The best clients make being in business all worthwhile. They value your expertise, appreciate your hard work, they’re friendly to work with and they pay their invoices. You’ll always go the extra mile for those clients – they drive your success. Then there are the clients who aren’t quite as enjoyable to work with. The ones who want everything in a hurry, at a rock-bottom price, and then complain about the invoice. Should you consider getting rid of your worst clients? Rate
Are you interested in learning more about income splitting and how to minimise tax by apportioning income or profit between associated entities? Professional services firms frequently use income splitting – for example, medical, legal, financial or IT services firms. It’s a good way of reducing tax within the allowable provisions – so long as it is not stepping over the boundary into tax avoidance. New ATO guidance on this topic means individual professional practitioners (IPP) will need to prove that arrangements are
If you have income from investment properties, now is the time to start gathering your records and reviewing your expenses for the 2021 financial year. Income to Declare All income earned from each property must be declared. If you have multiple properties, keep the records for each property separate to make the tax return more efficient. Rent received, whether paid directly to you or through an agent or through an online management platform. Rent includes recurring regular amounts as well as any lump
The Federal Budget 2021-22 has many announcements and proposals aimed at economic recovery and includes investment in jobs, essential services, business incentives and tax cuts. Budget Highlights for Business Temporary full expensing measures extended until 30 June 2023 – eligible businesses can claim an immediate deduction for the total cost of depreciating assets.Temporary loss carry-back rules extended – eligible companies can carry back tax losses from the 2023 financial year to offset tax bills from 2019 onwards.Administrative Appeals Tribunal given the power to pause
When you’re running a small business, you’re only as good as the team around you. Hiring the right people is a start, but how do you turn your employees into a well-oiled dream team? Here are five tips to get you started: Get to know them – Different backgrounds and personalities typically come with different strengths. By really getting to know your employees and what makes them tick, you can harness their strengths in a way that complements the overall team. Involve them early
Turning a profit is at the heart of running any successful company But should profits be the only financial focus if you’re looking to create a stable, long-term business? Cashflow is the beating heart of your business. Without an even and predictable flow of cash into the company, you can’t cover your overheads, you can’t pay your employees and you can run your day-to-day operations – let alone think about expanding and growing the business. So, what’s needed
When you started your business, you probably dreamed about flexible hours and highly profitable, stimulating work. Ideally, you would’ve adopted best practice and documented those dreams in a succinct Business Plan. The plan would specify how much cash you need from the business, your role, and the hours you’d be working. In other words, what the business was going to deliver to you personally as an owner. But that was all before the world turned on its head and most plans went
Now that the COVID-19 recession has largely passed, ATO debt collection action is expected to ramp up as debts hit a record high. Collectable debt owed to the ATO has peaked at $34 billon – the majority of which is owed by small business ($21bn). The main point in letting an ATO debt accumulate and paying other debts off instead, is that the interest charged by the ATO (General Interest Charge GIC) is most likely higher than interest charged on any
The Covid pandemic has changed the way we work and ushered in a new era of hybrid working – but is your business ready and able to offer this mix of on-site, off-site and remote working? When businesses were forced to close down their physical offices and workspaces, this brought technology to the fore. We’ve seen an increased use of remote working, video technologies and cloud-based business solutions – and people have got used to this ‘working from home’ ethic.
Whatever your sector, niche or marketplace, there’s almost certainly going to be other competitors in that space – but do you know who they are and what threat they pose? Are you the only provider of your specialism, or are you one of many companies that are all vying for the same customers? Knowing who those companies are, how they compare and what their competitive advantages may be is a vital piece of business intelligence for you. So, how do
