The Tax Practitioners Board (TPB) 2017/18 annual report highlights that only 95% of practitioners are compliant with all aspects of the law.
42,561 tax agents, 15,638 business activity statement (BAS) agents and 19,550 tax (financial) advisers regulated by the Tax Practitioners Board.
For the year ended 30th June 2018, 42,561 tax agents (RTA) and 19,550 tax (financial) advisers generated $330 million in tax planning revenue.
Subject to complying with the ATO amendment periods, all tax returns can be reviewed, and amended where necessary.
The ATO’s ‘Individuals not in Business Tax Gap Report’ has found that 78% of tax agent prepared returns have errors.
Taxpayers are often unhappy with the size of their tax refund, believing it should be bigger.
My Tax is at tipping point and accounted for 46% of all 2018 tax returns lodged up to 13/08/18.
Tax planning is the process used by individuals and businesses to structure their affairs to legally reduce their tax liability.For the 2018 financial year, the top 10 most used tax planning strategies are.
The 4 fastest growing Success Tax Professionals practices for 2018 achieved an average 77% fees growth.
Dogs can be a legitimate tax deduction when used for work or business purposes.
The TPB takes firm action if it determines that registered practitioners have not complied with their obligations under the TASA, including the Code of Professional Conduct (Code).
Low income earners can get their tax returns completed and lodged with the ATO for free through Tax Help.
The GST tax gap is estimated at $5 billion and is the difference between the theoretical GST liability estimate and the actual GST collected.
Garnishee notices are a tool used by the ATO to collect outstanding tax debts from delinquent taxpayers.
ATO tax debts, like all debts, are legally enforceable obligations. The ATO collects these debts on behalf of the Australian Federal Government.
Self-managed super funds (SMSF’s) continue to grow in popularity with 30,000 new funds eing established each year.
The Federal Government is legislating to allow the Australian Taxation Office (ATO) to disclose information on businesses tax debts to registered credit reporting bureaus (CRBs).
Compliance services are now completely commoditised. The commoditising of compliance services was inevitable really, and the only surprising thing is how long it’s taken.
As a taxpayer looking for a new tax accountant, you want to avoid the turkey and deal with an above average accountant.
Rob Nixon, in his latest book ‘The Perfect Firm’, asks this question ‘How long before a business owner does not need an accountant at all’?
In the UK in 1974, passive investment income was hit with a 15% investment income surcharge which took the top rate to an incredible 98%.
Without a doubt, if Australia’s company tax rate stays at the current 30% rate, then future overseas investments in Australia will be impacted and reduced.
Ground floor in the right area near anchor businesses is always superior. You don’t get walk-in business to level 1 as such.
The key to exceptional business results is consistency. If you do nothing else, be consistent. Provide predictable, reliable results every time.
To maximise client retention, you should do five things.
Client retention is about exceeding the client’s expectations so that they become loyal advocates for your practice.
Established practices have less funding needs than new practices as they are well established and producing ongoing revenue that covers the practice costs and owner’s living expenses.
Accounting practices, like all businesses, require funding to start, operate, and grow. The funding requirements of practices vary depending upon whether they are a new practice, established practice or an expanding practice. The practice funding can be provided by the practice owners from their personal savings and assets, through debt financing, or a combination of the two. With new practices funding is required to cover the initial practice set-up costs. These costs include the office fitout, office signage, furniture, equipment, Read More…
This strategy is about creating new services that you can provide to your existing client base. It is similar to the low hanging fruit strategy, but involves more work. The practice has to create the new services, train the staff on delivering the new services, and develop a marketing plan. When considering what new services to provide ask yourself two questions. Firstly, what service would provide immense value to existing clients? Secondly, does the practice team have the skills or Read More…
The first step to providing more existing services to existing clients is to identifying which services each client currently uses.
Value adding software tools include modules on budgeting, scenario planning, business planning, valuations, profit improvement, tax planning, risk management, etc.
A good pricing strategy is one which is a good balance between the price floor and the price ceiling.
Approximately 4% of accounting practices outsource overseas at least part of their clients accounting, taxation and superannuation work.
An accounting practice’s key performance indicators (KPIs) are the set of quantifiable measures that are used to gauge or compare performance.
The objective of debtor management is to minimise the time between issuing an invoice to a client and collecting payment in full.
Working capital management involves ensuring a practice has positive working capital so it is able to continue its operations.
Principals often spend too much time on activities that have no value. The Pareto analysis can be applied to time management.
As the business environment changes, practice owners must change. To not do so is to get left behind.
Without the discipline and focus on managing the business for maximum profit, standards and performance falls.
The professional development underinvestment occurs in the areas that are most important and critical to practice principals.
The Federal Government is once again looking at the abolition of work related tax deductions.
If we believe Sturgeon’s Law is true, then it goes without saying that 90% of accountants fit in that category too.
If a Purple Cow practice is not achievable, then being part of Sturgeon’s 10% of practices would still be a worthy goal. This would be financially rewarding of course with annual principal profits of $1m plus. If you are already achieving this, well done. If you are not, how do you get there? Firstly, you need to start with your strategy. If you currently have a stuck-in-the-middle strategy, you need to take Michael E Porter’s advice and chose one out Read More…
The number 1 sin for an accounting practice is failing to reinvest in the practice. Reinvestment can significantly increases net profits.
Buyers get a building inspection and a pest inspection report prior to buying their property but they don’t make an appointment to see their accountant.
At June 2015 the ATO advised that there were 556,998 self-managed super funds in Australia with 1,049,840 members. During the 2015 financial year 32,073 funds were established and 1,350 funds closed (by either the members or ATO). On 1 July 2016 the accountants’ exemption was repealed and ‘Recognized Accountants’ can no longer recommend the establishment or winding up of a self-managed superannuation fund unless they are appropriately licensed. Previously Regulation 7.1.29A of the Corporations Regulations 2001 permitted this without being Read More…
Two focus strategies for the accounting industry include narrow service line and customer segmentation.
The worst strategic error is to be stuck in the middle, or to try simultaneously to pursue all the strategies (i.e. low cost, differentiation, and focus).
Differentiation is the process of distinguishing a product or service from others, to make it more attractive to a particular target market.
Draw a line in the sand and commit to having 10% of the practice’s annual revenues coming from value added services within twelve months.