Accountant and Business Advisor Services

Services Offered

All businesses need the right advice and most accountants will have certain level of knowledge about businesses and how the operate. The key is making sure you are able to get the information that you need from your advisor, that is why I offer a complimentary initial consultation to ensure that we get along and that we understand each other.

 

Are you getting the most out of your business? When was the last time you sat down and really reviewed your business and its operation’s. It is very difficult to look at your business when you are too busy working in it. Let me help you.

 

Structuring

What entity should you use? It all depends on what you are trying to achieve.

 

Companies – Provide you with a set ownership structure and they provide you with a level of asset protection. Profits are taxed at a flat rate of 30% (28.5% for small companies in 2015/16). The profits can be retained in the company.

However, any profits taken from the company must be paid out as a dividend or loan agreements established which can lead to future taxation issues and increased compliance costs. Generally, losses incurred are carried forward to offset future profits. There are some special rules that may allow current year losses to create refunds. In addition to compliance costs a company does incur annual fees with ASIC. Example – Owners wanting to build retained profits and minimise taxation.

 

Unit Trusts – Provide you with a set ownership structure and depending on the trustees can provide a level of asset protection. Any profits must be distributed to the Unit holders each year and then they pay the appropriate tax. Any losses should be carried forward to offset future incomes.
Example – 2 friends going into business together but want their taxation matters kept separate. So each year they get their share of profit and tax is each parties own responsibility.

 

Discretionary Trusts – The rules around trusts have become more complex/widely monitored by the government of recent. They have no set ownership structure, which does allow them the flexibility to distribute to any beneficiary of the trust as determined by the trustee by 30 June each year. Again, depending upon the trustees, they can provide a level of asset protection. Profits must be distributed and cannot be carried forward.

 

Partnerships – Can be 2 or more people, trusts companies or variations thereof. A partnership provides no asset protection and in fact each partner can become liable for the other partners debts. Profit is distributed to each partner in accordance with their partnership agreement and taxation is each partner’s own issue. Set up costs are generally low.

 

Sole Trader - You as an individual can operate a business. You are taxed as an individual and subject to the same marginal rates that apply to all Australian Residents.