I have an ABN but I’m not sure if I need to lodge a Business Activity Statement (BAS) return?
Anyone running a business requires an Australian Business Number regardless of their expected turnover. You only need to lodge a BAS if you are registered for GST. You must register for GST when your turnover reaches $75,000 per year however you can choose to register even if your turnover is less than $75,000.
I want to set up my own business but I don’t know where to start.
The first thing you should do is come and talk to one of our team who can help navigate the path to setting up and running a successful business. We can help you:
- Work out whether the business is likely to be profitable
- Decide what entity structure would be the most suitable for tax and asset protection
- Run through the numerous Government registrations required
- Suggest the most suitable bookkeeping process ranging from a cloud based computer program to a Excel spreadsheet
- Outline your income tax and GST lodgement obligations
My tax returns are overdue. Do I just leave them and hope the Tax Office doesn’t realise?
No. In our experience the Tax Office will find out you have unlodged returns eventually. The longer you leave it the more likely you will be charged late lodgement penalties. In some cases the Tax Office will estimate your income on the unlodged returns and issue default assessments which could result in you paying much more tax than if you lodged the returns yourself.
‘Cloud Accounting’. Can you explain what this is?
Cloud Accounting is the term given to web-based accounting software that allows real time data and reporting to be accessible to multiple users simultaneously and without the need to back up your files. Typically, as the main user, your business would allow your accountant to access to your cloud accounting to review and help troubleshoot. The real time accounts with live bank feeds allow financial statements to be easily provided to banks and finance companies for finance applications. Read more about how OBT can help at https://obtfinancialgroup.com.au/cloud-accounting/.
My employer hasn’t sent me my PAYG Payment summary. Are you still able to prepare my tax return?
Yes. There are a number of ways we can find your wages information including via our tax agent portal or, in some cases, we are able to prepare a statutory declaration based on the amount(s) you have received.
Our business uses a computer software program to prepare our accounts. Does it have to be on a specific program for you to do our tax?
The staff at OBT are trained to use many different accounting packages such as MYOB, Quickbooks, Xero, Phoenix and Cashflow Manager to name a few.
We run a small family business and we may be too small for you to want to help us.
OBT can help regardless of your business size. There is no upper and lower limit to the size of our clients’ businesses. Each business is treated with professionalism, care and technical expertise no matter how big or small.
Our business will be taken over by our children when we retire, but they can’t afford to pay us full value. Can we still do this and what are our options?
Passing the business or farm onto the next generation is an involved process that requires a lot of planning. It is not unrealistic for the process to take several years. To successfully manage the process we:
- Meet with all parties directly and indirectly impacted by the changeover
- Work out an estimated value of the assets being transferred
- Identify the various stages of handover
- Discuss funding options
- Address cash shortfalls for the retiring parties
There is a business we’d like to buy but we think they’re asking too much. How can we be sure?
OBT’s Business Advisors are experts in business valuations and can assist in determining a fair market price for the business helping ensure you buy and sell your business for the right price. We have a sophisticated valuation process that will drill down to measure key performance indicators and apply industry specific multipliers to calculate a sale or purchase price range.
Do I need to lodge a tax return if I only receive interest and dividends?
You may not need to lodge a full tax return if your taxable income is likely to be less than the tax-free threshold. You may only need to lodge a Franking Credits form in order to claim back the input.