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JCQTA Forum Financial Issues THE FUN BIT! David & Lorelei Broadbent.

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Presentation on theme: "JCQTA Forum Financial Issues THE FUN BIT! David & Lorelei Broadbent."— Presentation transcript:

1 JCQTA Forum Financial Issues THE FUN BIT! David & Lorelei Broadbent

2 JCQTA Forum The Association Support Agency  Association Management  Event Management  Secretariat Services

3 JCQTA Forum The Association Support Agency  Established 5 Years  Started as home based business with 1 client  Now manages 13 associations with city-based office

4 JCQTA Forum Treasurer is the Best Job

5 JCQTA Forum  Statutory Requirements  GST  Bookkeeping  Reporting  Banking

6 Statutory Requirements Department of Tourism, Racing and Fair Trading Office of Fair Trading Website: www.fairtrading.qld.gov.au

7 Associations Incorporation Act 1981  The Act requires that an Association is controlled by a Management Committee.  The Management Committee must be elected by Members at an Annual Meeting.  The Management Committee must have a person holding the office of President and another holding the office of Treasurer.

8 Associations Incorporation Act 1981  The Management Committee must prepare financial statements within 6 months of the end of the Association’s financial year.

9 Associations Incorporation Act 1981  The Management Committee must have the financial affairs of the Association audited by a registered and qualified auditor.

10 Associations Incorporation Act 1981  Audited Statements must be presented to an Annual General Meeting for adoption.  The Association must hold its AGM within 6 months of the end of its financial year. Office of Fair Trading  The Association must keep a set of books to record the financial transactions of the Association.

11 Associations Incorporation Act 1981  The members of the management committee must ensure the incorporated association takes out insurance in respect of damage to property, death or bodily injury occurring upon the property of the incorporated association for a cover of at least $1,100,000 and shall keep such insurance cover current at all times.

12 Annual Returns  Must be completed annually within stipulated periods after AGM  Penalties for late lodgment apply

13 Statutory Requirements Association Rules  Must comply with the Act

14 Statutory Requirements Questions and Discussion

15 GST www.ato.gov.au

16 GST Who should register for GST?  You must register for GST if you are an entity carrying on an enterprise; and your annual turnover is equal to or greater than the turnover threshold of $50 000 ($100 000 for non-profit organisations)

17 GST Registering for GST  To be part of the GST system, you must be registered for GST. Your GST registration number is usually your ABN. If you aren’t registered for GST you can’t include GST in the price of sales that you make and you can’t claim input tax credits.

18 GST How does the GST system work?  GST-registered businesses must include GST in the price of goods and services they supply or sell. If you're registered for GST, you can claim back the GST included in the price of your purchases as input tax credits.

19 GST – TAX INVOICES Tax Invoices  To claim an input tax credit you must be registered for GST and you must have a tax invoice.

20 GST – TAX INVOICES  If you make taxable sales (that is, you include GST on sales to your customers), your GST- registered customers and clients will need tax invoices from you.

21 GST – TAX INVOICES  Purchases of more than $55 (including GST) do not need a Tax Invoice supplied by law.  Recommended policy – PROVIDE A TAX INVOICE FOR ALL SALES AND GET A TAX INVOICE FOR ALL PURCHASES.

22 GST – TAX INVOICES  You will still need proof of your purchases if they cost $55 or less (including GST) but the proof may be things like cash register dockets, receipts or invoices, which are not tax invoices.

23 GST – TAX INVOICES  If your customer, client or member asks you to provide a tax invoice, you must do so within 28 days.

24 GST _ TAX INVOICES Tax invoices for taxable sales totalling less than $1000 must include: 1.the Australian business number (ABN) of the supplier; 2.the GST-inclusive price of the taxable sale; 3.the words 'tax invoice' stated prominently; 4.the date of issue of the tax invoice; 5.the name of the supplier; 6.a brief description of each item supplied; and 7.the GST amount. This can be shown separately or, where the GST payable is exactly 1/11th of the total price, as a statement along the lines of ‘the total price includes GST’.

25 GST - Reporting Business Activity Statement (BAS)  Can be lodged Monthly or Quarterly

26 GST Questions and Discussion

27 Bookkeeping Golden Rule: Keep it SIMPLE

28 Bookkeeping Invest in a decent accounting software package  $400 - $600

29 Bookkeeping Accounting Methods  Cash Accounting  Accrual Accounting WHICH IS BEST???????????

30 Bookkeeping  GST amounts collected or paid can be reported to the ATO either on a cash or accrual basis. The difference between methods is when the liability is recorded and when to report tax collected and paid.

31 Bookkeeping CASH METHOD If you choose to report your GST on a cash basis – you will not pay any GST to the Tax Office until you have collected it from your customers. You will also not be able to claim back any GST you have been charged by your suppliers until you actually pay your suppliers.

32 Bookkeeping ACCRUAL METHOD Under the accrual basis (non cash basis) you will recognise GST when you receive an invoice (that is, when you have a legal obligation to pay your suppliers) and when you supply goods or services (that is when you have a legal right to claim payment).

33 Bookkeeping Questions and Discussion

34 Reporting  Prepare financial statements for your Management Committee for each meeting.  Ensure the financial statements are minuted as being noted or accepted.

35 Banking HANDY HINTS:  Bank at least weekly  Use a spreadsheet to record cheques as a deposit summary  Use the quick deposit system  Look into credit card facilities

36 Banking

37 Cheque Signatories Biggest hassle with new Management Committees CHANGING THE CHEQUE SIGNATORIES

38 Cheque Signatories Recommended System Have four cheque signatories:  President  Secretary  Treasurer  Immediate Past President

39 Cheque Signatories Get all four signatories to meet at a bank at the same time and get the cheque signatories done there and then.

40 Reporting & Banking Questions and Discussion

41 Managing Membership  Annual membership subscriptions  Managing unfinancial members  Make the decision to remove unfinancial members from your system

42 Managing Membership Questions and Discussion

43 Insurance  The members of the management committee must ensure the incorporated association takes out insurance in respect of damage to property, death or bodily injury occurring upon the property of the incorporated association for a cover of at least $1,100, 000 and shall keep such insurance cover current at all times.

44 Insurance Association Liability Insurance  Public Liability Insurance  Standard PL Policy is $5 Million  Directors & Officers Insurance

45 Insurance Where to get it ?????

46 Insurance Questions and Discussion

47 JCQTA Forum THAT’S ABOUT IT Problems? Questions? Comments?


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