Lodge your Tax Return effortlessly and spend time on your big idea

Lodge Tax Return effortlessly and spend time on your big idea with SapphireOne

At the end of financial year whether you are in Australia, New Zealand or anywhere in the world, all companies have tax obligations. The requirement to produce your Profit & Loss and Balance Sheet at the end of the financial year is mandatory for all businesses and organisations.

A financial year (or fiscal year, or sometimes budget year) is the period used by governments and their tax agencies for accounting and budget purposes, which vary between countries. It is also used for financial reporting by business and other organizations. Laws in many tax jurisdictions/countries require company financial reports to be prepared and published on an annual basis, but generally do not require the reporting period to align with the calendar year. The End of Financial Year (EOFY) is the date that marks the end of the financial year.

The calendar year is used as the financial year by about two thirds of publicly traded companies in the United States and for a majority of large corporations in the UK and elsewhere, with notable exceptions being in Australia, New Zealand and Japan. In Australia the End of Financial year generally falls on June 30th, New Zealand ends their financial year on March 31st. Some organisations and companies follow the USA end their financial year which is often on the same day of the week each year, for example, the Friday closest to 31 December. Under such a system, some fiscal years will have 52 weeks and others 53 weeks.

Taxation laws generally require accounting records to be maintained and taxes calculated annually, which usually corresponds to the financial year used by the government. The calculation of tax on an annual basis is especially relevant for direct taxation, such as company income tax. Many annual government fees and levies—such as Council rates, licence fees, etc. are also calculated on a financial year basis, while others are charged on an anniversary basis.

Many educational institutions have a financial year which ends during the summer to align with the academic year (and, in some cases involving public universities, with the state government’s financial year), and because the university is normally less busy during the summer months. In the northern hemisphere this is July to the next June. In the southern hemisphere this is calendar year, January to December. Some media/communication-based organisations use a broadcast calendar as the basis for their fiscal year.

Whatever the size of your business and tax obligations, you must report and pay any amount due to the ATO, this includes Superannuation and GST, VAT or Sales Tax reporting. It is essential to lodge tax return accurately in order to achieve the maximum business offset and possibly even receive a tax refund.

By managing everything from Financial Reporting, Inventory Control, Assets, Job Projects, Payroll/HR to Bank Reconciliations, SapphireOne ERP CRM DMS can give you more time to do the things that matter, such as developing new strategies and thinking in your business or organisation.

SapphireOne helps you to prepare and lodge tax return

SapphireOne helps you calculate GST and seamlessly lodge your Business Activity Statement (BAS) Standard Business Reporting (SBR2), pay employees and track your PAYG and Superannuation.

SapphireOne ERP CRM DMS can generate comprehensive reports to help you prepare and lodge tax return. Effortless reporting of SapphireOne can help you to get the right data at the right time including Year to Date (YTD) financial reports, PAYG payment summaries, Profit & Loss and Balance Sheet reports. That’s why Alison Phillips from Moyle Bendale Timber said in her testimonial that “SapphireOne is a RocketShip because of its excellent reporting.”

For a sneak peek at the full capabilities ERPCRMAccounting SoftwareHuman ResourcesPayrollAssets and Document Management,  check out SapphireOne and request a live demo, it is everything you’ll ever need to make your company management a success. Know more about us.

Free Single Touch Payroll with SapphireOne

Free Single Touch Payroll with SapphireOne
SapphireOne has been whitelisted and certified for STP (Single Touch Payroll) using the SBR2 (Standard Business Reporting) Portal with the Australian Taxation Office. All SapphireOne clients on current support plans will be given Free Single Touch Payroll and SBR2 connectivity with the SapphireOne application.

What has changed?

Single Touch Payroll (STP) aligns your reporting obligations to your payroll processes.

You will report to the Australian Taxation Office (ATO) each time you pay your employees. Your pay cycle does not need to change. You can continue to pay your employees weekly, fortnightly or monthly.

The information you send the Australian Taxation Office (ATO) will include your employees’ salaries and wages, allowances, deductions (for example, workplace giving) and other payments, pay as you go (PAYG) withholding and superannuation information.

Employers with 20 or more employees:

  • You need to start reporting pay events to the Australian Taxation Office through Single Touch Payroll from 1 July 2018.

Employers with 19 or less employees:

  • From 1 July 2019 STP will be mandatory, subject to legislation passing in the Australian Federal parliament.
  • You can choose to report through STP before 1 July 2019.

How does Free Single Touch Payroll benefit users of SapphireOne?

Employers will no longer be required to submit an annual PAYG report to the Australian Taxation Office

Employees will be able to view their payment information in ATO online services, which they will access through their myGov account.

New employees will have the option of completing TFN declarations and Super Choice forms online.

Businesses will reduce administrative burdens and costs (other software providers are charging for this service on a pay event or per employee rate)

For a sneak peek at the full capabilities ERPCRMAccounting SoftwareHuman ResourcesPayrollAssets , Document Management and Multi-Company Accounting feature check out SapphireOne and request a live demo, it is everything you’ll ever need to make your company management a success.

SBR2 Requirements in Australia for Accounting Software

SBR2 Requirements in Australia for Accounting Software

In Australia, over the past year, the Accounting and Enterprise Resource Planning (ERP) software market has seen seismic changes as new players arrive on the scene and the market consolidates. In addition, the Australian Tax Office (ATO) has been updating to a new standard called Standard Business Reporting 2 (SBR2) and switching to a new lodgement system for tax reports. Therefore, the choice of selecting software for all businesses is becoming increasingly important, especially in the minds of those responsible for choosing an accounting software.

If you are in Australia, you have to make sure the Accounting software you buy complies with the new ATO requirements regarding SBR2

 New compliance requirement for Accounting Software

The Australian Taxation Office (ATO) has asked vendors of accounting and financial management software to create a gateway to enable direct submission of Standard Business Reporting (SBR). The system will use the same SBR system, only now it will be upgraded to SBR2. The ATO states that this is a further move to automate and streamline the tax system and both businesses and the State Government will benefit from lower costs and time efficiency savings.

The ATO wants software vendors to enable direct SBR lodgement. SBR is a standardised approach to online and digital tax records which was first introduced by the Australian government in 2010. The intention was to simplify business obligations when reporting to the ATO. SBR is currently built into business and accounting software. This next step is to automate delivery direct to the ATO from the software itself and has already been partially implemented by many vendors in Australia.

Streamlining the SBR lodgement process

Currently businesses can lodge reports via the GovReports website, called Electronic Lodgement Service (ELS). The aim of the ATO is to remove this in-between stage and lodge SBR directly from the business software to the ATO. This is called Practitioner Lodgement Service (PLS) and offers significant enhancements over the ELS system. Customers will continue to use the AUSkey security system which enables businesses and individuals a secure connection to a whole variety of Australian government departments.

PLS is a ‘two-way street’ rather than the ‘one-way’ ELS. Entries made into accounting software will be checked in real time with existing ATO records and errors or inconsistencies highlighted so corrections can be made.

The theory is that increasing the quality of submissions like this should reduce the workload of both tax practitioners and the ATO, therefore leading to a quicker service and faster tax return. Many software vendors have already incorporated PLS into their software, with more to follow in a series of updates.

Single Touch Payroll is one of the stand out features of the new SBR system. Under this feature, employers will be able to report salary, Pay As You Go (PAYG) withholding and other information directly to the ATO at the same time as they pay their employees. All of this will be done directly from their payroll software. This will benefit businesses in Australia by making the payroll system clearer, quicker, faster and easier.

SBR2 will combat against cybercrime

2017 has seen a surge in cybercrime worldwide. This is being widely attributed to the theft of material from the US National Security Agency (NSA) last year. Two attacks in particular have rort havoc in Europe with the second, ‘Petya’ emanating from an accounting software firm in the Ukraine. Experts have linked the Petya virus directly with an NSA tool called ‘Eternal Blue’.

A security company CrowdStrike proclaimed that both the Australian government and businesses are under constant attack from cybercriminals. This is in part since the country is allied with the U.S. and the major hacking networks do appear to target ‘the West’. They even came up with comic book style characters representing the key cybercrime players, Fancy Bear, Deep Panda and Charming Kitten, Russia, China and Iran respectively.

It should be noted that CrowdStrike has a vested interest in shouting about this proliferation in cybercrime, holding as it does contracts with both the Australian Government and businesses in the country. The company recently raised US$ 100 million in a round of investment, valuing  it at around US$ 1 billion. It is difficult to ignore the evidence that attacks are on the increase and are becoming increasingly sophisticated.

The ATO, software vendors and Australian businesses themselves clearly face an ongoing battle with cybercrime during a difficult transition period. A recent survey reports that 29% of tax practitioners are already using PLS. The new PLS service will be expanded and phased in through a series of deadlines over the remainder of 2017 and into 2018, with ELS phased out by the 1st April 2018. As such, businesses will be obligated to use SBR2 enabled software and need to have confidence both in the vendor and the ATO. This will eventually mitigate the risk in regards to fraud or some cybercrime. 

Buyer’s Guide to Accounting Software

Therefore to meet the compliance requirements, businesses should consider a new point in how to choose the best accounting software :

Will your Accounting Software be SBR2 enabled in 2018, so that they can lodge their business activity statement (BAS) and other forms directly to the Australian Taxation Office (ATO)?

SapphireOne News :

SapphireOne is now incorporating the new ATO requirements regarding SBR2. We are expecting to go live with these before the end of 2017.