All Posts By

Tracy Miller

Meaningful marketing and profitable brands – Introducing The Drawing Board

By | External CFO | No Comments

The increasingly digital world can be a challenging place for brands and businesses. People have more choice, more control and more expectations. And less time, less patience and less trust than ever before. Enter Gareth Jones and “The Drawing Board.”

“Meaningful marketing is about creating value first rather than simply trying to extract value. It means potentially reframing how you connect with your customers. Selling the problems you solve rather than just the products. Meaningful marketing involves 3 key areas of focus. Brand Philosophy, Customer Experience and ROI (Return on Ideas.)”

Gareth has an impressive background with 17+ years experience as a strategist in media and marketing, working with global brands through to local start ups.

“Some of the things I am grateful to have been involved with;
At my recent agency I developed and launched an innovation division to help uncover new partners to work with and new opportunities for growth.
New business team lead for multinational media agency working on pitches including BMW, Diageo and Kraft Heinz.
Created the B2B brand philosophy and positioning for the Multi Channel Network
Cowrote and presented (with Viacom) a landmark research paper on the Modern Australian Mum and the impact of technology.
Helped implement Nine Entertainment Company’s cross platform sales brand “powered”
Currently working with 2 Australian start-ups helping them launch
Regular lecturer and mentor at TAFE NSW
Guest lecturer at UTS
Graduate of Seth Godin’s “altMBA”
Graduate of Seth Godin’s inaugural “The Marketing Seminar”

You can read more about Gareth and his accomplishments here.

Or get in touch to discuss how he can help your business with services like;
Marketing innovation
Digital and social strategy
Implementation management and measurement

The Drawing Board
M: 0400 395 354
www.thedrawingboard.com.au

End of Year Tax Planning 2017

By | Business Bookkeeping Services, External CFO, Tax Advice & Planning | No Comments

With 30 June fast approaching, now is the time to consider your year end tax position. We have compiled the following list of items to assist in the year end tax planning process.

We are always available to answer any queries.

INCOME

Deferral – You may be able to defer sales from the 2017 year to the 2018 year or bring forward sales into the 2017 year in appropriate circumstances
Company Tax Rate – Small Business Entities now include companies with turnover of under $10 Million and will be taxed at 27.5%
Unearned Income / Income In Advance – You should consider whether any income received is in advance of the goods or services being supplied and can therefore be taxable in a future year
Construction Contracts – The ATO allows construction contract revenue to be recognised under various methods and may impact when the revenue is taxable. The application of the different methods must be consistently applied
Interest and Dividends – Income is generally booked as revenue when received. If you have received a loan from a related company or trust you should consider whether a Division 7A dividend is likely to be paid
Personal Services Income (PSI) – If you provide services by yourself through a company or trust it is likely that you have derived PSI and any profits will be attributed to you directly

EXPENSES

Deductibility – You should check whether any expenses incurred during the year may not be deductible
Capital – SBE’s are entitled to an immediate deduction of all assets costing less than $20,000 excl GST, these assets should be bought and installed before 30 June 2017. Any assets over $20,000 will be depreciated in a pool at 15% for the 1st year and 30% for each year after. A pool balance of less than $20,000 can also be written off
Bad Debts – if you write off doubtful debts before 30 June you will be entitled to a tax deduction. You should consider whether you have made all necessary attempts to collect before writing off
Trading Stock – You should perform a stock take to ensure the correct gross profit is being taxed. As an SBE if your inventory movements is under $5,000 each year you are not required to perform a stocktake. You can choose to value your year-end stock as cost, market value or obsolete value
Employee Bonuses – If you are paying bonuses you should ensure that you are committed to paying them before 30 June and some documentation should be kept
Prepayments – As an SBE prepayments that have a period prepaid of 12 months or less are entitled to an immediate deduction

COMPANIES

Super Payments – Make sure all super payments are made and received by the Super Fund before 30 June 2017 to ensure deductible in the 2017 financial year
Maximise Deductible Super Contributions – The concessional cap for the 2017 year is $30,000 for persons aged under 49 at 30 June 2016 and $35,000 for persons aged 49 to 74, so you should consider maximising your contributions. Remember that your 9.5% is counted toward these caps. The cap drops to $25,000 per year for all ages from 1 July 2017
Division 7A Loans – You should review loans before year end to ensure you don’t accidentally trigger a debt forgiveness, deemed dividend etc and arrange a loan agreement with the company
Payment of Dividends – If you plan to pay a dividend or have paid a dividend you need to ensure the payment is allowed as well as documenting it via a Director Minute

TRUSTS

Trustee Resolutions – You should prepare a resolution or distribution plan before 30 June 2017 or earlier depending on your Trust Deed considering all types of income such as dividends, other income, capital gains. This will help to ensure income is not taxed at 49%
Meaning of Income – You should consider the definition of Income as per your Trust Deed to ensure your resolutions are effective in the distributions
Trust to Company Distributions – If these exist you need to consider Division 7A and whether all payments have actually been made to avoid any Unpaid Present Entitlements (UPE)
Family Trust Elections – You should review FTE requirements to ensure that franking credits can flow through and protect bad debts and carry forward losses
Trust Deed – Consider reviewing your Deed to ensure it is appropriate for the proposed distributions

CAPITAL GAINS

Timing of CGT Events – You should consider the timing of a capital gains tax event in respect to which financial year the event falls into noting that contract dates and not settlement dates are generally when the event occurs
Small Business CGT – Consider your ability to reduce any capital gains by applying the concessions
CGT Discount – Where assets are held for more than 1 year they may be entitled to a 50% discount on any CGT payable

Get expert advise

Your guide to the 2017 Federal Budget

By | Lending Advice, Tax Advice & Planning, Uncategorized, Wealth Management | One Comment

Budget Recap

In case you missed it, last night’s budget contained a number of measures aimed at stimulating the economy particularly through infrastructure spending. This spending will be in the vicinity of $75 billion. Despite these spending measures, the government is predicting that the budget will return to surplus in 2020-21.

An “honest budget” as described by Treasurer Scott Morrison focused on health, home and housing. Keeping healthcare available to all Australians in the long term and living the dream of owning one’s home will be central issues for many Australians.

As is usual at budget time there was a range of taxation measures announced. A highlight for Small business is a reprieve on the $20,000 write off on capital expenditure. Here’s our summary of impacting measures;

Small Business

  • Extension of the small business instant asset write-off scheme allowing businesses with turnover up to $10 million to immediately write off expenditure up to $20,000 for a further year (originally due to finish on June 30, 2017).
  • Through the National Partnership on Regulatory Reform, the Government will provide up to $300 million over two years to States and Territories that reduce red tape for small business.
  • Amending the small business capital gains tax concessions to ensure that the concessions can only be accessed in relation to assets used in a small business or ownership interests in a small business.

Housing

  • Increase the capital gains tax (CGT) discount by 10% from 50% to 60% for affordable housing. As most people will be aware the CGT discount applies to most CGT assets disposed of by individuals and some trusts where the assets have been owned for more than 12 months.
  • An annual charge of at least $5,000 on residential property owned by foreign residents where the property has been vacant or not available for rent for at least six months of the year.
  • Foreigners and temporary residents will be denied the main residence exemption applying under the CGT law.
  • There is a range of other measures affecting foreign tax residents.
  • First home buyers will be able to save for a deposit through investing funds in superannuation. These amounts they will be able to withdraw when the deposit is required. To the extent that the withdrawn funds were contributed as concessional contributions thee will be some (reduced) taxation on the amount withdrawn. Withdrawals under this scheme may be made after 1 July 2018.
  • Form 1 July 2018, persons over 65 who downsize their home (held for more than ten years) may make an additional non-concessional contribution of up to $300,000 from the proceeds of the disposal of the home. A couple can contribute $300,000 each. This contribution will not be subject to the contribution and superannuation balance caps introduced earlier this year.
  • From 1 July this year, deductions for travel expenses to inspect, maintain or collect rent on investment properties will not be allowable deductions against the rental income. So the trip to the Gold Coast to check on the investment property will no longer be deductible.
  • Deductions for depreciation plant and equipment such as hot water systems and dishwashers installed in residential investment properties after 1 July 2017 will only be available to the owner who had them installed and not for any successive purchaser of the property.

Fringe Benefits Tax

  • The FBT rate will increase to 47.5% to take account of the increase in the Medicare levy. It is not clear when this will take effect but it will probably be in place by at least 1 April 2020.
  • A corresponding increase in the gross-up rate will be required for calculating the taxable value of fringe benefits.

Personal Taxation

  • The temporary budget repair levy of 2% for taxpayers earning more than $180,000 will expire on 1 July 2017. This means that ignoring Medicare the top marginal rate will drop from 47% to 45%.
  • However, the Medicare levy will rise from 2 to 2.5% from 1 July 2019. From 1 July 2017 thee will be modest increases in the Medicare low income threshold.
  • No changes were announced in the Federal Budget in relation to personal income rates. Personal income tax rates for the 2017-18 year will therefore remain the same as for the 2016-17 year (see table below).personal-tax-rates

Superannuation

  • Aside from the changes identified above, the Treasurer has confirmed the proposal applying from 1 July 2017 to ignore the amount of non-recourse borrowing by a self-managed superannuation fund in calculating a superannuation balance. This means that the member’s balance will be the gross and not the amount net of the borrowing.
  • There are some other changes to superannuation applying from 1 July 2018 in relation to related party dealings.

Indirect Taxes

  • From 1 July 2018 purchasers of new residential property will be required to withhold the GST payable on the transaction and remit it to the ATO. It will be interesting to see how this will work in cases where the margin scheme applies to the sale resulting on GST applying on a reduced amount. This will require the purchaser to determine their liability based on information provided by the developer. What if it is wrong?
  • From 1 July 2017 digital currencies like bitcoin will be treated as money and no longer subject to GST. Arguably it always was but the ATO had said that it was not money as defined.
  • For those who still light up, there will be changes to the tax treatment of roll your own and cigars to bring them into line with manufactured cigarettes. This will be phased in over the next four years.

Company Tax Rate

  • The government is committed to pushing for a reduction in the corporate tax rate to 25% with the objective of making Australian businesses globally competitive.

Banks

  • The major banks are targeted for levy in respect of some of their liabilities such as corporate bonds, commercial paper, certificates of deposit and Tier 2 capital instruments. This will take effect from 1 July this year.

The tax position described in this blog is a general statement and for guidance only. It is important to note the policies outlined in this publication are yet to be passed as legislation and therefore may be subject to change or further refinement.

 

Interest Rate Hold

By | Lending Advice, Tax Advice & Planning, Wealth Management | No Comments

At its May meeting, the Reserve Bank of Australia chose to keep the official cash rate on hold at 1.5 per cent.

What this means for you?

Interest rates remain low, so it’s still a great time to invest in property or to purchase a home! Despite some lenders raising interest rates on both owner-occupier and investment loans in recent months, interest-only and investor loans remain cheaper than a year ago.

The debate about housing affordability, negative gearing, capital gains tax discounts and borrowing through Self-Managed Super Funds has dominated the news in recent months, and it will be interesting to see what the federal budget holds next week.

Interest rates are really on the move outside of the RBA’s decision, so now more than ever is the time to seek expert advice about your home loan or investment property. We can compare hundreds of different loan products to find you a competitive deal that suits your budget and financial goals. Please give us a call today!

PS. Do you know a family member, friend or colleague looking to buy their first home? Or next home? Or an investment property? Please just let us know, we’d be very happy to help!

Source

Disclaimer: Your full financial situation would need to be reviewed prior to acceptance of any offer or product.

Keeping Company expand into Pyrmont

By | Uncategorized | No Comments

New office locations

We are super excited to announce that we have opened a 2nd office location at

100 Harris Street, Pyrmont.

The opening of this office will make it much easier to service our City based clients allowing them the convenience of visiting us at Pyrmont or Martin Place.

With office locations all over the globe, WeWork is designed to promote fresh ideas and organic networking. We are loving the aesthetic common spaces, community vibe, micro-roasted coffee and happy hour beer!

we-work-pyrmont-5

OLYMPUS DIGITAL CAMERA

OLYMPUS DIGITAL CAMERA

OLYMPUS DIGITAL CAMERA

Come by and say “hi”.

sdch 70th anniversary

Not-For-Profit Accounting

By | Uncategorized | No Comments

We were extremely pleased to join the Sydney Dogs and Cats Home as a gold sponsor to help commemorate their 70th Anniversary Gala Dinner on Saturday, 29 October in The Grand Ballroom at The Westin, Sydney.

Hosted by Ambassador, Sam Mac the night was filled with fabulous entertainment, fine wine and scrumptious food. Guests at the event were privileged to see why they do the work they do, and to ensure their unique work continues with silent and live auctions which proved too seductive for most of us at the Keeping Company table.

2016 marks a significant milestone for the Sydney Dogs and Cats Home, after 70 years of saving lives they also face relocation. For an organisation that specialises in second chances we hope the event will signal the start of their very own. Keeping Company are proud to provide ongoing support through our not-for-profit accounting service and wish them all the best for the year ahead.

Visit the Keeping Co. facebook page for more pics and remember to show your support, donate here.

 

superannuation cap revised

Superannuation contributions update

By | Uncategorized | No Comments

The Treasurer has dropped some major superannuation proposals that he outlined earlier in this year’s budget, including the $500,000 lifetime concessional cap on contributions. This change has pleased many critics and brings the Coalition’s superannuation policy into line with much of the Labor party’s proposed policy for superannuation.

There is now a new proposal on the table which is intended to begin from 1 July, 2017;

* To lower the existing non-concessional (post-tax) contributions cap from $180,000 to $100,000 per annum or $300,000 over 3 years for individuals under age 65;

* Individuals with a balance of more than $1.6 million will no longer be eligible to make non-concessional contributions – this essentially means that anyone with a balance of $1.6 million at the start of the financial year will be unable to make any further post-tax (non-deductible contributions) contributions in that year.

Some of the challenges to be addressed

It’s possible that some people have already breached the new non-concessional limit if they have already, under the existing rules, triggered the bring forward rule for 2016 and 2017.

It can also be quite difficult to determine the true balance of a super fund account at the beginning of the financial year (especially with people taking pensions) – accurate balances may not be available from their superannuation fund until much later in the financial year – when the trustees prepare the annual fund return which could leave some contributors with a timing problem.

Indexation issues will also need to be dealt with. Indexation for the non-concessional cap is currently set six times the concessional cap which will likely be reduced to four subject to increases in the average weekly ordinary times earnings (AWOTE).

More to come in our “Guide to Super”.

celebrating our XERO Gold Partner status

By | Xero Training | No Comments

As the newest member of the XERO Gold Partner community Keeping

Thanks to the businesses who’ve joined the Xero revolution with Keeping Company we have now joined a list of a select few within the Sydney area. You chose Keeping Company because you wanted a better way of doing business, and we couldn’t have got this far without your support. We are pleased to announce a saving effective 1 July, 2016 for current clients to enjoy

25% on Xero subscription fees ongoing.

Creating and implementing game-changing ideas is what drives and inspires us. And it’s not just talk – for new clients that sign up to our bookkeeping and accounting services we have a limited number of

50% discount XERO subscriptions!

At Keeping Company we are experts in Cloud Accounting and use the best add-on softwares available to help our clients do better business by improving efficiency, saving time and costs.
We offer specialised one-on-one XERO software training with one of our XERO Certified Advisors which can be customised to your individual needs. Find out more here.

The Xero platform has made hundreds of product updates, and added powerful new features and integrations over the past couple of years. Read on for some great examples.

Innovative payroll for small business

Processing payroll can be time-consuming and complex – basically, a major headache for business owners.

Payroll in Xero makes it easy to manage your payroll from anywhere. It saves hours of administrative work and lets you lodge reports with the ATO – all from within Xero. Your payroll data automatically appears on your general ledger after a pay run to help keep your accounts up-to-date.

Payroll has rapidly evolved with significant updates in the last two years. Here are some of the recent highlights:

Seamless and compliant superannuation
Auto-super on premium plans automatically makes contributions to different super funds for your employees. Xero’s auto-super is gold-level certified for SuperStream, the ATO’s new superannuation payments standard. All businesses need to use a SuperStream compliant service by 30 June 2016.

Mobile app that cuts the paperwork from leave requests and payslips
With Xero Me, our app for payroll users, employees can request leave and managers can approve or decline it – all from their mobile. Xero Me saves on administration because employees can view their pay history and submit timesheets from anywhere.

Pay out unused leave when employment ends
Save time and hassle by processing final earnings, unused leave balances and any redundancy payments in a single pay run. Increase accuracy because tax on unused leave is calculated automatically.

Easily view and manage leave
It’s now simpler to view accrued leave and opening balances, and leave requests are automatically included in applicable payruns.

The end of financial year has arrived

By | Business Bookkeeping Services | No Comments

For many businesses, the end of financial year is the busiest time of the year. The start of the new financial year is filled with plenty of obligations – and now’s the time for businesses to get started.

With so many balls to juggle, including SuperStream, tax payments, record keeping for payment summaries and adherence to the new tax laws, businesses can’t afford to fall behind.

Thankfully, there are ways you can get ahead in the new financial year. MYOB customers who upgrade their software have access to a range of new features to start the new financial year ahead of the gap with a streamlined accounting system.

Using online accounting software to take care of GST, invoices, reporting expenses and payroll gives an accurate view of your cash flow and makes end of financial year obligations easier.

BAS lodgements

Make sure BAS lodgements and super guarantee (SG) contributions are accurate and up-to-date.

If your business is behind on tax and BAS payments, make sure that payment arrangements have been entered and complied with the ATO. Review the GST codes assigned to profit & loss and balance sheet items to ensure they are correct so that you are lodging accurate BAS statements.

PAYG payment summaries

Online accounting software like MYOB will allow the user to print PAYG payment summaries for their employees using either pre-printed forms available from the Australian Taxation Office or plain paper. MYOB software can also create a file containing the entity’s PAYG payment summary information as required by the ATO for electronic submission.

When you close a payroll year, all pay history amounts from the year you close are cleared from your company file, and your company file is prepared for a new payroll year.

Complete a stocktake

If you carry stock, your stocktake of inventory should be completed by 30 June.

If you have excess/missing/spoilt stock items identified from your stocktake, you will need to adjust your quantities in the stock module as at 30 June, to make sure it is reflected in the 2015/16 financial statements.

Collaborative work

We live in a digital age and with online accounting, work needs to be done no matter where you are. By using MYOB, you’ll be able to share your files with your accountant in real-time. No more manual file sending, and no more emails. Just simple, real-time collaboration over the web.

Please consult your accountant or tax adviser if you have any questions.

Make time for planning

To prepare for the financial year ahead, allow yourself time to plan.

Create or update your business plan, don’t lose sight of the big picture by getting caught in the detail. Your business plan is a strategic view of your business.

Plan your business financials as soon as possible into the new year. Know your targets and your key dates.

By Ryan Miller. Read the original article at MYOB Pulse.

ACNC Annual Information Statement and Double Defaulters at Risk

By | NFP Accounting | No Comments

The Annual Information Statement (AIS) is required to be lodged with the ACNC for every completed financial year.

Depending on charity size the following reporting options are mandatory:

* Small charities – < $250,000 – only AIS
* Medium charities – $250,000 to $1,000,000 – AIS and financial report either reviewed or audited
* Large charities – + $1,000,000 – AIS and audited financial report

The due dates for the AIS and financial report are generally 6 months after the end of your financial reporting period, so for 31 December year end this date is fast approaching.

The ACNC has also recently released a list of those charities that are at risk of being double defaulters if they don’t lodge by 30 June.

The ACNC has also stated that double defaulters are at risk of losing their registration being revoked which would also mean that they would lose their entitlements to charity tax concessions which is an extremely serious punishment.

The moral of the story, make sure you take the ACNC lodgements seriously and lodge on time.

Click here for details of those charities at risk.

Empowering your business with one more click.

 








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