Of course “A Cloud” is a collection of water vapours! But ‘The Cloud’ is also a term used to describe an online storage service and/or hosted software. Simply put, ‘Cloud Storage’ is storing your data on a “Cloud Company’s” servers (large banks of computers, usually replicated over serveral locations). There are many types of Hosts (or Cloud Server Providers), they may store the files, host websites or they may also provide the software to run the files also (as in your Accounting Software Hosts and banking sites).
Never used a Cloud Provide? Perhaps you have, examples of some Cloud Server providers you may have used are; Photos stored on ICloud, or Webmail (Email) such as Hotmail or Gmail.
Before committing to using a Cloud Service, you must first consider a few things.
- Firstly, do you have a reliable, strong internet with acceptable data limits? After all, No Internet = No Access.
- Secondly, what do you wish to gain?
- Work from multiple devices, anywhere any time?
- Invoice on the fly?
- The reliability of a secure offsite backup?
- Thirdly, do your research! Which country will your data be stored in, what are their privacy laws? What are the Terms & Conditions of the service provider?
- Check for reviews about the providers. This information can generally be found by searching the Internet.
A word of advice from your local Reckon Accredited Consultant; pay particular attention to the tax code used and ensure the correct one is used in each transaction. Unique codes are used for Sales and others for Purchases.
Some transactions will have GST applied to only part of them, so they will have to be split.
There are many different Tax Codes available for use. The following is a list of the most commonly used Tax Codes and there applications, but are in no way the only Tax Codes available in Reckon Accounts:
TAX CODES FOR SALES
GST – GST Applicable
FRE – GST Free
TAX CODES FOR PURCHASES
NCF – GST Free
NCG – GST Applicable Purchases
CAG – Capital Acquisitions (Purchases)
CAF – GST Free Capital Acquisitions (Purchases)
When starting a new business many Entrepreneurs have a great idea and a business plan, but fail to consider some of the other important aspects of owning a business. For example:
- Your Accountant can advise you which structure is most suited to your financial position.
- The best structure for your entity ie; sole trader/partnership/company/trust.
- What will be most suitable reporting obligations for you Business (Cash or Accrual)?
- How do you intend to meet your BAS obligations at the end of the quarter? For example, if you are starting a Restruant or Takeaway business you might want to consider that most stock purchases will be GST free while most sales will include GST, therefore your BAS obligation maybe higher in percentage than some other industries.
- If you intend to employ staff, don’t forget that you need to withhold the appropriate amounts of tax from their pay to forwarded to the ATO with your BAS, and that you will also be required to meet your industries Superannuation Guarantee obligations.
Some sites of interest might be: