The Essence of Business
The reason we teach accounting is to help people understand business. When you understand the elements of accounting, the essence of business becomes clear. It’s much more than cash in, cash out. We convey that essence in a diagram called: The Value Cycle. This is how business works: The business raises funds from its shareholders […]
10 Tips for Getting Paid on Time (or At All)
1. On average, debtors pay two weeks late. If you want to get paid in 30 days, make your standard terms 14 days. 2. Get paid upfront! Even if not your standard terms, never turn down an offer of early payment. 3. Make sure all necessary details are on the invoice, the goods or […]
FBT Year-End Action Points
31 March heralds the end of the 2016/2017 Fringe Benefits Tax (FBT) year. While it will generally fall to your Accountant to: -> Determine whether a fringe benefit has been provided by you to an employee or their associate (e.g. spouse) -> Determine whether an FBT exemption applies. -> Determine the taxable value of your fringe […]
GST on low value imported goods
Did you know there are proposed amendments currently before parliament that may affect overseas businesses with an Australian GST turnover of A$75,000 or more? From 1 July 2017 overseas businesses may need to register for GST, charge GST on imported goods valued at A$1,000 or less that they sell to consumers in Australia, and pay […]
Easier GST reporting for food businesses
Many small food retailers buy and sell products that are both taxable and GST-free. Depending on the point-of-sale equipment they use, identifying and recording these sales can be difficult. To easily work out the amount of GST you need to pay at the end of each tax period, we have designed a series of simplified […]
Cafes, restaurants, hair and beauty salons on the ATO’s radar as it steps up cash economy fight
An estimated 400 restaurants, cafes and hair and beauty salons will get a visit from the Tax Office this month, as part of the agency’s continued focus on the illegal cash economy. The ATO has in recent years stepped up audits of small businesses in high-risk industries, which it suspects may be taking illegal cash-in-hand […]
SMSF Association and ATO announce strategic partnership
The SMSF Association and Australian Tax Office (ATO) have announced a three-year strategic partnership, effective 15 February 2017. In a statement of intent released today, the Association and ATO outlined their intentions to work together to ensure effective regulation and integrity of the SMSF sector. SMSF Association Managing Director/CEO Andrea Slattery says the partnership is […]
Incorrect R&D claims in the ATO’s sights
The Australian Taxation Office (ATO) and Department of Industry, Innovation and Science (DIIS) are continuing their joint efforts to curb the incorrect use of the Research & Development (R&D) Tax Incentive program with the release of a further two taxpayer alerts. Speaking on behalf of the ATO, Deputy Commissioner Michael Cranston said that these new […]
INSTANT ASSET WRITE-OFF
With a sunset date of 30 June 2017, small businesses may wish to start considering bringing forward any planned asset investments to the next few months – particularly in this current low interest-rate environment. Up until 30 June 2017, Small Business Entities (SBE’s) can claim an immediate write-off for the acquisition of most depreciating assets […]
What penalty cut rates mean for you?
HOSPITALITY and retail workers are in mourning, small business owners are cheering, and a whole lot of us have been left pretty confused after the Fair Work Commission decided to slash Sunday penalty rates. The FWC handed down its long-awaited decision today that will affect workers, employers, and consumers alike. If you’re a double-time-loving waiter, […]