Questions

What sort of tax agent should I use for US and AU earnings?

I have business clients in both Australia and the United States, what kind of tax agent or... read more

George Grimekis CPA
George Grimekis CPAAccountant at Alpha Omega Accounting & Business Solutions
Hi Fred,Most tax agents/accountants should be able to help you out, however this is a complex area so maybe engage one that has experience with clients who operate overseas.Generally speaking, all overseas income is declared in Australia and you can claim a foreign tax offset, for any tax that you have paid i the overseas jurisdiction, to prevent double taxation.Depending on how you're structured, it may be a case of engaging 1 accountant in the U.S to look after your affairs there and 1 accountant in Australia.My first step would be to engage a local accountant, discuss your needs and concerns with them, and go from there.
HiThe criteria for selecting the appropriate Accountant or Tax Agent depends on the complexity of the business and the cost factor as well.In your case you have to comply with various tax obligations in the country where your business is registered and how you derive the income is important.Other factors include, the nature of the business, entity type, number of transactions and the currency of billing etc. For further assistance or discussions you may call me on 0424419130 for personal discussions.
Please login or sign up to answer.
Questions

What do I need to include in a tax invoice?

Are there any important items or important information that I need to include on my tax invoice for... read more

Asked by:
Sarah Irwin
Sarah Irwin SME Community Director at SavvySME
George Grimekis CPA
George Grimekis CPAAccountant at Alpha Omega Accounting & Business Solutions
Hi Sarah Generally you need to include 7 items on tax invoices.For sales less than $1,000:1) Need to show document is intended to be a tax invoice (usually done by showing the words TAX INVOICE at the top)2) Your identity3) Your ABN4) The date you issued the invoice5) A description of items including quantity sold (if applicable) and the price6) The GST amount if any7) The extent to which each sale on the invoice includes GSTFor sales over $1000 you also need to include: 8) The buyers identity or ABNClicking on the below link also gives you A.T.O guidance on how to set out invoices.https://www.ato.gov.au/assets/0/104/694/815/1c91f2...
Please login or sign up to answer.
Questions

Do you only do your tax when profit is over 18k or even if profit is way below?

Asked by:
Kirsty Fox
Kirsty FoxPrincipal at Spitfire Solutions
It's also important if you are making a loss. They are carried forward and can be recouped when you are earning - rules apply, and you're better off talking to an accountant about the best way to use them for tax purposes. I'd also talk to an accountant to make sure you are claiming all your deductions.What Dionne has written is correct. If you are a partnership you have to consider if the other partner needs to lodge their tax return. If you're operating through a trust you definitely have to lodge - and have an accountant on board!Good luck with your business.
That depends on your legal status - are you a sole trader or a company? The 18k tax free threshold only applies to individuals, and it's real intention is to minimise the paperwork for employees who didn't earn much. If you've got a business, particularly if the REVENUE is over 18k, you should be lodging a tax return.If you're a company then it's much clearer - do your taxes.And if you don't need to lodge a tax return, you still need to submit a 'Non-Lodgement Advice Form' to the ATO so that they don't list as you being delinquent and start chasing after you.
Please login or sign up to answer.
Questions

For tax purposes, should I be taking a copy of receipts in case the taxation department requests proof?

A lot of my receipts (Aust Post) are printed on thermal paper and fade over time. read more

Steven Freeman
Steven FreemanOwner at Evolved Sound
Generally you need to Tax compliance info for 5 years and needproof in form of electronic or printed copy of every payment you claim against.
Kirsty Fox
Kirsty FoxPrincipal at Spitfire Solutions
Yes. If you are audited the ATO can ask for proof of your expenditure. There are a number of apps where you can take a photo of it to store it, or you can scan them and keep an electronic copy. It's fine if you want to put several together for one A4 page photocopy as well.
Please login or sign up to answer.
Questions

Who else thinks the new withholding property tax stinks?

When you think TAX couldn't get any more complex - and then the ATO does this...... read more

Be the first to answer
Please login or sign up to answer.
Questions

What can I do now to save on taxes next year?

Asked by:
Jef Lippiatt
Jef LippiattOwner at Startup Chucktown
There are a few ideas that come to my mindReview your vendors - you can shop around to see if you could save money with another vendor. Just don't save money at the expense of losing quality.Look for cost savings - many services will give you a discount if you pay annually verses monthly. Sure this may not save thousands of dollars but it can help.Work with a tax consultant or strategy consultant - they may be able to find cost savings by reviewing your business financials, ad spend and hiring processes.
Please login or sign up to answer.
Questions

What can businesses do throughout the rest of this year to make next year's tax filing an easier process?

Be the first to answer
Please login or sign up to answer.
Questions

Are there any tax-code changes this year that small business owners should be aware of?

ITP .
Not quite sure what codes you may be referring to specifically however there are no changes to accounting codes. One issue that many businesses have when lodging returns is getting their business industry code correct. The ATO have a limited number of business industry codes which relate to the type of business you run. For instance if you are running a Physiotherapy service you would use code 85330. If you find that your business type is not listed then you need to find the code that is closest to what your business does. The reason for this is that the ATO has audit checks on these industry codes and if your figures look totally different to other businesses using that code then you are more likely to be audited by the ATO.
Please login or sign up to answer.
Questions

If business owners ever do their own taxes, what are some key things to remember?

George Grimekis CPA
George Grimekis CPAAccountant at Alpha Omega Accounting & Business Solutions
Hi Noreen,This is a very broad question and the answer all depends on what type of structure the business operates.There are different tax rules that apply to sole traders, companies and trusts etc.Also there are endless scenarios that would probably have to be taken into account.My recommendation would be to always engage a tax agent/accountant. I have seen far too many cases where business owners have tried to save on accounting fees and done their own compliance work, only to find themselves in a much worse off situation.
Please login or sign up to answer.
Questions

Is it ever a good idea for business owners to do their own taxes?

ITP .
Generally I would say no. There are changes consistently from year to year and if you are not up to speed you could lose out big time. If you see a professional their fees are usually tax deductible anyway.
Jef Lippiatt
Jef LippiattOwner at Startup Chucktown
I would say in the long term, no. I currently run my own books, but at the moment I'm not generating many sales so it is fairly easy to keep track. Also, I personally excel at math so I don't find it too bothersome. However, I don't fully understand all the ins and outs of tax law so I will be switching to having a bookkeeper / CPA in the near future.A dedicated professional will help ensure you file things in a timely manner. They will potentially be able to save you additional money by knowing what you can write off versus what you can't. And honestly even if you can do your own taxes, unless you are running a tax business, you probably have more important items that need your attention.
Please login or sign up to answer.
Questions

What are the biggest tax mistakes small business owners make?

ITP .
Coming up to the end of the financial year some businesses may be looking at reducing their profits. Tax deductions that can be prepaid in order to get the deduction now would include rent, advertising, business trips, insurance or interest on business loans. Small businesses with less than $2m of turnover are also eligible to write off assets purchased this year which cost under $20,000 each so it may be worthwhile getting some of those assets you need for your business now. If you have stock then do your stocktake and make sure that anything that is obsolete or damaged is either written down in value or written off.
Steven Freeman
Steven FreemanOwner at Evolved Sound
Not having the right experts around them that can efficiently pickup costly mistakes & issues, while also maximising their tax position.
Please login or sign up to answer.
Questions

What can i do now to prepare my business for tax return?

Asked by:
Tim Hoopmann
Tim HoopmannOwner at Cornerstone Group
Hi Ananda, It’s great to see that you are planning ahead – you are already setting your business up for success! In terms of ensuring you are prepared for tax-time, you basically need to make sure that your bookkeeping is up to date.In terms of managing your books, the easiest way to do this is via a cloud accounting platform such as Xero or Intuit QBO as it is the accounting platform that contains all of that data relevant to your business. A cloud platform such as this will allow for you to:Maintain all your business financial records in one locationInvoice quicker so that you can get paid fasterEliminate the need for manual data entry as all of your transactions are pulled directly from your bank every dayIntegrate with cloud add-ons such as Receipt Bank that help to simplify your business processHave real-time access to accurate dataBy ensuring that you keep up to date with your bookkeeping you will have the complete story for you accountant in one location. This means you will be prepared well in advance and remain ATO compliant.Please contact me if you require any further information and I hope this has helped.
Please login or sign up to answer.
Questions

How much do accountants charge to complete tax return for a small business?

Lisa Ormenyessy
Hi Justin,As a biz owner you should be able to view your accountant as an investment rather than a fee. Many accountants will give you a fixed price too. There is a great report talking about it on the link. Hope this helps, Cheers, Lisa. http://accountantsadelaidesa.com.au/
Hitesh Mohanlal
Hitesh MohanlalDirector at WOW! Advisors & Business Accountants
Hi Justin.It is actually a difficult question to answer. To a point I agree with Dionne but it really does depend on a lot of things. There is no magic formula. The type of business, the industry, the number of transactions, the quality of the bookkeeping. It also depends what you classify as small. A business with a turnover of $1m is small. So is one that generates $10,000. But the fee is likely to be very different. However, I also advise that the fee is only one part of the equation. The other side is the value you are getting. I rarely quote on just doing the return. We are always looking to make cost or tax savings for our client because there is value there. So if you received a quote for doing tax returns and one is $1,250 and the other is $2,500 on the face of it the $2,500 is much more expensive. But you might find that if you spend $2,500 they spend more time on your affairs and they might find you savings of $5,000. It then makes sense to spend the $2,500. At the end of the day it depends what you want too. Cheap fee or a service that gives value. My advise would be speak to a number of tax agents and see what they can offer and see if it is what you want
Please login or sign up to answer.
Taxation

Tax Trouble? Avoid These 9 Common -- and Costly -- Mistakes.

Sound tax and accounting procedures are essential to growing a financially secure company. But...read more

0
Added via Entrepreneur.com
Please login or sign up to comment.
Be the first to comment
Taxation

The True Cost Of Christmas: Santa's Tax Bill

It’s Christmas Eve and this year, as always, at my house, there's a lot of anticipation. And...read more

0
Added
Please login or sign up to comment.
Be the first to comment
Taxation

7 Simple Year-End Tax Tips That Can Save You Money

As year’s end approaches I thought I would share seven tax tips that can benefit...read more

0
Added
Please login or sign up to comment.
Be the first to comment
Taxation

Tax Geek Tuesday: Profits Intersts, Capital Interests, And Restricted Property

[Ed note: Reminder -- today is Tax Geek Tuesday. What follows is an in-depth look at the tax law,...read more

0
Added
Please login or sign up to comment.
Be the first to comment
Taxation

Year-End Tax Strategies, What Else?

I don't know if this is the best of all possible worlds, but it's certainly the most expensive...read more

0
Added
Please login or sign up to comment.
Be the first to comment
Questions

Is ad revenue you receive from an app a 'sale' for GST purposes?

I'm completing my GST statement for the first time for my smartphone app business and was... read more

Asked by:
Albert Kelly
Albert KellyInformation Technology at Corporate Gifts Shop
Hey Eric, Sounds like you are going to be running the full Google international tax savings scheme. Good work. I do not know if you have it already, but something else to consider is making sure that everything is legally covered with your app. As a heads up http://technologylawyer.com.au/ has an app privacy policy http://technologylawyer.com.au/app-privacy-policy. Might be worth looking into just to make sure that you do not get the privacy breach fines that Google is coping at the moment.  
Apurv Bhalla CPA
Apurv Bhalla CPAAccountant at Success Tax Professionals
Hey Eric, Usually the money you get from outside is export and thus carries no GST. Money received from Australian carries GST. You should proportionating. Exports are GST free. Which also means that if you paid money to overseas guys to develop the app ect is also GST free so you cant claim that.   
Please login or sign up to answer.
Taxation

Looking beyond Apple's tax evasion tactics

TechnologySocial MediaPadraic Halpin and Carmel Crimmins and Himanshu Ojha - ReutersOccupying a...read more

0
Added via Business Spectator
Please login or sign up to comment.
Be the first to comment