Advice From Business Accountants Melbourne To Maximize Your Tax Return

Business accountants Melbourne can help you get the most out of your tax return in many ways. While most people would not want to sell shares that have fallen below their cost price, this is one way of cutting back on your capital gains tax. When you sell them at a loss this can be deducted from your gains thus reducing your tax. Business accountants Melbourne advise you to then use the money you made from the sale to purchase more promising shares. According to business accountants Melbourne it is important not to buy the same shares soon after selling them as the tax man will not allow the capital loss. Accountantmelbourneco.com.au point out that when you sell shares that have been owned for less than twelve months, you pay full CGT on the profit, but if you keep them for over a year this is reduced by 50%. By deferring the sale until after the end of June, the capital gains tax due will not have to be paid until the following year.

This can have a beneficial impact on your tax bill for the current year, according to accountants Melbourne. Accountants Melbourne advise this course of action particularly if your taxable income for the following year is expected to be less than the current year.

6 Critical Cash Flow Mistakes You Are Making Right Now

Helping other people with their record keeping has taught me one thing – people are making some serious mistakes when it comes to managing their cash flow. And with technology constantly changing, the mistakes are evolving. No matter how large or small the company, the mistakes are always the same. And with cash flow being the life blood of a business, you have to stay on top of things if you want your business to survive. As I have mentioned before, cash flow management is essential because it helps you:

  • Identify cash shortfalls
  • Provide a glimpse into your customer’s financial situation
  • Track towards your goals

And that’s why it’s so important to do everything you can to avoid these 6 critical cash flow mistake’s. Otherwise you will be just throwing you money away.

Mistake #1 – Uncontrolled spending

I cannot stress it enough – those debit and credit cards that are linked to your business account are nothing but the devil. No seriously having those cards makes your life easier when you are making actual legitimate business purchases. But when you forget that those are business funds and use them it for everything from groceries to family vacations, your bank account slowly disappears and your left trying to figure out how you are going to pay your business expenses.

Mistake #2 – Not enforcing a collections policy

Now I’m not saying you have to act like a debt collection agency, but you need to have some rules in place for collecting payments that aren’t received on time. Don’t be afraid to call these customers up and ask for your payment if they are more than 30 days behind. You have earned to the right to receive that payment. It’s up to you whether you collect it or not.

Mistake #3 – Jumping the gun on making payments

Your anxious to pay your vendors on time or a vendor just showed up at your door. You don’t want any issues because you may need their services again. Susie told you that you should have the payment today for the services you provided to her so you go ahead and write the check for those vendor bills. You never receive Susie’s payment. Heard this story before? Happens all the time. Don’t be so anxious to pay bills that you make payments before you receive funds from the customer. This is a recipe for disaster because 9 out of 10 times, you will not get that deposit you were expecting. It just doesn’t happen that way. Paying bills prematurely puts you at risk for bounced payments and negative cash flow.

Mistake #4 – Constant increased payroll

Some industries go through periods when they have more employees on staff than during other parts of the year. The thinking is usually that the increased workload will compensate for the increased labor costs. This is not always the case. Spending money and time on unqualified staff in hopes of training them appropriately ends up costing you more than hiring qualified staff from the start.

Mistake #5 – Not knowing your break even point

Your break even point is the point at which you profits equal your costs. Anything beyond that is pure profit, theoretically (see mistake #6). This figure is more often in the form of dollar amount or revenue that needs to be generated per month. But it can be broken further down into number of clients. Knowing this number will tell you how much business you need to bring in to keep your business afloat, including your owner salary.

Mistake #6 – Poor Project Planning

Poor project planning results in increased costs which in turn creates a decreased profit. Poor project planning leads to errors and mistakes that your business will have to foot the bill for later. When this occurs more often than not, knowing your break even point doesn’t matter. The profit that was anticipated will be eaten up by these unexpected costs.

What Are The Important Roles Of An Accounting Firm Melbourne?

An accounting firm Melbourne has many roles to play in business, even though they are seen as people who sit at a desk all day and crunch numbers. Their roles these days are much more comprehensive. While it is true that the accounting firm Melbourne certainly does do the books and accounts of the business they work for they do far more. In fact, the role of accountant is quite diverse and interesting, with few people realizing  just what in entails. The accounting firm Melbourne actually keeps its finger on the pulse of the whole business. A common role of the accounting firm in Melbourne is that of bookkeeper. The books have to be properly balanced if the company is to function in the way it should. The accounting firm in Melbourne is the one that creates a balance sheet, keeps track of assets and liabilities and monitors all the accounts. And of course, where would any business be at tax time without the hard work of the accounting firm in Melbourne? There is so much to know about tax procedures and having the right accountant can mean the difference between saving money and losing it. Yet another role for business accountants Melbourne is that of auditor. Many companies employ business accountants Melbourne to carry out internal audits of the company.

It is not so much that they think they need someone to investigate them; they simply want to keep accurate records for their own sake. So business accountants Melbourne do the difficult work of tracking down any mistakes and inaccuracies that may have been made and correcting them. The company can then be sure that their books and accounts are correct. They can also see trends and problems as they arise and do something to fix them. Another important role for the small business accountant Melbourne may be that of a managerial nature. Rather the crunching the numbers the managerial small business accountant Melbourne will use the information available to them in making wise financial decisions for the company. This is quite a prestigious position as the business can succeed or fail due to these decisions. In addition, the small business accountant Melbourne may work as a financial analyst for the company.

This means they will use external information on trends and marketing and advise the upper management how best to take advantage of them to improve the business. So, for small business accountantmelbourneco can help your business in many ways. Small business accountants Melbourne can be placed in charge of portfolio actioning as they know when to buy and sell; they can actually become invaluable employees of the organization that can alert management to opportunities for expansion and they can at the very least ensure that there is always a good cash flow so that the business can remain in business. This makes small business accountants Melbourne some of the most valuable employees that you will ever have working for you. Why not give them a call now?