your benefit sooner, and it’s a little bigger.

Capital Purchases

Before the budget announcements in early May, it was expected that small business owners would no longer be eligible to write off equipment purchases over $1,000 as of 1st July 2017. That has since been extended, meaning there is less need to rush, but if you are close to making a decision on buying plant and equipment, it may still be worth it to buy now. Again, if you are in a small company, there are extra cash benefits to spending in this financial year as opposed to next year.

Write off your bad debts

As a business owner, this is an unfortunate part of business. In order to make the best of a bad situation, when you know a debt is bad, you should write it off. If you can do so before the end of the financial year, at least you won’t potentially pay tax on money you are unlikely to receive. Reduce the pain by writing off that debt.

Restructuring your business

Whilst not necessarily saving you tax, restructuring at this time could save you administration and accounting costs. A change in the middle of a financial year doubles the work you will need to do at the end of the year to lodge your returns. If your accountant has been telling you that will need to eventually change structures, now may be the most cost effective time to do so.


Moving funds into superannuation is starting to become harder. Deductible contributions are reducing, and over the last year there has been a lot of debate about how much you can get into superannuation over your working life. Rules may change further soon. If you have plans to utilise super, you don’t have long before new rules will affect long term plans. It may be time to talk to your advisor/accountant.

At Carbon, we have a team that can help you take advantage of the end of the financial year, giving you an advantage in the new year.
If you want tailored advice, specific to your circumstances, contact our team for a complimentary chat. There’s still time to make changes that could save you big at the EOFY! Call us on (08) 9446 8588.

Why are some business loans rejected, and how do you ensure yours is approved? Carbon Finance Brokers.

Why Do Some Business Loans Fail?

Access to money is greatly important for all businesses, particularly businesses who are looking to grow and expand. Business owners may be all too familiar with hearing a “no” from the bank, but why? Carbon’s finance experts have put together a few points that may explain why.

The broker hasn’t presented the deal correctly

Based on the fact that only 18% of all commercial lending deals go through brokers, not all brokers have the skill to help you. Now this doesn’t mean dealing direct with the bank is your best option. A good business broker is an amazing asset to you, due to the broker being able to work on your behalf and present your loan to all lenders. They also only get paid when they successfully help you and they’re paid for the help from the banks, not your profits!

There is no security to use

Many business loans are secured via residential property and for business owners, the family home is used as security. When times are good, it’s important to pay down debt on the family home to keep the “jaws” between valuation and amount owing as wide as possible. Having equity can mean purchasing a new business is possible, or refinancing to reduce your instalments and free up capital to invest into your business for a business loan, working capital or purchase equipment. During tougher times, it’s important to be disciplined and ensure you pay slightly more than minimum payments so you have a buffer should times get extra tough.

The numbers just don’t add up!

Many businesses operate profitably but paint a different picture on paper. Having financials that you can use as and when you need them can be important. There are still loan providers in the market who operate using a “low doc” approach, but the rate you end up paying could be significantly higher than compared to the best available. Similarly, some businesses leave getting their figures presented until the very last minute. Whilst that can sometimes be tactical, being organised and having a long term plan that’s well documented can be the difference between a successful application and not.

So what do Carbon Finance recommend?

Carbons Lead Senior Brokers Ryan Eastman and Jacob Reed, apply their experience in the industry to help you and your business. A thorough review of your balance sheet and a conversation about your businesses goals will be enough for them to establish whether they can help and save you money on existing loans or how to structure a new loan so that it works for your business. Ryan and Jacob have a panel of lenders they can call upon to assist you whether you’re a budding entrepreneur or a Director of an established business. Contact the Carbon Finance team today, on (08) 9446 8588.

Carbon Bookkeeping were announced as National Bookkeeping Firm of the Year at the Australian Accounting Awards 2017

National Bookkeeping Firm of the Year

Carbon Bookkeeping are extremely proud to have been named as the National Bookkeeping Firm of the Year at Accountant Daily’s annual Australian Accounting Awards, out of over 7,000 bookkeeping firms nationwide. We celebrated on Friday evening at The Sofitel Sydney Wentworth, with a room full of 500 other professionals in the accounting and bookkeeping industries. These awards recognise excellence within the accounting industry Australia wide. Head over to to see the full list of winners.

We’d like to express our appreciation to our most important stakeholders, our clients. We’re ever-grateful for the support you have all shown during the past three years, and we have enjoyed sharing our journey with you. We take pride in the service our team offer clients, and go above and beyond standard number-crunching. Carbon are here to offer skills and experience to help your business grow, not just to report on day-to-day transactions. We take great pride in seeing each of our clients achieve their individual business and personal goals.

Thank you also goes to Xero who have been one of the building blocks to Carbon Bookkeeping. Their online accounting platform makes data entry tasks easy, quick, and often automated, allowing our bookkeepers to spend their time meeting with clients and offering them strategic advice.

“Congratulations to Carbon Bookkeeping on being named Bookkeeping Firm of the Year. It’s a well-deserved accolade for the company,” Trent Innes, Managing Director of Xero Australia said.

“Bookkeeping is more than just “doing the books” or payroll, it’s part of the foundation of a business. Carbon Bookkeeping is a great example of how cloud accounting is helping businesses to be more effective by implementing efficiencies, so business owners can focus their time on building the business and more importantly have the freedom to do the things they want to do.Well done Team Carbon!”

Carbon Group were finalists in a further five categories:

  • Bookkeeper of the Year – Aimie Wilson
  • Diversified Firm of the Year
  • Fast-Growing Firm of the Year
  • Marketing Program of the Year
  • Boutique Firm of the Year

A huge congratulations to all other individuals and firms who were finalists and winners in this year’s accounting awards. It’s a fantastic achievement and really highlights your contribution to the industry.

Our aim is to constantly review our service offering and build on what we can offer our clients. Although technology is ever-changing and automating our industry, we want to ensure that we still continue to build personal connections with our clients.

EOFY Business Insurance Tips Carbon Group

EOFY Business Insurance Tips

With the end of the financial year (EOFY) fast approaching, now is a good time to review your insurance and the levels of cover you currently have in place. Whilst the insurance may not be due on the 30th June, this time of the year presents an opportunity to review things such as turnover, profit and loss, stock levels, equipment purchases as well as any changes to the business that may have taken place throughout the year.

Talking to your insurance broker about any of the above shouldn’t wait until the renewal is due. Too often this is the case and business owners are caught short in the event of a claim. Things to consider discussing with your broker are:

  • Reviewing the level of cover for the business’ contents and stock. Businesses may purchase new equipment or increase stock levels for a number of reasons which may require an increase in the cover.
  • Turnover – These figures are used to calculate the appropriate level of cover for business interruption and public liability. If the turnover is higher than estimated, you may need to look to increase or amend the cover accordingly.
  • Business Activity – There may have been a change in the business activity throughout the year where different services are used, different suppliers etc. It is important to communicate these changes with your broker to ensure that the policy that is currently in place is most appropriate.

At Carbon Insurance Brokers, we pride ourselves on being accessible which encourages strong communication with our clients. Our insurance experts have access to a wide panel of providers, ensuring we find a policy that best matches your needs. In between compiling your financials in preparation for the EOFY, call us to discuss your insurance needs. You can call our office on (08) 9446 8588.

Carbon-Group-Networking-May with Charlie Gunningham Business News and Bernard Chia Alyka

Quarterly Networking Event- May

Fantastic turnout at our quarterly networking event on Tuesday evening, kindly hosted by the team at Mayfair Lane. It was great to see so many faces keen to hear insights from our two industry experts; Charlie Gunningham, CEO, Business News, and Bernard Chia, Managing Director, Alyka.

Whilst providing valuable information on the economy for WA businesses, it was also a great opportunity for some networking amongst like-minded business owners and individuals. Hopefully you met some new faces and built some new business relationships.

Special thanks to our speakers Charlie and Bernard. I’ve summarised some key takeaways below:

Charlie Gunningham – Outlook for WA Businesses in 2017 and Beyond

  • 2016 was a tough year in our local economy, but 2017 already looks brighter
  • Despite the downturn, the economy is still growing. Unemployment is under 6% and there are bright spots
  • Mining is not going away, and agriculture, tourism, education, health and IT show real promise for local economy
  • If you need to turn your business around you need 3 things:
    • Admit you’re going in the wrong direction
    • Find a way of turning the convoy around and then;
    • Strike out in the right direction (hint: the trend is your friend!)

Charlie is offering everyone who attended a free 2-month trial to Business News and the BNiQ Search Engine (Book of Lists). Simply email Charlie and mention this event!

Bernard Chia – Next Generation of Digital Marketing

  • 2016 State of WA Digital Report shows up to 75% of WA businesses do not currently have a system to plan, execute and measure digital marketing activities
  • Whilst there are many different digital marketing opportunities today, your website is still the most important element
    • All opportunities converge to your website, hence it is important to get it right first – great content, creative, information architecture, and call to actions to maximise opportunities
  • Artificial intelligence driven programmatic ads are the future of PPC advertising in WA
    • The system will automatically optimise campaigns to ensure the budget delivers optimal results sooner, minimising human involvement and allowing the majority of budget to be spent on media
    • Audience group targeting opportunities goes beyond digital – we can also target individuals based on their offline behaviours
    • Targeting options are constantly expanding – with increasing reach and depth with digital audio ads, digital OOH ads, etc
    • Display ads are also much more interactive and will cut through the majority of ads being displayed today
  • E-newsletter automation should be used as a lead nurturing strategy in every business
  • Beyond lead nurturing, e-newsletter automation can also be used to measure NPS thus providing multiple benefits beyond sales opportunity

Businesses can download the 2016 State of WA Digital Report to help them benchmark their own digital marketing efforts.

Lastly, our next networking event will be on Tuesday 29th August, with guest speakers from Yappy, Media Stable and Mills Oakley. Location is tbc, so save the date and keep an eye out for invites which will be sent out nearer the time. Ticket sales from these events are donated to charity. This quarter, we raised over $600 for Classroom of Hope! See you at the next event.

Fringe Benefits Tax Accounting Perth Carbon Group

Fringe Benefits Tax

Fringe benefits tax (FBT) is a tax payable for certain benefits that employers provide to their employees, their family or associates.

These benefits may be in addition to their existing salary package and may include things such as car expenses, car parking, entertainment and other expenses. The ATO has put together a list of the types of fringe benefits common within the workplace.

If you are director of a company or trust, benefits that you receive may be subject to FBT.

FBT is separate from income tax and GST and is calculated on the taxable value of the benefits provided to the employee. Unlike income tax, the FBT year runs from 1st April to 31st March each year.

Do I Need To Pay FBT?

As an employer you may be required to pay FBT if you provide certain benefits to an employee (or associate) in respect of their employment.

Some examples include:
• Employees using a work car for private purposes (this includes driving it home and keeping car at the employee’s residence)
• Paying an employee’s gym membership
• Providing free tickets to the football or a concert

FBT Exemptions & Concessions

Some benefits are exempt from FBT or may receive concessional treatment. These include:
• Portable electronic devices including mobile phones, laptops and tablets
• Computer software
• Taxi travel expenses
• Living away from home allowance

For a complete list of benefits that are exempt from fringe benefits tax, visit the ATO website. Contact our office if you’re unsure which exemptions and concessions apply to you.

How To Register For FBT

If you’ve determined that you are providing fringe benefits and are required to pay FBT, you must register for FBT. This can be done by phone or via a registered tax agent. The ATO website has further information that can assist with getting you started with FBT.

If you’re looking for assistance with anything tax related, contact the team at Carbon Accounting. Call on (08) 9446 8588.


EOFY Processes For Payroll

Wrapping up the end of financial year can be a stressful time for many business owners and those responsible for ensuring accounts are finalised before the financial year comes to an end. But with the right processes and systems in place, payroll can be a breeze for businesses of any size or industry.

Below, we’ve highlighted a few key dates that you need to be aware of. As all these things need to be reported to the ATO, you need to ensure that your financial statements match your payment summaries and match the business activity statements (BAS) that you have lodged during the year. The ATO has sophisticated data-matching software that can easily pick up reports that do not match.

Key Dates For EOFY Payroll

• PAYG payment summaries (previously known as group certificates) are to be provided to all employees by July 14th
• PAYG withholding payment summary annual report must be with the ATO (showing amounts paid to all workers and the amounts withheld) by October 31st
• Superannuation for the fourth quarter (1st April to 30th June) needs to be received by the superfunds by 28th July

Best practice would be to incorporate these checks into your monthly/quarterly bookkeeping process, however at a minimum it should be done on an annual basis. It is very important as this will also ensure that your employees’ individual tax returns are not affected by inaccurate record keeping.

Payment of superannuation by the due date is very important not just at the end of the financial year. If superannuation is not paid by the due date, then technically you are in breach of the superannuation act and the payment of superannuation will no longer be a deductible expense for your business and you can also be subject to various fines, penalties and interest. The ATO has extraordinary powers when it comes to non-payment of superannuation and can go outside of corporate structures to recover the money from the directors’ personal assets (eg. the family home). Thus payment of superannuation by the due date should be a priority for your business.

Key Bookkeeping Terms

Financial Statements: A formal record of the financial activities of an entity that quantifies the financial strength, performance and liquidity of a company.

Business Activity Statement (BAS): A form submitted to the ATO by all businesses to report their taxation obligations, including GST, PAYGW, PAYGI and FBT.

Payment Summary: Summary of employees’ total PAYG withheld against gross earnings (salary/wages, commissions, bonus payments), as well as taxable deductions within a financial year.

Looking for assistance with your bookkeeping or EOFY processing? Contact the team at Carbon Bookkeeping to get started. Call (08) 9446 8588.


5 Tips to Lower Your Mortgage

There are many ways in which you can try and lower your mortgage balance and / or your mortgage repayments. We’ve come up with what we consider to be the top 5 ways to save some money and pay off that mortgage sooner.

Have Your Mortgage Reviewed Regularly

Most people don’t know how their existing mortgage compares in the marketplace. In many cases, re-negotiating your loan with your existing lender can lower your interest rate considerably – and if not, then moving to another lender with a lower rate may be a great way to save hundreds or thousands of dollars in interest each year. Some lenders even offer cash back incentives for you to refinance to them so call your broker to see if there’s something better out there for you.

Use an Offset Account

If you find you save some of your income into a savings account, why not try an offset account instead? Essentially, putting money into an offset account is similar to putting extra money into the loan. Most lenders offer an offset facility on their variable loans and some let you have one on fixed loans – you can use the spare income you have to lower your interest repayments – speak to your broker about how an offset account can benefit you.

Consolidate Your Debt

Paying off the same amount in credit card debt and car loans as you do in your mortgage payment? Sometimes, rolling your personal debt into your home loan can greatly reduce the interest rate payable on the personal debt, so you can save money there; and if you continue to make the same repayments as before you’d close the loans out sooner. You could also build a handy redraw fund into your home loan this way – allowing you access to funds for something worthwhile at a later date.

Are Your Loans Structured Correctly?

For those of you with multiple properties and investment loans, structuring your loans correctly is vitally important in keeping your accountant happy. Loans that are structured incorrectly can see you lose money by not utilising investment tax concessions correctly. Carbon’s experienced finance brokers work in conjunction with our accountants to ensure your loans are set up in the correct way for maximum financial benefit.

Pay Weekly or Fortnightly

Some lenders offer you the ability to pay more often than monthly. Doing so can mean that you pay more into your loan each year than normal. By paying more, you are reducing the interest payable on the loan each year which can result in having your loan paid off years earlier. For example, if you pay fortnightly payments by halving the monthly payment, you are essentially making one full extra payment into your loan each year as there are 26 fortnights in the year which equals 13 months of normal payments rather than the usual 12. Why not ask your broker if this is an option for you?

If you need assistance with any of the above, contact Carbon Finance for a complimentary discussion. If you haven’t had your finances reviewed for some time, make the call today and see how much you could save.