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6 Reasons to Change Accountants

6 Reasons to Change Accountants

For getting higher success in your business, you need to have precise financial information, particularly for the small businesses. In short, a financial statement is mainly considered as a report card for the owners. It means how well their business is going. And your financial statement works as an actual report card for those who want to buy or invest in your firm like bankers, stakeholders, investors, etc.

 

However, it is immensely imperative to have the right advisors and support for you in the finance department to attain higher success. Like human life, our financial life also evolves with time. So, it would be essential to have a tax accountant Melbourne that can also evolve their work with the time-   

 

Things to keep in mind- 

 

Sometimes, due to some financial failures and regular losses, a situation occurs to reconsider all your planning. And it becomes inevitable to switch from the firm’s current accountant. But it would be best if you always remembered that your finances are there to get the best for your firm. So, don’t hesitate to take any hard step in the best interest of your business. And for this, you can consult any reliable tax accountant in Melbourne.   

 

So, let’s find out six reasons that you must consider for changing your current accountant-

 

Financial Statements

 

Falling financial statements are one of the biggest and prominent reasons to reconsider the appointment of your current accountant. Ultimately, it’s your money and reputation. If your business has been seeing the downfall and receiving lower financial statements, then the time has come to move on. 

 

You hire a tax accountant in Melbourne to get the best and if your accountant is not giving you the desired results towards the end of the year, then changing your accountant is probably the best option for you.  

 

  

Tax surprises

 

Tax surprises are considered as the most frustrating for the owners. When you have completed your year with a big smile on your face, and suddenly a tax surprise comes a few days before the tax date. It all happens due to the lack of engagement of the accountant. The accountant needs to be involved in the business last quarter of the financial year, knowing about the projected profit and describing the upcoming tax liability. 

 

Frankness and Proactive

 

The lack of communication or some kind of hesitation between the accountant and owner can lead to the failure of finance-related strategies. If your accountant is afraid of you and hesitates in giving you holistic and smart advice on improving your business, then it would be great for you to move on and reach to the other tax accountant in Melbourne for wise advice.

 

Too busy

 

If you are finding it very difficult to reach out to your accountant and he/she is not attending your calls amid the tax season, then find a new accountant for your business. A wise accountant understands that tax season is always essential to the companies. So, it would be best if he is in contact with your firm. 

 

Unexpected bills

 

Yet another frustrating thing for the owners is to get the unexpected bills with a little explanation from the accountant. If these things are happening continuously, then you should look for other finance personnel.

 

Great knowledge of technology 

The time has changed as well as technology. Today, technology has become inevitable for businesses for achieving success. It means an accountant must know about the finance related software to make your financial life more comfortable. He/she should know about the cloud-based software, automation for repetitive tasks, e-commerce solutions etc.    

 

Conclusion 

An accountant is not only responsible for the financial report but also holds the accountability for the less-tax payment and beneficial advice for the business. So, these were the prominent reasons that you should consider changing your accountant and search any other tax accountant in Melbourne for greater success.   

Are my staff employees or contractors for tax purposes?

For a big business, the employees and independent contractors are both valuable assets. Both hired by the business house to complete or produce the desired result in a specific time. But when it comes to taxes, we think it is also a simple process that can be done without any errors. Because both are working for the company, and we can complete their taxes. But things a lot hazier and complicated than it seems.

Have you heard or read about the case of Uber in the US? The case is a real example of misclassifying employees and contractors. The business giant Uber denied to accept that their car drivers are employees; they used to consider them as an independent contractor. And this also led to the penalty of approx. 100 million dollars.

If you are also confused between your contractors and employees, then we have the perfect reading for you to make your all doubts clear-

Classification of employees and an independent contractor

Employees

Employees are those people who get regular wages, receive all employees benefits at the company, have tax deduction from their salaries, and last but not least, they work according to the schedule, which is decided by the employer. On the other hand, these workers have more protection and benefits in comparison to an independent contractor. They get workers compensation, severance, and anti-discrimination protection from the business. And lastly, they have to pay their taxes from their payrolls.

Independent contractors      

On the other hand, an independent contractor at the firm only receives the payment for their individual projects. They are solely responsible for their taxes and free to work for any business houses or firm. And in terms of the tax criteria, they considered self-employed by the internal revenue service officer (IRS). It means they need to worry about their tax payment on their own.

However, the degree of control can also be an excellent point that can help you understand the difference. If the employer has all the commands and power towards the worker, it means he/she is the employee.

Classification on a taxation purpose 

If you are a regular employee at the company, then your company will withhold and pay your Medicare taxes, social security taxes. They also withhold employment taxes and unemployment taxes from your salary and pay to ATO on behalf of yours. They also do the special paper works to IRS on your behalf.

But if you are classified as an independent contractor in the firm, then the company will not require much legal work. You are responsible for your taxes, and you will not be eligible for any benefits from the firm, such as employee insurance, etc.

However, if you are also misclassifying your worker and contractor, then you may end up in a tricky situation by the IRS.

Conclusion

The difference and classification of workers should be made wisely to avoid unfavourable future possibilities for the firms. So, this was a simple classification through which you can easily classify your workers and handle your tax criteria wisely.

Learners of today, leaders of tomorrow: the path to becoming a CTA

Chartered Tax Advisor is a highly demanded profession. And if you also want to shine up your career in this field, then step forward and give wings to your dreams. Accounts NextGen is a one-stop destination where you map out success and shape your destiny under a professional environment.

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Do you want to build a stable career by joining the best CTA program? Then come ahead and join us-

CTA1 Foundation program

Get introduced with an extensive range of Australian Tax Issues. Learn skill-building that’ll boost your career from the first step. The program will automatically ramp up your confidence level, and you’ll become skilled in dealing with a variety of problems coming in the tax return.

CTA2A Advanced program

In this program, you’ll obtain an in-depth understanding of various dynamics of tax issues. It’s an advanced program as it kickstarts your journey to the professional tax advisor. You begin getting well-acquainted with multiple responsibilities that you’ll play in the role of a tax advisor.

CTA2B Advanced

It’s an extra advanced level program that will guide you on how to study in-depth areas, such as tax returns, corporate tax, international tax, etc. Besides, you also learn some alternate tax strategies based on problem-solving procedures to help clients in tricky situations. You’ll also grab the knowledge on tax laws.

CTA3 Advisory

At this final program, finding a solution for complex issues will become much easier for you. You’ll gain expertise and become proficient in applying correct taxation legislation. The case studies will test your skills and proficiency that, over time, you’ll improve with us. In the series of CTA programs, this last chapter will be the final touch to your experience. Throughout the program, whatever you’ve learned, the last program will keep all those knowledge alive with you.

Why should you opt for the Chartered Tax Adviser Program online?

If you want to gain in-depth knowledge of CTA’s various parameters, then personalized training is the most integral part of your journey to becoming a successful tax advisor. Hence, online training is the best approach that allows you to record a session and revise it continuously until you gain expertise in a particular thing. Also, it enables you to appear for tests whenever you want so that you can check your skills, and later you can work out on them if you find any shortcoming. Hence, it’s the best part of our CTA program where you’ll get clear, concise knowledge from point to point on each clause.

So when are you joining us?

Get quick tax refunds by understanding the right way to file your returns: ATO

ATO has announced a big refund on tax returns after the outbreak of global pandemic ‘Coronavirus.’ Resulting in, lots of Australians are anticipating more refunds than ever before. But if you don’t want to fall into the tax trap, which may prove costly to you, some crucial points become essential to note down in your diary before initiating any step.

Already, this year, plenty of people are requesting a claim than ever before. Ben Johnston, Willet Johnson’s partner (who belongs to a leading accounting firm in Sydney), mentions that many people are rushing for the claim and hence filing their return before July, which is wrong.

For instance- amid doing this, most of the people may leave their private health insurance and annual payment from employers unnoticed that is filled automatically in a tax return online. And it’s the most important thing you must markdown because it may take weeks to appear in your statements.

It merely conveys that working out excessively may create chaos for you as you may get less refund (far less than your expectations or otherwise you may have to repay the tax office). Hence, Mr. Johnston mentions that people must pay attention to everything and don’t decide in a hurry.

Relying entirely on a data machine isn’t always a better option. ATO always sneaks a look at banks, health funds, and large corporations before acting out on your file return. For this, ATO takes time, and doing things in a hurry may introduce risk to you. Like- it’s possible that you may be audited by ATO or may have to amend a tax return.

The year 2020 was challenging and unforgettable for sure, and in the wake of current situations, most people may show promptness for filing return earlier. But remember, in this way, you may forget to mention most of the important things too.

According to a spokeswoman, Aussies are no longer required to receive statements from employers; indeed, it’s now electronically possible. It states that your payment summary will appear in your Tax Return automatically. But it’s essential that you also check it in your statement before lodging, to ensure that you are “Tax Ready.”

However, if you still wish to file your return earlier, you may have to mention your statement’s income manually and will have to be double ensured about your ‘statement.’ Although online tax services are far better and you can expect a tax refund in less than two weeks.

How can you file a return online?

Since there’re many benefits of filing online, so millions of Aussies are now accepting it as the best method. It speeds up the information gathering process as lots of data is pre-filled. The risk of overlooked data and frauds are incredibly minimal. No wonder, it is a much safer option. If you register with an agent, then you get other benefits too.

For filing return, if you don’t have enough information about your statements to fill online, then you can take the help of your registered mobile number or urge to an agent for advice. Filing online tax speeds the process and encourages you to submit your return devoid of any confusion. Once you are clear with entire statements, you can expect a refund faster.

How To Claim Tax Offset Up To $2160? What Are The Income Parameters For It?

How Covid-19 has battered the economy, isn’t hidden from all of us. All are well-acquainted with this hard-hitting situation that has introduced us with a depressing recession time. Therefore, the Australian government is striving hard to help people with lots of initiatives, and Tax Offset is one of them.

Owing to claim Tax Offset, which is around $1080 per annum for singles & $2160 for couples, people are rushing to file tax before time as more and more people are anticipating claiming tax refunds.

However, the government is initiating such steps to bring monetary flow into the Australian economy again. In this way, workers will get some amount to spend, and that incurred expense will turn into someone’s income.

Such steps may help Australia come out from the recession by introducing a significant boost to the Australian economy through supporting jobs.

Around ten million Australians will get the benefit of it and approx. Half of those workers will get at least $1080. But only if they have lodged tax returns this year.

According to treasurer Josh Frydenberg, “ it will give a big boost to people’s budget as they can keep more out of their earning.”

Since the government has introduced low class and middle-class offset ( $1080 for singles and $2160 for couples), millions of Australians are standing in the queue to benefit from this opportunity.

Nearly 991,000 people have visited ATO for lodgment, which is 11% more than the previous year. But only workers who earn less than $126,000 in a year are eligible for the claim. This limit also varies because workers can also secure $255 if their taxable income is up to $37000.

Any worker who earns between $48,000 to $90,000 is eligible for maximum offset- $1080. While workers who earn more than $90,000  but less than $126,000 are also eligible for offset, but they’ll get a refund in the minimum amount.

Mr. Frydenberg mentions that this cut in tax is one of the best options in the wake of Coronavirus, which is likely to create possibilities for people to purchase things easily. It’ll boost spending, which is essential for the Australian economy.

Now you are well-acquainted with the tax offset, which income group is eligible for this tax refund policy. No wonder, the Australian government is following the best approaches to boost consumption, aggregate demand, and money flow in the market through such steps.

Tax Time! Be Ready To Claim Income Offset

Tax offset, by the federal government in the previous year, created lots of confusion for Aussies, and this year too, in the wake of coronavirus, lots of questions are bursting out in people’s minds.

Coronavirus crisis has shaken up the Australian economy; hence millions of workers are becoming victims of this hard time. That’s why things that could provide them relief from tax have become essential to introduce.

And keeping the current situation in mind, ATO has also decided to help people with income offset claims.

Let’s put light on a few things you must know-

The Offset

As per ATO guidelines, on their official website, a person with income less than $126,000 can get low or middle-income Offset. Bear in mind; the minimum Offset is approx. $255 per annum while the maximum is $1080 per year.

However, the Offset amount is influenced by various contexts, like income level and tax paid by you throughout the year. Also, you can’t expect any offset if your earnings are high.

You can’t anticipate a $1080 direct cheque by the government. Indeed it’s a tax offset that may trim down your tension over the overall tax bill.  However, it’s a bit complex thing, but you can outline it as a massive refund.

According to H&R Block’s director of tax communications, Mark Chapman, since people’s household budget has stretched than ever before. Hence most people are looking ahead for a refund.  As a result, many Australians are standing in the queue to file tax before time with the anticipation of getting income offset.

On the other hand, many employees who lost their job after the hard-hitting of coronavirus are in the lurch. They are facing-off with financial stress, and such a scenario of expecting a refund is a usual thing, and that’s why these people can expect a high refund.

How to claim Offset?

You might be assuming it a head-scratching process. Indeed, it’s much easier to understand. According to ATO’s official website, ATO will automatically include the claim entitled to you in your tax return, and you don’t have any need to care about income offset.

To discover the Offset entitled to you, check out (non-refundable tax offsets) section that you can find in your notice of assessment.

Tax Deadline for $850

If you want to take particular advantage of “Concessional Extended Deadlines,” then you must hire an agent as they are able to introduce you with a loophole. October 31 is the final deadline for tax return lodging. But hiring an agent raises an opportunity to lodge form up to May 15 without any penalty.

People are confused with the ongoing events; they are still unaware of the due date of lodging, filing last year’s tax return, and paying business activity statements”.

Further delays are coming because of unforeseen workload on agents that have triggered after the global pandemic outbreak. Hence, both personal and professional pressure are the leading reasons why meeting the deadlines most of the time becomes difficult for them.

Are you looking to Maximize your Tax Refund? But How?

Everything, you must be aware of about the ATO’s flat rate if you’re planning to use it for your tax return.

The end of the ‘financial year’ is on edge. Lots of challenging and unforgettable curves have already bumped into people’s lives, both financially and physically, and anticipating more tax refunds is a usual thing.

Shortcuts can provide you relief to some extent, but your entire efforts may turn out a big failure because already, a team of experts has been assigned with the work to collect the entire expenses, bills, and receipts on your name. So they don’t miss out even a little chunk of dollars to be mentioned in your tax return.

To battle with Coronavirus, the lockdown has forced people to turn their lounge room into an office area. Therefore, after mapping out the entire situation, the Australian tax office (ATO) has also introduced higher Flat rates.

Accordingly, ATO uses a simplified process that brings easiness for people to claim rates. For instance- people who are following “work from home” ATO come across the decision to lift the standard hourly rates from 52 cents to 80 cents per working hours.

Before opting for the flat rate and rather than working out on calculating expenses, with an alerting message, the tax experts outline various reasons why figuring out things and taking steps ‘carefully’ are essential.

Spokesperson Andrew Gardiner, from National Tax and Accountants’ Association, mentioned it the most important thing. Although, the concession (flat-rate) includes cooling, electricity bill, off heating, expenses incurred on office expenses like printer, computer, paper, and cartridge.

Certainly, it’s not a big claim; hence people must be sensible and careful as they’re only getting 80 cents per hour for standard 40 hours a week, which means only $32.

Choosing the flat rates will imply that the taxpayer is washing hands from claiming the amount on purchasing the new computer, chair, and desk while they were working from home.

Remember, you can’t think about opting ATO’s 80 cents per hour claim if you are choosing this option. Lately, you also have to forgo your right to the claim of office expenses. Like for electricity, internet, or telephone expenses, you can’t expect to claim separately. The right to claim for deprecation on a computer printer, paper, and cartridge will also be forfeited.

The Ways To Maximize Your Tax Refund

Travel

As mentioned by (Platinum Accounting & Platinum Professional Training’s CPA and managing director), Coco Hou, travel can be necessary for the following reasons:-

  • You may have to go out of your home to purchase some essential items; hence, you incur costs.
  • You incur a cost as you have to put petrol in a car while traveling.

The things you may leave unnoticed

Expenses that you incur while subscription for services or car insurance are some of the most notable costs you incur while working from your home, and that you must include.

Slip up on ‘what to claim?’

Global pandemic with giving rise to lots of problems has also introduced some confusing situations related to claim. What to claim, and what can’t be claimed? However, according to Ms. Hou, the answer is clear: every item that comes out of your employment work is un-claimable since they aren’t part of your regular working environment. Like toilet paper or food.

Final statement ‘what do I need?’

The ATO (Australian Tax Office) always asks people for a number of hours and a list of expenses they have incurred in the last four weeks while working from home- said Mr. Gardiner. Hence, you should always be ready with the documents that hold the record of your expenses.

How To Rectify A Mistake Or Request To Amend A Return?

If you recently came to know that you have made some mistakes in your return, you want to revise or edit a few things, or you left few things unnoticed in your tax return or statement, then you can ask for its amendment anytime.

Several reasons can be available behind why you want to correct the information. Possibly either you have made a silly mistake, entered wrong figures, failed to report some essential data, forget to mention claim, deduction or credits, or after the lodgment of return, few things have recently changed around that are pushing you to correct the mistakes or amend a return.

Even though whatever the problem or concerns you have in your mind, you should never delay to correct them. If you don’t want to stick into further issues that may hit you badly in the future, then it’s essential. Few cases come under the legal time limit, and they follow strict guidelines that once you’ve overlooked, you can’t expect any help later on.

Besides, if you are continuously delaying, then you may have to confront penalties and interest on the following errors. Therefore, while doing such legal work, if you get confused and stuck with some problems while filing the return, the support will surely assist you.
Before any correction for the return, tax authorities may review complete details, data, information, or statements while following different approaches.

They’ll first review the comprehensive information you’ve provided and then work out on adjustments. But amid the process, they can contact you or your agent several times. However, most of the time, tax authorities may send your documents for examination for the process of audit or review. During this, whenever they ask you for the error, you’ll have to specify them. Otherwise, they may also invite you to correct the mistakes.

Understanding Tax Deductions for Charitable Giving

If you also follow charitable giving, and amid this hard time, if you are also coming ahead to help people who are unable to deal with the current situation, you must understand Tax deductions. It’ll not just assist you in trimming down the excessive tax burden from your shoulder; indeed, it may encourage you to help needy people more.

Every year, around one-third of Australians give their significant contribution to Charities. If you are also one of them, you must pay attention to the following rules that are crucial to understanding for every person contributing to charitable giving.

Are you giving money to charity? Don’t forget your gift!

Do you want to give a significant boost to your tax refund? Then tax-deductible donations are the best way to make this possible. You can find plenty of charities around you who rely on donations as it supports them. Your little contribution can help lots of unfortunates.

But remember, if you want to connect with a charity or already you’re a part of any, then make sure the charity is registered by ‘ATO’ if you’re paying more than $2 as a donation to them. According to ATO, it must be “Deductible Recipient organisation” otherwise; you can’t expect any tax deduction.

Most of the charities are apparent in such phases. But if you want to pay double attention, you can also ask them for “deductible gift recipient status,” which will clear your doubts.

Donation That Isn’t A Tax Deduction

ATO marks the following scenarios before providing you with a tax deduction for charitable giving-

  1. If you donate to an organisation that isn’t registered, you can’t claim any tax deduction on your generous donation.
  2. If in the exchange of your donation you receive something from the charitable organisation, such as- a dinner attendance, chocolates, etc. then you aren’t eligible for a tax deduction.
  3. It’s often a significant confusion among people that donating to churches will shed tax burden. Still, it’s not the whole truth. Like a registered charitable organisation, the churches come under registered places for charity. However, leaving essential things unnoticed and requesting ATO for deduction may give rise to problems for you. Don’t claim it unless you’re entirely assured whether it’s eligible or ineligible.

It’s easy to track your Tax Deductible Donations to charities.

Most Australians, during tax time, fail to mention or present some crucial things that hold them back to claim any deduction. For example- people either forget their receipts or deductible donations while filing tax return in Melbourne.

You must be prepared to verify your claim. For this, you must always be ready with entire documents and a series of receipts. No matter; whether your donations were in cash or related to some goods or services, you should always keep a detailed record of your donation in order to become eligible for a refund. However, it would be much better if you’ve made payments with check or donations have been made in the following Tax Year.

So are you ready for your tax deduction?

The Auditing work after the Pandemic Era

Keeping the financial record for a business with high accuracy is one of the auditing teams’ foremost works. They are actual fact-checkers or information verifiers of the firms. However, with the emergence of the Covid-19 crisis, things have changed as well as the work too. All sectors, including financial and non-financial, are battling for their survival. Thousands of workers are losing their jobs amid the financial crisis.

Although the Pandemic Era has taught us an important lesson about the imperativeness of technology. Today, all sectors have been marching towards online platforms rather than being stick to physical work.

Andrew Marks, the Audit director at William Buck in Melbourne, says, “the technology was there before, but the Covid-19 era has taught the significance as well as the necessity of technology.”

Today, we are connecting and doing our auditing work from remote areas too. It means, earlier, we weren’t sure, but now we are doing our all conversation and auditing works through video conferencing applications like Zoom or Google.

Covid-19 Impact on Auditing work

The auditors are often termed as the capital market protectors. From elite street investors to banks, the finance people build their trust and make future decisions based on the accuracy of auditors. And today, amid the most significant financial crisis, the role of Auditors is going to be huge for the big firms and finance people. So, let’s find out how Covid-19 has impacted the Auditing work-

Home-office Concept

The Pandemic has brought some technological pieces of evidence that we can run the economy through online mediums too. However, auditing work requires accuracy, and we need to attain some professional standards also. With proper technology infrastructure, the home-office concept of auditing is currently functioning. And we can say this functioning will be going to last long.   

Cybersecurity

Amid the Pandemic, online work has become a vital part of our lives. But at the same time, the online data leak and cybercrimes are becoming significant concerns.

While speaking on the interests of cybersecurity and necessity of online work, Mark Hucklesby, a national technical director, Grant Thornton, New Zealand, said, “we need have to have encrypted services while sharing or working on client’s data. The cloud software is equally important for preserving the standards and privacy of the client’s information.

Obstacles in Auditing

Mainly the external auditing is now majorly depending on the clients. It means they depend on the clients to get the right information and documents upload. For example, the Australian National Audit office reached its clients for proper access to information and timely uploading.

Conclusion

The current Pandemic Covid-19 has brought some unprecedented challenges, which almost caused the unbearable repercussions like life threat and economic crisis among the people. Both problems are causing enough pain to society. So, it is up to you now, whether you want to strive and work hard for life or accept the fate.

And adopting technological change is also one of the ways through which we can revive our economic conditions. So, these were a glimpse of auditing work that will be adopted by most firms in the future.

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