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If you are a foreign resident taking up employment in Australia it is strongly recommended that you seek expert advice on your Australian Taxation obligations. Expatriates working here will usually be liable for income tax on their Australian sourced income. This not only includes wages and salaries, but also interest and dividends that have their source within Australia.

Whether you are a resident for Australian income tax law will depend on your circumstances and this needs to be reviewed on a case by case basis.

If you are required to pay Australian income tax, it is important to note that the Australian tax year concludes on 30 June, and you will need to lodge an income tax return by 31 October. If you engage a tax agent or accountant they are eligible for lodgement extensions.

There are also a number of considerations that an expatriate needs to understand when negotiating their employment contract and also to legally minimising their tax. These include (but are not limited to):
Certain types of benefits can be "salary packaged" and result in significant tax savings. The two most common ones available to expatriates are the living away from home allowance (LAFHA) and motor vehicles. The LAFHA is designed specifically for expatriates to compensate for the additional costs of moving residency and provides for a tax break for food and rent. Motor vehicles can also be packaged and can often result in less tax being paid.Expenses incurred in deriving your income can also be claimed. For example depreciation on your notebook, stationery, internet and professional subscriptions can often be claimed and this will in turn reduce your taxable income. It is good practice to retain receipts for all items of expenditure that you would like to claim as a tax deduction. There are harsh penalties if you get it wrong.There are also a number of tax offsets or rebates that can be claimed to help reduce your tax. You will need to consult a tax expert to assist you with their eligibility.Australia also has a compulsory superannuation system, whereby your employer is required to contribute a percentage of your income into an Australian registered superannuation fund. There are some limited exemptions to this for expatriates, but if you find your employer making these contributions you can claim these back if you were to permanently leave Australia.

The key Australian tax rates for 2011/12 are outlined on Australian Tax Website http://www.ato.gov.au/.

Greg Newbury is the director and partner at Accru Felsers chartered accountants and business advisers in Sydney. Accru Felsers specialize in international tax for German subsidiaries in Australia and their staff who have relocated here. If you would like assistance with your tax affairs, please contact Accru Felsers on 02 8226 1655.

Accru can provide you with expert advice on business accounting, tax, audit, business management, outsourced accounting, international tax, financial planning and litigation support. Keeping this in mind, as a chartered accounting firm catering to every size and type of business, no job is too big or too small. Their business in Australia is based on "putting people first" and that is their affirmed point of difference.

NOTE: The key Australian tax rates for 2011/12 are outlined in this Tax Data Card produced by Accru Felsers Chartered Accountants on their website.

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You have made the decision to hire a bookkeeper. Congratulations because now you will have more time to focus on making more money in your business.

So let's make sure you get your money's worth! Here are 7 things you should do when you start working with a bookkeeper.

1. Share Your Vision, Share You

Tell your bookkeeper why you got into business to begin with. Tell him/her about your product or service. Tell him/her what you feel separates your company from the rest of the pack. Share with him/her your 5 year vision such as how much money you want to make in your business and your plan to introduce new products/services.

The more your bookkeeper understands your vision, the more s/he will feel like a member of your team. That means your bookkeeper will go the extra mile to help you and make life easier for you.

2. Get in touch with the money side of you

Your bookkeeper needs to know how you have dealt with your books in the past. Think about your answers to these questions and then discuss your answers with your bookkeeper:

Have you ever tracked your business or personal expenses? Or does the thought of doing that make you feel nauseous?If you have tracked your revenue and expenses, how often do you track it?Does dealing with your money overwhelm you? Has it been hard to deal with money in the past?Are you a details person? Or do you just want to know the bottom line?

3. Tell your bookkeeper how you want your financial information explained to you.

Let's assume it's now time to review your profit loss report for the quarter. Do you want the report emailed to you? Do you want it in an excel spreadsheet? Do you not want to look at all of the numbers and do you just want the bottom line? Do you want your bookkeeper to come to your office and talk to you about how your business is doing?

Also decide the point where all of this financial information gets too overwhelming. In other words, you need to tell your bookkeeper how much info you want and how you want to communicate.

4. Protect yourself

Your bookkeeper will need access to your financial information such as your credit card statements and bank account statements. Will you give your bookkeeper online access or will you just mail him/her duplicate statements?

Here's the skinny. Most bookkeepers would prefer online access so they have instant access to your financials. You're probably wondering how safe this is. This is where the trust factor comes in. It's very important to get 2 or 3 references before you hire a bookkeeper. I would also consider doing a background check. Some bookkeepers have employees as well, and I would ask your bookkeeper if they do background checks on their own employees and what systems they have in place to protect you.

Many bookkeepers also like to get the physical copies of your receipts and invoices paid. So how will you get them to your bookkeeper? By mail (could get lost), by FedEx (tracking number is good), by fax? Will you drop them off or will s/he come to your office to pick them up?

Remember, just because you hire a bookkeeper doesn't mean you stop looking at your credit card statements. Continue to monitoring them to make sure nothing funny is going on.

5. Other bookkeeping duties

Do you want your bookkeeper to pay bills? Sign checks? If you do, I recommend your bookkeeper email you on a weekly basis the bills they pay and the checks they write so you are aware of what's going on. You can also have an agreement that they won't pay bills over a certain dollar figure.

6. Introduce your bookkeeper to your accountant so they can better serve you

The better the relationship your accountant has with your bookkeeper, the better life will be for you. It's a great way for you to have a check and balance system on your bookkeeper. Tell your CPA about the services that bookkeeper will provide and ask your CPA to periodically evaluate the bookkeeper's work.

Have a conference call or face to face meeting with your accountant and bookkeeper at least twice a year. Do a review of your financial statements together. Make sure that your CPA will be able to work with the software that your bookkeeper uses.

7. Pricing

Some bookkeepers offer hourly rates while others offer monthly packages. Identify the amount you can afford fevery month, and then tell your bookkeeper to notify you when you have reached your monthly limit. And make sure you are not paying for services that you really don't need.

Have your bookkeeper teach you how to run a few simple reports. You don't have to be a bookkeeping ninja but it makes sense not pay for something that is simple to do. The first report that I recommend you learn how to do is your profit/loss report. It's always good to know how your business is doing from a revenue, expense, and profits perspective.

Bookkeepers are in a pretty commoditized business. Because of this, some will enter into the gray area of giving broad financial, legal, tax, and insurance advice. Although they are trying to look out for your best interest, make sure to get a second opinion from your tax, legal, or financial professional.

Justin Krane is a certified financial planner who shows entrepreneurs how to merge their money with their lives and business. Go to http://kranefinancialsolutions.com to receive your free Krane Financial Planning Toolkit -- great interactive tools which help you manage your business finances along with resources to help you make more money in your business.

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