Knight CFO, Bookkeeping & Payroll

Category: News

  • Can a Bookkeeper Save Me Money? Here’s How Professional Bookkeeping Reduces Business Costs 

    Can a Bookkeeper Save Me Money? Here’s How Professional Bookkeeping Reduces Business Costs 

    Many business owners see bookkeeping as an expense. In reality, professional bookkeeping is often an investment that pays for itself many times over. 

    The most obvious saving comes from reducing your accountant’s workload. When your financial records are organised and reconciled throughout the year, your accountant spends less time correcting errors and preparing year-end accounts. This often translates into lower accounting fees. 

    Bookkeepers also help businesses avoid expensive mistakes. Incorrect GST coding, duplicate supplier payments, missed customer invoices, payroll errors and unreconciled transactions can all have significant financial consequences. Identifying these issues early helps prevent penalties, cash flow problems and unnecessary costs. 

    Cash flow is another area where bookkeeping delivers value. By keeping accounts receivable and payable up to date, business owners gain greater visibility over who owes them money, what bills are due and whether sufficient cash is available to meet upcoming obligations. 

    Accurate bookkeeping also improves decision-making. Reliable financial reports enable business owners to identify profitable products, monitor expenses, evaluate staffing costs and plan for future growth. 

    Professional bookkeeping becomes even more valuable when combined with payroll services, BAS preparation and management reporting. Rather than simply recording transactions, modern bookkeepers help provide the financial information required to run a successful business. 

    Businesses that invest in accurate bookkeeping are often better positioned to secure finance, attract investors and manage growth because they have confidence in their financial information. 

    Key Takeaways 

    • Good bookkeeping reduces accounting fees.  
    • Accurate records minimise costly errors.  
    • Improved cash flow supports better financial decisions.  
    • Reliable reporting helps businesses grow.  
    • Bookkeeping is an investment rather than simply an administrative cost.  
  • Should I Hire a Bookkeeper or an Accountant?

    Should I Hire a Bookkeeper or an Accountant?

    One of the most common questions business owners ask is whether they should hire a bookkeeper or an accountant. The answer is that they perform different roles, and for many businesses, both are important. 

    A bookkeeper is responsible for maintaining the financial records of your business throughout the year. They record transactions, reconcile bank accounts, process supplier invoices, manage customer payments, assist with payroll, and keep your accounting software accurate and up to date. Reliable bookkeeping provides the financial information needed to understand how your business is performing. 

    An accountant, on the other hand, typically focuses on taxation, financial reporting and compliance. They prepare annual financial statements, lodge tax returns, provide tax planning advice and help business owners make decisions about business structures and tax obligations. 

    Think of it this way. Your bookkeeper keeps your financial engine running every day, while your accountant checks that everything complies with legislation and helps optimise your tax position. 

    Businesses often make the mistake of relying solely on their accountant. Unfortunately, if the bookkeeping is inaccurate, accountants spend valuable time correcting errors instead of providing strategic advice. Maintaining accurate bookkeeping throughout the year generally results in lower accounting costs, more reliable financial reports and fewer surprises at tax time. 

    As businesses grow, they often require an additional layer of financial support through a Virtual CFO, who focuses on budgeting, forecasting, profitability, cash flow and strategic planning. 

    The best financial outcomes occur when bookkeeping, payroll, BAS services, accounting and financial advisory all work together. 

    Key Takeaways 

    • Bookkeepers manage day-to-day financial records.  
    • Accountants focus on taxation and compliance.  
    • Accurate bookkeeping reduces accounting costs.  
    • Most growing businesses benefit from both services.  
    • A Virtual CFO provides strategic financial guidance beyond bookkeeping and tax.  

    Related Articles 

    • What Does a Bookkeeper Actually Do?  
    • What is a Registered BAS Agent?  
    • When Should I Hire a Virtual CFO?  
  • Make 2020 your year of the budget!

    Make 2020 your year of the budget!

    The creation of a new financial year budget is viewed as mandatory by every business owner, right? Wrong. In fact, in my experience, 95% of small businesses neglect to do this key critical task and are essentially ‘flying blind’, working off a copied and pasted budget from 12 months prior and beyond. In many instances they may not even have a budget at all – a scary thought!

     

    I completely appreciate that for small business owners life is extremely busy, and budget setting becomes an onerous job that falls through the cracks or is deemed unnecessary. The reality is that most business owners wear several hats when starting a business, and it’s hard to do it all when driving new leads is the number one priority. But I can assure you that if you can invest the time to implement a strategic budget and make the effort to effectively manage it once set – you will be ultimately saving your business time and money.

     

    Benefits of strategic budget management.

     

    The perceived pain of creating a fresh annual budget is minor when you consider the benefits you will gain as a result. Medium to large-sized businesses set new budgets every financial year without fail – and perhaps that’s one of the reasons why they’re no longer small businesses, if you catch my drift! So what are the benefits, exactly? There are three key advantages worthy of consideration:

     

    1. You will gain insight into how your business performed the previous FY and learn what needs to happen moving forward to help your business to achieve its objectives.
    2. By setting a budget before a new FY you’re indirectly forcing yourself to incorporate a good business practice of strategising on every aspect of your business including marketing, wages, sales projection and advertising.
    3. You will have greater clarity into your revenue. Revenue is indirectly linked to all advertising, marketing and promotional strategies adopted but these areas are often ignored. An effective budget and linked strategy will make it so much easier to see which areas of your business contribute to your revenue – and thus guide you with forward planning.

     

    Steps to get you started.

     

    Medium to large organisations will typically employ dedicated teams to manage their strategic planning and financials, with multiple budgets in place based on different scenarios. On the other hand, many small businesses may not have a budget at all – let alone several – which therein lies the reason for their stagnated growth, or worse their untimely closure.

     

    But even the most basic of budgets can be highly effective and useful – particularly when reviewed and adjusted on a regular basis. If you can follow these steps, I firmly believe you will be well on your way to improving the performance and long-term viability of your business.

     

    1. Adjust your thinking. Consider your budget as less of a record of ingoings and outgoings and more of a strategic tool to guide your FY planning. Yes, managing costs is critical but this should be the end result of the strategies you decide on before the new FY starts – as opposed to the sole reason for having a budget.
    2. Download any historical budgets and last year’s actuals and run a strategy workshop with other owners or key decision-makers within your business. If you’re a sole trader, consider engaging any financial advisors or coaches you may be connected with, or hire a virtual CFO [link to Contact page] to assist you with the process. This workshop is imperative for effective business planning and should be a mandatory exercise before heading into a new financial year.
    3. Obtain best estimate quotes detailing costs and when invoices will be due. Be strategic about what you’re doing and when, as this may impact how much things will cost. Will you be moving offices? Are you planning on seasonal advertising campaigns? Look at major costs and plan properly.
    4. Become familiar with terminology, industry/government announcements and invest in your own education. Understand the differences between fixed and variable interest rates, know how to manage variable costs effectively and what is actually ‘your’ money or the government’s. Knowledge is power and the more you know the more in control you will be.
    5. Arrange a monthly review to compare your actual results against what was budgeted. Analyse why your budget was underspent or exceeded, or in the best case scenario met. These regular checks and balances will inform you if your planning setup has been a success or failure, and if you need to change course or strategies.

     

    Once your budget is in place – and after you’ve breathed a heavy sigh of relief! –  you can relax in the knowledge that your business has a solid strategy in place based on your business’ targets and objectives. But this should never not be a set and forget exercise; a monthly review should be the bare minimum, so make budget tracking your new hobby and you will avoid any scary surprises. In fact, you should discover plenty of pleasant surprises, too!

     

    Always remember that the financial impact of the strategies and plans for a new FY will indirectly influence you to think how you’ll be growing your business. And wouldn’t that be a fantastic mindset to have going into a new financial year?

    If you’d like to receive further advice around budget planning for businesses please feel free to get in touch. The Perth-based Knight BPO team are specialists in Virtual CFO services and are highly skilled at supporting small businesses and sole traders with their financial planning and management.

  • Making outsourced bookkeeping work for your business.

    Making outsourced bookkeeping work for your business.

    Business owners and those in upper management roles often mistakenly believe outsourcing to be a ‘set and forget’ exercise – and then wonder why it hasn’t worked for them. But unless outsourcing is given the right amount of forethought, any short-term benefits experienced are unlikely to be sustained in the long term.

    To ensure outsourcing is successfully implemented in your business, I recommend taking the time to consider a number of critical factors – beginning with the answers to these questions:

    1. Are you going to engage the contractor directly or use a third-party provider?
    2. Will you engage an overseas contractor or go through a local (Australian-based) established business?

    When contemplating which option is right for you, it’s important to realise there are pros and cons associated with both. For example, while going direct and overseas can seem considerably cheaper – the risks associated are higher, which may result in unpredicted future costs and pain points within your business. You may also discover:

    • A lack of certainty with the quality of their work. Without a person who understands your needs or the Australian market and the standards that are deemed acceptable, a lot can be left to individual interpretation. Can you afford to redo the work you’ve paid someone else to do?
    • Often this is not a dedicated resource. Your business is just one of many clients so your work may not be prioritised. Contractors often have multiple clients and will juggle work and priorities as it suits them – not how it suits you.
    • If something goes wrong, there’s no backup and no one to cover the work or liaise with you. Unless you have a team of overseas contractors deployed, downtime can seriously affect your business.

    Alternatively, if you choose to engage an outsourced third-party supplier whose head office is based locally in Australia, you will always have someone to liaise with if things go wrong. This also provides a much more efficient means of process mapping and deployment, plus you don’t need to worry about resources being sick or on annual leave. That’s an issue for your local supplier to manage, not you!

    If you do decide to go direct with your outsourcing, to ensure your journey is as successful as possible I’ve created a handy checklist when evaluating the set-up and structure of potential overseas providers.

    1. How long have they been in business?
    2. How much will they charge for providing HR services?
    3. Do they provide good working conditions and pay rates for their employees? This is an essential point, so if possible take the time to visit their office and check this out for yourself.
    4. Can they provide a very clear job description that defines their responsibilities and skillsets?
    5. Do they have processes in place to hire staff that are in line with the values of your organisation? Don’t forget that team cohesion and the right work environment applies here too!
    6. Can they provide on-going staff training and skills improvement?

    I also recommending testing your potential provider’s skillsets yourself, as there is often a marked difference between what employees say their skill sets are and what the HR provider will say, versus what you require. To avoid this, conduct the first interview yourself and ensure you undergo some practical testing. And remember – even though the business is based overseas, it’s important to treat them as an integral part of your business the same way you would treat your local staff.

    If you’d like to discuss overseas outsourcing, please feel free to get in touch. The Perth-based Knight BPO team are specialists in assisting businesses to successfully outsource in the key areas of finance, accounting and administration. We look forward to hearing from you!

  • End of Year Super

    End of Year Super

    A handy tip for small businesses

    The Australian Tax Office (ATO) only allows deductions for superannuation payments which are actually paid on or prior to the 30th of June. If you are looking at minimising your tax liability, it is recommended that businesses try and process their June quarter Superannuation payments prior to the cut off date – 30th of June. That said if your business has been running at a loss, year to date and Cash Flow is a concern then it is recommended that you consult your Tax Accountant about prior to the 30th of June to consider the best option for you.

  • Bad Debts are Bad for Business

    Bad Debts are Bad for Business

    No-one likes dealing in Bad Debts, and it’s definitely a case of “Prevention is better than cure”.

    Cash Flow is important for any business and for Small Businesses in particular, it is often tight. Bad Debts push this even further.

    The ATO published a story titled “Protect yourself from illegal phoenix activity. Do you know who you’re going into business with?”. In this article they discuss ways to reduce your exposure to bad debts. Helpful for developing new business relationships, but it wasn’t about day to day processes.

    Manage the risk of Bad Debts

    Even businesses that are “cash up front”, are still exposed to Bad Debt by broken promises and this risk is increased by offering any credit terms.

    Managing your Accounts Receivable in a planned and structured manner can be instrumental. Many small business owners find it tough to discuss payment in person. Important discussions are often missed and any potential issues not managed.

    Money is personal and often emotional.

    Utilising a service such as Knight BPO to manage the collection of outstanding monies before they become a doubtful debt not only saves time, but stress as well!

    At Knight BPO, we work with our clients to put together a structured Accounts Receivable process and execute that process.

    Scenario: We have a client with a service-based business. Their standard credit terms are 14 days from service for most customers. The process that we work through for them looks like this:

    • Their Knight BPO Customer Service Team calls to check in at the completion of a service, check that all is OK and confirm receipt of the invoice. This is the first check point to make sure they’re happy and all is well.
    • We send a pre-written reminder email for debts that are 3 days overdue.
    • Should a debt reach a week overdue, a phone call by the client (made by the Knight BPO Accounts Receivable Team) to understand the issues causing the delay and work through a plan to resolve.
      • The plan is communicated to our client.
      • The plan is actioned by us.
    • If there are any issues with the new plan, we contact the client and manage each case individually.

    Each and every business is unique and managing debtors is no different! The Account Receivable process is tailored to suit your business. You are involved in scripting the phone calls and emails to make sure they’re representative of your business.

    The Knight BPO Accounts Receivable process takes away the stress from collecting money. It takes away some of the more painful tasks of running your business and gives you time to focus on more enjoyable tasks such as earning money – or counting it!

    Ask Us Today!

  • Casual Workers Entitlements to Long Service Leave

    Casual Workers Entitlements to Long Service Leave

    Did you know Long Service Leave is an entitlement for your casual workers in a similar way to permanent staff?

    Casual labour provides the flexibility needed to help ease the burden of peaks and troughs experienced by businesses. There is a direct and instant relationship between revenue, the outputs required, and costs associated. Having a workforce that is reliable, experienced and knows your business is beneficial on many levels. The responsibilities of employers to its permanent workforce compared to its casual labour pool is different in the immediate liabilities, such as annual leave and sick leave. However, longer term employee rights, such as Long Service Leave accrue in the same manner.

    Casual workers are entitled to Long Service Leave.

    So how does a small business manage this? The entitlements of casual workers are the same as for their permanent colleagues. Rules for Long Service Leave differ depending on things like award, the structure of a business and where it operates. If you have employees who have been with you for 7 or more years, it’s important to know the rules that apply to your business.

    A common entitlement structure provides employee entitlements of 8 2/3 weeks of Long Service Leave after 10 years. From 7 years, should the employee leave for any reason, entitlements are determined on a pro rata basis. This means if an employee leaves after 8 years, they’re entitled to nearly 7 weeks of Long Service Leave.

    Records for Long Service Leave need to be kept for longer than taxation requirements.

    Determining Long Service Leave for permanent employees is relatively simple, as it is calculated based on their current employment conditions. For casual workers, it’s more complicated. In order to determine the amount of Long Service Leave that a casual worker is due, you need to determine the average number of hours worked over the full term of their employment. If you’re not prepared, this means trudging through old records, finding the hours worked each week for the past 8+ years!

    That’s longer than you’re required to keep your taxation records!

    At Knight BPO, we keep track of all of our client’s employee information so that your business is compliant. We track employee leave entitlements so you know your liabilities.

    Oh. I am not yet a Knight BPO client, but I need help!

    There are a number of government agencies that can provide the information you need to know your liabilities. The Fair Work Ombudsman, and WA State Government both have helpful resources, or you can speak with your accounting services provider.

    Knight BPO can review your historical records to prepare a report on historical staff entitlements. It’s all a part of the onboarding service that gives you comfort that your business is compliant, that you know your liabilities, and that you have all of the information needed at your fingertips to maintain great relationships with your employees!!

    Ask Us Today!

  • Starting a Business in Australia and running it successfully

    So you have made the decision to start your own business, and you have a product and or service that you believe there is a market for it. Well that’s great but how do you get yourself up and running. What are the most basic steps you have to start with? This is a very basic introduction to you. The below information is about starting a business in Australia specifically.

    What type of Business Structure?

    There are a number of structures that you can choose from when starting or expanding your business.

    The four main business structures commonly used by small businesses are:

    • Sole trader: an individual trading on their own
    • Partnership: an association of people or entities running a business together, but not as a company
    • Trust: an entity that holds property or income for the benefit of others
    • Company: a legal entity separate from its shareholders.

    Each Business structure has it’s Pro’s and Con’s get in touch with us to discuss in more detail

     

    What’s in a Name?
    So you have chosen a business structure, the next step is to choose a business name and is it going to be available?  The next step is to do an Australian Securities and Investment Commission (ASIC) Search to see if the name is available. It is not uncommon for someone else to have thought about that business name. The availability of an appropriate business name is vital. Of course once this has been resolved the next step is to see if you have the required website Domain available.

    ABC or an ABN and what about GST

    For doing business in Australia it is a requirement to have an Australian Business Number ABN (Most cases). An ABN helps the requisite authorities to identify a business easily (Australian Tax Office, Department of State Revenue etc). Not to mention it is a requirement by law to display your ABN on any invoice issued by your business. When doing this it is decision time. As Australia has a Goods and Services Tax regime (GST) 10% currently. You have to charge GST on any form of sale whether for products or for services (if your yearly sales are going to exceed $75,000), unless your product and or service is exempt. Now you can decide to report GST on an Accrual basis or Cash Basis.

    Cash or Accrual what should I do?
    An Accrual method of reporting is when a business has provided the Goods and or services to the client and has raised the sales Invoice. In the real world it is conceivable to think that a business may send a sales Invoice at a certain date, however it is not necessary that the client pays at the same time there may be a delay. Anything between 7 days to 90 days or more in some cases. If you decide to report on an Accrual basis then the GST become payable on the date you sent the sales invoice.

    In contrast to this on a cash basis the GST is only payable when you have actually been paid for the sales, i.e. you have received the funds.

    This decision should be taken after giving some thought.

    So how did we do?
    For any business the most basic and most important reports are the Profit & Loss and the Balance Sheet.

    So what is a P&L and why is it important?
    The profit and loss statement is a summary of a business’s income and expenses over a specific period. It should be prepared at regular intervals (usually monthly and at financial year end) to show the results of operations for a given period. A Profit and Loss is calculated in the following way.

     

    P&L

    Ok so then “What is a Balance Sheet? And why do I need it?”

    The balance sheet is one of the major financial statements used by accountants and business owners. The balance sheet is also referred to as the statement of financial position. This report presents a company’s financial position at the end of a specified date.  A  sort of “snapshot” of the company’s financial position at a point in time. Because the balance sheet informs the reader of a company’s financial position as of one moment in time, it allows someone like a creditor to see what a company owns as well as what it owes to other parties as of the date indicated in the heading. This is valuable information to the banker who wants to determine whether or not a company qualifies for additional credit or loans. Others who would be interested in the balance sheet include current investors, potential investors, company management, suppliers, some customers, competitors, government agencies etc. Below is a sample Balance Sheet.

    Sample Balance Sheet
    Sample Balance Sheet

     

     

    Although the above is a rough guide, and there are a lot more things involved, these are the very basic steps that anyone who is considering starting a business should be aware of. A successful business manager/owner understands the value of good product/service placement and delivery. However, often overlooked is the importance of monitoring, reporting and interpreting its performance. Budgets, forecasts and comparison reports allow operators to make strategic decisions. For this to happen it is vital that business owners get accurate and timely information. This is fulfilled by having the financial information for the business processed and reported by professional and competent personnel. Whether this is done internally or externally, high level financial feedback is invaluable when looking at key business decisions. It often makes a difference between success and failure.

    PLEASE NOTE: The above is meant to be a guide only and is focussed towards Management Accounts, please get in touch with us for more detailed and current information or consult the Australian Tax Office.

     

  • Common mistakes regarding GST

    The Goods and Services Tax (GST) legislation has been in passed and is up and running since 1st of July 2000. Although there have been an effort from Australian Tax Office (ATO) to train and familiarize taxpayers about this issue, there are several businesses that still make mistakes when treating transactions and their respective GST treatment. This can lead to mistakes being made for claiming GST tax credits by tax Payers.

     

    That said the ATO has now shifted it’s approach from that of education to enforcement and businesses, especially small businesses should do their best to ensure that transactions and their GST treatments are recorded appropriately. This may otherwise expose you to possible penalties and other charges from the ATO.

     

    At Knight BPO we do not simply take responsibility for recording your transactions accurately but also in the most appropriate manner in adherence to relevant legislation and standards.

     

    Some common GST mistakes to watch out for are as follows:-

     

    • Bank Fees are treated as “input taxed” meaning the bank doesn’t charge GST to the customer. Examples of Bank Fees are (fees to open bank accounts or close them, payment orders,  cheque dishonour fees or stop cheque fees, monthly bank fees, annual bank fees, fees for chequebooks, fees for loan establishment
    • Superannuation – is not subject to GST and are non-taxable
    • Wages are not subject to GST and are non-taxable
    • Basic Food items that have not been processed are GST free – some examples are – bread and bread rolls without icing or filling, fats and oils, spices and sauces etc a more comprehensive list can be obtained from the ATO web site.
    • Residential Rent
    • EFTPOS, Amex, Visa card fees also known as merchant Fees- GST is charged on credit card merchant’s fees and therefore a GST credit can be claimed on these expenses;
    • Government or state charges like payroll tax are not subject to GST
    •  Or State charge like payroll tax as an example or land tax, water rates, fees charged for filing by ASIC are meant to be recorded as GST free.
    • Residential properties are input taxed, therefore Income and Expenses relating to residential rental properties cannot be charged GST by the landlords.
    • Insurance related to business like Public Liability Insurance, Worker Compensation insurance etc have a stamp duty component in the premium which is not subject to GST, There is usually though GST on the actual insurance premium and this can and should be claimed is applicable.
    • If your business is registered for GST – and receives grant funding (from a government body or private foundation, for example), it does not have to pay GST on the funding payment unless it makes a ‘supply’ in return for the payment.
    • GST-free purchases such as basic food items, exports and some health services; Wages and superannuation payments are non-taxable supplies;

     

    The above statement is meant to serve as a guide only, please note before making any decisions please contact a qualified Accountant or the Australian Tax Office.

  • Christmas Gifts and Christmas Parties – How to treat them in your books!

    Christmas is right around the corner, and everyone including most businesses are making preparations to either shut down for a duration or alter their trading hours. A lot of businesses are considering thanking showing appreciation for the efforts that employees have put in for your business.

    Usually businesses will hold a Christmas party, however a Christmas Party is regarded as “entertainment” by the Australian Tax Office, and the associated expenditure is deemed

    • Non Tax Deductible
    • and is subject to FBT if the cost per person is more than $300 as it would not be categorized as minor benefit

    A minor benefit is one that is provided to staff or their associates, for example their spouse or partner, on an “infrequent” or “irregular” basis, is not considered a reward for services, and the cost is less than $300 “per benefit” inclusive of Goods and Services Tax.

    Can I give a Non-entertainment gifts provided to employees are usually exempt from Fringe Benefit Tax (FBT) where the total value is less than $300 inclusive of GST. A tax deduction and GST credit can also be claimed. These include skin care& beauty products, flowers, wine, perfumes, gift vouchers and hampers etc.

    Non-entertainment gifts given to clients and suppliers do not fall within the FBT rules as they are not provided to employees. Generally a tax deduction and GST credit can be claimed for these gifts, provided they are not excessive or overly valuable.

    Entertainment gifts examples include theatre tickets, passes to attend a musical, live play, movie, tickets to a sporting event or providing a holiday can have different tax implications and you should consult your tax accountant for advice. Where the cost for the employee and their associate is each less than $300 GST inclusive, FBT is not payable, and no tax deduction or GST credit can be claimed.

    However, if the cost for the employee and their associate is each $300.00 or more GST inclusive, a tax deduction and GST credit can be claimed, but FBT is payable. The cost of any entertainment gifts provided to clients is not subject to FBT, and no tax deduction or GST credit can be claimed.

    It is important that businesses maintain separate accounts in the general ledger for recording the above transactions to ensure that the correct income tax, GST and FBT treatment is applied.

    1. What happens when the “non-entertainment gift” is $300 or more GST inclusive?

    Providing employees “non-entertainment gift” of $300 or more GST inclusive is less tax effective. A tax deduction and GST credit can still be claimed, but FBT is payable at the rate of 46.5%.

    1. But what happens when providing staff with gifts of, say, beer or wine which is not consumed at the workplace or at a work social gathering but instead is consumed at home?

    The cost is tax deductible, a GST credit can be claimed, and is exempt from FBT up to the $300 limit.

    Non-entertainment gifts given to clients and suppliers do not fall within the FBT rules as they are not considered your staff. Generally, a tax deduction and GST credit can still be claimed provided they are not excessive or overly valuable.

    So, what should I give my staff this holiday season?

    The best outcome for your business this Christmas is to give staff non-entertainment type gifts that cost less than $300 GST inclusive per staff member as this is fully tax deductible with no FBT payable.

    However, these favorable tax rules don’t apply to gifts to sole proprietors and partners in a partnership as they cannot be employees of themselves. Benefits given to any staff employed by the business achieve the same tax outcomes as mentioned above.

    Some fringe benefits need to be reported on payment summaries. As the employer, if the value of certain fringe benefits is more than $2,000 in an FBT year, you must record that amount on your payment summary.

    For more information please contact the Australian Tax Office

    Source: http://www.ato.gov.au/General/Fringe-benefits-tax/In-detail/Fact-sheets/FBT-and-Christmas-parties/?default=&page=2