KK1 Flashcards
Registering a business name
bus wanting to register a bus name must have a AUS company number (ACN), not free, different from ABN
Registering a domain name
a website address which represents your company in an online brand it should be easy to remember and spell
Trade practise legislation
laws created by the parliament which protect bus and the consumer of unfair market prac
ACCA
Australian Competition and Consumer Commission, that is an independent authority that promotes honesty b/w bus and consumers
Competition and Consumer Commission Act 2010: productsaftey
- right to a refund = product unsafe
- bus X comply / Customer right to take legal action
Competition and Consumer Act 2010
Price fixing -
Price fixing - illegal for competing bus to get together to gain dominance over customer leaving them no option but to pay high $$$
Competition and Consumer Act 2010
imposing min prices on retailers -
illegal for suppliers to attempt to set a minimum price for their products or services that retailers cant sell below purpose if attracting customers
Competition and Consumer Act 2010
selling goods below cost-
illegal to sell goods at a below-cost price fro the purpose of eliminating a comp
Business tax compliance
compulsory payment % of earnings to the gov
AUS taxation office (ATO) is un charge of collecting tax
Business tax compliance
Personal
progressive ( ▲ as the individual earns more $$$)
Business tax compliance
GST
broad based tax of 10% on most goods, services, items sold w in Aus
WORK SAFE INSURANCE
covers employers for the cost if benefit if employees are injure or become ill bc of their work
Why pay tax?
to fund things such as infrastructure, schools, roads ect which help to improve the economy
BAnk accounts
used to manage and track all money coming in and out of the business, allowing owners to jeep personal and bus transactions seperate.
considerations of bank acc
- IR
- proximity to local branch
- merchant services available eg eftpos facilities
DEbit card
own money from bank acc
PRO- no monthly payments or I.R.
Credit card
loan from bank
PRO- credit stores
- travel/hotel discounts incentivise spending
CONS- often fees/ I.R’s / annual fee
Financial control systems
used to oversee business transactions to prevent fraud and errors
FCS helps businesses to avoid…
- large financial loss
- fraud
BUDGETING
an estimation of revenue (income) and expenses over a specific time period
AUDITING
AN inspecting bus accounts by an auditor to make sure the business is documenting accurately to stay compliant
Importance of budgeting
-avoids large financial losses
-prevents fraud
Record keeping strategies
a legal req which categorises transactions that provides info used for bus reports
must be kept for 5 years as by the ATO to make sure the business is compliant
4 record keeping strategies are
- source docs
- maintain cash book
- prep income statement
- prep balance sheet
RKS :
- source docs
paper/ electronic docs that provide evidence that a transaction has occurred
RKS :
- maintain cash book
financial journal containing cash receipt and payments
RKS :
- prepare income statement
report company financial performance over a specific accounting period, shows the revenue and expenses, and calculates net profit
RKS :
- prepare balance sheet
summary of business assist and liabilities
policies
docs where bus ID their legal obl outlines the broad steps taken to maintain legal compliance
procedures
processes to implement to help bus stay compliant
policies pr0s
-create efficiency
-efficient decision making
policies cons
-time consuming
- require reg review
