Top 4 Accounting Tips by Karen Bates, Advantage Accounting

Karen Bates is the principal and director of Advantage Accounting Pty Ltd, an accounting practice in Lake Macquarie NSW which specialises in providing micro and small business owners with business advice and accounting and taxation solutions tailored to their needs. Today Karen shares with us her Top 4 Accounting tips. 

• Use the benefits of technology

There are many efficiencies to be gained from using cloud accounting applications, not least of which is the time to enter and reconcile transactions can be significantly reduced. By keeping your business records up to date, you can look at the current business trading position with ease, facilitating accurate and timely decisions to be made. In addition, cloud accounting applications can be complimented by using cloud applications for important business functions, like job management and stock control, for streamlined systems.

• Plan for the instant asset write off for asset purchases up to $20,000

Assets purchased up to $20,000 by small business qualify for an immediate tax deduction from 13 May 2015 to 30 June 2017. The assets in your small business pool can also be immediately deducted if the pool balance is less than $20,000. If your business currently has a very small asset pool balance, the purchase of an asset (eg a car) up to $33,000 ex GST before 30 June 2015 may see the depreciated value of the pool being less than $20,000 in 2016/17 and therefore the remaining pool value being immediately tax deductible in that year.

• Structuring your business structure

When choosing an entity in which to operate your business, consideration should be given to matters like taxation, risk, asset protection, complexity of the structure, introduction of new owners and exit plans. As your business grows and evolves, the business structure may need changing. It’s important to review your business structure regularly.

• Talk with your accountant when doing BIG things

When buying or selling a business, or property, your accountant can advise you on tax matters such as GST, capital gains tax and stamp duty and help you plan the transaction to minimise your overall costs.

To read client testimonials or get in touch with Karen go to www.advantacc.com.au, Karen would welcome your enquiry on your business.