What is PSI is a common question for a sole trader, independent contractor, or consultant who earns income mainly from their personal effort, personal skills, or personal services. Personal Services Income (PSI) is income produced mainly, meaning more than 50%, from your personal efforts or skills, rather than from selling goods, using an income producing…
Month: May 2026
What Is Professional Indemnity Insurance and How Should It Be Recorded in Your Books?
What Is Professional Indemnity Insurance and How Should It Be Recorded in Your Books? Professional indemnity insurance is insurance cover that helps protect a business if a client claims they suffered financial loss because of a mistake, negligence, omission, breach, or advice provided through a professional service. For many businesses in Australia, the challenge is…
What Is Liquidation? Early Bookkeeping Warning Signs Your Business May Be in Trouble
What is liquidation is a common question for a business owner who is worried the company may no longer pay its debts on time. Liquidation is the process of winding up a company, reviewing the company’s financial affairs, selling the company’s assets where possible, and using available money to pay creditors.For many Australian businesses, the…
What Is HECS‑HELP and How Should It Appear in Your Payroll and Bookkeeping System?
What Is HECS-HELP and How Should It Appear in Your Payroll and Bookkeeping System? It is a practical payroll and bookkeeping question for Australian employers because Higher Education Contribution Scheme Higher Education Loan Program (HECS-HELP) debts affect Pay As You Go (PAYG) withholding, but they should not be recorded as a normal business loan, staff…
