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Which is more important? Cashflow or profit? Cashflow and profit are two of the most important financial metrics for any business. But while they’re both related to the financial performance of a company, they measure different things.   Knowing the difference – and how cash and profit contribute to your success story – is a vital skill if you want your business to have the best possible financial health.   The difference between cashflow and profit   Understanding the technicalities of financial reporting can be daunting as

New Family Trust Tax Rules – Will the Changes Impact You? If your trust pays adult-child beneficiaries, then you’ll need to know how the new ATO tax guidance rules could alter your beneficiary arrangements. The changes won’t affect every small business operating through a trust arrangement, but it’s important to check that existing provisions meet the new requirements.   The ATO is interested in agreements where parents benefit from trust income allocated to their children or other family members, particularly where tax avoidance

When you run a small business, the amount of work can ebb and flow. Unexpectedly busy periods can create too much work and stress for a small team or one-person business. But if a surge is seasonal or unreliable, you don’t necessarily want to commit to taking on another employee.   One solution is to use outsourcing to give you some flexibility during busy periods.   What could you outsource?   There are several types of jobs that can be ideal for outsourcing:   Tasks you dread, usually

If you are lodging your own annual GST return you need to lodge and pay by the 28th of February. If we are lodging on your behalf, your due date will be the same as your tax return date. We will advise you of this in plenty of time. If your not-for-profit entity is not required to lodge a tax return, the due date will be the 28th of February.   Things to review before finalising your annual GST return:   Have you allocated

Employees of non-small business employers can now access 10 days of paid family and domestic violence leave in a 12-month period.   Employees of small businesses can access the leave from 1 August 2023.   Employees have had an entitlement to unpaid family and domestic violence leave (FDVL) for some time as part of the National Employment Standards (NES). But as of 1st February this is a paid leave entitlement for employees of larger employers and 1 August 2023 for employees of small employers

Business plant and equipment: Buy or lease? When your business needs new plant or equipment, what’s the best choice – buy or lease? The answer will depend on your specific circumstances, but there are some basic considerations that can help you weigh up the options.   The advantages of buying   Buying gives you certainty and ownership, at a higher upfront price, but a lower total price. Owning an item of plant or equipment gives you unrestricted use for the lifetime of the item. You

Your upcoming tax calendar for February and March   Welcome back to work after what was hopefully a restful and lovely summer break! And welcome to 2023, where we are truly looking forward to working with you and your business this year.   In order for you to be across your tax obligations as you get back into the swing of things, below are the key compliance dates coming up. If you have questions or need help with any of the following, we are

New accountability measures proposed for ABN holders Originally announced in the 2018–19 Federal Budget, and now set out in draft legislation, are newly introduced accountability measures for ABN holders.   Once in effect, this will mean you will have to:   lodge outstanding income tax returns, and confirm the accuracy of your entity’s details on the Australian Business Registrar annually. Currently, there are no registration penalties for ABN holders when it comes to lodging tax returns. That is, you can continue to quote an ABN regardless of

The Federal Treasurer, Dr Jim Chalmers, handed down the Labor government’s first Federal Budget on 22 October 2022. Here are the highlights of the tax and accounting measures announced.   Businesses Electric vehicles under the luxury car tax threshold will be exempt from fringe benefits tax and import tariffs. A number of Victorian and ACT based business grants relating to the COVID-19 pandemic will be non-assessable non-exempt income for tax purposes. Grants will be provided to small and medium-sized businesses to fund energy efficient equipment

Changes to multi-factor authentication Xero are the custodians of your accounting data and want to do all they can to protect the information held in your account. One of the ways Xero does this is through multi-factor authentication (MFA), a process designed to secure how you log in to Xero and verify it’s really you. Currently, you can skip authentication for 30 days when signing into Xero via MFA (such as through the Xero Verify, Google Authenticator or Authy apps), which remembers