Religious Organisations and Tax

Though most organisations pay tax on their taxable income, religious institutions are exempt from this liability. In addition, certain fringe benefits paid to religious institution employees may also be exempt and non-taxable (TR 92/17). The most common examples of religious institutions include churches, mosques and temples. Having said that it does not need to be limited to the more commonly known religions. TR 92/17 describes the requirement that “A body is an institution for the purposes of both the ITAA Read More…

A Good Office is an Accountant’s Best Investment

Good offices have the following five characteristics: Easily to find Clients seek convenience, so choose an office that is easy to get to.  If you are in a hard to find location potential clients most likely will not seek you out at all. This is especially so if you have other accountants nearby in more accessible locations like near a shopping centre for example. Excellent exposure Even when you are in a good location you also need to be at Read More…

What I Want from My Tax Accountant as a Small Business Owner

I run a digital marketing business, Pixelpi. As a small business owner, I don’t have a lot of time to spend on accounting. In fact, my time literally equals money. It’s a double edged sword. The more time I spend on accounting, the less billable hours I can do. The less time I spend on accounting, the more money I lose through lapse accounting knowledge and application. It is therefore essential that I can trust and rely on my accountant Read More…

Four Ways Accountants Are Destroying Their Practices

Accountants, like all business owners, can become complacent and run down and destroy their practices profitability and eventual sale value. The four most common ways to destroy accounting practices are: Failing to reinvest in the business. There can be the temptation in business to run it excessively lean and draw all the cash out and limit reinvestment. As Woolworths Ltd is currently demonstrating, this is fine for a few years but eventually the under investment takes its toll and profits Read More…

Five Strategies to Grow a Compliance Practice

Compliance based accounting practices that want to grow their practice revenue and be financially rewarded should: Firstly, recognise that the world has changed and that compliance based services will not have the demand and profit margins that they have historically had. As the compliance fees revenue is stagnating or falling the costs of providing the compliance services needs to be intensively managed. All the costs, especially the labour costs, need to be reduced. This can be achieved by working more Read More…

Digital Disruption Affecting Compliance Accounting

Unfortunately for compliance based practices, the technology and digital disruption affecting many industries is starting to impact on the compliance accounting practice. Compliance fees in some practices are starting to fall year in year out, and for other practices basically stay stagnant. In either situation, both of these outcomes will reduce practice principals profits over time. The stagnating or falling compliance fees are the result of: myTax – Twenty five percent of all tax returns are currently lodged with the Read More…

Can Your Business Benefit from the Pareto Principle

The Pareto Principle (also known as the 80–20 rule) states that, for many events, roughly 80% of the effects come from 20% of the causes. It is named after Italian economist Vilfredo Pareto, who, in 1896 published a paper that showed that 80% of the land in Italy was owned by 20% of the population. Pareto developed the principle by observing that 20% of the peapods in his garden contained 80% of the peas. It is a common rule of Read More…

The Code of Professional Conduct (Code)

The Code of Professional Conduct (Code) regulates the personal and professional conduct of all registered tax agents, BAS agents and tax (financial) advisers. The 14 principles in the Code are: You must act honestly and with integrity. You must comply with the taxation laws in the conduct of your personal affairs. If you receive money or other property from or on behalf of a client, and you hold the money or other property on trust you must account to your Read More…