Showing posts from July, 2018

They are right, and I am wrong
Accounting, tax and stuff.

So, for almost 23 years, I have been preaching that business owners need to understand financial documents. I have always ensured that our accounting team is capable of educating clients what the profit and loss statement, and balance sheet convey and how to use these documents to extract information at a glance.
Why not – I can.But the thing many of my clients tell me is that they don't understand what these statements mean and indicate. They look at their annual profit and loss statements and are puzzled as to where the money has gone. I try and explain the flow of funds through their balance sheets but I could be speaking another language.
I am currently working with a very successful English insurance brokerage firm and the owner admitted to me that he has no clue what they all mean. Is this a case of I don’t know how an engine works, but I am driving cars, is it that I play Muddy Waters and yet can’t play a guitar?
The truth is most people in business (let me assure you there…

Being chased for tax debt - It’s not that big, I just can’t seem to manage it.

Here is one of the big problems with tax debt. Just when you think you might be ahead, there is another BAS and then another round of interest, and all you do is chase your tail, and have that sinking feeling.
And wham, another letter from the Australian Taxation Office (wonder what colour it is this time) and yet another phone call from them.
But you know, that if you could get your head out of the tax debt problem, you can focus more on the business and could change things. But then there is that phone call, “I think they are going to tell me I missed a payment plan and demand the rest”.

Over the years Your Business Angels have helped so many businesses to get the 'worry' of tax debts out of their business'.
Most often it is about the organisation and completion of accounts.
So with a great professional firm like Your Business Angels, we can find the suitable negotiations and implement simple tax payment programs that are different (and legal), resulting in mountain of pr…

Things to know when dealing with a tax debt

Many business owners allow the tax debt to creep up on them. We say that there is no such thing as a tax debt problem, a tax debt is the result of a business problem that needs to be solved. If a tax debt is occurring in a business, then the fundaments of the business, the amount of funds a business owner is taking or the way the business is trading has a problem.
Understanding how a tax debt works
If you have a tax debt – paying the tax debt will create a tax debt if you pay it out from your business. Future payments of tax debt are not tax deductions, they are paid out of profit, which is then taxed. In a company, when you are paying of a tax debt, you are paying 28% on that tax debt.
Once you have a tax debt there is a lot to deal with.
As a business owner, you are essentially given the job, by the Government to be tax collectors. You collect GST, and claim credits when you have paid GST when billed by creditors. You need to collect PAYG from your employees, pay their super, manage…

Part Three - The nature of Tax Setting you and your business on the road to tax planning

Understanding he three areas of taxBack to Part Two

The three key areas of tax (and yes, we know there are others)
They are:
Your income – a salary paid to you by your company.Transactional tax – this is GST and PAYG in the form of the BAS that is reported monthly or quarterlyAnd what’s left over tax, which in a company is company tax, and this is where in operating an Australian Business you should plan never to pay any tax, or too much tax.
Its here you should have a decent plan to minimise the tax.
This is all the left-over money after you have run your business, paid yourself a salary and are on top of BAS.So let’s break this down these thee areas for you clearly
Your income tax Your income – your salary – what you formally pay yourself as a salary or wage earner in your company.
We have some bad news.But you probably have this figured out.
There is no way around this, what you take for yourself you will pay tax on always – but this can also give you peace of mind, the business give…

Part two - The nature of Tax Setting you and your business on the road to tax planning

The dos and don’tsBack to Part One

True freedom is a freedom with clear boundaries. True freedom understands the real essence of do’s and don’ts. A freedom without restrictions that brings comfort is a freedom in chains.
Ernest Agyemang Yeboah Dos
Use your home budget to set your salary from the company.This salary should cover all your own needs, mortgage, holidays, supermarket, movies and whatever you need for your family. It must be sensible – not too tight that you just start drawing from the company again, but also not to grandiose and beyond the business’ ability to pay.
Make sure that your partner and family know about the changes and get them all on side.Operate your business with one bank account and one cardThis helps with transparency with your businesses. Businesses that shuffle money around accounts create havoc for bookkeepers and accountants. We want a way that get the accounts completed quickly without delay, so you can stay on top of the business, and most importantly…

Part One - The nature of Tax Setting you and your business on the road to tax planning

There is no worse tyranny than to force a man to pay for what he does not want merely because you think it would be good for him.”
― Robert A. Heinlein, Tax never sleeps – it’s always up and about looking to get you.
In business because you want to earn more?
Ever wondered why so few people make so much from business and others don’t?
That’s because a few understand how to organise themselves so that that keep more, when they grow their business or from their successes rather than give it to tax man.
That’s because they understand tax.If you surrender to tax, it will beat you every time. You will pay too much tax, you will play catch-up all the time you will never be like those rich folk who seem to have a magic touch.
So, if you don’t want to read this document and consider following what is set out in front of you, you may
Pay too much taxHave tax control your cash flow in your business and therefor stifle the opportunities you haveLose control from time to time, and pay high late lodg…