Think twice before writing 20 instead of 2020

Year 2020 has arrived, and we are nearly a week in. People are starting to get back to work – so are scammers.

When dating documents, we love using abbreviations.

Last year we used to write 19 instead of 2019.

So it’s normal for us to write 20 to indicate 2020, but this poses a fraud risk.

A date like 6 Jan 20 can easily be defrauded as 6 Jan 2019 by adding 2 more digits behind the year.

The consequence can be huge: imagine if this is written on a formal contract and the date has been fraudulently backdated, where you are liable for any monies owing since the date of contract. Or if someone post-dates a cheque that has turned stale.

So save yourself some hassles down the track by writing the full 2020 when dating documents.

Want to minimise tax when selling your business?

Are you a business owner who is considering selling your business, but is unsure what the tax implications are?

When it comes to selling your business, there are many decisions to make, and sometimes these decisions may impact your tax liabilities on sale. It is therefore wise to speak to an expert about the road ahead before starting the journey of selling.

If a business is sold without having extensive analysis of its tax implications, you may end up having to pay up to 47% tax on the profit. However with proper consultation well before the sale, you may be able to reduce the income tax liability down (sometimes to nil!). The difference can be enormous when the profit is huge.

For example: a business sale with profit of $3m, with 47% tax, your share to keep is $1.59m, however with a 0% tax, you get to keep $3m. That’s a difference of $1.41m!

Below are some concessions you may be able to use to minimise your tax.

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Are you spending too much time on admin work in your business?

As a small business owner we wear a lot of hats:

  • generating income to the business (aka the bread winner)
  • issuing invoices and following up on overdue invoices from non-paying customers
  • managing bills and payment of such
  • recording transactions and preparing BAS
  • responding to requests from clients/leads
  • checking the mail/emails
  • keeping up with your industry’s regulations
  • Tidying up the office
  • … the list goes on.

Question to you: on average how many hours of admin work do you do every week?

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Mythbusting the tax accountant’s industry

The busy season is here, and we are meeting our clients everyday to help with preparing their tax returns, business and tax advisory and bookkeeping queries. Very often during our conversations they raise some interesting questions, let’s have a look at some of them here.

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