Accounting
ALERT – Immediate Deductions for Assets Under $20,000 Ends 30 June 2017
The laws that were passed back in 2015 allowing small businesses to claim an immediate deduction for assets they start to use, or have installed ready for use, provided each depreciable asset costs less than $20,000 will EXPIRE AT 30 JUNE 2017. Now is the time to discuss this with us here at Balanix if you are a small business and will need to purchase an asset under $20,000 in the foreseeable future. It may be to your benefit to bring the purchase forward to before 1 July 2017.
What to do when Selling or Closing Your Business
There are a number of steps you need to consider doing when you are either selling or closing down a business. I caution you before reading any further that the information provided does not cover all aspects and activities but rather provides a quick overview of some of the things you will need to do. I recommend that you seek professional advice specific to your circumstances to ensure you cover all bases. Having said this, here are some of the main activities:
- Finalise and lodge all tax obligations (e.g. Activity Statement, Instalment Notices, FBT Returns and Income tax);
- Request any refunds that may be owing to you;
- Make sure you cancel any withholding registrations;
- Cancel your ABN (when you cancel your ABN you automatically cancel your registration for GST, luxury car tax, wine equalisation tax, fuel tax credits and any AUSKEYS linked to the ABN);
- Consider whether you need a liquidator to wind the business up and if so, find a good one.
- If you are an employer:-
- Ensure all superannuation liabilities are finalised;
- Ensure all eligible termination payments are made; and
- Ensure all PAYG liabilities have been paid.
- Remember that under the tax law the business has an obligation to keep records for five (5) years after the records are prepared;
- If the business is a company then it must dispose of all assets before you can deregister the company;
- If you are selling, make sure you consider and get advice in relation to Capital Gains on the sale.
If you are contemplating selling or closing down your business talk to Balanix before you start the process to ensure that you understand all your businesses obligations and how to go about the process.
Working From Home – Is it right for you?
Sally Balwin
Recruitment | HR | Business Development
Did you know that at least 18% of Australians work in their pyjamas when they work from home – more than any other nation.
So if you deal with a client who works from home make sure you give them a call before dropping in or be prepared to face the consequences!!
But on a more serious note, if you are considering the option of working from home be aware that it is not for all people. It sounds great, but unless you are very disciplined and well organised it can lead to disaster.
There can be many distractions that you think you can handle without too much hassle, but in reality it is not that simple.
Working from home maybe one of those things that you want to try before jumping in the deep end. It can work and be very enjoyable, but you need to look at it from all angles.
- If you have or need clients to come to your workplace how do they feel about it?
- Can you separate home from work hours; that is instead of giving you a more balanced lifestyle would it in fact take the balance away.
- Do your clients understand that simply because you work from home does not mean you are available 24 hours a day seven days a week?
- How do you feel about the isolation of working from home?
- Are you the kind of person who is energised by the interaction with colleagues and the social aspects offices provide?
The other key areas to consider, when considering working from home, are the taxation, other legal/regulatory requirements and insurance/workplace health and safety implications. I hear many comments from people who work from home about what they think they can claim in tax, relying on home insurance coverage even though they are operating a commercial business, not realising some local councils have strict rules on home base businesses etc etc. It is imperative professional advice is sought, before setting up a home base business, from an accountant, lawyer, the local council and insurance broker (to name a few) to get the facts and make sure all the right things are in place and no nasty surprises arise down the track.
If you are considering working from home, take the time to talk to a number of people who have done it or are currently doing it and ask them for honest feedback as to what the benefits and downsides are for them so your decision can be well informed.
Accountants Most Trusted Source of Advice
David Balwin
CPA | Accountant | Business Advisor
According to a Sage Omnibus survey of more than 1,000 of its customers, small businesses trust their accountant’s advice more than bank managers, friends and family.
Further, a fifth (21%) of businesses say they are more open and honest with their accountants than anyone else. Accountants are the most trusted business advisor, following a breakdown in honesty between companies and their bank managers.
Exactly half, 50%, of those surveyed believe their accountant provides the most valuable business advice, with 4% believing this to be the case with friends, 2% family, and bank managers sloping in at 2%, alongside solicitors 2%.
Honesty is also the best policy, with 15% of small business owners also claiming they are more honest with their accountant than even friends, family or spouse. About 44% turn to their accountants first for business advice, 21% to the internet and 18% to business groups or Chamber of Commerce associations.
It is pleasing to see these results. Honesty and trust is paramount to the success of any relationship particularly if hard stuff has to be dealt with.
If you are looking for an Accountant you can trust, contact us – Balanix Solutions – for a free one hour initial consultation – we can help!
(Source: AccountancyAge – 7 December 2012)
