S & H Tax Accountants

Tag: Tax Agent Cheltenham

  • ATO Deductions: What Individuals, Businesses, and Trusts Can Claim

    ATO Deductions: What Individuals, Businesses, and Trusts Can Claim

    When completing an Australian tax return, one of the most important considerations is identifying which expenses are deductible. The Australian Taxation Office (ATO) provides clear guidance on what individuals, businesses, and trusts can claim. Knowing the right deductions not only ensures compliance but can also reduce your taxable income and maximise your refund.

    1. Deductions for Individuals

    Individuals can claim deductions for work-related and personal investment expenses. To be deductible, the expense must:

    • Be directly related to earning income,

    • Not be private or domestic in nature, and

    • Be substantiated with records (e.g., receipts, logbooks).

    Common deductions include:

    • Work-related expenses: Uniforms, protective clothing, tools, union fees, professional memberships, and training courses.

    • Vehicle and travel expenses: Car expenses when using your own vehicle for work purposes (excluding commuting to and from work), and travel costs for work-related purposes.

    • Home office expenses: If you work from home, deductions may include a portion of electricity, internet, phone, and office equipment depreciation.

    • Self-education expenses: Courses or seminars directly related to your current job.

    • Investment-related expenses: Interest on loans for investment properties, management fees, and certain financial advice costs.

     

    2. Deductions for Businesses

    Businesses, whether sole traders, partnerships, or companies, can claim deductions for expenses that are directly connected to generating assessable income.

    Common business deductions include:

    • Operating expenses: Rent, utilities, insurance, advertising, and accounting fees.

    • Employee costs: Wages, superannuation contributions, training, and fringe benefits.

    • Business assets and depreciation: Instant asset write-off (subject to thresholds and eligibility), or claiming depreciation over time.

    • Motor vehicle expenses: Fuel, servicing, registration, and lease costs for business use.

    • Travel expenses: Airfares, accommodation, and meals incurred during business-related travel.

    • Interest and finance costs: Interest on business loans and overdrafts.

    • Bad debts: Debts that cannot be recovered from customers.

    3. Deductions for Trusts

    Trusts, as separate taxable entities, can also claim deductions for expenses incurred in earning income.

    Typical deductions for trusts include:

    • Management and administration costs: Trustee fees, accounting, and legal costs related to managing the trust.

    • Business expenses: If the trust carries on a business, deductions similar to those available for companies (e.g., rent, wages, and operating costs) can be claimed.

    • Investment expenses: Interest on loans used for investment purposes, portfolio management fees, and related costs.

    • Depreciation of assets: Assets held by the trust can be depreciated according to ATO rules.

    • Distributions: While not a deduction itself, trusts can distribute income to beneficiaries, effectively shifting the tax liability to them.

    Are you confused on what expenses you can claim and what you can’t. Contact S & H Tax Accountants, we are always here to assist you. We have a wonderful team of well-qualified, very professional and vastly experienced individuals. Our priority is always our clients, therefore book an appointment with us today! Call us on 03 8759 5532 or you can email us on info@sahtax.com.au

  • Tax Season has commenced

    Tax Season has commenced

    Tax season has officially commenced in Australia, marking the start of the 2025–26 financial year on July 1. This period is crucial for individuals and businesses to prepare and lodge their tax returns for the 2024–25 financial year, which concluded on June 30, 2025

    🗓️ Key Tax Dates for 2025

    • Lodgment Start Date: Taxpayers can begin lodging their tax returns from July 1, 2025.

    • Self-Lodged Returns: If you’re lodging your tax return independently (e.g., via myGov), the deadline is October 31, 2025. Missing this date may result in penalties.

    • Using a Registered Tax Agent: Engaging a registered tax agent before October 31, 2025, may grant you an extension to lodge your return, potentially up to May 15, 2026, depending on your circumstances.

    ⚠️ Consequences of Late Lodgment.

    Failing to lodge your tax return on time can lead to a Failure to Lodge (FTL) penalty, starting at $313 and potentially increasing to $1,565 for prolonged delays. The Australian Taxation Office (ATO) may also issue a default assessment with a 75% administrative penalty, which could trigger audits or legal action.

    ✅ Tips for a Smooth Tax Season

    • Gather Necessary Documents: Ensure you have all relevant income statements, receipts, and records of deductions.

    • Wait for Pre-Filled Information: The ATO recommends waiting until the end of July to lodge your return, as most income data (like employer and bank information) is pre-filled by then, reducing errors.

    • Beware of Misinformation: Avoid relying on unverified tax advice from social media or unqualified sources.Incorrect claims can lead to penalties or audits.

    🛍️ EOFY Sales and Tax Deductions

    The End of Financial Year (EOFY) sales, which concluded on June 30, 2025, offered significant discounts on various products, including electronics and office equipment. Purchases made during this period for work-related purposes may be tax-deductible. Ensure you retain receipts and consult with a tax professional to determine eligibility.

    🧾 Need Assistance?

    If you’re uncertain about your tax obligations or need help with lodging your return, consider consulting a registered tax agent like ourselves S & H Tax Accountants. We are able to assist you in your tax obligations as we always prioritise our client’s growth and goals. Our team consists of well-qualified, vastly experienced and very professional individuals. Book your appointment today at S & H Tax Accountants, call us on 03 8759 5532 or you can email us on info@sahtax.com.au.

  • How the 2024–25 Financial Year Has Come to an End

    How the 2024–25 Financial Year Has Come to an End

    Reflecting on the Key Themes and What’s Next for Australian Taxpayers

    As of 30 June 2025, the 2024–25 financial year has officially come to an end. For individuals, businesses, and tax professionals alike, this date marks more than just a page on the calendar — it’s a critical turning point for financial reporting, compliance, and planning.

    Here’s a look at how this financial year has wrapped up and what lies ahead:

    Key Themes of 2024–25

    1. Cost-of-Living Relief and Tax Changes

    A major feature of the year was the government’s continued focus on cost-of-living pressures. With inflation gradually easing but still impacting households, the Australian Government introduced targeted relief measures. The revised Stage 3 tax cuts took effect from 1 July 2024, offering middle-income earners a modest tax reduction. This has played a role in adjusting tax planning strategies across the board.

    2. Superannuation and Retirement Planning Updates

    There were also important changes to superannuation. The Superannuation Guarantee (SG) rate increased to 11.5%, and more attention was placed on boosting retirement savings through concessional and non-concessional contribution caps. Many Australians took advantage of downsizer contributions, especially as property market activity remained strong in some regions.

    3. New Compliance Measures

    The ATO ramped up its focus on data-matching and tax avoidance, particularly in areas such as cryptocurrency, rental income reporting, and contractor payments. Many businesses faced extra scrutiny under the Taxable Payments Annual Reporting (TPAR) regime, and Director IDs became mandatory for new company directors.

    4. Small Business Support and Instant Asset Write-Off

    This year saw the temporary extension of the $20,000 instant asset write-off for small businesses with aggregated turnover below $10 million. Many SMEs used this incentive to invest in tools, equipment, and technology to support productivity and growth.

    End-of-Year Considerations

    With the end of the financial year, individuals and businesses should now turn their focus to:

    • Finalising income and expenses: Ensuring all deductions, receipts, and income streams are accounted for, particularly for rental properties, investments, and sole traders.

    • Superannuation top-ups: Checking if contribution caps were fully utilised before 30 June.

    • Lodgement obligations: Individual tax returns are due from 1 July 2025, with deadlines varying depending on whether you lodge yourself or via a registered tax agent.

    • Trust distributions: Trustees should ensure resolutions were prepared before year-end to distribute trust income effectively.

    Looking Ahead: 2025–26 and Beyond

    As we move into the new financial year, it’s an ideal time to reassess your financial goals, review budgets, and prepare for any upcoming changes in tax law or policy. With the next federal election on the horizon, economic and tax reform debates are expected to gain momentum.

    Whether you’re an individual taxpayer, a small business owner, or an investor, seeking proactive advice can make a significant difference in the year ahead.

    Need Support?
    If you need help preparing your tax return, finalising business reports, or planning for the year ahead, now is the perfect time to speak with a qualified accountant. S & H Accountants can assist you in taxation obligations, as we prioritise your growth and progress. Our team consists of well-qualified, vastly experienced and very professional individuals. Book an appointment today, call us on 03 8759 5532 or you can email us on info@sahtax.com.au.

  • Understanding TPAR: What It Is and Why It Matters

    Understanding TPAR: What It Is and Why It Matters

    Each year, businesses in certain industries across Australia must submit a Taxable Payments Annual Report (TPAR) to the Australian Taxation Office (ATO). This report plays a vital role in helping the ATO monitor tax compliance within key sectors, ensuring businesses and contractors are meeting their tax obligations.

    What Is TPAR?

    The Taxable Payments Annual Report is a mandatory report that details payments made to contractors and subcontractors for services during a financial year. It is primarily aimed at combating the cash economy and promoting transparency in industries where non-reporting of income has historically been a problem.

    Who Needs to Lodge a TPAR?

    As of the 2024–25 financial year, TPAR reporting is required for businesses that make payments to contractors in the following industries:

    • Building and construction services

    • Cleaning services

    • Courier services

    • Road freight services

    • Information technology services

    • Security, investigation, or surveillance services

    • Mixed services (if a business provides one or more of the above services)

    Even if a business only partially engages in these services, it may still need to lodge a TPAR if those services form a significant part of its operations.

    What Needs to Be Reported?

    The TPAR must include detailed information about each contractor paid during the year, including:

    • The contractor’s name

    • ABN (Australian Business Number)

    • Address

    • Total amount paid

    • Total GST paid

    These details are typically gathered from invoices issued by the contractors. It’s important to note that only payments for services (not goods) are reportable, although payments that include both goods and services may still need to be reported.

    When Is TPAR Due?

    The TPAR is due by 28 August each year, reporting on payments made in the previous financial year (ending 30 June). Failing to lodge the report on time can result in ATO penalties, so it’s critical for businesses to ensure timely compliance.

    How to Lodge a TPAR

    The TPAR can be lodged through:

    • Business or tax agent portals via the ATO’s online services

    • Standard Business Reporting (SBR)–enabled software

    • Online forms on the ATO website

    Accounting software packages often include TPAR reporting tools, allowing businesses to collect and collate the required information throughout the year.

    Why TPAR Matters

    The TPAR system helps create a level playing field by:

    • Improving tax compliance among contractors

    • Reducing tax evasion in high-risk industries

    • Encouraging accurate record-keeping by businesses

    The data provided through TPAR is used by the ATO to pre-fill tax returns, cross-check income reporting, and target audits where underreporting is suspected.

    Final Thoughts

    If your business pays contractors for services in a TPAR-reportable industry, it’s essential to stay informed and compliant. Ensure you are keeping accurate records throughout the financial year, use accounting tools that support TPAR reporting, and consult with a tax advisor or accountant if you’re unsure of your obligations.

    Timely and accurate TPAR submissions not only keep you on the right side of the law but also help support a fair and transparent tax system across Australia. If you need assistance with this, please contact S & H Tax Accountants. We are a wonderful team that consists of well-qualified, vastly experienced and extremely professional team members. Book an appointment today, call us on 03 8759 5532 or you can email us on info@sahtax.com.au

  • Understanding the Deadline for Individual Tax Returns in Australia

    Understanding the Deadline for Individual Tax Returns in Australia

    Understanding the Deadline for Individual Tax Returns in Australia

    Each year, Australian residents are required to lodge their individual income tax returns with the Australian Taxation Office (ATO). Understanding the due dates and associated rules is crucial for staying compliant and avoiding penalties.

    What Is the Deadline for Lodging an Individual Tax Return?

    In Australia, the standard deadline for lodging an individual tax return is 31 October following the end of the financial year, which runs from 1 July to 30 June. For example, for the 2024–25 financial year (which ends on 30 June 2025), the deadline for lodging a return is 31 October 2025.

    What If You Miss the 31 October Deadline?

    If you miss the deadline and haven’t arranged to lodge through a registered tax agent, you may face penalties or interest on any tax owed. However, the ATO generally applies penalties at its discretion and considers factors such as:

    • Whether you have a history of late lodgements

    • Whether you are owed a refund

    • The reasons for the delay

    Using a Registered Tax Agent

    One way to extend your lodgement deadline is to engage a registered tax agent. If you do so before 31 October, your agent can often secure an extended deadline on your behalf—sometimes as late as May the following year, depending on your circumstances and whether you have outstanding prior-year returns.

    However, you must be on the tax agent’s client list before 31 October to qualify for this extension.

    Early Lodgement and Pre-filling

    While the financial year ends on 30 June, tax returns can generally be lodged from 1 July onward. However, many individuals wait until late July or early August to lodge, allowing time for income data (e.g., from employers, banks, and government agencies) to be pre-filled by the ATO. This can reduce the likelihood of errors and the risk of audit.

    Key Takeaways

    • 31 October is the main deadline for lodging individual tax returns if lodging yourself.

    • Using a registered tax agent can extend your lodgement deadline.

    • Lodging early is possible, but pre-filled data may not be fully available until later in July.

    • Late lodgement may attract penalties, but the ATO can apply discretion.

    Final Tip

    If you need to lodge your Tax Return, contact S & H Accountants now. We have a wonderful team that consists of well qualified, extremely professional and vastly experienced. If you’re unsure of your obligations or feel overwhelmed, consulting with S & H Accountants is the best idea.  Staying informed and organized is the best way to ensure you meet your tax obligations without stress. Contact S & H Accountants today on 03 8759 5532 or you can email us on info@sahtax.com.au

  • S & H Tax Accountants

    S & H Tax Accountants

    S & H Tax Accountants, established in 2013, is a reputable accounting firm based in the southeastern suburbs of Melbourne, Australia. With a focus on assisting small businesses and individuals, they have built a reputation for leveraging technology to streamline financial processes and support business growth.

     

    Services Offered

    The firm offers a comprehensive range of services tailored to meet diverse financial needs:

    • Individual Tax Returns: Their team of accredited tax specialists simplifies the tax filing process, ensuring compliance and maximising potential refunds.

    • Business Accounting and Compliance: S & H Tax Accountants provide essential services such as bookkeeping, financial statement preparation, and tax compliance to help businesses maintain accurate financial records and meet regulatory requirements.

    • Specialised Services: They cater to specific sectors, offering expertise in property tax and accounting services for medical professionals, ensuring tailored financial strategies for these industries.

    Technological Integration

    Embracing modern accounting solutions, S & H Tax Accountants is recognised as a Xero-certified advisor. This certification highlights their proficiency in utilising Xero’s cloud-based accounting software to enhance efficiency and provide clients with real-time financial insights.

    Client-Centric Approach

    The firm’s philosophy is based on client education and empowerment. By staying abreast of evolving tax laws and industry best practices, they ensure clients are well-informed and positioned for financial success. Their commitment to continuous professional development reflects their dedication to delivering accurate and up-to-date advice.

    Leadership

    Under the guidance of Parminder Hehar, a Member of the Institute of Public Accountants (MIPA) and a registered tax agent, the firm combines expertise with personalised service. This leadership ensures that clients receive knowledgeable and trustworthy financial guidance.

    Locations and Contact Information

    S & H Tax Accountants operates primarily from their Cranbourne office, with an additional branch in Cheltenham available by appointment:

    • Cranbourne Office: Level 1, 63B High Street, Cranbourne, VIC 3977

    • Cheltenham Branch: 140 Centre Dandenong Road, Cheltenham, VIC 3192

    Clients can reach out via phone at 03 8759 5532 or email at info@sahtax.com.au for consultations or inquiries.

    In summary, S & H Tax Accountants stands as a trusted partner for individuals and businesses in Melbourne, offering a blend of technological adeptness and personalised financial services to foster growth and compliance.

  • What are the different type of taxation obligations in Australia

    What are the different type of taxation obligations in Australia

    Different Types of Taxation Obligations in Australia

    Australia, like many countries, relies on a robust tax system to fund essential public services, infrastructure, and social welfare programs. The Australian taxation system is progressive and multifaceted, with different taxes imposed at the federal, state, and local levels. Understanding the various types of tax obligations is essential for individuals, businesses, and organizations to ensure compliance and optimize their financial planning. In this article, we’ll explore the different types of taxation obligations in Australia, highlighting the major taxes and how they affect taxpayers.

     

    1. Income Tax

    Income tax is one of the primary forms of taxation in Australia. It is levied on the earnings of individuals, businesses, and corporations, and is a major source of revenue for the government. The Australian Taxation Office (ATO) is responsible for administering income tax.

    • Personal Income Tax:
      • Individuals in Australia are taxed on their taxable income, which includes wages, salaries, business income, investment income, and certain government benefits.
      • The income tax system in Australia is progressive, meaning the rate of tax increases as income rises. The rates for individuals (as of the 2023-2024 financial year) range from 0% for income below a certain threshold, to 45% for income above AUD 180,000. There is also a Medicare Levy of 2% applied to most taxpayers’ income, which helps fund the country’s public health system.
      • Taxable income can be reduced by deductions for work-related expenses, charitable donations, and certain other expenses, as well as tax offsets for eligible individuals.
    • Corporate Income Tax:
      • Australian companies pay tax on their profits, with the standard corporate tax rate being 30%. Small businesses with an annual turnover of less than AUD 50 million may qualify for a lower tax rate of 25%.
      • Companies can also claim deductions for legitimate business expenses, such as wages, rent, and operating costs, to reduce their taxable income.

    2. Goods and Services Tax (GST)

    Goods and Services Tax (GST) is a value-added tax applied to most goods and services sold in Australia. It is one of the most widely encountered taxes for businesses and consumers alike.

    • GST Rate: The standard rate for GST is 10%, which is added to the price of most goods and services.
    • Who Pays GST: The tax is ultimately paid by the consumer, but businesses are responsible for collecting and remitting it to the ATO. Businesses that are registered for GST must charge GST on their taxable sales and can claim GST credits for the GST paid on business-related purchases.
    • GST Exemptions: Some goods and services are exempt from GST, including certain healthcare services, educational courses, and basic food items.

    3. Payroll Tax

    Payroll tax is a state-based tax levied on businesses with a certain level of payroll. This tax is paid to the state or territory in which the business operates, not the federal government.

    • Who Pays: Employers are required to pay payroll tax if their total taxable wages exceed the threshold set by the state or territory in which they operate. This threshold can vary significantly from state to state, but in many places, it starts around AUD 1.5 million annually.
    • Rate: The payroll tax rate typically ranges from 4% to 6%, depending on the jurisdiction. For example, in New South Wales, the rate is 5.45%, while in Victoria, it is 4.85%.

    4. Capital Gains Tax (CGT)

    Capital Gains Tax (CGT) is a tax on the profit made from the sale of certain assets, such as real estate, shares, and business assets.

    • Who Pays CGT: Both individuals and businesses are subject to CGT when they dispose of an asset and make a capital gain. The tax is calculated on the difference between the asset’s purchase price (or cost base) and the sale price.
    • Exemptions: Primary residences are generally exempt from CGT (though there are exceptions), as are certain assets held for longer than 12 months, which may qualify for a 50% discount on the capital gain.
    • Taxable Event: The tax is triggered when the asset is sold or otherwise disposed of, such as when it is gifted or transferred.

    5. Fringe Benefits Tax (FBT)

    Fringe Benefits Tax (FBT) is a tax paid by employers on certain non-cash benefits provided to their employees or associates. This tax is designed to capture benefits that are provided in lieu of salary or wages, such as company cars, low-interest loans, or subsidized housing.

    • Who Pays: The employer is responsible for paying the FBT, not the employee. However, the cost of FBT can influence an employer’s decision to provide fringe benefits.
    • Rate: The current FBT rate is 47%, which reflects the total grossed-up value of the benefits provided to employees.

    6. Stamp Duty

    Stamp duty is a tax levied by state and territory governments on certain legal documents and transactions, such as the transfer of property and vehicles.

    • Property Stamp Duty: When purchasing property, buyers must pay stamp duty, which is calculated as a percentage of the property’s purchase price or market value. The rate varies between states and can be a progressive tax, where the rate increases as the property value rises.
    • Vehicle Stamp Duty: Buyers of new or used vehicles must also pay stamp duty, based on the value of the vehicle or its market price.

    7. Superannuation Contributions Tax

    In Australia, superannuation is a system that requires employers to contribute a portion of employees’ wages into a superannuation fund to support the employee’s retirement. Contributions to super are taxed at a lower rate than ordinary income.

    • Employer Contributions: Employers must contribute 11% of an employee’s earnings (as of 2023) into a superannuation fund. This is known as the Superannuation Guarantee (SG).
    • Tax on Contributions: Contributions made by employers to employees’ super accounts are taxed at a flat rate of 15% for most people, which is lower than the individual income tax rates. However, individuals earning more than AUD 250,000 per year are subject to an additional 15% tax on contributions above this threshold.

    Conclusion

    Australia’s tax system is comprehensive and designed to cater to various aspects of personal, business, and economic activity. Understanding the different types of tax obligations—such as income tax, GST, payroll tax, and others—is essential for ensuring compliance with the law and minimizing the risk of penalties. For individuals, businesses, and investors alike, staying informed about the changing tax landscape and seeking professional advice when needed can help make the most of available tax deductions and exemptions, ultimately contributing to a more efficient and fair tax system for all Australians.

    If you need assistance in makings sure which tax obligations are eligible for you, then please contact S & H Tax Accountants today. We have an excellent team of well-qualified, vastly experienced and very professional individuals. Book an appointment today with S & H Tax Accountants as we prioritise your growth, call us on 03 8759 5532 or you can email us on info@sahtax.com.au

  • Australian Securities and Investment Commission (ASIC)

    Australian Securities and Investment Commission (ASIC)

    The Australian Securities and Investments Commission (ASIC): Ensuring Fair and Transparent Financial Markets

    The Australian Securities and Investments Commission (ASIC) is the national regulatory authority responsible for overseeing and regulating financial markets, institutions, and consumer protection in Australia. As one of the key pillars of Australia’s financial regulatory framework, ASIC plays an essential role in maintaining the integrity and stability of the country’s financial system. This article will explore ASIC’s key functions, responsibilities, and impact on the Australian financial landscape.

    Overview of ASIC

    ASIC was established in 1998 following the consolidation of several earlier regulatory bodies. It operates under the Australian Securities and Investments Commission Act 2001 and reports directly to the Treasurer of Australia. The Commission’s headquarters are located in Sydney, with offices across the country, ensuring its ability to supervise and regulate Australia’s diverse and dynamic financial environment.

    ASIC is an independent statutory body that is empowered to enforce laws and regulations, monitor financial markets, and protect investors. It has broad authority over a range of financial entities and activities, including stock exchanges, investment banks, insurance companies, financial advisers, and superannuation funds.

    Key Functions and Responsibilities

    ASIC’s role is multifaceted, but its key responsibilities can be broadly categorized into regulation, enforcement, and consumer protection.

    1. Regulation of Financial Markets

    ASIC oversees Australia’s financial markets to ensure that they operate fairly, efficiently, and transparently. It is responsible for enforcing market rules that promote integrity and prevent market manipulation, insider trading, and other unethical practices. ASIC works closely with other regulatory bodies, including the Reserve Bank of Australia (RBA), Australian Prudential Regulation Authority (APRA), and Australian Competition and Consumer Commission (ACCC), to maintain a stable financial environment.

    One of ASIC’s most important roles is its oversight of the Australian Securities Exchange (ASX), the primary securities exchange in Australia. The Commission ensures that listed companies comply with corporate governance rules, disclosure requirements, and financial reporting standards. It also monitors trading activities to detect and prevent illegal practices like insider trading and market manipulation.

    2. Financial Services Licensing and Supervision

    ASIC is responsible for granting licenses to financial services providers in Australia. This includes investment advisers, brokers, fund managers, and insurance companies. To receive a license, these entities must demonstrate compliance with rigorous standards relating to honesty, competence, and financial soundness.

    Once licensed, financial service providers are subject to ASIC’s ongoing supervision. This includes ensuring they adhere to Corporations Act provisions, such as those concerning disclosure of fees, conflicts of interest, and fiduciary duties. ASIC also works to ensure that these businesses maintain appropriate conduct when dealing with investors and consumers.

    3. Consumer Protection

    One of ASIC’s central objectives is to protect consumers from financial harm. This includes safeguarding individuals from misleading financial advice, fraudulent investment schemes, and other unfair practices. ASIC enforces strict rules governing advertising and financial promotions to ensure they are not deceptive or misleading.

    ASIC also educates consumers about their rights and responsibilities in financial transactions. It provides resources on topics such as investment risk, superannuation, credit, and financial literacy. Its MoneySmart website is a key tool for empowering Australians with the knowledge to make informed decisions about their finances.

    In addition, ASIC handles consumer complaints and disputes regarding financial services. It has the authority to take action against businesses that engage in unethical conduct or fail to meet their obligations under the law.

    4. Enforcement of Financial Laws

    ASIC is empowered to take enforcement action against individuals and entities that violate Australian financial laws. This includes initiating investigations into suspected corporate wrongdoing and bringing enforcement actions before the courts.

    ASIC’s enforcement powers are broad and include penalties such as fines, disqualification from director positions, and criminal charges. It can also take civil action to seek financial compensation for affected investors. Over the years, ASIC has successfully prosecuted high-profile cases involving corporate fraud, market manipulation, and breach of fiduciary duties.

    ASIC’s Approach to Regulation

    ASIC employs a risk-based approach to regulation. This means it prioritizes its efforts based on the potential risk posed by financial products, services, and practices. By identifying areas of high risk, ASIC can allocate its resources effectively to protect investors and ensure the stability of the financial system.

    ASIC has also embraced technological advancements and modern regulatory practices. For example, it has adopted data analytics tools to monitor market behavior in real time and identify unusual trading patterns. Additionally, it is increasingly focused on fintech (financial technology) and regtech (regulatory technology), leveraging technology to streamline regulatory processes, improve compliance, and promote innovation in the financial services industry.

    Key Achievements and Challenges

    Achievements:

    • Stronger Corporate Governance: Through its oversight, ASIC has contributed to significant improvements in corporate governance standards across Australian companies. It has worked to ensure that listed companies meet high standards of transparency and accountability in their financial reporting.
    • Prosecution of Financial Misconduct: ASIC has led numerous high-profile legal actions against entities involved in financial misconduct, including corporate fraud, insider trading, and breaches of duty. This enforcement has sent a strong message that financial misdeeds will not be tolerated.
    • Investor Education and Protection: ASIC’s commitment to consumer education through initiatives like MoneySmart has empowered Australians to make better financial decisions and protect themselves from scams and fraud.

    Challenges:

    • Adapting to Technological Change: The rise of fintech and cryptocurrency markets has presented new regulatory challenges for ASIC. It has had to adapt its regulatory frameworks to keep pace with these emerging technologies while ensuring the protection of consumers and the integrity of financial markets.
    • Resource Constraints: Despite its broad mandate, ASIC has sometimes faced criticisms about insufficient resources to tackle the scale and complexity of its regulatory responsibilities. Some stakeholders argue that ASIC could do more to prevent misconduct before it happens, rather than reacting after the fact.

    ASIC in the Global Context

    ASIC is an active participant in the international regulatory community. It is a member of key global bodies such as the International Organization of Securities Commissions (IOSCO) and the Financial Stability Board (FSB), and it works collaboratively with regulatory authorities in other countries. This international cooperation is particularly important given the increasingly global nature of financial markets and cross-border financial crimes.

    Conclusion

    The Australian Securities and Investments Commission (ASIC) plays a crucial role in maintaining the integrity, stability, and fairness of Australia’s financial markets. Through its regulatory oversight, enforcement activities, and commitment to consumer protection, ASIC ensures that financial markets operate efficiently and transparently. While the challenges facing ASIC are evolving, particularly with the advent of new technologies, the Commission remains an essential body for safeguarding the interests of Australian investors and consumers, ensuring a robust and well-functioning financial system for the future.

  • Business Activity Statement

    Business Activity Statement

    Understanding the Business Activity Statement (BAS) in Australia

    In Australia, businesses registered for Goods and Services Tax (GST) are required to lodge a Business Activity Statement (BAS) periodically. The BAS is a key document for reporting tax obligations, including GST, Pay As You Go (PAYG) withholding, PAYG instalments, Fringe Benefits Tax (FBT), and other levies to the Australian Taxation Office (ATO). It helps ensure that businesses comply with their tax responsibilities and avoid penalties for late or incorrect reporting.

    In this article, we will explore what the BAS is, why it is important, how to complete it, and the deadlines for lodging it.

    What is a Business Activity Statement (BAS)?

    A Business Activity Statement (BAS) is a form that businesses use to report their tax obligations to the ATO. Depending on the size and type of business, it can be lodged monthly, quarterly, or annually. The BAS provides a way for the ATO to track taxes collected and paid by businesses, such as GST, as well as other tax liabilities.

    Key Purposes of the BAS:

    1. Reporting GST: Businesses collect GST on their sales and pay GST on their purchases. The BAS allows businesses to report the difference between the GST collected and the GST paid.
    2. PAYG Withholding: Employers must report amounts withheld from their employees’ wages for income tax purposes.
    3. PAYG Instalments: Businesses may be required to make periodic tax payments based on their income or profits.
    4. Fringe Benefits Tax (FBT): If a business provides fringe benefits to employees, such as cars or other non-salary benefits, they must report and pay any applicable FBT.

    Why is the BAS Important?

    1. Tax Compliance: The BAS helps businesses meet their legal obligations for taxes like GST, PAYG, and FBT. Failing to lodge a BAS on time or incorrectly reporting tax can lead to penalties and interest charges.
    2. Cash Flow Management: The BAS provides a clear overview of taxes owed and taxes paid, helping businesses manage their cash flow. By regularly submitting the BAS, a business can stay on top of its financial position.
    3. Avoiding Penalties: The ATO imposes penalties for late submission or inaccurate reporting. Lodging your BAS on time ensures your business avoids these financial consequences.
    4. Claiming GST Credits: By reporting the correct GST on purchases and sales, businesses can claim GST credits for the tax they’ve paid on business-related expenses. This can reduce the amount of GST payable to the ATO.

     

    BAS Lodgement Frequency

    Businesses must lodge their BAS according to the frequency set by the ATO. The frequency depends on the business’s annual turnover and its GST registration status.

    1. Monthly: Larger businesses with an annual turnover of $20 million or more generally lodge their BAS monthly.
    2. Quarterly: Most businesses with a turnover under $20 million lodge their BAS quarterly. The quarters are:
      • 1st quarter: July – September
      • 2nd quarter: October – December
      • 3rd quarter: January – March
      • 4th quarter: April – June
    3. Annually: Some small businesses with a turnover under $75,000 (for non-GST registered businesses) or those that are specifically approved can lodge their BAS annually.

     

    Penalties for Late BAS Lodgement

    Failing to lodge your BAS on time can result in penalties from the ATO. The penalty depends on factors like the size of the business, how late the submission is, and whether the business has a history of non-compliance.

    The ATO may also charge interest on unpaid taxes or late payments, which can add up over time.

    If you are unable to meet the BAS deadline, it is advisable to contact the ATO and explain your situation. In some cases, the ATO may grant an extension or offer a payment plan to help with cash flow issues.

    Conclusion

    The Business Activity Statement (BAS) is a vital component of tax reporting for Australian businesses. It ensures compliance with GST, PAYG, FBT, and other tax obligations. Whether you are a small business owner or part of a large corporation, understanding how to correctly complete and lodge your BAS is crucial to avoid penalties, maintain good standing with the ATO, and manage your business finances effectively.

    By staying organized, keeping accurate records, and ensuring timely lodgement, businesses can not only meet their tax obligations but also gain a better understanding of their financial position, which helps them plan for future growth. Need assistance with your Business Activity Statement’s call S & H Tax Accountant’s today. We offer great service to all of our client’s and have a well equipped team. Book an appointment today, call us on 03 8759 5532 or you can send us an email on info@sahtax.com.au

  • Financial statements showdown: what each report shows you about your business

    Financial statements showdown: what each report shows you about your business

    Understanding financial statements might sound daunting, but it’s crucial for small business owners to stay on top of their game. Each financial report offers unique insights into different aspects of your company’s health. This listicle will break down the essentials, helping you make informed decisions and ultimately steer your business toward success.

    1. Balance sheet

    What is it?

    The balance sheet provides a snapshot of your company’s financial position at a specific point in time. It details what your business owns (assets), what it owes (liabilities), and the equity held by shareholders.

    Why it matters

    • Assessing net worth: By understanding your assets and liabilities, you can easily calculate your company’s net worth.
    • Financial stability: The balance sheet helps you gauge whether your business is financially stable or if it’s relying too much on borrowed funds. 

    Practical tip

    Regularly review your balance sheet to make informed decisions about investing and financing to foster growth. For example, if you notice a high level of liabilities compared to assets, consider strategies to reduce debt.

    2. Income statement

    What is it?

    Also known as the Profit and Loss Statement, the income statement outlines your company’s revenues and expenses over a specific period. It reveals whether your business is making a profit or incurring a loss.

    Why it matters

    • Operational efficiency: By reviewing your income statement, you can identify how efficiently your business is operating.
    • Profitability: It shows your ability to generate profit by increasing revenue or reducing costs.

    Practical tip

    Keep an eye on trends in revenue and expenses. For instance, if your operating expenses are consistently rising, it may be time to re-evaluate your cost management strategies.

    3. Cash flow statement

    What is it?

    The cash flow statement details how cash enters and leaves your business. It is divided into three sections—operating, investing, and financing activities—showing how well your company manages its cash.

    Why it matters

    • Liquidity: It helps you understand your company’s ability to meet short-term obligations.
    • Expense management: By tracking cash flows, you can make more informed decisions about spending and saving.

    Practical tip

    Pay close attention to the cash flow from operations. If you’re consistently seeing negative cash flow, it’s a sign that you need to improve your operational efficiency or adjust pricing strategies.

    4. Statement of changes in equity

    What is it?

    This lesser-known but important report details the changes in the equity section of your balance sheet over a specific period. It includes contributions from shareholders and retained earnings.

    Why it matters

    • Investment decisions: Helps investors understand how their investments are performing.
    • Retention strategy: Shows how profits are being reinvested into the business.

    Practical Tip

    Use this statement to communicate with potential investors. Highlight how you reinvest profits to fuel growth, showcasing your commitment to long-term success.

    5. Financial ratios

    What are they?

    Financial ratios are derived from your financial statements and provide deeper insights into your company’s performance. Key ratios include profitability, liquidity, efficiency, and solvency ratios.

    Why they matter

    • Quick insights: Ratios offer a quick snapshot of your business health.
    • Benchmarking: Compare your ratios with industry standards to see how your business stacks up.

    Practical tip

    Calculate the current ratio (current assets divided by current liabilities) to assess your short-term financial health. A ratio above 1 indicates good liquidity.

    6. Notes to the financial statements

    What are they?

    These notes provide additional context, explaining the methods used in preparing the financial statements and offering detailed breakdowns of certain items.

    Why they matter

    • Transparency: Enhances the transparency of your financial reporting.
    • Clarity: Helps stakeholders understand the numbers better, leading to more informed decisions.

    Practical tip

    Ensure the notes are detailed and clear. Transparency builds trust with investors and other stakeholders, making them more likely to support your business.

    Finally

    Understanding your financial statements is not just about compliance; it’s about gaining the insights needed to make strategic decisions. Whether it’s evaluating your net worth through the balance sheet, assessing profitability via the income statement, or managing liquidity with the cash flow statement, each report offers valuable information.

    Ready to take control of your financial health? If you need advice or assistance, reach out to S & H Tax Accountants today. Our team consists of well qualified, vastly experienced and extremely professional. Book an appointment with us today, contact us on 03 8759 5532 or you can email us on info@sahtax.com.au

  • Insights from your Profit and Loss account

    Insights from your Profit and Loss account

    Most small business people would agree that their Profit and Loss account (now more correctly called a Statement of Financial Performance) is among the easier – if not the easiest – financial document to understand. It’s typically presented in two parts.

    The top half of the statement reveals the various sources of income the business has received for the period covered, such as a quarter, half year or full financial year. After subtracting the cost of producing your goods or services, it shows your gross profit figure.

    The bottom half of the account lists all the relatively fixed running costs (business overheads) such as rent, power and communication costs you need to pay each month regardless of sales levels. When these costs are subtracted from the gross profit the result is a net profit figure (before tax).

    So far, so simple, but you can learn more.

    How well is the business performing?

    These two results enable you to work out two key performance indicators (KPIs) that offer important insights into how your business is performing.

    The first, your gross profit margin, is the gross profit expressed as a percentage of sales.

    To work this out (if your accounting software doesn’t do this automatically), you divide the gross profit figure by the sales total and multiply by 100 to get the percentage.

    Here’s an example:

    Gross profit: $80,000

    Sales: $400,000

    GP %: 80,000 divided by 400,000 = 0.2 x 100 = 20%

    Multiplying by 100 allows you to study the gross profit margin as a percentage, so you can easily compare this result with previous margins, irrespective of fluctuating costs or sales levels. Has the margin improved? If not, it’s time to investigate the causes. For instance, has there been an increase in the cost of materials or production labour?

    You can now compare your gross margin to similar businesses, because turning the result into a percentage overcomes any differences in size. Regardless of whether they are smaller or much larger businesses, it’s the gross profit percentage (GP %) that tells the performance story.

    Depending on which sector you operate in, we can help find the average GP percentage for your industry. Your aim should then be to at least equal the industry average, and preferably do even better. You can also aim to improve on your previous gross margin results.

    How profitable is your business?

    The net profit margin reveals how profitable your business is when your overhead costs are deducted from the gross profit. It’s worked out using a similar formula. For example:

    Net profit: $50,000

    Sales: 300,000

    NP %: 50,000 divided by 300,000 = 0.166 x 100 = 17%

    This KPI empowers you to spot trends before they become disasters. If your net profit margin has fallen, you need to dig for the causes. For example, you may find your marketing costs have blown out with no increase in sales. The lesson here would be to measure your marketing and advertising to see what is actually working, so you can drop any unproductive tactics.

    Three tips

    1. Use your gross profit and net profit margins as benchmarks to set improvement goals. Try to improve both on internal benchmarks (your current performance against previous results) and external benchmarks (the average for your industry type).
    2. Don’t rely on just an annual profit and loss account. You can’t effectively drive your business forward using a rear view mirror that reflects dated data – you need more up-to-date figures. Use your accounting software to generate more frequent profit and loss accounts, such as monthly or quarterly statements. These enable you to take prompt action to fix any negative trends before they do serious damage to the business.
    3. Remember to you can always get in touch with us to interpret trends in your results so you can take the right corrective action.

    If you need assistance with your profit and loss statement or even any other financial documents contact S & H Tax Accountants, we are a team of very well-qualified, vastly experienced and extremely professional individuals. We always aim to provide our clients with the best level of service possible. Book an appointment today, call us on 03 8759 5532 or email us on info@sahtax.com.au

     

  • Why your small business needs to switch to online accounting

    Why your small business needs to switch to online accounting

    Running a business is hard enough without having to wrestle with out-of-date accounting records. That’s where cloud accounting comes in—a modern solution that can make your life a whole lot easier. This article explores why small businesses should embrace cloud accounting and how it can drive your success.

    What is Cloud Accounting?

    Cloud accounting involves using online software to manage your financial records. Unlike traditional desktop accounting software, cloud-based solutions store data on remote servers, accessible over the internet. This means you can access your accounting information anytime, anywhere, as long as you have an internet connection.

    Benefits of Cloud Accounting for Small Businesses

    1. Accessibility and Convenience

    One of the most significant advantages of cloud accounting is its accessibility. Business owners and their accountants can access financial data from any device with internet connectivity. Whether you’re at the office, working from home, or on the go, you can manage your accounts seamlessly.

    2. Real-Time Financial Data

    Cloud accounting provides real-time updates on your financial status. This means you can monitor cash flow, track expenses, and review financial reports instantly. Real-time data helps in making informed decisions quickly, which is crucial for staying competitive.

    3. Cost-Efficiency

    Traditional accounting systems often require substantial upfront investment in software and hardware. Cloud accounting solutions typically operate on a subscription basis, which spreads the cost over time and reduces the need for expensive IT infrastructure. Additionally, automatic updates and maintenance are usually included, reducing the need for in-house IT support.

    4. Enhanced Collaboration

    Cloud accounting fosters better collaboration between business owners, accountants, and financial advisors. Multiple users can access the same data simultaneously, facilitating seamless communication and decision-making. This collaborative approach ensures everyone is on the same page, reducing errors and improving accuracy.

    5. Improved Security

    Security is a top concern for any business handling sensitive financial data. Cloud accounting providers employ advanced security measures, including encryption, regular backups, and secure authentication processes. These measures often surpass the security capabilities of small businesses’ internal systems.

    6. Scalability

    As your business grows, so do your accounting needs. Cloud accounting solutions are highly scalable, allowing you to add new features or expand services as required. This flexibility ensures that your accounting system can grow with your business without major disruptions.

    7. Automation of Routine Tasks

    Cloud accounting software automates many routine accounting tasks such as invoicing, payroll, and expense tracking. Automation reduces the risk of human error, saves time, and allows you to focus on more strategic activities that drive business growth.

    8. Integration with Other Business Tools

    Many cloud accounting platforms integrate seamlessly with other business tools such as CRM systems, project management software, and e-commerce platforms. This integration streamlines operations, ensuring that all your business processes are aligned and efficient.

    Practical Tips for Transitioning to Cloud Accounting

    1. Research and Choose the Right Platform: Evaluate different cloud accounting solutions to find one that best suits your business needs. Look for features like ease of use, scalability, integration options, and customer support. We can help you find the right fit.
    2. Train Your Team: Ensure that your team is adequately trained to use the new system. Many providers offer training sessions and resources to help users get up to speed.
    3. Migrate Data Carefully: Plan the data migration process meticulously to avoid any disruptions. Backup your data before migration and verify the accuracy of transferred data.
    4. Leverage Automation Features: Take full advantage of automation features to streamline your accounting processes. Set up automated invoicing, expense tracking, and payroll to save time and reduce errors.
    5. Regularly Review and Update: Regularly review your accounting processes and update them as needed to ensure they continue to meet your business’s evolving needs.

    Conclusion

    Cloud accounting offers a wealth of benefits for small businesses, from improved accessibility and real-time data to cost-efficiency and enhanced security. By transitioning to a cloud-based accounting solution, small businesses can streamline their operations, make informed decisions faster, and ultimately drive growth. If you’re ready to bring your accounting processes into the 21st Century and unlock new efficiencies, consider making the switch to cloud accounting today.

    Need assistance with transitioning to cloud accounting? We are here to help you choose the right solution and ensure a smooth transition. Contact us S & H Accountants to learn how we can support your journey towards more efficient and effective financial management. Book an appointment with us, call us on 03 8759 5532 or you can email us on info@sahtax.com.au

  • How to scale your business with minimal effort

    How to scale your business with minimal effort

    When you’re ready to take your business to the next level, you might start thinking about “scaling”. No, it’s not just a fancy term for growth, it’s about doing more with less. Scaling is about increasing your revenue without needing to proportionately increase your resources—pretty cool, right?

    It’s like sending an email: whether you send it to 100 people or 100,000, your effort is the same. The trick to scaling effectively? Efficiently using your resources without emptying your pockets.

    So, how can you make this happen? Let’s get into it.

    Keep it simple, keep it clean

    Don’t get lost in complexity. More complexities equal more chances for things to go wrong, more time wasted, and more resources spent.

    If you’re scratching your head trying to understand a process or a tool, chances are, so are your employees and customers. 

    Keep it simple to keep control and keep everyone on the same page.

    Automation is your friend

    The future is here, and it’s all about automation. There are tools out there that can take care of your administrative tasks, saving you time and effort. From invoicing to project tracking, automation can streamline your process, making your business more efficient and leaving you with time and energy to spend in other areas,

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

    Data doesn’t lie

    Take out the guesswork and let data guide your decision-making. We’re in the information age, and there’s a metric for nearly everything. Know what’s working and what’s not by looking at how customers engage with your website or which marketing campaigns are most effective. 

    Make smart decisions based on hard facts, not assumptions.

    Offer more, work less

    Imagine increasing customer retention with minimal effort from your end. It’s possible if you scale your offerings. Consider automatic renewals, subscription models, or repeatable pricing packages. Not only will these save you time from manual work, but they’ll also boost customer loyalty.

    In a Nutshell

    Scaling your business is all about smart growth. It’s growing your revenue without growing your expenses at the same rate. 

    The secret to effective scaling lies in maintaining simplicity, embracing automation, making data-driven decisions, and fine tuning your offerings. 

    It’s not just about working hard, but about working smart.

    Need assistance with your small business, then reach out to S & H Accountants. We do not only offer tax services to our businesses, but also offer business services to all of our clients. We always prioritise our clients growth, and thus have such a wonderful team which include, well-qualified, vastly experienced and very professional individuals. If you would like to make an appointment today, then call 03 8759 5532 or you can email us on info@sahtax.com.au.

  • The importance of bookkeeping

    The importance of bookkeeping

    As a business owner, you’ll need to stay informed about your finances and your financial situation. You do this through bookkeeping. Bookkeeping is the process of recording transactions in your business. This includes any transactions, credit card charges and any other financial activity that happens within your company.

    How good bookkeeping helps you

    Bookkeeping is vital for any business. First, it helps you understand your finances. Bookkeeping gives you insights into your income and expenses, such as:

    • How much money you’ve made
    • How much money needs to be paid for bills or salaries 
    • How much money should be put away for taxes or other unexpected costs 

    Bookkeeping also helps keep track of all your business transactions. A good system will serve as an audit trail showing every transaction that has taken place within your company. This includes purchases from suppliers, sales made to customers and bills paid out by suppliers or employees (like salaries). 

    If there are any irregularities such as missing items on purchase orders then this information will quickly become apparent. You get transparency into your business, a way to ensure you remain compliant with laws, and valuable insights to help you make smarter decisions. 

    When to hire a bookkeeper

    There are many scenarios where it makes sense to hire a bookkeeper. These depend on your business set up and your own abilities. 

    You should consider hiring a bookkeeper if you have

    • More than one employee
    • Multiple business locations
    • A complex business structure
    • Concerns about making errors in your books that could lead to fines or penalties
    • Too much work to do and bookkeeping constantly gets pushed to the side
    • A lack of experience with bookkeeping and are uncertain about how to go about it, so you avoid it.

    What a bookkeeper can provide for you

    Expertise

    Bookkeepers are experts 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. 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 good financial 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

    There are many good reasons to hire a bookkeeper. Whether you do it on your own or hire someone, bookkeeping is an essential part of running a successful business. If you’d like to learn more about how we can help you, contact us today for more information. 

    S & H Tax Accountants, also offer bookkeeping services to our clients. Bookkeeping is an essential part of managing a business or even organising expenses for an individual. We have a team of individuals who are well-qualified, vastly experienced and extremely professional. If you need assistance with bookkeeping contact us today and book an appointment today, call us on 03 8759 5532 or email us on info@sahtax.com.au

  • 4 end of the year financial planning tips

    4 end of the year financial planning tips

    The end of the year is typically a reflective time. Something about that lull between holiday festivities and New Year’s Eve sets the stage for introspection and review. While you’re busy reflecting on the year that’s ending and the new one about to begin, make sure you take some time to consider your finances.

    Here are some financial tasks that should be on your must-do list before the calendar rolls over. Read on for some items that really can’t wait.

    1. Take stock of your financial plans

    If you have formal financial plans, take a step back and assess how they’re working for you. If you have a real document in place, that’s great. If your financial plan consists of a loose set of ideas in your head, that’s okay – but consider making that plan a little more concrete for the new year.

    Has anything in your life changed since the beginning of the year? Marriage, the birth of a child, or a change of career are all reasons to revise your financial plans. Or maybe you’re navigating a job loss, an unexpected illness, or the loss of a loved one. Your plan from the beginning of the year may not resonate anymore, for a variety of reasons.

    A lot can change in the course of a year. It’s okay if things change, but it’s important for you to shift as necessary. Your financial plan is a living document and should be updated accordingly. Take some time to reassess and adjust your plan as needed based on what’s happened in the past year.

    2. Check your progress on your goals

    If you’ve been saving for a large purchase or committed to making contributions to a savings account, check how that’s going. It’s easy in January to say that this is the year it’s finally going to happen for you. But it doesn’t mean a lot if you don’t check how you’re doing by year’s end.

    If you made your goals, that’s great! If they fell by the wayside, take a look at what you could have done differently. Or, take some time to set a goal that’s more manageable so that you can get that sense of accomplishment next December.

    3. Review your spending and saving habits

    This is going to be a lot of fun if you made significant contributions to your savings accounts this year. The sense of accomplishment will give you some much-needed momentum to carry those habits into the new year.

    If, however, you were a little more skilled at spending than saving, it might be time to have a talk with yourself. Take a look at where your money went, and if it didn’t go to something that makes you proud, reconsider those habits for next year.

    Yes, it’s hard to deny yourself the things you want. But it’s terrible to be caught without any savings when you need them.

    4. Consider your contributions

    There are many accounts that benefit from a contribution before the year is over. Retirement or education savings plans would be good examples – or a tax-free savings account. This is also a good opportunity to review your charitable giving goals.

    Final Thoughts

    The end of the year is a time of change and new resolutions, but before you do take a look back. Check your progress over the past year – it’s the only way to know if your goals are working out. Before you make new ones, see how you did on the ones you set at this time last year.

    The post 4 end of the year financial planning tips appeared first on Universal Content Master.

    Although the end of the year has finished, it is a good time to sit down with your accountant to make sure that you are ready for the new financial year ahead. S & H Accountants offer tax planning as well all taxation services, we do not only offer this services to individuals but also businesses, trusts and companies. Our staff are very well-qualified, extremely proffesional and vastly experienced. We always aim to provide our clients with the best level of service possible. Book an appointment today, call us at 03 8759 5532 or you can email us on info@sahtax.com.au

  • Finding the right fit: How to choose the right financial planner for you

    Finding the right fit: How to choose the right financial planner for you

    No matter what your financial goals are, consulting with a financial planner can help just about everybody. Not only will they help you refine your goals, they’ll guide you in creating strategies for your money, and keep you accountable to your plan. They’ll also help you navigate different saving and investment strategies, so you know your money is working for you.

    They’ll also make sure you have the information you need to make the best financial decisions for your circumstances, so you can grow your wealth and increase your financial security.

    If you’re looking for a financial planner, these tips can help you find the best person to meet your unique needs.

    Be clear about your goals

    Most people’s big financial goals fall into the following areas:

    • Retirement
    • Buying a home
    • Paying for higher education (for themselves or their children)

    But along the way a lot of other events come up that pull our financial focus, such as buying a car, paying for a trip, or covering expensive home repairs. Whether your goal is to build up your emergency savings account, pay for the trip of a lifetime, or fund your retirement, a financial planner can help you allocate your money wisely.

    Before you start searching for a financial planner, list your financial goals, long-term and short-term. That will give you the framework for finding someone whose expertise matches your objectives.

    Check their qualifications

    There’s no shortage of financial planners out there to choose from – but not every planner is licensed, or has the right credentials, training, or experience to meet your needs.

    With your goals in mind, start researching financial planners in your area who hold relevant professional designations and appropriate qualifications. Check online to see if there’s a complaint record against them, or information that doesn’t match the claims they make. Where you find the complaint record may depend on the government body that oversees their work.

    Ask your friends and family for referrals – ideally people you trust who are in the same stage of life as you are. Visit each financial planner’s website and look for testimonials from people whose circumstances are similar to yours. Double check with the appropriate certifying body that they have the required qualifications.

    Ask questions

    Make a list of candidates and interview at least three financial planners. When you do, ask what qualifications they have, what their approach is, what services they include, and how they can help you achieve your goals.

    Additionally, inquire about

    • what products they offer (and make sure they have the proper certifications to sell them),
    • how they’ll keep you informed,
    • how they decide on appropriate investments or strategies for their clients,
    • whether they’ve ever been disciplined by a regulator (again, you can often verify their answer to this last question online), and
    • how they’ve helped clients in situations similar to yours.

    Find out their payment structure

    Financial planners may charge you for services in a variety of ways, including:

    • An hourly fee
    • A fee based on the value of your assets under their management
    • A commission or trading fee based on buying stock or investments for you
    • A salary from their employer (such as those who work through banks)
    • Statement of Advice fee — A one-off fee for preparing your Statement of Advice. This fee is either paid up-front and deducted from your investments, or added to ongoing fees for service.

    You need to know how they’re paid and what they charge so you can determine if their advice is in any way influenced by outside factors.

    Final thoughts

    Whether you’re looking for help with investment planning, estate planning, retirement planning or other financial guidance, choosing the right financial planner is key to you taking control of your finances. You want someone who understands your financial goals, is experienced in the areas you want guidance, and who you feel comfortable talking openly with. S & H Accountants are the one for you, we offer financial and tax planning, as one of our services. Contact us today to book a consultation with one of our experienced staff members. Call us on 03 8759 5532 or you can email us on info@sahtax.com.au.