Brisbane's Accounting & SMSF Specialists

Small business

Home-based small business – what can I claim?

Home-based small business – what can I claim?

Small business, Tax
The home is also the principle place of business for many taxpayers these days. Yet it can be confusing to work out what deductions you can claim if you are working from home. Here is a general summary of the typical deductions you can claim:   Expenses relating to the area of the home you use for business. By determining the area of business space used and dividing this by the total area of your home, you can calculate the percentage for business use. You can then apply this percentage to claim the following deductions:   Occupancy expenses including mortgage interest or rent, council rates, land taxes and house insurance premiums. Running costs including electricity, gas, business phone and internet costs, cleaning, repairs to plant/equipment, and furniture. &n...
How to increase your business cash flow

How to increase your business cash flow

Small business
The lifeblood of any small business is all in the cash flow. The best way to increase your business cash flow is to have a written cash flow plan and to follow it. We recommend using the following strategies to improve your business cash flow: Work with an accountant that focuses on small business. Use real time software to manage your books such as Xero. This will enable you to have a clear and current picture of your profit and cash flow. Analyse your cash flow regularly. Ensure more money is coming into your business: Establish a clear payment policy and communicate it to your customers. Offer discounts if your clients pay upfront or early. Offer multiple payment options such as ezidebit. Follow up your debtors. Software such as Xero can do this for you a...
Guide to Small Business – Structuring and Tax

Guide to Small Business – Structuring and Tax

Small business, Tax
Deciding to start your own business can be one of the most exhilarating decisions you will make in your lifetime. The foremost important step is making a decision relating to the type of structure you set up - from which you will run your business. There are typically four types of structures that you can use to run your entity. They are: The Sole Trader The Partnership The Company The Trust     The sole trader This is the simplest of all the structures. It basically involves obtaining an ABN under your name or a business name of your choice. In essence, running your business as a sole trader means that you are required to disclose all of the revenue you make from your enterprise, and can claim all of the tax deductions relating to generating that income person...
Capital gains tax concessions when selling my business

Capital gains tax concessions when selling my business

Small business, Tax
When you sell your business, you may be liable for capital gains tax on the sale. However, there are four small business CGT concessions that can be used to reduce your capital gain on business assets. So long as you meet certain conditions, you can apply for as many concessions as you’re entitled to, until the capital gain is reduced to nil. The four CGT concessions are: Small business 15-year exemption This concession results in no assessable capital gain, when you sell a business asset that has been owned for 15 years, and if you’re aged 55 years or over and are retiring. This exemption also applies if you’re permanently incapacitated. Small business 50% active asset reduction By using this concession, you can reduce your capital gain on a business (active) asset
$20,000 INSTANT ASSET WRITE OFF EXTENDED FOR A FURTHER 12 MONTHS

$20,000 INSTANT ASSET WRITE OFF EXTENDED FOR A FURTHER 12 MONTHS

Small business, Tax
As a result of the 2017-2018 Federal Budget announcements, the instant asset write-off of $20,000 for small businesses has been extended for a further 12 months. The write-off was due to be reduced to $1,000 by 30 June, 2017. However, the government has decided to extend it, which gives businesses the opportunity to use the write-off for a further 12 month period until 30 June, 2018. Here is what you need to know: To access the write-off your business must be trading, and must have an aggregated turnover of less than $10 million. The aggregated turnover is the annual turnover of all businesses associated with the entity, including any affiliates or entities connected with it. The asset must be used or installed and ready for use prior to 30 June, 2017. Second hand goods q...