EOFY tax checklist for small business

This EOFY – make sure your small business is prepared. Tax-time need not be words that induce heart palpitations and a cold sweat. The easiest way to reduce end of financial year (EOFY) stress is to start with a plan and break everything down into smaller manageable tasks. A small business entity is a sole trader, partnership, company or trust that has a turnover of less than $10 million and operates for all or part of the income year. By law businesses are required to complete certain tasks at the end of the financial year. Each year you need to make sure you’re up to date with any changes, including changes in tax breaks, deductions, employee award conditions, etc. As the end of the 2016 – 2017 tax year approaches, it’s time to complete tax returns, bookkeeping and take stock of finances. Putting some extra work into organisation will set you up for the year ahead. Review the previous year, and additionally, put into place strategies, look for ways to save money and start planning for future growth. Here is a checklist to start you off on your way to EOFY efficiency. EOFY checklist for small business: Conduct a stocktake to ensure you have accurate information on your stock levels Complete an income tax return. For more information on the tax differences between operating as a sole trader and a company; take a look at this fact sheet Ensure your Business Activity Statement (BAS) is completed Superannuation contributions up to date (these may be tax deductible) Provide employees with their PAYG Reconcile your payroll Review staff salaries and award conditions...

10 Money Tasks to Complete Before You’re 40 How to Avoid a Mid-Life Money Crisis

The irony of having disposable income when you’re in your twenties or even thirties and not disposing of it wisely becomes apparent when you hit your forties. For many people at that time of their life there is a family to feed and educate, mortgages and bills to pay, and retirement to plan for. They quite often rue the days of spending their wage on partying, shopping and holidays and wish they had been a little more strategic with their spending. We see it quite often. People hit the big four-oh (!) and realise their finances are hurting them rather than serving them. So we thought we’d put a list together of ten tasks you can complete in your twenties and thirties to minimise the likelihood of a mid-life money crisis. 1. Pay off bad debt Credit card debt, personal loans, store credit, HECS loans – whatever the debt is, get into the habit of paying off bad debt completely. Don’t get sucked into the interest only vortex. You’ll end up with a debt headache at age 40, the very time you need that money for things like school fees and kids dental bills. 2. Set up an emergency fund This is so simple to do. Set up a separate savings account and direct debit a percentage of your income into it regularly. Only touch it in emergencies. This helps you to stop relying on credit card (more bad debt) to get you out of tight and unexpected financial situations. 3. Pay debts and bills on time Many people are surprised by how a bill paid late here or...

Do I Need a Financial Planner?

We often get asked this question. Do I really need a financial planner? Is it worth it? What will a financial planner do that I can’t? When we respond, we’ll often use a few different analogies. Think of buying a new car. You get advice from other people and the car dealer and work out which model is best for you based on what your needs are at the time. The car runs beautifully for a while but what happens if you don’t take it in for a service? Things start to go wrong. Or what if your needs change? What if you have more children or your job changes and you are now commuting a lot more so you need a more fuel efficient car? If you don’t change your car, it won’t fit in with the changing needs of your life. Look at financial planning from that point of view. Getting that initial advice is great but if you don’t have someone to help you as things change, it’s all a little pointless. Let’s look at another analogy. You’re re-designing your backyard. You get advice on what to plant and where based on what you need at the time. It all makes sense. Yet forgetting to water the plants, not fertilising them and basically neglecting the garden will lead to overgrowth, weeds and the plants dying. But how did you expect them to survive? Why would you have an expectation that something will thrive without constant monitoring? It’s the same thing with financial planning. How can you expect your financial health to prosper if you don’t keep...
Earlybird Gets the Super Worm

Earlybird Gets the Super Worm

  Who regularly thinks about their superannuation and retirement? Well, that will probably depend on your age and where you are in your life phase. For individuals close to retirement, it’s front and centre and no doubt you will be taking active steps to increase the principal amount in your super account. If you’re in the middle of your life, say around the 40 – 50 age group, it’s more than likely in the back of your mind but your world is busy with work and older children wanting to be dropped here and picked up from there. And if you’re in your twenties or thirties, we bet it rarely crosses your mind at all. After all, isn’t super for ‘old people’ ???? But what if we told you that by allocating just a few hours of strategic thinking (and then doing!) every year to your superannuation you could increase your retirement savings by thousands? This is super important, especially if you’re a woman. On average, Australian women will retire with almost $100,000 less superannuation than men. But here’s the kicker – women live longer! This gap in retirement savings is not getting any smaller. And here’s another scary fact. 1 in 3 women will retire without any superannuation at all! So, here’s four simple tips on how getting in early and thinking strategically NOW can amp up your super for when you really need it. 1. Consolidate Do you have more than one super fund account? If you do, you are paying more fees than you need to. Allocate one hour to collate the info you need to...