As tax practitioners we have always tried to look after our clients by seeking extensions for late lodgements where required –  and historically these were usually granted.

But we have received repeated warnings in the last 6-12 months from the ATO that the same level of leniency from the ATO will be a thing of the past.  That’s also why we have always reached out to our clients months before due dates arise as a reminder that ATO commitments are coming up.

So if we reach out, please take it seriously, because we can no longer rely on the ATO providing the same extensions as has been the case previously.

The post You Can No Longer Rely on an ATO Extension appeared first on Mark Accountants.

• approved SMSF auditors (and SMSF trustees – if they hold an ABN).
• businesses and their owners.
• not-for-profits.
• other organisations.

Logging in to Online services to business

• how to log in
• setting up your permissions

Home Page Functions (including)

• Account Header
• Menu
• Notifications
• Items for Action  
• Quick Links
• Feedback
• More Information
• Help Links

Account and Payments

• view your accounts
• payment plans and options
• transfers
• refunds

Lodgements

• Income Tax Returns
• BAS
• and over a dozen other lodgement items

Employees Menu

Used by businesses to manage most employer obligations, including

• registrations
• annual PAYG withholding reports
• TFN declarations
• STP functions
• Superannuation functions

Communication with the ATO

• secure mail
• lodging Tax Return amendments
• communication history

Profile Menu

Used by businesses to manage their business details with the ATO, including

• business details
• business addresses
• email addresses
• authorised contacts
• Registered Agents details
• associates
• financial institution details
• card details
• add, update or cancel a tax type
• SMSF auditor details

Of course, if you don’t want to go it alone, or you are worried about getting it wrong, use the services of a registered tax agent. This is the best way to ensure that your lodgements are not only made on time, but are both correct and compliant.

The experienced team at Accountplan have been helping client of all sizes get it right for almost 40yrs. For peace of mind call us on 07 3883 8999.

The post ATO Online Services for Business – User Guide appeared first on Mark Accountants.

Who can complete your tax return?

You can get someone else to complete your tax return for you:

• A family member or friend can help you but they cannot charge you a fee.
• Tax Help is a free service provided by community volunteers trained to help people earning around $60,000 or less prepare their tax returns. Tax Help volunteers do not charge a fee for their assistance. Tax Help volunteers can help you online, by phone or in person at a Tax Help centre. To make an appointment, see Tax Help program.
• Only a registered tax agent can charge you a fee for preparing your tax return. To check whether an agent is registered, refer to Finding and using a tax practitioner.

Whoever helps you:

• you, no one else, must sign your tax return
• you, no one else, are legally responsible for the accuracy of the information.

Lodge your tax return by 31 October 2023

If you’re lodging your own tax return, you need to lodge it by 31 October each year.

If you choose to use the services of a registered tax agent, they will generally have special lodgment schedules and can lodge returns for clients later than 31 October. If you are using a registered tax agent, you need to engage them before 31 October.

If you’re having difficulties meeting your tax obligations or are unable to lodge by 31 October, contact us as soon as possible.

Failure to lodge on time penalty

We may apply a penalty for failure to lodge on time if your tax return is not lodged by the due date.

Generally, we apply one penalty unit for every 28 days (or part thereof) that your tax return is overdue, to a maximum of 5 penalty units. For more information regarding penalty units refer to Failure to lodge on time penalty.

We may apply the penalty even where there is no tax payable. However, our policy is not to apply a penalty where:

• you lodge your tax return voluntarily, and
• no tax is payable.

Where to send your tax return

Within Australia

To lodge online using myTax, see Lodge your tax return online with myTax. Most myTax refunds are issued within 2 weeks.

To lodge a paper tax return, either:

• mail it in the pre-addressed envelope that came with it, or
• mail it in your own envelope and address it to
  Australian Taxation Office
  GPO Box 9845
  (insert the name and postcode of your nearest capital city)
  
  For example:
  
  Australian Taxation Office
  GPO Box 9845
  SYDNEY  NSW  2001

Most refunds for paper tax returns are processed within 10 weeks.

From overseas

To lodge online using myTax, see Lodge your tax return online with myTax. Most myTax refunds are issued within 2 weeks.

To lodge a paper tax return, either:

• mail it in the pre-addressed envelope that came with it, but first
  • cross out the barcode above the address
  • cross out IN YOUR CAPITAL CITY
  • write SYDNEY NSW 2001, AUSTRALIA
• mail it in your own envelope and address it to
  Australian Taxation Office
  GPO Box 9845
  SYDNEY  NSW  2001
  AUSTRALIA

Most refunds for paper tax returns are processed within 10 weeks.

When can you expect your notice of assessment?

Our standard processing time for processing your tax return is:

• 2 weeks if you lodge online
• 10 weeks if you lodge on paper.

Your notice of assessment will be:

• sent to your myGov inbox, if you have a myGov account, regardless of whether you lodge online or on paper
• mailed to you, if you do not have a myGov account.

To check the progress of your tax return, see Check the progress of your tax return.

Your right to make a complaint

Where you believe we have not met your expectations or not conducted ourselves as outlined in the Taxpayers’ Charter, we support your right to make a complaint. We are committed to treating complaints seriously, dealing with them quickly, fairly and learning from them. Making a complaint will not affect your relationship with us.

If you disagree with a technical decision we have made about your tax affairs, you have the right to have the decision reviewed through the formal process. Refer to Dispute or object to an ATO decision.

Check our potential resolutions information for issues we can help with before deciding to lodge a complaint.

If you’re still concerned about an issue, you can:

• discuss it with an ATO officer who will aim to resolve your issue – see Enquiries
• try to sort it out with the tax officer you’ve been dealing with or phone the number you’ve been given
• talk to that officer’s manager if you’re not satisfied
• consider making a formal complaint if you’re still not satisfied.

How to make a complaint

To make a complaint:

• lodge an online complaint at Complaints, compliments and feedback
• contact us
• write to
  Australian Taxation Office
  PO Box 1271
  ALBURY  NSW  2640

If you have previously lodged a complaint and you are not satisfied with the way it is being handled, or with the outcome, you may request for your complaint to be escalated to a more senior officer. To escalate your complaint, contact ATO Complaints on one of the methods listed above.

The Inspector-General of Taxation and Taxation Ombudsman (IGTO)

We’ll investigate your complaint. However, if you’re not satisfied, you can contact the IGTO at any time to raise your concerns.

To contact the IGTO:

• see Inspector-General of Taxation and Taxation Ombudsman
• write to
  Inspector-General of Taxation and Taxation Ombudsman
  GPO Box 551
  SYDNEY  NSW  2001

Source: ATO

The post ATO: Important Information 2023 appeared first on Mark Accountants.

Tax time essentials

The ATO offer a range of tools and services to make it easier for you to get your tax and superannuation right. They want to help you manage and grow your business and get back on track if you need to. You can also speak with a registered tax or BAS agent for help.

Small business tax time toolkit

The ATO’s Tax time toolkit for small business has fact sheets to help you with:

• home-based business expenses
• motor vehicle expenses
• travel expenses
• claiming deductions for the cost of digital expenses
• using business money and assets
• pausing or permanently closing your business.

You can also download the Small Business Tax Time Toolkit (PDF, 1.0MB)

For more information see Tax time essentials for individuals.

The ATO also have fact sheets for primary producers.

Superannuation guarantee rate

As of the 1 July 2022, the superannuation guarantee (SG) rate has increased from 10% to 10.5%.

Make sure you’ve updated your payroll and accounting systems so that you continue to pay the right amount of super for your employees and avoid penalties.

Removing the $450 per month threshold for SG eligibility

As of the 1 July 2022, the $450 per month threshold for SG was removed. Monthly pay is no longer a factor in identifying eligible employees for SG, allowing more employees to be eligible.

Employers will still only need to pay super for workers under 18 when they work more than 30 hours in a week.

Single Touch Payroll

With Single Touch Payroll (STP), you report employees’ payroll information to us each time you pay them through STP-enabled software.

You need to start reporting through STP if you haven’t already.

Every year, employers must make an end-of-year finalisation declaration through STP. Generally, you need to make this declaration by 14 July each year, though you can finalise your data earlier if it’s ready. Let your employees know when you have finalised, so they can lodge their income tax returns.

Some employers have started STP Phase 2 reporting this financial year. Whether you’re using STP Phase 1 or STP Phase 2 reporting, your end-of-year finalisation requirements are the same.

Reporting through STP means you no longer need to give your employees payment summaries or lodge an STP payment summary annual report with us.

Your employees can find the information they need in their income statement in ATO online services through myGov, or by contacting their registered tax agent.

COVID-19 and fringe benefits tax

You may provide your employees with benefits you do not usually provide because of COVID-19. This includes paying for items that allow your employees to work from home.

Fringe benefits tax (FBT) may apply if you provide benefits in addition to salary and wages. However, exemptions and concessions are available, that can reduce (or eliminate) the amount of FBT you pay. Find more about COVID-19 and FBT.

Government grants, payments and stimulus during COVID-19

If you’ve received an Australian, state or territory government grant or payment in response to COVID-19 or recent natural disasters, you may need to include it in your assessable income. For example, you need to report JobKeeper payments when completing your tax return. You may also need to include other government payments.

JobMaker Hiring Credit

All payments under the JobMaker Hiring Credit scheme are assessable as ordinary income. The normal deductions apply for amounts your business pays to employees if those amounts are subsidised by JobMaker Hiring Credits.

JobMaker Hiring Credits are not subject to GST and don’t need to be included in your business activity statements (BAS).

Temporary full expensing

Under temporary full expensing, eligible businesses can deduct the business portion of the cost of eligible depreciating assets first held and used or installed ready for use between 7:30pm (AEDT) on 6 October 2020 until 30 June 2023.

You can use the temporary full expensing tax return label guide to help identify which labels you will need to complete in your tax return. This will ensure you correctly claim or opt out of the temporary full expensing measure.

A loss from using temporary full expensing does not mean you can defer a non-commercial loss. Find out more at Non-commercial losses.

Loss carry back

Eligible corporate entities may be able to claim a refundable tax offset in their 2020–21,2021–22 and 2022–23 company tax returns, if they made a tax loss in the 2019–20, 2020–21, 2021–22 or 2022–23 income years. Loss carry back is intended to interact with temporary full expensing, encouraging new investment which may result in tax losses. The choice to carry back tax losses may result in a tax refund which will increase business cash flow.

You can use the loss carry back tax offset tool to work out if you are eligible to claim the refundable tax offset. It also calculates the maximum amount you can choose to claim if you are eligible. The tool will provide you with a printable report that you can keep for your records. This report will help you complete your company tax return as it displays each label you need to complete to make your claim.

Lodgment penalty amnesty program

As part of the 2023–24 Budget, the government announced a lodgment penalty amnesty program for small businesses.

The amnesty applies to tax obligations including income tax and business activity statements, that were originally due between 1 December 2019 and 28 February 2022.

If those returns are lodged between 1 June 2023 and 31 December 2023, any failure to lodge penalty applying to the late lodgment will be automatically remitted. No action is required to request a remission.

To be eligible for the amnesty, the small business must, at the time of lodgment, be an entity with an aggregated turnover of less than $10 million.

This does not apply to privately owned groups, or individuals controlling over
$5 million of net wealth.

No other penalties or general interest charge will be remitted as part of this amnesty program.

More information and learning resources

The ATO also have learning resources to help you run your business, such as:

• Assessable income – what to include and exclude from your business’s assessable income.
• ATO podcast – Tax inVoice – listen to the latest tax and super information.
• atoTV – watch our videos about tax and super.
• Business.gov.au – access government transactions and services, as well as information on how to plan, start and run your business.
• Business tax deductions – you can claim a tax deduction for most expenses you incur in carrying on your business as long as they directly relate to earning your assessable income.
• Business losses – if you’ve made a business loss in a current year, you can generally carry forward that loss and claim a deduction for your business in a future year. You may be eligible for the loss carry back tax offset.
• Concessions at a glance – find out what concessions you can access, based on your aggregated turnover.
• Deductions for payments you make to workers (employees or contractors) – remember you can only claim these if you’ve complied with the pay as you go withholding and reporting obligations for that payment.
• Fringe benefits tax (FBT) – find out if you need to pay FBT on certain employee benefits.
• How to protect your business – it’s important to keep all your business, staff and client information secure. Knowing what to protect and how to protect it is your best way to stay safe.
• Income tax return – information on when you need to lodge and how to lodge. There’s no threshold for business income so you need to lodge a tax return if you carried on a business, even if your business has not earnt any income. 
• Making an amendment – if you need to correct a mistake or include something you have forgotten on your tax return that has already been lodged. There are time limits for amending your return. You can revise your activity statement if you need to correct GST or fuel tax credit mistakes.
• Manage your business cash flow – having enough cash at the right time will make it easier for your business to pay bills and other expenses and meet your tax, superannuation and employer obligations.
• PAYG instalments – many small businesses automatically enter the PAYG instalment system after they lodge their tax return, but entering earlier might help reduce the tax you may need to pay at the end of the year.
• PAYG withholding – find out if you need to register for PAYG withholding, how much tax to withhold, payment summaries or income statements and more.
• Record keeping for business – find out what you need to do to meet your business’s record-keeping requirements.
• Rent or lease payment changes due to COVID-19 – there may be changes to the income you declare, deductions you can claim and your GST and capital gains tax obligations.
• Small business webinars – register to find out about tax and super obligations and entitlements for your business, with topics including
  • GST
  • activity statements
  • income tax deductions
  • home-based business
  • record keeping   
• Small business workshops – face-to-face workshops are currently on hold, but you can register for an online webinar.
• Small business showcaseExternal Link (fairwork.gov.au) – access information on workplace laws and other topics relevant to small business owners at every stage.
• Super for employers – everything you need to know about paying super for your workers.
• Taxable payments annual report (TPAR) – if you make payments to contractors, you may need to report these payments and lodge a TPAR by 28 August each year.
• Using your business money and assets for private purposes – there may be tax consequences if you take or use money or assets from your company or trust for private purposes. It is important to keep accurate records of these transactions and ensure they are reported correctly for tax purposes.
• Using trading stock for private purposes – if you take an item of your business’s trading stock for your private use, you need to account for it as if you had sold it and include the value of the item in your business’s assessable income.
• Verify or report a scam – scammers will often pretend to be from trusted organisations, like the ATO. Find out more about warning signs.
• What’s new for small business – keep an eye out on what’s new.

Tools to help you

Use our calculators and tools to help you run your business. These include:

• Loss carry back tax offset tool – works out if you are eligible to claim the loss carry back refundable tax offset, calculates the maximum amount you can claim if you are eligible, and provides a report with your eligibility and calculation results.
• Record-keeping evaluation tool – see how well your business keeps records.
• Super guarantee eligibility decision tool – works out if you need to pay super for a worker.
• Super guarantee contributions calculator – works out the super guarantee amount to pay to your employee’s super fund.
• Super guarantee charge statement and calculator tool – works out how much super you need to pay if you have not paid your super contributions on time.

Find out what to consider when you take on an employee, such as pay rates, workplace health and safety, workers’ compensation and more, visit Hiring employees checklist.

Check that businesses you deal with have an active ABN and whether they’re registered for GST.

Financial assistance for eligible small businesses is available to help them meet their reasonable litigation costs.

Online services

Online services that help make it quick and easy to manage your tax and super:

• ABR online services – use Australian Business Register (ABR) online services to apply for, update and cancel an ABN. You can also register for other registrations, such as GST as part of the ABN application.
• ABRS online – company directors can use ABRS online to apply, maintain and manage their director ID information. Log in using myGovID.
• Access Manager – allows you to manage your staff’s access and permissions to online services for business and the Australian Business Register.
• ATO app – an easy way for sole traders and individuals to access and manage tax and super on the go.
• ATO online services – sole traders can access this on any device to lodge their tax return, manage activity statements, PAYG instalments and accounts, make payment arrangements and more.
• myGovID – an app you download to your smart device which lets you prove who you are when logging in to a range of government online services.
• Online services for business – this service allows you to prepare and lodge activity statements and annual reports, organise payment plans, manage accounts, and more.
• Relationship Authorisation Manager (RAM) – an authorisation service that allows you to act on behalf of a business or entity online. You’ll need to use your myGovID to log into RAM.

Help to lodge and pay

It’s important to lodge on time, even if you can’t pay. This will give you certainty of your tax and super position, which means you’ll have a greater understanding of what you need to do, when to ask for help, and the support options available to you. If you forget a due date or are stressed that you won’t be able to lodge or pay on time, it’s never too late to ask for help. The earlier you contact the ATO, the more options you can access.

The ATO have options to help you if you’re having problems lodging or paying on time, including making a payment plan in Online services for business for amounts owing up to $100,000.

Find out what to do if you haven’t been paid and how to deal with business debt.

Support is also available for anyone who needs help with their tax and super during difficult times. For a list of organisations, and information about the support the ATO can provide you, visit personal crisis support.

Dealing with disasters

If you’re affected by COVID-19, or a natural disaster such as a bushfire, cyclone, flood, storm or drought, the ATO can help you with your tax affairs so you can focus on your family and community. For information about assistance from other government agencies in Australia, visit Disaster Assist.

In tough times it’s also important to look after yourself and the people around you. There are many organisations that can provide information and support to help you with your mental health and wellbeing. For a list of organisations, and information about the support the ATO can provide you, visit personal crisis support.

Depending on your circumstances, the ATO may:

• give you extra time to pay tax or lodge tax returns, activity statements or other obligations
• re-issue documents including income tax returns, activity statements and notices of assessment (for example if needed to access government payments or concessions)
• help you reconstruct tax records that are lost or damaged so you can claim entitlements including income tax deductions or access government payments
• set up a payment plan tailored to your individual situation
• remit penalties or interest charged during the time you’ve been affected.

More support and services

Additional resources that can help you with your small business include:

• Small business newsroom – subscribe and get the latest tax and super news delivered to your inbox.
• Join the discussion online – follow us on social media for tips and updates or check out our ATO Community forum to ask questions about tax and super.
• Contact us – if you need more help.
• National Relay Service – if you have difficulty hearing or speaking to people on the phone, you can contact us through the National Relay Service.
• National tax clinic program – if you’re experiencing difficulties and can’t access or afford professional advice or representation with your tax affairs, the tax clinic program may be able to help.
• Registered tax or BAS agents – contact a registered agent to help manage your tax and super.

Aboriginal and Torres Strait Islander peoples and other languages

In addition to the ATO’s range of tools and services, they have information:

• on Tax for businesses – for Aboriginal and Torres Strait Islander peoples
• in languages other than English (including Arabic, Chinese, Hindi, Korean, Punjabi and Vietnamese) to help people from culturally and linguistically diverse backgrounds understand tax and super in Australia.

If you would like to speak to the ATO, you can also:

• phone their Indigenous Helpline on 13 10 30
• phone their Translating and Interpreting Service (TIS) on 13 14 50 if you would like to talk to them in your language.

Source: ATO

The post Supporting Your Small Business appeared first on Mark Accountants.

Former Australian prime minister and treasurer Paul Keating infamously stated in 1990, following the release of data showing another fall in Australia’s economic growth rate, that “this is the recession we had to have”.

The Reserve Bank of Australia had raised official interest rates to almost 20 per cent in a bid to combat the asset price inflation that prevailed at the time. 

Australia duly slipped into a recession that officially lasted until late 1991. 

More than 30 years later, there are some echoes from the past. 

The latest surge in inflation and a new round of aggressive central bank hikes in interest rates threaten to push Australia and other developed economies into recession once again.

Some economists believe the current conditions may result in another recession that Australia simply must have. 

This is thanks to the measures taken to offset the economic impact of the pandemic.

Can the causes of past recessions, and the efforts taken to end them as quickly as possible, inform government and policymakers on how to deal with the today’s economic challenges?

Same, but different

On a technical level, the term recession simply defines a period where economic growth, measured by gross domestic product (GDP), declines over two consecutive quarters. 

Generally speaking, recessions are marked by reduced consumer demand. 

This leads to reduced production of goods, rising business losses and failures, higher unemployment, loan defaults and falls in asset prices.

Yet while the symptoms of recessions are broadly the same, their causes are often quite different.

In the case of the early 1990s recession, the causes were broadly linked to the excessive borrowing and spending during the 1980s, which prompted sharp rises in inflation and interest rates. This ultimately culminated in the 1987 stock market crash.

The catalyst for the Global Financial Crisis (GFC) of 2007-2009 was ready access to large borrowings in the US and sudden rises in interest rates. The result was large-scale mortgage defaults in the US that led to a global credit crunch.

While Australia avoided heading into recession during the GFC, the US and many other countries did not. It took years for the US economy to recover.

The current economic malaise has similar symptoms to those that sparked the most recent recessions. 

However, it is largely the result of the fiscal stimulus packages that were enacted by governments around the world to tackle challenges caused by the pandemic.

Governments and central banks pumped huge amounts of money into their economies. 

In Australia, official interest rates were reduced to almost zero, and the RBA made significant purchases of Australian state and federal government bonds to support the economy. 

Some central banks slashed their official rates to below zero.

Low interest rates fuelled spending and inflation, and starting in 2021, central banks have been raising interest rates at a record pace to try to stop inflation in its tracks.

Analysing the latest cycle

The length of recessions can vary considerably. On average, they last less than 12 months, but some can last much longer. 

It mostly comes down to what measures policymakers take to stabilise economic growth.

Warren Hogan, chief economic adviser to Judo Bank, believes the economic shock we’re currently seeing across the global economy arising from the pandemic will be transitory.

“It always was going to be. It’s just some economists and central banks led us to believe that transitory was measured in weeks and months, whereas in the world of macroeconomies you measure it in months and years.”

Hogan says the efforts by governments and central banks to tackle inflation are starting to work, with supply chain pressures easing and some goods prices starting to decline.

The next issue, though, is whether the steps being taken will trigger a spike in labour costs as workers seek out higher wages to address rising living costs.

“We’re still sort of six-to-12-months-into-this-inflation story, and we’re still trying to get policy back to a neutral setting by not helping the economy and making matters worse,” Hogan says.

The recession outlook

Where are we at now? Can Australia avoid a recession?

Hogan says the chances of that are exceptionally low. The more important question is what a recession would look like.

In the absence of a financial crisis, Hogan notes, “it’s likely to be a long, drawn-out, shallow recession”.

“That’s got its good and bad points, because it does contrast with what we’ve typically seen in the last 30 years, which is short, sharp recessions.

“A long drawn-out one will not only potentially make it more difficult to build momentum on the other side, but also it will be socially and politically difficult.”

To this point, Hogan believes government and household finances will come under increasing pressure due to higher interest rates, and this will drive more business failures.

“That will free up labour for other purposes and help relieve pressures on labour markets.

“But the core of the business community, I think, is probably in the strongest position in the economy, particularly in the non-listed area, because they do have a lot of liquidity on their balance sheets.

“This is going to be a very critical time for business, and business will lead us through and out of this recession.”

Source: InTheBlack

The post Inflation, Interest Rates And Recession: Understand The Cycle appeared first on Mark Accountants.

The matter of Commissioner of Taxation v Bosanac [2021] FCAFC 158 was heard recently with the judgment holding that a $4.5 million property acquired in the name of one spouse was jointly owned 50/50.

The matter revolved around Mr and Ms Bosanac, who purchased a home in 2006. They paid a $250,000 deposit with funds from a pre-existing joint loan account in their joint names, and borrowed the remainder to acquire the property in Dalkeith, Australia. The property was then used as collateral to acquire other investment assets.

“Despite contributing to the purchase price equally, the property was transferred to Ms Bosanac as the sole registered proprietor. Both Mr Bosanac and Ms Bosanac lived in the property until their separation in 2015, after which Ms Bosanac resided there alone,” a statement from law firm Bennett & Co explained.

“Relevantly, the Bosanacs borrowed further money secured by the mortgage, which was then used by Mr Bosanac to conduct share trading.

“The Commissioner of Taxation [then] sought a declaration that Ms Bosanac as the sole registered proprietor of the family home, held 50 per cent of the beneficial interest on trust for her husband. In this case, the Commissioner sought the declaration as a means to recoup an outstanding judgment debt owed by Mr Bosanac to the Australian Taxation Office.”

Ultimately, the Full Court of the Federal Court judgement held that the property was jointly owned thereby “enabling the Commissioner of Taxation to make a claim on the property for unpaid taxes” incurred by Mr Bosanac. 

Timothy Munro, founder of award-winning compliance advisory app ChangeGPS said the decision represents a significant outcome.

“This one decision upends a lot of existing asset protection used by accountants for decades where an asset is held in the spouse’s name to protect against litigation and other claims against the ‘risk spouse’. With the Commissioner being successful in the second highest court in Australia, this decision is a shock to the system,” Mr Munro said.

Succession, Asset Protection and Estate Planning Advisers Association (SAPEPAA) chairman, Grant Abbott echoed a similar sentiment.

“The Full Federal Court looked at the earlier decision where the primary judge held that the presumption of advancement applied such that Mr Bosanac was to be seen to have advanced his interest in the property to his spouse,” he said.

“However not to be swayed the Full Federal Court said on the objective facts this was not the case, rather the spouse Ms Bosanac held 50 per cent of the property on trust for Mr Bosanac.”

Going forward, Mr Munro said the case will set a new precedent for such matters.

“We are not sure whether there will be an appeal to the High Court as the Full Federal Court used High Court precedents on advancement and resulting trusts to make their decision. So it looks like this is the new law and expect the Commissioner of Taxation to enforce it,” he said.

“It is time for accountants, who have clients in this position to immediately offer reconstructive advice for clients impacted. To help accountants Change GPS is presenting a solution, complete with ways to talk to clients about changes needed to their structures.”

Source: AccountantsDaily

The post ‘A shock to the system’: Federal Court spousal asset ruling to impact accountants appeared first on Mark Accountants.

According to a new Xero survey of more than 1,000 SMEs, late payments have become a major stressor with 24 per cent of small businesses and sole traders delaying payments to themselves due to cash-flow challenges. A further 23 per cent are delaying payments to creditors or suppliers.

Sixty-three per cent of those surveyed noted they deal with customers or clients paying late. This coincides with the latest Xero Small Business Insights data that showed in August small businesses had to wait 23.7 days on average to be paid by their customers, which is the longest wait since September 2020.

The survey also took into account invoice management, revealing more than two in five respondents find the process stressful, spending 12.4 hours every month on it alone, on average.

Further, 30 per cent spend more than five hours solely creating invoices, while 22 per cent spend the same amount of time either chasing late payments or 19 per cent correcting errors in invoices, the survey found.

“It is clear that the delays in invoice payments have a knock-on effect that’s felt among the small business community as it impacts their ability to pay their suppliers who are often small businesses themselves,” said Joseph Lyons, managing director, Xero Australia and Asia.

“While invoice management is key to healthy cash flow, it can be overwhelming for time-poor small business owners and sole traders.

“E-invoicing, a new way to invoice, allows businesses and government departments to electronically exchange invoices between accounting software systems, without manual data entry. This has the potential to facilitate faster payment times, help to boost cash flow and reduce stress for small business owners.

“E-invoicing holds huge potential for small businesses and sole traders, arming them with one of the tools they need to thrive and, in turn, helping bring the promise of a strong recovery for us all across the country.

“But for this vital shift to take off, we’ll need to see widespread adoption beyond small business. For the network to grow, it’s crucial that both government and big business play their role in enabling this to occur. It’s promising to see the steps governments, both federal and state, are already taking.” 

Source: AccountantsDaily

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Also known as ‘online accounting’, cloud accounting generally makes managing your finances and tax affairs easier, faster and safer for business owners.

What is ‘the cloud’?

When someone mentions ‘the cloud’, they’re referring to a network of remote servers hosted online that store, manage, and process data in place of local servers or personal computers.

Just like Netflix, which made a name for itself as the brand that made TV shows and movies available in the cloud, MYOB specialises in developing accounting tools that can also be accessed, and used, online.

Cloud technology is making services from movies to bookkeeping and accounting available anywhere, anytime.

Ryan Lazanis, CPA, who recently published a list of the 131 best cloud accounting software apps from around the world (which includes MYOB), had this to say about cloud accounting:

“When I ran my accounting firm, our whole value proposition was centered around making our clients’ lives easy and pain-free,” said Lazanis.

“Cloud accounting played a massive role in helping to achieve this. You just can’t beat anywhere, anytime access to your data and the automation benefits of eliminating tedious, time-consuming tasks.

“Cloud accounting was a game-changer for my clients.”

Here’s a brief FAQ to help you understand cloud accounting software better.

What is cloud accounting?

Cloud accounting, or online accounting, is using the internet to access, use and store accounting software and data, rather than physically installing it in a computer. 

You might install the software on your computer (but this is becoming less common), and it runs on remote servers, so you can access it with an internet connection.

In some instances, you won’t need to install the software on your computer and can access it via web browsers. This is becoming the more common scenario.

What are the benefits of cloud accounting?

Cloud-based accounting software offers a number of benefits for businesses. 

1. Storing and managing data

It alleviates the need for businesses to store and manage data, or maintain expensive computer hardware.

2. Low-cost

In some cases, all you need is a mobile device with internet connectivity, making cloud accounting far cheaper than desktop-based solutions.

3. Flexibility

The information can be updated and accessed from any computer anywhere in the world, offering true flexibility in a highly-connected world.

4. Minimises errors

There’s only one ledger kept and that is your file in the cloud, which improves the accuracy of the information and therefore minimises errors at BAS and tax time.

5. Interact in real time

Ledger owners can interact with their tax agent in real time instead of having to collate information and send the data file manually on a regular basis.

6. Up to date

The software is automatically kept up-to-date by the provider, meaning you don’t need to download updates such as new tax rates where the payroll module is used.

MYOB provides cloud accounting solutions

An increasing number of businesses, especially new and startup businesses, are choosing to use cloud-based accounting software such as MYOB Business accounting software to process their day-to-day transactions, manage cash flow and also keep track of purchases and payments.

MYOB Business is suitable for:

• Small businesses with simple accounting needs
• People new to accounting or accounting software
• Businesses that need to transition from manual record-keeping

What about the security of cloud accounting?

Any discussion of cloud technology inevitably brings up concerns regarding security and data privacy, as people quickly realise they’re no longer ‘owning’ their data (and sometimes, their customers’ data).

Being aware of these security concerns is particularly important today, as we see data breach after data breach impacting the world’s biggest brands and their customers’ privacy.

The good news? Your cloud accounting software provider is responsible for this. MYOB spends significant time and resources making certain that their servers maintain a higher level of security and integrity than its customers could maintain of their own accord.

Features like two-factor authentication, among others, are examples of how the security of data held online continues to evolve.

What does cloud accounting mean for your accountant or tax agent?

Accountants, bookkeepers and tax agents are comfortable with recommending cloud accounting to their clients, except when extenuating circumstances prevent them from doing so.

Not only do they recognise the benefits online accounting offers your business, they reap the rewards themselves.

Cloud accounting for bookkeepers

For bookkeepers, cloud accounting means faster documentation, less time spent doing data entry and more time spent offering advice on how business owners can reduce costs or improve their systems.

Cloud accounting for accountants

For accountants, cloud accounting means a more efficient compliance workflow, reducing the chance of duplication or other errors, and the ability to spend more time advising their clients on how to maintain and grow their business.

To give you a practical example, accountants who have clients using MYOB Business can easily log in to their online files come tax time. They can process end-of-year adjustments, which get updated in real time, with no major interruptions to the clients.

Throughout this process, there’s no need to send files back and forth, or verify figures from various sources; it all happens automatically.

Another benefit of using the cloud for advisors is they can review clients’ operating results at any time (including in April or May each year for tax-planning purposes) and provide proactive, timely advice on issues impacting their business (such as falling margins or a looming super payment). This adds more value to the advisor’s service offering by helping to keep the business on track and comply with tax obligations.

Source: MYOB

The post Cloud accounting 101: What is it and who can benefit by using it? appeared first on Mark Accountants.

So what is the cloud?

The cloud is where you put all your data, all your files and even your software so you can access it all from any computer or device, anywhere, at any time. See the difference the cloud can make in how you work, bank, communicate, sell and buy.

• Traditional banking vs internet banking
  It used to be the case that your financial data was only available to you when you were physically at the bank. With internet banking, your financial data is available online in the cloud. You can access it anytime, anywhere and on any device.
• Traditional mail vs web mail
  Traditionally, your correspondence was only available at the post office. Web mail means that your mail is available whenever you’re online. You can send an email anytime, from anywhere and on any device.
• Traditional filing vs cloud storage
  Your files used to only be accessible at the office. With online or cloud storage, your files are conveniently available for you whenever you’re online at anytime, from anywhere.
• Traditional shopping vs online shopping
  When your physical business is only open at limited times and places then customers have a limited time frame to view and buy your products. With online shopping, customers can enjoy the convenience of being able to view products and shop anytime, anywhere and on any device.
• Traditional accounting software vs cloud accounting software
  With traditional desktop software, your data lives on your computer or laptop. This means it’s only available at limited times and on limited devices – and often to a limited number of people. With cloud software, your data lives online, so it’s always accessible from anywhere at any time if you have an internet connection. Good cloud software will also let an unlimited number of people use it at the same time.

Cloud myth busting

The cloud isn’t all rainbows and sunshine, we’re tackling the tough questions about cloud computing so you can be prepared before moving your small business to the cloud.

• Isn’t cloud computing just the internet?
  You use the internet to connect your device to the cloud, but the internet is just the connection – the cloud is where your data lives.
• Isn’t it possible to lose your data in the cloud?
  Your data is actually much safer in the cloud than on your computer. Your computer can be stolen or corrupted quite easily, but cloud companies spend millions on systems and experts to protect your data.
• Isn’t the cloud an Apple product?
  Apple has a product called iCloud which uses cloud technology, but many other companies provide products in the cloud such as Google, Dropbox and Xero.
• Aren’t you stuck if the internet goes down?
  These days, the internet is like electricity – it’s very rare for it to go down and when it does you just have to wait a short time for it to be available again. In the meantime, all your data is safe in the cloud.
• Isn’t cloud computing just a fad?
  The cloud has been around for years and it’s only getting bigger. Internet banking started over 15 years ago. Now the technology is so fast and cheap that it’s being used for everything.
• Isn’t cloud computing expensive? 
  It’s much cheaper because you only pay for what you use. You’re not paying for endless upgrades, system maintenance, support fees or additional hardware like backup systems.
• Don’t I lose control of my data?
  You actually have much more control of your data, since you can access, share and work with your info, anywhere, anytime, on any device. You also control who has access – which you can revoke in an instant.
• Isn’t the cloud only for tech people?
  The cloud is much easier for everyone – you just log in and it works. Imagine: you don’t have to install files, worry about versions, or deal with patches and upgrades. Just log in.

Let the cloud set you free

As you can see, the big benefit of cloud computing is that it lets you get at your data anytime, anywhere. The cloud breaks the chain between your office computer and your business information.

Need access to your business bank account while you’re on the move? No problem with the cloud. Want to buy office supplies while you’re on the train? It’s easy. Need to update your accounts while you’re out of the office? Now you can.

With the cloud there’s no need to keep all your files and applications on a single computer – no need to worry about backups, theft, data loss, support and upgrades. It’s all taken care of by dedicated teams of technical people. You no longer have to worry about what’s happening behind the scenes.

The cloud takes the stress out of computing. It lets you use computers, laptops, tablets, smartphones and other devices to access all your business information – seamlessly, securely and in real time. Just log in and go, anytime and anywhere.

Source: Xero

The post Understanding Cloud Computing appeared first on Mark Accountants.

The cloud is a collection of securely networked physical servers where customers upload and store data that can be accessed from anywhere. Cloud security protects against unauthorized access to data.

Millions of people (or in Google’s case, one billion) use Gmail, Flickr, Apple’s iCloud, and Microsoft OneNote every day. These services rely on the cloud to make sure you can access your pictures, email, to-do lists, and more from your internet-connected device. Cloud security ensures privacy in your daily life.

The convenience of the cloud is often measured against security, privacy and reliability. Here are some common questions about the cloud and information so you can determine the best solution for your business.

Where is my data stored?

You might picture cloud data floating somewhere in the atmosphere waiting for an app or platform to call it into use. The reality is less entertaining but much more secure. Cloud security protects physical devices created to house information while keeping it accessible at a moment’s notice. These data storage servers are lined up in large rooms or warehouses, connected to you via the internet.

Vendors often spread their servers across state lines, and in some cases, continents, so data does not reside in a single place.

When choosing a cloud provider, ensure your data storage will remain in compliance with financial industry rules and regulations.

How is my data protected?

Cloud vendors employ several techniques to keep your data safe. Copies of all your data files are typically stored in more than one geographic location so customers can maintain reliable access in the event of a fire, flood, or natural disaster that impacts a building full of servers.

Vendors like Amazon Web Services, Google and Windows Azure have government and business certifications and business processes that ensure cloud storage and security practices meet strict regulation and compliance standards.

The American Institute of Certified Public Accountants (AICPA), for example, created a set of international service organization-reporting standards known as SSAE 16 and ISAE 3402 to protect data in the cloud.

Organizations entrusted with their customers’ sensitive financial information have no margin for error and are required by law to protect data as fiercely as the banking industry.

What can I do to keep my cloud data safe?

Cloud service vendors go to great lengths to keep data safe (Google data centers tout laser beam intrusion monitors and biometrics as just some of their security measures) but you have an important role in the process, too.

According to a white paper by SkyHigh Networks, 89.6 percent of organizations experience at least one insider threat incident each month. This can be due to malicious activity, but usually consists of events where sensitive information goes to the wrong people.

Consider implementing a policy that requires users to change their password at regular intervals and employing platform tools that automatically log workers out of your system when not in use. Military-grade encryption, restrictive user permission levels and regular backups add additional levels of security to data stored in the cloud.

Cloud accounting data is at its most vulnerable when moving between storage servers and your computer or application. Cloud storage providers encrypt the data while it’s traveling back and forth by encoding it in ways that make it unreadable unless the recipient system has the key that unlocks the code. Most modern cloud-based platforms have decryption features built right into the platform.

Multi-factor authentication is a proven method of protecting customer data that requires users to verify their identity in more than one way to prevent unauthorized system access. It’s often as simple as setting the system to automatically trigger a verification email or text when they attempt to login.

Using activity and online activity monitoring tools can show you who’s accessing your system and what they’re doing once they get there. Vigilant monitoring will help quickly identify and troubleshoot security issues when they arise.

For an extra coat of armor against unauthorized intrusion, consider anti-malware tools. Many cloud-based platforms already include these features and they are also available for purchase from companies that specialize in data security.

Is cloud storage reliable?

Microsoft reports that 75 percent of business professionals it surveyed experienced better service availability after moving to the cloud. Cloud security and reliability is a concern for accounting firms, and one of the cloud’s biggest selling points in a crowded industry where reputation means everything.

What legal issues do I need to know about?

When you’re ready to move to the cloud, there are a couple of legal issues to keep in mind. The AICPA reminds accountants they are legally and ethically bound to protect their clients’ sensitive and confidential information. It recommends that accounting firms take care when selecting a cloud services vendor and writing a clause directly into the service contract requiring the vendor to “assume responsibility and legal liability for confidentiality of data.”

Forensic accountants have additional legal implications to consider due to the nature of their responsibilities to the judicial system.

What are some trends and best practices?

A Kforce survey of U.S. accounting organizations found 28 percent of respondents already invest in cloud services for financial applications and 20 percent are considering adopting it in the future.

Trey James, chief executive of cloud hosting service Xcentric told Accountingweb a few best practices for cloud storage:

• Be wary of malware. Clicking on links or opening attachments within emails from people you don’t know can lead to a data breach.
• Change your passwords frequently and don’t reuse passwords on multiple sites.
• Ask questions of your cloud service provider. Don’t hesitate to dig into information regarding security audits and regulations, off-site backups, physical security practices and two-factor authentication.

Source: Quickbooks

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