Unlocking hidden time with R.E.D.
How to have a R.E.D morning
We all have 24 hours in the day, so why are small business owners constantly telling me they don’t have enough time?
Wouldn’t it be great if you could unlock some of the lost and hidden time in your day?
Before I discovered the R.E.D morning, I was a person who was always saying that I had no time for reading or exercise. But those three letters changed everything.
What does R.E.D mean and why is it so transforming?
The acronym R.E.D. stands for;
Just stop and think for a moment how you could improve your day if you completed these tasks before 12 noon every-day.
You could read a book or an article (like this one) that fundamentally changes your daily routine for the better.
By making time to exercise on a regular basis you are literally extending the length and quality of your life. Couple this with exercising with family or friends and you get the additional bonus of improving the relationships in your life.
The Doing part of an R.E.D. morning is about acting on an item that has been hanging around on your To Do list. For example: reviewing your life Insurance needs.
Huge benefits will be unlocked by using R.E.D. to improve your time management including;
- Clearing blocks in a project that are holding you back from success
- Creating momentum for the rest of your day, so that completing the next items on your list will occur faster and better
- Completion of your milestones which leads to completion of your goals.
Happiness is the pursuit and completion of a worthwhile goal. So not only will you be more productive, you are going to be happier as well. Your happiness will be contagious and spread to others, and their happiness to another and another. I know that the above snowball of happiness is a little bit exaggerated. But I believe that positive small actions can lead to dramatic long-term change and success.
What I would like you to do is to follow the R.E.D. approach for one month. At the end of one month, please send me a note using our Contact Us page. In that note, please explain how the R.E.D. approach has changed your life. If you do this, you will receive a special gift as a thank you for your action. This gift will help you and your business continue to grow.
At Complete Accounting, we have other articles to help you grow your business – if this article was helpful you may want to read our Housework: The Secret Weapon of Business Owners one.
Three Ways to Withdraw Money From Your Business
The three main ways to withdraw money from your business
“How do I withdraw money from my business.”
This is a question that we are often asked by our clients. There are many reasons for why a business owner would want to withdraw money from the business, from pursuing business growth opportunities to the payment of an employee.
However, like many things in business, there are some traps you need to be aware of:
Follow these points to avoid the mistakes that business owners make when:
- First of all register your business for PAYG Withholding;
- Get each employee to complete a Tax file number declaration form;
- Lodge the completed Tax File Number Declaration with the Tax office;
- The business commences paying wages to the employee;
- At the end of the financial year the business needs to;
- Prepare and provide a PAYG payment summary to your employee;
- Lodge a PAYG Payment summary statement with the ATO.
When your employee’s wages ;
- Don’t exceed $18,200 for the year no PAYG Withholding is payable on the employer’s BAS.
- Exceed $18,200, the employer must calculate and remit PAYG Withholding on their next BAS.
As an employer you need to be aware of your Superannuation obligations when you pay wages. An employee who earn less than $449 a month doesn’t receive Superannuation. Employee’s that earn at least $450 a month must receive a 9.5% contribution to their chosen superannuation fund.
It is important to note that business owners can also be employees of their company.
Via a Shareholder Loan Drawing
Owners and Employers can use Shareholder loans to withdraw money from businesses:
Here is an example:
- The shareholder pays for company expenses from their personal funds;
- The payment by the shareholder creates a loan from the shareholder to the company;
- During the year, shareholders can withdraw an amount equal of money that they lent to the company. PAYG Withholding is not paid on this money as it is the return of loaned funds;
- A shareholder who draws more funds than they are owed by the company will have a loan owing to the company that must be repaid.
It is important to note these types of loans need to be repaid before the end of the financial year (30th of June).
Via payment of a Dividend
The final quarter of the financial year is a great time to review whether to use dividend payments to shareholders as an appropriate method to withdraw money from your business.
- Companies that make a profit in prior years can be paid to shareholders as dividends;
- Additionally, if your company has paid income tax on the prior year profits the tax paid by the company can be credited to the shareholders as a part of the dividend payment.
As a result Complete Accounting can help guide your business through these processes. Please Contact our friendly staff today to book an appointment.