Australian SME Business News and Accounting Articles

The SME feedback is said not to contain the housing association’s concern about the dangers of switching to international financial reporting standards.

Chairman of the Accounting Standards Board or ASB, Roger Marshall, is quick to defend that such inconsistency means that there is a need for further discussions. He further revealed his plans of meeting up with the housing association trade bodies after the consultation closes on April 30.

The June target for reaching global accounting standards on leasing, revenue recognition, financial instruments, and insurance has been pushed back by US and international accounting groups.

FASB Chairman, Leslie Seidman, and IASB Chairman, David Tweedie, said that the The Financial Accounting Standards Board or FASB and the International Accounting Standards Board or IASB are still responding to issues regarding the proposal making them need a delay of “a few more months.” This statement was released on a podcast summarizing the meeting of the two groups.

An organization of Australian bookkeepers believes that there is a need to look into a study that focuses on bookkeeper fraud in the correct light.

This followed after forensic accounting firm Warfield and Associates released a study conducted between 2005-2011 on 65 fraud convictions among bookkeepers employed at small and medium-sized businesses in Australia. In these cases, the total amount of money lost by companies due to theft was $31 million.

Brett Carey, a newsagent of Deception Bay, reacts to the set of changes made to the EFTPOS charges that is to be introduced in October. According to him, it is “yet another nail in the coffin” for small businesses. He also questioned about Coles and Woolworths being shareholders of EPAL.

He further stated that the new interchange fee model being introduced is going to cost him another $6500 per year.

It cannot be denied that the area where companies spend most on is its employee benefits. Among these benefits is the pension plan. In the Philippines, this particular benefit exposes the company to both actuarial and investment risks. An example of an actuarial risk is when the benefits of an employee are seen to be greater than expected by the time the employee retires. An example of an investment risk is when a company funds a pension plan. And when the fund does not perform well, the company is still obliged to pay the said plan.

Accounting for defined benefit plans such as the pension plans is complex and entails costs for companies. That is why these companies hire the services of an actuary.

SME’s still prefer going to their accountants for advice rather than their bank, lawyer, business coach, or financial partner. This is according to MSI Global Alliance’s March 2011 survey of Australian small business owners. The advice taken predominately relates to business strategy and personal tax structures.

According to Charles Hornor, MSI Global Alliance spokesman, the result of the survey does not come as a surprise. What seems surprising for him is that accountants are also rated highly as a source of retirement advice. It is not an uncommon accounting practice for clients to be referred to their related financial advisers.

Shoebooks : Accounting Software Helps Prevent Tax Errors

Every business can bring about happiness, contentment, and income to its owner. When it is managed effectively, the returns can be very rewarding. These benefits do not only go to the owners, but also the government and employees in the form of taxes and wages, receptively.

Businesses pay their taxes annually. This task is taken care of by the bookkeeper and the accountant. These two employees make sure that the taxes remitted by the company are accurate and remitted on time. If not, the company acquires losses from miscalculations or they get penalised by the government for incorrect or late reporting.