Tag Archives: accounting for small business

Home / Posts tagged "accounting for small business"

Resolve Your ATO Reporting Obligations

 

tax accountant

 

Most salaried individual will have reporting obligations to ATO and pay income tax. In many cases, computing and reporting a person’s tax liability is not that difficult. Similarly, commercial establishments be it a company, partnership or sole traders, also need to report and pay various taxes. It is a well-known fact that the Australian tax laws are complex and this usually presents some difficulties for small and medium-sized business establishments. On one hand, small businesses do not have the financial resources necessary for employing full-time accountants. On the other, if they fail to meet their obligations under Income Tax Act, they could fall foul of the Australian Tax Office.

 

 

Activity Statements – An Essential Element of ATO Reporting

Every Australian business needs to register for an Australian Business Number (ABN) and a Tax File Number (TFN) for lodging its annual income tax returns and activity statements. If your business or enterprise has a GST turnover of $75,000 or more you must register for GST. The tax reporting to ATO is through Activity Statements and Income Tax Returns.

There are two types of activity statements that business owners need to complete. These are Instalment Activity Statements (IASs) and Business Activity Statements (BASs). IAS is used to report and pay amounts withheld from employee’s wages and salaries, PAYG Income Tax Instalments and FBT Instalments. BAS is used to report the following:

  • – Goods and Services Tax (GST)
  • – Pay As You Go (PAYG) income tax instalment
  • – PAYG tax withheld
  • – Fringe Benefits Tax (FBT) instalment
  • – Luxury Car Tax (LCT)
  • – Wine Equalisation Tax (WET) and,
  • – Fuel tax credits

Business owners will need to complete and lodge the BAS/IAS on a monthly or quarterly basis. Often preparation and lodging you activity statements timely and correctly can be a difficult and confusing process.

 

 

DSV Partners – Resolve Your Tax Obligations and Bookkeeping Woes with a Tax Agent in Sydney who has your best interest in mind

You can avoid stress and eliminate risks simply by being confident that your reporting obligations are sorted out and activity statements are lodged correctly.

 

When you require top-notch accounting services for your small business, you’ll need the services of an expert. This is precisely why many small businesses rely on DSV Partners for their accounting and tax-related requirements. Unlike other accounting firms, we invest a lot of time and effort towards understanding your business and financial goals. Knowing your objectives enables us to navigate the complex tax and regulatory laws that small businesses need to comply with. From maintaining your accounts accurately to providing you with optimised tax planning solutions, we do it all. For more information, call us at 02 9633 4893.

 

 

 

Image Source: Pixabay

Accounting For Small Business: What Can Trigger A Tax Audit?

accounting for small business
 

The ATO is always on the lookout for business which might be consciously cheating the tax system by claiming non-applicable deductions and credits or by underreporting its taxable income. A good thing is that it releases of a list of risks every year about what they will consider in their tax audits. When it comes to accounting for small business, business owners have to be aware of some warning signs that could invite an audit.

  1. Underreporting income: The ATO keeps track of businesses’ income each year. If it finds a major reduction in income in a particular year, it can order a tax audit to take a closer look at its finances. In many such cases, businesses are found to be underreporting their income to save tax money. In tax audits, ATO focuses on things like expenses claimed which are over the industry benchmark, capital gains and property transactions, among others.
  1. Over claimed entitlements: While it’s possible to write off certain business expenses, people take advantage of this and would illegally write off expenses by including expenses related to their hobbies and personal interests in business expenses. This is illegal and can invite a tax audit. Likewise, it’s also important to claim home office expenses correctly. A tax expert specializing in accounting services can help you claim such expenses so that you can qualify for deductions. In addition, it is important to lodge Business Activity Statement (BAS) in a timely manner.
  1. Excessive donations: The ATO keeps track of all the charity donations that a business makes each year. If you’ve made more than generous donations in a particular year, it can trigger an audit. So, ensure you keep all records and receipts of donations for any explanation needed at the time of claiming deductions.
  1. Disparity in numbers: Ensure you double check all the numbers in various forms before submitting. To avoid mathematical errors, it’s always recommended to let professional accounting services handle your taxes. Contact a tax agent who specializes in accounting for small business to file various forms. They will make sure that all the numbers add up correctly.

 

For more guidance and first-class accounting services in Sydney, don’t hesitate to contact DSV Partners today!

 

 

 

Image Source: Ben Hosking / Flickr

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

 

bookkeeping services

 

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!

 

 

 

Image Source: Pixabay

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!

 

 

 

 

Image Source: Pixabay

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!

 

 

Image Source: Pixabay