For many start-ups, Accounting is viewed as a non-value adding expense until the company has grown to a certain level. But for smaller companies, trying to do their own accounts and taxes, the cost may be greater than hiring an Accountant since inception. Granted, newer companies have found ways to limit their expenses and look at different ways to maximize growth while keeping overhead low. However, no matter how well you can manage your companies books, investors prefer Accountants to provide them with detailed growth projections, figures, and hard data to evaluate a pitch.

There are many benefits to having an Accountant on call whilst you are a start-up. The most important benefit is that an Accountant allows you and your team to focus on developing products and relationships and improve sales and marketing campaigns. When your business is initially established, you must learn the different areas of the business, and classify them as “essential” and “non-essential” to maximize growth.

The Accounting Services at R T Accounting & Taxation Services can provide your company with financial information of the highest caliber. These include:

• Month End Reporting
• Payroll Services
• Industry Benchmarking & KPI Analysis
• Working Capital & Cash Flow Management
• Development of Policies and Procedures
• Regular updates on Tax Legislation

Another great advantage to an Accounting Service is having another valued business partner on your side. Since Accountants usually have years of experience assisting start-ups, they can provide a wealth of information for the services listed above. Having insight into the trajectory of your business can be invaluable to your business starting up and help you in developing the most effective business strategies.

Essentially, if you believe that your start-up may need the assistance of an Accountant, then time is of the essence to begin finding one that fits your needs. The earlier you acquire one, the easier it will be to fix any financial difficulties that occur in the future. It is always beneficial to have a firm financial system in place as this will serve as a strong base for your business and support its overall health. Research has shown that start-ups that begin with erratic financial planning often end in demise, making the assistance of an Accountant even more valuable for a new business.

Get in touch with our Accountants in eastern suburbs at R T Accounting & Taxation Services to enquire about our Outsourced CFO Services and Business Tax. Also, Advisory Services to see how having an Accountant can be beneficial to your start-up, and let’s see your business grow during these difficult times.

Australian taxpayers who have not yet submitted their Tax Returns have less than a week. They have to fix the situation in order before they start accumulating late lodgement fees.

For taxpayers submitting their own returns, the official last lodgement date is October 31^st, 2020. However, since October 31^st is a Saturday, this has been moved forward to Monday, November 2^nd.

If you need more time, this October 31^st rule does not apply if you are on a registered tax agent list by 31^st October. This is a quick and easy process and as simple as sending us a message via any of our platforms.

Scammers

It is also important to note that scammers are on the rise in approaching the tax deadline day. Taxpayers should never send their myGOV details, passwords, credit card. Bank details, driver’s license, and passport details to anyone.

Scammers can also make full use of victims. The full name, date of birth, and current address if those details are combined with the above details.

Phishing scams lure victims into passing over personal details by pretending to be respected groups. They use the ATO or Australia Post, with email scams leading the way, followed by phone calls and text scams. Australians need to be vigilant when it comes to their email inbox.

This means taking a good look at the senders’ email address to see if something doesn’t seem right, even things such as spelling errors or an email address that has nothing to do with the business or group they claim to be representing.

There is one golden rule in that if something looks too good to be true, it probably is. Even the converse may apply. That means if the ATO is offering a bigger refund, or demanding any tax debt should be paid urgently, you should get in touch with your tax agent as soon as possible and never give your personal details to people you don’t trust.

If you’re not entirely sure about the process to lodge your tax returns, don’t be afraid to give us a call or send us an email beforehand and one of our specialists will be more than happy to guide you through the process.

With the news of the 2020 Federal Budget bringing forward the Coalition’s three-stage tax cut package. Our payroll services in the eastern suburb of Sydney have implemented the new tax tables into our facility for our small business customers.

The ATO has announced that since changes have been made partway through the income year. All the employers have until 16^th November 2020 to do so.

Employees and other payees will receive their entitlement to the reduced tax payable for the entire 2020–21 income year. After lodging their income tax return.

Employers seek to pay their workers an accurate amount. Payroll providers are working to have their products updated with the correct tax tables implemented.

Reckon

A statement released to its customer base last Friday. Reckon announced that they have updated their systems with the tax changes.

“The Government announced changes to personal income tax thresholds for the 2020-21 income year in the 2020 Federal Budget. Changes to income tax tables took effect from 13 October 2020.

We have updated the 2020-21 ATO PAYG tax tables in Reckon One, so there is nothing else you need to do. Pay runs dated from 13 October 2020 automatically use the 2020-21 PAYG tax tables.”

Xero

Xero has updated their software to reflect the new tax tables in Xero Payroll. They want to match the new withholding rates as of 13^th October 2020. Employers have a grace period up to 16^th November to start using the new table, however, it would be wise to use them as soon as possible to avoid any confusion.

MYOB

MYOB have updated their products in line with the tax changes last week. This reflects all their products updated with new tax tables well ahead of the 16^th November deadline.

QuickBooks

QuickBooks have updated their payroll system to match the new withholding rates as at 13^th October 2020. Employers have a grace period up to 16^th November to start using the new table, however, it would be wise to use them as soon as possible to avoid any confusion.

What are the tax cuts?

The income tax threshold for 19% will increase from $37,000 to $45,000 and lifting the 32.5% threshold from $90,000 to $120,000.

In 2020-21 tax years, single low and middle income earners will receive up to $2,745 tax relief and dual income families can receive up to $5,490 in refundable tax offsets.

The new tax cuts are as followed

• All Income owners with $40,000 earnings will have a 21% tax reduction
• Income owners with $60,000 earnings will have a 17% tax reduction
• 11% tax reduction for the Income owners with $80,000 earnings
• Income owners with $160,000 earnings will have a 5% tax reduction

For further information on our Payroll Services, feel free to get in contact with our Accountants at R T Accounting & Taxation Services.

Australia’s first recession budget since the early 1990s was delivered last week. This will be the blueprint for successive federal budgets. This will focus on repairing the economic destruction caused by COVID-19.

The government has not held back, with major spending initiatives targeting taxpayers, job creation, infrastructure, manufacturing, and regional recovery.

Taxation

For lower and middle-income earners there was an established law for income tax cuts. The government will also retain the Low and Middle Income Tax Offset for an additional year providing further relief.

Business Support

There is an extension of the instant asset write-off to businesses with a turnover of up to $5 billion until June 2022 along with the introduction of a tax loss carryback, which will provide much-needed cash to previously profitable businesses that are now making losses due to COVID-19.

The Digital Business Plan measures support digital transformation. But ultimately is a missed opportunity to directly help Australian businesses. They will take up technology to enhance innovation and job growth.

Superannuation

The creation of superannuation accounts will not happen every time when a worker starts a new job. When you change jobs, Your superannuation account will ‘follow you’ preventing the creation of multiple super accounts.

For further information on how the 2020 Federal Budget affects you, feel free to get in contact with our Accountants at R T Accounting & Taxation Services.