Many businesses fail to pay their superannuation on time. This can happen due to a number of reasons such as cash flow issues, having poor planning or simply because they are too busy to even think about it. Any experienced tax accountant in Sydney can tell you that if you’re late for your superannuation payments even by one day, you can miss tax deductions; you may have to pay hefty fees or you can even invite a tax audit. So, what are some key superannuation regulations? Let’s have a look:
- – Superannuation is paid to the employees once they earn $450 or more in a month.
- – For the year 2016-17, the superannuation obligation is 5% of OTE (Ordinary Time Earnings). You can get more information on OTE by visiting ATO site or by simply asking a good tax accountant in Sydney about it. OTE doesn’t consist of total employee’s earnings. For instance overtime payment is not included to calculate ordinary time earnings.
- – It’s mandatory for all employers from 1 July 2016 to pay their super guarantee liability using an electronic portal called ‘Superstream’. A tax accountant in Sydney who specializes in accounting and bookkeeping services can give you a detailed explanation of Superstream approved methods of paying super.
So, what can happen if you don’t meet your super guarantee obligations?
- You may be liable for a range of penalties or charges on top of the super guarantee charge. The penalties include:
- – Director Penalties: The directors of the company that fails to meet an SGC liability in full by the due date automatically becomes personally liable for a penalty equal to the unpaid amount.
- – General Interest Charges: If you lodge an SGC statement but don’t pay the charge by the due date, you incur as additional charge – the general interest charge (GIC). It accrues from the date your SGC is due up to the date you pay your SGC account in full.
- – Administrative penalty: If you pay less SGC than you should because you made a false or misleading statement, ATO can impose an administrative penalty. The base penalty amount can be up to 75% of the shortfall.
- – Other penalties such as Failing to keep records, Failing to provide an SGC statement when required and Failing to pass on a TFN may also be applied.
- If you’ve delayed your super payments, you won’t be able to claim tax deductions. This means that at the end of the financial year, you can expect a substantially higher income tax bill.
- If you fail to pay the minimum superannuation payment, it can result in an Employer Obligation Audit. This is normally done by the ATO to ensure that your business processes are compliant with the legislation.
As a trusted tax accountant in Sydney, DSV Partners can help you with top notch bookkeeping services and accounting solutions, and ensure that all the crucial payments are made well before their due dates. For more information, get in touch with DSV Partners today!
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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.
- 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
- 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!
- 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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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.
- – 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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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.
Juggling various responsibilities at the same time is what many business owners throughout Australia do. It’s tough enough when you have to manage the inflow of supplies and provide timely delivery to your clients. Looking after your employees and promoting your business will typically consume any time that remains. In this scenario, managing your finances can become quite difficult. But, it’s not something you can choose to ignore either. After all, accounts are the lifeblood of any business entity. If you don’t keep your books in perfect order, you won’t be able to tell whether your business is generating profits or running at a loss. And, when you need to prepare your tax returns, you could find yourself tied up in knots without proper financial statements. This is why many small and mid-sized businesses are utilising the services of tax accountants in Sydney.
Why and how to engage best accountants
Some business owners prefer hiring in-house accountants for maintaining their books. However, many small and medium-sized business establishments cannot afford to hire in-house accountants. For these entities, the service provided by accounting firms is nothing less than a boon. This is especially so when you look for quality financial accounts which assists in preparation of company tax returns.
Pick an accounting firm that is reliable and experienced. In particular, ensure that they:
- – Possess the relevant qualifications
- – Have ample experience in working for similar sized businesses to your own
- – Provide value for your Dollar
- – Have a good reputation
- – Have a meticulous eye for detail
- – Can manage all your accounting-related requirements and,
- – Can provide references of existing clients
Do You Need the Services of a Reputed and Cost Effective Tax Agent in Sydney?
When you require personalised and friendly accounting, audit, business advisory and tax services, it’s best to rely on a firm which can cater to all your accounting needs. DSV Partners is among the leading providers of audit, business advisory and tax accountant services in Sydney. We place great emphasis on all details. This helps us to understand the workings of your business perfectly. This meticulousness helps us come up with unique solutions to a myriad of problems. We specialise in preparing financial statement complying with the Australian Accounting Standards and helping our clients minimise their tax liabilities. Unlike other accounting firms’, we focus on becoming a part of the personal and business successes of our clients. Click here for more details on our accounting services.
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Business ventures typically need to keep a proper record of every financial transaction. This involves recording details of every sale, purchase, earning or expense meticulously. But, these records will not come about by themselves. You will need to hire an accountant for maintaining accurate books. Many small business owners do not have the capacity to hire accountants full-time. To get the best value for their money, they will often hire professional agencies for providing accounting services or bookkeeping services. These professional outfits typically offer a myriad of accounting solutions. For instance, they could take care of all your requirements concerning financial accounting, managerial accounting and tax accounting as well.
Why Businesses Typically Require the Services of Tax Accountants in Sydney and Other Cities
Preparing an income tax return can leave many people feeling intimidated. However, it is worth highlighting that the returns of individuals are hardly as complex as those of businesses. As a result, many business owners either spend more time poring over their financial statements and books, without ever feeling assured about the accuracy of their books. Or, they end up neglecting various measures that could reduce their tax liability. This is why many businesses prefer hiring professional tax accountants in Sydney and other cities.
Tax accountants are usually responsible for financial planning, managerial advisories and litigation consulting. In addition, they offer various tax-related services that are invaluable to many business firms across the country. These services could typically include tax planning, tax consulting and tax compliance services. Professional tax agents in Sydney and elsewhere possess ample expertise on tax-related matters. As such, they can scrutinise your financial records and ensure that everything is accurate. In addition, they can compute your tax liability, while ensuring that you maximise your deductions. As a result, you will be able to pay the right amount of tax, while enhancing your profitability as well. Above all though, the peace of mind that these professional agencies provide remains priceless for any business owner.
Are You Looking for the Best Tax Agent in Sydney?
At DSV Partners, we specialise in offering various accounting and bookkeeping services to commercial establishments. We focus on understanding your business and personal financial needs. This enables us to provide services tailored exclusively to your requirements. We can give you high-quality accounts in a timely manner. We can offer you various consulting services across a spectrum of businesses. In terms of audits, we can give you audited financial statements. And, if you need meaningful tax planning solutions, we can help you enhance your profitability too. This is why our clients consider us the most efficient and cost effective firm of Sydney accountants. To view our range of services, click here.
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