Useful Money Stuff Blog

Here's where you can find helpful information on various money, accounting and finance topics.

Taxable Income, Tax deduction & Tax exemption Explained (Easy)

When you do your taxes, the words “tax deduction”, “tax exemption” and “taxable income” will often come up. What are the meanings of these words? When you look in the dictionary, they’re definitions are even more confusion. The thing is that these words should be understood together, not in isolation. In this blog post, these words will be explained in a way that’s easy to understand and I’ll show you how they’re all linked together.

Continue reading

Difference between Accrual & Cash Accounting and Impact on Your Business (CPA explains)

Accounting is about recording things and how we record it. What’s accrual accounting then? It’s “how” you record – essentially it’s a way of recording or recognising sales or payments when things happen, not necessarily when things are paid in cash. Find out more…

Continue reading

What is an Account? What's a Balance? (Easy Definition)

Have you heard the phrase “just put it on my account?” Also, what’s a “balance”? People use these terms when they might not have the money to pay someone on the spot. But what exactly is an account and what’s an account balance? And how does it work? Find out…

Continue reading

What is Accounting? (Easy Definition Explained by a CPA)

According to the Merriam Webster dictionary, accounting is the system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results. Here’s how to really understand it through examples.

Continue reading

Double Entry Bookkeeping Explained (in Simple English)

Double entry bookkeeping is something that confuses a lot of people. Essentially, what it means is that when you make a sale, record a bill or record any other type of transaction in your business, your accounting system will record entries in both the right side and left side of an account (an account is like a storage compartment with two sides). Read on to learn more…

Continue reading

Debits and Credits Explained (the Easy Way)

Debits and credits are often a confusing concept because the words seem to be really technical but in reality, their definition or meaning is really quite simple. They’re just weird names to say that this is the left side of an account and this is the right side of an account. Read on to learn more…

Continue reading

What is accounting profit? (Explained in 3 steps)

The dictionary definition of accounting profit is that it’s the amount remaining after you take away your expenses from your income/revenue (the money you generally bring it). But there’s more to this… that is, what qualifies as revenue item and what qualifies as expense.

Continue reading

What is accounting? (A simple explanation)

In easy to understand language and in a simple explanation, we answer the question, “what is accounting?” Read on to find out…

Continue reading

The Accounting Equation (with Real Life Examples)

Although the accounting equation is simple - Assets – Liability = Equity, many people don’t know how it applies in real life examples and what equity event means. Check out this blog post to finally understand what the accounting equation is, how to rearrange it and see how it applies in real life examples.

Continue reading

What is a Chart of Accounts? (And Setting One Up Successfully)

A chart of accounts is just accounting jargon and it’s pretty much the accounting world’s version of a book’s table of contents. Its definition or meaning is quite simple – in essence, it’s a list of accounts. Easy right? This post will help you understand how it is structured, why the length and names of your accounts is important and how the list changes with your business.

Continue reading

Expense Accounting Definition (Easy Explanation by a CPA)

Did you know that when money goes out of a bank account (through expenditure), it’s not always for an expense? This post will help you understand once and for all what an expense is in accounting and make its meaning easy to understand. Remember, expense does not always = money.

Continue reading

Depreciation definition explained

The accounting definition of depreciation is often one that confuses a lot of people. In this post, the meaning of depreciation will be explained to you in simple language using a simple example – that of a banana.

Continue reading

The easy-to-understand meaning of accounts receivable (with examples)

Accounts receivable is a basic accounting word but its definition is often explained in a confusing way. In this post, you’ll have accounts receivable explained in a way where you can finally understand its meaning – both the big picture and in detail.

Continue reading

Meaning of General Ledger in accounting (Illustrated definition of what it is and what it does)

A general ledger is the backbone of an accounting system – but the dictionary definition and meaning is a bit complicated and confusing. In simple terms – it’s an organization system on steroids. Just like a wardrobe that’s organized in such a way where you can find anything.

Continue reading

What’s equity? Easy to Understand Meaning & Definition

Equity is one of those scientific sounding words that you’ll likely hear about when you borrow to buy a house, seek investment or bring in a partner for a business. But it’s not hard at all to understand what equity means. In a nutshell, it pretty much means the dollar or percentage amount of ‘real’ ownership you have in something.

Continue reading

The meaning and definition of liability (for the rest of us non-finance people)

Does your face go blank when your accountant or banker asks you about your liabilities? “Liabilities” is a word that is a basic part of running a business and for life in general (did you know your credit card debt was a liability?) so knowing what it means helps you become more financially savvy and hopefully, less stressed out. Learn what it means (in plain and simple English)

Continue reading

What’s Accounts Payable? (Easy Accounting Meaning & Definition)

What’s accounts payable? The meaning of accounts payable is that it is an account that holds all the amounts that you need to pay people. Think of it as a compartment that holds all your IOUs.

Continue reading

What’s an Asset (Easy Accounting Meaning & Definition)

Don’t know what the meaning of asset is when it’s used in accounting? I’m going to explain to you the definition of what an asset is in simple and plain English.

Continue reading

Unit 10 Activity 2 - Xero for Small Business Invoice Details

Download the following image for use in Unit 10 Activity 2, Part 1. You can download it by right-clicking on it and saving it somewhere.

Continue reading

Unit 1 & 2 - Xero for Small Business Case Study & Logo

Unit 1

Download the case study for the fictitious company — Cafe Catering Pty Ltd here:

Continue reading

Unit 23 Activity 1 - Xero for Day-to-Day Business DIY Online Bookkeeping Course

The below are files that you will need to complete Unit 23 Activity of the Xero for Day-to-Day Business bookkeeping:

Activity 1

Continue reading

Unit 21 Activities 1 - Xero for Day-to-Day Business DIY Online Bookkeeping Course

The below are files that you will need to complete Unit 21 Activity 1 of the Xero for Day-to-Day Business bookkeeping:

Vendor collated spreadsheet:

Continue reading

Unit 20 Activities 1 & 2 - Xero for Day-to-Day Business DIY Online Bookkeeping Course

The below are files that you will need to complete Unit 20 Activities 1 & 2 of the Xero for Day-to-Day Business bookkeeping:

Activity 1

Continue reading

Unit 18 Activity 1 - Importing bank statements for Xero for Day-to-Day Business DIY Online Bookkeeping Course

Here are the following files for their respective bank accounts:

a. WBC - Cafe
wbc-cafe-bank-account-import.csv (267

Continue reading

Unit 16 Activity 2 - Employee TFN for Xero for Day-to-Day Business DIY Online Bookkeeping Course

To save these images onto your computer or cloud drive, right click on the image and then click “Save as” and select an appropriate location to save the image.

Continue reading

Unit 10 Activity 1 - Branding on Invoices for Xero for Day-to-Day Business DIY Online Bookkeeping Course

Use the first image (the coffee cup and spoon) for the cafe arm and the second image (the hand holding the dish) for the catering arm of the business.

Continue reading

Unit 8 Activity 1 - Expense Claims in Xero for Day-to-Day Business DIY Online Bookkeeping Course

Here’s where you can download the receipts to complete Activity 1 of Unit 8 - Expense claims in Xero for Day-to-Day Business.

To save these images onto your computer or cloud drive, right click on

Continue reading

Unit 7 Activity 2 - Purchases of Xero for Day-to-Day Business DIY Online Bookkeeping Course

Here’s where you can download the purchase invoice images to complete Activity 2 - Purchases of the Xero for Day-to-Day Business.

To save these images onto your computer or cloud drive, right click on

Continue reading

What is depreciation recapture? (Explained in Pictures)

Depreciation recapture happens when you sell something and the gain or a portion of the gain is classified as ‘ordinary income’ (instead of capital gain which has more favorable tax rates).

Continue reading

Types of Depreciation Methods and their Formulas (US IRS Taxation)

It in this post, I’ll put in a table, the types of depreciation methods that are acceptable to the IRS in calculating depreciation. Depreciation is the reduction in the value of something you purchase and keep for use. For example, if you purchase a car for $25,000, normally you can’t

Continue reading

MACRS Depreciation Table (US IRS taxation)

MACRS is a depreciation system that’s used to calculate depreciation for most property that was placed in service in from 1987 onwards. Placed in service essentially means put in use.

Continue reading

How to Put in Annual Leave Loading or Other Leave Loading in Xero

Leave loading is an amount paid in addition to leave payment. In Australia, annual leave may attract 17.5% in loading (the amount in addition to leave payment when you take it). This means if you get annual leave of $100, you’ll also get an additional $17.5 on top, so

Continue reading

About the Short Course Notes category

In this category, I’ll be putting up any downloads and additional notes for students of current short courses that I run.

Continue reading

Xero Level 1 - Session 2: Bank Reconciliation Activity Uploads for Xero

Here are the instructions for the activity:

  1. Create two bank accounts in Xero. Name one of them: “Everyday Transaction” and name the other “Overdraft”. Use default settings
Continue reading

Uploads of images that can be used as in Intro to Xero Class activity

Here are images that can be used in Intro to Xero Class activity to upload a a logo.

To download on your computer, right click on the image and “Save As” on

Continue reading

Sample CSV bank file for Bank Reconciliation Activity in Xero

Here’s a sample CSV file containing sample bank transactions to use with an activity in Xero run for my Xero classes.

EDIT: The below is an old file now as the new file is now

Continue reading

Xero Invoice Template if You Don't Want to Show Line Items or Invoice Detailed Lines

Sometimes when people quote or invoice, they don’t want to show detailed line items but still want to record the data.

A way to do this is to use custom docx. invoice templates that create an

Continue reading

Excel Template to Prepare CSV for Accounting Software Import - SageOne

Here’s an excel template file that you can fill in if you have bank transactions that need importing into SageOne.


Continue reading

How to Reconcile Bank Transaction that is Less than Invoice Amount Due to Bank Fees and Merchant Fees Like Paypal and Stripe being Deducted

Sometimes when you sell something to someone online you might charge them $20. But when the money hits your bank account, it might be $18 - or an amount less than the invoice because bank or merchant fees (e.g. $18 because of a $2 merchant fee e.g. from paypal or stripe) have been

Continue reading

Receipt from Paypal for services delivered by company, who do I put as a supplier in supplier invoice - how to account for it?

When you put in your purchases as supplier invoices, you may look for documents to ‘prove’ your purchase.

Examples of these documents can be:

Continue reading

What’s the difference between an expense and a liability and can something be a liability and an expense? e.g. wages liability and wages expense

Let’s use superannuation as an example because you can have superannuation expense and superannuation liability.

What’s the difference?

Continue reading

Part 6 - Superannuation, PAYG Withheld & Payment Summaries

This post follows from Part 5 - Employee Portal for Timesheet and Leave.

This is the final part of the payroll guide and in this guide we’ll go

Continue reading

Part 5 - Employee Portal for Timesheet and Leave

This post follows from Part 4 - Processing Payroll in Xero and Generating Pay Slips.

In this post we’ll go through giving employees access to Xero payroll so

Continue reading

Part 4 - Processing Payroll in Xero and Generating Pay Slips

This post follows from Part 3 - Adding Employees.

To process pay and then provide your employee with a payslip, you’ll need to:

Continue reading

Part 3 - Adding Employees

Now that you’ve set up your payroll system settings in Part 2 - Setting Up Your Payroll & Gathering Information.

It’s now time to set up your employees in the system. Setting up

Continue reading

Part 2 - Setting Up Your Payroll and Gathering Information

This post follows from Part 1 - Introduction

To get started doing your payroll there are a few things you’ll need to organise.

Continue reading

Part 1 - Introduction

Payroll is involved with everything to do with the payment of an organisation’s employees along with meeting obligations associated with payroll such as superannuation.

Continue reading

Cheat Sheet: Accounting Ratios for Business Performance

What are ratios and what are they used for?

Ratios are measurement mechanisms that allow you to quickly see how well specific parts of your business are performing. One very simple

Continue reading

Part 8 - End of Year Reports & Budgeting

This post is the final one for the Intermediate Guide to Using Xero Accounting and it follows from Part 7 - Reports in Xero

In this post, we’ll go through:

Continue reading

How to Do Your Instalment Activity Statements (IAS) in Xero

An Instalment Activity Statement is a form that businesses use to report to the ATO on PAYG tax withheld, PAYG instalments and Fringe Benefits tax.

Continue reading

Doing your VAT return on Xero for reporting to HM Revenue and Customs

If your business is in the UK, depending on your registration, your business may need to a VAT return.

To prepare a VAT Return in Xero, follow the steps below:

Continue reading

How to Set up Form 1099 in Xero for reporting to IRS

If you’re based in the US and use contractors, it’s likely that you’ll need to report the income you pay to them using a Form 1099. Fortunately, Xero makes it easy to prepare one of these forms.

Continue reading

Part 7 - Reports in Xero

This part follows on from Part 6 - Doing Your BAS in Xero.

You’ve learnt now to make transactions (that’s enter data) and check

Continue reading

How to Prepare a NZ GST Return in Xero

If your business is in New Zealand, depending on your registration, your business may need to report to the Inland Revenue for their GST via the GST Revenue and Provisional Tax Return.

Continue reading

Part 6 - Doing Your BAS in Xero

This post follows from Part 5 - Weekly and Monthly Routine Tasks.

The Business Activity Statement (BAS) is a form that businesses

Continue reading

Part 5 - Weekly and Monthly Routine Tasks

The post follows from Part 4 - Managing Multiple Currencies

Often what happens after people have learnt how to create transactions

Continue reading

Part 4 - Accounting for Multiple Currencies

This post follows from Part 3 - Dealing with Fixed Assets.

This post will go through managing multiple currencies in Xero. This

Continue reading

Part 3 - Dealing with Fixed Assets

This post follows from Part 2 - Managing Inventory and this post will go through:

  • What are fixed assets
Continue reading

Part 2 - Managing Inventory

This part following from Part 1 - Introduction to Intermediate Guide to Using Xero

What’s inventory?

Continue reading

Part 1 - Introduction

Now that you’re comfortable with setting up in Xero, creating transactions (invoicing and billing) all the way to reconciling your transactions with your bank in and out flows, it’s time to move on from the basics to learning how to use Xero to oversee the performance of a

Continue reading

Part 6 - Bank Reconciliations

This follows on from Part 5 - Purchases in Xero.

A bank reconciliation is just a fancy way to say ‘check if everything is in order’. What you’re doing in a bank reconciliation is checking

Continue reading

Set up Your Inventory In Xero - What is Inventory, When to Use it and How to Use it

Inventory are things/materials that a business holds temporarily and then can be sold. For example, if you’re a computer shop, the computers that you have on hand is your inventory that will be sold to customers later on. You need to record the stuff that you have on hand

Continue reading

Customising your invoice layout and design in Xero - Advanced

There are two ways in which you can customised your invoice in Xero:

  • Standard Approach - you kept the layout of the standard invoice that Xero provides but change things up like different text, font
Continue reading

Part 5 - Making Purchases in Xero

This part follows from Part 4 - Invoicing in Xero.

Xero has this neat dashboard for all your purchases and you can go to this purchases dashboard by going to Accounts > Purchases. Here you

Continue reading

Creating a Quote in Xero

You can create quotes in Xero. Quotes that things that usually tradies do, but it involves providing a potential customer with a price that a job would cost to do.

Continue reading

How to Keep Track of Customers that Owe You Money and How to Follow up on Unpaid Invoices in Xero

One of the things that Xero help you do is to keep track of the invoices you’ve sent to customers and which ones are awaiting payment and which are overdue.

Continue reading

Recording Payment for Your Sales Invoices in Xero

To record cash payment against your sales invoice follow the steps below:

  1. Go to Accounts > Sales > Click “Awaiting Payment” tab
Continue reading

Credit Notes in Xero - What are they & what do you use them for?

Credit notes are things that happen if you want to change an invoice that you’ve issued. In Xero, however, you can edit/delete/void where appropriate. So you:

Continue reading

Part 4 - Invoicing in Xero

This part follows from Part 3 - Creating Contacts in Xero.

Invoicing in Xero is easy and can be easily automated with software if

Continue reading

How to Create Spend Money and Receive Money in Xero in 3 Steps

The Spend Money and Receive Money options in Xero can be used to record cash transactions.

To create a Spend Money / Receive Money transaction in Xero:

Continue reading

Customising Your Xero Dashboard & Explaining Bank Account, Account Watchlist and More

The dashboard in Xero is the first screen you come to after you’ve set up Xero.

On your left side, it has your **bank accounts and total cash in and

Continue reading

How to Give People Access to Xero in 5 Simple Steps & Set up Different Levels of User Access

Here’s how you can give people access to Xero in 5 Simple Steps:

  1. Log into Xero, go to Settings > General Settings > Users
  2. Click “Invite a User” and put in their details.
Continue reading

Xero Bank Feeds - What Are They, How to Get Them Working & Why You Should Use Them

With Xero (and with a lot of other cloud accounting software providers) you can use Live Bank Feeds.

What are bank feeds? It just means that the debits and credits

Continue reading

Part 3 - Creating a Contact List

This part follows from Part 2A - Setting Up Xero from Scratch and Part 2B - Converting to Xero.

Xero makes it easy for you to create a contact list. A contact list is

Continue reading

Part 2B - How to Convert from Another System like MYOB to Xero

This follows from Part 1 - Beginner’s Guide to User Xero Accounting: Getting Started.

This section will be useful to you if your business is already running

Continue reading

What is a Conversion Date and Balance in Xero?

A conversion date is the date that you start using a new accounting software.
A conversion balance is the amount for a particular account as at the conversion date.

Continue reading

Adding A New Account / Editing / Deleting and Archiving Accounts in Xero Chart of Accounts

You should customise your chart of accounts to be able to organise and show the financial information that you need. You can do this quite easily in Xero and here’s how.

Continue reading

What's in A Chart of Accounts - Assets, Liabilities, Equity, Revenue, Expenses & What they Mean

Continuing the discussion from How does the Chart of Accounts Work & Why is it Important?:

What’s in a Chart of Accounts - here are a list of accounts commonly

Continue reading

Part 2A - Setting up from Scratch

This guide follows from Part 1 - Beginner’s Guide to Using Xero.

Follow these steps to now get started on Xero.

Continue reading

Part 1 - Getting Started

Starting out with a new accounting software is always challenging, however, with this guide, I’ll help you to set up Xero and introduce you to the basics so that you’ll be on your way to:

Continue reading

SageOne or Xero - I'm going with SageOne & Saving $435 per year

I’ve been using Xero for a while now and while I think that Xero is very easy on the eye and things work fine, there’s one thing that bothers me about it. The $50 per month fee. It works out to $600 a year and, that’s not a once off. It’s every year, or rather, month.

Continue reading

Why does my business have positive cash flow but is not profitable? Easy to understand Accountant's Answer

A business can have positive cash flow but isn’t profitable because cash and profit are different concepts. See Cash flow is not the same as profit – here’s why…(simple illustration)

Continue reading

Cash flow is not the same as profit – here’s why…(simple illustration)

Cash and profit are two different things in accounting.

Cash is the cash flow in and out of a business whereas, sales and expenses (in profit) can have non-cash transactions like depreciation,

Continue reading

How to pay yourself from your business/from your company

You can pay yourself in many ways and depending on what type of structure you have for your business.

If you are a sole proprietor or sole trader, check out [How to pay

Continue reading

About the Accounting for Businesses category

This category is for questions about accounting that relates to running a business. Things like transactions for employees, business structures, how to do certain transactions relating specifically to running a business.

Continue reading

Tax-free threshold in Australia for this year and past years

The current Australian tax free threshold (2015-16 Financial Year) for Australian individual residents is $18,200. This means that if you taxable income (usually how much money you’ve made) is $18,200 or less, the tax rate is 0%. So you don’t have to pay any tax on any amounts up

Continue reading

How to pay yourself as a sole trader or proprietor (simple answer and long version)

The simple answer is this. In your accounting system, all you have to do is create a transaction that does this:

DEBITS the Drawings Account (the Drawings Account is an Equity Account)

Continue reading

Difference between Type 1 and Type 2 Fringe Benefits

The difference between a Type 1 fringe benefit and Type 2 fringe benefit is whether the amount is entitled to a GST credit. Type 1 fringe benefits are a GST taxable supply with an entitlement to a GST credit whereas with Type 2 fringe benefits, the provider of the benefit is

Continue reading

Free GST Calculation Worksheet Spreadsheet with Notes and Explanation

Here’s a free GST calculation worksheet spreadsheet with notes and explanation. For further information, refer to the ATO website.
It has the G1 - G20 GST codes that may assist you when preparing your BAS along with calculations that are built in.

Continue reading

Using Petty Cash in Xero – A Shortcut

If you plan on using petty cash in Xero, here’s a shortcut.

  • Create a bank account in Xero called Petty Cash. The bank and account number would be called “Petty Cash”.
Continue reading

What’s the difference between direct payment, prepayment and overpayments in Xero… and why do I have to reconcile them?

Direct payments, prepayments and overpayments are a form of money flow. They can be money flows into the business (money received) or money flows out of the business (money out). Here are the differences and also why they need to be reconciled:

Continue reading

What’s Petty Cash and Why You Do NOT Need It…

Petty cash like another ‘cash account’ that is created so that a business can conveniently spend on items that they need. For example, buying stamps and the like.

Continue reading

Accounting for an Overpayment - The debit and credit flows including GST that happen for an overpayment

Here’s a table of the debits and credit flows for an overpayment where someone has paid you too much (over and above what you invoiced them) for something. It’s good to see what the ins and outs are in the accounting system when something like this happens.

Continue reading

Creating Overpayments in Xero – A Shortcut

In Xero to create an overpayment (when you’ve paid too much or when someone’s paid you too much):

  1. Make an overpayment – to do this go to: account > bank >
Continue reading

Debits and credits flows including GST that happen for a prepayment in the T-Accounts

Here’s a table of the debits and credit flows for a prepayment in which you are receiving money for services/goods that you will deliver in the future. This table is good to see what happens in the back end of an accounting system. The example we’ll use is for a prepayment (revenue

Continue reading

What’s a Prepayment and the Types of Prepayment?

A prepayment is when you put or receive money upfront for something you’re planning to receive or deliver later. Why have it? Well… businesses have prepayment as it provides them with security.

Continue reading

Creating Prepayments in Xero – A Shortcut

Before you read this, check out the posts What’s a prepayment and the types of prepayment and Debits and credits flows including GST that happen for a prepayment in the T-Accounts to get a more in depth understanding of how prepayments work on the whole.

Continue reading

Is my Accountant Qualified? CA, CPA

Trusting someone to manage your money and to provide you with advice is important, so you don’t want to leave it to someone who is not properly qualified. You wouldn’t get your car serviced by someone who doesn’t have qualifications to fix up a car properly so why would you leave your

Continue reading

Outsourcing Your Accounting

You can outsource your accounting quite cheaply ($7 an hour) to overseas companies or freelancers. But like everything, you have to check that the work is being done property and that your information is being kept secure.

Continue reading

Review of MYOB and Xero

Note: I’m on a package with Xero and I’ve used the installed version of MYOB.

If I were going to use an accounting software I’d use Xero. Here’s why:

Continue reading

What is Cloud Accounting?

Cloud accounting software is software that is hosted online. It means there’s no need to install it on your computer and you can access it online in an internet browser.

Continue reading

What is Interest and How do I calculate it?

Interest is what you pay to borrow money.

So just say, I borrow $100 and in order to borrow this money, the bank will charge me 1% interest each year.

Continue reading

How do I set up a budget?

The easiest way to set up a budget is to use an excel spreadsheet, if you’re not familiar with excel, you could also use good ol’ pen and paper.

Continue reading

About the Managing and Saving Money category

This category is for posts/topics about managing your money better and saving money.

Continue reading

What is a Holding Account?

A holding account is one in which you don’t want to allocate it to something definite but want to hold funds to track something.

For example, if I wanted to track how much I’d been paying on odesk for

Continue reading

What is Depreciation and Why Depreciate? An Easy to Understand Illustration - Straight Line and Diminishing Value

Depreciation is a weird concept isn’t it?

It’s meant to decrease the value of something you own. Why? Well in most cases, when you own something, say a computer, over time:

Continue reading

What is Net Assets? An Illustrated Example

Net Assets is used to show how much a business is worth at its most basic form and it’s calculated as:

ASSETS (current + non-current) < depreciation comes in here

Continue reading

Sole Proprietor vs. Partnership vs. Company

Here’s the difference:

1) A sole proprietor is an individual that carries on a business. If things go wrong and his/her assets are on the line along with assets

Continue reading

What is Accounts Payable... and What's Accounts Receivable?

Accounts payable is an account within an accounting system that records how much money you OWE other people or organisations.

For example, I buy 20 rabbits

Continue reading

Questions to Ask When Choosing an Accountant

Choosing the right accountant is stressful. Accountants are usually specialists within one area and if you choose the right accountant, they can assist you in better understanding your finances aswell as being a business coach. But how do you know if they’re any good? Here are some

Continue reading

What the Company Tax Rate in Australia?

Currently, it’s 30%.

There are other taxes a company may have to pay such as GST and FBT depending on their circumstances.

Continue reading

What is Cash Flow?

Cash flow is the flow of real money. It is when money comes in and when money comes out of your bank balance and/or wallet - not ‘invoice’ money but real hard cash money.

Continue reading

What is Accounting?

Accounting is a system to manage transactions.

I’d call it an uber system to organise money that you’re owed, money that you owe and the things that you own. I believe the outcome of

Continue reading

Chartered Accountant as a Mentor to do the CA Program - Available

Hi there,

My name’s Vi and I’m a Chartered Accountant. Congratulations on taking the step to do the Chartered Accountants Program. It’s known in

Continue reading

Free Excel Invoice Template

I’m going to post up shortly a free excel invoice template that you can download and use for yourself.
This excel invoice template will allow you to save a pdf version of the invoice.

Continue reading

Using Xero to Pay Employees - from Payslip to Reconciling with Screenshot Pictures

Here’s what I do to pay employees.

  1. Generate a payslip by going to Payroll > Pay runs, Click “+ Add Pay Run” and choose your pay period e.g. Weekly Pay: Week ending 02
Continue reading

FBT - Log book method for private and business use with step by step calculations

FBT’s a really complex area and even the simplest questions have convoluted responses. For example, if I’m keeping a log book and I’m using the car 90% of the time for business but I drive less than 10,000km a year, what do I do? Can’t I just claim the 90% of running

Continue reading

I want to add 2+ businesses on Xero, is that possible?

Ideally what you should do when you have more than 1 business is purchase an additional pack from Xero but there is a way to get around this, although it won’t be as clean as you’d like.

Continue reading

Importing Paypal and Stripe Transactions into Xero

If you’re selling online and using stripe or paypal to collect payments, at one point you’re going to want these transactions to appear into Xero.

Continue reading

What's the Difference between Accrual Accounting and Cash Accounting

Accrual vs Cash is the backbone of modern accounting.

Quite simple, accrual is when you recognise a transaction when it occurs independent of when the cash flows.

Continue reading

How does the Chart of Accounts Work & Why is it Important?

The chart of accounts is like an index.

In simpler terms, imagine you have a closet with different rows (your chart of accounts). One row you’ll put your jumpers in, the other row

Continue reading

Using Xero - An Activity for Beginners

Here’s an activity that you can do and that probably covers the some of things you need to do to maintain your records.

  1. Add Chart of Account Items
Continue reading

About the Investing in Property category

This category is for posts relating to investing in property. Things like depreciation, the cash flow return on property etc….

Continue reading

Using Xero - Difference between Create Transaction and Match Transaction

Be careful with using Xero in that you’re not only ‘creating’ a transaction each time. So for example, if you make a payment at for say, two wooden blocks for $25 in total for work expenses, it is ideal to do the following:

Continue reading

About the Spreadsheets for Business Accounting Efficiency category

This is where spreadsheet files (xlsx, csv etc..) or links to them can be uploaded and downloaded by community members.

Continue reading

What's a Deduction?

The tax office says that:

When completing your tax return, you’re entitled to claim deductions for some expenses that are directly related to earning your income.

Continue reading

What's Taxable Income?

Taxable income is the money you or your organisation makes that is ok to be taxed. For example, if you work as an employee selling ice cream , the money your boss pays you for doing your job

Continue reading

About the Accounting Concepts category

This category is for chat about accounting concepts. For example, what’s an expense, why are there debits and credits. If it’s a tax related question, put it in the tax category.

Continue reading

About the Tax category

[Replace this first paragraph with a short description of your new category. This guidance will appear in the category selection area, so try to keep it below 200 characters. Until you edit this text or create topics, this category won’t appear on the categories page.]

Continue reading

About the Accounting Software category

[Replace this first paragraph with a short description of your new category. This guidance will appear in the category selection area, so try to keep it below 200 characters. Until you edit this text or create topics, this category won’t appear on the categories page.]

Continue reading

Using Xero - The Basics, Invoicing & Purchases

This topic will chat about using Xero. Xero is cloud accounting software. I use it to manage my accounts.

Here’s a list of doing the basics:

Continue reading

Have A Question?

Get in touch!