If you’ve ever looked at your financial reports and found yourself wondering what EBITDA and net income really mean, you’re not alone.
These two terms show up often in financial statements, but they tell very different stories.
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortisation. In simple terms, it gives you a picture of how well your business is performing from an operational standpoint, before any financial decisions or accounting adjustments come into play.
Net income, however, is the final figure after all expenses, taxes, and interest are deducted. It’s the number that reflects your actual profit and is typically what shows up on your tax return.
Let’s look at some examples. Say you run a small marketing agency. EBITDA would reflect your revenue from client projects minus regular operating expenses like software subscriptions, staff wages, office rent, and utilities. It would not factor in interest on a business credit card or depreciation on your office equipment.
Net income, however, would include those items, giving you a more comprehensive view of your true profit.
Or take a retail shop owner who took out a loan for a shop renovation. EBITDA would show how profitable the store is from sales after paying suppliers and staff, but net income would show the impact of repaying that loan and the wear and tear on the new fit-out.
Both numbers are useful, but they serve different purposes. EBITDA is often helpful for tracking operational health and comparing performance across time or other businesses, while net income helps you prepare for tax season and plan for reinvestment or withdrawals.
If these numbers still feel unclear or you’re not sure which one to pay attention to when making decisions, we’re here to help. We’re bookkeeping experts who help small business owners get clear around their numbers so they can scale and grow with confidence.
There’s no shortage of financial advice out there for small business owners especially with so much of it circulating on social media. You’ve probably seen the posts that say you should invest more, save less, raise your prices, hire faster or the opposite.
The truth is, not every tip applies to every business. What works for one may not work for another, and discernment is key.
We work with business owners from all walks of life, and we know that thoughtful, personalised strategy is what makes a real difference. Numbers are the foundation, and when you use them with intention, you make smarter choices ones that actually serve your business long-term.
If all the advice out there has you feeling a bit unsure about what actually applies to your business, just reach out. We’ll help you sort through the noise and focus on what really matters for your numbers.
If your business has a busy season and a slower one, you know the financial highs and lows can feel intense. Whether you’re preparing for peak months or navigating the quieter times, good planning makes all the difference.
Here are some financial tips to help you manage your seasonal cash flow and set your business up for year-round stability:
We help businesses from all backgrounds, shapes, and sizes. Whether you’re just getting started or scaling to the next level, numbers are the language we speak and we use them to help you build clarity, strategy, and stability in your business.
If you’re ready to get clear on your cash flow and plan with more confidence, reach out. We’d love to support you.
From 1 July 2025, a key change to Australia’s tax laws will take effect: you’ll no longer be able to claim a tax deduction for interest charges imposed by the ATO—specifically the General Interest Charge (GIC) and Shortfall Interest Charge (SIC).
This change was passed by Parliament on 26 March 2025, and it could significantly impact how you manage any outstanding tax debts with the ATO.
Here’s what you need to know and how to prepare.
Up until now, if you owed money to the ATO and were charged interest, that interest was tax-deductible. From 1 July 2025, that’s no longer the case.
You’ll still be charged interest on unpaid or underpaid tax, but you won’t be able to claim it on your tax return—even if the amount is substantial.
However, in some situations, the ATO may still choose to remit (waive or reduce) these charges, especially where there are fair and reasonable circumstances behind the delay.
Applies when you pay your tax late
The interest compounds daily until the debt is paid
Current rate (Jan–Mar 2025): 11.42%
Applies when your self-assessed tax return is incorrect, and you owe more after the ATO adjusts it
Applies from the due date to the date the amended assessment is issued
Current rate (Jan–Mar 2025): 7.42%
Once your assessment is amended, the GIC kicks in until the balance is cleared.
If you’ve been treating the ATO like a flexible payment option for your tax obligations, this change makes that approach more expensive. Without the ability to deduct interest charges, your overall tax bill could be higher.
If you have ATO debt, it might be time to rethink how you manage it. One smart strategy is to speak to your bank or financial advisor about taking out a loan to cover the tax debt.
Why?
Interest on bank loans is usually tax-deductible
Bank rates are often lower than the ATO’s GIC rate
You gain better predictability and control over repayments
This change means the ATO will likely no longer be the cheapest option when managing cash flow.
Check if you have any existing ATO debt
Review any current payment plans or tax shortfalls
Talk to us about strategies to reduce your exposure before 1 July 2025
Consider refinancing options with your bank or broker
We’re here to support you through these changes. If you have an ATO debt or want to explore better options, get in touch. Let’s talk about the best way to manage your tax payments and avoid unnecessary costs.
There are several important updates to superannuation coming into effect from 1 July 2025. These changes will impact how employers handle super contributions, parental leave pay, and end-of-financial-year (EOFY) planning. Here’s a straightforward guide to help you prepare.
From 1 July 2025, the Superannuation Guarantee (SG) rate will rise from 11.5% to 12%. This means employers will need to contribute more to their employees’ superannuation funds based on their ordinary time earnings.
Timing matters: The new 12% rate applies to any pay run that is paid on or after 1 July 2025, even if the pay period ended in June.
Payroll update:
If you’re using Xero, make sure you’ve selected the Statutory Rate option. This ensures the system will automatically update to 12%.
Salary packages:
Review employee agreements, especially if they’re on total remuneration (super-inclusive) packages.
Source: ATO – How much super to pay
Starting 1 July 2025, the Government will begin paying 12% superannuation on Parental Leave Pay.
These contributions will be administered by the ATO.
Super will be paid as a lump sum into the recipient’s nominated super fund after the end of the financial year.
Source: ATO – Superannuation on Parental Leave Pay
Although SG contributions for the June quarter aren’t due until 28 July 2025, they must be received by the employee’s super fund by 30 June in order to claim a tax deduction in the 2024–25 financial year.
It’s not enough to process the payment—it must be cleared into the fund.
Using the ATO’s Small Business Superannuation Clearing House (SBSCH)?
Make sure payments are submitted by 6:00pm AEST, Friday 13 June 2025 (giving a safe buffer before the official cut-off on 15 June).
Using another super clearing service (like Xero Auto Super)?
Check their EOFY processing cut-offs, as they may differ.
Thinking of paying a lump sum or advance contribution? Speak with your tax adviser before proceeding.
ATO reminder: “To claim a deduction, your employer contributions must be received by the employees’ super funds by 30 June, even if you use the SBSCH.”
From 1 July 2026, employers will be required to pay super at the same time as wages are paid, rather than quarterly.
This change will improve transparency and ensure employees receive their super more regularly—but it will mean changes to your current payroll process.
Begin reviewing how you currently handle super payments.
Talk to your bookkeeper or payroll software provider about upcoming changes.
Start planning ahead to avoid last-minute stress.
If you need help reviewing your payroll setup, checking salary agreements, or planning your EOFY super contributions, we’re here to support you every step of the way.
Get in touch with our team to stay ahead of these changes and keep your business compliant.
We’re here to talk about something many business owners avoid… pricing.
If your profit margins feel too tight, your revenue isn’t matching your workload, or you haven’t reviewed your rates in over a year… it might be time for a pricing adjustment.
Here are a few tips to help you rethink and refine your pricing model, without the stress:
1. Review your actual costsStart with your numbers. Look at your current expenses (both fixed and variable), tools, time, and team. Are your current prices covering your costs and your profit goals? If you’re always playing catch-up financially, your pricing might be part of the issue.
2. Factor in value, not just time. Your pricing should reflect the value of the results you provide not just the hours you spend. If your work saves clients time, stress, or money, price accordingly. Don’t downplay your impact.
3. Don’t forget the “extras”. Think about client communication time, admin work, software, revisions, and scope creep. These things add up and should be built into your rates.
4. Communicate your pricing with confidence. If you’re planning to increase rates, give clients plenty of notice and clearly explain the value they’re receiving. Transparency builds trust and confidence sells.
5. Test before you fully commit. Try your new pricing with new clients first, or offer tiered packages to give people options. This gives you room to gather feedback and refine your model.
Thinking about changes to your pricing? It’s starts with real data.
We help business owners like you review your numbers, clean up the books, and ensure your financials are accurate so you can confidently adjust your pricing with the full picture in mind. We make sure your books are up to date and your pricing is backed by real insights.
Most business owners create a budget once, feel good about it, and then don’t look at it again until the following year. But if you’re not reviewing your budget regularly, it’s probably not working as well as you think.
Business isn’t static, prices change, revenue shifts, expenses creep in, and unexpected things pop up. So your budget needs to adjust with you. Here’s how to check if your budget is still working and what to do if it’s not:
Step 1: Look at your actual numbers
Open your Profit & Loss report and compare the last 3–6 months of real data to what you originally planned for.
For example, you might’ve budgeted $200/month for software but now you’re spending $325. Or you expected to bring in $8k/month in revenue in a particular service but you’re averaging closer to $5,500. That’s a clue something needs adjusting.
Step 2: Spot what’s changed
Have you added a new team member? Started a subscription you forgot to budget for? Maybe you’ve invested more into marketing or ads than planned.
Changes are normal, but if your budget doesn’t reflect them, it can throw off everything from cash flow to tax planning.
Step 3: Reconnect it to your goals
Your budget should help you move toward your goals not just track what you did spend. If your focus is growth, is your spending aligned with that? Are you investing in the right things?
Do your numbers support your goals for upcoming launches, promotions, or marketing pushes during your busier times?
If your books are messy or your reports don’t make sense, it’s nearly impossible to review your budget accurately. That’s where we come in.
We’ll help you clean up your books, get accurate numbers, and walk you through how to review your financials with confidence. Contact us today to learn more!
When managing your transactions in Xero (or any accounting software), it’s important to understand whether to void or delete a transaction. The right choice can help you maintain accurate records and avoid potential issues down the line. Here’s a breakdown:
Examples:
Spending too much time figuring out Xero and bookkeeping when you should be growing your business and focusing on your clients? Let us help! We can take care of your finances so you can focus on what matters most!
Running a business is a lot of work, but there are ways to make things easier! One of the best ways to save time and reduce stress is by automating parts of your business finances. Here are a few things you can automate:
Automation helps keep things organised, reduces errors, and gives you more time to focus on what really matters! Need help keeping an eye on the details of your finances? That’s what we’re here for! We’ll keep you organised and informed and ensure you have clarity in your numbers.
Managing your business finances can be overwhelming, but breaking it down into smaller, manageable tasks can make all the difference.
Here’s a quick guide to the essential bookkeeping tasks you should tackle monthly to keep everything running smoothly and your finances in check:
Staying on top of these monthly tasks will help keep your finances organised and make it easier to make informed business decisions.
If you need help or just want to make sure your bookkeeping is in tip-top shape, we’re here for you!
Running a business can be incredibly rewarding—but let’s face it, managing every detail on your own can quickly lead to burnout. With 2025 just around the corner, it’s time to adopt a game-changing strategy: delegation.
Delegating tasks isn’t about giving up control—it’s about focusing your energy on the things that matter most while empowering others to handle the rest. Here’s how delegating like a boss can help you grow your
business in the coming year.
1. Focus on Your Zone of Genius
As a business owner, your time is precious. When you’re buried in admin work or chasing overdue invoices, you’re not spending time on activities that grow your business. By delegating tasks like bookkeeping, payroll, or scheduling, you free yourself to focus on what you’re best at—whether that’s building client relationships, creating new products, or developing strategies to scale your business.
2. Build a Team You Can Trust
Delegation starts with finding the right people. Whether you hire employees, contractors, or outsource to professionals, choosing skilled individuals who align with your goals is key.
For example, hiring a professional bookkeeper to manage your finances ensures your accounts are accurate, compliant, and ready for tax time—giving you peace of mind and one less thing to worry about.
3. Automate and Delegate Repetitive Tasks
Not everything needs a human touch. Repetitive tasks like data entry, invoice reminders, or tracking expenses can often be automated with the right tools. Using software like Xero or QuickBooks streamlines your processes, and when paired with a bookkeeper, ensures nothing falls through the cracks. It’s delegation and automation working hand-in-hand for maximum efficiency.
4. Learn to Let Go
For many business owners, the hardest part of delegation is letting go. You’ve built your business from the ground up, and handing over control of certain tasks can feel daunting. But micromanaging isn’t sustainable—and trusting others to take ownership of tasks is a surefire way to grow. Start small by delegating tasks you’re not passionate about or that don’t require your unique expertise.
5. Track Progress, Not Details
Delegating doesn’t mean you stop paying attention—it means you stop doing everything yourself. Check in regularly with your team or service providers, review progress, and stay informed without being bogged down in the day-to-day details. For example, when you work with a bookkeeper, they’ll handle the nitty-gritty of reconciling accounts and lodging BAS, while keeping you updated with key financial insights and reports.
6. Reinvest Your Time in Growth
The biggest benefit of delegation is the time it gives you to focus on growth. Whether it’s expanding your product line, entering new markets, or simply taking a breather to recharge, delegating tasks creates space for you to dream bigger and act on those dreams.
Delegate Like a Boss in 2025
Delegation isn’t just a time-saver—it’s a growth strategy. By trusting others with the tasks that don’t need your personal touch, you’ll create more opportunities to focus on the big picture.
If bookkeeping, payroll, or financial management is one of those tasks you’re ready to hand over, we’re here to help. Let’s work together to set your business up for success in 2025 and beyond!
Managing a business is no easy task, and bookkeeping can often feel overwhelming. Between balancing day-to-day operations and planning for the future, keeping your financials in order can quickly fall to the bottom of your to-do list.
The truth is, many business owners could benefit from professional bookkeeping support—but some need it more than others. Here are four types of business owners who will find hiring a bookkeeper a game-changer:
1. The Time-Poor Business Owner
You’re juggling all the hats—manager, marketer, customer service, and more. Bookkeeping is just one more thing on your never-ending to-do list, and it rarely gets the attention it deserves.
Professional bookkeeping takes the load off, freeing up your time to focus on growing your business and doing what you love. Imagine spending less time in spreadsheets and more time with clients or building your brand.
2. The Rapidly Growing Entrepreneur
Your business is booming, and the growth is exciting—but keeping up with the financial side is starting to get messy. Maybe your transactions have doubled, and you’re drowning in paperwork, or you’re struggling to track cash flow as new expenses pile up.
A bookkeeper can bring order to your chaos by streamlining processes, managing your financials, and helping you stay on top of your expanding responsibilities. They’ll also ensure you’re prepared for BAS lodgements, payroll obligations, and tax time.
3. The Tax-Time Panicker
If you’re the kind of business owner who scrambles to pull together receipts, invoices, and bank statements at tax time, you’re not alone. The stress of last-minute organisation can take a toll on you and your business.
A professional bookkeeper keeps your financials tidy year-round, so tax time is smooth and stress-free. You’ll save time, reduce errors, and have peace of mind knowing your records are up-to-date and compliant.
4. The “I’m Not a Numbers Person” Owner
Let’s face it—not everyone is comfortable with numbers, and that’s okay! If bookkeeping feels confusing, frustrating, or just plain boring, you don’t have to struggle through it alone.
Bookkeepers are experts at organising financials, spotting trends, and keeping things running smoothly. By outsourcing, you can hand over the numbers to someone who loves them, freeing you to focus on the parts of your business that you enjoy most.
Why Professional Bookkeeping Support Makes Sense
Hiring a bookkeeper isn’t just about saving time—it’s about investing in your business. With expert support, you’ll gain:
Whether you see yourself in one of these four types or not, there’s no shame in asking for help. Bookkeeping is the foundation of a healthy business, and the sooner you get it under control, the easier managing your business becomes.
Need bookkeeping support tailored to your needs? Get in touch today, and let’s work together to keep your business on track!
We’re halfway through the financial year—how’s your bookkeeping looking? Staying on top of your numbers now can save you time, stress, and potential headaches later. With tax time just around the corner, now’s the perfect opportunity to make sure your books are in order.
Here are a few practical tips to help you stay organised and keep your business on track:
Reconciling your bank accounts, credit cards, and loans ensures your books match reality. It’s the best way to catch any discrepancies, missing transactions, or errors early, so you’re not caught off guard come tax time. If you’ve fallen behind, set aside time to catch up—or get a professional bookkeeper to lend a hand.
Take some time to review your Profit and Loss (P&L) and Balance Sheet. Are your expenses tracking as expected? Are your sales on target? The halfway mark is a great chance to identify trends, address any issues, and look for areas to grow or improve.
Keeping on top of receipts and invoices is key to staying compliant and organised. Make sure all your receipts are stored digitally (a quick photo will do!) and matched to the correct expense accounts. Don’t forget to review your outstanding invoices and follow up on any overdue payments to keep your cash flow healthy.
Double-check that your payroll records are accurate, including PAYG withholding, superannuation contributions, and leave entitlements. Any errors could lead to penalties or unhappy employees, so it’s better to catch and fix them now.
If you’re registered for GST, now’s the time to make sure your BAS lodgements are up-to-date. Check your GST codes and ensure all transactions are categorised correctly so you’re ready for the next reporting period.
Even though 30 June feels a while away, preparing now will make life much easier later. Review your asset register, think about pre-tax purchases, and get ready for Single Touch Payroll (STP) finalisations if you have employees.
If you’re not already using cloud-based software like Xero, MYOB, or QuickBooks, now’s a great time to start. These platforms make bookkeeping easier by automating tasks, offering real-time financial data, and integrating with other business tools.
Feeling overwhelmed or unsure? A professional bookkeeper or accountant can give you the support and advice you need to get your finances back on track and keep them running smoothly.
Final Thoughts
The mid-financial year is your chance to take stock and make sure your bookkeeping is in order before the end of the financial year. A bit of effort now can save you a lot of stress down the track.
Need a hand with your bookkeeping? Get in touch with us today, and let’s keep your business on the right track for the rest of the year!
We are a dedicated team of local Hunter Valley bookkeepers passionate about helping trade businesses to free up their time.
The Vault Bookkeeping Pty Ltd
It’s not enough to process the payment—it must be cleared into the fund.