If you are finalising your end of financial year accounts and calculating your tax position, keep in mind that there are still options available to save you tax.
One of these options impacts on the valuation of your trading stock and if stock is a material asset in your business, you should most certainly consider it. This option provides you with different valuation methods that can be applied to your trading stock.
The majority of businesses value their trading stock at cost and in many cases this is the right valuation approach. However the Tax Act gives you the choice of valuing your stock at the lower of cost, market, or replacement value.
Tags: End of Year Reporting | stocktake | Tax & accounting compliance
Posted in Business Insight, Infotelligence |
Surveys indicate that 40% of SMEs will face a succession event over the next 5 years. For many it is the baby boomer generation of business owners who are looking to exit their business. This represents a large group of small business owners who, in the main, will retire over a 5-10 year period. But it’s not all about retirement. Increasingly business owner are buying or building businesses with a clear exit date in mind. Their strategy is to grow the business, sell it and move on to the next venture.
From these two groups, what is evident is that there will be a significant number of businesses that will come on to the market in the coming years or that will be managing some form of succession. Apart from business sales it could be a merger, generational succession, management buyout or even a listing. On the sheer numbers alone we are talking about over 400,000 businesses.
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Tags: generational succession | Succession planning & sale of business
Posted in Business Insight, Infotelligence, Sydney News & Events |
The coming 12 months promise a lot of volatility for business. Uncertainty around interest rates, the carbon tax debate, weak consumer sentiment and the possible ripple effect from problems overseas means that business will be working with a range of domestic and wider influences that will cause uncertainty. And this uncertainty will have upsides as well as problems for business.
Most SMEs are well downstream from major economic triggers. We don’t cause the problems but we are affected because of what is happening to larger business, the economy and consumers. Some industries are more impacted than others.
Expecting business in the coming year to be simply more of the same as in the past, is likely to be wishful thinking. If your business strategy is simply to turn up, work hard and expect business to come to you, then you are likely to be disappointed.
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Tags: Business strategy | Strategic business planning
Posted in Business Insight, Infotelligence |
It’s a new financial year and with it comes a series of changes and challenges. The central message for the new financial year is ‘cash is king’ and will remain so for some time to come.
While the economy is performing well, consumers are wary about parting with their cash. Part of the problem is that around 50% of Australia’s growth is coming from 10% of the economy. For the rest of the economy, petrol prices are high, interest rates are likely to rise, and the rate of debt default is at record highs.
Consumer sentiment shows that no one really feels as secure as the headline economic data indicates so discounting and long decision making processes are likely to continue.
For business, take the ‘cash is king’ message to heart. Some very high profile and established businesses have dissolved recently so stick to your trading terms and watch your debtors or you may be caught out by someone else’s problem.
Tags: 2011/12 Financial year | cash flow | Income tax | PAYG | R&D Tax concession | Self Managed Super Funds | SMSF | Superannuation | superannuation guarantee | Tax & accounting compliance | Tax strategy and structuring
Posted in Business Insight, Infotelligence |
Q. We are looking to position our business for a sale in the new year. We are sure that we want to sell the business but are less certain about the best way to achieve this. Do you have any ideas on what we should be focussing on?
A. There are two key pieces in the sale of a business. One is the structuring of the transaction the other is the positioning of the business to the market. Both pieces are important and can significantly impact your result.
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Tags: Sale of business | Succession planning & sale of business
Posted in Business Scruples (Q&As), Export, Infotelligence |
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