Accounting

11 May

Posted at 19:52h in Accounting

For most small businesses, managing finances is a major challenge. There’s only so much income you can generate. On top of this, paying your suppliers, employees, bills, etc. can make your business’s budget even tighter. It, therefore, makes sense for you to seek professional accounting services.

In your search, expect to come across so many accounting firms offering different services. Knowing where to begin can be another challenge. Therefore, it’s important to know the basic accounting services offered that cater to the needs of your small business.

Being informed about these accounting services will give you a starting point. You’ll also avoid partnering with the wrong accountant firm. These services include:

Bookkeeping Services

Bookkeeping is an essential service for any business. As a small business owner, keeping track of your daily business activities can help you analyse and manage your finances better.

Bookkeeping is also great for collecting data throughout the financial year. Most accounting services use software programs to accurately calculate and prepare financial reports.

Bookkeeping is an excellent way to stay in touch with your transactions on a daily, monthly, quarterly or yearly basis.

Business Credit

An important rule to always follow is to never mix your business credit with your personal credit. Being a small business, establishing and maintaining good business credit is vital. A sure way to do this is by making use of accounting services.

An accountant firm can grow and sustain your business credit. You can keep track of your business credit growth and submit reports to credit bureaus. Securing loans for small businesses, for example, is dependent on you having strong business credit.

Taxes

Taxes stress out even the most financially efficient businesses. For small businesses, keeping up with your taxes is no walk in the park either. It’s best to seek out professional accounting services.

From tax registration to preparing tax returns, there’s a lot an accounting firm can do for your small business. You’ll be able to spot areas you can take advantage of i.e. getting the most out of tax deductions and tax credit.

You’ll also be able to project your yearly tax amount and effectively account for business expenses.

Audits

Depending on the scale of your business’s operations, audits can be quite a lengthy and technical process. Collecting all the information needed to carry out an audit is better left to professional accounting services.

If you wish to know more about how your small business works and performs, a good accounting firm can be your guide.

Updating Financial Records

Keeping a clean account of your entire financial history is very important. Without a credible financial history, your small business won’t remain afloat for long.

Accounting services providers will ensure your financial records are filed properly, safely stored and backed up. In the end, you get to have a reliable source of information that you can access at any time.

What’s better, most accounting firms actually use basic software you can easily understand.

For more information on other accounting services beyond these, you are welcome to speak to us. We offer all the mentioned services and more that can be tailored to match your financial needs.

05 May

Posted at 21:29h in Accounting

Partnering with great business accountants in Sydney is great, but are you taking full advantage of all they have to offer? For most businesses, having an accountant who handles basic financial obligations, like bookkeeping and tax preparation, seems enough.

However, to optimise your business performance and streamline your financial operations for excellent outcomes, you need an accountant who can do more than bookkeeping.

Understand that your accountants have a key role to play in your growth. Therefore, you need a team that will not only not handle your finances and taxes but also make accurate financial projections, offer financial advisory services and help you actualise your plans.

The following tips will help you get the most out of your business accountant:

Ensure You Hire The Right Business Accountant

Start by hiring the right business accountants in Sydney. Make sure they fully understand your professional and individual needs. Remember that all business accountants offer similar services with slight variations. It’s the quality of service that matters.

So, who’s the right business accountant for you? First of all, they need to have solid industry experience and know a lot about your business. Secondly, they should be willing to go above and beyond for your brand.

You can be sure that hiring such an accountant is an investment that will pay back tenfold.

Make Use Of Your Business Accountant’s Networks

In their line of work, business accountants in Sydney interact with so many people and organisations. This presents you with a unique opportunity. By leveraging your accountant’s network, you put your business in a dominant competitive position.

Don’t be shy with your business accountant. Bring up the subject of meeting up with your accountant’s networks for business arrangements. It could be a great way to foster new business partnerships, boost your business credit and be eligible for loans.

It’s also an excellent way to venture into different business avenues.

Constantly Seek Professional Guidance From Your Accountant

Your business is like an unfinished painting. There’s constant room for improvement. There are no restrictions to your business ideas and financial concerns. You can always make adjustments.

However, this is only achievable if you always consult with the right business accountants in Sydney. Your accountant is like your fellow business partner. The fact that your accountant generally controls your finances should motivate you.

Don’t just talk about your finances when tax season arrives then leave it at that. Your business is a never-ending project. Ask questions, even ones that sound silly in your mind. Raise any concerns and compare different viewpoints. Get in touch with all areas of your business on a personal level.

Bring Your Accountant’s Advice To Life

Your business accountant knows about your business’s finances better than you do. However, don’t leave everything entirely to them. An accountant is only as good as the business owner. You should be able to combine your accountant’s technical skills with your ideas.

There’s a slight difference between financial management and financial growth. You need to know exactly what you want from your accountant. Do you want to manage your finances and grow your assets within your business? Or, do you want to branch out and have separate investments? Talk with them about how you can further grow and sustain your finances.

Business accountants in Sydney are a valuable source of professional advice. You’ll always be open to new and better ways of increasing your revenue streams.

Good Level Of Communication

Effective communication is crucial in business partnerships. You should always be on the same page with your business accountant. That said, it’s good to keep in touch at all times. Even when you’re on vacation. Fostering a good level of communication is the beginning of a long, healthy and productive relationship with your accountant.

You can hire the best business accountant in Sydney, but lack effective communication. Your business ideas and financial goals will not shape out as you had intended. Also, you’ll get minimal results by not making the most of your business accountant.

In conclusion, you have a lot more to gain from making use of the different services business accountants in Sydney offer. At our firm, we offer more beyond taxation and accounting services. When you work with us, you are guaranteed all-round growth and optimum performance. Get in touch to learn more.

28 Apr

Posted at 15:45h in Accounting

Success and failure in business have been partly tied to bookkeeping. That shows how important it is to the future of your business. To ensure the latter never occurs, embrace bookkeeping services in Sydney. Should you need further convincing, below is a list of reasons why you should make use of this service right away.
Great Bookkeeping Practices From The Outset

It’s true that without proper bookkeeping practices, your business won’t achieve its full potential. Hiring bookkeeping services in Sydney from the start puts you in a strong position. You get to establish strong accounting systems for your business early on. Together with sound financial advice from seasoned accountants, you can take your business to the next level.

Saves You Money

Hiring an accounting firm is cheaper than having in-house bookkeepers. Think about it. Salaries and benefits paid to in-house bookkeepers are significant. Not to mention the office expenses. Is there a way around this?

Thankfully, there is.

Outsource your bookkeeping needs to an experienced accounting company. In the long run, you will drastically reduce your expenses.

For an affordable price, you get access to world-class bookkeeping services in Sydney. Professional accountants handle every aspect of your business.

Saves You Time

As a business owner, you know how important time management is. You want to be spending less of your time on clerical tasks and more on making your business thrive. By hiring bookkeeping services in Sydney, you get just that.

Professional bookkeepers are more efficient than your in-house accountants. For starters, they can handle huge amounts of work. This means that blown deadlines will be a thing of the past. With the stress of handling your own books out of the way, you can better focus on your business.

It’s easy to see why top tier start-ups make use of bookkeeping services in Sydney. Partnering with an accounting firm puts your business on the road to success.

Reduces Errors

Be honest. Are you confident with the states of your books? If not, bookkeeping services in Sydney will remedy this. Let me explain.

For starters, seasoned bookkeepers are adept at using accounting software. This is a game-changer. Accounting software helps detect errors, eliminating flaws in books. Also, experience bookkeepers use tried and tested accounting strategies. Since there is no room for guesswork, you can rest easy knowing your accounts are in order.

Provides Tax Accounting Services

Unless you are acquainted with Australia’s tax laws, you may be paying more than you should. As a business owner, filing your own taxes leaves you exposed to serious risks.

For example, filing your taxes incorrectly will put you at loggerheads with the authorities. I am certain you have no time for such setbacks. Here is how you protect your business:

Take advantage of the bookkeeping services in Sydney.

Bookkeepers know the Australian Tax laws in and out. They will ensure proper and compliant bookkeeping methods, ease audit and taxation processes while completing your tax returns on time. What’s more, they will help you take advantage of any tax breaks available to you.

Can you say the same for your in-house accountants?

Facilitates Good Decision-making

It’s no secret that accurate financial advice is what separates a strong enterprise from a weak one. Guess what? A bookkeeper will give you the data and tips you need to make sound financial decisions.

With timely financial reports and well-kept financial records, you can move forward with confidence, backing your business movies with solid accounting advice. Your accountant will be with you every step of the way. Providing insight and warning you about decisions that could lead to the financial ruin of your business.

Source Of Financial Knowledge

Seasoned bookkeepers have seen it all, making them a great source of financial knowledge. Should you have questions related to general strategy, changes in law or anything else financial related, such accountants will answer all your questions, offering real-world explanations that are easy to follow.

Unbiased Financial Opinion

Making use of bookkeeping services in Sydney means one thing: you get unbiased financial opinions and observations.

The goal is to give you clear insight into your business’s financial position. As a result, an accountant will tell you as it is. They won’t overhype your capabilities or sugarcoat bad news. In our experience, this is the most effective way to ensure that your business remains competitive.

An accounting firm will steer your business in the wrong direction. With unbiased financial advice, you are able to set up your business for success. As if this isn’t enough, bookkeepers do other tasks such as payroll, debtor management, cash flow planning, troubleshooting, to mention a few.

Conclusion

No matter what stage your business is at, bookkeeping services in Sydney will give your enterprise a much-needed boost. So when it comes to finding reliable bookkeeping services in, only hire reputable accounting firms. We are proud to be among the select few trusted by hundreds of businesses across Australia. Talk to us today for a free quote or to learn more about what we offer.

27 Apr

Posted at 17:47h in Accounting

The Australian Taxation Office (ATO) has been concerned for some time about how many professional services firms are structured – specifically, professional practices such as lawyers, architects, engineers etc., operating through trusts, companies and partnerships of discretionary trusts and how the profits from these practices are being taxed.

New draft guidance (PCG 2021/D2) released last month from the ATO takes a strong stance on structures designed to divert income so the professional ends up receiving very little income directly for their work, reducing their taxable income. Where these structures appear to be in place to divert income to create a tax benefit for the professional, Part IVA may apply. Part IVA is an integrity rule which allows the Commissioner to remove any tax benefit received by a taxpayer where they entered into an arrangement in a contrived manner in order to obtain a tax benefit. Part IVA may apply to schemes designed to ensure that the professional is not appropriately rewarded for the services they provide to the business, or that they receive a reward which is substantially less than the value of those services.

The draft guidance for professional services

Set to apply from 1 July 2021, the draft guidance sets out a series of tests to create a risk score. This risk score is then used to classify the practitioner as falling within a Green, Amber or Red risk zone and determines if the ATO should take a closer look at you and your firm. Those in the green zone are at low risk of the ATO directing its compliance efforts to you. Those in the red zone, however, can expect a review to be initiated as a matter of priority with cases likely to proceed directly to audit.

The risk assessment framework will only apply if the firm first meets two gateway tests.
• Gateway 1 – considers whether there is commercial rationale for the business structure and the way in which profits are distributed, especially in the form of remuneration paid. Red flags would include arrangements that are more complex than necessary to achieve the relevant commercial objective, and where the tax result is at odds with the commercial venture, for example, where a tax loss is claimed for a profitable commercial venture.
• Gateway 2 – requires an assessment of whether there are any high-risk features. Potentially high-risk features include financing arrangements relating to non-arm’s length transactions, where income of a partnership is assigned in a way that is not consistent with existing guidelines, and where there are multiple classes of shares or units held by non-equity holders.

If the gateway tests are passed, then you can self-assess your risk level against the ATO’s risk assessment factors. There are 3 factors to be considered:

• the professional’s share of profit from the firm (and service entities etc) compared with the share of firm profit derived by the professional and their related parties;
• the total effective tax rate for income received from the firm by the professional and their related parties; and
• the professional’s remuneration as a percentage of the commercial benchmark for the services provided to the firm.

The resulting ‘score’ from these factors determines your risk zone. Some arrangements that were previously considered low risk may now fall into a higher risk zone.

For professional services firms, it will be important to assess the risk level and this needs to be done for each principal practitioner separately. Those in the amber or red zone who want to be classified as low risk need to start thinking about what needs to change to move into the lower risk zone.

Where other compliance issues are present – such as failure to recognise capital gains, misuse of the superannuation systems, failure to lodge returns or late lodgement, etc., – a green zone risk assessment will not apply.

02 Apr

Posted at 02:45h in Accounting

As a business, you cannot afford to dismiss professional accounting. You’ll be assured of your financial security. Looking for the best accounting service? Well, it can be a simple process or a major headache. Knowing where to begin can help the choosing process. There are a couple of things you should have in mind when looking for an accountant in Sydney.

Your financial needs will dictate the kind of accountant you want. The nature of your work will also determine the type of accountant you wish to hire. What is your budget? High end businesses and financial projects may require an accountant that charges more. As you weigh in on your personal preferences, find out good ways to find a suitable accountant in Sydney.

1.Don’t Be Shy To Ask Around

Before you launch a search online or resort to business directories, look around you. You may just be surprised at how resourceful people around you can be in helping you find the right accountant in Sydney for your business.

Speak to those in your business network. Ask if they know of a good accountant for hire. Don’t forget to ask your friends and colleagues as well. Everyone else you know in your industry could also point you to prospects.

2.Check Online

If asking around doesn’t yield the results you expected, go ahead and check online. Nearly all the accountants firms in Sydney today have an online presence.

Examine the independent reviews and ratings. Narrow your options to those with more positive ratings and encouraging reviews.

Check their websites as well. Learn about the services they offer and what makes them different from the rest. Look through post updates, client reviews and any other information that will help you make the right decision.

3.Draw Up A List Of Potential Accounting Services 

During your search, gather as many prospective candidates as you can. Thereafter, start to examine each of them thoroughly as you narrow down your list further.

Compare their suitability in terms of rates, location, flexibility, customer support etc. A suitable accountant in Sydney for you is the one who matches as many of your needs as possible.

You will realize that some accountants firms in Sydney charge high rates and offer quality accounting services. Others will charge lower rates for the same quality of services in an effort to attract more clients. But don’t be quick to choose the affordable option before you consider the rest of the factors we mentioned earlier.

4.Come Up With A List Of Questions

As you narrow down on the most suitable accountant in Sydney, have a checklist handy. Do not make the mistake of hiring an accountant based on the factors we mentioned alone. Do thorough vetting as well.  Here are some tips to guide you:

  • Find out the range of services your prospective accountants firms in sydney offer
  • What are the billing rates? How much will you be charged for financial advice? What is the preferred channel of communication? (Phone calls and emails have low costs)
  • Are they familiar with your tax requirements for your business?
  • Most businesses these days have an e-commerce platform. Can the accountant comfortably manage an online business?
  • Your business might have dealings outside the country. Is the accounting firm well versed in international tax issues?

These are but some of the questions you need to include in your list.

5.Schedule A meet

First meetings are very important as they set the tone for the entire session. You’ll also be able to know if the accountant works for you.

Observe how the accountant present himself/herself. Are they welcoming, taking in your financial concerns with careful consideration? Are they able to give you insight regarding your finances and answer any burning questions you have about their services?

Positive observations reinforce the accountant’s proficiency.

During a meet up, you’ll generally be able to tell if you will have an easier time working with your prospective accountant in Sydney.

6.Does The Accounting Firm Have Expertise In Your Job Industry

A suitable accountant in Sydney for you is one that has working experience in your area. Here’s why this matters.

Accountants firms in Sydney that only cater to food business, for example, may not be well conversant with how tax filings for a cleaning company are made. Also, they may not be aware of all the financial regulations that govern that particular industry. Hiring them therefore exposes you to risks that could ruin your business.

Understandably, there are accountant firms in Sydney that offer a wide range of finance services. You are likely to come across those with experience that spans various industries. You can count on such a firm to deliver exceptional results for your business.

7.Check Out Their Portfolio

You can tell a great accountant in Sydney based on how impressive their track record is. A long list of satisfied clients is a sign that offer reliable services.

Such accountants will not have excuses sharing with you a list of tasks they have completed successfully, plus details of past and existing clients.

Call some of them to hear their feedback. Are they any success stories? What’s making the clients to stay? Such questions will tell you more about the accountant’s proficiency.

A rich portfolio generally speaks volumes about the potential of accountant in Sydney. It is a sure sign of effectiveness.

8.Communication

Effective communication is a vital part of any business dealing. Without it, you will not be able to have a fruitful relationship with your accountant in Sydney.  This is one area you should examine thoroughly.  Learn about how they communicate, the channels they use, availability, and so on.

As far as finances are concerned, quick responses,effective teamwork and your personal involvement are necessary. This ensures that both you and the accounting firm are always on the same page.

Armed with all these tips, it should be easier for you to find a suitable accountant in Sydney for your business. All the best in your search!

25 Feb

Posted at 14:23h in Accounting

The Medicare Levy Surcharge (MLS) is a tax set by the Australian Government. The income tiers will change each year and we’ll update you once we hear from the government on what they are.
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22 Jan

Posted at 14:25h in Accounting

After a roller-coaster year 2020, businesses are hoping for a fresh start in 2021. As the Government continues to monitor and respond to the COVID-19 pandemic

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