Month: February 2021

 

Depending on which state you or your business is based in, there are different support packages that the Australian Government are providing to businesses who are feeling the devastating impacts of COVID-19.

Out team here at Glance Consultants, are working tirelessly to ensure that our clients are aware of what is available to them and ensuring that they are quickly taking advantage of such support packages so that businesses can keep their staff employed and their doors ready to open when they can.

With new approaches to controlling potential outbreaks frequently in development, such as the circuit breaker action that has recently been implemented in Victoria, a $143 million response by the Government has been established that provides necessary assistance to businesses that have lost significant income as a direct result.

There are four initiatives within this support package. These include business costs assistance for those who have incurred losses through cancelled bookings or perished foods, an update on the Licensed Hospitality Venue Fund for those who were previously eligible for this support and accommodation support for those tourism accommodation providers who can prove they have lost bookings during the circuit breaker action.

For some of these support packages, you do not need to apply, as you will be contacted directly should you be eligible. For others, it is vital that you bring together the right documentation and deliver through the correct avenues in order to receive the support that you need swiftly.

If you’re unsure whether you can seek specific financial support such as those presented in the circuit breaker action business support package, or you simply do not know where to start with it all, then rest assured that we are able to guide you in the right direction and provide you with relevant advice.

It’s not always about money.

Financial assistance isn’t the only necessary support for business owners and their employees during these tempestuous times. This can lead to more rash decisions as we become jaded to constant fear and anxiety over the precarious situation that we have all found ourselves in. Ensure that you take a moment to congratulate yourself and your staff for what you have achieved over the past year and hold fast knowing that such support packages from the Australian Government seek to keep businesses afloat and individuals in jobs.

Contact us on 03 9885 9793 or fill out our contact form to get in touch with one of our accountants today.

 

When registering a business in Australia, you would need to think about the types of taxes that would apply to your business. Many business owners are confused about which taxes they should pay and when they should pay them. Goods and Services Tax (GST) is one of those taxes that can be confusing for some business owners — especially for first-time business owners.

What is Good and Services Tax

Goods and Services Tax (GST) is a 10% value-added tax placed on most services and goods sold within the country. We say most, as there are some exceptions, such as select housing and health items, and particular food. Some long-term accommodation may also be exempted and may only be taxed at 5.5%.

If you’ve registered your business for GST, you should include it in the price you charge for your goods or services. You can also claim GST credits for applicable goods and services you purchase for your business.

Why Is It Important to Know

Understanding GST helps you decide whether it’s time for your business to register for it or not. Additionally, it will help you determine when to charge for GST and when you shouldn’t.

Some GST-free products and services are:

• Basic food
• Select medicines
• Select childcare services
• Select health care and medical services
• Select medical appliances and aids
• Select charitable and religious activities
• Accommodation, meals, and supplies of those living in retirement villages by select operators

Should Your Business Register for GST?

Not all businesses or organisations need to register for GST. Businesses with a GST turnover of at least $75,000 must register. For non-profit organisations, you would only need to register if your GST turnover is at least $150,000.

Businesses offering limousine or taxi travel like OLA, DiDi, and Uber must register for GST, regardless of their GST turnover.

Do you want to claim fuel tax credits? Consider registering your business for GST regardless of your GST turnover.

How to Register for GST

Do you already have an Australian Business Number (ABN)? If yes, we are able to register your business for GST.

If you do not have an ABN yet, you can register for ABN and GST simultaneously.

Once your business is registered for GST, you would need to provide tax invoices specifying the invoice total and GST component. Additionally, you must obtain tax invoices for purchases made for your business so you can claim GST credits. A robust accounting software should be maintained for this purpose.

Lodgement & Payment Requirements

On a monthly, quarterly or annual basis, your net GST payable or receivable figure would need to be calculated, reported and lodged via a Business Activity Statement. Lodgement and payment (if applicable) would be due within certain deadlines depending on the BAS (Business Activity Statement) cycle your business is on.

GST does not have to be complicated. Let us assist in managing your GST obligations. Call us at 03 9885 9793 or email enquiries@glanceconsultants.com.au to see how we can help you.

Finally finding a business, you would like to purchase and invest in is exciting. Before finalising your contract, however, make sure it is genuinely worth the investment you are about to put in.

To protect yourself, consider having a checklist of things to review before closing the deal. Do not just depend on what the seller says, or the business’s overall performance is. Dig deeper and analyse.

To assist you, we have listed down some of the items you have to consider when purchasing a business.

Check, and Double Check the Documents!

Some of the documents you should have, and review are:

• Contract of Sale
• Vendor’s Statement or Section 52 Statement
• Copy of Lease
• Financial records

When reviewing contracts, it would be best to check if you could add a performance clause. The clause should state “minimum takings of the business” for a set period while you finalise the settlement. Additionally, consider having the right to work on the business before you get into a binding contract. This way, you could confirm all the claims the seller made about the business.

Another thing you should review is the business’s existing contracts with suppliers. Ensure transfer of these contracts is included in your Contract of Sale.

Before the Transfer

Verify the name of the business and make sure the seller has clear ownership. Furthermore, they must have full rights to transfer the ownership of the business.

Does the seller own the premises where the business is located? Are they transferring the title of the premises to you, too? If yes, verify the land ownership to confirm they are the actual owners and have the right to transfer the premises’ ownership to you.

Red Flags

Take caution if you see any of these red flags when trying to purchase a business:

• A significant amount of customer complaints
• Dropping of prices to boost gross sales before selling the company to you
• Pending litigation

Failure to disclose any relevant information regarding the business should be a significant red flag for you. Therefore, it is crucial to perform a background check about the business. You really would not know if a seller were concealing something unless you do your own research.

Is the seller in a hurry to sign off? Are they refusing to introduce you to their suppliers? If so, it may be best to take a step back. Decide if it is in your best interests to proceed with the purchase.

Still need help with acquiring a business? We can assist you. Call us on 03 9885 9793 to find out how we can assist you with a business acquisition. You can get in touch with us by sending an email to enquiries@glanceconsultants.com.au to schedule an appointment with a member of our team.

 

Are your tax obligations stressing you out? While it may be a few months away, thinking about your strategic taxation plan now could help you avoid headaches when your tax liabilities are due. Additionally, it ensures that you won’t overlook anything or come across unpleasant surprises.

Not sure how to go about your taxation plan? Here are some things you should know to help get you started.

What is Strategic Taxation Planning 

Strategic taxation planning is the process of understanding, managing and anticipating tax liabilities based on your business financial goals and activities. Ideally, it’s recommended to carry out a review atleast annually so that your business is up-to-date with any changes in the taxation legislation. It also ensures that your taxation plan matches your current business goals.

Why is Taxation Planning Important

The most important benefit of having a taxation plan is that it allows you to minimise your tax liabilities within the rules and regulations in place. It also gives you more confidence in making strategic business decisions that could impact your finances.

When you fully understand your tax liabilities related to your business’s financial activities, you can take better control of your cash flow, debt payments, and other financial responsibilities.

Tips for Taxation Planning

When creating a strategic taxation plan, consider looking into the following factors:

• Cash flow — When you understand your business’s financial highs and lows, it will be easier to anticipate tax liabilities & deadlines and prepare for them. You would be able to avoid any undue financial strain on your business.
• Superannuation liabilities and contributions — Did you know that you could use your concessional superannuation contributions to reduce your tax liabilities? Often, business owners maximise their superannuation contributions in order to minimise their tax liabilities.
• GST cash accounting — This strategy could improve your cash flow as you pay GST at the point of collection and not when issuing an invoice to a customer.
• Small business restructure rollover — Looking to change your small business structure? Consider transferring active assets to another small business entity.
• Trading Stock Write Off – Obsolete/damaged stock – If identified, these items can be written off for accounting & tax purposes
• Bad Debts – Review your debtors and if any are unlikely to be recovered, write them off as bad debts before 30 June.
• Instant Asset Write off Concessions – concessions are available for eligible businesses that are looking to invest in fixed assets
• Prepaid expenses – bringing forward the recognition of certain expenses

Taxation planning doesn’t have to be complicated. At Glance Consultants, we specialise in taxation & cashflow planning for businesses. Our team of experts is ready to assist you in preparing your financial plans, financial statements and lodgement of your annual tax returns. We assist in the preparation and lodgement of your Business Activity Statements and variety of other lodgement obligations that you and your business face.

Call us at 03 9885 9793 or send an email to enquiries@glanceconsultants.com.au for more information on our business services.