Blog Posts, Video Clips, Newsletters - Watts Price Accountants

Q&A4 Tax on Interest or Dividends

Tax Planning Questions and AnswersDo I pay more tax on Interest or Dividends?

Answer – They are taxed is the same, it’s at your marginal rates (for individuals). What makes these two types of income streams different for tax purposes are:

Interest is paid on funds held in bank accounts or that were loaned to people/entities. Dividends are distributions to shareholders;

a) If any tax is withheld, it is prior to its distribution to you.

b) In most cases, Interest has no tax withheld from it prior to it being paid to you (an exception to this is where you have not quoted your TFN to the bank or are a foreign resident).

Dividends are made up of Franked and Unfranked components. Franked Dividends have had 30% tax taken out already when they are paid to you. You can claim the tax taken out already in Franked Dividends as a credit, which helps reduce your overall tax payable / refundable for an income tax year. Unfranked dividends, are like interest and have no tax withheld from it prior to it being paid to you (an exception to this is where you have not quoted your TFN to the bank or are a foreign resident).

c) How they are treated when bank accounts are closed versus selling your shareholding.

When you close a Bank Account or are repaid a loan that was earning interest, these are cash payments and the type of assets are all cash. The are no Capital Gain Tax Implications on Cash Assets.

On the other hand, any profit between the sale price and the purchase price of shares sold are subject to Capital Gains Tax. If you have owned the shares for more than 12 months, current law allows you to half that capital gain (for individuals).



The advice provided on this website is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs.

Q&A3 Spouse Super Contribution Rebate

Tax Planning Questions and AnswersHave you heard about the “Spouse Super Contribution Rebate”

Answer: You will be entitled to a tax offset of up to $540 per year if:

  • You make an after-tax contribution of up to $3,000 into your spouse’s super;
  • the sum of your spouse’s assessable income, total reportable fringe benefits amounts and reportable employer superannuation contributions was less than $13,800
  • the contributions were not deductible to you
  • the contributions were made to a superannuation fund that was a complying superannuation fund for the income year in which you made the contribution
  • both you and your spouse were Australian residents when the contributions were made, and
  • when making the contributions you and your spouse were not living separately and apart on a permanent basis.




The advice provided on this website is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs.

Q&A2 Work Related Expenses

Tax Planning Questions and AnswersIf I have my Work Related Expenses reimbursed, can I also claim them as a tax deduction in my personal tax return?

Answer – No, because your Employer will claim the reimbursement paid to you as a tax deduction and because you have been reimbursed, you’re overall out of pocket expense is $Nil.



The advice provided on this website is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs.

Q&A1 Work related expenses

Tax Planning Questions and AnswersAm I better to have a work related expense reimbursed from my Employer or claim it as a tax deduction?

Answer – This one is easy, you are always better to have any work related expenses reimbursed from your employer as opposed to not having it reimbursed and claiming it as a tax deduction. Why? Because when you claim work related expenses as a tax deduction, you will only get the percentage of tax saved as a benefit. The top marginal tax rate is 49% (including medicare levy), therefore, the maximum benefit you will get from any tax deduction is 49% of its cost. If you are reimbursed for the expense, the benefit you have received will be 100%.



The advice provided on this website is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs.

Cloud Bookkeeping Software

Cloud Bookkeeping Software

Hand holding a Cloud Computing Sphere isolated on white background.

Which Cloud Based Accounting Software Should I Use (if any)?

Cloud software solutions have been in use for several years now and growing in popularity. The last few years has seen some great technological leaps forward and this has certainly been driving change in the accounting industry.

Last year we saw MYOB AccountRight launch their latest cloud offering which now means consumers have even greater choice when considering accounting and bookkeeping software options. Given all the available options the key question for the consumer is what is the best solution given my current and future needs?

This article will focus on the main online software packages available but before we review the various options we need to consider whether staying with a desktop version will better suit your needs.

Why consider staying with my desktop software?

Given all the marketing and hype surrounding cloud based services you would be forgiven for thinking desktop software was going the way of the dodo. However in many cases moving to an equivalent cloud based package is just not feasible yet. The biggest concerns include access to fast internet connections, monthly subscription fees, data security fears, hardware considerations and the fear of the unknown. For desktop users that are competent, have good backup systems, good communication channels with their bookkeeper and/or accountant and who have no need to access their file away from the home/office there seems to be little incentive to change at this time.

Why should I consider moving to the clouds?

The key benefits of moving to an online version will depend greatly on which vendor you decide to use but in general you will be getting:

  • A book keeping system that is not too dissimilar to the desktop application that you already know
  • You can access your company file from anywhere via the internet and a computer* (* Your internet speed and quality, your hardware specifications and user permissions will affect your experience greatly).
  • You can share access with your bookkeeper and/or accountant which means no more messy backups,  emailing large files, dropping off USB drives and greater support
  • There are no longer issues regarding which version of the software you are using as everyone will be using the latest version
  • Your file is safely stored and encrypted in the Cloud
  • Most allow you to sync your bank transactions into the software removing much of the data entry
  • Payment can be made by monthly instalments allowing better cash flow management
  • Most offer 24/7 support

So which online solution suits me best?

Having used and through working with clients that are using these software packages we can, in very general terms, advise that some options are better suited to certain types of users than others based on the overall strengths and weaknesses of the product.

MYOB AccountRight Live: Will be most appealing to users that are already familiar with MYOB and perhaps those that have concerns about the quality of internet connection. Its big selling point is the ability to work offline. When you have a good connection simply download your data, the cloud version becomes read only, work on your file then sync back changes when you are done. It also has the ability to pay third parties such as suppliers and staff directly from the software.

QuickBooks Hosted has similar advantages to MYOB for those currently using QuickBooks. They have been in this space longer than MYOB so they have a slight advantage as far as features and scalability for the growing business. Their pricing structure will certainly appeal to larger businesses.

Xero is a great choice if you are a small business that is looking for an easy to use, feature-rich product. Xero has been leading the way in the online bookkeeping space and has delivered a product that is very efficient through its daily bank feeds and other features such as credit control, asset registers, expense claim facility and job tracking.

Saasu has a similar feel to Xero. It delivers advanced reporting options and a more robust payroll system. Many of the features that are add-ons to Xero are integrated into Saasu making it fully functional from signup. For small businesses with strong bookkeeping skills or who want advanced reporting and accounting features at a competitive price would really appreciate what Sassu can offer.

Do I really need a Bookkeeping system?

Maybe not! Many smaller business owners prefer to focus on what they do best. Many either outsource everything to a bookkeeper or minimise the time spent on bookwork through a product called Banklink. Banklink provides transaction data from your bank accounts to you and your accountant so they can prepare your quarterly and annual financial reports on your behalf.

Banklink Notes Online allows you to access your bank transactions via the internet. You can add payee detail, transaction descriptions, GST amounts and even code transactions (optional). Once you have updated the transactions simply click a button to notify your accountant the data is ready to go. There are a few basic add-ons and reporting options plus you have the ability to work offline. If you don’t need an integrated cashbook system then Banklink is a very attractive option.

If you are not sure where to go from here give us a call to discuss your individual needs.

Accounting Software Update

Accounting Software Update


Each year the main accounting software suppliers bring out a new version, new features and offers designed to either entice you to change, upgrade or renew your subscription. We take a quick look at your main options.


Banklink is extremely popular for clients wanting to merely provide transactional information and leave their accountants to worry about the rest, hence Banklink is great for those that want to maximise their available time.

Banklink was recently purchased by MYOB but we have seen little change other than the dumping of Banklink Wages.

We particularly like Banklink Books. At no additional costs Banklink Books provides software for computer users (you will need an internet connection) so they can import their transactions electronically, type their transaction descriptions (or account code) and forward to your accountant over the internet.

This means no fighting with the fax machine (for fax users), you are using a more secure platform than faxing or emailing, less queries from your accountant as it’s easier to read, easier transfer of your data to your accountant and it provides the ability to code transactions (for those who feel up to it).

If you are interested in registering for Banklink Books please give our office a call.

Cashflow Manager

Cashflow Manager provides basic cashbook features for those clients that want to manage their finances but without all the bells and whistles.

A new release of Cashflow Manger is due soon with updated tax tables. Those that don’t use the included support or payroll may consider remaining on their current version.

Cashflow Manager has been hinting for some time now of something big being on the way. This may indicate that they are preparing to launch an online version and possibly provide bankfeeds similar to their competitors.


After the split with Intuit, Reckon has rebranded themselves (formerly sold Quickbooks and Quicken software). Essentially little has changed apart from the software names.

The new Reckon Accounts Hosted version was released in April. The 2014 version has new features such as Bankfeeds (which is long overdue), barcode scanning for purchase orders and historical leave recording and reporting.  The addition of bankfeeds will be a great time saving feature, so users should be quick to set this feature up.

Reckon has also launched a new product called Reckon One. Reckon One is aimed at the business owner that is on the go. Users can track their finances, create invoices and manage projects through their mobile app.

Early signs suggest there is still some work to be done before this product measures up to some of their more established competitors. However, those looking for a cheap way of accessing bankfeeds and basic functionality that they can use on the go, should look out for the next version.


Many business owners will not have heard of Saasu due to their low profile but if you are looking for accounting software that is based in the clouds then Saasu is a viable alternative to Xero.

Saasu’s interface may not be as polished as other software providers but what they may lack in aesthetics they make up for in other areas. For the features, Saasu gives more bang for your buck but is probably best suited to competent users.


Xero is a cloud based accounting package that is growing in popularity due to its heavy marketing campaigns and support from within the accounting industry.

Xero has a number of third party suppliers that have built feature rich add-ons to just about do everything your business would need, all of which integrates back into your accounting software. Popular add-ons include: Vend (Point of Sale); Receipt Bank (convert receipts to data); Workflow Max (job management); Unleashed (inventory management); GeoOp (mobile worker job management); CapsuleCRM (Client database); Quotient (customer quotes) to name a few.

Xero provides an easy to navigate interface, bankfeeds, it’s easy to reconcile transactions and has numerous reports to assist in the management of your business.

At present Xero is offering free software conversion if you are moving to them from MYOB which could save you hundreds of dollars. If that wasn’t incentive enough they are also offering 50% off your first two months.

Those thinking of moving to Xero should consider the ongoing cost of the software and any add-on subscriptions they require as the costs could soon add up. Xero has 5 different pricing plans based on the number of employees.


MYOB has been the industry standard in accounting software for many years. The emergence of Xero over the last few years has been great for consumers as MYOB has thrown plenty of resources into product development.

MYOB has several versions depending on the needs of the user. The MYOB AccountRight range comes in Basic, Standard, Plus and Premier versions while those wanting just an online version can use the MYOB Essentials option.

MYOB are clearly pushing customers toward their online or hybrid solutions at the expense of the desktop versions. MYOB Premier is the latest version to now join the ‘AccountRight Live’ family.

The AccountRight Live products are a hybrid solution as they can be worked on either online or offline. This does require you to load the software on your computer and install regular updates which a pure online version does not require but the benefit is when the internet is not available you simply use the offline mode.

MYOB offers bankfeeds, easier file sharing with your accountant, advanced reporting (in most versions) and has recently introduced access to some third party software such as Calxa and PayDirect.

At present MYOB has a 90 day money back guarantee for all new subscriptions and Watts Price can also offer a 10% discount off the normal subscription price if you allow us to register the software on your behalf.

There are a number of different options available to you, including some we have not reviewed, and each has different benefits and pitfalls. Before making a decision as to which software is best for you please contact our office. We offer a free consultation to help you decide which accounting software is going to work best for you.

Contact us on 03 5382 3001 or via email at

Greater Productivity with Xero

Greater Productivity with Xero


ipad_inside_printWhat is Xero?

Xero is cloud based bookkeeping software that gives you access to your bank transactions, invoices, reports and more – anytime, anywhere!
Clients that have moved across from other accounting software packages love the functionality and feel of Xero. The real-time dashboard allows them to make better informed decisions. They are spending a lot less time reconciling the books due to the daily bank feeds and easy to use reconciliation and cash coding features, this means less data entry and more time doing what you do best.
Those that work out of the office are loving the ability to invoice, check cash flow and bank balances and access contacts information while on the run via the mobile app. Xero also allows unlimited users so file sharing with your team, bookkeeper or accountants is a breeze.
Xero also offers you a wide range of ‘add-on’ packages to help you get more from your accounting software. Xero integrates with popular e-commerce websites such as Shopify or BigCommerce and when used with add-ons like Vend (Point of Sale) and Unleashed (Inventory) create a professional and functional way to run your business.
Tools like GeoOp, Capsule CRM, Receipt Bank, Float (to name just a few) will help you take your business to the next level.
Because Xero is online there is no software updates to load, no issues about your accountant being on the same version and your data is automatically protected and backed up.
If you are currently frustrated with your existing software contact us today for a free consultation or chat to see if Xero is right for you!
Ph 5382 3001 or email us at