Lever Group accounting news and tax updates

Taxation Services

We regularly deal with a broad range of personal and corporate taxation issues and make a point of understanding the individual needs of every client. Whether you need advice on company tax, personal tax effectiveness or indirect taxation including payroll tax and GST, our team will identify the best solutions for you.

Our taxation services include:

  • Preparation and lodgement of taxation returns
  • Capital gains taxation planning
  • Fringe benefits tax returns
  • Land tax returns
  • Payroll tax returns compliance
  • Tax planning and minimisation
  • PAYG and superannuation compliance

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  1. Making time to look over your financial reports each month is an important task for any business owner. If you are not taking the time to do this, either because you’re too busy, or perhaps you don’t really understand what you’re looking at and it doesn’t make sense to you, then here are 6 reasons we recommend that you should start to.

    But before we get to our six reasons, let’s talk very quickly about which reports to look at. At a bare minimum, and depending on the complexity of your business, you should be looking at the following:

    • The Statement of Financial Performance – also known as the Profit and Loss report (P&L) or the Income Statement – tells you, as the name suggests, how your business is performing over a period of time, such as a month or a financial year. In broad terms it shows the revenue that your business has generated, less the expenses for that same period. In other words, it shows how profitable your business is.
    • The Statement of Financial Position – also known as the Balance Sheet shows the value of the business’s Assets, Liabilities and Equity.Accounts Receivable Ageing report (Aged Receivables) – this shows how much money is still owed to the business as at a certain date in time, and is usually segmented as to how overdue they are, or sometimes by how far past the invoice date they are. Generally, you will have Current, 30, 60 and 90 days columns.
    • Assets include things like money in bank accounts, Plant and Equipment, Accounts Receivable balances
    • Liabilities include things like Bank loans and credit cards, Accounts Payable, and Hire Purchase balances
    • Equity is the difference between your Assets and your Liabilities and includes Retained Earnings and Owner Funds Introduced
    • Accounts Payable Ageing Report (Aged Payables) – this report shows who the business owes money to as at a certain date in time and, like the Accounts Receivable Ageing report, is usually segmented by overdue period.

    Here and they are, the six reasons why you should be reviewing your financial reports:

    Understand your business better - by looking at your Profit and Loss report monthly you will get a good picture of how your business is performing month by month and it will give you a better understanding of what makes up your profit. It can be helpful to compare periods, or to look at a month by month P&L, so you can clearly see on one page the revenue and expenses month by month. This will help to identify trends in your data and many also help to highlight anomalies in coding/categorising.

    Accurate information for lending purposes – If you are applying for a loan or an overdraft, the bank or financial institution will look closely at both your Profit and Loss report and the Balance Sheet as a lot can be learned about a business by looking at these reports together. If you are unsure what some of your balances are in your accounts, get in touch and we can explain them further.

    Get paid quicker and reduce bad debts – by looking at your Accounts Receivable Aged Summary each month you can follow up with overdue accounts promptly which often results in getting paid quicker. The longer an overdue amount is left unpaid the higher the risk of it not being paid at all, so it is important to keep on top of this.

    Better relationships with your suppliers – Assuming you are entering your supplier bills into your accounting software (recommended for most businesses to get an accurate profitability figure) your Aged Payables report will alert you to any unpaid or overdue amounts. Supplier relationships are an important aspect of your business and paying on time is crucial to maintaining those relationships.

    Better cashflow – having an accurate understanding of how much money the business is owed, and how much money the business owes, can help with cashflow planning to ensure that there is enough money when needed. Additionally, understanding the trends of your business, its profitability drivers, its expenses, etc., can help to plan sales and marketing campaigns so that the revenue keeps coming in.

    Better business decision making – Your financial reports tell the story of your business and it’s important that you understand the story that they are telling you. The better you understand what’s going on in your business the stronger position you will be in to make better business decisions that affect the profitability of your business and its financial viability.

  2. Budget BOMA
     
    Federal Budget 2021-2022 and Queensland Grants Available 

    The last twelve months have been turbulent for everyone to say the least, therefore The Federal Budget 2021-22 has a lot to live up to.  With the after effects from the appearance of Coronavirus last year still being felt in 2021, The Federal Budget for the next twelve months features many announcements and proposals aimed at economic recovery and includes investment in jobs, essential services, business incentives and tax cuts. 

    As a business owner you may be asking yourself, what can I take away from the Budget? 

    We have extracted some key points that may assist in answering that question.

    Budget Highlights for Business Owners

    Temporary full expensing measures extended until 30 June 2023

    Eligible businesses can claim an immediate deduction for the total cost of depreciating assets.

    Temporary loss carry-back rules extended

    Eligible companies can carry back tax losses from the 2023 financial year to offset tax bills from 2019 onwards.

    Administrative Appeals Tribunal given the power to pause or modify ATO Debt recovery action

    Reducing the legal fees and red tape for small business.

    Tax cuts

    Small to medium company tax rates will reduce to 25% from 1 July as planned.

    Recognition of occupational licences

    Reduced regulatory burden for people who work across multiple states.

    Digital Economy Strategy whole of government plan

    Finding for digital cadetships, innovation investment incentives, e-invoicing, cyber security, overhaul of myGov and building small to medium business digital capacity.

    Removal of the work test

    From 1 July 2022, individuals up to the age of 74 years will be allowed to make or receive non-concessional or salary sacrifice super contributions without meeting the work test.

    Downsizer contribution

    The Government will reduce the minimum age requirement for the downsizer contribution from 65 to 60.

    First Home Super Saver Scheme

    From 1 July 2022 the Government will increase the amount of super savings available to first home buyers from $30,000 to $50,000.

    If you are interested in finding out what the full Budget is aiming to deliver, visit Budget 2021-22 for the details.

     

    New Qld Small Business Grants Coming Soon

    The Queensland Government has announced three new small business grants programs worth $25 million over two years.

    The Business Basics, Business Boost and Business Growth Fund grants will target specific groups within the sector and continue to deliver on the Government’s election commitments to small business.

    The grants are being rolled out based on direct feedback received from small business owners through the Small Business Roadshow and online survey which showed support programs are needed to assist Queensland businesses at different stages of the business lifecycle.  

    Business Basics grants of up to $5,000 each support new and emerging businesses to increase core capabilities and adopt current best practice. Applications to open on May 31, 2021.

    Business Boost grants of up to $15,000 will help small businesses to improve their efficiency and productivity through organisational development and upgrades through automated software and CRM systems. Grants can be used for website development upgrades, strategic marketing, training and coaching, advisory services and planning for business continuity and succession. Applications to open late July 2021.

    Business Growth Fund grants of up to $50,000 will allow businesses to buy highly specialised equipment to seize and accelerate growth opportunities. Applications to open May 11, 2021, with Guidelines available from 1 May.

    You can visit the Business Queensland website or contact our office to access eligibility information or for further assistance with application.