Legal Requirements
- registering a business name
- registering a domain name
- trade practices legislation
- business tax compliance
- work safe insurance
Freelancing relates to the type of work they do
False:
Freelancing relates to the type of relationship the worker has with the business
True or false:
Under the law, business owners must have 2 separate accounts for their business and personal use
False
it is just highly recommended
what is another word for inventory
stock
true or false:
businesses are required by law to keep records of their financial transactions for at least 10 years for tax purposes
false - it's for at least 5 years
What is Australia's national business registration service?
Australian Securities and Investments Commission (ASIC)
What is the role of a bookkeeper?
assists businesses in keeping and processing a business's financial records
True or False
Smaller banks have better interest rates, but often have don't have physical branches - which may make things inconvenient
true
True or false?
Auditing can only be done internally
False:
Auditing can be done internally and externally.
however auditing done externally will be more costly, but provides businesses with valuable feedback
what are the two sections of a cash book?
cash receipts on the left and cash payments on the right
Name two types of taxes that businesses must pay
- Goods and Services Tax (GST)
- Pay as you Go (PAYG)
- Fringe Benefits Tax (FGT)
- stamp duty
- land tax
What type of worker:
has employment offered for a specific period of time
a) freelancerd) full-time employee
C
name 3 factors businesses should consider when choosing a bank account
bank fees, interest rates, overdraft facility, credit cards, convenience and support
what type of financial problems can businesses potentially suffer from
poor systems, theft pr fraud, debt management, lack of cash flow, damage to assets
name one thing an income statement shows
- amount of income or revenue earned
- the costs or expenses incurred in earning that revenue
- whether a profit or a loss has been incurred in the period under review
What is the name of the principal piece of legislation outlining occupational health and safety in Victoria?
Occupational Health and Safety Act 2004 (Vic)
Name all 6 external professionals discussed in class
Freelancers, bookkeepers, sales professionals, marketing consultants, recruiters, IT technicians
what is an overdraft facility
an overdraft facility is when financial institutions allow a business to withdraw more money than they have available
why is cash flow important
some points:
- profit is vital to the business and failing to make profit will lead to long-term demise of the business
- businesses must maintain sufficient cash flow to be able to meet obligations such as bills and tax
- preparation of cash flow or budgeting can help businesses calculate a surplus or deficit of cash
what is the main purpose of a balance sheet
the main purpose of a balance sheet is to help a business owner monitor the debt and equity levels of the business
What does WorkSafe provide?
WorkCover Insurance, which is a compulsory expense for Victorian employers
what are marketing consultants responsible for?
responsible for raising awareness of a business's products and brand with their target markets
What is meant by 'the separate entity'
an accounting principle which states we should record transactions of the business and the owner separately
what does accounts receivable refer to
1. record the revenue
2. record the costs of goods sold
3 calculate net profit