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Outsource CFO Services for Small Businesses

5 Reasons to Outsource CFO Services for Small Businesses

Many small to medium-sized entrepreneurial businesses reach a certain point in their growth. Where they will need in-depth data and expertise to plan, measure risk, improve performance. And profits, secure company financial health, and growth. In a large entity, this role is filled by a full-time Chief Financial Officer (CFO).

Times have changed, and many SME’s no longer need a traditional full-time employee to look after the services mentioned earlier. They can easily tap into the knowledge and expertise of an experienced CFO without putting them on the payroll. And enjoy greater benefits than they would if they hired an in-house CFO.

Significant Cost Savings

Hiring a full time CFO is a massive financial commitment. Many small businesses simply do have the money to pay close to $200,000 per year plus benefits to a qualified CFO.

Outsourcing your CFO requirements to R T Accounting & Taxation Services will come at a fraction of that cost. You will not need to pay us employee benefits, commissions, bonuses, or profit-sharing incentives often attached to hiring an in-house CFO. You can scale up your services as your organisation grows to minimise your expenses. And more importantly, put more money in your pocket.

Collaborative Strategic Planning

As a business owner, you know what you want to achieve from a business perspective. However, do you know the financial steps required to reach that goal? At R T Accounting & Taxation Services, we pride ourselves on being among the best when it comes to giving you financial advice personally tailored to YOUR situation. We can spot weaknesses, recommend improvements, and capitalise on strengths.

This process will often involve the development and implementation of Key Performance Indicators to hit performance and growth objectives, along providing forecasts and budgets to help your organisation gain traction.

Understandable Information at Your Fingertips

As your organisation grows, the data collected becomes exponentially important. The basic financial reports generated by accounting software will only show you a part of the picture. They will not explain where your business currently stands and the future for your organisation.

An outsourced CFO at R T Accounting & Taxation Services will tailor the reports to provide key insights to help you succeed. We can translate in-depth financial data into commonly understandable information you can use to make informed decisions to help your organisation grow and expand.

Financial Accountability

Financial complexity increases exponentially as your organisation grows. Nevertheless, your business needs to maintain internal controls to ensure compliance, accuracy, and data security. At R T Accounting & Taxation Services, one of our employees has firsthand experience as an internal controls officer at a multinational aerospace manufacturing firm. We can use this experience to help you implement similar controls to your business if that is what you require.

We ensure that you have the checks and balances to provide independent oversight over in-house operations to deter fraud away from your business.

If there is no control’s function, many organisations have struggled to get out of first gear as it is almost impossible to secure capital as your business grows. This information is also important during mergers and acquisitions and when reporting to potential investors and shareholders.

First-Class Knowledge & Service

At R T Accounting & Taxation Services, we are dedicated to the success of your company and are readily available beyond the tradition hours. You will not need to go through an extensive hiring process or pay a huge salary. You can immediately hit the ground running with a qualified and experienced CFO with deep industry knowledge immediately.

The experienced CFOs at R T Accounting & Taxation Services have a proven financial background, strong qualifications, and glowing testimonials. We work collaboratively with your business and its partners to provide a truly first-class experience.

If you are interested in exploring our outsourced CFO Services, contact us for a free consultation. Let us help you grow your business and succeed.

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Benefits of Outsourcing Accounting Services

Benefits of Outsourcing Accounting Services

Many start-ups begin in the unique position where they begin by entering a large market with a product or service. Which is demanded by an array of customers. Potentially, you could be breaking into a unique niche where you will be dominant in your industry. Or you may have a good service that offers a solution or benefits for a long-standing problem that your target market has.

During this time, it is imperative that you concentrate on building your customer base, filling orders in a timely manner, and addressing customer concerns. Essentially, this time should be used to put the customer first! The accounting and taxation aspects of your organisation are often too demanding and time-consuming to deal with, with no real value being added to your product or service, or you may not be mathematically and financially savvy to handle your own accounting and taxation preparation and lodgement. For start-ups who are dealing with these unique issues, outsourcing your accounting and taxation services to a firm like R T Accounting & Taxation Services, uniquely located within 10 minutes from the Sydney CBD may be the perfect solution.

Benefits of Outsourcing Accounting Departments

The use of an outsourced Certified Practicing Accountant (CPA) firm has a vast array of benefits for start-ups and small businesses. During the early stage of your start-up, often, you will not be in a position that hiring an in-house team of accounting experts would be beneficial for your company to progress in your desired industry. At R T Accounting & Taxation Services, you are getting your local accounting, tax & payroll experts best equipped to help you with your specific operations when you need them. 

Operational Efficiency

You need your employees to work toward selling your services or products, not focusing their time on non-value adding functions such as office tasks and administrative tasks. With R T Accounting & Taxation Services taking care of your day-to-day accounting function, your employees should be able to put a hundred percent into the organisation to help you build your company and increase profits.

Cost Savings

For you to employ one CPA member to be a part of your team, they will often require a six-figure salary, annual leave, sick leave, or even accounting training if they are not fully qualified yet to entice them to work for you. 

With R T Accounting & Taxation Services, those costs are scrapped for a one-off fee calculated using the size and capacity of your business. We guarantee that we will come at a cheaper price than for you to hire your own in-house accounting team.

On Demand Access to Experts & Technology

With R T Accounting & Taxation Services, you have access to a combined fifteen years of experience and knowledge in the accounting and taxation field. Financial and tax reporting compliance is changing on a yearly basis, and as a result, you will want to ensure that your reporting obligations are up to date and lodged in a timely manner when required. We pride ourselves on staying on top of changing regulations to benefit you, our client, so you can focus on enhancing your business, and we can look after your compliance reporting.

You will also gain access to our special accounting software rates with our partners, MYOB & Xero, which you can access any time of day to keep a track of your financial, payroll and tax information to ensure accurate accounting work.

Scaling Accounting Easily

R T Accounting & Taxation Services have the amount of availability to scale your services significantly without any lag. For example, if your accounting and taxation tasks are too much for one employee to handle, this is no problem as we have our staff members ready to handle any challenge you throw at us. This removes the need to go through a rigorous recruitment process, not wasting precious time on a non-value-adding process, allowing you to focus on what matters most – the customer.

When you Should Consider Outsourcing your Accounting & Bookkeeping

From our experience working with various businesses located around Australia, outsourcing the accounting & taxation function tend to work best when.

  • A business does not require someone to work full time but needs a person with more skills than an average office manager, or receptionist can provide.
  • A company of any size cannot find a full-time employee with the required capabilities at an affordable cost to your organisation. 
  • A rapidly expanding company, looking for opportunities to scale their accounting & finance functions at any time.
  • Temporary extra services are required at certain times in the year, extra time required for Business Activity Statement lodgement and annual tax lodgement at certain times in the year,

However, it will be important to note that even if you do choose to take R T Accounting & Taxation Services upon our outsourcing services, a skilled and qualified person (generally the director) will still need to be actively involved in the process while approving invoices, making deposits, reviewing timesheets for employees, etc.

Get in Touch With us!

We are conveniently located just 10 minutes from the Sydney CBD in Kingsford. If you are intrigued on how to become our client and gain access to our services, please get in contact with us to help you focus on what truly matters – your customer.

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When Should Small Businesses Lodge Tax Returns?

Managing your business tax obligations is one of the most daunting and important responsibilities when starting a new business. The piece de resistance of tax obligations is lodging your tax return at the end of every financial year. However, what most businesses do not realise is how and when you can lodge your tax returns. It is dependant on the structures of your organisation. Below is a guide on when to lodge tax returns for each of the four main business structures. They are Sole Trader, Company, Partnership, Trust.

Sole Trader

If you are a sole trader, you just need to file your individual tax return. Which covers all your personal and business income. You can lodge either by yourself through the ATO myGov portal or through R T Accounting & Taxation Services.

If you lodge yourself then your return is due by 31st October. However, if you lodge through R T Accounting & Taxation Services and are on our client list before 31st October. We will tell you when your tax return and tax payments are due. Often it is due by end of March the following year. 

As a sole trader, you are required to fill out a separate section of the individual tax return. And professional items schedule for individuals. Fear not if you are on our registered agent list as well will sort that out for you.

Partnerships

If you are involved in a partnership you are required to lodge a partnership tax return through the ATO myGov portal or through R T Accounting & Taxation Services.

So, if lodging yourself the lodgement date is 31st October. If you are lodging through R T Accounting & Taxation Services, we will tell you what date we need to lodge the tax return. Which is often not before March the following year.

It is important to note that the partnership itself does not pay tax on the income it receives. But shows how much each partner to list as income they received on their personal individual tax return. If you have a partnership, you should not prepare and lodge your individual tax return. Until the partnership has completed its tax return.

Company

If you are a director of a company, you are required to lodge a company tax return through the ATO myGov portal or through R T Accounting & Taxation Services

The lodgement date for a company is generally the end of February, however it is beneficial to check with your registered tax agent as to the specific date your company tax return is due as it changes from business to business. A company’s income is separate to personal income so it is important to separate the two, as well as meaning you will have to submit 2 tax returns come year end (individual and company).

Please not if you do not lodge your previous financial year tax returns on time, the company tax return is due by 31st October.

Trusts

If you are involved in a trust you are required to lodge a trust tax return through the ATO myGov portal or through R T Accounting & Taxation Services. 

And, if lodging yourself the lodgement date is 31st October. If you are lodging through R T Accounting & Taxation Services, we will tell you what date we need to lodge the tax return by, which is often not before March the following year.

It is important to note that the trust itself generally does not pay tax on income it receives but shows how much each beneficiary to list as income they received on their personal individual tax return. If you are part of a trust, you should not prepare and lodge your individual tax return until the trust has completed its tax return.

Get in Contact with Us!

We are conveniently located just 10 minutes from the Sydney CBD in Kingsford. If you are intrigued about how to become our client and gain access to our special perks, please get in contact with us to help you get what you deserve.

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Tax Returns

When Are Tax Returns Due for Individuals in Australia?

As with most queries tax returns related in Australia, the answer depends on several factors, but here are a few key things to keep in mind for the 2021 tax year which ends on 30th June 2021.

If you are lodging directly with ATO

If you intend on preparing your own tax return through the Electronic Tax Pack in myGov, your return is due to be lodged on 31st October, or given 31st October falls on a Sunday this year, 1st November!

So, if you correctly file your own tax return, and the ATO does not raise any queries, you will likely receive your Notice of Assessment over the next 28 working days after the tax return has been lodged. And, if you are due a tax refund, it will hit your bank account around the same time as the Notice of Assessment. On the contrary, if you have a tax payable, the Notice of Assessment will tell you the payment date along with payment details for an efficient transaction. This could change based on several things, but generally, it should be paid within 4 weeks after the Notice of Assessment is issued.

If you lodge through R T Accounting & Taxation Services (Registered Tax Agent)

If your Accountant, who is a registered tax agent is lodging your tax return on your behalf, if you have a good history with the ATO, you could receive a large extension on both your due date for lodgement and payment compared to those lodging by themselves. R T Accounting & Taxation Services have a very good lodgement history with the ATO and unlock the full range of extensions for our current clients as well as any future clients.

Most individual tax returns will be due around mid-May 2022, which is close to 11 months after 30th June 2021. However, some individual tax returns will be due at the end of March 2022 as those who often have a tax payable at the end of the year as opposed to a refund will be among those affected. This date usually only applies to those who have made a substantial income from sole trader, investment, or business income where tax does not periodically tax out during the year as it would for those on salaries and wages.

Regarding refunds and payments:
  • Tax returns tend to be processed within 5 to 7 days of lodgement by registered tax agents. And usually, the refund will be received within that time frame also should there not be any additional ATO queries.
  • If you have a tax payable, it will rarely be due prior to February 2022. And more often than not it is some time in the first week of June 2022.

So, there are some definite benefits to have a registered tax agent lodge a tax return on your behalf. It would primarily be beneficial to those with tax payables. As they essentially have a year from financial year-end to pay the liability. This can help with cash flow for your business or yourself.

If you have a poor lodgement history?

If you have a poor lodgement history with the ATO, your return will be due 31st October 2021. Regardless of if you lodge through a registered tax agent or lodge it yourself. Your tax payable, if applicable, will also be due that same day also.

Need an Extension?

If you would like to qualify for an extension to lodge and/or pay, let alone mentioning. Ensuring that you receive any deductions you are entitled to. As well as lodging correctly with a relatively lower risk of ATO queries. You will need to be on our client list before 31st October 2021. If you have a historically poor lodgement history and this return is due by 31st October. We can help lodge your tax return before this date. So in the 2022 financial year, you qualify for the lodgement extensions.

Get in Contact with Us!

We are conveniently located just 10 minutes from the Sydney CBD in Kingsford. If you are intrigued about how to become our client and gain access to our special perks. Please get in contact with us to help you get what you deserve.

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Payroll Company

What Does a Payroll Company Do for Businesses?

What is Payroll Services?

Payroll services are the utilization of a third-party service provider to manage the accounting and administrative duties of hiring employees. The concept is simple enough. If an overseas company needs assistance in managing its payroll, then it can simply outsource its responsibilities to a payroll service provider located at any point of time within the globe. It’s important to note here that payroll services aren’t just that, and don’t provide a centralized local employer for the offshore company to manage. Rather, they are third-party companies that have been licensed by countries to offer payroll services.

What Does a Payroll Services Provider Company Do?

When you hire payroll services, you make them responsible for:

  • Submitting your tax returns
  • Filing employee payslips
  • Processing tax refunds
  • Collecting federal employer withholdings.

They also handle making temporary employee files and preparing temporary pay slips and certificates. In addition, they can also provide assistance with many other tasks including:

  • Estate asset taxes
  • Bankruptcies
  • Lottery payments
  • Child support payments
  • Immigration filings and proceedings.

If the offshore company outsources part or all of these services, then you can expect to see a significant drop in your annual tax return due diligence requirements. That being said, if your company relies on an in-house payroll department, then outsourcing will likely have no effect on your employee compensation obligations.

Financial & Administrative Support

One common question that arises is “What is a payroll service?” Basically, payroll service is an organization that provides financial and administrative support to businesses of all sizes. Many times, they are referred to as CPA or Chartered Professional Employers. Payroll service offers different services to different businesses, depending on the size and nature of their business. For instance, if your company has a few locally based employees who are responsible for daily tasks such as data entry, typing, and billing, then you would not need a payroll services organization to provide such support. However, if you have several technicians who are responsible for data entry, typing, billing, and other clerical tasks, then you will want to enlist the help of a payroll service.

Benefits of Outsourcing Payroll Services for Your Business

Payroll services offer human resources professionals support in a number of ways. First, payroll services offer benefits such as: employee benefit plans, health insurance, life insurance, dental insurance, accident insurance, disability insurance, and legal costs. These are typically the most common benefits, but payroll services offer more than just these basic benefits. Additionally, the majority of payroll services offer financial benefits such as: cash advance loans, non-cash employee bonuses, 401(k) plans, life coach training, and business growth plans. The list goes on from there and reflects the wide array of employee services that are offered.

  1. In addition to the benefits listed above, many payroll services include
  2. direct deposits into a business’s accounts.
  3. This is a convenient way for employees to receive their paychecks directly before they are due.
  4. This eliminates the need to rely on bank checks or pay stubs and eliminates the hassle of paper processing.
  5. Direct deposits not only save time for payroll processors but also helps reduce errors. And also fraudulent activities that can occur with incomplete or non-disposable paper-based processes.
  6. Payroll processors use direct deposits to keep track of employees’ paycheck information.

What If You Don’t Have a Payroll System

In the absence of this crucial tool, an errant employee would be able to make money that does not belong to them. And use it for personal expenses. Another service that many payroll services offer includes electronic paycheques and electronic payments. An employee’s payslip does not have room for deductions; however, electronic payments go to employees via the internet. Most payroll companies allow employees to pay themselves by using their credit card, debit card, or payroll check card online. This eliminates the need to print out payslips or to manually process payroll taxes at the end of the year. Again, less time is saved by eliminating the need for paper processing and eliminating fraud that often occurs when checks are processed incorrectly.

Paperless Payroll Processing System

Many payroll services also offer a paperless processing system. The processing software collects and stores data regarding each employee’s gross income. This information is then processed using computer databases, taking into account deductions and credits and applying wage rates. Once the processing is complete, each employee’s wages and expenses are debited from their paycheck and electronically filed through the payroll service provider’s secure server. The entire process is then uploaded onto the company’s main server, where it is available for use by any authorized personnel who access the system.

RT Taxation & Accounting; Best Payroll Service Company in Eastern Suburb

RT Taxation can provide a variety of payroll services. However, not all payroll systems are created equal. Many providers are able to offer some, but not all of the features that you may require. Therefore, before you sign a contract with a payroll services provider, it’s necessary to evaluate your own business needs in order to determine which features you will need and which you may be able to do without.

Conclusion

Choosing the right payroll services will ensure that you are able to accurately calculate your employees’ weekly or monthly income and expenses, and will help your business stay compliant with your state’s and local governments.

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Taxation Management Services

7 Reasons to Hire a Taxation Management Services

What is Taxation Management?

Taxation management services are the most effective ways to increase efficiency and reduce costs. A good taxation department is one that can work effectively to make the process of tax collection easier for everyone. Are you a taxpayer and having problems with tax collections? You may need assistance from an expert in tax administration. You should hire a professional service that can deal with your tax problems efficiently. There are many different issues that can come up when you are dealing with tax. And you should be able to make use of the best services. To get the best results from your tax administration problems.

How Taxation Management Services Can Help You?

Taxation management services can help you in the following ways:

Improve your tax Filing efficiency and accuracy:

When you use an expert in taxation services, you will be assured that your tax data will be filed accurately. And there will be no compromise. The company will have professionals who are knowledgeable about tax laws. And tax collection methods and will therefore deal with your data very carefully.

Quicker processing of returns:

This is an essential service that can really help when you have tax collection problems. Because it means you will be getting your taxes approved before the deadlines. In this way, you will be able to save a lot of time and money. Professional services in tax administration will ensure that your tax returns are processed as quickly as possible. Sometimes even before you receive them from the tax office.

Simplified tax preparation procedures

It is often difficult for people who have very complicated tax situations to prepare their tax returns. If you are faced with this kind of tax problem, you should seek tax administration help. Because you will be provided with simplified procedures that can make the entire tax process much simpler. If you make use of these kinds of management services, you can handle your tax collection problems with ease and confidence. You can also expect fast processing of your tax returns, because these professionals deal with a large number of clients.

Simplified Tax Payment Procedures

There are many people who have problems with preparing their tax payments because they are not very experienced with tax collection matters. If you need help with handling the payment, you should seek tax administration help so that you do not have to worry about any complex tax issues. If you hire a professional, you can rest assured that you will always be able to make the best out of your tax payments because these individuals have experience with tax payment procedures.

7 Reasons to Hire a Taxation Management Services

Increased Efficiency

If you hire tax administration personnel to deal with your tax collection, you can expect to get quick and efficient results. These professionals can provide you with accurate information regarding tax collection. They also have the expertise to deal with tax payment issues, so you can ensure that you pay your tax on time without having to delay the payment in order to deal with tax-related problems.

Reduce Cost

Increased efficiency can also mean reduced costs. Hiring tax collection professionals to manage your tax administration can actually help you save money. Since these individuals have a better understanding of tax collection processes.

Minimize the Errors

They will be able to minimize errors and misspelled items in your tax files, which can lead to higher tax fees. In most cases, these management services can also help you get deductions for your tax payments, thereby reducing your overall tax cost. It is for this reason that you should always try to hire these tax experts when you need to handle your tax collection needs.

Conclusion

There are many other reasons why you should always hire tax administration professionals to deal with your tax affairs. Apart from these, hiring an experienced individual to handle your taxes can also give you peace of mind knowing that you are managing your finances in the right way. You can also rest assured that your tax-related issues will be handled professionally and efficiently, so you can concentrate on other things. If you want to get the best tax services and professional management solutions in Australuia, you should definitely hire a tax consulting firm for all your tax administration needs.

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Virtual CFO Services

Virtual CFO Services by R T Accounting & Taxation

The events of the past year have made many small businesses reassess the structural operations their businesses run in; organisations are looking for ways to run as lean as possible. There is a heightened measure to cut staff and outsource where feasible. This has attended to the trend of hiring a Virtual CFO service over an outdated in-house full-time CFO.

Below, we will go in-depth as to what working with a virtual CFO is like, as well as, providing you with some resources for the next step in your decision-making process.

What Virtual CFO Services do R T Accounting & Taxation Offer?

  • A CFO identifies and can manage bookkeeping to produce reliable data and interpret the financials produced. This can help provide a deeper insight into how your business can be run as well as providing insight to help guide you toward your stated goals. The result is that you know exactly where, when, and how to focus your team and inform your stakeholders to achieve those goals.
  • A CFO can help you guide your business in the right direction. As Accountants, we have come across many clients in an array of industries. We have a history of dealing with different sectors and people. You will have a team member who knows your business and can help hold you accountable as you reach your goals.
  • An experienced virtual CFO can help you gain a competitive advantage over your competitors. If your business is struggling, there is a good chance your competitors are struggling as well. We can help you cut waste, manage cash flows efficiently and create opportunities for growth. With our help, you can be able to be ahead of your competitors.

Furthermore, R T Accounting & Taxation can offer the following services within our virtual CFO package:

  • Identification of KPI’s and mapped out reporting to monitor.
  • Production and interpretation of financial results on demand
  • Management of annual budgeting as well as develop of annual strategy.
  • Cash flow management and planning
  • Strategic planning
  • Optimised workflow
  • Transaction entry & classification (recall the adage)
  • Accounts receivable
  • Accounts payable
  • Payment calculations and processing
  • Bank account reconciliation
  • Financial control implementation and oversight

Details of a Virtual CFO Engagement

Onboarding

Hiring a virtual CFO is a simple task with our guidance. We can get our systems in place and everyone up to speed within the first month of being with your company. Common activities often take place in this period:

  • Set long new term and short-term goals specific to your business. We will then help formulate a plan to achieve those goals. Also, we can then inform the technology, team, and process to achieve your desires.
  • We can help formulate reports which match the way you interpret your data. Depending on the person behind the business, we can present reports in a visual method to help you gain the best understanding of charts and graphs. We can also retain the tradition report designs through numerical data only. We will be able to see items which can be improved or enhanced to keep an eye on and evolve those as your business challenges and opportunities to chase.
  • Technology recommendations through cloud-based Accounting Software’s.
  • Reworking your balance sheet as far too often businesses do not separate their business transactions and their personal transactions. This often leads to the business having a large director’s loan amount and posting losses when they are not. 
  • Enhancing financial processes through our knowledge of financial processes in various sectors over the years.

Ongoing Deliverables

After onboarding is completed and you are happy to proceed with our plans, we can deliver detailed and comprehensive financial reporting. We are happy to keep this a strictly virtual CFO service utilising Zoom or Microsoft Teams to regularly catch up. However, we understand that you would like to have face to face meetings which can easily be arranged as well. 

The data itself can come from Accounting software’s such as Xero or MYOB, which can produce easily readable reports.

Get in Touch with us!

If you are struggling with the day-to-day financial running of your organisation, get in touch with your local outsourced CFO at R T Accounting & Taxation Services to optimise and grow your company to reach the next level.

Affordable Taxation Services

Tax Returns

Conveniently located in the Eastern Suburbs of Sydney, we help Individuals, Sole Traders, Partnerships, Companies, Trusts, and Self-Managed Super Funds minimise their tax returns obligations and put them on a path to take advantage of future tax savings opportunities through our taxation services.

As a valued client, we offer personalised services, expert advice, and one-on-one attention. Work with knowledgeable Certified Practicing Accountants who understand complex tax laws, the deductions your industry can make, investments, and real-time tax reduction strategies. Gain confidence in knowing that your tax returns will be completed correctly every time.

Business Tax & Advisory

R T Accounting & Taxation has worked with all types of businesses with different challenges.

Our business advisors can provide the expertise and advice you need to make the right business decisions. We work with everyone from start-ups to well established businesses looking to expand their operations, improve business efficiencies and increase profitability.

We can help you:

  • Structure your business to maximise tax efficiency and increase net profits.
  • Tailor strategies and finance facilities to expand your business.
  • Regularly review business performance.
  • Identify and manage business risk including the loss of key personnel.
  • Manage business cash flow to drive your business forward.
  • Benchmark your business against other businesses in your industry.
  • Plan for business sale or succession.

Self-Managed Super Funds

The team at R T Accounting & Taxation Services will provide you with all the assistance you need to get your SMSF up and running with minimal fuss. Our SMSF Administration Package includes:

  • Tax Return
  • Year-Round Support
  • Fund Accounting and financial statements
  • Online portal
  • Coordination of annual audit via our in house Registered SMSF Auditor
  • Fund minutes and resolutions
  • Corporate secretarial services for your SMSF Trustee company where applicable

Get in Touch with Us

With June 30 just around the corner, you will want to get your tax affairs sorted for your own peace of mind. Do not be afraid to contact us at R T Accounting & Taxation Services to see how we can help you grow.

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Small Business Tax Planning Strategies

Small Business Tax Planning Strategies

The end of the 2021 tax year will be upon us in a months’ time, so it is important to review your business strategies to help you maximise your returns and minimise your tax payable come June 30th. Now is the perfect time to review your expected taxable income (assessable income less allowable deductions) for the current financial year 2020-21, as well as your projected taxable income for 2021-22, as these two key figures will help form a base of your tax planning strategy.

Here are a few tips if you are expected to have a higher income in the current financial year, compared to the next financial year projections.

Get in contact with your local Accountant at R T Accounting & Taxation Services to consider the following steps:
  • Prepay some of your 2021-22 expenses including.
    • Rent
    • Insurance
    • Business Subscriptions to professional associations before June 30th, 2021 as up to twelve months of the following year’s expenses can be deducted in the current tax planning year provided you pay the cost upfront.
  • The instant asset write off of up to $150,000 has been heavily publicised until now and has been extended to June 30th, 2021 provided the asset was bought and first held ready for use prior to this date, so if you need to buy a new car for the business, now would be the time to do so. Be wary, however, as the moment you use a company car for personal use, this invokes a fringe benefit payable by the company, so it is best to contact your accountant at R T Accounting & Taxation Services to see whether this is right for your business.
  • Reviewing and perhaps even postponing some of your client invoicing for the current tax planning year so the income is then reported in the 2022 tax year.
  • Topping up your voluntary superannuation contributions and making the payment prior to June 30th, 2021.
  • This item is not done nearly enough by many small businesses, but it is very important to constantly review your trade debtors and write off any unrecoverable debts as you do not want to be paying tax on income you will not receive.
  • If you are in the maiden year of your business, deducting any start-up expenses you incurred, such as obtaining legal and/or financial advice on your business structure along with any fees relating to the setup and establishment of your business will reduce your tax payable for the 2020-21 tax year.
If you are expecting to have a higher income in the 2021-22 tax year, you should get in contact with us to discuss:
  • Bring forward any client invoices into the 2020-21 tax year for work that will be carried out in the 2021-22 tax year. Having clients pay your invoices by June 30, 2021 will help reduce your taxable income in the 2021-22 tax year where you are expected to have a higher assessable income.
  • Paying your expenses on their due date as opposed to paying them early and getting the deduction in the tax year where your assessable income is expected to be low anyway.
  • Postponing the purchase of any assets you may require in the 2020-21 tax year into the 2021-22 tax year. However, it is important to note that instant asset write off rules can change in the 2021-22 tax year so get in tough with us to help guide you through the process.

The most important tip we can give you is that you should avoid spending on business assets for the pure sake of claiming the tax deduction. In most cases you will be paying $1, to save 27.5 cents in tax (based on the small business tax rate). It is simply not worth buying these items as it means less net money in your pocket. Everything you purchase for the business should have a purpose in enhancing your business to be the best it can be.

Additional Tips for Small Businesses

GST Cash Accounting

Ask yourself this, why and how should I pay GST on income I have not yet received? If you do not know the answer to that question and are on the accruals-based GST accounting method, its time to get in contact with R T Accounting & Taxation Services to change your accounting for GGST to cash basis rather than accruals. GST Cash Accounting is also much better for your overall cash flow.

Instant Asset Write-Off Vs Depreciation

The whole idea of starting up a business is to grow and make more income over time. You could take full advantage of the Government’s instant asset write-off scheme mentioned earlier and claim the deduction in the current tax year, potentially reducing your tax planning significantly, or you can choose to depreciate the asset over its useful life and claim a portion of the asset over several years. What we are doing is reducing your taxable income by a smaller amount over the years as opposed to taking the full deduction in one year. This is very beneficial for those small businesses in high-growth industries.

Is Your Information Correct & Up to date?

Having the most accurate and current information is another key aspect of tax planning that can help you minimise your tax payable as well as help us, your accountant to help you make more informed tax decisions. This can include:

  • Ensuring the logbooks for your company vehicles are correct and up to date. You will need to start a new logbook if your current one is more than five years old anyway. It is often best to create a new logbook every year to get the true cost of operating your business vehicle. There are many free apps that you can use to track mileage of your vehicles.
  • Ensure you do your stock take as of 30th June 2021 is your business trades with stock.
  • Accounting for private use on business assets in your GST returns. You can not claim GST on private expenses, so if you use your car for 20% private use for example, you will need to adjust your GST on expenses component accordingly to factor in the personal use. .

Been Affected By COVID-19?

R T Accounting & Taxation Services are here to help you in these tough times as we can help liase with the ATO to:

  • Give you extra time to pay your debt or lodge tax forms such as activity statements.
  • Help re-construct tax records that are lost or damaged.
  • Setting up payment arrangements tailored to your individual circumstances including an interest-free period.
  • Remitting penalties or interest charged during the time where you have been affected.
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Payroll services in Australia

Getting the Most Out of Your Accounting Profession With Payroll Services in Australia

The payroll service industry is an important sector of the accounting industry. The eastern suburbs of Sydney is home to more businesses than almost anywhere else on the planet. And payroll services in Australia are a big business. Business owners hire payroll services when they are unable to meet their payroll responsibilities themselves.

By using payroll service companies, business owners can save a lot of time by avoiding extra paperwork. Which is an extra expense for them. They can also save money by using a payroll services provider who is based closer to the places where they make their products. Where they have their salespeople stationed, and they can offer payroll tax services to their clients. Many people have not heard of payroll tax services in Australia. But this is one industry that has been growing dramatically over the past twenty-five years.

Payroll Services in Australia

Most of the time, payroll services in Australia are in the city areas. Payrolls are usually done at the local office of the business. Although this is sometimes not feasible because of the location or accessibility. The service provider will generally deliver the payroll taxes and other information to the business location on the same day. Although some companies have their payroll department complete the process the next business day. This gives the business owner more time to concentrate on other aspects of his business.

Business owners have many options when it comes to selecting their payroll services providers. These options depend on the size and the nature of the business, as well as the available employee base. The larger the business, the more payroll services providers that are available to them.

Variations of Payroll Services

The services provided by payroll services providers vary. Some business owners have opted for an online solution, which makes it easier for them to complete the payroll and tax obligations of their employees. Online payroll services allow business owners to maintain their books without affecting their workforce and to submit electronically the information they need.

Other business owners, who have a large customer base, have elected to utilize a human resource payroll service instead. This payroll service is a company that will actually call the employees and perform the payroll duties for them. When a business owner needs a payroll service, it is important that they consider this option, as this method has a lot of advantages, including being cost-effective.

Outsource Payroll Services Benefits

The human resource aspect of a payroll service is not limited to the payroll aspect of things. A benefit program, for instance, is a wonderful benefit that most employees would appreciate. The benefits program helps employees to be more engaged and to actually enjoy working for a company. The benefits program might also come with a small payroll and various benefits packages, which the employee can choose from depending on their own preferences. It is also possible to select a benefit service that matches the business culture of the company. And the way employees are treated.

Payroll Management Solutions

Most payroll services providers in the Eastern Suburbs provide online payroll management solutions. This is accessible through a secure website. Employees will be able to view their accounts and manage them at any time of the day or night, even from their mobile devices. Online payroll services providers usually have an easy-to-use interface that will allow payroll department managers to handle all of the pertinent areas of the company. The software that is provided by these companies can even allow the managers to set up payroll reports. And generate checks and deposits right from their computer.

Conclusion

When using a payroll service, it is important to make sure that the service is reputable. No matter how wonderful the benefits of payroll service are for your business, if the company is not reputable then the benefits you receive will pale in comparison to the time and stress that you have to spend looking into the operation of the payroll. The Eastern Suburbs is home to many payroll service providers. Businesses can easily find a payroll service to match their needs and can also select one that will work with their staff.

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Outsourcing Payroll Services

What Are the Advantages of Outsourcing Payroll Services?

Outsourcing payroll is a growing trend for many companies in developed countries like Australia and the United States. This is because the advantages of outsourcing payroll services are huge. Payroll can be a time-consuming and costly process. In addition, companies are now more concerned about controlling spending and trimming payroll costs, especially since a downturn in the global economy has made it difficult for companies to balance their budgets. As such, many payroll outsourcing services have mushroomed on the internet and offshore. While this type of payroll outsourcing seems appealing, many companies have doubts and hesitate to outsource payroll.

Payroll Outsourcing Services

A company that is considering hiring payroll outsourcing services should first verify whether the firm is reliable or not. To do this, they should check if the provider has strong credentials; check if the company can deliver payroll services in the countries where they are operating; check the experience of the payroll outsourcing services staff in handling payrolls; find out whether the company adheres to payroll outsourcing services legislation; find out if the company adheres to payroll outsourcing services company guidelines. Furthermore, companies should also consider the additional costs involved when outsourcing payroll services. These include the training of payroll outsourcing services personnel, the cost of software used to manage payrolls, the cost of payroll taxes, plus other possible charges like payroll outsourcing services outsourcing fees, processing charges, etc.

Since it is easy to outsource payroll services, many organizations prefer to outsource payroll from an external source. This increases efficiency as the payroll outsourcing services provider will take care of the payroll function while the company focuses on other core business functions. However, there are certain disadvantages associated with payroll outsourcing services. These include the following:

Advantages of Payroll Outsourcing

The advantages associated with payroll outsourcing services are many.

Help to Avoid the Costs

For one, payroll outsourcing services help to avoid the cost of payroll administration. The payroll outsourcing service provider takes care of all the payroll functions including recording of hours, making payroll reports, and collecting employee payrolls.

Ensure the Record Keeping

In addition, payroll outsourcing services help to ensure that payroll record keeping comply with legal requirements such as H&R Block bookkeeping standards and IRS regulations. Consequently.

Improve the Cash Flow

payroll outsourcing services also helps to improve cash flow and profits since a cashless employee payroll accounting system is a cost-effective payroll record keeping technique.

Comply Data Security Policy

In case payroll outsourcing services are chosen, an organization must ensure that the payroll data security policy is complied with. This is necessary because documents that are generated using the payroll data entry software may contain sensitive corporate information. For instance, if payroll data shows some client payment, the payroll data entry software may pick this up and pass it to the client. Thereby compromising the confidentiality of the client’s business data. Thus, if data security is not following at all, the business may lose its credibility. To prevent unauthorized access to payroll data, the outsourced payroll services provider implements various security measures. Ranging from using passwords to using encrypted data storage servers.

No Need to Maintain a Payroll System

Other advantages of using payroll outsourcing services are that they do not need to maintain a payroll system. This saves payroll department expenditures. For example, when payrolls are processed in-house, payroll clerks need to buy bookkeeping software, paper, the payroll supplies and many more. These payrolls are then processed using manual processes that consume more time and generate more paper. However, payroll outsourcing services require just minimal operating costs since the outsourced payroll solution provider can pay a leasing company for usage of its technology. Furthermore, the payroll processing solution provider has full control over the payroll data security issue.

Reduce Payroll Preparation Time

Outsourcing payroll outsourcing services are gaining popularity because of the many advantages it provides to businesses. Firstly, it reduces payroll preparation time as the payroll outsourcing services provider can provide pre-programmed paychecks.

Fast Processing of Paychecks

The payroll outsourcing services provider enables fast processing of paychecks as it eliminates the need to cut the payroll data into various pieces. In addition, the payroll outsourcing services provider can also set up an electronic timesheet system that eliminates the tedious calculations of manually computing the paychecks’ hourly wages. Lastly, the payroll outsourcing services can provide the payroll solutions with data security measures such as encryption of the data to prevent theft of the payroll data.

Things to consider Before Hiring a Payroll Service Provider Company

Before choosing a payroll outsourcing services service provider, business owners have to carefully choose which service provider to contract. It is vital to look for several factors that will determine the suitability of the service provider to provide your payroll needs. For instance, a service provider that can process a large number of paychecks in a short period of time, particularly payrolls coming in daily, should be chosen. Also, it is essential to determine the number of payroll outsourcing services a service provider can provide.

RT Taxation & Accounting: The Best Payroll Servicing Provider Company in Australia

RT Taxation is the best accounting and taxation services provider company in the eastern suburbs of Sydney. We have been working professionally for the last 10 years. Also, we have a very long experience and the best taxation professionals in Sydney, Our firm is reputed and well known in Sydney. We have been helping so many businesses to solve the accounting, payroll & taxation issues of their company.

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