why your business should be moving accounting online
As you know we do things differently at Morris Accounting and we are one of the few accounting firms leading the change to online accounting and bookkeeping.
Benefits of this is a great reduction in data entry, saving lots of time and money. This means that your existing bookkeeping and accounting dollars can be better utilised for uptodate reporting, enabling quick management decisions to improve the producitivity, efficiency and profitability of your business.
Other benefits include
- See your cashflow in real-time. Just login anytime, anywhere. On your computer or smartphone
- Up-to-date reporting with quick links to all the original transactions.
- do pay runs and track wage expenses or connect with your payroll system.
- Manage your spending and make bill payments in bulk to creditors.
- Unlimited, around the clock email support and detailed online help center.
- Automatically import and code your bank transactions.
- Create and send invoices automatically and get paid online.
- Handle personal expenses – just review and approve receipts.
- Track stock movements and make invoicing easier with inventory items.
Youd be surprised our reasonable service levels with more services than just tax and financial statements. Most clients are opting for a $440 per month package that includes bookkeeping as well. Sounds pretty sharp? Contact us for sharper money management for your business. 1300 219 818 or info@morriasccounting.com
Making Superannuation Contributions
There are a number of ways to contribute money into superannuation, with different tax and benefit consequences. Contributions caps per person per year are:
Deductible contributions under 50years old $25,000 per year and over 50years $50,000 (with balances under $500k).
These are not eligible for government co-contribution.
Non Deductible contributions are capped at $150k per year, however you can bring forward 2 years to make a one off contribution of $450k.
Non Deductible contributions are eligible for government co-contribution if income tests are met. $1 for $1 if your assessable income is under $31,920, which reduces to no benefit once income is over $61,920.
Employees
The only way to make tax deductible contributions is via salary packaging / salary sacrifice. These contributions are known as employer concessional/deductible contributions.
Non deductible contributions can be made with your after tax net wages and these may be eligible for government co-contribution depending on your income. These contributions are known as member non-concessional/non-deductible contributions.
Business owners
You are able to make tax deductible contributions from your business if you are a sole trader or in a partnership. These contributions are called member concessional/deductible contributions.
Those businesses in companies and trusts can make contributions on behalf of business owners. These contributions are known as employer concessional/deductible contributions.
Non-Deductible contributions should be made from personal accounts, not business accounts. Depending on your income these may be eligible for government co-contribution. These contributions are known as member non-concessional/non-deductible contributions.
Ensure with your superannuation fund that you are notifying them of the correct contribution types so you are able to claim a tax deduction if application or receive the government co-contribution.
Please do not hesitate to contact our office for any further assistance you need with superannuation and taxation planning.
law change makes finding super easier
From 1 July 2011, to help super fund trustees and retirement savings account providers operate more efficiently, they will be able to use their members’ tax file numbers (TFNs) as a primary locator to:
- link contributions and rollovers with member accounts
- locate member accounts.
Regulations are also being developed to support the use of TFNs in facilitating the account consolidation process.
These measures will make it easier for individuals to be reunited with their super, whether it is sitting in a lost account or in multiple accounts across various funds.
October Newsletter
We have a monthly newsletter to educate our clients and network about all things tax and accounting, for individuals and businesses.
- Nathan’s update and October happenings
- Upcoming events you should attend
- Individuals and businesses – be prepared for a tax audit!
- Business strategy planning – exit of business (or death of business owner)
- Businesses! Time to review your Sales process and Customer Relationahips
in business? your sales and crm system needs should be one of your top 3 priorities!
Business Owners – Is your sales system working? Do I hear you think…Do we have a sales system?
The four pillars of business are marketing, sales, delivery/operations and administration. All too often confuse marketing and sales but they are two different things. Marketing is identifying your marketing and through activities attract potential clients/customers to your business.
Sales is converting these leads from marketing, into clients and customers who will buy your service/product. Sales is about increasing your conversion rate of leads to sales, and creating a sales process and experience that is leveraged and gives the client a good consistent experience.
Many businesses we talk to don’t have a proper sales system. Even we are in the middle of actually re-documenting our sales process.
Things you need to address with your accountant, business advisor include:
- blueprint for a streamlined sales process
- qualifies leads to become better clients
- creates value for clients
- integrates with an easy CRM
- leveraged sales process that reduces your time and your staff can use
- and more.
We are covering these at our business power lunch, come along to find out more, or call us at Morris Accounting to discuss in further detail your sales system.
Subscriber saves $1400 using Morris Accounting Tax Checklist!
Those who haven’t checked out our tax return checklist (subscribe on the right>!!) are missing out on vital tax deductions resulting in bigger refunds!
We were pleased to hear from Tanya who recently subscribed to receive our free tax return checklist.
“By using your tax return checklist I found more tax deductions to claim to increase my tax refund by $1400! Thankyou Nathan for sending me this, I’m looking forward to receiving more helpful information and when I purchase my rental property I will be letting you take over from there!”
Thanks Tanya, Its always great to receive positive feedback from us giving some time and resources to help those who aren’t even clients.
ATO datamatching, audits and delays with 2011 tax returns-refunds
There is nothing “random” about ATO audits. Taxpayers still don’t realise just how much data the ATO has access to from other sources, like financial institutions, so it can easily see if a taxpayer is withholding information. In January last year the ATO just spent some major money implementing a new computer system which encompasses a number of their old databases and systems. Computer matching makes the exercise of data matching automatic and easy to perform. Morris Accounting expects that the ATO’s data matching activity to increase as a result of the introduction of this new system as a result audit activity will increase accordingly.
This 2011 tax season sees a new initiative of the ATO to withhold processing of returns and refunds to individuals where the ATO is waiting on further information from these data matching sources. Recent notices from the ATO indicate that the returns are not being processed any earlier than 12weeks, a timeframe not supported by us tax professionals and we are lobbying for this to be changed.
If your business, company, trust or individual return is subjected to “random” audit, review or investigation, you are responsible for the costs involved in providing the required information. The costs associated with an audit can start at a couple of thousand and range very high upwards of that. You can protect yourself against these costs by taking out Audit Insurance Cover. Should you wish to find out more information about Audit Insurance please contact our office 1300 219 818.
Our internal workpaper preparation, and the way we disclose information on clients tax returns generally lowers the chance of being audited. The ATO have a number of internal red flags depending on the information provided, and we do our best to mitigate these arising for clients. To this extent we generally query our clients with information and discuss if this may be a problem.
As outlined in our engagement letter, you are obliged to provide true and correct information to us for preparation of your tax returns. If you have done this then you should not be concerned with an ATO audit. For more information on the ATO audit process and other information goto www.ato.gov.au.
Planning for an untimely death
I know that we all like to think we will live forever, but the reality is we don’t. As those of us who have lost loved ones know, it’s hard enough without any added anxiety over worrying about financial matters that may not have been adequately put in place.
The following is a checklist of what you should have sorted out in case you suffer an unexpected illness or death:
- A will – a will leaves clear instructions as to how you want your assets distributed after your death. Estates without a will can take YEARS to sort out if there are multiple beneficiaries. In Queensland the Public Trustee offers a free will-making service, or if your situation is complex, we would be happy to refer you to a solicitor.
- Enduring power of attorney – this legally specifies who you choose to make financial, personal and medical decisions on your behalf should you be unable to (for example, due to an illness or incapacity).
- Binding death benefit nomination – this spells out who receives your superannuation and insurance amounts after you die. Check with your super fund to see what their process is regarding binding nominations – most have a form that needs to be completed with your signature witnessed.
- If you are a business owner make sure your business has an appropriate succession plan in place.
- Have a up-to-date list of who needs to be notified should something happen to you – this may include relatives, friends, employer, clients, business associates, organisations you are involved with, and anyone else you feel appropriate.
- Keep all your important documents together – these should include bank account details (including loans, credit cards, term deposits), insurance policies, super fund details, property deeds, share certificates, birth and marriage certificates, along with the above-mentioned documents.
Finally, make sure a few people know where you keep your important documents – including your spouse, kids/parents and the person nominated as the executor of your will.