Category: Accountants

A partnership is a business model where two or more individuals agree to work together to form a business. These individuals share ownership of the business as well as the responsibilities that come with managing one.

Are you planning to form a partnership? Here are some things you need to know.

Types of Partnership

There are three types of partnerships. Depending on your needs and agreement with your partners, your options are the following:

• Incorporated Limited Partnership (ILP) — In an ILP, partners can have limited liability. However, there should be at least one partner with unlimited liability.
• Limited Partnership (LP) — In an LP, general partners have liability but only to the amount that they contributed to the business.
• General Partnership (GP) — In a GP, all partners have unlimited liability and share all responsibilities regarding the company equally.

Pros

One of the reasons many entrepreneurs choose to create a partnership, is that it’s relatively easy to set up. Financially, you won’t take on the burden of starting up the business yourself as you can pool resources with your partners.

Building a partnership has reduced requirements compared most other business structures, and the partnership does not have its own income tax obligations. However, each partner would have to pay income tax on their share of the net partnership income.

Cons

One of the biggest challenges of having a partnership is that differences in opinion could pose a threat to the business and its operations. Because all partners play a role in the business, making decisions could take time, especially if you and your partners find it difficult to come up with a consensus.

Another disadvantage is the way profits are divided among partners. Any miscalculation on how income should be shared could result in disagreements and issues.

It would help to keep in mind that in a partnership, partners both have an individual and joint liability. Therefore, all partners could also be liable for the actions of the other partners.

The key to a successful partnership model is making sure you choose partners that you can depend on. Choose those who understand and share your vision for the business. Additionally, it’s essential to select the right type of partnership for your business.

Not sure about which type of partnership is best for your business? Our team at Glance Consultants can help. Our professionals provide tailored advice to help you make an informed decision. Call us at 03 9885 9793 or send an email to enquiries@glanceconsultants.com.au for more information on our services.

If you still haven’t worked on your holiday budget, it’s not too late to get started. The trickiest part of planning for the holiday season is making sure you’re not just focusing on the potential revenue that the holiday brings.

Here are some things to look into when setting a holiday budget.

Inventory and Production

Inventory planning is vital, especially if you’re looking into having an end-of-year sale. It’s crucial to have enough inventory to get you through the shopping season. You wouldn’t want to run out of stock a week or two leading to Christmas, would you?

Managing your inventory can significantly affect your holiday revenue. If you have a list sitting on your shelf when the holidays are over, you may have overspent on your merchandise. Look into last year’s holiday sales, inventory and your trend for the past months. This could help you determine the budget to set for your holiday stock.

Marketing

Marketing your holiday campaigns does not always mean spending a fortune on ads. Make the most of your online assets, such as your social media profiles, email newsletter list, and website. All these channels could help you inform everyone about your upcoming offers. Want to supplement these assets with an ad campaign? You could set a reasonable budget as you do not only depend on the ads to promote your business and reach your target customers.

Holiday Miscellaneous Expenses

You would be surprised at how much you are spending when you add up all your minor expenses. Be sure to consider them when planning your budget, so you do not overspend.

These costs include holiday décor, packing materials, postage and shipping, utilities, and office supplies.

Tax Deductible items

As you enter the busy holiday season, be sure to monitor all your holiday expenses. Ensure you keep an accurate record-keeping system to ensure these tax-deductible expenses are captured for income tax purposes.

The holiday season is an exciting time. We may be amid a pandemic, but there is still reason to spread some cheer and make the most of this season’s growth opportunities.

Need help with budgeting, bookkeeping and forecasting? Get in touch with our team at Glance Consultants. We can help ensure your books are in order and your budget is on point so you can have a worry-free holiday season.

Please fill out our contact form or call 03 9885 9793 for more information on our services.

Do you have a self-managed super fund (SMSF), or are you thinking of having an SMSF? One of the things you should understand when it comes to SMSFs is how to manage its risks. And we are not only referring to the risk of your investments underperforming.

Here are some risks you have to be aware of and tips on handling them. 

Non-compliance with SMSF Laws

Every SMSF must comply with the laws set forth by the Australian Taxation Office. If your SMSF fails to comply with any of these laws (whether you are aware of them or not), you run the risk of paying a hefty fine. 

To operate your SMSF means you would have to keep yourself up-to-date with these rules. Another option is to have a qualified professional help you set up your SMSF and discuss with you all the guidelines and regulations you must follow.  

Statutory Compensation 

Should your SMSF suffer losses due to fraud or theft, you will not be eligible for compensation as discussed in the superannuation laws. 

Underinsurance

Underinsurance means insufficient insurance coverage. As part of the Superannuation laws, you must consider whether your SMSF should have insurance cover for its members. 

Total and Permanent Disability (TPD) insurance and life insurance offer layers of protection for your SMSF members and their families. Additionally, your insurance coverage protects the assets of your SMSF as it could offer liquidity during unexpected events. 

For instance, if a member has an accident resulting in permanent disability, rather than sell some of your assets, TPD insurance could pay out their benefits. 

Having insurance coverage is particularly crucial if you have more than one member or trustee in your SMSF. 

Liquidity 

Liquidity risk is the risk your SMSF may not have sufficient funds when you need it most. This could happen when your SMSF has illiquid assets and is low on funds. 

A good example would be if your SMSF owned multiple properties. Sure, this may sound good. But when you are developing a strategy for your SMSF, make sure your fund does not depend wholly on these properties as they may take a while to sell. 

Another example would be tradable investments like bonds and shares. Liquidity risk in this situation could mean you could be forced to sell during a market downturn.  

A lot of people often think about having an SMSF but are discouraged because of the risks. But with the right guidance, you would be able to set up and manage your SMSF hassle free. 

Glance Consultants offers services for SMSF establishment, ongoing tax compliance, financial reporting and audit. Contact us on 03 9885 9793 or send an email to enquiries@glanceconsultants.com.au for more information on our services.

Many business owners find payroll tax confusing. Some common questions they ask are “when should I pay payroll tax,” “how do I pay for it,” and “how do I calculate payroll tax.”

Let’s get up to speed as we answer some frequently asked questions about it. 

How does payroll tax work? 

Payroll tax is a type of state based tax that’s calculated on your business’s monthly total wages. If you plan to have employees in different states or territories, keep in mind that payroll tax varies — depending on where your employees are located. 

Should I register for a payroll tax? 

Not all businesses need to pay payroll tax. To determine whether you need to register, calculate your total wages paid. If you wage costs exceeds $54,166 in a month (Victorian threshold), then you will have to register. To do so, create an account via PTX Express and complete the application process. 

Once you have submitted your application, it could take about 14 days for the process to complete. However, if the SRO needs more information, it may take up to 30 days. 

When is my due date and where can I pay?

The deadline for lodging your monthly return and payment is one week after the month closes for the particular return. If you don’t have payroll tax payable for the month, you would need to lodge a “nil” return through PTX Express.

I made a mistake when I lodged our monthly return, could I still make changes? 

Yes. If you need to change anything on your monthly return, you can override it by lodging a replacement return for the month. 

What happens if I fail to pay our payroll tax?

If you fail to settle your business’s monthly payroll tax obligation, you will receive a default assessment. This includes an interest fee and penalty. 

The same goes when you pay after the deadline. You will incur interest and penalties.

Payroll tax doesn’t have to be complicated. But it does require you to lodge your monthly return on time and accurately. 

Glance Consultants can assist with your payroll tax obligations. If you need help with yours, call 03 9885 9793. You can also reach us at enquiries@glanceconsultants.com.au or fill out our contact form.

As COVID-19 continues to sweep across nations with no end in sight, many have started to consider their estate plans seriously. This may not be easy to think about for some. But, it never truly hurts to prepare yourself, your estate, and your family for what could happen.

What is Estate Planning?

Estate planning is more than preparing a will. It also includes appointing an inheritance manager or guardian if you have children below 18 years old. Additionally, it involves setting up instructions for your care should you be unable to decide for yourself. 

Estate planning also includes planning to cut unnecessary fees, court costs, and taxes when passing on your assets to your loved ones. 

Why Should You Consider Estate Planning? 

Estate planning is an essential part of life. With instructions and guidance on what to do, an estate plan eases the stress and uncertainty your loved ones may feel after you’ve passed. Furthermore, it gives you peace of mind that you’re leaving your assets to people you trust.

What are the Documents You Need to Get Started? 

Before thinking about distributing your assets to family, you must consider the debts you’ll be leaving behind. 

When you’ve passed, your assets will be used to pay off your debts. Once those are cleared, any remaining assets will be distributed to your beneficiaries. This means that you may have less to distribute than you initially thought.

To start estate planning, prepare documents pertaining to the following:  

• Bank accounts 
• Vehicles owned 
• Real estate properties 
• Investments 
• Businesses

How to Choose the Right Executor? 

Typically, you hire an estate planning expert or attorney to help you with your estate plan. You would also need to choose an executor. It’s the person who will make sure that your instructions are followed.

Apart from making sure your instructions are carried out as you wish, your executor will also be the one responsible for clearing your debts and executing any end-of-life plan you’ve set up. 

Many choose a family member as their executor. However, if you don’t want a family member to become your executor, you may also appoint a close friend. You could also choose an institution, a professional, or a bank to become your executor. 

Are you ready to start estate planning? We are here to help. Our firm has access to an excellent team of professional lawyers who can assist. We’d love to get to know you and understand your estate planning goals. Send an email to enquiries@glanceconsultants.com.au or call us at 03 9885 9793 for more information.

It has been a challenging time for many. We have remained cooped up in our homes and businesses have turned to digital means to survive the pandemic. Some have opted to shut down because they have exhausted their options to stay afloat. However, others have seen that it is also an excellent opportunity to start their own businesses. So, if you have been considering starting your own business, this maybe an opportune time.

Do not be afraid of the new normal

You might be hesitant given the difficulties that most businesses are facing. Yet there are those aspiring entrepreneurs who have understood the potential of companies to thrive despite the global pandemic. It has led to many people to rethink their business strategy, which has created a flurry of brands and services that are new and exciting.

There is no better time than today

If you can establish a business in this type of environment, you would be in a better position to face the challenges your business might come across in the future. The focus is on survival and maximizing all of your strengths to take advantage. If you can play your cards well, then despite being a start-up business, you would be in a better position to attain success.

A rise in Job Seekers

A notable consequence of the pandemic is that many people have been laid off. This is an opportunity for you to hire talented people in your team. Since many would be looking for employment opportunities, you can potentially snag candidates that you know will help your start up survive and thrive.

Contact our team at Glance Consultants for assistance with the establishment of your business. Call us at 03 9885 9793 or fill out our contact form.

The coronavirus outbreak is ravaging the world economy. From air travel, sporting competitions, and to extensive activities; almost everything was postponed and even cancelled. In times of crisis, it can be not easy to keep calm and constructive. For business owners, however, remaining calm under the hammering pressure is key to business survival.

By taking constructive action today, you will be able to place your company in a more stable position and recover quicker when the recession subsides. China, the country where the virus first originated, is now showing signs of economic growth.

What Coping Strategies Can You Develop?

Based on your industry, location, size, and other important considerations, the risk reduction practices that your business can pursue can be enormous. These strategies may involve actions such as changing the budget from fixed costs to flexible expenses to achieve stability.

Here are some of the key considerations:

● The first thing you can do is handle your cash inflows and outflows effectively. During these challenging times, a lot of businesses struggle to manage their cash flow. Thus, you may consider cutting costs or boosting sales by coming up with more innovative ways to market your products or services.

● The COVID-19 pandemic is expected to affect not just on consumer behaviour but also on how work will be performed in organizations worldwide. In other words, social distancing and self-quarantine are expected to improve e-commerce revenues during this period. For safety purposes, most customers will prefer digital solutions rather than traditional retail, which is a behavioural shift that is expected to have a long-term effect.

● Businesses of all types in Australia should strive to support attempts to prevent the dissemination of the virus as much as possible. Demonstrating this sense of mission will have a positive influence on your employees, customers, and the broader business community once the pandemic had ceased.

Are you in need of cash flow management advice? Glance Consultants will be able to provide you with assistance when it comes to handling your finances effectively.

Get in touch – call us today on 03 9885 9793 or fill out our contact form.

Avoiding delays when lodging your tax return this year could be quite challenging because of the ongoing pandemic.

Moreover, you can still lodge your tax return electronically until 31 October 31 or 15 May 2021 if you are using the service of a specialist tax accountant.

Before you start lodging your tax return, make sure you have everything covered to avoid delays. You should also make sure that you are aware of all the COVID-related deductions that you can claim.

On the flip side, take note that the ATO can sometimes delay the processing of your tax return, especially if you have old overdue tax returns to lodge.

The normal processing will only continue once you get your tax affairs up to date. If you want to save time, hiring a tax accountant is recommended when taking care of outstanding tax returns.

Tax Office

With the lifting of the lockdown restrictions, accountants are permitted to open their offices to accommodate their clients. However, with stringent social distancing guidelines still in effect, professional service firms do not have access to their offices.

Online Tax Return Service

If you’re taking precautionary measures and don’t have a way to see a qualified accountant in person, utilising an online tax return service would be a perfect alternative.

With an online tax return service, you can claim everything you are eligible for. We at Glance Consultants offer this valuable service.

When lodging your tax return this year, make sure to have a checklist of the necessary things that you need to do to avoid delays.

If you need further assistance, you can seek assistance from Glance Consultants to help you lodge your tax returns successfully. Our firm can provide a comprehensive checklist to cover your requirements.

Contact us on 03 9885 9793 or fill out our contact form to get in touch.