by Jules Breese | May 23, 2014 | Biz News
End of financial year is a time many businesses dread because it means additional time spent ensuring their accounts are up to date and in order. Whilst time is critical and you want to be spending as much of it as possible building the business or with your family it is important that you prepare for the June 30 deadline.
Do make time with your advisor or accountant to discuss how to make the most of your tax position to help you get ahead. They can help you estimate your likely tax position and provide strategies that work for your business, and give you time to implement them.
Note: the recent Federal budget announcement may affect small business, so be sure ask about its impact on future financial years.
Here are 8 quick tips to help ease the 30 June burden.
(Please note that these tips apply to small businesses with less than $2 million annual turnover).
- Be certain to get your super deductions. Even though superannuation doesn’t have to be paid until 28 July, paying employee and personal contributions by 30 June will allow time for processing delays and getting valuable deductions this year.
Note: Superannuation is only deductible when paid therefore it must be cleared through your bank account, received and recorded by the employee’s superannuation fund prior to that date. Be prepared; pay early.
- Pay expenses in advance. If your cash flow allows, consider paying recurring expenses in advance, Items such as insurances, interest, rent, conference fees, subscriptions, and travel costs. Using credit cards to pay for deductible expenses will earn you the deduction this year, even if you don’t pay for it until next year.
- Defer income: If you expect your company tax bill will be higher this year than next year, you may benefit from deferring income to next year and accelerating deductions into this year.
Home Office Expenses. If you operate your business from home, remember to claim deductions for rent, insurance and utilities.
- Spend and only if you need to. Consider replacing low-cost equipment or purchase new tools and computers soon before 30 June to get the full tax benefit now.
- Write off bad debts. To deduct bad debts, the ATO requires you to write it off while it still exists, prior to 30 June. Review your accounts receivable with your accountant or bookkeeper to determine whether a deduction qualifies before the deadline.
- Check your assets and inventory. Consider writing down or writing off obsolete stock. Then think about revaluing the remaining stock using one of three methods: cost price, market selling value or replacement value. Choose the method that produces the lowest stock value; if the value of closing stock is less than the value of your opening stock, you may receive a deduction. When the reverse occurs, you may generate income.
- Repay any borrowings. If you, a family member or an associate have borrowed money from your business, you should ensure that the company charges the appropriate interest and consider making the minimum required repayments before the end of the financial year.
Note: Failure to do so may result in the entire amount of the loan being treated as taxable income, causing you to be taxed personally at rates of up to 46.5 per cent.
Use expertise not guesswork.
by Jules Breese | Feb 20, 2014 | Biz News
This post comes with a ‘warning’ and reasons why you should not pay your bills late from March 14.
New credit laws come into play mid March 2014 so everyone will need to pay their bills on time or run the risk of a bad credit rating that will mark you for 5 years!
Fur further details on how these laws will change please refer link below.
http://www.arca.asn.au/focus/for-consumers.html
To keep on top of things here is a great little APP developed by some local Aussie guys.
https://getpocketbook.com/
by Jules Breese | Jun 12, 2013 | Women & Diversity
I have recently become a certified assessor with WEConnect International, a corporate-led non-profit that helps build sustainable communities by empowering women business owners to succeed in local and global markets. Since 2009, WEConnect International has provided business education, certification, and business connections to companies based outside the United States that are at least 51 percent owned, managed and controlled by one or more women.
We are seeking new corporate partners (locally and globally) and women in business who wish to be certified and have access and opportunities to compete in a global supply network. To comply the business must be meet the certification eligibility as outlined below:
- 51% owned, managed and controlled by one or more women
- Operate a legally registered business in any sector
- Have the capacity to sell to large corporations and/or the ability to scale operations
- Growth oriented
Certification assures corporate buyers they are purchasing from a female supplier.
WEConnect International corporate members represent $700 billion in annual purchasing power and are true pioneers in inclusive sourcing and global supplier development. If you wish to find out more information click here: http://weconnectinternational.org/en/get-certified
by Jules Breese | May 1, 2013 | Biz News
Click on link to read Media Release
Workers Compensation Changes
by Jules Breese | Mar 3, 2013 | Biz News
All companies need to regularly reconcile their general ledger (GL) accounts as a key function of their accounting. Given the time and effort spent on reconciliations it is critical that the process is efficient and effective. We cover the important principles of reconciliations as well as key focus and risk areas to be aware of.
There have been many instances where account postings are not processed correctly which may result in ineffective year end reporting and increased costs to the company for their external accountant to fix. Whatever your size or structure, it is recommended to appoint an independent reviewer.
The reviewer is responsible for documenting the process and covers the following main areas:
- Providing a high level review to ensure that issues are appropriately identified and addressed.
- Looks for the potential ‘missing’ reconciliation items
- Review of creditor and debtor status and potential recovery or write-offs
- Review the GL account history
- Check directors loan and other loan accounts i.e. bank loans and HP arrangements
- Look to identify accounting process inefficiencies.
- Educate those involved about the transactions and accounts
The frequency of reconciliations will depend on the volume of transactions and accounts with high volume transactions, such as bank accounts, may need reconciling on a weekly or monthly basis. Other accounts with fewer transactions, such as fixed assets, may only need reconciling quarterly. In these instances, we recommend that the accounts be reviewed on a quarterly basis and before preparing the BAS reports.
Example Risk areas
- IT systems can act as a ‘black box’ for some transactions or the implementation of new systems which may not be complete.
- Over reliance on accounting staff can leave the business exposed if they leave. Ensure processes and information on the transactions are documented to enable knowledge sharing.
- Suspense accounts entries must be reviewed and cleared monthly.
- Excessive use of manual journals, particularly those between critical accounts, can be high risk, as they could be hiding fraud.
- Effective reviews should be conducted at senior level or engage an independent audit reviewer. Companies should not place all reliance and trust on the junior level or book keeper.
- Depending on size of the business effective internal controls can be implemented to reduce the risk of something going wrong. Segregation of duties such as accounts payable and accounts receivable is also important so one person is not doing all.
