Sole-Trader & Contractor Tax

Sole Trader Tax? Now that’s a different beast!

ABA Tax are here to help you

All the additional Tax responsibilities that come with being Self-Employed can be pretty overwhelming on top of everything else that’s keeping you busy.

 

So whether you’re a Contractor, Freelancer or an Entrepreneur – ABA are here so you can focus your time and energy where it matters most.

  • Bookkeeping, BAS & IAS
  • Payroll & Superannuation
  • Xero software solutions
  • Cash flow forecasts and budgets
  • Coaching and mentoring

Need help with your tax return?

What you get:

  • Maximum profits for minimum tax - guaranteed
  • Quick and painless Tax Return prep and lodgment
  • Your BAS, PAYG and Super prepared
  • Expert advice - all year round
  • Less paperwork
  • More time & energy to focus on what you do best

ABA Tax are:

  • Sensitive to the needs of Sole-Traders
  • Experts in Cloud-based software solutions
  • Always available for a chat - even if you just need some advice

ABA Tax can:

  • Prepare Business Schedules & Tax Returns for Sole-Traders
  • Assist with Tax Management and planning
  • Organise your BAS, PAYG Instalments & Super Obligations
  • Reconcile GST and prepare any BAS amendments

Use our tax checklists and financial calculators to help you keep track of expenses and prepare for your tax return.

Bookkeeping, BAS & Payroll

Let’s face it, bookkeeping is an important part of any business but in reality this process is often neglected. In fact, according to CPA Australia, a large percentage of small businesses fail due to financial mismanagement and weak accounting records.

Inaccurate bookkeeping provides little insight as to your business health and forms the basis of many poor business decisions. Just because you’re busy doesn’t mean you’re profitable, or cash flow positive!

Poor cash flow is generally a symptom of many other underlying problems which can be identified and corrected with sound bookkeeping practices. Current information about where your making money, where your loosing money and regulatory obligations is vital to the longevity of your business.

Onsite, or with the assistance of Cloud Software, we can quickly, and cost effectively, manage the paperwork. This lets you concentrate on jobs, customers and daily operations.

From quotes to invoicing, payroll, purchasing and superannuation, we can tailor solutions to meet your individual and business needs. We also ensure accounting compliance and regulatory requirements are met and maintained.

  • General Bookkeeping; Data Entry & Reconciliations
  • Payroll & Superannuation
  • BAS & IAS Preparation & Lodgment
  • Comprehensive Financial Reports
  • Depreciation Schedules
  • Business Systems & Procedures
  • Migration to Cloud Based Accounting Software
  • Bookkeeping & Software Training
  • Work With Your Accountant (or ours)

Why Outsource?

  • Save Money. It’s no surprise that outsourcing work saves you money. By outsourcing your bookkeeping you eliminate full time staff for part time tasks.
  • Save Time. When you outsource your bookkeeping and accounting functions to a skilled team dedicated to tuning your financials into shape, you can focus on what you do the best – developing the business you really want.
  • Improve Cash Flow. Being able to access transparent and accurate financial records in real-time means that you can see where you are, problem solve a lack of sales, and confidently plan for the future.
  • Expert Services. Outsourcing to a professional bookkeeper ensures that your accounts are managed by someone with the skills to do the job accurately and efficiently. You also gain access to current information on applicable regulatory requirements and obligations to ensure your business stays compliant.

Cloud Software Solutions

Cloud software solutions are the next generation of business functionality and Xero is leading the way.

ABA have partnered with Xero to deliver outstanding Cloud Software Solutions to our clients. If you want your business to work smarter and faster, cloud accounting software is a wise investment. Working in the cloud will give you better insight into your finances, and improve collaboration with your team.

You can use cloud-based software from any device with an internet connection. Online accounting means small business owners stay connected to their data and their accountants. The software can integrate with a whole ecosystem of add-ons. It’s scalable, cost-effective and easy-to-use.

In the cloud, there’s no need to install and run applications over a desktop computer. Instead, you pay for the software by monthly subscription. Upfront business costs are reduced. Version upgrades, maintenance, system administration costs and server failures are no longer issues.

Discover for yourself why Xero is one of the most powerful bookkeeping and accounting tools available!

  • A custom dashboard lets you see all your bank balances, invoices, bills and expense claims at a glance.
  • Interactive graphs show money going in & out, and the watchlist lets you monitor specific accounts.
  • Manage your cashflow by scheduling payments and batch paying suppliers.
  • Automatic bank feeds provide live data so you can manage cash flow in real-time.
  • The ability to collaborate with your team live enables accurate and confident decision making.
  • More about XERO
  • More about Cloud Accounting Advantages
  • Xero Pricing

COMMONLY ASKED QUESTIONS

Administration Systems

We are small business professionals with extensive hands-on experience in administration systems that work. We have earnt a solid reputation for designing and implementing user friendly processes to improve efficiency,  profitability and cash flow.

Before developing any system we identify administrative requirements in accordance with your organisational budgets and objectives. That is, we want to know the purpose of the activities undertaken and what controls are currently in place. We then work with you to design the most appropriate procedures and policies to govern your business operations.

A good Administrative System will comprise of efficient, goal oriented controls designed to either detect, protect or correct organisational threats. Our goal is to identify internal risk and strengthen key areas to improve the overall health of your business.

  • Payroll. Ensure compliance with compulsory employer obligations.
  • Accounts Payable. Improve cash flow management and buying decisions.
  • Accounts Receivable. Reduce turnaround times and increase cash flow.
  • Purchasing. Ensure proper authorisation, allocation and cost control.
  • Inventory. Control stock levels, reduce obsolesce and increase buying power.
  • Asset Management. Control tools and stock distribution to staff.
  • Time-sheets. Control hourly labour expenses & improve customer satisfaction.

Read more about Administrative Control Systems

Strategic planning

Strategic planning is critical to business success. Different from traditional business planning, the strategic variety involves vision, mission and outside-of-the-box thinking.

The strategic planning process provides an opportunity for your business to assess its current operations, identify weakness and explore future possibilities. Knowing “where you are” enables an accurate benchmark in which to monitor progress.

A Strategic plan describes “where you want your company to go“, not necessarily how you’re going to get there. That is, it holistically defines where your should be positioned in tomorrows market place. It looks outside of daily operations to question best practice, assess competition and drive innovation. It affords management the opportunity to identify results amiss with organisational objectives and quickly intervene with appropriate resources.

Whilst strategy is the heart of business success it need not be a daunting process.

Using the latest mind mapping software, ABA works with you to visually define, design and review your organisational strategy. We start by examining strengths, weaknesses, opportunities and threats. We look for resources and capabilities to leverage for maximum gain, and in-turn we work with you to develop and implement sustainable competitive advantage.

Quite simply, we specialise in Strategic Plans that work!

Why is Strategy so important?

Identified gaps in the Strategic Plan drive the Business Planning process to align operations. Resulting action plans then filter down through the organisation to achieve organisational goals and objectives  (Read More)

Strategic Planning In Mind Map Format

Mind mapping techniques are more productive. Defined tasks are layered within your organisation turning ideas into actions much faster than traditional reporting methods. (Read More)

  • Visualise ideas and concepts
  • Turn brainstorming sessions into action plans
  • Run strategy meetings more effectively
  • Create work breakdown structures, Gantt chart and timelines
  • Collaborate better with team member and clients
  • Deliver interactive reports, strategies and marketing plans
  • Link KPI’s to strategy
  • Easily monitor performance

Business planning

A Business Plan is an essential road map to achieving your organisational goals and objectives.

One of the greatest benefits of developing a business plan is that it helps you to focus yourresources and plan for business growth.

The business planning process helps you to understand the different factors that may affect your success. Instead of worrying about the future, you can actually have a sense of control over your business and livelihood.

A Business Plan does this by setting milestones and controlling resources. A good business plan should also concentrate marketing efforts, motivate your team and manage performance. It defines “how” you intend to deliver upon your strategic plan.

A Business plan is not a document you create once and store in your bottom drawer. It’s a living guide that you should develop as your business grows and changes.

A good Business Plan should not be encumbered with hundreds of pages scripting irrelevant fluff about non-applicable business practices. Accordingly, we do not use templates or attempt to squeeze your business into a one-size fits all planning model.

Instead, we work with you to understand your business, the obstacles and the opportunities, so together we can develop efficient and effective plans to achieve your organisation objectives.

Quite simply, we specialise in Business Plans that work!

  • Planning
  • Monitoring
  • Review

Financial Forecasts & Budgeting

A financial forecast is simply a financial plan or budget for your business. Financial forecasts provide a best guess of what will happen to your business financially in the future. That is, they are an estimation of future income and expenses for a business over the coming years and are used to develop the projections of profit and loss statements, balance sheets and, most critically, the cash flow forecast.

Predicting the financial future of your business is not easy, however, much like a map on a long road trip, it helps you helps you achieve your goals and get your business to where you want it to be.

A financial forecast combines historic data and organisational competences with external market conditions and economic indicators to forecast future performance. This allows you the opportunity to ensure adequate resources are available. Or, if a contraction is likely, better manage the decline.

ABA raises planning and what-if analysis to new levels of responsiveness for your small business. We link together finance and operations to help uncover new business opportunities, increase profits, and manage capital effectively.

We use the latest technology to create a fluid, easy to navigate information environment, which truly puts you on the leading edge of Business Analytics.

All our consulting solutions are designed to maximise your return on investment and create a solid ground for growth.

E-Commerce Expansion

In its simplest form, E-Commerce is the buying and selling of products and services by businesses or consumers over the World Wide Web. E-commerce spending in Australia has grown from $27 billion in 2010 to over $37 billion in 2013.

People use the term “ecommerce” or “online shopping” to describe the process of searching for, and selecting products in, online catalogues and then “checking out” using a credit card and encrypted payment processing.

Internet sales are increasing rapidly as consumers take advantage of:

  • lower prices offered by vendors operating with less overheads than traditional ‘bricks and mortar’ stores
  • greater convenience of having a product delivered
  • greater ability to shop around for the best products, features and price
  • comparison engines that compare and recommend products
  • auction sites such as Ebay

When a small business moves online it re-establishes itself on a level playing field with the competition. On the internet, even the smallest online retailer can be as attractive and functional as larger competitors. The Internet is a very cost-effective way to promote your brand, products and services.

Whilst E-Commerce expansion may seem a daunting task, moving your business online does not have to be an arduous process.

ABA works with you to develop strategies for online expansion to save you time and money.

  • Analysis & Edge: developing how an e-commerce Strategy can benefit your small business
  • The planning process: What you need to consider before starting an e-commerce site.
  • Developing a marketing strategy: Determining how to get the word out and how to maintain good relationships with customers.
  • Understanding technology needs: The tricks and tools that make it all happen.
  • Project Management: From concept to delivery.

Does the web make sense for your business?

The web has immense power to transform a business efficiently and cost effectively. With that said, sometimes a product or service just doesn’t seem to lend itself to online sales, at least not at first glance. However even for those types of businesses customers have come to expect an online presence. A company can sell tickets, offer discounts through its website, show images and videos of its facilities, set up online promotions or simply enable customers to make easy payments online. The possibilities are endless!

Small Business Taxation

Small Business Taxation can not be ignored. Company directors are now personally liable for company tax liabilities, including pay-as-you-go (PAYG) withheld amounts and superannuation guarantee charges (SGC).

The Statistics

 In May last year Galaxy Research, on behalf of American Express, conducted a nationwide survey of more than 1,000 small business owners with alarming results.

According to the survey, some common misunderstandings amongst owners surveyed included:

  • 50% of small business owners do not understand the write-offs that home-based businesses can claim for equipment purchases.
  • 40% are unaware of the tax-breaks for asset purchases under $6,500.
  • 65% of small business owners mistakenly believe that businesses with a turnover greater than $50,000 are required to register for GST. (The threshold changed to $75,000 in 2007).
  •  46% of small business operators incorrectly believe they can claim $300 worth of deductions without receipts.

If you are operating a business in Australia, you are responsible for complying with various ATO requirements. To meet these requirements you will need to apply for certain registrations. You must report income and keep business records. It is also important that you understand which business expenses you can claim, and take advantage of all available tax concessions.

Having a good understanding of basic tax issues will allow you to legitimately minimise your tax bill and avoid penalties.

ABA is a registered Tax Agent with a team of certified accountants who specialise in small business taxation. Our business tax services are not just about filling out forms. Our goal is to make sure that you are compliant with all relevant rules and regulations, and up to date with any changes.

We ensure you take advantage of all available deductions and we help you plan ahead for the future.

  • Tax Returns (Company, Individual & Trusts)
  • Financial Reporting
  • Depreciation Schedules
  • BAS Reconciliation & Lodgement of Activity Statements
  • Withholding Obligations & Payment Summary Preparation
  • Record Keeping Obligations
  • Facilitate Dealings with the Commissioner
  • Advice and Information
  • New Company Set-ups

Thinking about selling your business?

Running a small business is tough. You put your heart and soul (and many years of hard work) into it, so you deserve to get the best reward when you sell. Fortunately some significant Capital Gains Tax (CGT) concessions may be available to help you achieve the best after-tax sale result.

The value of these concessions can have a major impact on the after-tax sale value of your business so despite the complexity it is worthy of investigation.

If you are not eligible, or choose not to take advantage of these concessions, you may still be eligible for the general CGT discount.

There are four small business CGT concessions available:

  • Small Business 15-year Exemption
  • Small Business Retirement Exemption
  • Small Business 50% Active Asset Reduction
  • Small Business Rollover

To be eligible for these concessions, the taxpayer must, along with related entities:

  • have annual turnover of less than $2 million and run a business, or
  • have net assets of less than $6 million excluding the family home and any superannuation benefits.

The asset must also pass the ‘active asset test’. This test requires the CGT asset to be an active asset for:

  • 7½ years, if owned for more than 15 years, or
  • half of the period of ownership if owned for 15 years or less.

Importantly, it does not have to be used in the business at the time the asset is sold. There are also modified time periods for:

  • CGT assets acquired or transferred under the rollover provisions relating to assets compulsorily acquired, lost or destroyed, or those relating to marriage breakdown, and
  • assets sold after the business had ceased.

This outline is by no means exhaustive of the regime in every situation. There are a wide variety of circumstances and structures to be considered.

Strategic Exit Planning is vital to ensure your properly positioned to take advantage of the CGT Concessions available to your small business.

Need More Info?

Our goal is to simplify your life when it comes to taxes.

Services

Find what you are looking for on our services page. Individuals, Sole-Traders, Small Business, Property Investment, SMSF's & Late Lodgments. No matter your tax needs, ABA Tax has you covered!

F.A.Q's

Browse through our answers to the most frequently asked questions by our clients about personal income, small business tax and other topics.

Tax Tools

Check out our downloadable checklists, logbooks and calculators to help you manage expense claims, work uniform expenses, car logbooks, rental schedules and more.