The ATO is targeting those who rent out their property for a few weeks during the year but claim a full year’s worth of tax deductions. The tax office will be paying close attention to rental property owners, especially those who own a holiday home and those who incorrectly claim for initial repairs to recently acquired properties. Last year, the ATO sent out letters across Australia reminding people to only… Read more
Business owners and employees who travel internationally for business-related trips can generally claim travel expenses as a tax deduction. If the overseas travel is for personal and business-related purposes, the business-related portion can be claimed as a deduction. The documentation required to be maintained should show the distinction between personal and business-related activities. Any private expenses must be excluded from your claim. The purpose of the activity and connection to… Read more
Borrowing at a time of low interest rates to invest can yield high returns in the long run. Although borrowing to grow a portfolio of shares or a managed fund is risky, if investors have a secure income stream and extra funds, the results can be very favourable. Diversifying the investment may be a way of lowering potential risk. Negative gearing Taking a loan out can help reduce an individual’s… Read more
There is often some confusion relating to the treatment and operation of capital gains taxes in the case of deceased estates. Generally speaking, CGT events are considered to take place when an asset changes ownership. In the case of deceased estates, the CGT event is considered to have taken place on the day that the person passed away. There are special regulations in place that allow capital losses and gains… Read more
For many people, buying an established business is very appealing. Not only do you get experienced staff and an existing customer base, your location is established along with a brand and network of suppliers. Within a few years of starting up, the majority of small businesses have closed for one reason or another. Purchasing an existing business should give the buyer some assurance that they are buying an already tried… Read more
Term deposits are one of the safest places you can have your money invested. Term deposits can be a great option because you know exactly what your returns will be and there is no uncertainty relating to the time frame. They can be a great option for your personal savings and your superannuation, particularly for person in retirement. The biggest drawback of term deposits today is the low rates of… Read more
While it is not uncommon to make some mistakes when claiming rental property deductions, it is important for investors to get their expense claims right to avoid facing potentially harsh penalties. In our experience, there are four problems areas where investment property owners are incorrectly (whether inadvertently or deliberately) claiming deductions that don’t necessarily reflect their circumstances. 1. Claiming excessive deductions This is a common issue, particularly involving… Read more
Many small business owners think they’re saving money by handling their financials themselves. While it’s a real asset to learn bookkeeping basics, cash flow management and your tax obligations, hiring an accountant to oversee your finances has many benefits. Leaving your books to a pro will free up time so you can focus on serving your clients and implementing plans for growth. Here are a few ways an accounting professional… Read more
Perhaps you have noticed that it is not always the smartest or most capable person that gets a promotion or has management roles seemingly thrust at them. Studies have shown that a person with better communication skills can typically achieve a higher level of success than someone who simply has the highest qualifications on paper. This is good news for anyone looking to develop the skills it takes to stand… Read more
On average, small business owners spend 10 hours each week recording, organizing, and processing financial transactions – everything from accounts receivable and payable, to employee payments, expense receipts and supplier invoices. While the process may be time-consuming (and tedious!), effective bookkeeping is the foundation of sound financial management – which in turn, is the lifeblood of your business. Feeling overwhelmed by mountains of paperwork and complex calculations? Here are three… Read more
If you’ve frequently been asking yourself if it’s the right time to buy a home, there are several things to first consider. Three things to think about are the current market conditions, the interest rates, and the amount of available housing. Current Market The current market conditions may help you determine if it is the right time to buy a home. If prices are starting to increase, you may want… Read more
Many small business people wonder whether it’s better for them to buy or lease capital equipment for their businesses. Your options regarding leasing or buying depend upon the nature of your particular business, but there are nevertheless a few guidelines you can follow to help you decide what you should do. If you have the money available, and the item is really necessary to your business, then it will usually… Read more
Don’t be left up in the air by traditional IT solutions. Check out the top 9 advantages for small businesses switching to cloud computing. Cloud computing is fast becoming the norm because storing information and using software hosted on the Internet has many advantages. 1. Save money Traditionally, a small business spends money licensing software or buying packages to install or download onto individual computers. Cloud computing, on the other… Read more
Once you’ve made the decision to sell your home, chances are you’d like to do it as soon as possible. While some houses sell almost as quickly as they hit the market, others sit for a considerable amount of time without generating any offers from prospective buyers. Fortunately, there are several steps that you can take to increase the odds that your house is in hot demand and sells quickly.… Read more
“How much should I spend on marketing?” Most small business people ask me this question at some stage. Many small business people find working out how much to spend on marketing a tricky exercise to calculate. Generally there are five ways to work out a marketing budget for the year. Remember that these are marketing budgets, not advertising budgets. Marketing covers everything you do in your business that creates awareness,… Read more
Debt can be a crippling problem for small businesses wanting to grow or just break-even during difficult times. By reducing debt you’ll improve the value of your business, its financial situation, and its ability to continue operating into the future. Assess your debt situation Take a detailed look at all of your debts – both current and long term. Evaluate which ones are more urgent and which can be parked… Read more
The key performance indicators (KPIs) for one company will invariably be different from the KPIs of another firm. What both hypothetical companies share however, is the challenge of selecting which KPIs are best suited for measuring the goals and progress of their particular business model. Indeed, entrepreneurs have a vast array of reports and data sets from which to choose and select from, but that data needs to target those… Read more
Advertising is an essential component of success for any business. Proper advertising ensures more sales, but if you choose the wrong options, it can be a very expensive proposition. Let’s look at five ways you can reduce your business’s advertising expenditure without affecting your results. Referrals A referral program encourages your current customers to send their friends to your site, and to earn rewards for their efforts. It’s a great… Read more
In business, finding a niche that can supply enough revenue is important. More entrepreneurs than ever are realising the importance of finding a narrow set of customers and catering their product or service to them. This allows you to focus your efforts on being great at a few things, rather than mediocre at many. But how do you find your ideal target market? This article will get you started by… Read more
Most small businesses experience cash flow problems from time to time and urgently need working capital. Many business owners immediately think of the bank or loans when they’re short of money. But there are other resources you can tap before you ask for that expensive overdraft or overdraft extension. The money you need might already be there—locked up in inventory, assets or your debtors’ book. You can often free up… Read more