Business Activity Statements
Yet another quarter is almost over and it is time to get your information in to your book keeper or to us for preparation of the March quarter BAS. Remember that BAS prepared and lodged by us or a registered BAS agent are eligible for an extension on the lodgement date and the payment date.
Tax Planning appointments
It is important to note that tax planning appoint...ments are not just for businesses with tax to pay. Structure review, your personal goals and plans are taken into account, a review of your record keeping and performance and areas for improvement are all considered.
Carry back provisions
As the 2013 financial year is coming to an end, it is prudent to remind clients of the carry back rules. These took effect from 1 July 2012, it is a one year carry back provision which applies to the 2012/2013 financial year tax losses. It allows up to $1 million worth of tax losses to be offset against taxes paid in prior years (Franking balances). It only applies to tax losses not capital losses. The provision does not apply where the control of the company has changed.
• You must have strong financial management – poor cash flow, debtors out of control, lack of focus on profit margins and overtrading beyond your businesses ability to meet commitments are the biggest factors in small business failures in Australia.
• You need to measure performance in order to manage it. If sales is your focus then lead generation, conversions and purchase value are your measurements. If cashflow is your focus then collection days, turnaround time and sales staff time might be important. Just about anything can be measured so look at your figures.
• Retrospective accounting is the preparation of historical figures for tax compliance. You can not improve whats happening during the year unless you monitor and review throughout the year.
• Comparisons provide a reference point where you were versus where you are now and more importantly where you want to get to. Benchmarking against others in the industry as well as internally can assist your focus on poor business performance and provide you with insight as to the problem areas.
• Keep your management approach simple. Invest a little time in implementing the right systems and procedures and you will save yourself a lot of time and heartache.
