Should You Keep Your Receipts For Personal Tax?
When it comes to tax time, having all of your receipts is vital to being able to get what you are owed and avoid running into trouble with the taxman. As a general rule, keep everything, and keep your receipts in the best condition that you can. Don’t let the government keep money that is rightfully yours, and check out the following tips so you can keep all the right receipts and get back every cent you are entitled to.
Work related
Anything that is related to you being able to do your job properly can often be at least partially claimed on your taxes. Clothing, shoes, car repairs, petrol, phone bills, and anything that you need for work can be considered a work-related expense — as can at least part of your rent and utilities costs if you do any of your work from home. Keep all of your receipts just in case it can be claimed on your tax return. On average, Australians claim just over $1,900 per person in work-related costs every tax year.
Registering Your Business for the GST
If you’re in business, no matter how small, you’re under a range of legal requirements as to how to run key elements of your business, and depending on how much money your business deals with, this may mean you’re required to register for GST. The government takes taxes extremely seriously, so make sure you know exactly what your business’s obligations are, so that you can have all of your information in order.
Who should register?
Any business or enterprise which has a ‘GST turnover’ over of more than $75,000 for the year, or more than $150,000 in the case of charitable groups, is required to register for the GST. You must also register your business for GST if your business is in any way involved in driving people around in either taxis or any other type of chauffeur-style driving. In this case, regardless of your GST turnover, you’re required to register for GST.
Ensuring Your Business Finances are Recorded Correctly
Part of being in business involves keeping track of your finances, and being able to have an accurate record of any and all expenditure can allow you to have a clearer picture of what is happening with your business. Record keeping is a simple matter of discipline and organisation, so if you aren’t naturally geared towards record keeping, start getting hyped about it, as it could end up saving you a huge amount of money. The following are a few ways to try and stay on top of your business financial records.
Have someone trained
Your business should have someone who is designated to handle your finances and keep your records. Send this person off to do as many training sessions as you think they need, so that they can know exactly what your business needs to be doing. Accounting services training won’t automatically make your staff member a tax accountant, but they will know how to navigate the system more effectively.
Preparing Your Small Business for Tax Time
The best way to prevent a nightmare for your small business when it comes to tax time is by preparing well beforehand and being organised. Make it as easy as possible for you and your business to keep track of all financial activity, as it will make doing your small business’s taxes no big deal. The following are some of the ways to ensure your small business is always ready for tax time, and all will come in handy if you ever get audited.
Use online banking
Using online banking for all of your business’s financial transactions will make your life much easier when tax time rolls around, as you’ll have everything already recorded for you via your bank statement. This can be extremely helpful if you have any staff, as whether you’re paying them via cheque or direct deposit, you’ll have a record of everyone’s pay. This will make life easier for your tax accountants when they need to look over everything.
How to Keep Your Household Budget Up to Date
The easiest way to stay on budget is to be on top of it 100 per cent of the time. For some people this requires a bigger effort than others; the trick is to come up with a way that works for you, as there’s no one-size-fits-all approach to being more careful with your money. The following are some starting points for trying to make sure that your budget is at least current.
Keep your receipts
One of the best pieces of business advice you’ll get is this: for any and all purchases, keep your receipts! This applies to the home as well, allowing you to update your budget quickly and accurately. Not only will you know if you’re staying on budget and how many dollars or cents you have remaining, but it’s also important for your taxes, because if you know exactly what you’ve purchased, you can claim a lot of seemingly random items on your taxes and maybe even get money back. Have some sort of receipt jar, box or folder so you can always put your receipts in the same place. This way, whenever you have time to update your budget, you’ll have all the information you need in one place. This will do wonders for your longer term financial budgeting.
Smart Property Investment Basics for 2012
Along with shares, investing in residential property is one of the most favoured ways to build wealth in Australia. For many Australians, property investment forms an important part of their plans for financial security and retirement. These practical strategies will provide some useful insights for new property investors, although it’s advisable to consult accountants in Sydney or your local area for specific advice on tax and optimising your investment strategy.
Capital Gains Tax Discount
Capital Gains Tax (‘CGT’) applies to property acquired after September 20, 1985. However, there are many exemptions to this rule. For example, the main residence is not subject to CGT, and a 50 per cent discount to the CGT applies when the property is held for at least 12 months, subject to some limitations. CGT will have significant implications for investors who are intending to sell their property in the near future.
Business Financial Statements 101
Like personal budgets and tax statements, financial statements are vital for any business. They facilitate business decision making, provide a clear picture of the status of the business, and enable owners and managers to know when business goals have been reached. We look at the essential statements for businesses of all sizes, including the profit and loss statement, the balance sheet, the cash flow statement, and the statement of retained earnings.
Why Use Financial Statements?
Financial statements provide readers with a picture of the financial status of the business. In large companies and for investors, financial statement literacy is vital, as it is for small business owners. For those who need specific advice, specialists for small business accounting in Sydney and elsewhere are qualified to provide in-depth consultations about financial reports.
Top Secrets of Time-Effective Small Businesses
Numbering over 1.96 million in the 2010/11 period, small businesses account for a significant proportion of the Australian economy, accounting for nearly half of industry employment. As many small business owners know first hand, time is a critical factor in small business. In this article, we look at some of the top secrets of the most time effective small businesses.
Outsourcing
Balancing profit considerations with staff requirements is a priority of most small business. Luckily, any business can boost staffing numbers very quickly, on a needs basis, by outsourcing. In addition, Outsourcing allows you to access expert advice and specialist skills; for example, obtaining advice from accountants in Sydney or your local area.
What to Know When Buying a New Business
Thousands of businesses are bought and sold every year in Australia. As with any entrepreneurial endeavour, buying a business can come with its own risks, but when done correctly, it can be an excellent way to become a business owner without the initial start-up headaches. This quick guide outlines the things buyers should know when purchasing a business, including the need for due diligence and getting professional advice from accountants in Sydney or your local area.
Choosing an Industry
Many business owners choose an industry based on their personal passion or technical knowledge and skills. Whatever your motivations for choosing a business, it’s important to be certain that you can bring skills and know-how that will make you competitive in the market.
7 Most Common Financial Mistakes by Businesses
Good financial planning, budgeting, and management are vital for any growing business. Some of the common financial mistakes made by businesses stem from failing to prioritise financial management. While it’s advisable to seek out the advice of accountants in Sydney or in your region if you have any specific questions, this article outlines some of the most common financial mistakes by businesses.
1. Undercapitalisation
Undercapitalisation is linked to poor cash flow management. Carefully consider all possible options for funding. Where possible, seek professional advice. Specialists in small business accounting in Sydney and elsewhere can provide directions on budgeting, projections, and accurate cost estimates.