Your Business Angels

From the 1 st  July 2018 all employers with 20 or more employees (as of the 1 st  of April 2018) must report their payroll information to the ATO via single touch payroll (STP). STP requires that each time an employer pays their employees, they will have to instantly report to the ATO information such as the salaries and wages, pay as you go (PAYG) withholding and superannuation. The information will need to be reported from software, which is ST- enabled. At Your Business Angels we encourage all our clients to follow this and another process where we provide a percentage figure, so that every time a business banks money it pays that percentage into the ATO running balance account. This amount covers the GST and PAYG. We also ask our clients to pay superannuation every week. This is what we call “kicking into touch” the issues of paying PAYG and GST in big chunks every 3 months (and who can really find the money) so that  our clients have their tax and cash flow under control.

Most business people reading this are either subcontractors in some way or engage with subcontractors to complete work. Even with a push from Fair work, the tax department, unions and so many other organisations to limit the numbers, it is the way we now work and engage with people to help us complete projects, tasks or run a business. The number of people employed by small businesses has declined by 7% over the last decade, so as businesses face uncertain futures and work, contracting seems a logical form of getting a job done. But the dark side of subcontracting we have found  there are many “fringe dwellers” who now play out a game of pretending to have an ABN , and issue a false ABN and even name, when completing some manual work for a short period of time. We have had a large number of clients who have been caught. They have paid people who have or claim they have an ABN or have paid on an invoice and then when they can’t prove the ABN, or find out that the ABN wasn’t r

There is now unprecedented funding for the ATO to carry out audits. Most business owners should be concerned with this, as a  tax audit even for the smallest business,   the costs can run in the thousands of dollars. Audits include record keeping, BAS and GST audits, and the ATO favourite, super and PAYG that are unmanaged can end up in considerable fines and penalties.   Your Business Accounting company Fresh Numbers includes the audit in their fees, as we believe that a close relationship with the client and constant hands on work means that we can finish the audit in no time at all and without any fuss for our clients. Working with Fresh Numbers tax shield not only provides plans to stay on top of tax, but also helps where the ATO is involved from inquiries to Audits.

OK, here is the simplest thing I can say, you turn your business around by making a profit . All you have left is the problem of time. Time is now your problem, and I will get to the key ways to turn your business around, but remember, when you start making a profit, it doesn’t mean that your creditors, the bank or the taxman will wait for you to catch up. If you can turn your business around, then time becomes your enemy.  Turning a business around, or running a business should have one financial goal, and that is to have money – and as much as possible, left in the bank account at the end of the day when you have paid everyone. Paying staff, creditors, the landlord and the taxman and having something left is the simplest goal for most of us. Tech companies excluded of course – will twitter ever make money? The combination of making a profit (and getting the cash from that profit into a bank)  , dealing with the taxman, building a better relationship with a lender or finding alt

3 key thoughts The $20,000 small business instant write off has been extended for another 12 months. Businesses with an aggregated turnover of less than $10 million will be able to take advantage of the write off until 30 th June 2019 provided what you buy will be acquired, installed and or used in your business. One – when buying a vehicle, you may make a point of buying something under $20k. There are a lot of vehicles that are quality second hand (and some new that could serve your purpose) and you get a 100% write off immediately. [one_half] [/one_half] [one_half_last] [/one_half_last] Two – If you don’t need something – then you don’t need it , no matter how good it sounds. You still actually need to have the money, either from the business or you borrowed it or introduce the funds to pay for the asset. If you don’t need it, isn’t it better you keep the money? Three – Have a perspective of what you are doing and why to take advantage of the tax write off. You should

It has been a common practice for business owners and directors to push on, no matter how bad or how hard things financially have become in their business. Perhaps if you are in a bad position , it's best to deal with the problem earlier rather than later as your options start to disappear. Often, in the end it’s all about the theatre of your choice, how you behave and deal with your problem. You may think that you can work through things and get them right, but now you may be called out by having the whistle blown on you by a staff member or a creditor. While your intentions are good, you may be seen as someone who is ignoring their business responsibilities and planning to rip the system off. The ATO’s new whistle-blower hotline is the latest in the Federal Government’s arsenal in the war on illegal phoenixing, which is estimated to be costing the Australian economy up to $5.13 billion each year. Scalps have already been claimed, as we reported last month. Last financial ye