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Proactive Blogs. Providing some interesting articles within relation to Accounting and Financial various situations. Chat to Proactive Accounting Today.

November 17, 2016
Cashflow-Crisis

Small Business Cash Flow Crisis

Small Business Cash Flow Crisis In 2014/15, 20,018 businesses in Australia became insolvent, with inadequate cash flow being a key reason. At 30 June 2016, small business owed more than $12 billion in collectable debt, accounting for almost two-thirds of total collectable debt. Evidence shows that businesses which manage their cash flow effectively are more likely to succeed. Despite the large amount of information on cash flow management already available in the market place, it is recognised that cash flow remains a significant issue for small business. The ATO provided the following information on statistics and research: There are more than 2 million small businesses in Australia. The ATO defines a small business entity as a business with less than $2 million aggregated turnover. 96% of all Australia’s businesses are small businesses, producing over $330 billion of our nation’s total economic output. Small businesses employ 4.5 million people, almost half of […]
September 21, 2016
Identity-Theft

Another Timely Warning Against Identity Theft

Another Timely Warning Against Identity Theft The ATO is reminding Australians to protect themselves against identify theft this tax time. Assistant Commissioner Graham Whyte said identity theft was more common during tax time because of the large number of people lodging tax returns. “With the amount of personal information being exchanged at tax time, it is a prime opportunity for fraudsters,” Mr Whyte said. “Highly organised crime networks use a range of methods to steal personal information in order to commit refund fraud.” In 2014-15, 32,110 cases of identity theft were reported to the ATO. Of these, 22,200 were reported during the peak processing months from July to November. Over the same period, 677 incidents of identity crime relating to refund fraud were dealt with by the ATO. Mr Whyte said there are a number of ways Australians can protect themselves against identity theft and refund fraud. It can be […]
September 21, 2016
Dodgy-Deductions

ATO Targets Dodgy Tax Deductions

ATO Targets Dodgy Tax Deductions With over eight million Australians claiming work-related expenses each year, Assistant Commissioner Graham Whyte from the ATO is reminding people to make sure they get their deductions right this tax time. “Australians claim over $21 billion in work-related expenses each year, and we want to support taxpayers to claim what they are entitled to – no more, no less,” Mr Whyte said. “Most Australians want to do the right thing, but we are seeing mistakes, and while the amounts at an individual level are relatively small, collectively the overall impact is significant. That’s why, it is important for people to get their deductions right. “From time to time we see people deliberately making incorrect claims. We’ve seen claims for car expenses where log books have been made up and claims for self-education expenses where invoices were supplied for conferences that the taxpayer never attended. “Deliberately […]
July 29, 2016
Tax-Returns

Don’t Get Stung by “Instant” Tax Refunds

It’s tax time again and there are plenty of promotions for “instant” or “same day” tax refunds. It might seem like an attractive option especially when you need money quickly at this time of year, but beware that you could get stung if things don’t go according to plan. Here’s how an “instant” tax refund works. First it’s important to understand that many of the companies promoting instant refunds are not actually issuing a refund. Only the ATO can do that. What you’re really getting with an “instant” tax refund is a short-term loan. The concept is that when you receive your refund, you will pay it directly back to the company to pay off your debt. The problems start if you later get a message from the ATO that your refund has been withheld for any reason (e.g. you didn’t declare your Centrelink debt). You will now be in […]
June 16, 2016
Superannuation-do-or-do-not

Superannuation: to do or not to do?

Despite the GFC being over for quite some time, there are still ‘non-believers’ of superannuation. People may have been well on their way to early retirement before the GFC hit and wiped out their hard-earned wealth, but allow me to clarify something. Superannuation is not a product, it is a tool a vehicle – if you will – to get you from point A to point B. Imagine you were driving a car and had unfortunately got into an accident that resulted in it being written off, regardless of whether you owned it in your own name or through your business the outcome remains the same: you no longer have a car. The same can be said for superannuation. If you had an impressive portfolio that was purchased through superannuation, the GFC would have had the same affect if you had owned it yourself, it’s just when it comes to […]
May 17, 2016
Introducing our online client portal. Proactive FS

Introducing our Online Client Portal

Introducing our Online Client Portal We’re all inundated with emails, a great majority of it being spam. As riveting as it may be to read how an overseas group can get you to page 1 on Google or the one where they ask which address to send the fruit hamper or my personal favourite which are the ones I’ve unsubscribed to multiple times and still they send me emails I won’t read. Inboxes are generally cluttered and messy, but most importantly they are not secure. Just like an ATM can be skimmed, so too can emails be hacked. As an accountant I deal with clients’ sensitive information and given how easily identity theft can be executed combined with the lack of security inherent with emails, this has become a major concern. Which us why we’re introducing our Client Portal. It’s an end-to-end communication system that is not only easy to […]
May 17, 2016
Why do I have to pay so much GST?

Why do I have to pay so much GST?

Why do I have to pay so much GST? This may be a question you ask yourselves quite often. While the answer isn’t the same for everyone, there is one general principle that I believe everyone running a business should endeavour to understand. GST is not your money. Yes it might hit your bank account, but remember that your true revenue is the figure AFTER GST has been deducted. Think of yourself as a sort of quasi-tax collector for the ATO. You charge your customers your fee plus GST; they pay you an amount that includes this which you then remit to the ATO every quarter or month depending on your turnover. So say you bill your customer $1000 plus GST. $1100 is going to be deposited in your bank account, but remember it’s the $1000 that’s actually yours. The $100 will go towards what you will need to report […]
May 17, 2016
Changes to phone internet and home phone expense

Changes to phone, internet and home phone expense claims – 2016 tax year

Changes to phone, internet and home phone expense claims – 2016 tax year The ATO has issued an information sheet setting out how taxpayers can claim phone and internet expenses.  The requirements are more onerous than in previous years Where taxpayers use their own phone or internet for work purposes and paid these costs themselves, they may be able to claim a deduction for those cost, providing they have the necessary records to substantiate those claims. Starting from next year, all taxpayers making a claim for phone and internet expenses will need to keep a 4 week diary every year. In order to make a claim that is more than $50, taxpayers are required to keep a 4 week dairy.  These records may include: Dairy entries – including electronic records Bills; and preferably Evidence that their employer expects them to work at home or to make work related calls from […]
May 9, 2016
New Superannuation Measures | Proactive FS

New Superannuation Measures

New Superannuation Measures On budget night 2016 the government introduced the biggest changes to Superannuation since the Simpler Super back in 2006. Many of the lucrative measures in superannuation were cut back on, particularly at the higher end of the wealth scale. So, one would ask the question is it all doom and gloom? Probably not as the restrictions which came into effect will only effect a relatively small number of super fund members. One change was the lifetime cap on non-concessional contributions at $500,000. Currently the limit is $180,000 per year. The cap applies to contributions from 2007. The amount of people who would have made contributions of this magnitude is not very high. Those who have made significant contributions of this nature should check just how much they have contributed and adjust future contributions accordingly. Most people contributing make concessional (tax deductable) contributions. On this front the maximum […]
April 13, 2016
Employee or Contractor | Proactive FS

Employee or contractor – beware the myths

Employee or contractor – beware the myths Employee or Contractor? Running a business entails a raft of decisions that you need to make.  One of the most misunderstood is whether the people working for you are an employee or contractor.  Quite often what you would like them to be may not be the case.  What is the truth, however, is that you as the employer are responsible for getting it right.  Getting it wrong can land you in trouble and make you liable for penalties. There are a lot of myth’s out there fuelled mainly by misinformed rumours. Myth:   If a worker has an ABN they are a contractor Fact:    Having an ABN makes no difference.  If the arrangement is employment they are an employee regardless of whether they have an ABN.   Myth:   If a worker has a registered business name they are a contractor. Fact:    This has […]