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Why Cashflow is Important to Small Business

Running a successful small business is no easy feat. Once you look past the enticing opportunities such as setting your own schedule or becoming your own boss, you are met with the startling reality that 60% of Australian small businesses shut their doors within the first three years of opening(1),  So, what’s going wrong? Is it simply poor management, or perhaps lack of foresight and vision? While there are surely numerous factors at play, it has ultimately been reported that 82% of small business cite one main reason for going out of business: cash flow. 

What Is Cash flow? 

To learn how to avoid this main roadblock, it is essential that you first understand it. Cash flow is a complex concept that many small business owners make the mistake of overlooking. At its core, defining cash flow is simple: it measures the movement of money flowing in and out of your business.  

While profit and cash flow are correlated, there is a difference between the two. Since cash flow only represents the balance in your bank account, your business can turn a profit but still have zero cash. If you are selling products, yet have more expenses than earned income, you will have negative cash flow.  

Defining ‘accounts payable’ and ‘accounts receivable’ is also useful when expanding on this concept. Accounts payable refers to a liability account that tracks the money leaving your business (i.e. payroll, business expenses, loans etc), whereas accounts receivable is an asset account that keeps track of money coming into your business (money you receive from customers for the goods and services you provide).  

To understand where this comes into play when determining cash flow, your business could turn a profit of $30,000 in one month, but only see $10,000 of that in cash flow, because the rest is pending in accounts receivables. These accounts are crucial when balancing your accounting and calculating the profitability of your business. 

Forecasting Cash Flow 

To secure the future and survival of your business, it is essential that you forecast your cash flow. This will equip you to handle both unexpected and planned expenses, ensuring that your spending is efficient. If you’re a seasonal business owner for instance, strong cash flow management will become even more crucial, as you’ll see an influx of cash during your open season, with little cash in the remaining offseason months of the year. 

The best way to keep track of cash flow in your business is to run a cash flow report. A cash flow report is a report that shows you cash received and cash paid, illustrating your business’s cash position at the end of each month. For example, you will see what happens to your cash when a customer pays a bill, your business pays a supplier, or you hire an independent contractor.  

If you wish, you can typically break down a cash flow report into three segments for best tracking: operating flow, investing flow, and financing flow. Operating flow refers to any income or spending that comes from your net income, such as buying merchandise or revenue from your products and services. Investing flow covers business investments, such as buying commercial property or equipment, which will be used repeatedly to directly increase your business’ efficiency or profitability. And thirdly, financing flow refers to transactions around dividends, debt or equity.  

Investing in New Staff/Products 

If you have recently started or launched a new business, you will need to invest some cash. This may include anything from purchasing new equipment, to building a website, or placing a deposit on a new office space. Don’t be alarmed if you initially see more cash output than input. However, you will ultimately need to fund these expenses while still having some capital left over for when your business opens its doors. To do so, you’ll have to carefully protect your cash flow. 

To begin, consider investing some of your own money to cover your start-up costs. You may also want to explore financing options such as a business loan, line of credit, or small business grant to help with the initial costs.  

Keep Track of Overdue Payments 

Chasing consistent late payers can hinder your business. Forecasting your cashflow allows you to see the impact on your bottom line and give you adequate time to alert clients and the need for effective credit control and timely payment strategies  

Preventing Overspending 

Every business will have time-sensitive revenue goals and targets, so forecasting your cash flow is essential inyou understand when and if they will reach these goals. Forecasting allows you to see the breakdown of your budgeting, by seeing the movement of cash into and out of the business. This will not only reveal whether you are landing over or under budget, but it will help you to increase the accuracy of your future budgeting. 

Plan for Seasonal Trends and Cash Gaps 

Seeing cash gaps allows you to put an effective payment plan in place.  Plan to set aside enough cash from peak sales periods to cover your operating expenses during off-seasons or slower seasons. You may also consider setting aside an extra cash buffer to cover unexpected costs.  assist.. Having an overview of your expenses and when they are due is important so create a calendar for your operating expenses and add entries of all recurring payments and their due dates. 

Budgeting for tax payments 

Tax payments always seem to spring up more quickly than you would expect. However, many business owners aren’t aware that you can actually pay the ATO by credit card, meaning you’ll have money available in your bank account for longer. You can hold onto your cash during the interest-free period on your credit card, without it costing you any interest so long as you pay your credit card bill on time. Read more about paying the ATO by credit card, all while earning full credit card reward points by using B2Bpay here. 

Common Cash Flow Mistakes 

Overspending 

Impulse spending, during the start-up phase, can be tricky to navigate. While it does take money to make money, not all expenses are necessary. Keep your eye on the bottom line, considering the cost-benefit of every single expense. Create a realistic budget and be sure to stick to it! Continuously calculate how any purchases will delay your breakeven point (i.e. the point when your plan for your business to earn back the cost of your initial spending). 

Not getting paid quickly enough 

Delayed payments, and unpaid invoices from clients can quickly kill the cashflow of a small business. Small businesses that don’t establish strict late-payment penalties and collections policies are often the most vulnerable. While it may feel risky to ask for payment from your customers at the start of a new business, it is important to remain diligent and consistent about collections. Once your clients know that you’ll be reaching out the moment a payment is late, they will be less likely to delay your payments. Good policies tend to include a given percentage late fee penalty after approximately 5 days, or work stoppage after 30 days past due (for service-based companies). 

Overestimating future sales volumes 

It takes a tremendous amount of confidence and positive thinking to start a small business.While this quality may be essential for a new business owner/s, it is important to maintain a heavy sense of realism when it comes to managing your cash flow. 

Once your business has been operating for a few years, it’s a good idea to complete objective and continue to  practice realistic forecasting based on past numbers and evidence. You can use actual past revenue data from your own business or other businesses in your industry as a baseline for predicting future sales and identifying trends. This will help you come up with some realistic projections, and consider variation over different periods (i.e. the holidays). 

However, if you are still in your first few years of business, you may want to consider working with a mentor from your own industry. They will be able to help you project future sales, and even offer sales figures from past personal experience to assist you in predicting upcoming figures. 

Not having enough cash on hand 

No matter how well planned you are, unexpected costs are a reality of being a business owner. This shouldn’t be a make-or-break it issue, so long as you have a cushion of savings to rely on. But if your company is functioning on a zero or negative account balance, one low profit month could be devastating. 

Be sure to maintain an account balance equivalent to at least two months of your operating expenses. This will ensure that you have the appropriate reserve in place, should you unexpectedly require it. 

How B2Bpay Solves Cash Flow Issues 

 B2Bpay addresses one of the most common cash flow issues — getting paid faster! By using B2Bpay and accepting all major credit cards, your clients will be encouraged to pay you more quickly. The range of payment options also helps to avoid excuses for late payments, as B2Bpay now even accepts payments from bank account. 

With a B2Bpay payment link or button included on your invoice template, making payments will be quick and simple for your client. Funds will be transferred to you by EFT or BPAY within just 3 business days. Plus, you’ll earn Qantas Points on all eligible payments you make or receive with B2Bpay – allowing you to accumulate reward points that may help reduce travel and accommodation costs for your business! 

Along with these benefits, B2Bpay is a great option for your clients’ cashflow as well, as they can take advantage of their credit card’s interest free period up to 55 days.  Read more on the benefits of improving cash flow with B2Bpay here. 

Connect Your Accounting Software with B2Bpay 

B2Bpay has the ability to easily connect it with your Xero, MYOB, or Quickbooks accounting software. Once you’ve connected your accounting software with B2Bpay, all of the payments you make and receive will be automatically recorded in one location, with no manual entry required.  

Stay organised and avoid late fees by viewing all your pending invoices in B2Bpay to pay in one click. You’ll also be able to save time with automatic recording as when you pay, your software will automatically be updated and reconciled for you! 

Accepting payments is just as simple. You’ll be getting paid faster by accepting credit card payments online, at no cost to you. B2Bpay will set you up with a unique, branded payment page, where customers will simply need to click the ‘Pay Now’ button on invoices to be directed to your payments page. You’ll save time, and keep close track of payments, as all your customers’ payments will be auto recorded in your accounting software. 

Conclusion 

Cash flow issues are one of the most difficult, and daunting, aspects of small business ownership. However, with careful planning and spending, you’ll be prepared for both the expected and unexpected, setting you up for success. 

 B2Bpay is a great no cost solution for you to ensure a positive cash flow stream by accepting card payments and getting paid faster. There are no terminal fees, merchant service fees or monthly charges. Meanwhile, you’ll be earning Qantas Points to use for business, just for getting paid. 

With such great incentives, and the ease of use (at no cost), B2Bpay offers your clients a way to make immediate payments and generate their own rewards through B2Bpay while your business continues to build a well-managed and healthy cashflow. 

ClickHERE to become a B2Bpay Biller today and start saving time and money for your business. Let B2Bpay take the hassle away from payment chasing so you can focus on what you do best – making your customers happy and growing your business. For more information on how to become a B2Bpay Biller, speak to one of our specialists on 1300 625 647 today.  

 

(1). According to the Australian Bureau of Statistics: http://www.abs.gov.au/ 

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How to Maximise Your Points: Pay for All Business Spending with a Rewards Card

Credit cards are an essential tool for businesses looking to conveniently and easily make purchases, and to boost cashflow. However, their value does not end there. If you choose a credit card strategically, you’ll be able to earn significant rewards. The key to maximising your points, and earning more rewards is quite simple: use your rewards card to pay for ALL your business expenses.

How to Choose the Right Credit Card 

It’s important that you research the right credit card for your business. Be sure to understand credit card offerings in the market that will allow you to maximise your rewards points. When comparing cards, consider the following:  

  • Points-to-dollar ratio 
  • Sign up bonuses 
  • Interest-free days (the set number of days in which you won’t be charged any interest, if you pay off your monthly balance in full) 
  • Complimentary features included with the card such as concierge, airport lounges etc. 
  • Interest rates and fees 
  • Points caps (limit imposed by the card provider on the number of points you can earn in any given month or year) 
  • Points expiry rules and timeframes 
  • Other card offers such as cash backs or discount when you spend with certain retailers 

 Additionally, some credit cards offer more rewards when you spend in specific categories but if this doesn’t appeal to you, there are many cards that simply offer a set earning rate on all spend. 

Pay for Everything on Credit Card 

If your business is paying stock, contractors and supplier invoices with bank account funds, you are missing out on the opportunity to rapidly boost your points balance. Remember, you can earn points on every transaction you make regardless of the amount. 

From small incidental purchases like your quick flat white on the way to workpetrol or shouting lunch for a client, use your credit card rather than cash or your debit card. Whilst these are small dollar value transactions, you’ll be surprised to see how these regular transactions add up to lots of points over time. 

Use B2Bpay To Earn More Points on ALL Payments 

Although tax payments have traditionally been paid by bank account or directly by card with reduced points earnt, B2Bpay provides the opportunity for business owners to make these substantial ATO payments, with ease, and earn full credit card points* and Qantas Points# on top! 

 In fact, you can use B2Bpay for many bills such as rent and utilities to earn FULL credit cards rewards points and Qantas Points. Many card issuers reduce or eliminate the number of points you can earn on these purchases.  

Earn More Points Through Our Special Offers 

In addition to earning full credit card points when paying business bills with B2Bpay, you will also earn Qantas Points on all eligible payments#! You will earn: 

  • 1 Qantas Point for every $7 paid by card to the ATO 
  • 1 Qantas Point for every $10 paid by card to other billers 
  • 1 Qantas Point for every $3 paid by bank account 
  • Up to 3 Qantas Points per $1.50 paid to B2Bpay Bonus Billers 

 Use Your Points for Flights to Maximise Points Value 

One of the greatest advantages of earning Qantas Points is the ability to use them for flights, upgrades, and other travel bookings with Qantas and its partners. Qantas makes it super easy for you to move points From Qantas Business Reward over to an individual’s Frequent Flyer account. You simply head over to the Qantas Business Rewards website and log in to the Transfer Points page.  

You can choose who you want to transfer the points to by entering the recipient’s name and Qantas Frequent Flyer number.  

How One Small Business Affords Travel Upgrade 

For Victoria-based Collinson’s Vacuum Packing, Qantas Business Rewards makes staff travel much more affordable. Collinson redeems points on flights, upgrades and accommodation for business trips and has even previously used them to fly his family to Japan for a Christmas holiday. 

Using B2Bpay – a secure online portal – the business earns Qantas Points when it pays bills and even when it receives payments, if a customer pays by Xero invoice. “Paying bills through internet banking is a long, tedious process but B2Bpay is fast and easy to use. Plus, we get rewarded for it,” says Collinson. “Some of our suppliers are Bonus Billers, so we can earn up to 3 Qantas Points per $1.50 on payments.” 

Collinson also uses a Qantas Points-earning business credit card to rack up even more points on top. “We always try to get the maximum points because it’s good for our business.” 

Get Started with B2Bpay 

Setting up a B2Bpay account to pay your bills is easy, and free! Simply fill out an online set up form so we can verify business details.  

 Click HERE to sign up for free. Alternatively, talk directly to our Sydney-based B2Bpay support team on 1300 205 575. 

 

# Use a Qantas Points earning credit card to earn points on every payment. Card products referred to are not issued by Qantas but by the relevant Card partners. The applicable Card Partner is the credit provider and credit licensee under the National Consumer Credit laws. Points are offered by the relevant Card partner and partner reward program and can only be earned on eligible purchases. Contact the relevant Card Partner for terms and conditions or enquiries.  

*A business must be a Qantas Business Rewards Member to earn Qantas Points for business. A one-off join fee of $89.50 including GST normally applies, however this will be waived for B2Bpay customers  using this link. Membership and Qantas Points are subject to the Qantas Business Rewards Terms and Conditions. Qantas Points for business are offered under the B2Bpay Customer Terms and Conditions. Members will earn 1 Qantas Point for every $7 paid to the ATO by card, 1 Qantas Point for every $10 paid to all other billers by card, and 1 Qantas Point for every $3 paid to a biller by bank account. Members can also earn up to 3 Qantas Points per $1.50 paid to B2Bpay Bonus Billers.See B2Bpay website for a list of current B2Bpay Bonus Billers. Qantas Points will be credited to the Members’ Business Rewards account within 90 days of the eligible spend. Any claims in relation to Qantas Points under this offer must be made directly to B2Bpay by emailing [email protected]. Businesses must ensure the ABN registered with Qantas Business Rewards is saved in the B2Bpay customer profile or entered online when paying in order to earn Qantas Points. Qantas Points earned using B2Bpay will be automatically credited to your linked Qantas Business Rewards account within 90 days of your eligible spend as outlined in the B2Bpay Customer Terms and Conditions. B2Bpay Billers will earn 1 Qantas Point for every $20 of customer payments made by customers using VISA or Mastercard via the Public WebPay payment portal supplied by B2Bpay (an ‘eligible payment’) and featured on the Biller’s invoice or statement template. Excludes failed or refunded payments and may not be available to businesses on enterprise or special pricing plans. Qantas Points will be credited to the Members’ Business Rewards account within 90 days of the eligible spend. Any claims in relation to Qantas Points under this offer must be made directly to B2Bpay by emailing [email protected] 

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Cashflow Series: 5 Tips to Manage and Improve Cash Flow in a Small Business & Instant Write-off Update

Cash flow management is key priority for any business. Effective cash flow guarantees that businesses continue operating with adequate funds for growth, as well as the means to pay salaries, suppliers, and bills on time. It is crucial to meet your financial obligations, and having low cash reserves causes stress on any business.  

Fortunately for Aussie business owners, the Australian government has recently announced an update for instant write-offs, meaning eligible businesses can claim an immediate deduction for the business portion of the cost of an asset in the year the asset is first used (or installed ready for use)Below, we’ll discuss how to best utilise these instant write-offs for your business, in additional to several of our other top cash flow tips. 

 

What is the update for instant writeoffs? 

An instant write-off allows small businesses to claim immediate deductions up to a given amount for new or second-hand assets purchased, such as office equipment, vehicles, and other tools. In light of the COVID-19 and impact on Australian businesses, as of 12 March 2020, the instant asset tax write-off has been raised to $150,000 (up from $30,000) for those with an annual turnover of less than $500 million (up from $50 million). This is providing the asset was purchased by 31 December 2020, and first used, or installed for use, between 12 March 2020 until 30 June 2021.  

The amount you can write-off will depend on when the asset was purchased and the associated threshold amount (the cost of the asset must be less than the threshold). It is important to note that the cost of the asset includes both the amount you paid for it and any additional amount spent on transporting the asset, improving it or installing it for use. To see your eligibility, you can check the ATO website for further details. 

 

Cash flow Tip #1 – Take advantage of the instant write-offs 

Always be sure to consult with your accountant or tax advisor to assess how an asset will benefit your business before purchasing. However, you should be sure to make the decision based on the needs of your business if you’re considering taking advantage of the instant write-offs. Would this purchase be in line with your business plan? Do you have enough cash flow to support the purchase/s? Can you have the asset either operational or ready for use in this financial year? If so, now may be a wise time to purchase in terms of staying cash flow positive. A good example might be purchasing a vehicle for deliveries to expand your business operations to help achieve your business goals. 

 

Cash flow Tip #2- Use Credit Cards to Make Payments 

There are other strategies you can employ to improve your cash flow. Namely, using your business credit card to cover expenses that you would normally cover with cash or cheque, you can free up additional cash for the costs that can’t be covered by card. Extending your cash flow becomes a whole lot easier when you are able to take advantage of your card’s interest-free days, which means you can make payments in advance of receiving funds if necessary. Provided the balance is paid off by the end of the interest-free period, you’ll be able to stay on good terms with your suppliers even while extending your cash flow.   

A business credit card can also be helpful for spreading out large business expenses while keeping finance costs low. This can often work out to be more cost-effective than an up-front financing plan with a business loan. Having more money accessible and in your account day-to-day sets you up to more efficiently be able to cover unforeseen costs and to expand your business. 

Additionally, many credit cards offer rewards programs, which can help with business expenses. You’ll be able to use rewards points to pay for a range of business expenses and may even receive extra bonus points for certain types of purchases.  

If you sign up to make payments with B2Bpay, you’ll be able to pay ALL of your bills using your credit card (as well as by debit card or bank account), regardless of whether or not the biller accepts card payments. With B2Bpay, you’ll also earn Qantas Points or Credit Card reward points from your card issuer on all business bills paid, including full points on payments for ATO, government, telco and insurance. With many cards, you’d earn no points or reduced points when paying these expenses directly. And in addition to boosting cash flow by taking advantage of your card’s up to 55-day interest free period, you’ll save money with digital payments because of the reduced paper-based processing, admin, approval overheads and banking costs. Sign up to start making payments with B2Bpay here 

 

Cash flow Tip #3- Get Paid on Time 

Many businesses have a high percentage of their monthly revenue held up in accounts receivable. Ensuring a strategy for steady cash flow is crucial for having sufficient cash on hand to pay bills and suppliers on time, as well as to maintain employee salaries and purchase new capital assets.  

If you want to ensure you’re getting paid faster and on time, offering an online card payment option is essential. Offering multiple digital payment methods gives your client more options, such as payment by debit card or bank account, allowing clients to take care of payment easily and instantly. 

When accepting payments through B2Bpay, you’ll reduce payment chasing, and be able to get paid online, 24/7, at no cost to you. ‘ Pay Now’ link on all your invoices will enable you to get paid and as all your invoices will be linked to a branded payment page, where your customers can pay you online, faster with any card. Payments will be made using your customer’s nominated card, and funds will be transferred to you by EFT or BPAY within 3 business days. Plus, you’ll earn Qantas Points simply for getting paid on eligible business payments. Click here to start receiving card payments from your business customers.  

 

Cash flow Tip #4: Utilise Accounting Software 

Accounting software allows you to track your cash flow and easily streamline your payments, all in one place. Speed up cash inflows by emailing invoices directly from your accounting software, using a mobile app to process bills on the spot, and regularly check accounts receivable. You can slow down cash outflows by automating tasks, such as setting reminders for bill payments and automatically invoicing regular customers. 

B2Bpay offers integrations with XeroQuickbooks, and MYOB to allow you view all of your invoices in B2Bpay to click + pay, pay all of your invoices using credit card, and save time with automatic reconciliation. Find out more about our software integrations here. 

 

Cash flow Tip #5: The Big Four 

There are four key factors to take into account when managing cash flow, which include: staff hours, improving sales, managing inventory, and managing costs of operation.  

If you have a physical location where you sell a good or service, a temporary reduction on operating hours can help save cash in both overhead expenses and also payroll. You might also consider postponing any outsourced work, or temporarily reassigning this work to employees to complete.  

Effective inventory control can also boost your cash flow, as holding too much inventory stock ties up cash that could be invested in other areas of the business. To avoid a loss of sales, be sure to provide adequate stock to align with customer demand. Inventory software will allow you to review previous sales trends in order to determine which items are most popular vs those that are slower-moving, and provide clear indication as to which inventory you should stock up on. It might also be a prudent choice to investigate if you can get any inventory cheaper, or if you buy in bulk if you can get a reduced cost. A lot of business owners can set and forget inventory, missing out on a valuable opportunity to save on expenses. 

When it comes to reducing costs of operation, begin by cutting overhead waste. Review your software and subscription fees, energy costs, etc. Consider offering part-time or virtual work options to downsize your physical office space. And audit your supplier agreements, to see if you can negotiate more favourable deals.  

 

Cash flow BONUS Tip #6: Seek Professional Advice 

Consult and speak with a financial adviser prior to starting a new business. Small business owners often find themselves responsible for taking on many different roles and acting as the virtual head of a variety of different departments. Aexperienced financial advisor would be designated to help assess the viability of your business model and outline new strategies and timelines to meet your goals and accelerate your business’ growth and success. They can make help you to make your business more efficient and profitable by focusing on actions that deliver results. Plus, they will prepare your business for future developments and different phases of business growth, allowing you to handle these new challenges confidently. 

While no single strategy works for every business, choose one (or several!) that best suits the needs of your brand. Adopting a new approach may very well get your cash flow up to speed, allowing your company to survive and grow even during times of financial instability.  

To use B2Bpay to save money and get paid on time, be sure to reach out to our locally based Sydney team at 1300 205 575Or, click here to sign up for B2Bpay for free.

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How to Pay Your BAS and Earn Credit Card Points

For business owners, it seems that tax bills to the ATO are always just around the corner. With payments such as BAS, business owners may find themselves wondering if it’s possible to earn points on these mandatory transactions. The good news? While many major Australian banks have stopped awarding frequent flyer points for credit card payments to the government, it is still possible to earn Qantas Points and full credit card rewards points for paying tax using a payment service such as B2Bpay. 

 

How do I pay the ATO by credit card? 

B2Bpay is a bill payment service that allows you to pay almost any business expense, including the ATO, by credit card. You can use Visa, MasterCard or Amex, so if you have a pointsearning credit card, you will earn full points for the transaction as most credit careds provide no or significantly reduced points when you pay your tax directly to the ATO. 

The fees associated with paying the ATO vary based on which card you use, so make sure you use the chart below to identify exactly how much you’ll be charged in credit card fees. For instance, the fee for Amex is 1.45%, which is notably higher than other domestic cards.  

 Card  Fee 
 American Express  1.45% 
 MasterCard – International  2.70% 
 MasterCard – Domestic Debit   0.15% 
 MasterCard – Domestic Credit       0.70% 
 Visa – International  2.70% 
 Visa – Domestic Debit  0.15% 
 Visa – Domestic Credit  0.78%

Why should I pay the ATO with credit card? 

There are several major benefits to consider when it comes to paying ATO by credit card: 

1. Earn Reward Points 

With B2Bpay, you’ll be able to pay the ATO while earning FULL credit card points. Credit Card providers offer reduced or no rewards points, so with B2Bpay you can earn credit card points than if you paid directly, without paying an additional credit card processing fee. Plus, you can receive Qantas Points on top of that, helping your reward points accumulate even faster on tax you must pay. On the other hand, if you were to pay directly you wouldn’t have the ability to earn any points at all. 

2. Cash flow 

In addition to earning rewards points, paying the ATO by credit card means you’ll have money available in your bank account for longer. You can hold onto your cash during the interest-free period on your credit card, and it won’t cost you any interest so long as you pay your credit card bill on time. This can also help you to avoid late payment fees or interest charges on other business expenses if you don’t have the cash available for the due date. 

3. Credit card fees are tax-deductible 

When paying the ATO by credit card, you can claim your credit card processing fee as a tax deduction for your business, which helps offset the additional cost of paying by credit card. It is important to note that any interest you pay for late credit card payments is generally not tax-deductible. Learn more about claiming your processing fee as a tax deduction here. 

4. Credit history 

Paying your business bills by credit card can be beneficial for your credit history, given you make sure to pay your credit card bills on time. This can open you up to reduced interest rates on loans, different types of financing and better selection of credit card rates and rewards. 

 

Additional Benefits of B2Bpay 

In addition to B2Bpay making it possible to pay a variety of expenses while earning both credit card and Qantas points, B2Bpay offers even more great business benefits. 

Boosts business cash flow 

B2Bpay enables business owners to access the credit card interest free period for expenses they may have otherwise paid for using cash, cheque, or direct debit. You’ll be able to keep funds in your account for longer while paying your suppliers and other business expenses. 

Reduced cost 

Digital and credit card payments are far more cost effective than traditional payment methods, thanks to the reduced use of paper being processed, administration work, approval overheads and banking costs.  

Simple software integrations 

Manage all of your payments in one place by integrating your major accounting software (Xero, Quickbooks, MYOB) with B2Bpay. You’ll be able to view and pay all of your invoices, while taking advantage of automatic reconciliation. Further, your customers will love being able to pay with the simple click of a button included on your invoices. 

Saves time 

You’ll be able to cut out excessive administrative work from your workflow, as B2Bpay manages and pays all your business expenses online via a centralized expense management system. 

Secure, flexible online solution 

When using B2Bpay, cards are tokenised for security. This means your credit card information is never stored in full. And unlike traditional methods like cash or cheque, you’ll be able to make payments from any device, safely and securely. 

 

How this Business Benefited from Using B2Bpay 

To share firsthand the benefits of utilizing B2Bpay in your business, we spoke with one of our clients at Collinson’s Vacuum Packaging who saw a major shift in business over the course of 2020. We saw customers wanting to move into the retail space and take-home meals,” says co-owner Chris Collinson. “Suddenly they’ve got a new range of products, so we needed to help them with solutions and innovation.” 

 As much as Collinson’s Vacuum Packaging innovation is inspired by travel, with directors previously traveling internationally two to three times per year, the Victorian-based company has used the Qantas Reward Points earned through B2Bpay to make staff travel more affordable. During the course of 2020, they’ve been able to continue earning and saving these Reward Points to position them for affordable travel as borders continue to reopen. 

 

Sign Up for B2Bpay Today and Maximise Your Benefits 

Getting a B2Bpay account set up is easy, and free! Simply fill out an online activation form so we can verify business details. Then we will quickly set your payment portal and payment page, customised with your company brand logo. We will also arrange a payment link on your invoices. 

Click HERE to sign up for free. Alternatively, you can speak directly to our Sydney-based B2Bpay customer support team by contacting us at 1300 205 575. 

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How to Earn Qantas Points When You Get Paid Through Xero, MYOB, QuickBooks

Do you ever find that you are juggling multiple tasks and software systems while handling your business admin? Maybe you’ve had to manually enter data from one program to another to ensure it was recorded properly or copy information multiple times over. 

 While this type of tedious work is often necessary to get the job done, it also requires an immense amount of time. One of the most demanding responsibilities is no doubt recording and managing payments and expenses. What if you could connect your payment platform to the accounting application you already use? This would mean all the payments you make and receive would be automatically recorded in one location, with no manual entry required.  

 Well, we’ve got great news for you – this solution is available with B2Bpay by simply connecting your accounting software (Xero, MYOB, or QuickBooks)! Better yet, you’ll even earn Qantas Points every time you pay or get paid*. Who doesn’t want to earn points simply for carrying on with business as usual? 

What are the benefits? 

When you connect your accounting software, you’ll be able to seamlessly make or receive payments.  

Making Payments: Once you’ve integrated your software, you’ll be able to view all of your pending invoices in B2Bpay to pay in one click. You will also save time with automatic recording as when we pay, we automatically update your software so you don’t have to 

You can pay any business invoice using credit card, allowing you to earn credit card reward points for every dollar you spend^. Plus, you’ll earn up to bonus Qantas Points for every $1.50 spent#.  

Accepting payments: Accepting payments is just as easy. You will get paid faster by accepting credit card payments online, at no cost to you. B2Bpay will get you set up with a unique, branded payment page, and you’ll quickly be on your way to earning Qantas Points just for getting paid*. Customers will simply need to click the ‘Pay Now’ button on your invoices to be directed to your secure, branded payment page. Save time as your customer’s payments are auto-recorded in Xero, MYOB or QuickBooks and earn Qantas Points for getting paid.  

How do I integrate my accounting software? 

Xero 

 To integrate B2Bpay with Xero, you can follow the steps below or find more detailed instructions on our FAQ page: 

 Making Payments: 

  • Log in to B2Bpay with your normal credentials 
  • Click on the ‘My Xero Bills’ tab and click on the ‘Sign in with Xero’ button 
  • Once you have signed in, click ‘Allow Access’ 
  • Then click ‘Connect’ 
  • Choose a ‘Payment Account’ and ‘Expense Account’ from what you have configured in your Xero profile 

Receiving Payments: 

  • Log in to B2Bpay as a Biller. Click here to log in. 
  • Once you are logged in click on ‘Profile’ on the left-hand side of the screen 
  • Then click on the ‘Xero’ tab on the righthand side 
  • Scroll down to the bottom and click ‘Sign in with Xero’ 
  • Once signed in click ‘Allow Access’ then click ‘Connect 
  • Choose a ‘Payment Account’ and an ‘Expense Account’ 

MYOB 

To integrate B2Bpay with MYOB, you can follow the steps below, or find more detailed instructions on our FAQ page: 

Making Payments: 

  • Log in to B2Bpay with your normal credentials 
  • Click on the ‘My MYOB Bills’ tab and click on the ‘Connect to MYOB AccountRight’ button to log in to MYOB 
  • Select the company profile from MYOB you wish to connect to B2Bpay 
  • Enter your MYOB User ID: this is your local MYOB username. If you haven’t set this up, type “Administrator” into this field. 
  • Then enter your local MYOB password. If you haven’t set up a User ID, leave this field blank. Click ‘Next’. 
  • Select your ‘Payment Account’ 
  • Select your ‘Expense Account’ 
  • Click ‘Save’ 

Receiving Payments: 

  • Log in to B2Bpay as a Biller. Click here to log in. 
  • Once you are logged in click on ‘Profile’ on the left-hand side of the screen 
  • Click on the ‘Connect to MYOB AccountRight’ button and log in to MYOB 
  • Select the company profile from MYOB you wish to connect to B2Bpay 
  • Enter your MYOB User ID: this is your local MYOB username. If you haven’t set this up, type “Administrator” into this field.
  • Then enter your local MYOB password. If you haven’t set up a User ID, leave this field blank. Click ‘Next’. 
  • Select your ‘Payment Account’ 
  • Select your ‘Expense Account’ 
  • Click ‘Save’ 

QuickBooks 

Making Payments 

To integrate B2Bpay with Quickbooks, you can follow the steps below, or find more detailed instructions on our FAQ page: 

  • Log in to B2Bpay with your normal credentials 
  • Click on the ‘Quickbooks Pay Bills’ tab 
  • Click on the ‘Connect to Quickbooks’ button and sign in 
  • Select your ‘Payment Account’ 
  • Select your ‘Expense Account’ 
  • Click ‘Save’ 

Receiving Payments 

  • Log in to B2Bpay as a Biller. Click here to log in. 
  • Once you are logged in click on ‘Profile’ on the left-hand side of the screen 
  • Click on the ‘Sign in with Quickbooks’ button 
  • Click ‘Connect’ 
  • Select your ‘Payment Account’ 
  • Select your ‘Expense Account’ 
  • Click ‘Save’ 

Making and Receiving Payments is Easy 

Once you’ve signed up for B2Bpay and followed the prompts to connect to your accounting software, you will be all set to begin making payments. Business owners are amazed at how streamlined it is to view, select and pay all their pending bills in one place! To begin receiving payments, our team will have your personalised, branded payment page set up for you. Your clients will love how simple it is to make payments with the ‘Pay Now’ button included on their invoices. 

How Else Can I Maximise Points? 

  1. Pay all your business expenses by card using B2Bpay. B2Bpay allows you to pay all your expenses by card, regardless of whether your biller accepts credit card payments! You’ll be able to maximise your points earning potential and earn Qantas Points on all these essential payments*. 
  2. Earn FULL credit card points by paying ATO, Government, Telco, and insurance bills. With most credit cards you earn no or reduced points when paying these expenses directly to the biller. When you pay via B2Bpay, you earn full credit card points#. 
  3. NEW! Earn Qantas Points when you pay using your bank account. You can now pay by bank account with B2Bpay and still earn Qantas Points. Earn 1 Qantas Point for every $3 paid using your bank account*. Payments using your bank account give you more choice and flexibility especially when you have reached your credit card limit or want a cheaper (yet still rewarding) way to pay. 
  4. Earn Qantas Points when customers pay you by card…at no cost to you! By including a simple ‘Pay Now’ link on the invoices you sent out via Xero, MYOB, QuickBooks integrations, you can earn 1 Qantas Point per $20 paid to you via Visa or Mastercard*. Then sit back and earn Qantas Points when your customers pay you by card at no cost to you (unless you opt to pay the card processing fees). Get paid faster, as most customers prefer to pay 24/7 online. 
  5. Utilise your cards up to 55-day interest period by scheduling major payments after your card’s payment cut-off date. Credit cards come with a monthly payment cycle (e.g., 28th to the 27th) whereby all payments in that cycle fall onto the same credit card bill. So, when you can, pay large expenses just after your payment cycle to boost your cash flow and maximise the credit card interest free days you receive. 

How This Aussie Business Succeeded with B2Bpay 

You might be wondering what the benefits of utilising B2Bpay and its wide offering of software integrations looks like from a business owner’s point of view. So we took the opportunity to chat with one of our clients at Amaroo Technologies and discuss the success they’ve experienced using B2Bpay in their family-owned vending machine operation company.  

As a small business owner, Bob Goss has years of experience putting in extra hours at work, for little to no reward. Yet since using B2Bpay and integrating his accounting software, he has unlocked a world of rewards. For starters, streamlining his workflow and tracking expenses has never been easier.  

“I absolutely love the system. It makes it easier to follow everything I’ve been spending, and I can look at info about invoices that I paid just by clicking a few buttons. I love that all the info is matched automatically in my bookkeeping software.”  

Bob has also managed to accumulate tens of thousands of Qantas Points by paying his supplier through B2Bpay, while also growing his business! 

Get Started Now 

Getting a B2Bpay account set up is easy, and free! Simply fill out an online activation form so we can verify business details. Then we will quickly set your payment portal and payment page, customised with your company brand logo. We will also arrange a payment link on your invoices. Once you’re set up, be sure to follow the steps above to easily integrate your accounting software! 

Click HERE to sign up for free. Alternatively, talk directly to our Sydney-based B2Bpay customer support team by contacting us at 1300 205 575. 

 

Terms & Conditions 

# Use a points earning credit card to earn credit card reward points on every payment. Card products referred to are not issued by Qantas but by the relevant Card partners. The applicable Card Partner is the credit provider and credit licensee under the National Consumer Credit laws. Points are offered by the relevant Card partner and partner reward program and can only be earned on eligible purchases. Contact the relevant Card Partner for terms and conditions or enquiries. 

*A business must be a Qantas Business Rewards Member to earn Qantas Points for business. A one-off join fee of $89.50 including GST normally applies, however this will be waived for B2Bpay customers  using this link. Membership and Qantas Points are subject to the Qantas Business Rewards Terms and Conditions. Qantas Points for business are offered under the B2Bpay Customer Terms and Conditions. Members will earn 1 Qantas Point for every $7 paid to the ATO by card, 1 Qantas Point for every $10 paid to all other billers by card, and 1 Qantas Point for every $3 paid to a biller by bank account. Members can also earn up to 3 Qantas Points per $1.50 paid to B2Bpay Bonus Billers.See B2Bpay website for a list of current B2Bpay Bonus Billers. Qantas Points will be credited to the Members’ Business Rewards account within 90 days of the eligible spend. Any claims in relation to Qantas Points under this offer must be made directly to B2Bpay by emailing [email protected]. Businesses must ensure the ABN registered with Qantas Business Rewards is saved in the B2Bpay customer profile or entered online when paying in order to earn Qantas Points. Qantas Points earned using B2Bpay will be automatically credited to your linked Qantas Business Rewards account within 90 days of your eligible spend as outlined in the B2Bpay Customer Terms and Conditions. B2Bpay Billers will earn 1 Qantas Point for every $20 of customer payments made by customers using VISA or Mastercard via the Public WebPay payment portal supplied by B2Bpay (an ‘eligible payment’) and featured on the Biller’s invoice or statement template. Excludes failed or refunded payments and may not be available to businesses on enterprise or special pricing plans. Qantas Points will be credited to the Members’ Business Rewards account within 90 days of the eligible spend. Any claims in relation to Qantas Points under this offer must be made directly to B2Bpay by emailing [email protected] 

^ Qantas Points quoted are accurate as at 1 August 2017 but may vary at the time of booking. Classic Flight Rewards are available on Qantas, Jetstar and partner airlines. Classic Flight Reward seats are subject to capacity controls, availability is limited and some flights may not have any Classic Flight Rewards available. Taxes, fees and carrier charges are payable by an Accepted Payment Card in addition to the points required on Classic Flight Rewards. These are quoted at the time of booking and are subject to change. See Classic Flight Rewards for more details. 

^^ Source: B2Bpay and Deloitte estimates. Bank issued points earned by using your credit card are estimated to be 1 Qantas Point or alternative credit card reward point per dollar spent; Qantas Points earned from the ‘1 Qantas Point per $100 spent’ and the ‘B2Bpay Bonus Billers’ offers are estimated to be a combined 1.2 points per dollar (which for example, can be achieved when $240,000 p/y spend is transacted 29% through 1 point per $1.50 bonus billers, 30% through 2 point per $1.50 bonus billers, 30% through 3 points per $1.50 bonus billers and 11% through non-bonus billers); interest saved is based on a market rate overdraft facility or average return; excluding flight taxes, fees and carrier charges. 

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8 Simple Ways to Maximise Your Qantas Points

How can you earn Qantas Points? It’s a common question for many small businesses as there are many reward programs and point offers in the marketplace and it can be confusing.

The key to earning the most points for your business is quite simple – use a rewards credit card for all your business spend. If your business is paying for stock, suppliers and contractors with funds from your bank account, you are missing out on the opportunity to rapidly boost your points balance (and manage your business cash flow).

B2Bpay is the only place where you can earn Qantas Points* when you Make and Receive Payments PLUS earn credit card rewards points.

Start earning Qantas Points with our 8 helpful tips to maximise your Qantas Points:

1. The best way to turbocharge your credit card and Qantas Points is to pay all your business expenses by card using B2Bpay^.B2Bpay allows you to pay all your expenses by card, regardless of whether your biller accepts card payments.

2. Ensure you earn FULL credit card points on ATO, Government, Telco, and Insurance bills. With most credit cards you earn no or reduced points when paying these expenses directly to the biller. When you pay via B2Bpay, you earn full credit card points^.

3. Also, earn (even more) Qantas Points. With B2Bpay, you earn Qantas Points in addition to the base credit card points that your bank provides. We recently increased the amount of Qantas Points that you earn by up to 14 times! – so there has never been a better time to help. Now, you will earn 1 Qantas Point for every $7 paid by card to ATO and 1 Qantas Point for every $10 paid by card to other billers*.

4. NEW! Earn Qantas Points when you pay using your bank account. You can now pay by bank account with B2Bpay and still earn Qantas Points*. Earn 1 Qantas Point for every $3 paid using your bank account*. Payments using your bank account give you more choice and flexibility especially when you have reached your credit card limit or want a cheaper (yet still rewarding) way to pay.

5. Earn Qantas Points when customers pay you by card…at no cost to you!Include a simple ‘Pay Now’ link on the invoices you sent out via Xero, MYOB, QuickBooks integrations, and you will earn 1 Qantas Point per $20 paid to you via Visa or Mastercard*. Then sit back and earn Qantas Points* when your customers pay you by card at no cost to you (unless you opt to pay the card processing fees). Get paid faster, as most customers prefer to pay 24/7 online.

6. Look for credit cards with high points to dollar ratio and no or limited points caps^. Not all cards are created equally. Some cards offer more points per dollar spent, have great bonus points offers and have various other benefits.

7. Increase how much you pay using your card^. Some credit cards may have card limits lower than the amount you want to pay by card to maximise your credit card points. However, what many cardholders do is to transfer funds to their card from their bank account. Doing this can increase the amount you can pay by card and the amount of credit card points you can earn^.

8. Boost your cash flow by using your cards up to 55-day interest period by scheduling major payments after your card’s payment cut-off date^.Credit cards come with a monthly payment cycle (e.g., 28th to the 27th) whereby all payments in that cycle fall onto the same credit card bill. So, when you can, pay large expenses just after your payment cycle to maximise the credit card interest free days you receive^.

How can I earn Qantas points ongoing with B2BPay?

Each time you use a Qantas Points earning credit or charge card to pay your bills through B2Bpay, you can earn Qantas Points twice. Earn once with your Qantas Points earning card (including government and ATO spend) and earn points again using B2Bpay, up to 3 Qantas Points per $1.50 in payments^.

You can also earn Qantas Points when your customers or clients pay you via the invoices you send out. You will earn 1 point for every $20 paid to you with VISA or Mastercard. **

What about the cost?

Making Payments: The only fee is the card processing fee or bank account processing fee – the relevant fee is displayed before you process a payment online. These fees replace any card processing fee or surcharge applied by your biller. Talk to your accountant or bookkeeper to claim B2Bpay fees as a tax deductible and we provide you with a tax invoice to make it easy.

The value of all the credit card points and Qantas Points that you can earn combined with the cash flow, software integration and other benefits outweigh the processing fees.

Receiving Payments: There are no fees when you use B2Bpay to get paid (unless you choose to absorb the processing fees).

So, you can sit back and earn Qantas Points* when your customers pay you.

I want to connect to my Accounting Software. How do I do this?

It is easy! Once you have set up to B2Bpay to make payments, simply follow the prompts to connect to your Xero, MYOB, or QuickBooks account. You can then view, select and pay all your pending Xero, MYOB, and QuickBooks bills in B2Bpay.

If would like to receive integrated payments from the Xero, MYOB, or QuickBooks invoices you send to your customer, we will help you add a ‘Pay with B2Bpay’ link on your invoice template. When a customer pays you, the payment will be automatically recorded in your Xero, MYOB or QuickBooks software. And don’t worry if you do not use Xero, MYOB, or QuickBooks our friendly team can assist you to get a ‘Pay Now’ link on any invoice template.

Get Started Today

Getting a B2Bpay account set up is easy, and free!   To make payments, simply set up online.  You can also be set up as a B2Bpay biller to accept payments.  Visit this page to get started.

Then we will quickly set your payment portal and payment page, customised with your company brand logo and arrange a payment link on your invoices. For more information click here.

If you need help, talk directly to our Sydney-based support team on 1300 625 647.

Terms & Conditions

*A business must be a Qantas Business Rewards Member to earn Qantas Points for business. A one-off join fee of $89.50 including GST normally applies, however this will be waived for B2Bpay customers using this link. Membership and Qantas Points are subject to the Qantas Business Rewards Terms and Conditions. Qantas Points for business are offered under the B2Bpay Customer Terms and Conditions. Members will earn 1 Qantas Point for every $7 paid to the ATO by card, 1 Qantas Point for every $10 paid to all other billers by card and 1 Qantas Point for every $3 paid to a biller by bank account. Members can also earn up to 3 Qantas Points per $1.50 paid to B2Bpay Bonus Billers. See B2Bpay website for a list of current B2Bpay Bonus Billers. Qantas Points will be credited to the Members’ Business Rewards account within 90 days of the eligible spend. Any claims in relation to Qantas Points under this offer must be made directly to B2Bpay by emailing [email protected]. Businesses must ensure the ABN registered with Qantas Business Rewards is saved in the B2Bpay customer profile or entered online when paying in order to earn Qantas Points. Qantas Points earned using B2Bpay will be automatically credited to your linked Qantas Business Rewards account within 90 days of your eligible spend as outlined in the B2Bpay Customer Terms and Conditions.

**B2Bpay Billers will earn 1 Qantas Point for every $20 of customer payments made by customers using VISA or Mastercard via the Public WebPay payment portal supplied by B2Bpay (an ‘eligible payment’) and featured on the Biller’s invoice or statement template. Excludes failed or refunded payments and may not be available to businesses on enterprise or special pricing plans. Qantas Points will be credited to the Members’ Business Rewards account within 90 days of the eligible spend. Any claims in relation to Qantas Points under this offer must be made directly to B2Bpay by emailing [email protected] Businesses must ensure the ABN registered with Qantas Business Rewards is saved in the B2Bpay customer profile or entered online when paying in order to earn Qantas Points. ^ Members will earn 1 Qantas Point for every $100 paid and up to 3 Qantas Points per $1.50 paid to B2Bpay Bonus Billers. See B2Bpay website for a list of current B2Bpay Bonus Billers.

^Credit card reward points are subject to the terms and conditions of your credit card and linked reward program.

~ Talk to your accountant or tax advisor about claiming payment processing fees as a tax deduction.

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A Business Owner’s Guide to Credit Cards

No matter how well-established your business is, readily available and unsecured capital is integral to its success and longevity. Even with a positive cashflow, why not look at other means to quickly access funds? With 2 out of 3 business owners using credit cards, here’s a business owner’s guide to credit cards and how they can be the ideal financial buffer.

 When to go cashless

With so many different types of cards on the market, choosing the most suitable credit card can be a real headache for business owners. This is especially true in the early stages of starting a business. However, as your business grows, so will your expenses – which may mean leaning on a credit card from time to time, or using a credit card to take advantage of lucrative rewards schemes.

When it’s time to start thinking about using a credit card for business expenses, firstly look at the current stage of your business and purchasing patterns.

Here are some questions you may want to consider:

  • What are your monthly business expenses? (Rent, office supplies, utilities)
  • Do you need to set aside a budget for significant investments or costs? (Office equipment and technology, marketing and advertising, tax bills, insurance)
  • Do you or your employees frequently travel for business purposes?
  • Are employees often required to make business purchases?

Advantages of using a Credit Card

Credit cards not only offer short term access to funds, they also offer long term benefits for your business. These benefits can include:

  • Ability to manage monthly variable costs, improving and controlling cash flow.
  • Boost credit rating and purchasing power.
  • Credit can be unsecured (secured without a deposit)
  • Ability to separate personal and business expenses – making it easier to distinguish what is tax deductible.
  • Easier bookkeeping – especially when it comes to tax time!
  • Gain credit card rewards – Using a credit card to pay business expenses can offer rewards and loyalty points programs that are not only incentivize but help your business grow.

Use B2Bpay and maximize Credit Card rewards

Whilst credit cards may offer credit reward points on business expenses, there are still billers who will not accept credit card payments.

B2Bpay is a centralised online portal that allows you to pay business expenses – including one-off, scheduled and future dated payments – with your existing credit card. Regardless of whether the biller actually accepts credit cards, through B2Bpay billers receive payment by EFT or BPAY. Billers receive payment within 3 days and there is no extra cost to them.

With B2Bpay, you can earn Qantas points as well as credit card reward points on all business expenses. Even when paying tax, government, insurance, telcos and insurance bills through B2Bpay, business owners will earn full card points.

Beyond the simplicity and reliability using B2Bpay, the unique advantage for business owners is profitability through payments.

The Deloitte ‘SME Digital Payments – New opportunities to optimise’ White Paper 2018 featured B2Bpay as a case study, stating that “by utilising the B2Bpay platform, SMEs could attract significant value, potentially at a level of approximately 7% of expense paid”

Furthermore, the White Paper confirmed that alongside efficient and accurate cash flow management, B2Bpay’s features are:

  • Improved visibility and reporting
  • Automatic bill reminder alerts
  • Alerts through SMS and email (for successful and failed payments)
  • Low cost processing fee (which is also tax deductible)
  • Secure payment mechanism through tokenisation (and no storage of card numbers)
  • Reporting capabilities and centralised expense management

While credit cards can guarantee working capital for your business, B2Bpay can ensure your business payments count in profitability., making you miles ahead of your competitors.

To set up a B2Bpay account, click here.

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GST and Commercial Property Guide

Issues regarding GST and commercial property in Australia can often be confusing. However, through diligent research, working out the process of GST claims can reap substantial returns for your business during tax time.

Renting commercial property as a tenant

Renting commercial space can be a feasible option for a start-up or new business as it allows flexibility for change and growth. As initial costs in purchasing commercial property are high, being a tenant allows funds to be better utilised in other business areas such as recruitment or equipment upgrades.

One of the biggest advantages is that rent is tax deductible.

Do tenants pay GST on rent?

Tenants may be required to pay GST on their rent.  As business owners can claim rent as a tax deduction, a tenant renting commercial property can submit claims for most business and office related expenses. In addition, the GST component of rent costs can be claimed as a GST credit (also known as an input tax credit).

GST on commercial rental bond

As part of a lease agreement, tenants may be required to also pay a bond. A bond is a form of financial security for the lease. It is usually paid at the start of the lease and returned when vacating a commercial premises.

A tenant does not pay GST on a commercial rental bond unless the amount is forfeited or part is withheld for damage to the premises or goods.

SECTION 1: Owning a commercial property

Diving into the world of commercial property can be a lucrative and exciting business decision.

Whether you’re a commercial landlord or looking to sell or buy commercial property, it’s prudent to take a close look at the GST implications around your specific business circumstances.

Registering for GST

 The Australian Tax Office (ATO) requires businesses and enterprises to register for GST if the GST turnover (gross income minus GST) is $75,000 or more.

When it comes to commercial property, the GST turnover is considered to be the rental income.

Most commercial property transactions fall under the ATO’s definition of “carrying on an enterprise”

The Australian Government states, “An enterprise includes activities done in the form of a business”, such activities include renting or leasing property.

As such, investors of commercial property are placed under the same taxation rules as other businesses.

You are required to register for GST, if you’re leasing out commercial property that has a GST turnover of over $75,000.

You may be able to remain unregistered if the total rental income of your commercial real estate investment is under the $75,000 per annum threshold.

How to register for GST

 Before registering for the GST, an Australian business number (ABN) is required. This process can be done online through the Australian Business Register website.

Once you have an ABN, you can register for the GST online through the ATO Business Portal. Your registered tax agent or BAS agent can also help with the process.

  1. Selling a commercial property – paying GST

If you are in the position of selling commercial property and registered for GST, take into consideration the additional GST value to your selling price.

Vendors are usually liable to pay 10% to the ATO after the sales transaction. By adding GST in the price of your property, you are able to pass this amount onto the ATO without losing value to the initial sales price offered to your buyer.

  1. Buying a commercial property – paying GST

There’s some good news for those looking to purchase commercial real estate – you are eligible to claim a GST credit that was included in the purchase price.

There are, however, certain conditions that must be met in the process for claiming back GST on your recently bought property.

These include:

–       Both seller and buyer are GST registered

–       The purchased property is legally defined as “carrying on an enterprise”

–       The seller issues a tax invoice for the purchased property

–       The seller has not applied the margin scheme to work out the GST included in the price of the property

–       The property was not purchased as a GST-free supply

Commercial property sales transactions usually deal with significantly large figures and therefore the GST claim will also be substantial.

Buyers should be prepared for a possibly long process in receiving GST credit.  The ATO will often pay extra attention when investigating and verifying larger claims. Therefore, the GST credit may not necessarily be received within the tax quarter that the GST claim was submitted.

  1. Leasing a commercial property and GST

As mentioned earlier, those who own and lease commercial property are required by the ATO to register for GST if rental income is over the $75,000 per annum threshold.

Under ATO’s regulations, property that is already tenanted or partially tenanted can be sold as “supply of going concern” in which case, the buyer may be exempted from GST.

Again, certain conditions and requirements may apply, including:

–       The buyer is registered (or required to be registered) for GST

–       Payment has been made for the supply

–       The buyer and vendor have written agreement that the sale is of a going concern

–       The supplier supplies all things necessary for the continued operation of the business

–       The supplier carries on the business until the day of supply

The GST issues involved in commercial property can be wide and varied, even complicated.

Whether you’re a tenant of commercial space or investing in commercial property as a landlord or vendor, due diligence is key.

Disclaimer:

Any information provided in this article is provided as general information and to be used as general information purposes only.

For specific details and advice regarding GST and commercial property, please contact the ATO or consult your registered tax professional.

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Christmas Survival Guide for Business Owners

Eat, drink and be merry. If only Christmas were that simple.

When you run a business, Christmas can be a stressful time of the year. You may need to juggle sluggish cash flow, staff going on holidays and, like everyone else, a multitude of personal commitments.

So what can you do to get through the Christmas period without turning into the Grinch?

Up the exercise

We all know exercise is great for reducing stress. But don’t wait until the New Year to up the ante at the gym or dust off the bike helmet. Use the Christmas holiday period as a chance to do more of something you enjoy.

Not only will this help you relax and take your mind off work, it will counter some of the excess indulgence that tends to happen this time of year – helping you feel healthier, happier and more energised for 2020.

Boost cash flow 

If the holiday period is stressful because there’s less revenue coming in, do what you can to boost your cash flow until you’re likely to be busy again.

Are there any outstanding debts you can call to be paid before Christmas? Do you any have insurances or membership fees you could pay by the month instead of annually? Could you use your credit card more than you currently do for large business expenses – like your ATO Tax Bills?

Using a third party payment system like B2Bpay  can help you keep cash in your account longer. You also get the added benefit of earning credit card reward points, which could help you pay for next year’s Christmas holiday!

Take a (proper) break

Business owners are notoriously bad at switching off from work. It’s one of the reasons your customers love you, but it’s also a common cause of stress because you rarely take a real break.

The Christmas period is a good chance to take a time out when most of your customers are doing the same.

If you can’t shut down completely, why not entrust one of your staff to take the reins for a week or two? Who knows, you may even find that leaving someone else in charge works out fine – which will make you more comfortable to do it again.

Put family first

If you spend the year having to say no to family functions and other social engagements because of work commitments, use the holiday period as a chance to make up for lost time.

By prioritising your family and encouraging your employees to do the same, it helps build a healthy work-life balance that everyone in your workplace will appreciate – which in turn will help you attract and retain valued people.

Be Santa

It always feels good to do something nice for someone else. So why not treat your staff or customers to a surprise gift or get together? It can be a great way to build relationships and shows your appreciation for the people who are important to your business.   

If you’re not sure what an appropriate gift might be, consider a prepaid credit card  that lets your recipient buy whatever they want. You can even personalise the card with your own brand so they think of you (in a good way!) when they open their wallet.

What will you do?

Whatever strategy sounds right for you, now is the time to do something that might help de-stress over the Christmas period. Get it right and it could be a gift that keeps on giving for many years to come!

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Innovative Ways to Manage Cashflow

If cash is king for any small business, a positive cash flow is the backbone to survival and success. Being nimble is a major advantage for small business. However, this can also result in fast turnover and sudden short falls. Keeping on top of financial incomings and outgoings can be a daily challenge. Here are some innovative ways to manage your cash flow:

Constantly Forecast and Monitor Your Cash Flow

 Although, forecasting for projected earnings and losses can be as fun as watching paint dry, it is absolutely crucial. A forecast allows you to make informed decisions on which business areas have potential revenue growth as well as where to cut costs.

The fast-paced dynamics of a small businesses can make monitoring cash flow a fickle task. Yet, it’s the constant changes that require a close and frequent analysis of your business income and expenditure. Smart small business owners will even track their cash flow on a weekly basis.

B2Bpay is a secure online portal where you can check on all your payments one-off, automatic and future dated. Become a B2Bpay Biller and track your accounts receivable at anytime from anywhere.

Collect receivables immediately

 Generating revenue can be an unpredictable game. However, keeping on top of invoicing and payment receivables will help maintain a positive cash flow. Here are some suggestions to streamline and efficiently collect money owing to your business:

  • Issue and send invoice efficiently and follow up overdue payments
  • Offer a convenient and secure online payment option on your invoice
  • Offer discounts or incentives to encourage customers to pay early
  • Secure a customer’s booking by requesting partial payment
  • Make deposit payments mandatory when taking a customer’s order

 Extend your payables

The key to a successful business is to keep cash coming in as quick as possible while holding back on expenses for as long as possible. Easier said than done? Here are some useful tips:

  • Work closely and build strong, trusting relationships with suppliers who can offer flexible payment terms.
  • Negotiate and maximise payment terms. If a payment is due in 30 days, see if you can extend it to 45 and don’t pay any earlier.
  • Electronic funds transfer allows you to make payments on the last day they are due. This will help you retain funds for as long as possible without facing the stress of late fees.
  • Streamline your accounts payable process and make payments digitally.
  • Don’t leave it to the last minute to request an extension on payment. Look ahead at upcoming bills. Make a conservative decision whether you can make payment or not. If not, contact your supplier immediately and explain the situation.

B2Bpay Benefits

B2Bpay allows you to pay all your invoices using existing credit cards, whether or not your biller accepts credit cards. B2Bpay accepts all major credit cards.

Pay your invoices through B2Bpay and you will:

  • Boost cash flow by taking advantage of your credit card’s up to 55 day’s interest free period
  • Earn Qantas Points
  • Earn credit card reward points
  • Earn full credit card points when paying ATO, insurance and telco bills
  • Eliminate mundane admin and accounting tasks so you can go back to doing what you do best – building a business

According to a recent Wakefield Research study, within the 500 Australian small businesses that were surveyed, 50 percent have lost $10,000 or more by foregoing a project or sale specifically due to insufficient cash flow issues. Having a positive cash flow not only lets you sleep well at night but allows you to financially expand your business.

Whether you’re looking to tighten expenses or need efficient payment methods, B2Bpay allows you to streamline the constant movement of your business funds. Think of all the additional revenue and extra business opportunities that come along with it.

To register, click HERE. Setting up is easy and at no cost!