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Meet a Member of Our Team
Wendy Bailey
B.Com CA
Principal - Taxation and Business
Services
Wendy Bailey
has over 20 years experience as an accountant in
public practice.
She has responsibility for a group of clients
ranging from individuals, clubs and societies to
large family companies in all sectors of
industry, in particular construction and primary
production. She provides general taxation
advice, advice on GST and FBT and accounting
advice for all aspects of the business.
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Area of
Specialisation:
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Taxation and
accounting advice for small and
medium businesses
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Taxation for
primary production, in
particular grazing businesses
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 Bonus
10% Deductibility On Capital Assets
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By
Steve Stone
- Business Advisory
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At an estimated cost of $1.6 billion over
the next few years, the Treasurer, Wayne
Swan, has announced a strategy to boost
economic activity and support jobs though
the implementation of a 10% temporary
investment allowance. This allowance will be
in the form of an additional tax deduction
aimed at encouraging Australian businesses
to invest in capital assets.
The treasurer hopes that by boosting
business confidence and encouraging business
investment this measure will provide an
important short-term stimulus to the
Australian economy in the face of the global
financial crisis. |
The investment allowance is in addition to
the Government's $10.4 billion Economic
Security Strategy designed to bolster
households and businesses, strengthen the
economy and support jobs. The allowance will
also complement the major investments in
infrastructure that the Government is
undertaking.
The allowance will be in the form of an
additional tax deduction equal to 10% of the
cost of eligible new tangible depreciating
assets - which includes most items of plant
and equipment costing over $10,000 and which
are acquired or ordered by 30th June 2009.
This investment allowance will be available
for businesses who start to hold or start to
construct the asset after 12.01am AEDT 13th
December 2008 and before the end of June
2009. Assets must be ready for use by the
end of June 2010.
This means a business can receive an
additional 10% tax deduction for investment
brought forward and in place by 30 June
2010. Any business owner wanting to know
more about this allowance and the eligible
capital assets should give their WHK
Principal or Manager a call.
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Talking
Shop
- Discuss business topics with
like-minded business women |
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Talking Shop
Returning in March 2009
Talking
Shop is a WHK initiative to bring
together women in business, often
supporting families, who want to
improve their business and be more
profitable.
Talking Shop offers
attendees an opportunity to network
with like minded business women in a
relaxed environment. Talking Shop
also offers a great opportunity to
get to know your accountants at WHK
who are working with you and your
business in achieving your financial
goals.
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Are You Ready? |
It's often been said that there's only two certainties
in life, those being death and taxes.
Last year we had the Subprime Crisis in the US which had
an amazing impact on interest rates and affected all
Australians, whether in business or not. The impact of
these uncertainties in the financial markets created a
significant downward spiral in the Australian share
market. |
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Australia has also felt the impact of flood and drought
throughout the 2008 year and we've also had a new
Federal Government in place who recently delivered its
first budget.
Through all of this one thing remained constant - time.
2009 brings a new financial year which represents a time
which allows us to do something about our taxation
position.
We can do things to ease the burden of taxes legally but
we need to look now and attend to them before 30th June.
Some of the things that you can do between now and the
30th June include:
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Check
with your accountant or financial adviser to make
sure that the lodgement of your income tax returns
and financial statements are up to date.
Unfortunately, the penalties get greater after the
30th of June.
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Take the
time to clear up any outstanding issues during the
month of June. These might relate to outstanding
accounts, people that owe you money or unresolved
issues that you've been putting off, but now is the
time to look at them.
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You
should review your current structure to see whether
it still fits with your current needs and the way
that you see your business developing over the next
12 months. The end of the financial year is like a
new year and you should make sure that you start the
year in the right structure.
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Now is
the time to review your business plan and see how
you're going compared to how you said you would.
Review your financial position and compare it
against the budget that you set last year. If you
find you're doing well, give yourself a pat on the
back.
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If you
haven't done so, review your interim results and
make an estimate of how they will end up; this will give you a likely taxation position as
at the 30th of June. Again, being aware of the
likely outcome gives you the opportunity to do
something about it if you need to.
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If
you're thinking about giving bonuses to staff, now is
the time to do it so that you can get the tax
deduction in the current year. You should ensure
that staff superannuation is right up to date and
you've made the contribution prior to the 30th of
June.
For superannuation contributions to be deductible
they must be paid in the current year - e.g. paying
them on the 3rd of July will mean that the deduction
is in next year, not this year.
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If
you've made a capital gain during the year, you
should review your current investments to create a
capital loss on sale. If you think you want to get
rid of some of these assets now is the time to do it
so that you can offset the capital loss on those
assets against the capital gain that you've
previously made.
The key
thing in business is not to let things sit and wonder
what happens. Taking control of your business is no
different to taking control of your life and you need to
be well informed to be able to make the right decisions
so that you get the best outcomes for your business.
None of us set out to fail at something, however,
carefully considering your options and setting plans in
action can make significant changes to the results you
achieve.
Give WHK a call today on
(07) 4722 9555 to discuss your
future options.
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But before you do, take out the guesswork with our
Business Profit Optimiser.
Would you like to see the financial impact of every
business decision before you make it? |
A Business Profit Optimiser consultation, exclusive
to WHK, can help uncover causes for current
difficulties, plot future direction and create
projections and solutions for many financial "What
Ifs", including:
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- What if sales improve by 10%?
- Should I discount prices to win sales from my
competitors?
- How will increased sales volume impact on my
cash-flow?
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Do you really want to leave it to chance?
Make your own luck. Make an appointment today.
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Call (07) 4722 9736
for an obligation-free appointment.
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To Sell Or Not To Sell - That Is
The Question |
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In finance and in business we are constantly
reminded of that old saying "people don't
plan to fail, they fail to plan". This is
particularly true when a business owner gets to
the point of wanting to sell their business. By
application of some basic analysis, though,
every business owner can be successful in this
important step.
By asking some simple questions, why, when, what
and how and then carefully considering the
answers you will be better prepared and more
likely to get the best outcome possible.
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"The reason I am selling is easy, I just want
out, want to retire or need the money". Some
simple reasons for wanting to change. Have you
carefully considered the real reason why you are
happy to sell something that has probably been a
big part of your life, up until now anyway?
The motivation behind your decision can impact
on the way you go about selling. If you have had
enough you are likely to sell at any cost,
whereas if you are passing on a labour of love
you will be more particular. Your state of mind
can come across to buyers and the better sales
results are achieved where a positive attitude
and reason exists.
This state of mind will also affect when we sell
as well. Sometimes circumstances change and it
becomes necessary to sell, such as retirement,
but the best sale price won't be achieved if we
let things run to the very end before we do
anything. Planning for the day you retire and
working through a clear strategy to realise the
value in your business is just plain good sense.
This preparation is part of your succession
planning and is as important as planning your
next holiday - but does it get the same
consideration?
The best time to sell your business is when it
is doing its best. If your business is at the
top of its game it will sell faster, more people
will be interested and you will realise a higher
sale price.
You can improve, and should strive to, before
putting the business on the market. Do a careful
analysis of your trading results. Can margins be
improved? Should I renegotiate some trade
arrangements? Does the business look like its
going well or ready to sink? Often as we work we
don't take the time to lift our heads and take
an objective look at the business. You need to
do it now, and then, if necessary, get some
advice on how to make the changes needed to get
the best result possible.
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Five Key Actions
(1) Understand why you are selling
(2) Pick the best time to sell
(3) Recognise and value what you are
selling
(4) Be aware of taxation and legal
issues
(5) Work with your broker/advisor |
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Once you can understand why you are
selling and feel your business is
fine tuned for sale, and the time is
right, you need to then work out what
you are selling. Is the business one
which has a large number of tangible
assets? e.g. plant and equipment,
stock, intellectual property, etc. Or
is it one which has high goodwill?
e.g. reputation, client listings,
customer contracts. |
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If I was buying your business it would be easy
to point out the Hino truck parked out the front
but could you tell me the names and details of
all your customers, how much they spend, and
what are their special needs, if any? This list
and all the information which you may have
recorded or may have stored in your head could
be just as valuable, or more so than the Hino.
Don't miss the chance to maximise your sale
price by failing to recognise an asset.
How much these assets are worth can be valued in
the first instance by qualified valuers. We are
used to doing this for house sales, so why not
for a business sale? Check with a reputable
motor dealer to determine the value of the
truck, check with suppliers for true stock
values and check with your business advisor or
accountant for goodwill valuation.
Remember that your business isn't just the
combined value of each of the bits but often
bringing all the bits together gives it a
greater value - isn't that why you did it in the
first place? Make a list of all the parts of the
business and keep this written record as you
will need to give it to any interested buyers.
The use of a broker or experienced advisor will
help with the sale process and get your product
in front of interested parties. Marketing is an
important factor and this can take the form of a
minor or major campaign. You may already know
who is likely to buy and can go to them direct.
Is there a group who is active in your industry
who would be interested in your business? Your
presentation needs to be high quality so as to
impress the potential buyer. We all want to
think we are buying the best, so why not present
the best? Again, preparation will make a
difference.
Sometimes the buyer is already working for you
and management buyouts or acquisition by one or
a group of employees could be an option for you.
Take the time to think through who would be a
likely buyer. Someone like yourself perhaps?
Work closely with your broker/advisor and
understand what they are doing and why they are
doing it, ask questions so as to know what is
going on and get regular updates.
Most business sales involve the purchaser buying
all of the necessary assets to carry on the
business but there are times when the sale of
the operating structure may be a better way to
go. What this could entail is you selling your
shares in the company or interest in your trust
which carries on the business. This can be
harder but in some circumstances it may be a
very effective way for you to sell and there can
be some taxation concessions available to you as
the seller.
If you would like any further information or would
like to discuss your future options, please call
your Manager or Principal at WHK.
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Section 945A of the Corporations Act
requires advisers to obtain information from clients before making
recommendations. Equivalent requirements apply also to accountants in relation to the provision of tax advice. Accordingly clients and
readers should not act only on the basis of material obtained in this
newsletter because the contents are of a general nature and therefore do
not take into account each person's individual circumstances and may be
liable for misinterpretation. Do not act upon any of the information
contained within this newsletter without first obtaining specific advice
by your adviser. All opinions, conclusions or forecasts are reasonably
held at the time of compilation but are subject to change without
notice. WHK assume no obligation to update this publication after it has
been issued. Whilst every effort has been made to ensure accuracy,
information contained may not be complete, may have changed or may not
be relevant to or appropriate for your circumstances. You must not use
the information without seeking professional advice. Should you consider
the acquisition of a particular financial product as a result of the
material contained, you should obtain a copy of and consider the Product
Disclosure Statement for that product before making any decision.
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Townsville
Office:
PO Box 537
22 Walker Street
Townsville Qld 4810
Ph: (07) 4722 9555
Fax: (07) 4722 9599 |
Kirwan
Office:
PO Box 943
Thuringowa Central
73 Thuringowa Drive
Kirwan QLD 4817
Ph: (07) 4723 2777
Fax: (07) 4723 0921
|
Charters Towers
Office:
PO Box 218
28 Bow Street
Charters Towers Qld 4820
Ph: (07) 4788 2900
Fax: (07) 4787 4169 |
Hughenden
Office:
PO Box 144
29 Brodie Street
Hughenden Qld 4821
Ph: (07) 4741 1100
Fax: (07) 4741 1211 |
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Email:
info@whktcmsmith.com.au
Web: www.whktcmsmith.com.au
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