Tips on Minimizing Your Business Tax

As a business owner, you don’t want to spend more tax than is necessary. It is also best to avail the services of the accountants, like¬†Accountants Cherry Black, for consultations and proper tax filing. Yet, consider these top 10 tips from business tax accountants to help you get the best of tax deductions and refunds.

1. If possible, your taxable income should be deferred until the following financial year. The income receipt can be delayed by cash based businesses while invoicing can be deferred by non-cash operations.

2. Take advantage of a tax deduction by writing off old plant or stock before 30 June.

3. For year end expenses incurred but not yet actually paid by 30 June, claim an immediate deduction.

This includes employee salaries and wages earned but not paid by 30 June. In addition, staff bonuses also qualify for a tax deduction when it is a definite expense that the business has committed to.

Any maintenance and repairs are also tax deductible if billed and undertaken before the end of the tax year.

4. Instead of paying full income tax at 46.5%, split the income as company (30%) or lower taxed spouse (16.5% or 0%).

5. Physically write off the business’s bad debt before 30 June. This can only be done if you have proof that you have have genuinely attempted to recover the debt. Also, the debt has to have been shown as income before being written off.

6.Small Business Entity (SBE) concessions are available for businesses with a turnover of less that $2 million.

For example, prepaying expenses like interest, insurances, rent, subscriptions, rent and lease payments enables an immediate deduction.

7. Don’t get caught in the trap of spending money simply to qualify for tax deductions. Remember, you will only receive 30% back if you are a company held business.

8. Pay your employee superannuation contributions by 30 June in order to be eligible for the tax deduction of that financial year.


9. Before the end of the financial year, repay any interest and principal on any loans borrowed from your company. If you don’t, the entire loan amount will be taxed at the much higher marginal rates. This may include using company assets like vehicles for private use.

10. Finally, in the event of a tough financial year, you can vary the PAYG instalment for the last quarter of the financial year.

Ideas On Selling Investment Property

The goal of an investment property is to make money for the owner; so when it comes to selling that property, making a profit is going to be a top priority. In many ways, selling an investment property is similar to selling a home, where you hire an agent to market the property to potential buyers. However, investment properties operate under different tax rules than the home you live in, so you’ll need to be aware of this. Here are some factors to consider when thinking about whether to sell your investment property.

The Neighborhood Has Changed


If you purchased a good property when the market was down, you may have made a nice return, and it could be a good time to cash out. However, if the opposite has happened and the neighborhood is deteriorating, you might want to get out before property prices in the area fall too far.

The Property Needs Major Repairs

Whether it’s a crack in the foundation or a roof that needs to be replaced, if substantial repairs are needed and you don’t want to put the time, money and energy into it, it may be time to sell the property. However, you will need to disclose these issues to the buyer which may affect the property price.

The Property Is A Tax Liability

Owning property can actually raise your tax bracket, so that may be a good reason to sell, especially if you are no longer interested in being a landlord. Before selling, take note of the expiration of any potential tax abatements.

There Are Better Returns Elsewhere

When looking at your investment, you should consider all of your options. If you have had a property for a long time, it may have increased in value, which could be a good opportunity for conveyancing the property and diversifying the proceeds into other properties or investments, such as stocks and bonds.

Managing Your Money

Managing your money is crucial to your financial health. Take proactive steps to handle banking, money and accounting issues. This way, you will keep track of your spending and save money.

1) Keep all paperwork


Keep accurate records of all your financial transactions. Have a separate file for income and another one for expenses. Once you know where the money goes, you can take steps to cut expenses.

2) Keep it Simple
Your financial records do not have to be complicated. A simple spreadsheet will do. Just keep the records simple and you will achieve great results with it.

3) Keep Multiple Accounts It is not prudent to have only one account. You should have at least to bank accounts. One account should be your salary account while the other one is your savings account. This enables you plan your income and save money.

4) Payment Dates
You should harmonize your direct debit dates to ensure there are no gaps between the payday and the payment due dates. This way, you pay your bills conveniently and have a healthy liquidity position all the time.

5) Clear Debts First
Pay off your debts as soon as you can because servicing a loan takes a large chunk of your money. Avoid payday loans and take bank loans only when you need them.

6) Audit Your Accounts
Take out time to audit your personal accounts every week. This is one way to spot unnecessary expenses and take corrective measures.

7) Keep to the Agreements
Keep agreements with your banker and your credit card companies. Avoid late payments and always play by the rules. This way, you will save money on bank charges and penalty charges.

8 ) Understand Online Benefits


Most banks offer internet banking services these days. Take advantage of the online option and manage your accounts from the convenience of your home or office.

9) Pay Attention
Review your transactions regularly and look out for errors and omissions. Report any suspicious looking transaction to your banker and never take things for granted.

10) Read the T&Cs
Finally, you should read all the terms and conditions and try to understand everything there. Knowledge is power so you should get all the information you need so that you will enjoy a beneficial relationship with your bank.

The Importance Of An Accountant

Over-relying on free or inexpensive accounting service tools for business analysis can prove ineffective and costly for many small business operators. Instead, it’s always wise to involve qualified accountants.

When dealing with professional accountants, it helps to know what to inquire and when. That way you can be sure that you’re getting your money’s worth.

What’s the best way to get in touch and how often?

Cultivating a frequent and healthy relationship with your accountant is essential. by frequent we mean weekly, monthly or bimonthly. Popular ways to get in touch include phone or via social media handles (Skype, Google, Facetime).

Preparing for the tax season


The primary reason why small business operators hire accountants is to get help with tax preparation. Get informed of new tax laws as well as deductions or claims you can take advantage of to minimise tax burdens. Its advisable to seek such counsel before the deadline of April 15.

Ongoing considerations

It’s in your best interests if your accountant gets to know more about your business as time progresses. This provision allows the expert keep you aware of new developments and to adjust to them in the shortest time possible.

How accountants can help grow your business

With a proper foundation, a qualified accountant can help small business achieve positive growth. First, you must build a robust financial model and update it regularly.

Keeping track of cash flow

Projecting business cash flows can be a daunting task. However, with the help of a qualified accountant, such an exercise becomes much easier. Once you develop a clear projection, the next step is to stick to it.

Understanding your break-even point

Understanding your business’s break-even point is essential in determining aspects such as pricing and profitability. Accountants can help you estimate how many products or hours you need to work to break-even.

Assessing your business value

By examining your financial blueprint and applying the discounted cash flow analysis, your accountant should be able to estimate your business’s worth.

Negotiating business contracts with accountants


Though accountants are not licensed to practice law, they can collaborate with your attorney to offer a better experience.

Finally, remember to strictly follow your accountant’s advice, its the whole point of hiring them in the first place.

Effective Ways To Invest

Investing for the future is extremely important; however, many people are unsure about how to handle money and accounting principles. Below are a few strategies that can help you to successfully reach your long-term investment goals.

Reinvesting Dividends

Many companies allow you to automatically reinvest dividends when you purchase stock in their company. This is often a good way to build up your share volume and increase your holdings. If you are invested in a mutual fund, the dividends of your securities are usually automatically reinvested into the fund which allows you to buy more shares in the fund without incurring a fee.



Diversification is a strategy in which you purchase a variety of different investments, such as stocks, bonds and real estate assets, to reduce risk from market volatility. With diversification, the value of your assets is not dependent on the performance of one particular security. Mutual funds allow you to diversify your investments easily and cheaply as your investment dollars are spread out over several different securities. You can diversify your assets even further by investing in more than one mutual fund.

Systematic Investing

For long-term investment goals, the length of time that you invest matters more than timing the market. Systematic investing is a good way to ensure that you have enough funds to meet your financial goals. It is also an easy and effective way to accumulate a lot of assets over time. With systematic investing, you are paying yourself first, before bills and rent. Some mutual fund companies allow you to invest small, minimum amounts using automatic electronic fund transfers from your account without you having to think about it.

Dollar Cost Averaging

stocks exchange

Systematic investing allows you to benefit from dollar cost averaging. This is a disciplined investment strategy that involves investing a certain amount of money regularly so that you can purchase more shares when the share price is low and fewer shares when the price is high. This means that you will pay a lower average price for your shares than someone who only tries to time the market. This strategy can greatly increase the value of your investments over time.

Helpful Advice For Your Finances

Money is a major source of stress for many people, particularly for millennials who may not always possess the life experience and financial knowledge that older generations have. In addition, many millennials feel that they have made good decisions, such as getting a college degree, only to wind up with debt or find themselves facing one money issue after another. Here are some of the typical financial problems millennials may face and some tips for dealing with them.

Too Much Debt

For many millennials, having too much debt (including student loan debt and credit card debt) is their main source of financial stress. To tackle this issue, it may be tempting to ignore the problem, but it is important to make a plan to get out of debt. To avoid spending years paying off the debt, you will need to pay more now. This will not only help you to get out of debt faster, but you will also avoid paying thousands of dollars in interest charges. In addition, try to pay more than the minimum payment each month if possible. Another good strategy is to negotiate with your bank or credit card company for a lower interest rate.

High Rent And Living Expenses


Many millennials prefer to live in big cities to pursue jobs and enjoy a more active social life. However, this often translates into a higher cost of living. If you want to live in a big city, try to take advantage of the amenities in order to lower your living expenses. For example, get rid of your car and use the city transit instead. You can also try splitting the rent with a roommate, or negotiate with your landlord for a rent decrease. Another important step is to grow your income so that it keeps pace with your high living costs. You can do this by looking for freelance jobs or working side gigs for extra money.

The single best way to tackle financial problems is to aim for a lower cost of living. Don’t be afraid to live more cheaply than your friends or move to a cheaper city if it helps you meet your financial goals.