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  • #988788
    fanix
    Member
    • Total posts: 43

    Hi,

    I’m running a Pty Ltd, with only me as the sole director, but im not running as a sole trader, have a proper Pty ltd structure, whereas I am exmployed by my company.

    My accountant advised that I pay super every quater with my BAS lodgement. But isn’t it better to just pay the super into my super account after each payrun, that way it starts occuring interest right away? whats the point in keeping the funds in my company’s bank account where I hardly get any interest?

    #1168902
    PRO
    Member
    • Total posts: 450

    Cashflow is the most common reason for paying quarterly.

    #1168903
    bb1
    Participant
    • Total posts: 4,485

    A common issue with accountants they dont look at the bigger picture, they just think keep the money in the business, but not actually where will the money give the best return.

    If for you financially it is better to put it in the super with the pay run, thats what I would be doing.

    #1168904
    PRO
    Member
    • Total posts: 450

    What I do with GST, PAYG and Super.

    Each fortnight I take the money out of a trading account and put it into a high interest online only account. Then at BAS time I transfer over. Great for budgeting and means you get a good interest rate. I also transfer 10% of sales over for GST. Then take half of what is lest to invest in growing the business and the other half to the directors/shareholders as a reward for being in business.

    As your businesses(s) grow the interest can become significant.

    #1168905
    fanix
    Member
    • Total posts: 43
    PRO, post: 195822 wrote:
    What I do with GST, PAYG and Super.

    Each fortnight I take the money out of a trading account and put it into a high interest online only account. Then at BAS time I transfer over. Great for budgeting and means you get a good interest rate. I also transfer 10% of sales over for GST. Then take half of what is lest to invest in growing the business and the other half to the directors/shareholders as a reward for being in business.

    As your businesses(s) grow the interest can become significant.

    I like the sound of this. It actually makes sense and this is what I want to do, to also make sure I budget for when its time to do my BAS etc…

    Current I bank with St George and they have Fixed term savings accounts, which interest rates of 3.25 on 4month term, which should be fine for each financial quarter… Any advise if there are better ways to invest this money until BAS time comes?

    #1168906
    PRO
    Member
    • Total posts: 450

    Link an ING direct account or another online high interest account to your trading account. No fixed term and higher fees.

    #1168907
    fanix
    Member
    • Total posts: 43

    I went with St George Insentive Saver ( 3.89% p.a.) rate.

    Its already linked to my Quickbooks Online Suite. I transfered my PAYG Payable from my Business Account to the saver account, but how do I record this transaction in Quickbooks?

    #1168908
    FalzonFinancial
    Member
    • Total posts: 38
    Finamic, post: 195885 wrote:
    I went with St George Insentive Saver ( 3.89% p.a.) rate.

    Its already linked to my Quickbooks Online Suite. I transfered my PAYG Payable from my Business Account to the saver account, but how do I record this transaction in Quickbooks?

    Once your two accounts are added in QBO, you can create a bank transfer between these accounts. This can be completed on the bank reconciliation page by adding a transfer transaction. Alternatively this can be processed by clicking + and Other “Transfer”.

    Feel free to send an email if you require further assistance.

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