JGA Team

5 Ways an Accountant Can Save You Money on Your Tax Return This Year

May 3, 2017 by JGA Team

When it comes to taxes, everyone wants to save money. There’s a wealth of information available that explains ways to increase your return and reduce the amount you have to pay. It’s difficult to know which tips and suggestions apply to you. That’s where an accountant comes in. A professional can help you properly lodge your tax return and save money in the process. How can your accountant help you save money on this year’s tax return?

1. An Accountant Knows What’s Legal

Staying legal is very important during tax season. The last thing you want to do is find out that something was not reported accurately or filed properly, which could lead to delays and fines or fees later. An accountant will know how to handle your taxes to help you get the highest return while staying legal.

2. An Accountant Knows Deductions

Do you know everything that can be used as a deduction? This part can be tricky for many Australians. That’s because without being a professional, most people do not have the time to learn about every possible deduction available. Your accountant will ensure that you take advantage of every applicable deduction you can. They know the ins and outs of deductions and will likely find some money-saving opportunities that you didn’t even know existed!

Working with an accountant can save you time, money and a lot of stress in the long run.

3. An Accountant’s Fee is Tax Deductible

Did you know that your accountant’s fee is tax deductible? That means you can pay someone to do your taxes for you, add it as a deduction, and as a result, if you’re eligible for one, receive a higher tax return. It’s a nice incentive for those who are on the fence about paying someone else to handle their tax return.

4. An Accountant Will Help You Improve Your Finances

Chances are there are things you could be doing throughout the year to save money and increase your tax return. An accountant can review your finances and provide suggestions and recommendations to help you make the next tax year more profitable for you, rather than the government. While they can help you do your taxes now, there could be ways to spend, save, or invest money in the future that could lead to a better outcome next tax season.

5. An Accountant Saves You Time

Accountants are not only knowledgeable, but also efficient. By allowing a professional to handle your taxes, you put more time back into your schedule. As the saying goes, time is money, and most of us wouldn’t mind more of both.

Find the Best Accountant for Your Tax Return

Hiring a skilled accountant can have enormous benefits all year round. Make sure you choose someone who has experience and expertise when it comes to tax returns. Contact Jonathan Grant Accountants today to get started.

Business Plans, Cash Flow, and Your Financial Success

March 29, 2017 by JGA Team

There was a time when it was easy enough to get a loan. Before the global financial crisis, Australian banks were happy to lend money to just about anyone. There weren’t many hurdles to jump over, and lenders paid less attention to the borrower’s ability to repay loans. The economy was doing well, and everyone was optimistic. But now in 2017, things have changed quite a bit.

Many places have experienced an enormous financial downfall, which is felt across the world. The result is a reluctance to hand out money the way banks once did. Credit policies have become far stricter, and it is much harder to find financing if you are a first-time borrower. In fact, some places won’t even consider you if you have not borrowed in the past.

What does this mean for someone who needs an investor for their new business endeavour?

You Need a Business Plan

If you are starting a new business, no matter how small, you need a plan. This can help show lenders that you are serious about success and have created a roadmap to get your business there. This is also an important process for you, as the owner, so you know where you’re going, and the steps you need to take to get there.

So how do you create a business plan? You can begin by asking yourself a series of questions related to why you are opening the business, how you plan to run it, where you want to take it, and what you will do in case of a setback. The plan should go into detail about how you will keep your staff happy, how to handle clients, and what research you have done to determine if your idea is viable.

Even if you already have a business, it’s never too late to make a plan. But instead, tailor your questions to the existing operation. For example, ask yourself why customers are frequenting your establishment (or why they’re not if you aren’t meeting your sales goals). How can you maintain your current level of success or expand it? How will you convince consumers to leave your competitors and come to you?

Come up with a complete set of questions to help you build a comprehensive plan that will keep your business on track and moving in the right direction.

Financial Planning & Projection

You opened your business to make money, so naturally, you must pay attention to your income and spending. Make sure you have a financial plan in place to keep your operation going, even if there is a setback. Delve deeper by thinking about things that could hurt or help your business. For example, if a holiday event will be hosted in your town, how can you use that to your advantage as a business? If there are slow seasons, then how can you prepare for them, so your business survives?

Planning for the present is good, but you should also look to the future to keep your financial path clear. Get started with professionals who know how to get the most out of a business budget. Jonathan Grant Accountants have the experience and expertise to not only ensure your business is compliant but more importantly, assist you in setting your business up for success.

Is Using Excel Costing Your Business?

March 8, 2017 by JGA Team

Many businesses use Microsoft Excel in their daily operations. The spreadsheet program can be helpful for a number of tasks, and is a reliable, practical choice for many professionals. The problem is that the effectiveness of the Excel spreadsheet really depends on how it was made and the data it contains. If one is poorly made or includes errors, then it will provide little to no benefit. In some cases, a badly crafted spreadsheet could actually cost a business money.

What’s Wrong with Excel for Accounting?

Maybe you have been using Excel for accounting purposes for years, or maybe you’re a new business owner looking for an easy and affordable way to handle the books. Before you start (or continue) to use Excel for your finances, there are some issues you should be aware of, that could cost your business money.

You Must Be an Excel Expert to Make It Work

Excel is a commonly used program, so much so that even novices use it for their everyday tasks. The problem is that the software requires an understanding of a programming language to be effective – something most people don’t have the time to learn.

Starting a New Spreadsheet Takes a Lot of Time

Excel isn’t specialised. It’s a general purpose spreadsheet solution that was created for a variety of applications. This means you’re required to set up a new spreadsheet to meet your needs every time you use it. If you want to track invoices or expenses, just getting started can take a lot of time.

You Must Have a Plan Before You Use Excel

It’s crucial to have a plan before you dive into Excel. As mentioned above, the program isn’t specialised, so you will have to know what your goal is and what data will be required from the start.

Excel Does Not Provide an Audit Trail

It’s easy to edit Excel spreadsheets, but it’s difficult to know who is making the changes. That’s why audit trails are nearly impossible to find with the program. What if someone entered $100 instead of $1,000? That could lead to major financial issues later, and you may have no idea who is at fault.

Excel Does Not Integrate with Business Applications

Excel does not integrate with other popular business applications, which means you may have to manually import data and work across two programs to complete related tasks. Many other accounting products offer hassle-free integration that can save you a lot of frustration later.

Transaction Tracking is Difficult with Excel

It’s not easy to track transactions with Excel, as it does not recognise double entries.

Finances Done the Right Way

One of the best things you can do for your books is to ditch Excel and start using specialised accounting software, made specifically for financial tracking and planning. If you have questions, contact Jonathan Grant Accountants. Our professionals can provide sound advice and recommendations for your business’ financial future.

The Tax Benefits of Saving with Your Superfund

February 14, 2017 by JGA Team

There are many benefits to saving with your Superfund. Despite the fact that it’s still the most tax-effective option when it comes to building your life savings, many are not taking full advantage of it. In fact, Super contributions experienced a downward trend last year, falling .3%.

There could be many factors at play, but the biggest concern appears to be Australians’ lost trust in the government, after frequent law changes in relation to Superannuation. While such concern is valid, there are still many pros to maintaining your Super contributions.

Superfund Changes Aren’t All That Bad

Alarm bells ring when most people hear the dreaded phase “higher taxes.” After all, no one wants the government to take more of their hard-earned money. And that’s why some people turn a wary eye to their Super when the government changes the rules. But the recent changes really aren’t as bad as they seem.

The main difference is the change to the contribution cap, which is still higher than what most Australians contribute yearly. Also, any savings put into your Super that are above the $1.6 million mark (per person) will be taken out of the 0% area and into the 15% tax range. While zero is better, 15% is still far less than what you would pay on funds that were not kept in your Super.

Superfund Tax Benefits

While the cap for tax deductible contributions is $25,000 annually, most Australians don’t reach that maximum. But increasing your contribution as close as possible to this cap does offer some benefits, including:

Lower Tax Rates for Superfund Savings

Any income or assets you put into your Superfund will be taxed at a low rate of 15%. That number looks even better when you consider that the same assets and income could be taxed at a rate of up to 49% if you hold it personally.

Zero Taxes for Retirees

Wouldn’t it be nice to pay zero taxes? If you are a retiree over 60 years old, then this may become a reality for you. All Superfund income, capital gains, and withdrawals for most retirees is taxed at a rate of 0%.

Get the Most Tax Benefit out of Your Superfund

In order to reap the most benefits out of your Superfund, the first step to take is talking to a professional. Jonathan Grant Accountants are available to discuss your financial needs, and can advise on a plan to make your Super work for you.

Why are Small Business Owners Neglecting their Back-Up Plan?

February 7, 2017 by JGA Team

Opening your own business can be as thrilling as it is overwhelming. With the upfront costs, logistics, and day-to-day happenings during the initial years of your business, it’s easy to forget about planning for the long term. But it is this oversight that could potentially cause your business to close prematurely.

What would happen if you couldn’t work for an extended time?

A study performed by REST Industry Super, one of the largest superfunds in Australia, found that there are concerning gaps in the financial planning of small to medium-size business owners. One in five admitted that, should they encounter difficulties and be unable to work, they would not be able to sustain their business for more than a week.

The gap is also present when it comes to insurance coverage. The same study found that one in five small to medium-size business owners surveyed would only be able to cover living expenses and livelihood for up to a week based on their current coverage. Considering this group employs 4.7 million Australians, this is a concerning statistic.

What happens when it’s time to retire?

So what is the long term plan for most small to medium-size business owners? A majority believe that selling off their business when the time comes will fund their retirement. While this may bring in some funds, it’s hard to tell if it will be enough to survive on as the owner passes retirement age.

How to plan the future of your small business

Better financial planning can make a huge difference in the success of your business and the happiness of your employees. With proper planning, you can make sure the money will be there in case of a setback or emergency that keeps you away for weeks or more. What’s more, carefully choosing a super and offering contribution matching is a great way to attract skilled new hires.

The first step is creating a plan and making changes to your existing super if needed. Contact Jonathan Grant Accountants today to learn more about how we can help you financially fortify your business.

DIY Accounting is so Last Year

February 1, 2017 by JGA Team

Going DIY is good for building a spice rack or learning how to change the oil in your car. But when it comes to accounting, doing it yourself isn’t as simple. There are many nuances to the financial industry, and as trends shift and legislations change, are you sure you’re prepared to take on the burden of doing it alone?

Hiring an Accountant isn’t Just a Luxury for the Rich

Many small business owners view hiring an accountant as something that only corporations and the very wealthy do. What they don’t realise is just how much money they could be losing by not having a financial professional on their side. When you choose to do your own bookkeeping, you end up spending more of your free time working. And we all know, time equals money.

Hiring an accountant should not be viewed as a lifestyle choice. It is a business decision that could have a profound impact on your ability to increase profits and survive during hard times.

The Benefits of Hiring an Accountant

Before you start another year of DIY accounting, make sure you know of all the benefits that come with hiring a professional. Not only will it increase your free time, but it can also lead to big savings in the following ways:

Accountants know how to find all valid expenses that can be deducted from your taxes
Accountants can help you stay on top of invoices, so payments are received in a timely fashion
Accountants know that accuracy is important, so you don’t have to worry about costly tax mishaps
Accountants will ensure that your compliance paperwork is filed on time, so you don’t incur fines
Accountants will correct bookkeeping mistakes that could take you hours to fix
Accountants can provide sound financial advice when making decisions for your business

Work Smarter with an Accountant

Once you work with a professional, you’ll never want to go back to DIY. A good accountant will make sure that your business never suffers from a missed deduction, lost documents, poor bookkeeping, data entry error, or any of the other problems that can arise when running a business. If you’re ready to clean up your books and increase your profits, contact Jonathan Grant Accountants to discuss your business’ financial needs.

How Will Trump’s Presidency Impact the Australian Economy?

January 23, 2017 by JGA Team

There are over 15,000 km between the USA and Australia, yet financially the two countries are much closer together. The United States, along with Japan and China, rank among Australia’s top three, two-way trading partners. The US is also one of China’s top trading partners, with China being the largest export economy in the world. If something big happens in the United States, the rest of the world feels it. Trump’s victory in the 2016 Presidential Election is one of these events, which have sparked questions about its potential effect on our economy.

Will Trump Hurt or Help Australia’s Economy?

The big question on investors’ minds is: will Trump hurt or help our economy? He has presented some extreme views and ideas for the future of the US, some of which could influence investments.

It’s impossible to see the future, but we can take a look at how things seem to be going. And so far, there isn’t anything that’s shown up on the horizon to prove that Trump will have any significant or lasting impact. In fact, it seems unlikely that Trump will accomplish many of the things he claims he will do as president.

Watching Trump and the Market

While there is nothing definite in sight right now to indicate that Trump will cause upheaval in the Australian market, every investor should watch carefully. The unexpected can happen, as we observed with the election results.

It’s also important to remember that if Trump doesn’t accomplish all his goals, even half of them could lead to an upset in the economy. The fact he is the elected leader of the country that has the largest economy on the planet was enough to cause Australian currency value and local indexes to shift. Based on what we know now, there are a few things we are likely to see as Trump’s term progresses:

A push for revisions to existing trade agreements
The US taking a more isolationist role in the world
Additional trade protections for US investors and businesses
Lower taxes for individuals and businesses
Stronger immigration legislation
US Federal Reserve raising interest rates due to demand from tax cuts and public spending

The Jury is Still Out on Trump

It’s still very early in the game for the Trump presidency. No one knows what is in store, especially considering the unpredictable nature of his campaign. Experts have different views and opinions of what Trump will bring. The best thing to do during times of uncertainty is to make sure you are planning for your financial future, with the advice of your trusted accountant.