S & H Tax Accountants

Tag: Accountant Cranbourne

  • Differences Between an Accountant and a Financial Planner

    Differences Between an Accountant and a Financial Planner

    When it comes to managing your finances, there are two professions that can help you understand your numbers, and ensure you have a plan to get to where you want to be. Accountants and financial planners can both play an important role in your financial success, but there are some important differences between the two.

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    For any successful business, it’s advisable to have both an accountant and a financial planner because their skills are so complementary and they can work together to help you better meet your financial goals.

    There are areas where they are similar, of course. Both can help determine if your financial plans are feasible and can provide you with important strategies for managing your money. And while they can both advise you, neither can make decisions for you.

    Here are the main differences between accountants and financial planners.

    Accountants

    Your accountant is responsible for keeping accurate financial records, making summaries, and undertaking analyses of your financial transactions. Depending on their role or specialty, they may also undertake auditing, inventory accounting, and financial forecasting.

    They’ll also help ensure your business is compliant with tax regulations and may advise you on important financial issues related to your business, such as decreasing costs, setting prices or wages, managing expenses, and budgeting. Additionally, they can help you determine the best way to set up your business, how to increase your returns after-tax, and how to grow your business.

    Further areas accountants can help you include

    • Payroll
    • Lowering your tax burden
    • Preparing business plans
    • Forensic accounting
    • Selling, buying, or merging a business.

    Financial planners

    Financial planners advise you on your wealth management. Typically, they are specialists in areas such as tax planning, managing your portfolio, or retirement planning. They may also advise you on solving your debt or building your long-term wealth.

    People who have specific financial goals in mind can turn to a financial planner to develop the best path forward to achieve those goals and improve their financial wellbeing.

    Specifically, financial planners can help you with

    • Philanthropic strategies
    • Retirement planning
    • Investing
    • Estate planning
    • Budgeting
    • Inheritance tax planning
    • Cash flow modeling
    • Portfolio construction.

    Who to hire and when

    If you run a business, it’s a good idea to have both an accountant and a financial planner on your team. Both will help set you up for success, lessen your risks and develop strategies to enable you to thrive financially. Often, accountants will know of good financial planners to bring onto your team, and vice versa.

    If you feel you can only hire one, that one will be based on your specific needs. If you’re working towards long-term wealth or other financial goals, considering investing, or concerned about setting up your estate, talk to a financial planner. If your needs have more to do with running a business, daily transactional financial activities, or dealing with your taxes, an accountant will help you.

    Develop relationships with both

    In an ideal situation, you’d have both an accountant and a financial planner on your team. Keep in mind that for them to help you to their best abilities, they need to get to know you, your plans, and your challenges. By developing a solid relationship with both and being open and transparent about your financial situation and any issues you face you can better enable both to help guide you toward success.

    Final thoughts

    Whether you’re planning for your business or for your personal finances, it’s a good idea to have someone around who can give you expert advice and advise you on the best financial path forward.

     

    Need an Accountant, S & H Accountants are the one for you. We are one of the best accounting firms in Cranbourne. We offer all types of tax services not only for individuals but also for companies, trusts and  businesses. Our team consists of well-qualified, vastly experienced as well as extremely professional individuals. We also do offer bookkeeping services, which will manage your transactions for you! S & H Tax Accountants aim to provide the best level of service to our clients. Book an appointment today, call us on 03 8759 5532 or email us on info@sahtax.com.au

  • 4 Benefits to Hiring a Bookkeeper for Your Business

    Bookkeepers can be highly beneficial for businesses of any size. They offer expertise and insight into areas that you may not have experience in. They can also take some tasks off your to-do list, freeing up your time and energy to focus on other matters.

    Here are 4 benefits to hiring bookkeepers to help you manage your business.

    Expertise

    A bookkeeper is an expert at managing, sorting and recording your business’s financial transactions. They’ve spent time developing their skills and experience. During that time, they’ve also seen and resolved bookkeeping-related issues that you may come up against. Their expertise makes them more efficient at managing those issues.

    Beyond that, they understand business trends and challenges others in your industry face, and can help you move through those as well. They also know what questions to ask to help you make important decisions and can share best practices with you.

    Guidance

    Your bookkeeper not only helps you maintain accurate records, they understand your financial circumstances. They help you assess how to make important business decisions, such as whether now is a good time to grow or when you should hold back. They can also identify trends in your industry and help you take advantage of those opportunities.

    Finally, they can assist you with budgeting, and sticking to your budget. They’ll help you come up with a realistic financial plan that enables your business to grow while achieving short- and long-term goals.

    Time savings

    As a business owner, you likely have many activities to focus on. In bookkeeping alone there are numerous tasks to be responsible for, such as:

    • Collecting and recording transaction data
    • Sorting receipts
    • Classifying expenses
    • Invoicing customers
    • Paying vendors
    • Managing payroll.

    Bookkeepers take on those tasks so you don’t have to. It’s not just about the energy you put into them, it’s about the fact that unless you’re an expert at bookkeeping, it’ll likely take you longer to complete these activities than it would take a bookkeeper.

    Think of the time you spend during an average week managing your books, then think of the time you spend during a high-pressure week, such as during tax season. That can add up to a lot of extra hours.

    By hiring a bookkeeper, you save yourself that valuable time for other activities such as marketing, perfecting your products or even spending time with family.

    Money savings

    There’s a time cost to doing your own books, but there’s also a potential money cost in the form of missed opportunities. The time you spend doing your own books is time you could potentially be out creating or taking advantage of new opportunities for your business. Your bookkeeper frees you up so you have the time and energy to identify potential opportunities. They can also advise you on whether you’re in a fiscal position to jump on those possibilities.

    Additionally, the expertise bookkeepers bring to their activities means they’re likely to save you from costly mistakes that could affect your finances.

    Final Thoughts

    Hiring a bookkeeper is a sound business decision as it gives you access to expertise and guidance you might not otherwise have, and it frees up your time and money to take advantage of other business opportunities. Talk to S & H Bookkeepers for you business bookkeeping needs. S & H Tax Accountants offer servicess in Cranbourne and surrounding suburbs.

  • 4 Things to Consider Before Expanding Your Service Offerings

    If you’re looking to grow your business, you might consider expanding your service offerings. Adding additional services is a good way to increase your profitability, diversify your income and expand your market. But there are important things to consider before adding to your income streams.

    Here are 4 important things to keep in mind when you consider adding to your services.

    1. Does the expansion complement your business?

    The best way to expand your service offerings is to add value that complements the work you’re already doing and is attractive to your current client base. While it takes more effort to bring new customers in, adding something that your current clients need and that you already have the capacity for is an efficient way to increase your profits.

    If you already offer lawn maintenance, find out what other yard work your clients need done, for example. It might be fairly simple for you to offer those services to your clients, and they’d probably be happy for you to do it rather than hiring someone new.

    2. Is your profitability consistently high?

    Spending money to hire new people and buy more equipment if your business isn’t consistently profitable is risky. It might be tempting if you make a lot of money in one year to jump into offering a new service, but hold back until you’ve got a couple years of high profits behind you. That allows you to save money to cover the increased expenses and ensure that the one year wasn’t an anomaly.

    Invest in your business, but expand your services when your profits are consistently up, not when you’ve had one really good period.

    3. Is there a potential partnership or merger that makes sense?

    There are times when forming a partnership or otherwise merging businesses makes sense. Is there someone out there who works in a similar capacity that you could work well with? Maybe they are great in their field but need help running a business. Explore a partnership or a buy-out.

    For example, if you offer immigration consulting and you know someone who offers relocation services, you might form a partnership so the new company can offer both immigration help and relocation services. That can lead to new clients for both you and your new partner.

    4. Are you doing it for the right reasons?

    There are many good reasons to add new services, but there are also reasons that can increase your risks. Competition, for example. While competition can drive innovation, it’s not the only reason to add a new service—and doing so just to beat your competitors can lead to mistakes being made and money being lost. Rushing to expand is when companies find themselves in trouble for adding services there’s no market for or without a fully-formed plan.

    Final thoughts

    Expanding your business is exciting, but it’s important to consider some issues before you commit your time, energy and financial resources. If you’re adding new services, do so because it makes sense, you’re in a financial position to do so, your clients want it and you have the capacity for it.

  • How to Scale Your Business with Minimal Effort

    If you want your business to grow, at some point you’ll have to think about scaling it. Scaling it isn’t exactly the same as growing it, though they are often used interchangeably. Growth refers to adding resources and increasing your revenue in a linear fashion. You double your number of offices to double your number of customers, for example. Scaling means increasing your revenue without a substantial increase in the resources used.

    For example, email marketing is a great way to scale. You write one marketing email and it can be seen by 100 people or 100,000 people, without any extra effort from you. Scaling is a way of efficiently using your resources to increase revenue, without incurring additional costs—or only incremental costs.

    Here are some tips to effectively scale your business with minimal effort.

    1. Keep it simple

    Processes that are overly complex take more time and energy. They also come with a higher risk of errors. Scaling your business doesn’t have to be complex—in fact, complexity can often slow progress and waste your time.

    Keep your processes simple. That will help you not only maintain control of your business, but enable your employees and your customers to understand what you do and to buy in.
    If it seems too complicated, avoid it.

    2. Use scalable administrative processes

    Scalable processes allow you to operate efficiently because they enable you to take action quickly, with less effort and input. Technology makes it easier for companies to access software that increases productivity and revenues while decreasing time spent on administrative tasks.

    For example, having an online invoicing tool helps you scale because you can quickly create invoices, follow up with clients and track project management, without having to do so manually. That saves you time and energy that can be better spent in other areas. Meanwhile, marketing automation tools can bring in an additional $50,000 a year but only cost around $5,000 a year.

    Examine the activities you perform regularly and explore whether there’s a tool that could automate them.

    3. Focus on data

    Don’t speculate about what is and isn’t working in your business, use data to determine where you should spend money, and where you should stop. Business owners have access to a wealth of data-driving metrics, everything from how customers interact with your website to which marketing initiatives are working, to how long it takes to convert customers.
    Use that information to make effective spending and operational decisions, rather than guessing at what is and isn’t working.

    4. Scale your offerings

    Chances are, you can scale your offerings to encourage repeat customers. Automatic renewals or subscriptions can increase customer retention rates without you putting in the effort of chasing people down. Rewards programs nurture customer loyalty.

    Explore whether you can offer repeatable pricing packages as well. Even if you offer professional services, selling packages saves you from manually quoting on every individual project. There is likely a way that you can implement subscriptions or service packages to save you time and hassle.

    Final thoughts

    Scaling your business is an important way to increase revenue without significantly increasing your expenses. If you automate your processes, scale your offerings, focus on data and keep your systems simple, you can scale your business effectively and efficiently.

  • Business Update – 9 September 2021

    Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward.

    We’re thinking of everyone affected by lockdowns around the country and encourage you to reach out if you have any questions about your business during this time. Read on for assistance that may be available to you.

    COVID-19 Government Support By State and Industry

    Small businesses that are currently suffering from lockdowns can get financial assistance to help them get through the pandemic. You can find the latest government support schemes for each state or territory here.

    The impacts of the COVID-19 restrictions vary from one industry to another. Here you’ll find the latest government financial assistance available for particular industries.

    Regional Victoria Leaves Lockdown

    Victorian Premier Daniel Andrews has announced restrictions will ease across regional Victoria, except for Greater Shepparton, from 11:59pm Thursday night.

    This means travel will be allowed around Victoria with no distance limit, but movement between Melbourne and the regions is restricted. A maximum of 10 people will be allowed for public outdoor gatherings, and outdoor tours will be capped at 20 people.

    Religious gatherings and ceremonies will be capped at 20 people and weddings will be limited to no more than 10 people. In-home visits are still not allowed in regional Victoria, and masks must still be worn indoors and outdoors.

    You can find a comprehensive list of the new rules here.

    Parts of NSW to Come Out of Lockdown

    The Mid and North Coast of NSW, as well as areas across the Riverina, and the Murrumbidgee regions, will all be free from lockdown restrictions on Friday at midnight. Regional travel is set to resume when 70% of the state’s adult population has been fully vaccinated.

    All Australian hotspots: COVID-19 Disaster Payment for recognised lockdowns

    This Federal Government support is lump sum payment for workers who cannot earn income because of a state public health order. You can check your eligibility here.

    NSW Grants

    The NSW Government will be offering financial support to businesses or not-for-profit organisations impacted by the recent COVID-19 restrictions and stay-at-home orders.

    NSW: Micro-business grant

    The micro-business grant is a $1500 fortnightly payment for businesses with a turnover between $30,000 and $75,000.

    To check your eligibility and apply, visit the Service NSW website.

    COVID-19 Business Grant

    A one-off payment to help businesses, sole traders or not-for-profit organisations impacted by the current Greater Sydney COVID-19 restrictions.

    Grants between $7,500 and $15,000 are available to eligible businesses depending on the decline in turnover experienced during the restrictions. For eligibility criteria and to apply, visit the Service NSW website.

    ATO support for those affected by COVID-19 restrictions or disasters

    The ATO has a range of support options to help those affected by disasters or those experiencing challenges due to continuing COVID-19 restrictions.

    The ATO may be able to:

    • prioritise any refunds owed to you
    • set up a payment plan tailored to your individual situation
    • remit penalties or interest charged during the time you have been affected.

    If you need help to manage your tax or superannuation obligations, please get in touch with us.

    JobMaker Hiring Credit

    Eligible employers can access the JobMaker Hiring Credit for each eligible additional employee they hire between 7 October 2020 and 6 October 2021. You may be able to claim the following payments:

    • up to $10,400 over a year for each additional eligible employee aged 16 to 29 years
    • up to $5,200 over a year for each additional eligible employee aged 30 to 35 years

    Register before the due date of the first JobMaker period you’re claiming for.

    Wage Subsidy Scheme for Apprentices and Trainees

    The government is continuing the wage subsidy scheme for apprentices and trainees. Under the scheme, the government will pay half the wages of apprentices up to a maximum of $7,000 each quarter for 12 months.

    4 Easy Ways to Provide More Value for Your Customers

    Customers choose you over your competitors because you provide the most value. As competitors find ways to make their offerings more appealing than yours, you should also implement some strategies to provide even greater value than you already do and retain customers. This Forbes article shares some tips on how you can achieve this.

    • Become a niche authority. Establish yourself as an authority in your niche and provide solutions or insights to their pain points through blogs and social media posts.
    • Ask customers for feedback. Obtain honest feedback from customers to discover how you can add even greater value and improve customer experience.
    • Proactively customise your offerings. A one-size-fits-all approach doesn’t always work. Understand what each client needs and tailor your services accordingly.
    • Reward loyalty. If you want to gain repeat customers, find ways to reward their loyalty. Provide incentives and devise a rewards system.

    As you try to make your customers happier, your business becomes more memorable and valuable for them. Therefore, it’s a win-win situation!

    Need more focused business advice? Get in touch with us today and we can talk about your situation.

    Get in touch

    Contact us if you have any questions or want to discuss the next steps for your business. We at S & H Tax Acountants help Small business in Accounting, Tax and Bookkeeping. we are Accountants located in southeast of Melbourne. We offer Tax agent services in Cranbourne, Clyde and surrounding areas.

  • Succession Planning: A will for your business

    The unfortunate reality is most business owners don’t take proper holidays. Usually this is because their business relies on them and they don’t have the support to keep the business running without them.

    As a business owner, have you ever considered what would happen to the business if you had to take a six months break because of a serious illness or injury?

    Would the business survive? How would the bills get paid? And while it might not be nice to think about, if you were to die, are you sure your business partners would give your loved ones a fair deal? For these reasons, and many more, it’s important for all business owners to have a detailed succession plan. A succession plan is like a will, but for a business. Although there are often a wider range of scenarios and options to consider.

    Just like your will, a good business succession plan can vary from one business to the next. But there are some key areas that should always be considered, which you can find below. Chat to us if you want advice on future-proofing your business.

    Business Structure

    In the event of death or retirement, the ownership and control of the business may need to be transferred to the owner’s family or to the surviving business partners. How easily this occurs will often depend on how the business operates, such as through a trust, or a company, or without a separate entity at all.

    Succession agreements

    If something happened to one of the business partners, would their spouse or children take over the control of that share of the business? If the answer is no, then a succession agreement can assist the other business partners to continue business operations whilst allowing for compensation for the former partner’s family.

    Managing risk

    Just like personal insurance, business insurance can provide a range of protection such as temporarily meeting the normal costs of running the business (business expenses cover) or paying for a short-term replacement manager (eg. trauma or disability cover). A life insurance policy linked to the succession agreement that provides the deceased partner’s family with suitable compensation for the transfer of business ownership to the surviving partners may also be a good idea.

    Powers of Attorney

    Most small businesses struggle to do much without the advice and authority of the figurehead or main key decision-maker. That’s why a Power of Attorney is integral to a good succession planning process. It helps the business to physically operate if the owner is incapacitated because of illness or injury.

    There is a range of people who may need to be involved in setting up a succession plan, including a financial adviser, lawyer and accountant. We can help you find the right team for you.
    Even if you have a plan in place already, it is important to review agreements and insurance policies so they’re up to date and reflect the current value of the business.

    Need a succession plan?

    Chat to us to get started. We’re here to help you run a successful business and protect your assets, now and in the future.

    We at S & H Tax Acountants help Small business in Accounting, Tax and Bookkeeping. we are Accountants located in southeast of Melbourne. We offer Tax agent services in Cranbourne, Clyde and surrounding areas.

  • Business Update – 18 August 2021

    Business Update – 18 August 2021

    Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward.

    We’re thinking of everyone affected by lockdowns around the country and encourage you to reach out if you have any questions about your business during this time. Read on for assistance that may be available to you.

    Tougher COVID-19 Restrictions in Melbourne

    New stricter COVID-19 restrictions came into effect in Melbourne at 11:59pm on Monday and will be in place until 2 September.

    As part of the new restrictions, playgrounds, basketball courts, skate parks and outdoor exercise equipment will be closed and people will no longer be allowed to remove their masks to consume alcohol outdoors. Meanwhile, large construction projects will be restricted to 25%.

    Curfew will also be in force from 9:00 p.m. to 5:00 a.m. each day.

    Sydney Lockdown Fines Increased to $5,000

    State police will fine people up to $5,000 if they are found breaching stay-at-home orders or lying to contract-tracing officials. It is also looks increasingly unlikely that Sydney will end its nine-week lockdown on 28 August as planned.

    SA Blocks Travellers From Parts of NT, Greater Darwin Enters Snap 3-day Lockdown

    South Australia closed its border to travellers from several local government areas north of the Central Desert and Barkly LGAs — excluding the East Arnhem LGA — in the Northern Territory as of 6:00 p.m. Monday night.

    Only returning South Australian residents, essential travellers, those who are relocating, and people escaping domestic violence will be allowed to enter SA from the affected LGAs. Meanwhile, Greater Darwin and Katherine entered a three-day lockdown at noon on Monday after one positive case of COVID-19 was recorded.

    Victorian Business Costs Assistance Program Round 2 July Extension

    The Victorian Government’s Business Costs Assistance Program Round Two July Extension (BCAP2e) gives eligible businesses that had not previously applied for the Program in June, or have since become eligible, with the opportunity to apply for the equivalent of the July Top-Up Payments.

    The program offers grants of $4800 to eligible businesses, including employing and non-employing businesses, depending on their industry sector.

    Read the eligibility criteria here.

    All hotspots: COVID-19 Disaster Payment for recognised lockdowns

    This Federal Government support is lump sum payment for workers who cannot earn income because of a state public health order. You can check your eligibility here.

    NSW Grants

    The NSW Government will be offering financial support to businesses or not-for-profit organisations impacted by the recent COVID-19 restrictions and stay-at-home orders.

    NSW: Micro-business grant

    The micro-business grant is a $1500 fortnightly payment for businesses with a turnover between $30,000 and $75,000.

    To check your eligibility and apply, visit the Service NSW website.

    COVID-19 Business Grant

    A one-off payment to help businesses, sole traders or not-for-profit organisations impacted by the current Greater Sydney COVID-19 restrictions.

    Grants between $7,500 and $15,000 are available to eligible businesses depending on the decline in turnover experienced during the restrictions. For eligibility criteria and to apply, visit the Service NSW website.

    JobSaver payment

    JobSaver is a fortnightly payment to help maintain employee headcount (as at 13 July) and provide cashflow support to businesses. To check your eligibility and apply, visit the Service NSW website.

    Small business fees and charges rebate

    If you are a sole trader, the owner of a small business or a not-for-profit organisation in NSW, you may be eligible for a small business fees and charges rebate of $1500 aimed at helping businesses recover from the impacts of COVID-19. Applications are open and you can check your eligibility here.

    You can view more NSW Government COVID-19 Support Packages here, including Jobs Plus, Sydney CBD Friday vouchers, Payroll tax support and support for the tourism industry. Get in touch with us if you have any questions.

    QLD COVID-19 Business Support Grant

    Your business may be eligible for financial support through the 2021 COVID-19 Business Support Grants. $5,000 grants will be made available to small and medium businesses across Queensland affected by COVID-19 lockdowns and lockdowns in other states. You must have experienced a 30% reduction in turnover as a result of the lockdown.

    Applications will open in mid-August so we will keep you updated.

    The Business Queensland website has an overview of the range of assistance available.

    Fuel Tax Credit Rate Hike

    Fuel tax credit rates increased on 2 August 2021 in line with fuel excise indexation. If you claim less than $10,000 in fuel tax credits per year, you can use simplified methods including:

    • the rate that applies at the end of your BAS period
    • the Basic method for heavy vehicles to calculate your claims if you use a heavy vehicle.

    You can find the updated rates here and use this fuel tax credit calculator to work out your claims. If you need more help with your tax, contact our tax agents today!

    Government Support for Best Emerging Innovators in Western Australia

    A total of 21 start-ups and SMEs have been awarded up to $20,000 each by the Government of Western Australia. A total of $385,000 has been given through the Innovation Vouchers Program, which aims to assist Western Australian innovators in commercialising their ideas and creating new jobs.

    Since its launch in 2011, the Innovation Vouchers Program has awarded 199 vouchers worth approximately $3.7 million.

    Downsizer Contribution Into Superannuation

    If you’re at least 65 years old and you meet the eligibility requirements, you may be able to make a downsizer contribution into your superannuation of up to $300,000 from the proceeds of selling your home.

    Your downsizer contribution will not affect your total superannuation balance until your total super balance is re-calculated to include all your contributions, including your downsizer contributions at the end of the financial year.

    It will count towards your transfer balance cap which applies when you move your super savings into the retirement phase. You can also access the downsizer scheme only once, and if you sell your home and choose to make a downsizer contribution, you will not be required to purchase another home.

    Get in touch with us to check your eligibility and if you have any questions.

    ATO support for those affected by COVID-19 restrictions or disasters

    The ATO has a range of support options to help those affected by disasters or those experiencing challenges due to continuing COVID-19 restrictions.

    The ATO may be able to:

    • prioritise any refunds owed to you
    • set up a payment plan tailored to your individual situation
    • remit penalties or interest charged during the time you have been affected.

    If you need help to manage your tax or superannuation obligations, please get in touch with us.

    JobMaker Hiring Credit’s Second Claim Period

    The second claim period of the JobMaker Hiring Credit is now open. So if you’ve taken on additional young employees between 7 January and 6 April 2021, you may claim the following payments:

    • up to $10,400 over a year for each additional eligible employee aged 16 to 29 years
    • up to $5,200 over a year for each additional eligible employee aged 30 to 35 years

    Register any time until the scheme ends.

    Wage Subsidy Scheme for Apprentices and Trainees

    The government has announced the expansion of the wage subsidy scheme for apprentices and trainees. Under the scheme, the government will pay half the wages of apprentices up to a maximum of $7,000 each quarter for 12 months. Ask us if you have any questions.

    4 Ways Your Business Can Increase Its ROI in 2022

    Finding ways to boost your business’ profit margins can be challenging, especially if you’ve already tried many of the traditional ways of improving the stability of your cash flow during the pandemic. This Forbes article shared some unusual methods to grow your ROI.

    1. Invest in high-performing marketing platforms. Look into platforms that are not as saturated as Facebook, including Youtube and Instagram. You could also switch gears by starting a company podcast.
    2. Automate more tasks. Automate more tasks with the assistance of AI-driven tech and integrations to free up your team’s time and allow them to focus on getting higher level work done.
    3. Unclog your sales pipeline. Sit down with your sales team and outline your customer journeys. Remove stumbling blocks and friction points to improve your sales pipeline and speed up your sales cycle.
    4. Reorganise your team. Switching responsibilities between team members could improve your efficiency and may allow you to keep the same amount of core staff while scaling your business.

    Do you need expert advice on your specific situation? Get in touch with us today and let’s work out a plan!

    Get in touch

    Contact us if you have any questions or want to discuss the next steps for your business.

  • Tax Implications of Cryptocurrency (AU)

    Tax Implications of Cryptocurrency (AU)

    With cryptocurrencies gaining notoriety, many people are unclear on how or when they can be taxed. Despite widespread belief to the contrary, you can be taxed on gains made as a result of obtaining or using cryptocurrency. If you’ve made a profit from trading cryptocurrency, for example, you need to declare it at tax time.

    Here is some important information on cryptocurrencies and their implications for your taxes.

    How cryptocurrency is defined

    For tax purposes, the Australian Tax Office (ATO) defines cryptocurrency as “a digital asset in which encryption techniques are used to regulate the generation of additional units and verify transactions on a blockchain.” This includes Bitcoin, or other digital currencies with characteristics that are similar to Bitcoin.

    The ATO says cryptocurrency—including Bitcoin—is not Australian currency and is not foreign currency.

    How cryptocurrency is taxed

    You can be taxed on your profits when you exchange cryptocurrency for another currency, other cryptocurrencies, or to purchase goods or services. If they are used in business or professional activities, they may be taxed as income. For example, professional cryptocurrency trading or mining, operating cryptocurrency-related businesses, or operating a business using cryptocurrency transactions all count as income.

    If the cryptocurrency is used in other ways—such as casually or as a hobby—it may be taxed as an investment and subject to capital gains taxes.

    You are not subject to capital gains until you exchange or otherwise dispose of your cryptocurrency holdings. Typical transactions include:

    • Selling cryptocurrency
    • Gifting cryptocurrency
    • Trading or exchanging cryptocurrency for another cryptocurrency or fiat currency
    • Converting cryptocurrency to fiat currency
    • Exchanging cryptocurrency to purchase goods or services

    A capital gain on any of the above transactions, will result in being taxed on part or all of the gain. If you hold the cryptocurrency for more than a year before exchanging, selling or trading it, you may receive a 50% capital gains tax discount. If you have losses on the cryptocurrency exchange, you can use those to reduce capital gains in that year or future years.

    Cryptocurrency obtained or held as an investment may be subject to capital gains taxes. Your reason for purchasing or keeping the cryptocurrency is as important as the reason for exchanging it. Even if you use it for a personal purchase, if you acquired it as an investment you must report it and it may be taxed as a capital gain.

    Keeping proper records

    No matter your reasons for purchasing, holding or using cryptocurrency, it’s important that you keep proper, detailed records of all cryptocurrency transactions. This means keeping a record of the date of each transaction, the value of the cryptocurrency in Australian dollars at the time of the transaction, the purpose of the transaction, and the other party’s details.

    Keep all receipts of any transaction including cryptocurrency and records of all costs associated with the transaction.

    Final Thoughts

    If you’ve been involved in any cryptocurrency transaction in the past year, it’s important that you keep proper records and report the transaction to ATO. Although many people think they do not have to pay taxes on cryptocurrencies such as Bitcoin, ATO views them as income or investments and they can affect your taxes. We at S & H Tax Accountants can help to lodge a tax return with Crypto trading, our accountants are highly experienced and well qualified. Book an appointment today with S & H Tax Accounting, call us at 03 8759 5532 or email us at info@sahtax.com.au

  • 5 Most Common Accounting Mistakes That Could Hurt Your Business

    5 Most Common Accounting Mistakes That Could Hurt Your Business

    Many small business owners tend to handle their own accounting and bookkeeping, especially when they’ve just started out. However, keeping track of the finance-side of the business– everything from income to expenses to tax compliance– can be overwhelming.

    Mistakes can happen quite easily and can have costly consequences to your business. Below are five of the most common DIY accounting errors that you should avoid.

    Unorganised Records

    It takes excellent organisation skills to be able to do your bookkeeping and accounting right. You would need to keep a record of every transaction, keep receipts or digitise them for future reference, calculate taxes accurately, and more. If your records are not kept organised and updated, it is highly likely that you’ll miss something out, which could get you into trouble during the tax season.

    No Accounting Schedule

    As a business owner, there are surely a lot of other things that you need to attend to and accounting can easily be pushed to the bottom of your seemingly endless To-Do list. Yet, it is extremely important to set an accounting schedule to add your recent income and expenses into your records. If daily updating is not possible, at least dedicate some time once a week to do your accounting.

    Unreconciled Accounts

    Regularly check if your bank account reflects the same balance as you record your cash flow and other financial data into your books. If you find a gap, there is likely a mistake somewhere that you need to find or even a fraudulent transaction. Taking immediate action will help you prevent worse problems further down the line.

    Failing to Take Into Account Small Transactions

    It can be easy to forget about minor transactions such as the office supplies that you picked up on your way to the office or the freebie that you sent a loyal customer. However, no matter how small you think the transaction is, it’s important to keep a record and get a receipt. In case of a tax audit, you will need to be able to present records of ALL business expenses, even these small ones.

    Not Backing Up Data and Using an Accounting Software

    Imagine if the laptop where you store all your financial data was stolen, lost, or broken beyond repair and you don’t have a back up. You would need to redo everything from scratch, which could be a huge waste of time.

    If you’re still using a spreadsheet or paper ledger to keep track of your business finances, you might want to consider upgrading into a cloud-based accounting software such as Xero, QuickBooks, and MYOB. By migrating to the cloud, you will be able to easily back up your accounting data and even access them wherever and whenever you need to.

    These cloud-based accounting systems also integrate well with your bank account and other powerful business apps. The results are streamlined processes, less manual work, enhanced efficiencies, and better overall business performance.

    Spend Less Time on Your Books and More Time on Your Business

    While being aware of these common accounting mistakes could help you avoid them, the most convenient and efficient approach to stay on top of your business finances is still to entrust your accounting to the experts. Our team of experienced accountants can integrate the most suitable cloud accounting software for your business and even train your in-house staff on its proper implementation.

    Let us take charge of your books, while you focus on growing your business. Get in touch with us today!

    We understand that making sure that your accounts are accurate and organised can be tedious. That is why S & H Tax Accountants are here to help. Our team make it easier for you, as we are able to keep your records organised and accurate. S & H Tax Accountants pride themselves in providing the best possible level of service to our clients. Make a booking today at S & H Tax Accountants, call us at 03 8759 5532 or email us on info@sahtax.com.au

  • Paying down debt

    Paying down debt

    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 until some progress is made.

    The key determining factor should be the interest you’re paying on your debts. For example, those with the highest levels of interest should be paid first.

    Also, list your debts from smallest to largest. Maybe some of those smaller debts can be paid off quickly without much hassle to enable you to focus on the larger ones. Consider consolidating all your loans into one payment if possible.

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    Cut costs and free up cash

    Try to cut any unnecessary costs and free up some cash in the process. Think about how much you spend on each of your daily expenses – is there room to cut some of those costs?

    For example, a building firm may shout takeaway coffees for its workers a few times a week. Maybe a cheaper way can be found to continue providing coffee, such as instant coffee on-site with hot water from a thermos, rather than expensive takeaways.

    Have a look at how long it’s taking your debtors to pay you. If your customers aren’t paying on time, come up with some solutions for encouraging them to pay quicker.

    Early payment discounts could work well but make it clear on each customer’s invoice. Alternatively, tighten up invoice periods so there are fewer days for your debtors to pay before penalties. Make sure you let them know about any changes and the reasons for those changes.

    Reassess funding

    Have a look at how you’re using funds to pay off your business’s debt. Do you have funds available that could be better used to reduce debt further? Perhaps you have money in a current account that isn’t being used optimally – lowering debt and hence future payable interest could be a wiser choice.

    Examine your cash cycle, when payments come in and when they go out to pay your creditors. Where does the incoming cash go before it gets allocated? Is there any you can reassign to debt payments?

    Close Up Home Sale Icon With Key Stacked Coins Calculator Math Blocks

    Sell your assets

    Another option for freeing up funds to reduce your business’s debt might be to sell some assets. What do you have money tied up in, but don’t use often enough to justify?

    Any equipment that’s not being used could be sold off. One example could be a builder who has an oversupply of power tools – making a detailed list of all their tools and how frequently they’re used might reveal some surplus assets.

    Make sure you’ve calculated depreciation correctly

    Have you depreciated all the assets in your business that need to be depreciated? It’s important to get these figures correct including the ratio of personal to business use if you use an asset for both.

    For example, a company vehicle will need to be accurately depreciated in relation to its usage over time. We can help you calculate depreciation correctly and also check whether you’re entitled to any tax rebates.

    If you need assistance with paying off your debt, please feel free to contact S & H Tax Accountants. Our Accountants are able to guide you through your debt and advise which strategy would be suitable for you, whether it would be cutting costs or calculating your depreciation. Book a consultation today, call us on 03 8759 5532 or you can email us on info@sahtax.com.au.

  • Strengthening your balance sheet

    Strengthening your balance sheet

    Your balance sheet (now more correctly called a Statement of Financial Position) reveals a great deal about your business, including the total value of your assets – the things you own; how much you owe to others – your liabilities; and the level of your solvency.

    These three aspects will be studied carefully by lenders and investors − and by buyers if you intend to sell your business. But they should also be important to you, because it’s important to be solvent at all times. In other words, you need to have more assets than liabilities available to pay your debts.

    If you can’t pay bills when they fall due, your business may be technically insolvent. Fortunately two simple tests can quickly reveal your solvency.

    1. The Current Ratio test

    This test simply involves dividing your assets by your liabilities (you should find both figures on the balance sheet). For example, if a business has assets of $435,000 and liabilities of $180,000, the current ratio is 435,000 divided by 180,000 = 2.42.

    In other words, the business has $2.42 in assets for every $1 of debt. On the face of it, the business is solvent, as the minimum ratio most banks would regard as acceptable is $2 for every $1 of debt.

    But wait a minute. Your assets include stock (your inventory). What’s your stock really worth? If you had to sell it all tomorrow to pay off your debts, could you really get out the full amount shown on the balance sheet?

    1. The Quick Ratio test

    Let’s try a tougher test – this time leaving out your stock. The aim here is to find out if your business has enough quick money (ready cash) to pay your bills if your creditors demanded repayment tomorrow. Let’s say the business has $325,000 in stock. Subtract this from the assets figure of $435,000 and the assets reduce to $110,000.

    Now for the Quick Ratio: $110,000 divided by $180,000 = 0.61.

    Hmm − the picture is no longer so rosy. The business has only 61 cents in ready cash for every dollar of debt, meaning it could not immediately pay its debts.

    Your aim should be to have at least $1 in assets available in quick cash for every $1 of debt, a ratio of 1:1. You’ll sleep better, and so will your bank manager.

    Strengthening your balance sheet

    A positive step to strengthen your balance sheet is to take a closer look at the quality of your inventory. If you had to sell all your stock in the next week or month to pay your debts, would you get the full amount shown on the balance sheet? In many businesses, the answer would be no.

    If you know you have obsolete or slow-moving inventory sitting on your shelves, talk to us about ways to get rid of it. We can discuss ways to reduce or get rid of obsolete stock, such as:

    • Holding a sale.
    • Bundling unwanted stock with more popular items as a ‘special offer’.
    • Choosing the most advantageous time of year to write it off if necessary.

    We can also show you how to measure the stock turn rate in your business to improve stock management and profitability. In broad terms, the faster you turn over your stock, the more efficient your business. A fast turnover rate can also reflect more efficient inventory management.

    Closing tips

    1. Many business people find a balance sheet more difficult to read than a profit and loss account. If this applies to you, we can help you understand it better so you can gain more from the figures.
    2. Getting a balance sheet just once a year is certainly not enough! A balance sheet offers important insights into your business. With the right accounting software you can generate a balance sheet whenever you need one

     

    A Balance Sheet can be an essential financial document, as it entails the financial position of the business. S & H Accountants offer services to businesses, where we assist with their financial documents. S & H Accountants have a great team, as it consists of well-qualified, vastly experienced and extremely punctual. We always aim to provide our clients with the best level of service possible. Book an appointment today with S & H Accountants, you can contact us on 03 8759 5532 or you can email us on info@sahtax.com.au

  • Three Ways an Accountant Can Save You Money

    Three Ways an Accountant Can Save You Money

    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 can help you save money that you can reinvest back in your business.

    Finding money

    There’s no one more suited to discovering “found” money than an accounting professional. Hire an accountant to sort your books and systemize your bookkeeping; better record keeping is the easiest way to allow you to quickly see – on a monthly, weekly or daily basis – where your money is going so you can cut costs. Keeping your accounts up to date will also help you understand which of your business investments yield the greatest returns so you can be more strategic about spending. An accountant can spot trends that you can take advantage of to earn greater profits – and even find savings with vendors, staff and operating expenses. Hiring someone to manage your accounts will also reduce the costly errors that are commonplace when business owners try to manually track their expenses.

    Avoid tax penalties

    Your accountant may be your trusted advisor when it comes to staying up to date with the latest regulations for small business taxes. She can also provide you with expert advice on how to maximize your benefits and minimize your taxes each year. Don’t underestimate the cost savings of hiring someone to complete your tax forms correctly and submit them on time. Penalties for small businesses who neglect to file their taxes on time – or at all – can quickly add up; the longer you wait to file, the more interest you’ll be charged and the likelihood you’ll incur additional penalties. A business that is already struggling may not be able to pay a tax fine and find themselves closing their doors. If your small business is ever audited, having an accountant on board will let you rest easy knowing you won’t be hit with a penalty for errors or omissions.

    Business advisory services

    Your accountant possesses business knowledge that can help you make more informed decisions. Rely on your accountant for advice when you draft or revise your business plan; those key insights on assessing profitability will help you move your business in the right direction – and avoid wasting time and money on strategies with a lesser chance of success. Look to your accountant to help you determine your most valuable clients, how much money you need to invest in a growth plan and which marketing strategies yield the best ROI. Having someone you can rely on to help set targets and monitor your progress is an invaluable asset that can help you not only save money, but earn higher profits.

    The bottom line? Your accountant can do much more for you than simple bookkeeping or ensuring you’re on the right side of the tax authorities. Hire a small business accountant and you’ll be doing a lot to help increase your chances for long term growth and success.

    Need an accountant? S & H Tax Accountants, are one of the best firms in Cranbourne. Our team consists of accountants that are well-qualified, vastly experienced and extremely professional. We offer all taxation services for individuals, businesses as well as trusts, we also offer bookkeeping services. Our firm aims to provide all of our clients with the best level of services possible, so that we can reach the outcomes that you desire. Book an appointment today with S & H Accountants, contact us on 03 8759 5532 or you can email us on info@sahtax.com.au

  • Tax Season Tips for Small Business Owners

    Tax Season Tips for Small Business Owners

    Preparing for tax season is really a year-round endeavor. Tip number one for SMB owners is to update financials on a monthly basis, using a streamlined software or cloud-based system.

    This way, come tax time, everything you need is all in one place. And well organized SMBs are better positioned to minimize their tax bill while avoiding penalties associated with missing or inaccurate information.

    Here are four more ways to take the stress out of tax time, and get the most out of your return.

    Know your credits & deductions

    Small businesses typically benefit from a wide range of tax credits. From special allowances for research and development, to programs that supplement wages for student employees and apprentices, knowing which credits apply to your business can save you a bundle on taxes.

    It’s also important for SMBs to be savvy about deductions. After all, you want to keep as much of your hard-earned revenue as possible. Often-overlooked items you may be able to deduct include:

    • Seminars, classes or conventions you attended to improve your professional skills;
    • Unused inventory that you’ve donated to charity (a good reason to consider donating your overstock, rather than paying for storage); and
    • Capital assets, such as office furniture, computers, and equipment.

    Speak to your accountant about the full range of available deductions you can plan for each tax year.

    Be careful about what you claim

    If you run your business out of your home, you may be able to claim a portion of expenditures like utilities, insurance, property tax, and rent. But you’ll need to keep good records, and all your receipts, to justify why you’ve allocated business costs to your home office.

    The same goes for home office computers and mobile phone expenses. Tax authorities will want to see how you’ve separated the personal and professional use of these assets when you claim them as work expenses.

    Want to claim drive-time as a work expense? Ensure you submit a log of your business-related mileage, so you can clearly demonstrate how your personal vehicle was used for professional purposes.

    Don’t miss the deadline!

    This should go without saying, but every year SMBs are hit with serious penalties for filing taxes late. Missing the deadline can have a range of negative repercussions, including:

    • Added interest to amounts owing, plus a late payment penalty;
    • Losing your claim to a refund;
    • Loss of credits toward retirement or disability benefits; and
    • Delay of loan approvals (lenders require a copy of your filed tax return in order to process your application).

    Seek expert advice well in advance

    A recent survey of small business owners found that a full quarter don’t understand their tax obligations. What’s more, 27% only speak to their accountant at the last minute, just before the filing deadline.

    Software has made it easier than ever for small business owners to file for themselves, but when it comes to thoroughness and accuracy, nothing can replace the expert advice of an accountant.

    Consult a professional well in advance, to ensure you’re getting the most out of your tax return, and that your documentation is complete. On the bright side, accounting fees are often tax deductible!

    When it comes to tax season, it is very important that you are aware of your financial position, the lodgment due dates and if you need the assistance of an accountant. S & H Accounting provide all tax services whether it be individual, a company or even a trust, S & H Accounting are the one for you. Our team consists of well-qualified, vastly experienced and extremely professional individuals. We aim to provide the best possible level of service to our client, as we believe that our growth is by achieving your desired outcome’s. Book an appointment with S & H Accountants Today, call us at 03 8759 5532 or you can email us at info@sahtax.com.au

     

  • Use your Accounting Software to Boost Sales

    Use your Accounting Software to Boost Sales

    If you think accounting software is just for tracking expenses and generating financial reports, you’re losing out on an opportunity to improve your bottom line. By taking advantage of insights provided by your software solution, you’ll benefit from a more informed approach to marketing and customer service – and by making the most of all the ways your software can improve productivity you can take meaningful action to increase profits. Here’s how.

    Understand buyer behavior

    In addition to storing real time financial data, your accounting software can also retain important information about your clients. Insights into your customer buying history and preferred payment methods, for instance, can help you tailor your marketing strategies to each type of client you serve. Use what you know about customers to set up a segmented mailing list. Marketing directly to the clients who tend to hire you for a particular service is a much more effective way to make sales than approaching your customers with a one-size-fits-all email campaign or in-store promotion.

    Reporting capabilities built in to your accounting software can show you who your best customers are and your most popular products. With this key info, you’ll hit your sales targets by only promoting the goods and services that you know your customers really want. The real time data your accounting software provides can also translate to an improved overall experience that will win over your customers. For instance, when a client gets in touch with a question you’ll be able to respond quickly with useful, accurate background info. With more in-depth knowledge of your customers you’ll be able to cross sell and upsell more easily by suggesting additional products that might meet their needs.

    Free up time to reach more customers
    One of the great things about accounting software is how much time you’ll save by automating processes like invoicing and payroll. And if your software solution integrates with your other small business apps as well as your CRM, ERP or POS systems, your business will be even more productive. By getting more efficient, you’ll have more time to touch base with customers and find new clients.

    Consider making the most of that extra time in your schedule to

    • organize professional development opportunities that improve your team’s sales skills
    • update your business plan based on real time financial data and enhanced reporting
    • determine the best on and offline marketing strategies for your business based on what you know about your customers’ spending patterns
    • implement loyalty rewards for your return customers that you know will appeal to them – a sure fire way to spread positive word of mouth
    • implement growth strategies designed to scale your business and
    • make more informed decisions on every aspect of your business to cut costs, improve productivity and boost your profit margin.

    How will you boost your bottom line?

    Now that you’re fully aware of the customer insights and time-saving capabilities your accounting software provides, what will you do differently to build a more profitable and successful business?

     

    If you own a business, it can be difficult to manage your finances, as sometimes things may get lost or can be forgotten about. That is why it is important to use an accounting software. If you need assistance in managing your finances and accounts, contact S & H Accountants today, we use such accounting softwares that help us to provide you with the best level of service possible. Book an appointment today with S & H Tax Accountants, contact us on info@sahtax.com.au or call us 03 8759 5532

  • What is taxable payment annual reporting ot TPAR?

    What is taxable payment annual reporting ot TPAR?

    This is the report lodged to ATO for the contractor payments you have made during the financial year. This tells ATO about the payments are made to the contractors for providing services.

    Contractors can include subcontractors, consultants and independent contractors. They can be operating as sole traders (individuals), companies, partnerships or trusts.

    Am I required to lodge the Payment Annual Reporting or TPAR?

    You only need to lodge if your business is in the following category. Here are the businesses who need to lodge a Taxable payment annual report (TPAR) by 28 August each year if you are a:

    Business providing:

    • building and construction services
      • cleaning services – for contractor payments from 1 July 2018 (first report due by 28 August 2019)
      • courier services – for contractor payments from 1 July 2018 (first report due by 28 August 2019)
      • road freight services – for contractor payments from 1 July 2019 (first report due by 28 August 2020)
      • security, investigation or surveillance services – for contractor payments from 1 July 2019 (first report due by 28 August 2020)
      • information technology (IT) services – for contractor payments from 1 July 2019(first report due by 28 August 2020)

    What information do I need from Contractor?

    The details you need to report about each contractor are generally found on the invoice you should have received from them. This includes:

    • their Australian business number (ABN), if known
    • their name and address
    • gross amount you paid to them for the financial year (including any GST).

    Can S & H Accountants help me?

    Yes, we have extensive experience in this field, and we help you to lodge TPAR as well as BAS and Tax returns for your business. Talk to Accountant at S & H Accountants today to get started.

    If you still have any question, feel free to contact accountant in Cranbourne. We at S & H Accountants have worked with above listed businesses and lodged the TPAR for them. We are experienced accountants in Cranbourne

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