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Tax – Chaos or Calm

The date June 30 can mean chaos or calm depending on how well organised you are. If this year is already looking like chaos maybe it’s time to consider ways for your office to work smarter as we head towards end of financial year.

Here are a few tips to create calm from Lan Nguyen from Success Accounting Group.

1. Check for missing receipts or documentation – these definitely cause stress and chaos

To create a calmer approach to 30 June; review all necessary receipts and documentation now so that you can present your accountant and the Tax Office with a complete set of documents to substantiate your claims and support your record keeping.

2. Review your financial positioning – If your profit and loss statements are unbalanced there’s a very good chance you are too.

The difference between good bookkeeping and excellent book keeping is balance… in the numbers in your profit and loss and business and credit card bank accounts. Don’t forget to check if the interest on the car hire purchase and business loans is separate from the principle. Are they fully reconciled and all transactions recorded accurately and completely? If not, go to point #1! This is the best time of year to do a stock take and write off any obsolete stock. Check the integrity of accounts receivable and accounts payable and write off any uncollectable debts before 30 June. If none of this makes sense – talk to your accountant A.S.A.P.

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Commercial Property Depreciation

Five Facts For Commercial Investment Property Owners

What commercial property investors should consider

Commercial investment property owners are often unaware they are entitled to make a claim for property depreciation. According to Bradley Beer, the Managing Director of BMT Tax Depreciation, around 80 per cent of commercial property owners don’t take advantage of property depreciation and therefore miss out on thousands of dollars.

“Claiming depreciation is paramount for commercial property investors. A depreciation claim can provide the difference in income for owners to turn a negative cash-flow property into an investment with a positive cash-flow,” said Bradley.

To help commercial properties owners earn more from their property, here are five facts about tax depreciation to assist them in the lead up to the end of financial year.

1. What is depreciation and what can be claimed?

The Australian Taxation Office (ATO) requires investors to report any income earned from a commercial property as part of preparing their income tax assessment. Commercial investment property owners are entitled to claim depreciation. Depreciation is a deduction available due to the wear and tear of a buildings structure (capital works deduction) and its fixtures and fittings (plant and equipment items) over time. It is considered a non-cash deduction, meaning investors do not need to spend any money to be able to claim it.

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