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The ATO Is Reinstating Closed Businesses To Chase Debt: What You Need To Know

Hilary@emergencyaccounting.com.au (EPAS Marketing) — Tue, 09 Jan 2024 09:52:51 GMT

The ATO Is Reinstating Closed Businesses To Chase Debt: What You Need To Know

Do you have legacy debt and are starting to feel like perhaps you “got away with it?” Think again, because the ATO is starting to chase down the pre-pandemic debts that it is owed, and court is going to be a powerful tool for its debt recovery efforts.

It should go without saying that a court date with the ATO is a level of stress that you absolutely do not need, and so if you do have some long-term debts, you should contact the team at Emergency Accounting now to work out what the best path forward is for you.

You’re not even covered if you’ve wound up a company that still had ATO debt attached to it. Directors of these former companies are starting to be blindsided as the ATO has the ability to reinstate some companies as it dusts off the old files. For this, the ATO is particularly focused on debts accumulated before COVID, which it was then unable to chase through the courts during COVID restrictions.

Essentially, if your company has been struck off for a non-lodgement of returns over the last several years, the ATO can apply through the Corporations Act and get your business reinstated. That’s when you’ll start getting threatening letters from the ATO for a business that you thought was now history.

You’ll Be Personally Responsible

The ATO has been using Director Penalty Notices (DPN) to hold directors personally liable for company debt. This means that directors can be held accountable for the debts of a company that may have been deregistered by default during the last three years.

The process works as follows: The ATO appoints a liquidator for the purpose of being able to chase either the company because they know the company had assets before it went into liquidation or got struck off, or the directors if they have assets and the ATO wants to chase them for the debts.

For example, there was a story recently of a director of a company that was liquidated in 2019 who said that the ATO had issued them with a DPN linked to the superannuation guarantee covering the 2015 and 2016 financial years.

This is not a situation that you want to be in, or debt that you want. It can affect your personal credit rating and become a real legal risk to you personally. If it gets to that point you’ll probably also need a lawyer, but if you have any residual concerns about a business that you have wound up in recent years, you should be preparing now by speaking to specialist accountants, like the team at EPAS, to understand how at risk you are.

What Can You Do?

When it comes to these debts, there is some real complexity around them. Furthermore, your negotiating position with the ATO may be different, given the length of time that the debt has gone unpaid, and that the ATO is resorting to its most powerful strategies to recover the debt.

Or in other words, while in the past the ATO has been somewhat amenable to payment arrangements and reducing debt via a reduction in the level of interest accrued, as it is for many current companies that accumulate tax debt, there are indications that it’s not going to be as flexible in this area.

It’s critical that you get out in front of this, and speak to EPAS about tax debt help before you get the letter from the ATO. We will be able to look into your company’s history and determine what, if any, steps you need to take (or whether it’s likely that the ATO will be in touch with you).The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

Understanding How To Negotiate With The ATO

Wed, 06 Dec 2023 07:08:45 GMT

Understanding How To Negotiate With The ATO

People often have the idea that the ATO is an inflexible and difficult organisation to deal with. Of course, no one likes paying tax, so the fact that the ATO is there to collect tax immediately predisposes people to dislike it!

However, the reality is that the ATO is motivated in the best interests of us all. That taxation revenue is essential for the nation, but at the same time, the ATO wants businesses to stay open, keep people employed, and have the opportunity to grow.

To help it achieve the second objective, the ATO has several tools for negotiation. By comping to Emergency Accounting for your tax debt help, our team will be able to help you make the most of that opportunity. You’ll soon realise that in a lot of cases, tax debt is optional .

Why you need the right accountant

The role of an accountant in this process is multifaceted. They not only help you understand the complexities of tax laws but their expertise can help you navigate through the negotiation process, ensuring that you are well-prepared to discuss your tax debt situation with the ATO.

When negotiating with the ATO, it’s important to be transparent and honest about your financial situation. That means, firstly, that you need to fully understand your financial situation, and how the ATO will view it.

This means that before you start interacting with the ATO, you first need to conduct a full and complete audit of your environment. This is the first thing that we do at EPAS – we will help you dig through your entire financial situation, so that you are able to prepare all the necessary documentation and financial statements that you’ll need.

This level of preparedness has a secondary benefit in allowing you to demonstrate to the ATO that you’re taking your obligations seriously, and that you will be a good-faith negotiator in what you ask for.

What you can expect from negotiation

One of the key outcomes of successful negotiation with the ATO is the ability to enter into a payment plan. This is important as it eases the immediate financial burden on your business, as well as any cash flow concerns that may have arisen, if you were required to pay the debt back up-front. The team at EPAS will help you here, by helping you flag to the ATO what would be a realistic and manageable payment plan for your business.

Another issue that many face with the ATO, and need tax debt help with, is the accumulation of penalties or interest charged on the tax debt. Here, if you can demonstrate that your failure to pay was due to circumstances beyond your control, the ATO will often be willing to remit some or all of these charges. Thanks to the audit and strategic guidance that we provide, you’ll be in a strong position to make that argument.

Then, finally, if you can demonstrate that full payment of the debt would put your business at risk, the ATO may agree to a compromise. The ATO understands that circumstances with businesses can be fluid, and where the economy was strong at one moment, in the next it weakens and suddenly the business doesn’t have the same financial resources available to it. In partnership with EPAS, you’ll be able to make a compelling argument for why you should be paying cents on the dollar.

Don’t hesitate if you feel you need tax debt help

Successful negotiation with the ATO can result in the preservation of your business reputation. By addressing your tax debt proactively and responsibly, you can avoid the negative publicity associated with legal action or insolvency. Even if you do subsequently wind down the business, this more positive outcome will make it easier to start the next.

It’s important to remember that negotiation with the ATO is not a guarantee of debt forgiveness. The ATO does have the means to take legal action if it feels like you do owe the full scope of the debt.

To give yourself the best chance to discharge your tax debt in a healthy way, you need the support of accountants who understand the full breadth and dept of complexities in ATO negotiation. Your business is too valuable to risk trying this yourself or working with accountants that are not specialists in emergency accounting. That’s why you should take advantage of EPAS’ 24/7 hotline, and get started immediately.

Why Trying To Pay Your Tax Debt Down Yourself Could Harm Your Business Even More

Hilary@emergencyaccounting.com.au (EPAS Marketing) — Thu, 16 Nov 2023 05:28:56 GMT

Why Trying To Pay Your Tax Debt Down Yourself Could Harm Your Business Even More

Tax debt for businesses is not that uncommon, and it doesn’t need to be a sign of a business in trouble, either. When it occurs, many people choose to do one of two things: either they bury their heads in the sand and hope the problem goes away (which, of course, it won’t), or some go the other way: they decide to try resolving tax debt by aggressively paying it down.

That sounds like a good idea, right? If you’ve got debt and you focus on paying it off, then you’ll be debt-free at the other end. However, this can actually do more harm to your business than good. Many of the people who come to Emergency Accounting have found themselves in this hole, and it’s often a lot of desperate work to make the business viable again.

Why can aggressively targeting debt repayments be a problem?

The first big reason is that aggressive repayment can actually cause business challenges is the cash flow problems that it can cause. Cash flow is the lifeblood of any business, and every dollar that you’re paying into debt repayments becomes a dollar less to your cash flow. This could lead to a vicious cycle where the business incurs more debt from lenders to keep operations running while you pay the tax down, thereby exacerbating the initial tax debt problem.

Secondly, and related to the cash flow issue: An aggressive repayment strategy could mean missing out on growth opportunities. If all available funds are directed towards paying off tax debt, there may be little left for investing in new projects or expanding operations. Especially in the current economic climate, it’s critical to be growth-orientated, and to do that you need to have money available for investment.

Finally, focusing too much on tax debt could divert attention away from other important aspects of running a business. Every minute on the phone with the ATO is a minute less time you have to plan business strategy, make sales outreach, or speak to partners. The more time and energy that you spend on dealing with the tax debt, the more your business gets left in the background.

Why managing your tax debt yourself is not the best approach

A tax debt might seem like a simple matter of making a number that the ATO sends you go down, however, it’s rarely that simple. Tax laws are complex and constantly changing, and without a thorough understanding of these laws, businesses could end up paying more than necessary or even incur penalties for non-compliance.

It’s also worth noting that one of the biggest mistakes you can make is to assume that the tax debt that the ATO sends you is the final number. The ATO is motivated by two things: compliance (making sure that tax returns are handed in), and extracting tax while keeping Australia’s businesses healthy. They don’t want to see businesses close because of tax debt, because that means unemployment and, at a wider scale, slows down the Australian economy.

Because of this motivation, the ATO does have programs in place to help businesses manage and even reduce their tax debt, and you may well be eligible for them. These can include payment plans, temporary deferrals, or even debt forgiveness in some cases. To explore these options you need accountants that are familiar with ATO negotiation, but by not exploring these options, you could miss out on opportunities to reduce their tax burden.

Again, don’t ignore the tax debt. Not only will it not go away, but if the ATO believes that you’re deliberately trying to escape notice and not pay the tax debt, your negotiation position will be weakened. It’s critical for business owners to take their tax obligations seriously and in good faith make efforts to pay off their debt. The key is to do so in a way that is sustainable and doesn’t jeopardise the health of the business.

This is where EPAS can help. We are experts in auditing businesses to understand what burden of tax debt they can handle, and then negotiating with the ATO to gain the best outcome for our clients. And then we’ll help you structure your business so that tax debt will become a thing of the past. Contact us today for more information!

You don’t want to risk the credit rating of your business

Fri, 13 Oct 2023 05:06:26 GMT

You don’t want to risk the credit rating of your business

The Australian Taxation Office (ATO) has recently issued a stern warning to businesses with substantial tax debts. The ATO has stated that it will disclose these debts to credit reporting agencies once they go over a certain threshold and remain unaddressed for too long.

You don’t want a bad credit rating on your business any more than you want a bad personal credit rating. If you’re in danger of being one of the companies that the ATO reports, you need to get on top of the debt immediately.

You’ll be in the ATO’s crosshairs if your tax debts exceed $100,000, and they’re overdue by more than 90 days.

What does this mean for your business?

Just like a personal credit rating, credit providers will check a business’s credit score when that business applies for credit.

If the credit rating comes back as poor, then the financial provider will question whether the business can service its debt. That will mean that credit will become more expensive (with a higher interest rate and fees, so the finance provider can protect themselves from risk), or the business will be flatly denied the credit.

This can be catastrophic for a business. Without access to credit, it can be difficult to invest into growing the business, or even maintaining cashflow and operations with suppliers. Businesses with bad credit ratings generally struggle to survive long enough to restore their credit to good standing.

This is particularly true, given that that there is still the debt to the ATO to deal with… and now using credit to manage that debt is no longer possible.

What should you do if you’re at risk?

The first priority should be to avoid the situation where your business owes the ATO large amounts of unpaid tax.

If you are accruing ATO debt, contact the EPAS team early on, when the debt is smaller. Not only will we help you discharge that debt – often for cents on the dollar – but we’ll conduct a full audit of your business and help you address the weaknesses that allowed the debt to occur in the first place.

That’s the optimal solution. If you have wound up in a more desperate situation, however, we can still help.

As Australia’s only specialist Emergency & Preventative Accountants, we specialise in helping clients deal directly with the ATO, by providing support in negotiations and presenting a case to the ATO for lowering the tax debt. Though the ATO can seem hostile, its overarching goal is to help businesses stay in operation and compliant, and with the right, good-faith negotiation support from EPAS, in most cases it’s possible to work out a solution that will keep your business solvent and, ultimately, debt-free.

Once you’ve dealt with that initial debt, it’s important to structure the business in such a way that it won’t happen again. To assist with that, we will perform a deep dive analysis of your business's financial position and build long-term solutions that will bring your business into a financially stable position. Many other accountants miss opportunities there, with services that are less than strategic. When you’re facing tax debt, you need a partner that understands how businesses get into trouble, and what can help them dig their way out.

While the ATO’s move to disclose business tax debts to credit reporting agencies may seem daunting, and it is likely to affect thousands of businesses across Australia over the next year, it’s important to remember that there are resources and services available to help. With the right tools and strategies, your business can face down tax debt, and return stronger than ever.

Whatever you do, though, don’t ignore the problem. Tax debt doesn’t disappear. It’s something you need to address. If you are facing ATO debt, then the best time to contact EPAS is yesterday. The second-best time is right now.

Cash Won’t Help You Dodge Tax

Mon, 28 Aug 2023 05:44:25 GMT

Cash Won’t Help You Dodge Tax

It’s tax time, which means that you’re probably preparing to submit your tax return for your business (or, at least, you’re planning to prepare to!). As always, it’s critically important to make sure that your paperwork is accurate, and every year the ATO gets better at catching those instances where it’s not.

One of the most common ways that businesses try and avoid tax is by under-reporting the revenue they earn from cash – “cashies”.

However, the ATO is getting better at tracking these payments, and the penalties for being found to be in breach can be severe. There are ways to minimise the tax that your business pays, and you should absolutely contact the expert team at EPAS to help you claim every deduction and entitlement that your business is entitled to.

What you should not do is under-report cash.

How the ATO tracks cash payments

As the ATO has warned this year , it has upped its game on tracking cashies significantly. It does this through several means:

1) The Taxable Payments Annual Report (TPAR): Businesses that use contractors are obliged to submit this by August 28, 2023. This

forms one of the core ways that the ATO tracks payments to people who aren’t employees. Contractors are obliged to maintain an ABN, with payments from organisations to the contractor attached to the ABN. This allows the ATO to track the amount of revenue that a contractor has come in across all of their clients.

2) Data matching: The ATO can compare the information reported by businesses with the data from other sources, such as banks, other government agencies, online platforms, and third parties. This can help the ATO identify discrepancies or anomalies in the income, expenses, or transactions of businesses. For example, if a business reports less income than what the bank records show, the ATO may detect this mismatch and investigate further.

If the ATO then discovers a discrepancy, it will investigate further. It does this through an audit. Through an audit, the ATO can examine the records, books, and documents of businesses, as well as interview the owners, employees, customers, or suppliers. The ATO can also use electronic devices, such as laptops, smartphones, or tablets, to access information stored on them.

What are the penalties for being caught?

If you’re caught for having underreported your income, then not only will you need to pay the balance, but you’ll also likely be penalised. Penalties can range from 25% to 75% of the shortfall amount, depending on the severity of the case. Additionally, there will be interest charges calculated from the date that the tax was due to be paid until the date it is paid.

Additionally, if tax avoidance is habitual or particularly egregious, it can come with criminal convictions. The maximum imprisonment time could be as much as ten years.

It’s best to assume that you can’t get away with tax avoidance. That doesn’t mean you won’t be able to find ways to reduce your tax debt obligations, but rather that you should speak to the experts at EPAS for ways to do things “by the book” and avoid concerns about audits and potential penalties.

And, if you’re not sure about whether you were obliged to complete a TPAR, the deadline for that was this week, so make sure you speak to us as soon as possible to investigate!

Preventing Recurring Tax Debt: Key Strategies For Australian Businesses

Mon, 14 Aug 2023 05:16:59 GMT

Preventing Recurring Tax Debt: Key Strategies For Australian Businesses

If you’ve experienced tax debt in the past, then you understand better than most the financial strain that it can put on your business. Once you’ve discharged the debt, the goal has to be to avoid ending up with tax debt again. And yet so many businesses manage to drag themselves out of a hole only to go back in again and need tax debt help for a second time.

It is so important to learn from past mistakes and develop effective strategies to prevent a recurrence of tax debt. This is where EPAS comes in. Not only do we assist businesses get control of their tax debt and discharge it in a way that doesn’t adversely affect their business, but in the process we will also audit your business to come to an understanding of what has caused the debt in the first place. From there we will provide expert guidance on how to avoid it happening again.

In general, the best approach to preventing your business for falling into the tax debt trap a second time is:

1. Learn from past mistakes:

One of the most critical steps in avoiding recurring tax debt is a thorough analysis of past mistakes. The first thing that we do with our clients is understand the root causes that led to the previous tax debt and identify areas of weakness in their financial management, compliance, and record-keeping processes. This analysis should be comprehensive, and we’ll work with all your key people to come to this understanding.

By identifying and acknowledging the past missteps, businesses can develop a clear understanding of what went wrong and implement effective measures to prevent repeating those errors. This self-awareness is crucial for building a solid foundation to prevent future tax debt issues.

2. Implement strong financial management practices:

Once you know what went wrong, the next step is to make sure that you put the mechanisms in place to make sure it doesn’t happen again. This means you need a robust financial management system. You need to keep accurate and up-to-date records for tracking financial transactions, income, and expenses. Oftentimes we find that our clients need to simply use better accounting software or engage with us on an ongoing basis, because they were trying to do their accounts themselves and that was outside of their area of capability.

The budget is part of this. We will work with you to craft a budget and financial plan to ensure they have sufficient funds available for tax obligations while still being able to continue business as normal. By closely managing your finances with the discipline that we will bring to your business, you will be better positioned to avoid the temptation to use tax funds for other purposes, which can lead to cash flow issues and potential tax debt.

3. Comply with tax laws and regulations:

Strict compliance with Australian tax laws and regulations is vital for preventing tax debt. Staying up to date with any changes in tax rules that may impact the business is essential. But you don’t need to take this on yourself! Your own time is better spent dedicated to the business, while experts like the team at EPAS will support you in staying across the ever-shifting tax landscape.

We’ll also make sure that you get your lodgements in in time. Timely lodgement prevents late penalties and interest charges, which can quickly accumulate and lead to tax debt.

4. Develop a tax planning strategy:

Leveraging the expertise of the EPAS team and engaging in proactive tax planning is a crucial aspect of preventing tax debt. Businesses should develop a tax planning strategy to forecast tax liabilities and optimise tax deductions and incentives. Regularly reviewing and adapting the strategy based on changes in business circumstances and tax laws is essential to its effectiveness.

5. Establish internal controls:

Finally, putting in place internal controls and oversight mechanisms is vital to prevent financial mismanagement, errors, and fraud. Businesses should establish procedures to ensure that financial processes, including tax-related matters, are carried out accurately and efficiently. You’d be surprised just how often a lack of oversight into the accounting at a business allows human error (or malicious intent) to drag an otherwise healthy company into a deep pool of tax debt.

One of the strategic areas where EPAS will help your business is in encouraging a culture of transparency and open communication within the organisation. Employees should be encouraged to report any potential tax-related issues or concerns promptly, ensuring that problems are addressed before they escalate into tax debt situations.

None of this needs to be difficult or stressful. A lot of business owners lose sleep and stress about interacting with the ATO on any level, but getting on the front foot is the best strategy for preventing your business from falling into tax debt a second time.

By learning from past mistakes, implementing strong financial practices, adhering to tax laws, developing a tax planning strategy, and establishing internal controls, businesses can build a solid foundation for financial stability and avoid falling into tax debt a second time.

Remember that EPAS is here to help you, not only in that emergency stage when you need tax debt help the first time, but also to help you to restructure your business so it never happens again. Most of our clients continue to use us for years after their business has been returned to a healthy position, simply because we’re just as effective at preventative accounting as we are at emergency accounting . Contact us today to get started right away!

Don’t get caught out by ATO data matching!

Mon, 03 Jul 2023 08:13:25 GMT

Don’t get caught out by ATO data matching!

Every year the ATO investigates and “catches” individuals and businesses that have made inaccurate claims on their tax returns, or neglected to declare revenue streams. And every year they get better at using data matching techniques to collect the data they need to flag these inaccuracies.

If the ATO audits you and you’re found to have underreported or misled with your tax return, the penalties can be severe, and even involve jail time. Sadly, in some cases, such incidents have nothing to do with the individual. Rather, their accountant has overlooked something or made an error in completing the tax return on their behalf.

To avoid that, you should speak to the team at EPAS. We will look to maximise your tax return, but our proven processes and the depth with which we work with you will ensure that the ATO has nothing to audit.

What is ATO data matching?

This year the ATO has widened its data matching capabilities to include information from property managers, landlord insurance and sharing economy providers. If any of those apply to you, you need to be particularly careful with how that information is reflected on your tax return.

Data matching refers to the process conducted by the ATO to compare data from various sources with the information provided in taxpayers' tax returns. The purpose of data matching is to identify any inconsistencies, errors, or discrepancies that may exist between the data reported by taxpayers and the data obtained from other sources.

The ATO already receives data from a wide range of sources, including employers, financial institutions, government agencies, and other third parties. This data includes details such as income, investment earnings, capital gains, dividends, interest, and various other transactions. By comparing this information with what taxpayers have reported in their tax returns, the ATO can detect instances where individuals or businesses may have underreported their income or failed to fulfill their tax obligations.

When inconsistencies are identified, the ATO will almost certainly initiate compliance activities, such as conducting audits, issuing amended assessments, or taking other enforcement actions to address any tax-related issues.

What data matching means is that the ATO is going to be very efficient at what it does. It can run checks against many more people in any year, and, thanks to automation, flag more issues for its employees to then follow up.

The ATO receives around 12.4 million income tax lodgements each year, and while it acknowledges that it can’t verify each of them, the data matching strategy helps close the gap significantly. The long-and-short of it is that if you’re worried about your tax return, rather than trying to “fudge” the results, you should instead speak to experienced accountants about what you can do.

Give yourself peace of mind that even with data matching the ATO’s not going to audit you. Contact EPAS today!

Take a deep breath and stay calm – it’s tax time

Fri, 16 Jun 2023 06:29:14 GMT

Take a deep breath and stay calm – it’s tax time

Happy new (financial) year! This time is a particularly busy one for anyone running a business, but do take a moment to step back and reflect on the year that was. Hopefully you have a big year ahead, too!

For now, though, it’s time to focus on tax time. Preparing your business for the end of the financial year requires careful planning, organisation, and careful checking to ensure that you’re submitting the right reports to the ATO, and therefore avoiding potential tax debt, audits and penalties.

Here are our nine tips for making tax time as smooth and painless for your business as possible:

1) Review your financial records: Start by reviewing your records for the financial year, including income statements, profit and loss statements, balance sheets, and bank statements. Ensure that all records are accurate, complete, and properly categorised. Identify any inconsistencies or discrepancies that need to be resolved before tax preparation.

2) Organise your business documents: Organise all relevant business documents, such as invoices, receipts, expense records, and payroll records. Maintain a systematic filing system to ensure easy access and retrieval of necessary documents during the tax preparation process. This organisation will save time and prevent potential errors or omissions.

3) Understand tax obligations and deadlines: Familiarise yourself with the tax obligations and deadlines specific to your business structure. If you are unsure of anything, then don’t just guess! Check the ATO website for clarification or (better yet!) contact the team at EPAS so we can help guide you through the entire process.

4) Review and reconcile your financial statements: Conduct a thorough review and reconciliation of your financial statements, including income, expenses, assets, and liabilities. Ensure that all transactions are accurately recorded and classified. Address any discrepancies or errors to maintain the integrity of your financial statements and tax return. This is core to the EPAS service, and if you’d like to have us help with your tax lodgements, make sure you get in touch with us early so we can be part of this thorough review.

5) Understand deductions and eligible expenses: Familiarise yourself with the deductions and eligible expenses applicable to your business. These may include business-related expenses such as rent, utilities, employee wages, superannuation contributions, professional fees, and marketing expenses. Keep accurate records and ensure that all deductions are supported by appropriate documentation.

6) Review and reconcile employee records: Review and reconcile your employee records, including payroll records, superannuation contributions, and payment summaries. Ensure that you have accurately calculated and reported the right data for each employee.

7) Consider asset depreciation and capital gains: Evaluate your business assets and determine their depreciation rates based on the applicable tax laws. Understand the rules around capital gains and losses and ensure accurate reporting of any asset disposals during the financial year. Maintain proper records and documentation to substantiate these transactions.

8) Conduct a stocktake: If your business involves the sale of goods, conduct a stocktake to determine the value of your inventory at the end of the financial year. Ensure that your stock records are accurate and up-to-date. Consider any obsolete or damaged stock that may need to be written off.

9) Lodge your business activity statement (BAS) on time: Ensure timely lodgement of your business activity statement (BAS), which reports your business's goods and services tax (GST) obligations. Be aware of the lodgement and payment deadlines to avoid penalties and interest charges. Utilise the ATO's online services, such as the Business Portal, to facilitate the lodgement process.

And if all of that sounds like a lot…

That’s because it is! There is a lot to go through during tax time, and for small businesses owners trying to do it all themselves, it can be a big headache.

That’s where we come in. At EPAS we are specialists in emergency accounting, but we can also help you to avoid the emergency in the first place. Our preventative accounting services will help you to fill out and submit accurate documents to the ATO, while also minimising the tax that your business will need to pay.

Don’t waste time! Contact the team at EPAS today on our 24/7 hotline, get on top of this now and enjoy a smooth run into the new financial year.

I’m being audited by the ATO – should I panic?

Wed, 10 May 2023 07:37:45 GMT

I’m being audited by the ATO – should I panic?

If you're a small business owner and you've received notice of an impending audit by the ATO, it's natural to feel anxious and stressed.

Often, when this happens to people, they will panic, and this will cause them to make mistakes. If you're a small business owner and you've received notice of an impending audit by the ATO, it's natural to feel anxious and stressed.

For example, they might rush the paperwork, and end up providing bad information to the ATO, which can cause further penalties.

Equally as often, they'll lock themselves into unmanageable levels of tax debt and fail to negotiate a payment plan that is reasonable for their businesses' circumstances.

Panicking is not the solution. Instead, remain calm, contact the team at Emergency Accounting so we can support you through this process, and methodically prepare for the audit and debt collection process.

Understand why the audit has occurred

Firstly, it's important to understand why the ATO is conducting an audit of your business.

In most cases, it’s simply a matter that the numbers that you’d supplied via a tax return or business statement doesn't match up with what they think you should have earned and paid in tax.

An audit is not an accusation. It’s simply an attempt to clarify the information that the ATO has on you and whether they need to undertake debt collection activities.

Alternatively, they may suspect that you have tax debts. Tax debt is a common issue for many small businesses and sole traders, and it's essential that you understand your obligations as a business owner when it comes to paying taxes.

In either case, you want the assistance of Emergency Accounting.

Firstly, we’ll be able to help you determine if there are any discrepancies or if you will owe money. From there we’ll also help you prepare your response.

What to do while being audited?

If your business is being audited by the ATO and you discover that you do have tax debts, it's important to be upfront and honest with the auditor. Not only will it prevent further penalties, but the ATO will be more inclined to engage in good faith and help you design a payment plan that your business can handle.

The ATO will inevitably discover any outstanding debts that you hide by themselves, and the penalties will be more severe for the deception. Speak to the team at Emergency Accounting to understand how to be forthright with providing the auditor all the information that they need to assess the situation.

One of the key things that we will do to help you prepare for an ATO audit is to ensure that your record keeping is up-to-date and accurate. This includes records of all of your business transactions, including invoices, receipts, and bank statements.

Having good record keeping practices will not only help you prepare for the audit, but it will also help you avoid future tax debt issues.

You may well be concerned to discover that have debts. This is another reason to have the Emergency Accounting team on your side. We will help you negotiate with the ATO and address the debt recovery in a way that your business can handle.

What to do during the audit?

During the audit itself, it's important to be cooperative and responsive to the auditor's requests.

Answer all questions truthfully and provide all of the necessary information in a timely manner. If you are unsure of something, ask for clarification. Remember, the auditor is not there to catch you out – they are simply doing their job to ensure that your business is compliant with tax laws.

If the audit reveals that you do have tax debt, understand that you’re not in trouble and the ATO will only seek to claim back the debt owed (with any applicable penalties). It is important to act quickly to address the issue and negotiate with the ATO, because they will be very open to a solution such as a payment plan.

With the support of Emergency Accounting, you can secure a payment plan that will allow you to address the debt without affecting the cashflow and health of the business.

There are also many payment options available to you to work with the ATO that are less well known, and EPAS will help you to explore every one of them to find a solution that is right for you.

Why you need emergency accounting support when addressing the ATO?

As emergency accounting professionals, we can help you understand your tax obligations and provide guidance on how to prepare for the audit.

They can also assist you in negotiating a payment plan if you have tax debt, which will both help you to avoid penalties and, potentially result in the ATO agreeing to reduce some of the debt to a more manageable level.

It's also important to understand your rights during an ATO audit.

The ATO has the power to request information and documents from you, but they must do so within the confines of the law. For example, they cannot force you to provide information that is not relevant to the audit, or that would incriminate you in a criminal offence.

While we are not lawyers, and you will need to seek further support should a legal action situation arise, we will help by flagging any areas where the ATO is crossing boundaries.

Don’t let tax debt stress you out

An audit and the potential tax bill at the other side seems scary, but there will always be ways to navigate the challenges.

With EPAS, we’ll help you chart a course to debt-free business health and ensure that the ATO never needs to audit you again. Contact us right away if you’ve been given a notice of audit.

The five main reasons businesses accumulate tax debt

Wed, 19 Apr 2023 05:24:38 GMT

The five main reasons businesses accumulate tax debt

One of the frightening things about tax debt is that it can accumulate quickly, and it’s often difficult to understand exactly where it comes from. If it is not addressed, it can also lead to serious financial problems for the business. One of the first things we’ll do when you come to us at Emergency Accounting is help you understand the reasons behind your tax debt.

In most cases, it boils down to one of these five causes:

1) Failure to File Tax Returns

One of the most common ways that businesses accumulate tax debt is, simply, by failing to file their tax returns. If a business fails to file a tax return, it may be subject to penalties and interest charges, and this is what starts turning the tax debt into a snowball, gathering size as it rolls down a hill. The longer you continue to ignore the debt, the bigger it grows.

It is important for businesses to file their tax returns on time, even if they cannot pay the full amount owed. The ATO offers payment plans and other options for businesses that are unable to pay their taxes in full at the time of filing. Furthermore, if your business would be put under financial stress, it may be possible to negotiate a reduction in the debt. However, again, this can only happen if you don’t ignore the debt and get on top of it early.

2) Underreporting Income

Another way that businesses accumulate tax debt is by underreporting their income. Businesses may do this by failing to report all of their sales or by taking deductions they are not entitled to. The ATO takes a dim view on this, and underreporting income can lead to serious consequences, including penalties, interest charges, and legal action.

To prevent this happening, businesses should keep accurate records of all of their income and expenses to ensure they are reporting their income correctly. They should also be aware of the tax laws and regulations that apply to their business and, if there is any question about any of it, rather than guess, the business should talk to the team at EPAS.

3) Misclassification of Employees

Misclassifying employees can also lead to tax debt for businesses. If a business classifies its employees as independent contractors, it may not withhold the appropriate taxes from their pay checks. This can result in the business owing back taxes and penalties to the government.

To avoid misclassifying employees, businesses should be familiar with the criteria for determining whether a worker is an employee or an independent contractor. They should also keep accurate records of the worker's status and pay them appropriately based on their classification. This is also something you should speak to the team at EPAS about if you have any question about it whatsoever.

4) Failure to Pay Payroll Taxes

Businesses are required to withhold payroll taxes from their employees' pay checks and pay them to the government on a regular basis. Failure to do so can result in substantial tax debt for the business.

If your business is struggling to pay its payroll taxes, you should immediately talk to the team at EPAS to diagnose why you’re finding it hard to meet this obligation. Not only will we audit your business and determine how to address the payroll tax issue, but we’ll negotiate with the ATO on your behalf to come up with a solution for your growing debt.

5) Unpaid GST

Businesses that sell goods or services may be required to collect a GST from their customers and remit it to the government. Failure to do so will result in the debt burden being placed on the company.

To avoid having the ATO investigate your business and find discrepancies, you should keep accurate records of your sales and collect the appropriate amount from your customers. It’s also important to make sure that you file your GST taxes on time with the ATO.

In the current challenging economy, tax debt is an avoidable expense that can seriously damage your business. Being accurate with your record keeping and making sure you don’t accidentally use the money in reserve for tax for the purposes of cashflow will help you keep your business in a strong position.

And, if you have any concerns about your tax debt and the health of your business, contact the team at EPAS right away. The sooner we can start working with you, the sooner your business will recover, and you will have peace of mind.

Is it possible for a business to recover from tax debt

Mon, 20 Mar 2023 07:07:38 GMT

Is it possible for a business to recover from tax debt

For businesses in Australia, tax debt can be a serious and stressful issue. However, with the right support and strategy, it doesn’t need to be. Not only is it possible for a business to recover from tax debt, but it’s possible for it to thrive at the other end.

To get to that point, though, you do need to take proactive steps to address the situation, and seek support from emergency accountants that can quickly move to address the problem.

How to deal with tax debt

The first step is to understand why you have tax debt in the first place. There is likely some underlying weakness in the business’ financial position that has led to it owing more to the ATO than it has been able to pay. Once you’ve worked with EPAS to fully audit your business and understand the root cause of the tax debt, we’re armed with the information that we need to reach out to the ATO.

The most likely outcome is that we’ll be able to establish a payment plan with the ATO. This allows the business to pay off the debt over time, in smaller, more manageable instalments while still maintaining the cash flow it needs to operate as normal.

One of the reasons that you want EPAS in your corner, however, is that the ATO may also be willing to waive or reduce penalties if the business can demonstrate financial hardship or extenuating circumstances. You need an expert negotiating partner to maximise the amount of debt that the ATO will be willing to write off, but it can be very significant indeed – even cents on the dollar. This is because the ATO has the default position that it would rather keep businesses open, so will do what is necessary to achieve that outcome. EPAS will help you to properly represent your business’ challenges to the ATO.

What if I just ignore the problem?

There are serious consequences for failing to address tax debt. The ATO has the power to issue garnishee notices, which can see funds taken directly from a business's bank accounts, or it may seek to wind up the business altogether.

The ATO is also less likely to be a flexible in negotiation with organisations that it perceives to be avoiding their obligations.

Therefore, it's essential to act as soon as you become aware that your business has an ATO tax debt .

In summary, while tax debt can be a stressful and challenging issue for businesses in Australia, recovery is possible. Communication with the ATO, seeking professional advice, and developing a repayment plan are all essential steps in recovering from tax debt. By taking a proactive approach and addressing the issue head-on, a business can get back on track and avoid further financial difficulties.

The recovery

One of the key benefits of working with EPAS for your emergency accounting is that, while negotiating with the ATO, we are also going to help you identify areas where your business can reduce costs and improve cash flow. This is especially important when dealing with tax debt, as the longer a business takes to address the issue, the more interest, and penalties they will incur. By quickly identifying areas where costs can be reduced, businesses can free up cash flow and make the necessary payments to the ATO.

But more than anything else, one of the things that our clients tell us they value most about partnering with EPAS is the peace of mind that we provide. It can be incredibly stressful to have tax debt hanging over a business, and more than a few of our clients were losing sleep over the fate of their businesses and personal financial situations before coming to us.

With our help, you will have a firm and sustainable plan of action that will not only help you get back on track. We will help you address areas which are negatively impacting on cash flow, identify opportunities to both cut costs and develop new revenue streams, and understand the best financial opportunities for your business going forward. Once the tax debts have all been cleared, the work you do with EPAS under emergency circumstances will set your business up for long-term growth and success.

Don’t wait – if you are facing ATO tax debts, contact us today.

How can I get tax debt relief?

Mon, 06 Feb 2023 06:10:18 GMT

How can I get tax debt relief?

As a business owner in Australia, it's important to understand the various tax relief options available to you from the Australian Tax Office (ATO) . There are several ways that you can reduce the amount of tax that you owe up-front, through concessions, incentives, and allowances, and most small businesses (and their accountants) will be aware of these.

Are you able to dispute a tax debt?

The first step is to conduct a thorough and expert audit of your business’ finances, and determine whether you’re able to raise a dispute with the ATO. It is critical that you engage with experts like the team at EPAS for this, because mistakes and assumptions can take an already time-consuming and stressful process and exasperate it. There are, however, several avenues with which a genuine tax dispute with the ATO can be raised, including a disagreement over the amount of tax owed, the interpretation of tax laws, or the ATO's decision to disallow certain tax deductions.

If our team and you identify an avenue to raise a dispute, the next steps are as follows:

1) Gather supporting evidence: If you believe that the ATO has made an error in their assessment, it is important to gather supporting evidence to back up your case. This may include financial records, receipts, invoices, and any other relevant documentation.

2) Raise the dispute: If you still believe that the ATO's assessment is incorrect, you can raise a dispute by writing to the ATO and explaining why you believe the assessment is incorrect. You should include your supporting evidence with your dispute letter.

3) Mediation: If the ATO and the taxpayer are unable to resolve the dispute, the ATO may refer the matter to the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) for mediation. The ASBFEO is an independent government agency that can assist with resolving disputes between small businesses and government agencies, including the ATO.

4) Administrative appeals: If the dispute cannot be resolved through mediation, the taxpayer has the right to make an administrative appeal to the Administrative Appeals Tribunal (AAT). The AAT is an independent body that reviews decisions made by government agencies, including the ATO.

5) Legal action: If the dispute cannot be resolved through administrative appeals, the taxpayer may consider legal action. This is often the last resort and should only be considered after obtaining professional advice.

Where possible, the goal should be to prevent the case going to mediation and beyond. Otherwise, not only does the process become expensive (for the time you need to spend focused on this, rather than your business), but the amount of stress involved in being implicated in legal action with the ATO can be extreme.

This is where the value of having experts in negotiation with the ATO in your corner helps. At EPAS, we understand how the ATO operates and assesses cases, and will be able to help you address your dispute without having to take it further.

Remember, you can also access tax debt relief

If you have ended up with a tax debt after exploring the options for raising a dispute with the ATO, you still have avenues available to you. The ATO is committed to keeping businesses open and operating, and with the right negotiating support, you will be able to further reduce the tax your business owes – often to cents on the dollar.

We know it can be scary to get a letter from the ATO, telling you that your business owes a large debt back to it. Rather than panic, however, by talking to us you’ll quickly find that not only is it possible to manage this debt, but by taking a good look at how your business ended up in this position, it will be possible to course correct and put the business in the healthiest position for the future.

In short, if you need help paying tax debt from the ATO, contact us today.

How do I manage multiple years of tax debt?

Fri, 13 Jan 2023 07:46:22 GMT

How do I manage multiple years of tax debt?

One year of tax debt is never ideal. However, the real concern is if, as another year rolls around, you’ve still got that debt, plus a new year’s debt. This can happen to a business for several reasons – an extended period of challenging cashflows, for example.

If it does happen to your business, however, you need to talk to the team at EPAS immediately. This is because stacking multiple years of tax debt can quickly become overwhelming.

The first thing to understand is that you’re not alone in this. About seven per cent of all revenue that should be collected by the ATO – around $33.4 billion – is money owed but not being paid by taxpayers. The bulk of that unpaid tax comes from individuals and small businesses.

The second thing to understand is that the ATO does favour leniency. The perception that many have is that the ATO is a frightening government body, but this simply doesn’t play out when, with the support of the expert negotiators at EPAS, you start talking to them about your debt.

How EPAS will help

When you’re faced with multiple years’ worth of tax debt, there are two immediate priorities:

1) First, you need to understand why you’ve ended up in this position. EPAS will run a thorough audit of your business to understand why it is struggling to meet its taxation obligations. If there are cashflow issues or overspending, we will identify them. We will then, over the longer term, develop a plan to address this so that your business is in a much healthier position in the future.

2) Secondly, we’ll work with your business and the ATO to arrive at a solution that will satisfy the ATO and clear your debt. We’ll negotiate to consolidate the debt into one. We'll then arrange a payment schedule that will allow you to pay it off without harming the business’ cash flow and ability to recover. We’ll also negotiate tax debt relief – to the point that for some clients we can reduce it to cents on the dollar.

Without the support of EPAS, and without negotiating with the ATO, your business could wind up in a position where it is paying off multiple debts simultaneously, each accumulating a general interest charge (GIC). While the ATO’s position is that it wants businesses to stay open, as they are beneficial to the economy, it also has a policy to take the most effective recovery action at the most appropriate time.

Ultimately, if you avoid the problem for too long, those business tax debts could end up being transferred as personal liabilities to you. This can cause incredible stress for you, your family, and your lifestyle.

Tax debt – even multiple years’ worth – does not need to mean the end of your business. Just don’t ignore the problem and hope it goes away. Contact EPAS today to work out a strategy to consolidate and clear your debts, and then position your business to be healthy into the future.

How Long Do I Need Emergency Accounting For?

Fri, 16 Dec 2022 09:52:26 GMT

How Long Do I Need Emergency Accounting For?

“Emergency accounting” sounds like something that you only need as a one-off and for a short time, right? You might think that it’s like a case where you need an emergency plumber or mechanic, but only for the length of time that it takes to repair the leak or get the car running.

However, EPAS' customers, who come to us for our emergency accounting services, mostly stay with us for the long term as well. Why? Because unlike a plumber of a mechanic, we make sure that you never need emergency accounting again.

Our three-stage process for long-term financial health

Clients tend to contact us in a panic. The ATO is breathing down their necks and they’re not sure how to handle the debt that they owe. We work fast, but follow a three-stage process that both addresses the immediate challenges, and then take a longer-term and more strategic look at your business.

Stage 1: The Tax Review

This is where we deal with the immediate emergency. Within 14 days of you contacting us, we will have an emergency tax strategy ready for you to review. This strategy will include the first steps to address the ATO’s correspondence, and what you can do, given your circumstances, to ensure that there are no further consequences.

This stage is about taking the heat off and allowing you the opportunity to get your circumstances under control.

Stage 2: The Tax Project

Depending on the number of financial years that need to be brought up to date (i.e. how long-term your problem is), the next stage takes 1-2 months from the time that you first engage with us. The Tax Project involves getting your accounts under control and then the all-important element of dealing with the ATO.

At the end of this stage, you’ll have your ATO payments plan in place. We will be working with you to develop tax planning strategies so that not only are you managing your current debt, but you’ll avoid running into this problem again.

Stage 3: Ongoing Support

With many of our clients, once it has become clear that we have helped them to navigate out of seriously rough seas, having us check in monthly to ensure that it doesn’t happen again becomes a critical part of our service.

As they often say, “prevention is often better than cure,” and once you’ve been in the emergency department once, you’d rather avoid that happening again. Our ongoing support will raise red flags at anything that looks like it could snowball to become a problem. We will continue to provide strategic advice that ensures that your debt management is not only under control, but it’s actually a competitive advantage.

Across those three stages, you don’t want a standard accountant. No matter how proficient they are at dotting “i’s” and crossing “t’s”, they’re not going to be able to work to the degree that you need them to. Instead, you want a tough ATO negotiator, a relentless and dogged investigator, a business-minded strategist, a lateral-thinking numbers genius and a dedicated wing-mate on your side.

That’s what EPAS provides, and our highly efficient, three-stage approach can assist just about every organisation that meets with us. Don’t wait, if you’re concerned about your ability to pay your debts, make sure you reach out to us today. That way we can immediately kick into high gear for you.

Attend our FREE event and get your business in better financial health

Sat, 05 Nov 2022 12:17:18 GMT

Attend our FREE event and get your business in better financial health

Across Australia there are businesses that, through no fault of their own, end up in a world of financial pain. 80 per cent of accountants make mistakes for their clients, and when those mistakes result in financial penalties, it is the business owner, not the accountant, that is held liable by the ATO.

For SMEs across Australia, these liabilities can be business-ending. Most Australian SMEs operate on tight cash flows, and sudden big expenses can be enough to force the business into closure. Worse, when those expenses are the ATO calling, panic can set in, and cause the business owner to make mistakes themselves in response. The ATO has an intimidating reputation, causing business owners very real stress and anxiety… but it doesn’t need to be like this.

That’s why we’re here to help.

EPAS are specialists in helping you manage ATO tax debt, and with diagnosing and addressing the underlying issues that put your business at risk. We are running an event in Parramatta Square on January 30 (from 11.00am-1.00pm) that will help you workshop how to avoid the kind of costly pitfalls that can threaten your business. We’ll share examples of the kind of errors to watch out for, and how you can negotiate with the ATO to drastically reduce your debt obligations.

Most importantly, though, we’ll share insights on spotting the red flags that your business might be headed for trouble, and how to avoid that from eventuating. Many of the clients that we assist come to us at the point that it’s almost too late. We’re able to help the vast majority of them but catching it early could have saved them a great deal of pain. By following our guidance you’ll be able to nip the problem at the bud and work with us much earlier on to address the issues before they can start to seem catastrophic.

Enjoy the networking opportunity!

In addition to what will be an informative evening, the event will be an excellent opportunity to network, and potentially meet new clients and referral partners. There’s also food involved – we wouldn’t hold an evening event without that!

It’s all free – our goal with this event is to provide meaningful, actionable advice to business owners that might be concerned about the health of their business. We’re certainly available to chat afterwards if anything we discuss is of interest and relevance to you!

Click here to register to attend the event.

Demystifying The ATO’s Tax Collection

Sat, 05 Nov 2022 12:03:40 GMT

Demystifying The ATO’s Tax Collection

Of all the government agencies that small business owners interact with, the ATO would have to be the one that people understand the least. From the priorities of the agency to ATO tax debt negotiation and how that works, people often allow the ATO to terrify them, but, with the right support, the ATO is far more reasonable than many realise.

Here are some of the common myths about the ATO that lead people to think that they’re the bogeyman.

1) The ATO is out to get you

This is the most common perception of all that we come across. Many do have the impression that the ATO is actively looking for excuses to close businesses down and force business owners into debt.

This isn’t true at all, and the ATO’s role is to ensure compliance, but also assist businesses in remaining operational. For those businesses that engage in good faith, the ATO is going to be reasonable and open to negotiation.

2) Negotiating with the ATO will result in a big burden to your business

It is also untrue that the outcome of any ATO tax debt negotiation is going to be unmanageably large repayments. The ATO understands that businesses need cashflow to operate, and a negotiation will result in a payment plan, spread over several years, that will give you the chance to get your business back under control.

In fact, when you work with experienced negotiators like EPAS, you will also be able to negotiate down a debt so that you’re paying cents on the dollar. With the right accounting support, the ATO will seek to recover what is reasonable for the circumstances of your business.

3) I don’t need an accountant to deal with the ATO

Many small business owners attempt to deal with the ATO directly. You can do this, but without knowing how the ATO operates or negotiates, it will be difficult to get the most favourable outcome.

In fact, many accountants won’t even be as effective as you might expect! Emergency Accounting – which includes negotiating with the ATO – is a highly specialised field and requires specific skills and experience. Many of our clients at EPAS have come to us after their existing accountant was unable to help them, and they were facing a financial disaster. We were not only able to effectively engage with the ATO and “right the ship,” but help the client to understand how they ended up in the position that they did, and the steps they needed to take to strengthen their business for the future.

Remember – effectively engaging in ATO tax debt negotiation can not only save your business, but it can also save you from the debts accrued transferring to become your personal debt. If you’re dreading hearing from the ATO, then it’s likely that you’ve fallen for one of these common myths, and you should talk to EPAS as soon as possible.

Click here for more information on our ATO tax debt negotiation services.

What Causes Tax Debt

Thu, 15 Sep 2022 09:46:09 GMT

What Causes Tax Debt?

A tax debt occurs when your business owes the government money. This can happen for any number of reasons, and it can be highly stressful when the ATO starts calling those debts in. When it gets to a certain point - $100,000 and greater than 90 days overdue without a payment solution in place – the ATO will now also report the debt to reporting agencies, affecting your business’ ability to access credit into the future.

The basic reason that a business ends up with a tax debt is that it is failed to pay enough tax through the year. Some of the common root causes include:

1) Inconsistent cash flow – Many small businesses struggle with this. They’ll go through a period where the invoices are flowing through nicely, but fail to put aside enough for tax and, during a slower period, they find themselves struggling to pay bills and employees first, let alone the growing ATO debt.

2) Poor tax compliance – Organisations that are slow to submit their tax forms (or neglect to do so entirely), can end up with a large, multiple-year tax debt at once.

3) Mixing business and personal finances – Smaller businesses and sole traders in particular are at risk of that one. Many don’t have separate business bank accounts. This makes it very difficult to monitor cash flow, which exclude the money from several tax benefits that might otherwise apply to both personal and/or business income and can increase your personal liabilities. When you set up a business, you should always set up a separate business bank account and pay yourself a set salary out of that.

4) Ending up as a creditor – This is related to cash flow, but many small businesses have invoices that go out to customers that go unpaid. Either they need to chase their customers to get payment, or their customer goes out of business or declares bankruptcy themselves, leaving the small business in the position of being a creditor owed money that they’re unlikely to see paid in full. But of course, the business has already paid for the staff and materials required to complete the job, leaving them with a big hole in the budget. Typically, that ends up becoming tax debt as the business opts to continue paying staff and its own bills first.

What to do when you’ve accumulated tax debt

When you’ve got tax debt it’s critical that you speak to experts, such as the team at EPAS, to develop a plan to present to the ATO. The ATO will not report your business to credit agencies as long as there is a plan, and their goal is to help your business recover, so you will be able to negotiate a debt payment plan that will allow you to re-establish a healthy cash flow and recover your business to a position of strength.

We are here to help! From diagnosing the underlying challenges that put you in the position to have tax debt, to building a recovery plan so that it won’t happen again, EPAS is your ideal pathway to business health. Contact us today!

Emergency Accounting

Riding the CoVid Wave

Sun, 16 Jan 2022 14:43:00 GMT

EPAS Helps You Ride The CoVid Wave

Many owners and directors of Australia's 3 million small businesses were riding high in November 2019. Strong economic growth, broadening the reach of products and services into China, Asia and the opportunities afforded us by the UK’s Brexit. Hong Kong unrest and the strong hand of China’s military, the American change of political power on the horizon, the stepping down of the Mother of Germany’s political leadership, and the rise and rise of Jacinda Ardhern are today, in January 2022, forgotten.

What is not forgotten is the grinding halt that began in January 2020. Business and politics are intricately entwined, something many have forgotten during 100 years of relatively good times. The globalisation of trade, high volumes of international and domestic travel, and uncomplicated visa systems to facilitate the fast movement of students, travellers and businesses around the shrinking planet. The biggest concern of 2017 – 2019 was global warming, improving air quality, and reversing the human footprint on our environment.

When one of Australia’s most respected CEOs, Alan Joyce of QANTAS grounded the international fleet, shortly thereafter the domestic fleet, he led many of the political leaders both at home and abroad by taking hard decisions early and all-encompassing. Criticised for a lack of concern for the welfare of staff, being unrealistic in his foresight and only concerned for the share price, hindsight sees QANTAS in an unenviable position to take to the skies within a very different environment than the profitable 2019 year. The Morrison Government, slower to respond paid the price in the first CoVid wave.

Wave 1 – JobKeeper and JobSeeker

Three simultaneous international events impacted a local economy that survived on the largest stimulus packages ever seen in Australia, most of Europe, China, India, and the Americas. Political unrest following the US election saw challenges to the democratic heart of the country, perhaps best remembered by millions being hospitalised from CoVid’s effects, the highest per capita rate of hospitalisation and death, as the country watched in horror as US citizens stormed Capitol Hill.

Australia witnessed a trade backlash from China in response to Australia’s call for greater transparency around CoVid almost wiped out the wine, mining and thousands of other small business operations. The impact was greater still due to the speed of the growth of the online store. Similar situations occurred around the free-trading globe. Steel came to Australia’s rescue as Brazil could not meet additional Chinese and Indian demands. Soaring prices created fake bubbles such as the housing, crypto or precious metal bubbles. Free trade ground to a halt over a 3 month period.

National defence, infrastructure or technology which relied on imported components highlighted the need for all countries with closed borders to produce products locally. Many nations still rely on imports for basic supplies that could be produced within their own borders. A new opportunity for small businesses presented itself, but many owners lacked the cash flow to pivot their operations.

The vaccine race defined the year – with many countries producing vaccines and starting programs to vaccinate their population with only the barest minimum of testing the efficacy on humans. It was small business owners in Australia who fought the mental, financial and emotional battle to keep employees employed ‘for when we open in 3 months or to terminate them to an uncertain financial future.

From day to day, week to week, the application for grants, new benefits, new supply chain bottlenecks, and a race to exploit the digital marketplace caused enormous stress on small business owners. Rising again like the phoenix, sales stopped completely or exploded without the ability to fully cope with the new demand.

Change, adapt, change, apply new policies, develop new risk management processes, re-write school or university courses for delivery online, conduct meetings on Zoom, or learn to use Google, and try out Microsoft Teams. Everything was new. Everything required a new skill set, different technologies and nimble processes. Without government intervention, thousands of businesses would have been liquidated.

Mental health and wellbeing became the fastest treatable disease as we were locked out of exercise venues, taken away from face-to-face activities, and cocooned in a false sense of, “by November we will be operating again”. It was about to get worse.

Wave 2 – Locked Down Again

“Just when you thought it was safe to go out…. ” No, it really wasn’t. There was a new CoVid on the block, more contagious and spreading like wildfire in India. Overloaded hospitals, thousands of dead, and Australians being told not to leave as they were not welcome at home.

The impact of no tourism began to hit Australians in this sector, the entertainment and arts sectors suffered a similar fate. Closed with no scheduled reopening. Of course, this leaves out the largest foreign currency earning sector in the economy: the education sector.

International events don’t affect all small businesses, but tourism, entertainment and the arts and the education sector do. Small businesses are not just entities that make profits. At their heart, they are families, people with a passion and purpose.

Many of the people of small businesses were suddenly faced with financial, personnel, supply chain and health issues simultaneously. The mental health toll is, even at the 2-year mark, impossible to calculate. The World Health Organisation reveals that 1 billion people globally have untreated mental health conditions that have been exacerbated or triggered by the pandemic.

The same report highlights this extends across all socio-economic, gender, racial and location boundaries. Yet in the middle of these circumstances, the wealthiest 0.01% of the world’s population has increased their wealth exponentially. Funding in startups in 2021 was 4 times greater than the year before, cryptocurrencies and stock markets, enjoyed the lowest interest rates in history and government money printing rose to new record highs. The Australian property market enjoyed the fastest gains in decades, including regional areas with the ‘great escape’ of city workers to rural settings.

It was hard to enjoy the good news as a foundational shift has occurred in all economic theories. Public Health England surveys found that ‘Personal health and wellbeing is the No. 1 reason for lifestyle choices.’ Humanity has come to the realisation that without health, nothing else matters. But weariness with lockdowns and freedom restrictions, and lack of business or personal opportunity revealed itself in public protests against lockdown laws. Was society about to implode? Let’s open up and see what happens.

Wave 3 – Delta, Omicron A and B

As Delta’s dark wave receded, it was time to open for business. SMEs' adaptation to volumes of the new legislation was admirable. Rewriting thousands of policies, changes to employment legislation and court rulings on mandatory vaccination rules took shape in 2021. Just as societies began opening, populations looking forward to greater freedom and businesses began hiring staff to meet the expected explosion of trading, Omicron arrived.

Business owners are used to meeting new challenges, but this one was different For the first time, Australia experienced unmanageable numbers of infections that crowded health services. Business owners, desperate for income opened their doors. Most had few if any customers. On the supply side, the food sector finds it hard to get the supplies it needs, and every day is a staffing challenge. Worse still, price increases in goods and services outstrip demand for them. Delivery costs on both supply and sales sides of the business equation have increased so much in some sectors that businesses' profits are almost totally eroded.

Omicron may be a less dangerous version of CoVid on one's physical health, but for many SMEs, it is too much to continue into another year of unknowns. Research from Havard University indicates that one thing that can make a huge impact right now on you personally and the team you would like to be working with, if only they weren’t on 3 days off because of a ‘close contact.’ Developing gratitude and happiness helps us focus on the brighter, happier side of life. Strange as it may seem, the research by Dr Shawn Achor highlights amazing results across almost all areas of the economy. Your business could benefit by implementing the 5 basic principles he discusses in his TED talk .

Australia needs her small businesses. She needs them to be vibrant, strong and creative in their solutions. Our economy benefits across all sectors when our SMEs are profitable and serving the best to their customers. If you need support, strategy or a second opinion on how to move forward in 2022, it is time to leave behind those things that no longer serve you and open the doors to new ideas and a different perspective.

We are Australia’s only Emergency Accountants. We are here to support and serve small businesses. Small businesses just like ours, with special talents and great people.

Emergency Accounting

Small Business ATO Lodgement Dates

Mon, 08 Nov 2021 11:34:00 GMT

The Lodgement Dilema

Forgetting the deadline on key taxation, superannuation or company registration lodgement can cost thousands of dollars. Small business owners don’t have the time or the cash flow to make such an error in oversight.

Managers and finance controllers can overlook a missed lodgement when it is assigned to another team member. This most notably occurs when the accountant and bookkeeper aren’t closely linked to the actions of the payroll team. With dozens of individual tasks necessary to ensure all aspects of staff entitlements are correctly assessed, reviewed, paid and recorded, minor calculation errors multiply across groups of employees, or on a weekly/monthly basis. These errors may not be rectified prior to lodgement if the ‘due date’ is suddenly upon you and the figures are not checked correctly.

Many large corporations have been caught underpaying staff, often in error. Auditors often find errors in formulas, or a failure to apply wage increases, tax rate reductions or changes to the superannuation guarantee levy. If it occurs in large corporations with large teams of payroll, bookkeeping and accounting personnel, it will also occur in small businesses where payroll may be a few hours per week or month.

The Lodgement Checklist

As Australia’s only Emergency Accountants one thing we see a lot is last-minute desperation to help small businesses meet their ATO deadlines. We try really, really hard to ensure that every client is proactive and prepared for all the dates listed on the attached checklist.

Sadly, sometimes we can’t seem to convey the urgency necessary for clients to take swift decisive action.

The outcome may be anything from fines, warning letters, interest and or late payment penalties, or even the issuing of a Director’s Penalty Notice. At this point, we receive urgent requests for help, often at 02:30 AM, when business owners are stressed, unable to sleep, and have no idea whom to reach out to for help.

It does not have to be that way! Download the checklist and enter the dates into your work schedule or calendar. If it concerns the ATO it is more important than any other task except paying your staff entitlements.

This free tool can make your business administration flow more seamlessly. Let us help you be more proactive in meeting important deadlines. It is so much better than trying to resolve stressful, costly oversights.

Don’t Get Caught By The 6-year Exemption On Property Investment

Mon, 04 Jan 2021 11:21:00 GMT

What is the 6-year exemption rule on an investment property?

1. What is the 6-year Exemption Rule?

When you buy a property with the intention of using it as your primary residence start living in it, it is your main residence. When you stop living in your main residence and then sell it at a later date, the 6-year exemption rule comes into play.

Once your property is no longer considered your main place of residence, it does not satisfy the criteria outlined above, then for Capital Gains Tax (CGT) purposes, it is no longer considered your main residence.

However, ATO allows some leeway on this.

Even after you move out, for CGT purposes you are allowed to treat your property as your main residence for up to a 6-year period. This is known as the 6-year absence rule or 6-year exemption.

This time can vary depending on what happens after you leave the premises:

* If you are renting it out, it can remain considered your main residence for up to 6 years.

* If you don’t rent the property, it can remain considered as your main residence indefinitely.

There is no hard limit on the number of times you can access this exemption.

2. The 6-year Exemption Rule Key Points

When claiming the main residence exemption on your CGT, you can only do this under your individual name. This often-overlooked point is crucial in excluding properties that are held within trust or company structures.

As an individual, you can have only one main residence at a time. The exception to this rule is when you are moving house. In this instance, certain provisions are in place that allow you to have two main places of residence for a six-month period only.

Main residence exemption is only available for land that actually has property on it. Main residence exemption can’t be claimed on a vacant block.

It is vital to remember that ‘Main residence’ only accounts for up to 2.5 hectares of land. If your property is greater than 2.5 hectares, you can only receive an exemption on your home & surrounding 2.5 hectares.

Are You Keeping Up With the Scams Targeting Australians?

Thu, 24 Sep 2020 18:34:00 GMT

1. How elaborate have SCAMs become in Australia?

2. Who are the targets of SCAMMERS?

3. How can you protect yourself, your business and your family from SCAMs?

Where things become complicated is when SCAMMERS or hackers use multiple channels, third party companies such as utility, local government or phone providers to circumvent multiple electronic SCAM traps and institutional protections.

Whilst the ATO releases data relating to SCAMS which claim to be collecting or enforcing taxation penalties, many other industries experience similar incidents.

A case study that illustrates this was a call made to a friend recently from, supposedly their phone and data provider. The recipient was asked if they had noticed that their internet was intermittently slow or dropped out occasionally. The answer was of course, “Well occasionally, I suppose.”

The SCAMMER then requested they confirm their connection number and the model of their router to allow, “Our technical team to test your connection.” They were promised a call or email verifying the results of the test. 72 hours later, the call was received. There was a problem, they were told, but it was not at the end of the extension. To ensure their privacy, they were asked to call the technical support number, toll-free of course, and provide additional security information.

Now to the Technical Department, who informed the client that they needed to access their router to rectify a problem that had been identified, and potentially put their online browsing information at risk of hackers! Within 10 minutes, the SCAMMER had located and accessed online banking information on the client’s computer. They were told that a refund for $84.12 for the inconvenience would be processed and appear in the account they used to pay the bill. Would they please check to see if this had occurred?

Yes, they confirmed, that the transaction was visible. Would they please confirm the first 6 digits of that account? It was at this point alarm bells began ringing. They terminated the call and called their bank. Looking at all their accounts, they noted that $84.12 was transferred from one of their accounts to another, and $20,000 was withdrawn just prior to this happening.

The bank was able to claim the loss on insurance, and the funds were repaid in full.

Most are not so lucky.

Is Your Bookkeeping Silently Destroying Your Small Business?

Fri, 06 Mar 2020 03:27:00 GMT

1. Are you operating one of Australia’s 3.8 million excellent small businesses?

2. Is your business growth because you work hard to provide great service to your customers?

3. Have you got a bookkeeper or do you use a bookkeeping service to keep track of your business performance?

If you have said, “Yes.” to any one of the above questions, our expertise over the past decade tells us that, 8 out of 10 businesses just like yours have major problems with their bookkeeping that is costing them thousands of dollars and putting their business and personal assets at risk.

We are Leading the way in Emergency Accounting in Australia where we save businesses, families and lives, where we put hard-earned dollars back into your pocket and it all starts with getting the bookkeeping right as the devil is in the detail.

The frustration of seeing new clients stressed under the burden of tax debt, systemic errors costing them profits and physical, psychological and emotional stress can be stopped right now.

Bookkeeping is unregulated in Australia, yet the taxation laws that apply to business owners rely on correct bookkeeping records. Sadly, too many business owners are in peril because of errors in their bookkeeping.

Bookkeeping can be correct, highly automated and save you loads of time. Small business owners need to know the state of their income and expenses as of today …. Not last quarter, or last year. How will last year's figures help you with questions of today?

Our bookkeeping service is built on the knowledge of what mistakes commonly occur and how to correct them. As a discerning business owner, you want live, current data available on your phone, tablet or computer. We make that happen seamlessly.

Our accounting specialists are able to use correct, current data to assist business owners to make accurate business and financial decisions. We know you’re not an accountant or bookkeeper! We wouldn’t try to fix your plumbing, restaurant menu, electrical wiring or service your car. You are too busy being really good at your small business, you need a specialist who cares about your debits and credits. You are responsible for your business even if your bookkeeper gets it wrong the cost and the responsibilities are huge. Get it right the first time, and stop the headaches later on.

Don’t become part of the 65% Club – the percentage of businesses closed because they owe the ATO money. Not only do you risk losing your business; you could be paying for the privilege of being a business owner for the rest of your life! Improve your chance of having a vibrant business in 5 years’ time with quality data entry.

Get an EPAS bookkeeper on board to provide you with more accurate forecasting. We know you will see fewer ATO issues. The risks to you, as a Company Director decline as your business taxation compliance, improve.

The benefits don’t stop there, as accurate bookkeeping helps your EPAS accountant assist you with tax planning. EPAS is able to guide you using the value-added information many firms only provide through independent consultants. When your business has growth opportunities you wish to pursue, we are able to assist with scaling and growth strategies, whilst keeping ahead of the ATO at the same time.

Improve your records, compliance, reporting, cash flow tracking and profitability by getting it right. Getting it EPAS right.

The first time.

Every time.

STP IS HERE ARE YOU READY OR NOT?

Sun, 01 Sep 2019 06:45:00 GMT

What is STP?

Single Touch Payroll (STP) changes how employers report their superannuation and PAYG contributions to the ATO. STP-compliant payroll software requires employers to report PAYG and super after a ‘payroll event’ – or after each pay to employees has been processed. That may be weekly, fortnightly or monthly. This means, that every time you do a pay run, you are required to electronically send the ATO your STP data. Most accounting software, including MYOB, XERO, Quicken and Reckon and Cashbooks have updated their software to ensure compliance.

Does STP benefit employers?

STP streamlines reporting to the ATO. The ATO will pre-fill the BAS (W1 and W2) for employers, eliminating potential errors and double handling. This commences from 2020 for small to medium PAYG with holders.

The ATO automatically tracks data from Single Touch Payroll submissions and makes it available online. Employers do not have to generate and distribute payment summaries to employees as they can access them via myGov. The ATO may allow employers to collect tax file declaration and super choice information from myGov when hiring new employees.

STP starts on July 1st 2019

STP reporting is mandatory from July 1 2019 for all employers. Act now to ensure your STP-compliant software allows you to start reporting from July 1 2019.
If you have less than 19 employees, you won’t be forced to buy new software. However, with low-cost STP solutions at or below $10 per month for micro employers – including simple payroll software, mobile phone apps and portals, now may be a good time to begin.

Micro employers (1–4 employees) will also have a number of alternative options that are not available to employers with 20 or more employees – such as initially allowing your registered tax or BAS agent to report quarterly, rather than each time you run your payroll.

If You Don’t Use Accounting Software (manual cashbooks or excel)
You’re required to be using compliant software prior to July 1 2019.
Please get in touch with the EPAS office to get the right STP-compliant software to suit your business, as there is no such thing as a ‘one-size fits. Email us.

What Should I Do Right Now?

EPAS Specialists are here to help clients transition to STP. We will support you in selecting the most suitable STP option for your business.

While you are waiting for our reply, please go over the FAQs below, as your first question may already have been asked/answered.

Will I still need to submit a BAS?

Yes – you’ll still need to submit a BAS, but the W1 and W2 values will be pre-filled (from July 2020 for small to medium withholders).

How safe are my employee's personal details?

The ATO and MyGov operate stringent privacy and digital security on all data held within these systems. No major data breach or privacy breach has been reported on either of these platforms.

Will I be able to adjust the pre-filled values on my BAS?

Yes

Will I still need to generate payment summaries for my employees?

You will no longer need to provide payment summaries to your employees for the payments you report and finalise through STP. Payments not reported through STP, such as the Employee share scheme (ESS), will still need to be reported on a payment summary.

Can I make PAYG or super payments through single-touch payroll?

No, you will not need to submit a payment summary report. Instead, you will need to do a finalisation declaration at the end of the financial year. The information you report through STP will not be tax-ready for your employees or their registered tax agent until you make this declaration.

Will I still need to submit an annual payment summary report?

Can I make PAYG or super payments through single-touch payroll?

No, single-touch payroll is a reporting solution only. You will still need to make PAYG and super payments separately.

ATO Crackdown

Fri, 22 Feb 2019 20:09:00 GMT

ATO to investigate 10 million taxpayer financial records.

The latest ATO welfare and tax crackdown will see the financial records of over 10 million Australian taxpayers go under the microscope in the coming months.What is the ATO looking for?

Here are a few highlights in the latest ATO crackdown:

Credit Cards: The ATO has requested taxpayers’ credit card records from 10 major banks, so they can learn more about your finances and spending.Vehicles: The details of anyone who has bought a vehicle for more than $10,000 in the past two years will also be handed over. Why? To help detect people who are able to spend much more than their reported earnings should make possible.Ebay Power Sellers: If you’ve earned more than $20,000 selling on eBay then your details will likely be handed over for the ATO to check whether you’ve paid tax on those earnings.Welfare Cheats: If you received government payments then your details will be under the ATO microscope, especially if you earned any other income on the side.Capital Gains: In Queensland, details are collected from the Residential Tenancies Authority and the Office of State Revenue to cross-reference any capital gains that may not have been declared.

What should I do?

If you’ve correctly declared all of your income and expenses then you probably won’t even know if the ATO has checked your financial records.

On the other hand, if the ATO finds out you have not declared any of your sources of income then they might reassess your tax returns from past years and possibly even issue you with a financial penalty.

If you’re not sure whether everything you’ve claimed is correct or you have some extra income to declare then we suggest speaking with one of our accountants as soon as possible.

We can lodge an amended tax return on your behalf to correct any errors. Remember, taking the initiative to correct any mistakes is often looked upon more favourably by the ATO than someone who is deliberately trying to deceive or cheat the system.

Profit. Profit. And More Profit in 2019

Mon, 07 Jan 2019 15:43:00 GMT

Profit, More Profit. And more profit in 2019.

There’s a reason why your business is not as profitable as it could be.

You.

All too often business owners are doing “bank balance accounting”. Most accountants, your trusted financial geniuses tell you to look at income statements, Profit and Loss statements and balance sheets. All you care about is the “bottom line”, more profit in your pocket. Half the time you are not sure what they are talking about, the rest of the time you would rather be doing something you like!

Right?

This highlights the fundamental flaw in how we are trained to think about business viability: Sales – Expenses = Profit.

Normally written as

Sales (top line, first thing you care about and highest priority)

– Expenses (second most important area of your business, but not as important as Sales)

= Profit (the bottom line – what you are supposed to care about)

By the time we get to even thinking about profit, our energy and focus has waned. Our list of tasks or goals always put important items at the top of our list. This means it is simply wrong to place profit as a “what’s left” item, after everything else.

If you want a more profitable 2019, put it first on your list! Yes, it matters because it means you are making money. It’s human nature that the goals we put first are the ones we get done. That’s why so many people work out in the morning.

What comes first is what gets done.

Isn’t it time for a change? Turn your list upside down; make decisions complete those actions which increase your profit first! Once you change what is important, commit time and energy to that which is important, allow your mind to start looking for profit-making actions.

With that as a focus, those things that simply eat up your time, which do not add to your profit can be easily identified and let go.

What a Little System Error Actually Costs You

Sun, 09 Sep 2018 04:14:00 GMT

A re you the next Australian scam target?

1. How elaborate have SCAMs become in Australia?

2. Who are the targets of SCAMMERS?

3. How can you protect yourself, your business and your family from SCAMs?

The highly sophisticated Australian financial sector and how we conduct business ensure that simplistic SCAMS are easily detected. An example would be how many scam emails are trapped in everyday SPAM filters provided by our Internet Service Providers. Financial institutions further protect our finances using artificial intelligence and machine learning as they attempt to keep abreast of cybercriminals. Where things become complicated is when SCAMMERS or hackers use multiple channels, third party companies such as utility, local government or phone providers to circumvent multiple electronic SCAM traps and institutional protections. Whilst the ATO releases data relating to SCAMS which claim to be collecting or enforcing taxation penalties, many other industries experience similar incidents.

The support number was the second level of the SCAM, complete with the exact automated message options, delays, transfers to the correct department, and extended pauses while details were verified. At the conclusion of this call, the SCAMMER had verified the name, address, phone number, email, and licence number. Now to the Technical Department, who informed the client that they needed to access their router to rectify a problem that had been identified, and potentially put their online browsing information at risk of hackers! Within 10 minutes, the SCAMMER had located and accessed online banking information on the client’s computer. They were told that a refund for $84.12 for the inconvenience would be processed and appear in the account they used to pay the bill. Would they please check to see this had occurred?if

The ATO is warning Australians that a SCAM involving a phone or SMS request for payment as their Tax File Number has been suspended. ‘To avoid legal action we require payment immediately,” say the SCAMMERS.

The ATO will never,

– Send you an email or text message asking you to send us your information by email or text message.

– Send you an email or text message with a link to log into online services.

– Send a pre-recorded message saying the police are coming to arrest you or demanding urgent payment of money.

Never ask for payment by bank transfers to:

A bank that is not the Reserve Bank of Australia Overseas wire transfers;

iTunes or Google Play cards;

Cardless cash transfers;

Cryptocurrency like Bitcoin.

Bamboozled Businesses

Sun, 03 Jun 2018 05:33:00 GMT

Small business is lost in a jungle of taxation law

Taxation requirements for small businesses gobble up so much valuable time, with constantly changing rules, systems and reporting obligations leaving businesses bamboozled.

Business owners simply don’t have time to keep up with the miriad of tasks that are so complex and confusing that it takes a law degree and a commerce degree to ensure compliance. Given that many business owners are Directors of their own companies, regardless of the advice their accountants and lawyers give them; the ultimate responsibility falls on their shoulders.

If you think this is just a small issue in economic terms, remember that there are approximately 2 million small businesses in Australia. They employ more people than any of the large multi-national companies, struggle to make profits and don’t have payroll departments or in-house finance specialists. They must rely on the ATO, accountants, lawyers and the media for their advice.

Is it surprising small business is bewildered and bamboozled when superannuation, employee benefits, sub-contract rules or penalty rate rules change? Updating their systems is not a press of a button; it involves training staff, upgrading software or other systems and stressing the cash flow on a day-to-day basis.

GST reporting was supposed to be easy

Completing a monthly or quarterly BAS Return has a tiny box that is offensive to those completing the process. At the conclusion of reconciling income, expenditure, wages and superannuation, the ATO asks you to tell it how long the process took in hours and minutes.

How offensive!

Many businesses simply record the 60 minutes it took to complete the form. They don’t account for wage reconciliation or adjustments to employee benefits. Prepaid invoices, goods in transit on which partial payments have been made, the 3 transfers with poorly written descriptions…. and that’s before we start on part days off – were they sick days? Other personal leave? Or was it a single annual leave day?

Ready to enter the actual time yet? Not so fast. Why didn’t the superannuation balance between the payroll and banking systems? Call your bookkeeper. They need help from an accountant. But there is no room in the box for these valuable hours.

It was so easy before Budget2018. Then the rules changed again, and you received a warning letter from the ATO in the midst of it all.

It was days and hours, not hours and minutes. The bookkeeper is frazzled, the accountant frustrated and you are totally bamboozled. Is this what operating your restaurant or plumbing business was supposed to be like?

ATO compliance credibility questioned

Recent media reports by the ABC and Fairfax highlighted the stress of ATO threats to business owners – over compliance to tax law. Given that tax law is inconsistent in the application of small business concessions, it is highly likely that 2 professionals may give different opinions on the meaning of the law.

“The complexity that is created by all the different qualifying requirements means that most taxpayers who operate in this space require substantial tax agent assistance in order to understand their tax compliance obligations. Even then they often get it wrong.”

Professor Robert Deutsch of The Tax Institute

Simplification of small business taxation as proposed by the Tax Institute has received little comment from the government. The key problem is not small business tax as compliance. It is as if the ATO thrives in an environment of complication – rather than simplification.

It is vital that the risk of starting a small business provides great rewards financially. Small business often pays wages but doesn’t generate profits to reward the risk taker. Only when we view a small business as its own entity, with a vision, mission, product or service that is purchased by consumers at a rate that includes a significant profit margin can we hope to unlock the entrepreneurial spirit of the risk taker and increase the number true Masters of Trades in our economy.

If a business owner is truly great at what they do, they deserve to be rewarded for it, not tied up in a maze of red tape, changing rules and compliance.

Does the ATO require greater supervision?

Mon, 30 Apr 2018 03:34:00 GMT

Does the ATO require greater supervision?

Emergency Accounting

Tax Agent Fraud

Mon, 23 Apr 2018 06:07:00 GMT

Calls For Greater Scrutiny of ATO Collection Practices For Small Business

The ATO is a necessary organisation to maintain revenue for Commonwealth, State and Local Government infrastructure and services. Aussies don’t like paying taxes, as with many other countries and cultures. Perhaps it is because there is no direct link between the tax we seem to pay every day and the expenditures governments make with taxpayer dollars.

It is a behemoth that rivals Australia’s largest corporations. As a revenue collector, it rivals any similar organisation anywhere in the world. Keeping ahead of tax cheats and tax loopholes ensures the ATO uses the latest technology, resources and systems to gather tax owing.

Its success can be numerically measured in the revenue collected, successful court cases which recover funds that rightfully belong in the public purse, its ability to simplify archaic laws for ordinary citizens and its education program for small businesses. Operating within a strict legislative framework ensures that the nation’s interest is best served.

The Income Tax Assessment Act 1997 not only provides government revenue. More than 20,000 employees are empowered on behalf of the Taxation Commissioner or the Deputy Commissioner of Taxation to carry out the task of ensuring all Australians, whether they live in the country or abroad, are employed, unemployed or self-employed in their own businesses, pay the correct taxation.

The ATO is also the only institution in the country where you are guilty until you prove you are innocent . Recent years have seen this become an ever greater part of the ATO’s collection methodology.

Benchmarks

Your small business submits monthly BAS returns reporting your GST and PAYE taxation. The ATO automatically matches your data to Industry Benchmarks. Your individual monthly figures are out of line with other, similar businesses and your return is flagged. Should this occur again, it is very likely that an auto-generated letter asking you to pay outstanding tax or explain why you shouldn’t arrive on your desk.

If you cannot justify why your business numbers don’t align with the suggested ones, you are “Guilty”.

Use of Big Data and The Internet of Things

A casual post about a new car, luxurious holiday or business lunch is tracked via social media, maps or even other government agencies such as the Department of Immigration. Does your trip, car or lunch fit into your normal spending patterns? Has your income or business income grown enough to afford the item’s estimated value? Do your travel deductions qualify as bone-fide, legal tax deductions?

Being guilty and having to prove innocence to avoid penalties is both time-consuming and stressful. It is an effective technique for trapping tax cheats, but the rights of the individual often seem to be trampled in the dialogue or media reporting.

Goliath is Looking for a Fight

The size and resources of the ATO make it almost impossible to successfully defend one’s innocence. Few small business owners or individuals have the legal expertise, cash or even the time to spend away from their businesses or jobs to take on Goliath. To protest one’s innocence – a key legal right in our society – may simply be impossible.

The result is often losing a business, savings, assets and health. The stress of simply trying to be ‘innocent’ simply becomes too much for some, who resort to suicide, alcohol or suffer mental health conditions such as depression.

The Black Economy: using cash to avoid tax or wage payments

Sun, 01 Apr 2018 22:25:00 GMT

The Black Economy: using cash to avoid tax or wage payments

A key consideration of the type, collection and purpose of the original GST was how to expand the collection of revenue within the Black Economy. Riding on a printed bank note, enshrouded in secrecy, it is estimated that revenue through lost taxation in 2018 due to the cash or hidden economy by the Australian Bureau of Statistics stands at 21 Billion.

Why Do We Use Cash?

Transactions paid in cash are more expensive than a card or electronic transactions. Mastercard CEO, Ajay Banga speaking at the Stanford School of Business suggested circulating cash costs 0.5 – 1.5% of a nation’s GDP. In a humble, informative interview he claims, “cash is the friend of the rich, the enemy of the poor”. Cash allows individuals not just to avoid tax (as seen in the Commonwealth Banks cash deposit laundering scam) but funds people trafficking, drugs, guns and child prostitution and illegal gambling.

Simultaneously, 40 million Americans and 95 million Europeans don’t have bank accounts. Foreign aid that is channelled through NGOs sees approximately 40% stolen prior to its distribution to the world’s poor.

The fallacy is that it is the poor who need cash that has no foundation. What they really need is an identity, the ability to save and make online purchases, or pay for higher education online.

SMEs are often at the head of the queue to take ‘black payments’, a discounted rate for non-declared income. They have been lulled into a false sense of security.

Watch more > Ajay Banga at Stanford Business School

The ATO’s War on the Black Economy

There is no doubt about it; Big Data and the Internet of Things are following you everywhere.

Have you recently downloaded your Facebook data since the dawn of your online life? Who do you read about, and how do you feel when you search Google using your own name, business or address?

It is nothing to fear . . . unless you are being paid or paying for goods and services using cash without declaring the income or paying the GST.

Transparency or the Black Economy

It's a reality, you can’t have both. Either you are conducting a real business in the real world; or you are working within the wrong structure, making consistent losses and building up a row of red flags on your ATO profile.

An Assistant Commissioner of the ATO has stated, “In the first six months of 2017-2018, the ATO has raised $143 million tax and penalties from its cash and hidden economy compliance activities. It has also implemented a range of measures to prevent, detect and deter tax evasion including data matching, small business benchmarking, reviews and audits.”

In the article, AC Bambrick said that now that most small businesses offer electronic payments, only accepting cash raises a red flag because it provides the opportunity to not accurately report all their income.

“We encourage businesses that take cash payments to invest in an electronic payment facility to make payments quicker and easier and help them to track their business activities and keep accurate records,” he added. “These days, most Australians expect to be able to pay electronically, so it’s also in business’ best interest to provide electronic payment options, like the card and mobile payments.”

ATO staff have been visiting businesses across the country to help them make sure their cash adds up. It has been focusing on industries that typically have high cash transactions or only take cash, like restaurants, cafes, pubs, hairdressers, and beauty salons.

“Some businesses we’ve visited in other areas have needed to improve their record keeping. Our staff have seen cash from sales being put in boxes, or straight into wallets, and open cash register drawers. Some businesses just guess their income because they tell us, they don’t keep good records.” Bambric said.

Casualties of War

Casualties and collateral damage are a fact of war. The ATO is issuing automated Director’s Penalty Notices or Please Explain Notices based on business benchmarking and data matching. There simply is no longer a question of “IF” you will be caught; it is a matter of when and how much the penalty or jail term will affect your life.

High-profile cases focus on non-compliance with employee superannuation or entitlement payments. These form the tip of the iceberg.

Whilst the ATO wields a powerful, punishing stick; it understands that the best way to gather taxes for infrastructure, health and education, is by training business owners in systems management, reporting systems and using professionals with taxation and bookkeeping skills.

We don’t want you to be a casualty, therefore we offer a 2nd Opinion on your taxation records. Now is the time your accountant should be reviewing your taxation planning and implementing processes and payment time schedules to minimise your tax.

Introducing the Author

Catherine McMurtrie is the CEO of EPAS: Emergency and Preventative Accounting Systems. During a decade at the forefront of helping SMEs operate profitably, it became apparent that the biggest issue impacting business profits was the taxation they paid, often unnecessarily. A member of the Institute of Public Accountants, her professional knowledge, clear perception and the ability of her team to deliver significant profits make EPAS the lifeline many businesses require.

It’s time to get ready for Single Touch Payroll

Fri, 09 Mar 2018 00:01:00 GMT

Payroll preparation and reporting are changing. Are you ready?

If you haven’t done your employee headcount by April 1st, 2018, you’re an April Fool. It is the first step you must do to work out if you have to use Single Touch Payroll. If your business has 20 employees, the ATO is requiring you, your taxation professional or your 3rd party payroll service to follow the streamlined reporting of the new system.

Under the new Single Touch Payroll system, employers must report the following on or before payroll payday:

employee payments such as salaries and wages
pay as you go (PAYG) withholding
super information.

Why is the ATO changing a system that works just fine?

The one government department which refuses to rest on its laurels, the ATO is implementing changes that integrate into other government services, reduce payroll paperwork whilst improving compliance and reduce End of Financial Year paperwork. More specifically, the ATO says:

You may not need to provide payment summaries to your employees at the end of the financial year when you report through Single Touch Payroll.
Your employees will be able to see their year-to-date tax and super information through myGov.
In the future, Single Touch Payroll information will be used to prefill your activity statement.

What are your responsibilities?

What you need to do

Talk to your payroll software provider to find out when your Single Touch Payroll-enabled software will be ready.
Ask your tax professional or payroll service provider how to get ready.
Review your current payroll processes to see if they can be updated.
Start developing an implementation plan.

A decade of working with small businesses assures us that it is the development of an implementation plan that will cause businesses to stumble. Always getting caught up in the day-to-day operations trying to build and grow, means a simple planning task to be seen as not urgent and therefore not done on time.

As this is the ATO, it is the worst possible thing you could do. So let us make it easier for you, book an appointment or 2nd Opinion time with one of our specialists who will take the issue from your hands and ensure all the details are completed on time. Appointment booking >

Are you a person who likes to read all the jargon for themselves?

The ATO Newsroom has the information broken down into understandable and easy-to-follow language. Access the Media Release to read all the fine print and details. You can even access the content in video format.

What do you mean by ‘Fake Expenses??

Mon, 26 Feb 2018 21:50:00 GMT

You decided to pay for pre-school fees from the business account. It is obviously a business expense, as I couldn’t go to work if the kids weren’t being looked after. The question is, does the ATO agree with your thoughts?

How can you find out?

Is there a formula to apply to expenses that instantly lets you know what is in and what is out?

Genuine business expenses are those that allow your day-to-day operations to generate a profit. Easy, right? Well, the Commissioner and you may disagree. You may be asked to justify meals, education and personal development expenses, not to mention texts, online courses and uniforms. Bending the letter of the law is a game that has been played for centuries in Australia, immortalised by Sir Kerry Packer before the Senate Estimates Committee in the words, “If anybody in this country doesn’t minimise their tax they want their head’s read…”

So it comes as no surprise that the big black boundaries of what is in and what is out are decidedly grey. A coffee meeting is deductible if you have it at your place of business, but not if you have it at a café. A car trip is deductible between two clients, but not your regular trip to work or home at the end of the day. Your business attire doesn’t qualify unless you are a flight attendant. A uniform with your name on it is probably not allowable as it doesn’t comply with the ‘occupies 80% of a 4cm square space and be visible at a distance of 2 metres’ rule for business logos.

Fake Expenses

Fake expenses are a different class altogether. You simply pay for something that you think should be deductible without knowing whether it is or not. So the problem really begins. Somewhere the deduction shows up in your reportable deductions. The ATO questions it.

The only area of the law you are guilty of and need to prove your innocence is taxation law. The ATO doesn’t dig too deeply at first, simply requiring you to provide a tax receipt and the purpose of the expenditure. Where expenses fail this test the ATO flags your file for further checking. You may not hear anything for a whole year; then a letter arrives demanding you justify all expenses claimed in a given period. Generally, the ATO targets industry sectors where they have found a higher level of non-compliance. Cash businesses, trades, laundries, hairdressers and cafés / restaurants are regular targets.

The Magic Formula

Whilst there is no set formula to determine deductibility, the ATO provides accountants with considerably detailed expense items and how to categorise them or what to include or not.

Regular Tax Rulings applying to individual cases set precedents that the ATO then adopts. The Rulings form part of updates to ATO legislation under which accountants operate. Furthermore, accountants must maintain a stringent regime of professional development to ensure they are up to date with legislation that may well have changed since the end of the previous financial year.

Claiming fake expenses can be a very costly habit. Not just in terms of penalties or repayments, but the hours that have to be spent gathering and submitting information to the ATO as requested.

Getting Help

We find errors in almost every set of financial reports we review. Errors that take money from your pocket and profit, giving your hard-earned cash to the ATO. That’s why we offer a 2 ^nd Opinion Service . Book online to determine how much our team can save from your tax payable or outstanding.

Is this your problem?

Mon, 05 Feb 2018 21:35:00 GMT

A MAJOR POTHOLE FOR SMALL BUSINESS OWNERS.

Are you struggling to pay wages and keep up to date with your PAYG tax obligations?

How are you going to manage to pay your superannuation liabilities?

What does the ATO think About “Joining a Client for Lunch”?

Fri, 12 Jan 2018 01:09:00 GMT

Take clients or conduct meetings out of the office any time you desire, just remember to pay from your own pocket! There is, after all, no such thing as a free lunch. Entertaining clients is not a deductible taxation expense.

The best way to ensure you are not in breach of entertainment or dining rules is to bring food in-house and conduct meetings in your regular work or meeting rooms. Finger food and light refreshments are considered to be a part of everyday work life and deductible expenses.

Food provided to staff during the course of their employment can be claimed, as most awards provide time for regular breaks to eat and drink.

Doing Business. Doing Lunch

Should you wish to provide a client with food whilst doing business, to ensure this is deductible it is a good idea to provide takeaway food in your normal workplace or meeting room. Another dining out options, whether they be a simple coffee or restaurant meal are governed by a complex set of rules. These may be as simple as the standard or star rating of the restaurant (the more expensive, the less likely the ATO will grant deductibility) or the application of FBT to the business owner or employees portion of the meal. Your wine, beer and spirits are, of course, to be covered at your own personal cost.

Until the ATO catches up with the fact that the way business is done in the 21st century, don’t be caught out by slipping a few meal expenses into your deductions, be they personal or business tax deductions. Penalties for breaches are harsh and swift.

Your accountant, not your bookkeeper is qualified to answer your questions and make sure you don’t fall foul of the ATO in these matters. A phone call or email can save you time , worry and considerable expense.

Besides, takeaway options in Australia today are varied, healthy, tasty and represent food from every corner of the globe. Perhaps it is time you explored your local options!

Why EPAS?

Tue, 07 Nov 2017 21:07:00 GMT

WHY DID I HAVE TO CREATE EPAS?

Emergency & Preventative Accounting Specialists (EPAS), is a unique accounting firm that specializes in emergency and preventative accounting. We stand out due to our 24/7 availability, offering an emergency tax debt hotline that clients can call at any time. This is a significant advantage for businesses facing unexpected financial crises or those who need immediate assistance with their tax debts.

What We Achieve For Our Clients

For a start, we pride ourselves on having the ability to identify serious errors in 80% of the accounting that we review. These are not minor misallocated expenses, but significant errors that could lead to financial crises for businesses. By identifying these errors early, we can immediately help businesses avoid potential financial disasters.

With over 40 years of experience in the field, we are positioned well as a leader in the industry.

What Does “Emergency Accounting” Mean?

Through our emergency accounting service, we help businesses get on top of their tax debt and get in front of their business, regardless of where they are at the moment. We assist clients in entering into settlement agreements with the Australian Taxation Office (ATO) & Creditors, potentially wiping off a large part of the debt currently owed while still maintaining trade and staying in full control of their business.

As we like to say “Tax Debt Is Optional!” By working with us, you can often lower your tax debt to cents on the dollar.

What Is “Preventative Accounting?”

In preventative accounting, our team does not cut corners. Here, we take a thorough look at your books and your business situation, and raise red flags well before they become an issue with the ATO or other bodies.

This is a true end-to-end service that we take on ourselves to ensure that absolutely nothing is missed and there are no surprises on your part.

We also offer a second opinion service. In the complicated world of tax, having an experienced and knowledgeable team to provide a second opinion can be an invaluable assistance.

Want To Know More?

We have countless stories of people they’ve rescued from crisis, and if you ever need to know what our services have done for others, just ask. Many are surprised by just how much can be achieved when they finally take the plunge and leave their old accountant to come to us.

In short, we are a unique and valuable resource for your business. We are genuinely available 24/7 (and yes we have taken calls and 3am!). We are true experts in identifying serious accounting errors, and our comprehensive range of services makes us an excellent choice for businesses seeking help with their financial management.

Whether it’s getting on top of tax debt, preventing potential financial crises, or seeking a second opinion on tax matters, EPAS is well-equipped to assist.

Five Quick Questions About Us

1. What is EPAS? EPAS, or Emergency & Preventative Accounting Specialists, is a unique accounting firm that specializes in emergency and preventative accounting.

2. Who can benefit from EPAS’s services? Businesses facing immediate financial crises, those who need immediate assistance with their tax debts, or businesses that want to prevent potential financial crises can benefit from EPAS’s services.

3. What makes EPAS unique? EPAS stands out for its 24/7 availability, offering an emergency tax debt hotline that clients can call at any time. They also pride themselves on their ability to identify serious errors in 80% of the accounting they review.

4. What services does EPAS offer? EPAS offers a range of services, including emergency accounting, preventative accounting, and a second opinion service.

5. How experienced is the EPAS team? The team at EPAS has over 40 years of experience in the field and has been a leader in emergency accounting ever since.

The Specialist

Sun, 15 Oct 2017 05:36:00 GMT

When something is wrong with our health, we see the correctly qualified person who is experienced and trained to diagnose, treat and follow up on our health and well-being. Specialists undergo a fundamental university training program, followed by extensive training in a particular area of medicine. For this reason, these are called specialists. They have chosen to specialise in one small part of our health.

When we have nasal or sinus issues, we don’t go to a gynaecologist we book in to see an ENT (Ear Nose & Throat) Specialist; just like we don’t take our mental health issues to an orthopaedic surgeon.

To begin practising as a medical doctor requires 6 years of undergraduate study and an internship where the newly trained doctor is exposed to a broad range of hospital care situations alongside a variety of specialists. During this year the Intern is required to work in a range of wards that specialise in different areas of health. It is only as a fully qualified doctor that someone can begin training and studying towards becoming a specialist. This may take as long as 5 years or more. The young specialist slowly develops the necessary skills as a surgical registrar, psychiatrist, facial or plastic surgeon, emergency specialist and so on.

The Professional Specialist

Specialists exist in most professions. They are specialists, not only for the study they have completed, or the on-the-job training they have done. Again, the tertiary study is only the starting point. From there we have criminal or civil lawyers, small business and corporate accountants or IT cyber-security specialists. From a broad base of study, these professionals have honed their skill set to focus on their own bull’s eye.

Small business owners are easily duped by the choice of professional service assistance for their business. Whether this is choosing a bookkeeper, a social media marketer or an accountant, the business owner is not familiar with what a good or bad professional service provider does for them, and what criteria their work should be measured against.

Generalist or Specialist?

Whether you think you need a specialist or a general accountant, the important question is, “What do I get for my investment in outsourcing this part of my business?” For many busy owners of SMEs, this simply takes too much time, so they simply find a nearby accountant, ask a friend or use someone who has prepared their family's personal tax returns for years. In theory, there is nothing wrong with this.

As the ‘help me fix my taxation or cashflow emergency’ accountants, our experience tells a different story.

A very painful, costly and health-destroying story.

We find serious structural errors in the accounts of 80% of the people who come to us. Impossible to imagine, right? Yet it is true.

Does this ever occur in our dealings with other professionals? Of course, it does. How often do we visit a doctor and find that what we are diagnosed with is not the real problem? Redness in an eye that is treated as a sty; when it is in fact it is an allergic reaction to the food you are eating? Pain in the belly is a tropical bug that is treated as food poisoning. A headache that is thought to come from neck or back problems, yet is related to dehydration.

A bookkeeping error that occurs once per week soon adds up to a huge annual error. An automated payment that keeps being made for months after the service is no longer used. Failing to ask for better payment terms from large suppliers causes cash flow squeezes. Not correctly accounting for GST, superannuation or other employee entitlements.

What Makes A Specialist Special?

Focussing on a single aspect every day allows the specialist to be up to date on the latest trends, systems and rule changes. Removing other distractions gives them laser-like focus and solutions that have been applied before. This shortens the lifecycle of the pain of error correction, getting a business turned around fast.

Knowing the problem and its impact gives the specialist the confidence to apply radical approaches to correcting errors. They don’t tolerate the cause of the error. They prevent it from continuing immediately, understanding the impact of it over time.

As external specialists, they are not attached to the outcome and provide solutions that resolve issues in favour of the client. Their task is to fix the problem, not get involved in it. The beneficiary is the business owner.

You.

Your health.

Your peace of mind.

Your relationships.

Your financial wellbeing.

Your wealth.

The Specialist works for you. Isn’t it time you took prevention more seriously than trying to find a cure when you find yourself in a financial, personal and business mess?

Poor accounting and the wrong structures

Fri, 31 Mar 2017 23:19:00 GMT

It would be an understatement to say Michelle was freaking out when she was referred to us. She was a Sole Trader with a personal tax debt of $150,000 and another 3 years’ worth of returns to do which would pile on top of the debt.

The ATO was threatening her with Garnishee Notices and potential prosecution.

We jumped to it and found we could cut the existing debt in half by taking out accumulated interest and penalties. We then made arrangements for Michelle to pay off the remaining $75,000.

Once the immediate issues were taken care of, we restructured Michelle’s business into a Company structure and lodged the outstanding returns, bringing her entirely up to date and compliant.

With her business on the brink of folding and personally facing bankruptcy and even prosecution, Michelle was elated with the outcome and, as many of our clients do, moved all her accounting and tax work over to us.

* This is a real case study, we’ve just changed the client's name to protect their privacy.

Bad bookkeeping is often the issue

Wed, 08 Mar 2017 05:03:00 GMT

Mitch was referred to us as the numbers in his financial statements didn’t add up. This happens a lot. When we reviewed his financials and bookkeeping, it was immediately apparent that the bookkeeping was riddled with errors. According to the records, there was a $160,000 loss.

Fixing the bookkeeping was way too complicated so we redid the accounts from scratch to reveal a $10,000 profit.

Mitch’s previous accountants were on auto-pilot and had taken his bookkeeping records on face value, even though they made no sense at all. As a result, he’d been making decisions on false information and running his business blind! With the ramifications of tax and business valuations also at stake, Mitch moved all his bookkeeping, cashflow, accounting and tax management to us to ensure these errors never occurred again.

* This is a real case study, we’ve just changed the client name to protect their privacy.

Audits by the Australian Tax Office: Preparation & Peace of Mind

Fri, 13 Jan 2017 22:58:00 GMT

Every small business person lives in fear of the taxman! While only a tiny minority of people actually cheat on their taxes, if you get audited by the Tax Office, it can take tremendous amounts of time away from your business. Furthermore, the process is stressful and takes a lot of work. In this area as in so many others for small business people, preparation is key. The first line of defence obviously is to avoid getting audited in the first place. But if you are one of the unlucky ones, then preparation and knowing what to expect will get you through the process as quickly as possible with as little stress or extra work as could be hoped for. If you do get audited, your accounting professional can be an invaluable assistant whose services can really help you sleep at night! Let’s go through a few of the key issues related to audits by the ATO.

Who Gets Audited in the First Place?

There is a range of tools that the ATO uses to decide who they should audit. If you think about it, the ATO’s goal is to maximize the amount of additional tax recovered per audit conducted – the goal is not just to do as many audits as possible. So the ATO needs some analytical tools to figure out how to target those small business taxpayers who are most likely to be under-reporting income. The simplest (and creepiest) tools the ATO uses are the basics of surveillance. As you probably know, there is a hotline that anybody can use to report tax cheats. Being reported on the “cheat line” – without more – is probably not sufficient to get you audited but it is likely to get you some unwanted scrutiny. The ATO itself also conducts surveillance on small business taxpayers. ATO personnel perform surreptitious field visits to small businesses to observe practical business conditions – how many customers are coming to your business, what is your retail pricing, and how many employees are working? Due to long experience and some pretty sophisticated software, you might be surprised at how well the ATO can guess your cost structure, your gross revenues and your net taxable income. Another interesting way that the ATO can profile “likely candidates” for an audit is through their “small business benchmarks” analysis. This method doesn’t require active surveillance but rather is based on comparing your business across a wide range of other small businesses. If your numbers “don’t look right,” you could be in line for an audit!

How to Survive an ATO Audit

If you do end up being one of the unlucky ones who gets audited, don’t despair. You will get through this if you remember a few key things. First – do not cheat, steal or lie! If you are running your business honestly, you are most of the way home. Taking shortcuts in business, as in life, never really pays off. Second, be organized and careful in your business processes. Substantiation is the name of the game in tax audits. Keep well-organized business records. Save receipts. Use generally accepted accounting practices. Not only does having good business processes make you safer in an audit, but it also improves your business and streamlines your life. Third, get professional assistance early. Better still, have a professional accountant all along the way. When you are on the wrong end of an ATO tax audit, your business accountant’s cool, professional counsel will be a real lifesaver!

We have long experience in helping small business customers “audit proof” their businesses. And we also have years of experience walking clients through ATO audits with a minimum of stress, delay and trouble. Come see us today and let’s talk it over!

3 Ways To Get Your Debt Under Control in 2016

Sun, 06 Nov 2016 21:52:00 GMT

2015 taught me that days come and days go, but worries around debt and money issues do not.

In Australia it seems we are able to talk to strangers about everything from what they had for breakfast to how much fun they had on the weekend, but when it comes to financial struggles and the small business debt we hide it away like that pile of clothes you just can’t seem to put away.

We keep it all inside and “hidden away from the world”.

My question is WHY?

When you feel unwell you go to the Doctor.

When you are having relationship issues you talk to your friends and family.

But when you wake up in the middle of the night in a cold sweat or are constantly stressed over debt and money you just plod along thinking nothing is going to change or that it cannot be fixed.

The year 2016 will see me on a mission to help “Demystify Debt” and make it ok for people to open up and talk about debt.

This may be to family, friends, Financial Counsellors, or anyone.

So here are my 3 Tips To Get Your Debt Under Control for 2016 to assist the public to stay out of or reduce their debts.

Get Better Deals – Start by reviewing your current financial situation and try to get better deals on things like utility bills, insurances, phone plans, credit cards, and pay-TV plans. You would be surprised how much money you can save by doing this. You can even leverage your existing providers to then give a better offer. And then you can start using that saved money to tackle your debt. Start by ringing around the companies you pay money to on a regular basis and ask for a better deal. People may focus on refinancing their mortgage to reduce it a few interest rate points and may save for example $30 Per Month (after they have paid off the switching costs), yet will happily keep paying unnecessary monthly bank transaction fees or pay for services they don’t use such as Gym Membership without batting an eyelid.
Review All Your Transactions – It may sound tedious, but have a Headache someone sits down with you or does it yourself to go through every transaction on your bank statements for the last 12 months. Start by seeing exactly where your money has gone and eliminate any unnecessary costs, or items you could get a better deal on. A case in point is that a few years ago I did the exact exercise for one of my clients. A couple with no kids earning $100,000 Per Annum NETT who used their debit card for all purchases. They came to me as they couldn’t save or work out where their money was going. I found that after taking into consideration all transactions for purchases on their statements they could not account for $24,000! It had been used as cash out for living, alcohol, food, etc. That is almost $500pw the equivalent to their mortgage payment each week gone without any true knowledge of it being spent.
Get Real & Start reading the fine print – In 2016, it’s time to get real and start seeing through the offers from financial institutions to reduce your interest. Being a business tool, they are looking to make money from you in the long run so it’s essential to start reading the fine print. Rarely do financial institutions help you reduce your outgoings or costs unless they see a benefit for them in doing so. Be serious in understanding that a financial institution's role is to make money from you, not to save you money. Many things can be disguised as “saving you money”, but please read the fine print to make sure it is in YOUR best interests and not someone else’s.

We hope our tips will help you make a real start on your small business debt in 2016.

Once you start to tackle the fundamentals of debt reduction you can start to get strategic about planning your business profits. Advanced Accounts uses strategic management accounting practices that help businesses ensure they have the right structures and compliance to start planning their business profits for growth and abundance.

Book an obligation-free financial strategy session with founder, Catherine McMurtrie, today and start eliminating debt and planning your business profits.

About the Author – Peter Ellis, Fast Debt Help

Peter Ellis is a Debt Specialist. Experienced in helping individuals and small businesses deal with all areas of debt especially what they cannot currently afford, Peter and his team work hard to ease the pressures that being in debt brings. Peter also works with like-minded brokers & companies from around Australia introducing solutions, education and advice on all things related to managing debt.

Increase Profit for Your Small Business: what to do & what not to do

Sun, 16 Oct 2016 00:01:00 GMT

At EPAS we are always talking about the health and profit of the business. The things you need to know like knowing your profit margin and competition – and then increasing your prices – are the first step to really making your business transactions profitable. There are, however, some tips that you can follow to keep the profit in YOUR pocket.

First, let’s start with what NOT to do:

1. Do not destroy your profit margin with discounting.

You’ve worked extremely hard to set your prices and ensure a profitable profit margin. DO NOT destroy all of this hard work you’ve done. If you discount your prices, ensure that it’s not causing you to sell significantly more to stay afloat. Any discount you provide should allow you to still be profitable even without the projected increase in sales. Otherwise, what’s the point of discounting?

2. Do use your product or service pricing to be competitive.

Use your product or service to be competitive, not the pricing of said product or service. When you have a good product or excellent service, people will continue to return to your business. Don’t lower your prices, profit margin and income, work on your business. Your product, your service, your customer service – make them set you apart.

Delaying your payments or taking a payment plan can leave you spending more money in the end. Paying in full to avoid interest will leave you more profitable, AND many suppliers offer discounts for paying in cash upfront.

But what SHOULD you do to keep your profit in your small business? Here are a couple of tips to make the most of your sales:

1. Use theft prevention systems.

Losing cash and inventory is expensive. Employees and customers are both common culprits of theft of your goods or cash, and you should have a theft prevention system in place for your small business. For example, a retail store might require employees to have a “bag check” before stepping out the door at the end of a shift. Also, you should always have a checks and balances system for your bills and banking.

2. Check and double-check your bills.

Look over what you’re paying for. This seems like common sense, but many times we just sign off on things because we trust our suppliers because we’re busy, or because we’ve done it so many times before. Make sure your pricing hasn’t gone up without notification, and make sure you’re getting what you’re paying for.

3. Keep track of your stock and supplies!
Please please please keep track of your inventory. If you keep track of your supplies and stock, you’ll be much less susceptible to theft and over-buying. You’ll know exactly how much things cost, what you’re spending and what is selling best. Keeping track of your inventory is one of the best ways to know your business. You might be surprised at what you can find by monitoring it closely.

Try implementing some of these tips into your small business. How much more money do you have in your pocket at the end of a few months?

Why The Rear Vision Mirror Is The Hidden Cause Behind Most Business Failures In Australia

Thu, 01 Sep 2016 22:37:00 GMT

The statistics of business failures are frightening: 44 Aussie small businesses close their door each day and the Australian Chamber of Commerce and Industry’s latest small business review states ‘profits and sales indicators remain below average and sales and labour cost pressures are growing’, some business owners who dreamt of their own business being their ticket to freedom, find themselves in deep financial pain.

With Christmas and the New Year fast approaching, many Aussie business owners will use this time to reflect on the year that was, and this ‘rear vision mirror’ approach to assessing the business is the number one mistake business owners make according to leading management accountant, Catherine McMurtrie.

But Catherine acknowledges that the business owners themselves are not entirely to blame for this historical mindset. They are often at the mercy of the figures and financial statements prepared by their accountants. “Many accountants are only providing half the service that is actually required of them but unfortunately many business owners simply don’t know what to expect from their accountant or the risks to their business by not looking forwards. Conducting a retrospective analysis of business accounts but failing to consider forecasting and forward planning, is an enormous risk for any business,” explains Catherine McMurtrie, Director of Advanced Accounts in Sydney.

How Can Businesses Shield Themselves From Failure?

Catherine believes the end of the year is the time when accountants should be proactive for their clients by providing:

A forward-looking analysis to spot, plan and avoid surprise-hidden dangers such as tax bills or other ATO nasties which could cripple them or ultimately force closure
An awareness of the business landscape to spot potential pitfalls
An understanding of the ‘pinch points’ of the business and devising a strategy to smooth out any troughs
Strong foundations to manage and minimize the risk of ‘financial crash’
Financial Fitness Reports
Debt Minimization strategies for the coming year

“Accountants who fail to practice forward-thinking strategies aren’t adequately supporting their clients and in the worst cases, this failing can result in the collapse of a small business,” says Catherine, who has witnessed and subsequently rescued many business owners who are stressed out, in debt and on the brink of closure due to retrospective accounting.

Catherine believes it falls within the duty of care of all accountants to not only have accurate historical records but to also look ahead to plan and prepare in order to ward off financial disaster.

For more information about just how prevalent the rear vision mirror approach to Australian business really is, contact Catherine McMurtrie .

Stress Caused By Debt

Tue, 09 Aug 2016 01:43:00 GMT

As it turns out, many people feel the stress of the debt they are in. Spending money becomes a chore. Every little thing that comes up seems like you’re digging a deeper hole, and fun activities are less than enjoyable when you know your cash should be spent on paying off your debt. Debt that seems more “normal” can carry less of a strain, like student loans or home loans, but this stress becomes even more true when the debt carries a large burden – like a high-interest rate or ATO accountability.

So how can you increase your cash flow so that you can start enjoying those times when you spend your money on things other than debt – rather than dreading them and allowing yourself to feel debt stress?

This may seem obvious, but to increase your cash flow so that you can spend in a smart and fun way, you first need to decrease your debt. Simply making more money won’t help your situation. Making more money will simply cause you to stress more as you’re spending more money. That is, unless you’re using it to decrease your debt burden. Simply put, spend your money wisely. Pay off the looming debt with severe consequences (like your ATO tax debt) or the debt with the highest interest rate first.

How can a smart tax accountant help you within lowering that tax debt – and your stress?

So that you

don’t have to make more money if it’s not an option and
you can pay off your tax debt quicker.

Our guest blogger Peter mentioned , that we can help you comb through all of your expenditures so that you know where your money is going and what we can do to find you more money in certain areas of your spending.

Most importantly, when you’re in over your head with the ATO – have a professional examine your assets and liabilities, income and expenditures to ensure you aren’t over-paying the ATO. We work hard to make sure our small business partners are keeping every penny that they should in their pocket. We’ve proven time and time again that we can lower our clients’ tax burden and pull their small businesses out of debt.

To talk with someone on our team about how we can pull your small business out of debt, increase your cash flow and decrease your stress levels – Schedule a consultation here .

Directors Liable For Unpaid Tax

Tue, 12 Jul 2016 01:26:00 GMT

Ever since the Australian Taxation Office Ruling in 2012, directors can no longer avoid being liable for their organization’s tax obligations.

What Does Being Liable Mean For You – The Owner of Your Small Business?

If you run your own business, any assets, whether they are in your bank account, your wallet, equity in your home and your freedom are on the line when your taxes go unpaid. Hundreds of thousands of dollars in penalties, prison time and losing your business are not why you’ve started this idea. You’ve put your blood, sweat and beers into building out your ideas and turning them into a thriving and intuitive business. You’re an entrepreneur. You have a dream for your business.

While the ATO has always had the power to hold directors liable for unpaid PAYG withholding tax, in 2012 – the stakes got higher.

Before this time, the company could pay the owed debts and/or be put into administration or liquidation. No longer is this an acceptable form of payment. As a director, you can now be held liable for unpaid superannuation amounts – and after 3 months, your personal finances will be affected.

So let’s assume you have had a cash shortage. Perhaps you are owed a lot of money by debtors. Export income has been held up in red tape or due to quality control issues. Your employees have been paid wages, and you have made an allowance for their superannuation each week. You simply didn’t have the cash at the time and are waiting for things to balance out.

Right in the middle of this, your monthly or quarterly BAS falls due. You knew it was coming, it is simply a matter of timing. Your bank will not extend credit. You get in touch with the ATO. The response is blunt. It is due now. Failure to pay will result in penalties. Somehow things don’t improve as fast as you had hoped; you are now 3 months in arrears and unable to pay. This is where things get cruel, the penalties harsh.

Your assets will be liquidated if you cannot pay the debts in a cool three months. There are potential civil and criminal penalties for the solely responsible company director. Up to $220,000 in fees and five years in jail time just for not paying your taxes!? Yep.

How Can You Avoid This From Happening To You?

There are several things you can do to avoid these penalties, number one is to pay your taxes on time. Keeping detailed records of income and expenses is also important. Most importantly, you need to get ahead of the money, and that’s why you hire a professional.

Many people put off paying their taxes. Many people simply forget. Many files are incorrect. That’s where a professional comes in. It’s SO important to get in front of these penalties. Once you’re facing penalties, it’s going to be a long road. The ATO outstanding payment accrues interest, and if you are due a refund, this will be used to pay down the debt also. More from the ATO website >

A professional can ensure that you are compliant with the law at all times whilst you pay what you owe. In the long run, this is how you keep the most money in your pocket without risking criminal charges. If you want to avoid the hard line the ATO takes on you as a director and continue to run a profitable business; one that you can grow old with – or sell profitably, remember that you’re the entrepreneur – we are the tax accountants; here to help you with tax.

Choose the right structure

Sun, 08 May 2016 00:27:00 GMT

A TRAP FOR NEW BUSINESS OWNERS.

SOLE TRADER OR COMPANY?

What’s the right choice when you are just starting in business?

Getting your business structure right at the beginning can save you a fortune in tax liabilities later on. Being a sole trader seems like a great idea for some but there are tax implications for you in years to come. If you want some more advice from EPAS please call us now.

Saving assets & reputation

Fri, 06 May 2016 23:03:00 GMT

Phil had a bird’s nest of entities, each owing more than $100,000 in tax when we met him. It goes without saying he was incredibly stressed. Particularly because his business had slowed and a number of major projects had been cancelled.

He was left with bills from the ATO and creditors and no money to pay them.

Threats began to come in from the ATO, Phil was facing a real risk of receiving a Directors Penalty Notice which would call into question his personal solvency, and his reputation was on the line too with a potential breach of directors duties.

Our first task was to negotiate with the ATO to sort things out. Then we set about untangling the mess and restructuring things so that Phil could meet obligations without loss of personal assets and reputation. The best option was to liquidate some of the entities over a period of time, which we worked through together.

We worked with Phil to help him tighten cashflow significantly so he was able to make debt repayments and keep the office and staff. Phil was able to work through the strategy we developed, avoid prosecution with the ATO and ASIC. He is now cashflow positive again and relies on us to manage all his accounting and tax compliance for peace of mind.

* This is a real case study, we’ve just changed the client name to protect their privacy.

Incompetent Accounting & paying too much tax

Fri, 29 Apr 2016 05:18:00 GMT

Joe was puzzled about why his tax bill kept going up and his accountant was coming up with nothing in the way of an explanation. Regardless, he thought he was up to date until the ATO started calling.

By the time Joe called us he was in a panic. The ATO was chasing him for $45,000, refusing to make payment arrangements and demanding payment within 4 days to avoid a Directors Penalty Notice which would transfer the company debt to personal debt. On top of this, his wife knew nothing of it.

We got hold of the accounting software, logged into the ATO portal and quickly figured out where the tax debt was coming from. His accounts were wrong. We were able to revise the figures and after a call to the ATO, we made arrangements to pay what was just $10,000 owing.

Of course, Joe was relieved and happy. He immediately transferred all his bookkeeping, accounting and tax management to us to ensure things like that never happened again.

* This is a real case study, we’ve just changed the client's name to protect their privacy.

2nd Opinions pay off

Mon, 04 Apr 2016 05:01:00 GMT

Robyn had a hunch her accountant just wasn’t paying attention to things so she came to us for a 2 ^nd Opinion on her tax.

She was right, in fact, all too often, we see the result of ‘vanilla’ accounting where no one has bothered to look beyond the surface or ask the obvious questions.

When we looked into her position, we found ways to radically reduce her tax bill and even get some cash money back so we revised her returns and now Robyn is thrilled to have money in her pocket!

* This is a real case study, we’ve just changed the client's name to protect their privacy.client's

Emergency Accounting

Survival for small business owners

Mon, 07 Mar 2016 02:08:00 GMT

So you thought you had a good idea to start a business….

Have you really thought about how well prepared you really are?

Do you have the business administration skills you need? Catherine is committed to waking up small business owners and company directors so that they can successfully navigate their responsibilities and thrive rather than just survive.

There is an epidemic of small business failures in Australia and it is time to get real about what is going on.

Emergency Accounting

Don’t Leave Money on the Table: Commonly Overlooked Income Tax Deductions

Sat, 05 Mar 2016 00:59:00 GMT

It doesn’t matter how scrupulous you are in your business – or how patriotic you might be – nobody likes to pay tax! And doesn’t it especially sting when you find out that you’ve paid more for something than you really had to? The little bits add up over the years and if you could legally and responsibly shave a little bit every year from your annual tax burden, just imagine what that could add up to after years of compounded interest! It’s no joke – it comes out of your heirs’ pockets, really. And isn’t that why you put yourself through all that you do as a small business person? You struggle for years to build up something that you can leave to your kids someday for their benefit. So as important as it is, you would think that every Australian taxpayer claims every legitimate deduction that he or she might be entitled to, right? Surprisingly, no! Every year people leave a great deal of money on the table by not claiming tax deductions they are entitled to. And we’re not talking about some kind of esoteric (and risky) deduction like the accelerated depreciation of an option on Nigerian mining rights. We’re talking about simple, obvious “bread & butter” things that people really should remember. Let’s take a look at a few:

Union Dues and Dues for Professional Association Membership

As a small business owner, you probably aren’t a union member. But you probably do belong to one or even several professional associations – a bar association, an association of chartered accountants, a society of professional engineers, the list goes on. If the purpose of the organization is professional – if it is related to your paid employment, then the membership dues you pay are deductible on your income taxes.

Cost of Tax Preparation Services

One obvious benefit of using a professional accountant to prepare your taxes is that you are extremely unlikely to forget to make claims for deductions that you are entitled to! And the second benefit – the cost of that expertise comes right off your tax bill anyway! Every fee you pay for the preparation of your taxes is deductible.

Laundry Cleaning & Repair

If you have clothing specific to your employment – if it is a uniform, protective gear (like a hard hat or steel-toed boots) or if it is in any other way “occupation-specific,” then you can deduct all sums you spend to wash, dry, iron and repair the clothing.

Sun Protection

If you run a landscape service, if you’re a farmer, if you do any kind of work that requires you to spend most of your working hours out of doors, then you can deduct expenditures on sunglasses and other forms of sun protection.

Professional Education Fees

In order to stay competitive in your small business, you need to keep on top of your game with constantly updated education. This is particularly true for those who are engaged in professional services: lawyers, architects, engineers, and doctors. All expenses related to your continuing professional education are deductible: course fees, books, certain travel expenses, and subscriptions to professional and trade journals.

We think you’ll agree that most of these things are pretty obvious and not at all novel or unusual. But still, people forget them just because of the press of their own daily lives. Having professional assistance helps you maximize the tax return you can get. Call us today and let’s talk about minimizing your taxes!

When business debt gets personal

Sat, 16 Jan 2016 21:20:00 GMT

James has a large domestic company with clients around the country. He was referred to us because he was expecting a tax bill in excess of $450,000, which, because of the way his affairs were structured, would become his personal tax debt.

Fortunately, we were able to see avenues that hadn’t been utilised to avoid what he thought was inevitable. When we finished our work for him, James was surprised to receive a tax refund and was very happy indeed!

* This is a real case study, we’ve just changed the client's name to protect their privacy.

Wise Guys, Negligent Guys & Tax Cheats

Thu, 03 Dec 2015 19:01:00 GMT

The subject of “tax loopholes” has become increasingly controversial around the world. There is a lot of resentment in the middle classes about the various – occasionally extremely complex — ways that high net-worth individuals and corporations structure their business transactions in order to reduce or, if possible, even eliminate their taxes. They are simply Tax Cheats.

The fact that so many people find tax shelters and other intelligently-structured economic transactions to be politically distasteful has given the whole arena of tax planning a bit of the smell of sulphur. So we consider briefly in this article the subject of tax planning from a general moral standpoint and then point out the great value of having highly-trained and experienced tax counsel on your team when you do the financial planning for your small business.

Economic Freedom

We are very proud to be tax accountants for small businesses. We enjoy the intellectual challenges of the work and of course, we enjoy the relationships with our clients who very often are years-long friends. The other issue, however, is a deep philosophical point. Australia is a stable democracy. And in a free democratic society, economic freedom is second in importance only to ideological freedom (freedom of conscience, of speech and of the press).

What you earn from your labours is yours to keep! That’s what freedom is. Now, of course, we must maintain the services of the government and for this reason, the People assembled in parliament have passed statutes that spell out the tax code. No Australian has any moral or other obligation to pay one penny more than he is required to pay under the written provisions of the tax code. If there are those who feel that certain tax provisions are inappropriate or that certain deductions are too generous – fine, let them come forward with a bill in the parliament, persuade the members there assembled and pass the bill changing the tax code.

In sum, people’s opinions about the tax code do not have the force of law and to the extent that they have any moral force, it is as an argument for amendment of the law , not as an argument that people should pay more tax than the current law requires. This argument is not entirely about vindicating the wholly self-interested agenda of individual citizens.

A very valid question exists about who can deploy capital more efficiently in society — a profit-motivated individual citizen or the government. Suffice it to say that we believe that minimizing our clients’ tax obligations within the bounds of the law is an honourable profession that makes a real contribution to society. Smart small business people employ educated and experienced tax accountant not only to minimize their tax obligations but most of them also do so exactly because they are conscientious citizens – they want to ensure that their claims truly are within the bounds of the law. Our goals are two-fold – to minimize your tax obligation AND to make sure you understand and comply with the law so that you pay your fair share.

Negligence

There are, of course, plenty of people who underpay their taxes and most of them, by far, are not witting, intentional criminals. People without a fully professional tax accountant can and do make mistakes. Many times, economic transactions are complex and the structure of a deal makes a big impact on the tax consequence. If you’re serious about your small business and about your honourable status in the community, you want to go from hoping that you get your taxes right to knowing that you did. Professional tax counsel makes the difference.

Tax Evasion

And then there are these guys…. Rather than spend their time imagining better ways to improve their margins in their business or attract new customers or extend their business into new and more profitable lines, they are attracted to short-cuts like knowingly cheating on their taxes.

We do not work with such people. The legal consequences of tax fraud are one obvious reason to avoid businesses that cheat on their taxes. But there’s a broader issue as well – people who take shortcuts in life by cheating on their taxes invariably take short-cuts in a hundred other ways as well – in their marriages and families, in their personal finances, in their business dealings. Outright tax evasion – as opposed to smart tax planning – is illegal, immoral and almost always leads to serious life problems for all involved.

As tax accountants for small businesses, we are proud indeed of our professional calling. We will help you understand the law. We will help you obey the law. And while obeying the law, we will help you keep as much of your hard-earned money in your own pocket instead of in Canberra’s as possible. Come see us and let’s help!

3 Powerful Ways to Get Better Cash Flow (in your wallet) By Christmas

Tue, 01 Dec 2015 20:04:00 GMT

We are on the countdown to Christmas and it’s crunch time for many small businesses.

In an article by James Dunn , ‘Backbone of economy showing its strength’ in the Financial Review, he raised the importance of small businesses and their impact on the economy.

He wrote, “It is a constant refrain, that small business is the backbone of the economy: and the latest statistics bear it out. According to the Minister for Small Business and Asthe sistant Treasurer, Kelly O’Dwyer, small businesses have never been more important to Australia: the more than 2 million small businesses employ more than 4.5 million Australians – almost 40 per cent of the total labour force, and half of the private-sector workforce – and contribute more than $340 billion to our economy every year..”

Yet the odds seem against small business succeeding according to stats released by ABS & AISC:

More than 60 per cent of small businesses cease operating within the first three years of starting.*
44 per cent of businesses who became insolvent suffered poor strategic management **
40 per cent of businesses who became insolvent had inadequate cash flow or high cash use

There seems to be a disconnect between the amount of entrepreneurial Australians taking the plunge to become a business owner, and actually being equipped with the skills to properly managed the financial challenges of growing and running a successful and lasting small business.

I have built my whole accounting business around helping SMEs stay in business when the going gets rough.

Having come up against my own struggles in the 9 years I’ve built my business, I want to give the strategies I developed to grow my business to the small business community at large.

There are three key areas of business finances where businesses come unstuck as they start to increase their profits and growth which can ultimately lead to having to close their doors if not managed in time.

When it comes to cash flow not knowing these red flags end up costing business owners money and sometimes their business if they don’t find us in time.

Knowing these brings money back into your business and sets you aside from your average Joe Blow business owner into a fair dinkum guy, to someone who’s actually serious about your business.

Here are my three tips in short:

Know your numbers – Without cash, you have no business. You need to know every dollar that comes in and goes out of your business. It’s surprising the power of intimately knowing your numbers and how many people are not truly across them. When you take the time to know your numbers you can more easily identify things that may not be crucial for current business operations and can free up needed cash flow. Also, knowing your numbers and when cash is coming in or out can help you make better purchasing decisions to help maintain cash flow.
Don’t let company debts become personal debts – At some point in your business, you may find yourself with high unexpected company debts and not know why. Ensure you understand where your debts are coming from and work with a qualified and trusted accountant to pay those debts off in a timely manner otherwise they may become personal debts and you could lose more than your business. When you work with a qualified accountant to ensure your debts are correct and managed across a reasonable time frame, you can also better manage your cash flow by creating a schedule that works for your business.
Always review your business structure – As your business grows, you get more money, more clients and more profits. While more profit may sound ideal, it also means more tax. Obviously, more profits mean more cash, but if you aren’t managing the tax obligation side of the business that cash could quickly be going straight from your business to the tax office. Reviewing your business structure could help you get better taxation regulations and ultimately more money in your business bank account. It’s important to always review your business structure with your accountant so you have the best structure to minimise tax debt and maximise your overall profits at the end of the year.

epas-wireframe-new-martin

The ATO Is Reinstating Closed Businesses To Chase Debt: What You Need To Know

The ATO Is Reinstating Closed Businesses To Chase Debt: What You Need To Know

You’ll Be Personally Responsible

What Can You Do?

Understanding How To Negotiate With The ATO

Understanding How To Negotiate With The ATO

Why you need the right accountant

What you can expect from negotiation

Don’t hesitate if you feel you need tax debt help ﻿

Why Trying To Pay Your Tax Debt Down Yourself Could Harm Your Business Even More

Why Trying To Pay Your Tax Debt Down Yourself Could Harm Your Business Even More

Why can aggressively targeting debt repayments be a problem?

Why managing your tax debt yourself is not the best approach

You don’t want to risk the credit rating of your business

You don’t want to risk the credit rating of your business

What does this mean for your business?

What should you do if you’re at risk?

Cash Won’t Help You Dodge Tax

Cash Won’t Help You Dodge Tax

Preventing Recurring Tax Debt: Key Strategies For Australian Businesses

Preventing Recurring Tax Debt: Key Strategies For Australian Businesses

Don’t get caught out by ATO data matching!

Don’t get caught out by ATO data matching!

Take a deep breath and stay calm – it’s tax time

Take a deep breath and stay calm – it’s tax time ﻿

I’m being audited by the ATO – should I panic?

I’m being audited by the ATO – should I panic?

Understand why the audit has occurred

What to do while being audited?

Why you need emergency accounting support when addressing the ATO?

Don’t let tax debt stress you out

The five main reasons businesses accumulate tax debt

The five main reasons businesses accumulate tax debt

Is it possible for a business to recover from tax debt

Is it possible for a business to recover from tax debt

How can I get tax debt relief?

How can I get tax debt relief?

How do I manage multiple years of tax debt?

How do I manage multiple years of tax debt?

﻿

How Long Do I Need Emergency Accounting For?

How Long Do I Need Emergency Accounting For?

Attend our FREE event and get your business in better financial health

Demystifying The ATO’s Tax Collection

What Causes Tax Debt

Riding the CoVid Wave

Small Business ATO Lodgement Dates

Don’t Get Caught By The 6-year Exemption On Property Investment

Are You Keeping Up With the Scams Targeting Australians?

1. How elaborate have SCAMs become in Australia?

2. Who are the targets of SCAMMERS?

3. How can you protect yourself, your business and your family from SCAMs?

Is Your Bookkeeping Silently Destroying Your Small Business?

STP IS HERE ARE YOU READY OR NOT?

ATO Crackdown

Profit. Profit. And More Profit in 2019

Profit, More Profit. And more profit in 2019.

What a Little System Error Actually Costs You

Bamboozled Businesses

Does the ATO require greater supervision?

Tax Agent Fraud

The Black Economy: using cash to avoid tax or wage payments

It’s time to get ready for Single Touch Payroll

Payroll preparation and reporting are changing. Are you ready?

Why is the ATO changing a system that works just fine?

The one government department which refuses to rest on its laurels, the ATO is implementing changes that integrate into other government services, reduce payroll paperwork whilst improving compliance and reduce End of Financial Year paperwork. More specifically, the ATO says:

Are you a person who likes to read all the jargon for themselves?

The ATO Newsroom has the information broken down into understandable and easy-to-follow language. Access the Media Release to read all the fine print and details. You can even access the content in video format.

What do you mean by ‘Fake Expenses??

Fake Expenses

Getting Help

Is this your problem?

What does the ATO think About “Joining a Client for Lunch”?

Doing Business. Doing Lunch

Why EPAS?

WHY DID I HAVE TO CREATE EPAS?

What We Achieve For Our Clients

What Does “Emergency Accounting” Mean?

What Is “Preventative Accounting?”

Don’t hesitate if you feel you need tax debt help

Take a deep breath and stay calm – it’s tax time