When running a business it is easy to put unpaid bills to the back of your mind and give your debtors a bit more time, and hope they pay eventually.
Whilst that is certainly a noble stance, it does not necessarily make good business sense to forgo money that you worked hard to earn. Especially when cashflow is the lifeblood of every business!
When we get asked to assist a client with chasing a bad debt we usually start with a letter of demand. It is a simple and effective way to make your debtor aware that you will not merely sit back and wait for payment, you will not forgive the debt and will not stand for any more broken promises for payment. After all, you kept your part of the bargain – shouldn’t they?Read more
Are you an entrepreneur? A creative? Running a home-based business? Or simply just ‘sticking it to the man’? Regardless of whether you’re working the 9-5 in an office, your bedroom or by the pool – the government would also like to share in your successes.
Whilst almost nobody enjoys paying taxes, there are a few little tax incentives that the Government provides that could make a big difference to your bottom line. Generally, most expenses that a business incurs in producing income are claimable, so be sure to keep records of any spending that is business related!
Here are some tips to help keep more of your hard-earned cash in your pocket…Read more
Nobody enjoys paying bills – and registration bills for the majority of vehicle owners usually rank from ‘necessary expense’ at best to ‘absolute nightmare’ at worst. But did you know that there might be more than just the benefit of keeping your car on the road by paying your registration?Read more
AIRBNB: TAX MUST-KNOWS BEFORE YOU LET STRANGERS IN YOUR HOME
Previously reserved for your friend that “accidentally” stayed the night or that long-lost relative you’re not sure is actually related to you, couch surfing has now become trendy. Indeed, the sharing economy is booming and growing quickly with services such as Uber and AirBnb quickly becoming part of our everyday life. Services such as these, and others utilise ordinary citizens’ homes and cars and turn them into mini-hostels – granting these sharp owners additional income whilst granting travellers monetary savings and “live in” experience.Read more
No doubt, you’ve already started to think of all the ways you can lose weight, save money, stress less and improve your general well-being. All of that ahead of this Christmas when most of us will undoubtedly put on weight, over spend on Christmas presents, stress about the in-laws coming and drink a little too much eggnog! Here’s an article from a personal account of someone who made the decision to eliminate alcohol and caffeine from his daily life and the impact it has made. While I’m not advocating for all of us to give up alcohol and coffee (unless you want to), I thought it painted a good picture regarding how powerful habits are in our lives and the effect they can have (either positive or negative) across a wide range of areas. Click below. Food for thought! P.S. I’ll still be drinking coffee in the New Year. Karen Gullo (article below) “I Had No Alcohol and No Coffee for 15 Months and This Is What Happened” Written by Tobias van Schneider for Huffington Post “Exactly today I haven’t had a single drop of alcohol or coffee in 15 months. A couple of my friends on Facebook & Twitter asked me to write about my experience, so here it is, in a nutshell. With over a year of no alcohol & coffee, I did notice some side effects. Here is what I learned. I save $1000 every month After 2 months I noticed that I had $1000 more on my bank account. Yes, that’s a lot, but do the math and you notice it’s not that much. I live in New York. In order to spend $1000 on alcohol I only have to spend $33 everyday. Assume that I have 2-3 cocktails every other day (which are $10 each without tip), including some wine bottles every month for at home I can easily spend $1000. Some might think that this is heavy alcoholism, but trust me when I say that having 1-2 drinks everyday in New York is more than normal. Also, going out drinking means that the occasional dinner & snacks are more frequent. You don’t just drink, you get hungry and buy some food. And before you noticed it, you spend $1000. Less gossip If there is one thing I noticed quite early, then it’s the lack of social interaction my new diet brought with it. Here is what happened: You don’t really go out anymore. It’s exhausting to explain again and again why you don’t drink and NO also one drink is not okay. When a group of people asks me to join them for drinks, I mostly default to answer with NO because I just don’t want to deal with gossip as a sober person. If I do go for drinks, I last max. 1 hour because this is how long my attention span as a sober person lasts in a group of drunk people. While I was never a party animal anyways, completely stopping with alcohol made me go out even less. It’s amazing to see the culture of drinking slowly fading away from […]Read more
Christmas is traditionally a time of giving and this doesn’t exclude employers showing gratitude towards staff for a job well done throughout the year. However, gifts and Christmas Parties can attract the attention of the Taxman. With the Fringe Benefits Tax (FBT) rate now sitting at 49%, avoiding or minimising this impost is now more important than ever. This article looks at common Festive Season scenarios, how FBT applies, and how it may be minimised. Dinner at a Restaurant In certain circumstances, an employer can hold a Christmas party for staff and have it exempt from FBT. Take for example the quite common situation where an employer holds a Christmas party at a restaurant for employees and their partners and (besides from a Melbourne Cup lunch) it is the only social function they provide for employees during the year. Where this is the case, the total cost will generally be exempt from FBT provided the per-head cost (dinner and drinks) is kept to under $300 per person. This is known as the Minor Benefits Exemption. To enjoy this exemption the employer must use the Actual Method for valuing FBT meal entertainment. The Actual Method is the default method for valuing meal entertainment, and no formal ATO election is required to use this method. Under the Actual Method, an employer pays FBT (in the absence of an exemption) on all taxable meal entertainment provided to employees and their associates such as spouses (entertainment provided to other parties such as clients, contractors, or suppliers is exempt from FBT). If the meal entertainment meets the requirements of the Minor Benefits Exemption, the costs such as food and drink in respect of employees and their partners are exempt from FBT. Broadly speaking, under this Exemption the meal entertainment at a Christmas Party or other function will be exempt from FBT where its cost is less than $300 per head and, where similar or identical benefits are provided such as at Melbourne Cup lunches, they are only provided on an infrequent or irregular basis. The downside of using the Minor Benefit Exemption is that the meal entertainment is not tax deductible, and nor can you claim a GST credit. This Minor Benefit Exemption is not available if you elect to value your meal entertainment under the alternative 50/50 Method. Under this method, you pay FBT on only 50% of all taxable meal entertainment provided to employees, spouses AND clients, contractors, customers etc. irrespective of the cost. Likewise, you can only claim a 50% income tax deduction and 50% GST credits on such meal entertainment. However, with the FBT rate now at 49%, the 50% tax deduction and 50% GST credits available under the 50/50 Method is unlikely to provide a better after-tax result than the Actual Method where no FBT is payable. The “take-home message” is that, if like a number of employers, the only social functions you host for employees are the Melbourne Cup and Christmas party, be conscious of keeping the per-head cost under $300. By doing so, you may be able to exempt these functions from FBT. Gifts Provided gifts are only given […]Read more
Stay safe on the road this Christmas
Christmas and roads bring to mind thoughts of traffic jams, chaos and the repeated cry from the back seat, “are we there yet?”. This year we want all our clients to stay safe. Here’s just four easy things which can help reduce some of the risk associated with driving on the road.Read more
With many workplaces starting to plan their end of year functions, it might be time to reassess how you manage your workplace functions, particularly if alcohol is involved. Some recent decisions resulted in businesses having to wear the liability for any inappropriate behaviour of its staff.Read more
We have ranked as a BRW Fast 100 company for the second time! The BRW Fast 100 list ranks Australia’s fastest growing, public and private, small and medium businesses.
Ashley Gullo, firm founder and managing director couldn’t be happier with the recognition for the whole teams efforts.
“Our strong and rapid growth is a credit to our entire team and the consistently high level of service they provide to our clients. There’s an emergence of exceptional business on the Sunshine Coast,” he said.Read more