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Accounting and Bookkeeping Services: 3 Reasons Cash Flow Is the Lifeblood of Your Business

 

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Cash is king – especially when it comes to start-ups and small enterprises. Bookkeeping services can help you get accurate cash flow forecasts for your business. This will enhance your ability to foresee potential problems that may arise later on and enable you to make sound decisions for growth, progress and prosperity. Like oxygen for a business, cash flow forecasting prepared by an experienced tax accountant in Sydney eliminates the element of chance. Let’s have a look at a few reasons why you should discuss cash flow forecasting with your tax agent in Sydney right now.

 

  1. Visualizing your options: Cash flow forecasting will enable you to clearly see all the possible scenarios that could result from your business decisions in 2016. Cash flow forecasting, managed with the help of trusted experts who specialize in bookkeeping services and accounting for small and medium size businesses, can help you make critical decisions including:
  • – Product/Service price modelling
  • – When to hire more staff
  • – The right time for a new project
  • – When to change suppliers
  • – When change premises, and so on
  1. Saving time: Cash flow forecasting empowers you to take full financial control of your business. You don’t have to go through endless spreadsheets when a new business idea strikes your mind. With cash flow forecasting in place, all you have to do is test some statistics and equations to know if an idea is profitable. It takes away much of the guesswork!
  1. Planning growth: Though there are numerous ways you can grow your business, choosing the right one is often confusing. With cash flow forecasting, you can clearly see various feasible growth options and you can easily choose the one that fits your business the best. Furthermore, if you choose a trusted provider of accounting solutions and bookkeeping services, you can choose to do cash-flow forecasting at any stage in your business. If something has changed in your business and you’re not sure whether to continue or not, stop and simply take a closer look at your forecasted options.

It’s important to take an outside perspective and analyse your organisation’s cash flow. This is essential to identify opportunities for growth because you might be too busy to see such opportunities. So, what can you do about it? Take action right now! Call DSV Partners. Trusted accounting and bookkeeping services can deliver beyond your expectations!

 

 

 

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3 Rules for an Effective Financial Audit

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Financial audit is an important tool for business owners looking to achieve their objectives in the required time period. While performing a financial audit, an auditor is required to obtain an understanding of the company’s business and internal controls, an auditor will become aware of and recommend ways that the entity can improve its internal controls over financial reporting or profitability. The auditors’ are also required to preform certain procedures on company’s policies and procedures related to fraud prevention. Any suggestion from auditors will help improve the policies and procedure to prevent fraud. However, you’ll need to choose accounting services that not only specializes in carrying out an effective financial audit but also help you monitor the efficiency and effectiveness of such an audit. Apart from choosing the best accounting services, what steps you can take to enhance the effectiveness of such an audit? Let’s have a look:

 

  1. Commitment: As a business owner, you have to make sure that everyone in the organization, including the senior management, is fully committed to this critical process. Without the involvement, encouragement and support of everyone, a financial audit will just be a waste of time and money.
  1. Anticipate the needs of stakeholders: So, what do you think is the most important thing that most stakeholders want from a financial audit – information and more information. They need an assurance that the management has necessary and effective processes in place to achieve desired financial goals and manage significant risks in future. In addition, the financial audit team has to be responsive to the changing nature of risks and make sure that the strategies remain relevant in the present and future scenario.
  1. Keep it simple: While it’s true that financial auditors are well versed with all the technical jargon used in financial audit, most of the customers and staff working in an organization do not comprehend most of these terms at all. In order to get the point across, auditors should do everything in their hands to make the reports as simple as possible. If the auditors can take time to explain the meaning of technical terms, such as ‘high-risk’ or ‘significant deficiency’ early on, they have to spend much less time in answering a lot of questions from their audience later on.

For trusted financial audit services in Sydney, contact DSV Partners on 02 9633 4893 or email us at info@dsvpartners.com.au today!

 

 

 

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Accounting for Small Business: 3 Reasons to Value Your Business Now!

accounting for small business

 

Most of the business owners in Australia can’t answer a simple question: how much is their business worth? This is something that they only consider when they decide to sell their business. However, if you’re a budding entrepreneur in Australia, it’s essential to get an up-to-date valuation of your business regularly. Business valuation is an important step in optimizing accounting for small business. When you know the true value of your business, you can maximize your investment opportunities, make sound decisions, and attain financial security. Let’s have a look at a few reasons why you should consider valuation of your business if you haven’t already done so.

 

  1. Investment opportunities: If you know the actual worth of your business, you can make an informed decision whenever any opportunities for investment arise. In order to take full advantage of such opportunities, you have to make decisions quickly, and business valuation helps you do precisely that. Business valuation covers a number of areas, such as financial information, legal structure and the history of your business which can do wonders to attract potential investors and strategic partnerships for your business.
  2. Expansion opportunities: Not only business valuation can help you get the required funding from financial organizations, it will also provide you a precise benchmark for the growth of your business. In addition to good accounting for small business, business valuation provides you an additional tool to make strategic decisions and grow your business without wasting any time on unnecessary things. These services will also help you identify areas that need attention before you reach the desired level of expansion.
  3. Making your business future proof – As a visionary business owner, sometimes you have to consider difficult topics, such as legal disputes and personal losses, before they actually happen to your business. This is essential for future proofing your business and even personal life. You’ll need to address questions like who would run your business in your absence or who would know your business valuation and so on. Knowing up-to-date value of your business can help you streamline most of the legal proceedings.

 

At DSV Partners, we know the importance of business valuations and accounting for small business. We can help you implement some simple strategies aimed at increasing the value of your business. For more information, get in touch with DSV Partners today!

 

 

 

 

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How to Get the Best Out Of Accounting and Bookkeeping Services?

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As the season rolls around, it becomes important for one to start focusing on preparing tax returns. When working with an experienced tax agent in Sydney, you can expect a close relationship, where they work to ensure that your tax returns are filed on time, and in the right way!

 

 

How the best Accounting and Bookkeeping Services work?

Many of our client’s tell us about the countless hours they spend to collate their receipts and payments for the year. Good bookkeeping services provider can take the stress out of this process. Good records are first step in preparation of tax returns and determining deductions. As a lot of relevant information are available from books of accounts, if properly maintained. Let’s have a look at few practices that trusted accounting companies follow:

  • – Starting the process of information gathering early on is better for the company as well as the tax agent. This is because if any changes have to be made or additional information to be gathered, it can easily be done.
  • – This process of detailed information collection exists to ensure that all aspects of your business is covered in the tax return, so that you don’t get into any form of trouble later on, especially as your company scales up.
  • – This process might take a while- but it is absolutely necessary, as it guarantees the protection of your company at a later stage.

 

What you can do to help?

The best accounting solutions are those where all the expenses and income can be carefully tracked and claimed. Towards this extent, any tax agent in Sydney would require some documentation from you. Here are some of the things you can provide to your tax agent in Sydney:

  • – Receipts of expenditures/expenses
  • – Receipts from claims made by employees
  • – Previous tax returns
  • – Payroll
  • – Proof of income/grants/donations, etc.

The tax agent will collect all these, and create your tax returns from the same. This is the process that will be followed every single year, so it is a best practice for your company to make sure that all the transactions are recorded and are supported by invoices/claims.

Speak to DSV Partners (02 9633 4893) to know more about what else you can do to make the most of accounting and bookkeeping services.

 

 

 

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5 Bookkeeping Tips for Small Business

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Behind every successful business, there’s a trusted bookkeeper. No large or small company can function well, or succeed without organization and good bookkeeping services. Many businesses have underestimated the importance of bookkeeping and accounting solutions – but you should make sure that you don’t commit that grave mistake.

Here are our five tips for small business bookkeeping

  1. Be organized: This is the first and the most important step towards proper bookkeeping. You need to have the right processes in place to ensure that people follow the order in which things are to be done. This will make life easier for you, as everything will already be in the right place, for future reference, or when tax season comes rolling around.
  2. Use technology: There is no reason for you to stick to the old days of paper and pen. Technologically advanced bookkeeping services can make your business more efficient, and ensure that you don’t lose anything, ever!
  3. Plan and track your expenses: Every company needs to invest a particular sum of money for its growth and expansion. For better bookkeeping, plan every expenditure and investment. This will definitely help you during tax season, in claiming all the tax deductions and help your company be more transparent in its proceedings.
  4. Set aside money for taxes: We all know that we have to pay income tax and GST (if GST registered). So systematically put aside money for it. Delay in lodgement and payment of BAS/IAS and Tax Returns can incur penalties and interest charges from ATO. By putting aside money each month or when each bill is settled, it will sting you less when they are due.
  5. Record your deposits correctly: Businesses are likely to make variety of deposits during the year, from loans, to sales, to investment by business owners. If these are not accounted for correctly, you are leaving yourself open to pay taxes on money that is not income.

 

All this might sound complex- and it is. However, you can choose to get the assistance of DSV Partners – one of the most trusted providers of bookkeeping services and accounting solutions in Sydney, any time you want. Get in touch with DSV Partners, with any queries or doubts you might have.

Good Business Practices You Should Adopt in the New Financial Year

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Good business practice adds value to every business, in both good and bad times.  There are many benefits good business practice may bring to the business, including:

  • – The business is more likely to be profitable, have better cash flow and operate with less financial risks;
  • – The business may be better placed to respond to future challenges and opportunities
  • – The business may be easier to sell in future, and possibly at a better price
  • – The business may find it easier to access external finance, including bank finance, if needed.

Implementing good business practice involves identifying the critical tasks that must be done to keep the business in good shape, and having discipline to ensure that those tasks are carried out consistently.

The checklist below is to highlight good business financial practice that a SME can follow. The checklist is not a definitive, however this is intended to start you, the business owner, to think about the actions needed to put your business on the right track.

 

Strategic Financial Tasks:

  • – Set targets for financial performance.
  • – Review and analyse financial statements.
  • – Prepare cash flow forecast and budget.
  • – Review actual performance against budget.
  • – Review cash flow forecast with actual.

 

Financial Tasks:

  • – Have a good financial software.
  • – Enter data promptly and accurately.
  • – Review stock balance and reconcile to physical stock.
  • – Review receivable and payable.
  • – Reconcile banks.
  • – Reconcile GST.
  • – Reconcile other material balance sheet accounts like fixed assets, PAYG, superannuation, employee leave entitlements, equity accounts.

 

As a business owner, it is often difficult to align your priorities when it comes to bookkeeping, accounting and tax. It is usually not a top priority in mind. However a good business advisor and tax accountant in Sydney can help you keep focused on the growth. The tax accountants and bookkeepers here at DSV Partners will ensure that no benefit or documentation slips from your hands. Excellent business advice and meticulous record keeping will help you save thousands, and give your business a huge boost as well. For more information, contact DSV Partners today!

 

 

 

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The Importance of Finding the Right Business Adviser

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Chanakya (350 BCE – 275 BCE), a great Indian teacher, philosopher and economist, and the author of the ancient Indian political treatise, “Arthashastra”, said that a strong foundation is key to any successful business and listed seven pillars for an organization:

 

  • – The King or the Leader
  • – The Minister or the Manager
  • – The Country or the Market
  • – The Fortified city or Head office
  • – The Treasury
  • – The Army or your Team
  • – The Ally or your “Adviser”

 

The choices made by the leader will have a profound impact on the business- be it the choice of hiring a manager and team, market to operate in, or what business advisers to work with. Most businesses focus on hiring a good manager and team, but often forget the importance of a good adviser. Experienced advisers are generally well aware of the problems faced by small and medium size businesses, and they should be able to provide you expert guidance to resolve your business problems right away.

 

Most often, advisers are hired based on the price they quote rather than the value that they can add to the business. By choosing the wrong adviser, a business can face colossal impact on their finances. A recent example would be the case of Commonwealth Bank financial advisers or, in the past, the case of advisers in Enron Energy and Satyam Computers. In all the above cases the advisers/auditors were not acting towards the interests of their clients.

 

A good adviser should always be:

 

  1. Candid – willing to tell their clients “what they need to hear”, and not “what they want to hear”.
  2. Objective – able to hear the concerns of the business owners.
  3. Visionary – looking for new ideas to solve unique problems clients may face, rather than providing a “one size fits all” solutions.
  4. Informed – able to converse about the trends in your industry, latest developments, and share his knowledge for the benefit of your organization.

 

Remember, most importantly, a business adviser should be like a friend. He is the one whom you can depend on when problems arise. After all, a friend in need is a friend indeed.

 

DSV Partners is a suburban firm providing accounting solutions for small and medium size business across Sydney. We provide;

 

 

If you are looking for a trusted business adviser who is capable of taking holistic view of your business and provide an effective solution, please contact DSV Partners immediately! We eagerly look forward to working with you.

 

 

Tax Tips For 2016: Tax Deductions That You Are Entitled To

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It is that time of the year again where tax payers would be thinking what deduction they are entitled to and what records they should keep to support those deductions. It is easy to overlook some of the applicable deductions. For tax payers who want to avail the benefits of all applicable deductions available to them, it would be a good move to talk to a reputable tax accountant, like DSV Partners.

 

Here is a list of expenses which are tax deductible:

  • – Gifts and donations: You can claim a tax deduction for gifts or donations made to organisations with deductible gift recipients (DGRs) status. The amount of money gifted must be at least $2 or more.
  • – Home office expenses: If you are an employee and you require the use of your computer, phone or other electronic device for work purposes, you may be able to claim the cost of running your home office. If you work entirely from your home, you can typically claim the occupancy cost of your home office space as a tax deduction, which includes a percentage of your rent/mortgage, equipment and furniture.
  • – Income protection insurance: If you pay premiums for insurance against the loss of your income, you can claim a tax deduction for such premiums paid. However, you can’t claim life, trauma or critical care insurance premiums or insurance premiums paid out of your superannuation fund.
  • – Professional membership: If you pay for a professional or trade association membership fees as part of your work, you can claim the cost of membership paid as a tax deduction. This includes union fees if you’re a member of a trade union. If you prepay the fees for next year before 30 June you can claim tax deduction in your current year tax return.
  • – Expense to manage your tax affairs: You can claim fees paid to registered tax agent to manage your tax affairs for the year that you pay them. You can also claim the cost of travel; to the extent it is associated with obtaining tax advice.
  • – Mobile phone expenses: If you use your personal mobile or internet for work purposes, you can claim cost of this expense as well. However, you can only claim business/work related calls/usage. You will need to keep a record of 4 week representative period in each income year to claim a deduction of more than $50.
  • – Work related car expenses: People who use their personal car for work-related reasons, apart from driving to and from work, can usually claim fuel and maintenance costs as a tax deduction. As of 2016, these claiming methods have changed – you can either use a 12 week logbook or the cents per kilometer method. To be eligible for this deduction, you must own the car or lease the car. Moving from one job site to another, driving between offices is included for tax deduction.

 

If you need help with your tax return and deductibles, consider DSV Partners. We are a reputable accounting solutions firm based in Sydney that offers great tax and accounting services for our clients. Call us at 02 9633 4893 for more information about your income tax.

 

 

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Accounting for Small Business: Essential Australian Tax Breaks You Need to Know

accounting for small business

 

Are you running a small or a medium business? We know it can be rather difficult to keep up with all the tax breaks and incentives provided to small and medium businesses. However, as a company, you stand to gain a lot from these incentives and tax breaks- and you need to know about all the benefits you can reap.

When it comes to accounting for small business or medium businesses, here are some of the most important tax breaks you need to know about:

 

 

General Expenses

As long as an expense was incurred in the process of earning an income, it can be deducted from your tax. In Australia, there are two categories of general expenses you can claim: revenue expenses and capital expenses.

Revenue expenses are what you spend on day-to-day operations (like travel, wages paid, utilities, bank fees, etc). You can claim them the year they are incurred.

Capital expenses are expenses made towards assets that are long-term, such as buildings, computers, vehicles, etc. Capital expenses can be claimed at different rates, in different times, depending on the assets themselves.

 

 

Small Business Tax Deduction

The Australian government provides a deduction of $20,000 to small businesses, to encourage them to invest more in assets. A small business will be able to claim an immediate deduction for the cost of each depreciating asset that they purchase for less than $20,000 if the business’s revenue is less than $2 million, and when the business have purchased eligible assets for use of the company.

 

 

R & D Tax Incentive

The research and development tax incentive is to encourage companies to engage in R&D benefiting Australia, by providing a tax offset for eligible R&D activities. It has two core components which are:

  1. A refundable tax offset for certain eligible entities whose aggregate turnover is less than $20 million
  2. A non-refundable tax offset for all other eligible entities

 

Government Grants

There are a number of government grants offered by different wings. You can find out more about these by visiting the government website. Small businesses have a number of grants- for creating employment, or installing safety equipment.

If you’re unsure about what tax rebates you can claim, get in touch with DSV Partners – one of the most trusted Sydney accountants, immediately!

 

 

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Reasons to hire a tax accountant

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If you need to lodge a tax return, be it individual tax return or company tax return it is always a smart move to take help from a good and reliable tax agent in Sydney. It is an investment, which will provide good returns.
So, why should you think about hiring a tax accountant? Let’s consider the top three reasons.

 

  • – Complexity: Albert Einstein purportedly once said that the hardest thing to understand in the world is income tax. Most of us know nothing about Australian Tax Laws, which is very complex. Though ATO’s E-Tax has made life a bit easier for individual taxpayers who have salary income, but throw in salary sacrifice, employee share schemes, investment property, dividend income, it gets pretty messy. The same goes with business tax returns, when the directors withdraw money from the business, pay dividends, calculation of imputation credits, maintaining franking credit account, fringe benefits, depreciation and so on.
  • – Avoid risk of penalties: Tax Laws are changed and amended from time to time and it would be very difficult, if not impossible, for an individual taxpayer or business owner to keep track of those changes and what the tax implications of those changes may have. CPA/CA qualified tax agents are well versed with the tax regulations. The tax agent would be able to identify any tax savings that you may have left out. You will also be entitled to “Safe Harbour” protection from penalties, if you engage a registered tax agent to lodge your tax returns.
  • – Save time and money: At times, preparation of individual or company tax returns can be overwhelming. Working with a good tax agent, you can navigate the tax laws and save money. In addition, a good tax accountant will assist you with planning your financial and tax strategies. In the long run, having a good tax accountant will help you save more time and money. Not to forget, the cost of managing your tax affairs when hiring an external tax agent is a deductable expense where you are able to claim. If you do your tax returns by yourself, you may miss out on some deductions or rebates.

If you think that having a tax agent can lift a burden off your shoulders and put some money back in your pocket, get in touch with DSV Partners – the trusted tax agent in Sydney.

 

 

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