Monthly Archives: April 2015
Often the most interesting discussions with clients are the ones about how they do what they do.
Common discussion points that we have with our clients include:-
- Do you have standard processes and systems?
- Do these systems handle permutations and identify exceptions?
- Is your team properly trained?
- Does your team have proper tools and equipment?
- Does you hold sufficient raw materials?
- Do you agree to start the work only when your customer/client has supplied all the necessary instructions/information/specifications?
- Do you need checklists for particular tasks or clients?
- Do you meet with team members to check how client/customer work is progressing?
- How do you communicate progress and issues with clients/customers?
- Is the completed work reviewed before it is delivered?
These are just 10 common questions (and they often lead to many other questions and considerations). There of course many other considerations and some that are unique to certain industries.
How well have you addressed the issues that relate to your business? Some people are consumed by being too busy and never stand back to address such important issues such as these. We have many years experience with a wide range of clients and can help you both discover the key issues in your business and provide options and solutions. We welcome your call.
In 2012, we sent out a warning e-mail to our clients in respect of the then new unclaimed monies regulations.
Since then, the balance of any bank account unused for more than 3 years is transferred to the government.
As it is not easy to reclaim one’s money as what one might think and as it’s coming up for 3 years since our reminder, we again remind you to either transact on any dormant account or close it. Please remember that charges debited or interest credited by a bank to your account do not keep an account active. You need to either make a payment from or deposit into an account for it to be considered active.
If you want to know more or undertake a search on a closed bank account, go to http://tinyurl.com/qjozgon
It never ceases to amaze how many new business clients have their cars owned the wrong way. Not that they should know – but their former accountant should have, but for some unknown reason, never bothered to advise their client!
So what is the best way to salary package a car? There is no single answer that applies to all. It is simply a matter of analysing a client’s situation to work out what is best for them.
If one is provided with a passenger car by one’s own business run through a company or trust, then Fringe Benefits Tax (FBT) tax rules apply. There are two stages in determining the outcome – and two chances to maximise the outcome.
The first step is to choose which of the two methods to use to determine the value of the car fringe benefit. The benefit can be valued under either the log book method or the statutory formula method. I view the log book method as it is what it is. The only advantage of having a car provided by one’s own business rather than in one’s name is that is that GST can be claimed back. For many though, the statutory formula can be most generous. All that matters is how many kilometres are travelled annually; the actual split between business and private doesn’t matter as an implied business use is assumed. For those with a low percentage of work travel, they can effectively claim a much higher work percentage – and it is audit proof (provided the right declarations are completed).
The second step is to determine the best way to extinguish the fringe benefit value. Paying FBT tax is rarely the best option as it equates to the highest marginal tax rate.
That said, we recently advised a client on how to salary package their next car. They were looking at an expensive car and were in the top marginal tax rate. By structuring the package in the most optimal way, we estimate the client will be $1,800 to $2,800 better off in each of the next 4 years. So after 4 years, they will have had an average of $9,200 more in their pocket. Quite a good result indeed.
We would welcome your call to see how we can make you better off.