February has been an interesting month and don’t think the ATO aren’t looking for you.
A couple of warnings based on the last month:
1. Do you have a company motor vehicle that you use for business? You MUST have a logbook to prove your business mileage. If you are pulled for a review this will be the first thing that you are asked for, so make sure that you have it.
2. Does your superannuation for your team always get paid in time? If you pay late you must lodge a super guarantee charge statement. Late includes 24 hours late – 1 day is all it takes to get you into trouble and it is very easy for the ATO to monitor. If you pay late or can’t pay superannuation make sure to let us know so we can discuss the paperwork involved.
Look out for a web masterclass on this and a few other traps in the next few months.
Web Masterclass on dealing with client push back on prices and estimates
Everything is more expensive and most likely so are your services (in order to pay your team appropriately). How do you deal with those owners that don’t want to take up services, especially elective surgeries like dentals? How do you deal with that difficult client that complains about the price? Join us with Alison Lambert on 16 March 6pm (Qld)/ 7pm (NSW/Vic) where she will discuss how best to deal with these situations. Many of you already know Alison and she is a master of words and client communication, so don’t miss this opportunity.
Dog Tales! – make sure you understand the difference between a wage and a loan from the business
Where did my yummy food end up?! Yesterday we went to training club and I got lots of yummy food when I was there doing all my special tricks, but when we got back home I realised that I only got the yummy stuff when training. At home I have different food, the yummy food doesn’t seem to come home! Mom and dad explained it’s much like money the business makes. That money has to stay at the business and can’t come home with the owners unless it gets ‘taxed’. This means that for all the business owners out there, leave your money in the business bank account and only move it into personal accounts if you plan to pay tax on it. From a practical perspective as a business owner this means only taking money out through payroll or as dividends and distributions. Money taken out of the business in any other way needs to be treated as a loan from the business. Loaning from the business can have serious consequences and the tax office has a special name for it – a Division 7A loan. If I try to steal the yummy food out of the treat pouch when I see it on the bench at home, my human handler will expect me to do some special tricks afterwards to make sure I deserve it. Similarly, looking after Division 7A loans requires business owners and their accountants to do some special tricks to keep things legal and the ATO happy.
APL Accountants and My Tax Vet, 2 Genoa Ct, Cleveland, Qld 4163, Australia, Liability Limited by a scheme approved under Professional Standards Legislation
