Visit to our Indian Team.


Visit to our Indian Team.

In mid July I visited our team in Ahemedabad, India.   Ahemedabad has a population of around 7 million and is the sixth largest city in India.

 

It was great to meet the team and get an opportunity to sit down with them, and visits the offices and see the out sourcing operation that is currently providing services to the US, UK, Australia and New Zealand.
The team work only for us, using our systems and procedures.  They are incredibly professional and well trained accountants, with a very strong knowledge of Australian accounting standards and tax law. The company, Bck Offis, is a subsidiary of one of India top accounting practices.
It was not all work and I got the opportunity to visit some amazing temples and taste a lot of the regional food which was fantastic.

However the best part of travel is getting to meet the locals.


I have to thank Namit, Hardik, Punit and the rest of the team for making me feel so welcome and showing me some of their amazing city.
I look forward to returning.

Recently we welcomed 2 staff members to the McAdam Siemon team.

Olivia has joined the McAdam Siemon team in the position of Reception to gain experience whilst she completes her accounting qualification.

 

Olivia has a background in Criminology and Criminal Justice and has worked with multiple community services organizations. Olivia also has experience in accounting administration having worked for a private accounting firm in the past.

She has recently taken on completing a Master of Professional Accounting as she wishes to pursue a career in Tax Accounting.

She brings with her a passion for customer service and a keen interest in tax accounting.

Madeline joins the team as an Undergraduate Accountant.


Currently completing her final semester at the University of the Sunshine Coast, Maddy will be assisting Samantha O’Rielley in our bookkeeping department.

Preparing your Management Rights for Sale

          

Preparing your Management Rights for Sale

This week the RAAS group held a conference in order to educate all those interested in preparing their business for sale.  A range of speakers from different specialties, [Accounting, Legal & Banking], were invited to speak to the group at the Maroochydore Surf Club.  Peter O’Rielley from our firm was invited to provide that specialist advice.  From all reports the conference was well attended and participants took the opportunity to educate themselves on some of the issues that need to be considered when preparing for sale.  If you were unable to make the conference but would like to hear more about how McAdam Siemon can assist in this area, then please give Peter a call.

Updated Form  6 from 1 August 2016

 

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Updated Form  6 from 1 August 2016
Version Number will change to Form 5

The Office of Fair Trading (OFT) has released another version of the Owners Agreements [Form 6] commencing 1 August and replaces the previous version.

The previous version lasted only 1 month, so please take note, it will be superseded when issuing new owner agreements from 1 August.

All previous PAMDA 20A’s and Form 6’s that have been issued prior to this date of course remain in effect and can continue to be relied upon.

Therefore, any new agreement you enter with new owners, the Form 6 that you are required to complete from 1 August 2016, must be on the latest “Form 6 V5 1 August 2016” in order to be valid.

Click here to access this form

New ASIC fees for the 16/17 year

 

New ASIC fees for the 16/17 year.

To Register a New Company

$469.00 (was $463.00)

Late lodgement fees

If paid within 1 month after payment due date –$76.00 (was $75.00)

If paid after 1 month of payment due date –$316.00 (was $312.00)

Annual Review Fees

Proprietary company –$249.00 (was $246.00)

Special Purpose Company –$47.00 (was $46.00)

Change Company Name

$387.00 (was $382.00)

 

Voluntary Deregistration
$38.00

 

Ransomware Alert

Ransomeware Alert

Earlier this month, we were alerted by our IT guy regarding a computer virus raring its’ ugly head again.  This virus comes in an email format and has an attachment that if opened is a virus with ransomware.  This is where the virus locks your entire system and you have to pay a Ransom for it to be unlocked. He has advised that in most cases these viruses can cause huge amounts of damage and down time for our business.

We suggest that you check with your IT Provider that they have implemented policies to lock down systems and also implemented multi – layer protection and ensure good backups.

Employer Alert

 

Empolyer Alert 

The end of the financial year is only days away

Employer Alert

As an employer you need to:

  1. Provide PAYG Payment Summaries to your employees by the 14th July 2016.
  2. Please ensure you send the ATO, your PAYG withholding payment summary annual report by the 14th August 2016.
  1. Use the latest tax rates to calculate employee withholding tax from 1st July 2016. While there have been no changes to tax rates for 2016/17, to check the latest rates, go to ato.gov.au/taxtables
  1. Ensure your accounting software payroll rates are updated from the 1st July 2016 and the file is ready for the first pay run of the 2017 year.
  1. All employee Superannuation Guarantee Charges have been met for the 2015/16 financial year. Please note the June Quarter SGC is due by the 28th July 2016.

 

If you have any questions on your EOFY obligations to the ATO, please do not hesitate to contact us.

Payroll End of Year Processing in Xero

Xero – Year end Payroll procedure – Payment Summaries and Lodgement with ATO

It’s That time of year again, end of year and time to process your PAYG Payment Summaries.

Following a step by step process, your payment summaries can be generated and issued to the ATO using your Xero.

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Payroll End of Year Processing in Xero

Step 1:

Checking your payroll settings

  • Select Settings from the main toolbar. Go into General Settings
  • Organisational Settings

Check the details are correct, make sure the Trading Name is the correct name, as this is what will show on the payment summaries

  • Save and close
  • Select Settings from the main toolbar. Go into Payroll Settings
  • Organisation – Check the correct accounts are linked to Pay Items
  • Pay Items – Check pay items have been set up as the correct type
  • Check the W1 checkbox settings are correct in the pay items; this can be found by selecting the individual Earnings Name and editing the earnings rate
  • Select Payroll from the main toolbar
  • Employees
  • Check each employee for accuracy (TFN, DOB, and Address)

Step 2:

Pre-Reconciliation Checks

  • Check all pay runs for the financial year have been posted
  • Check all wages have been paid through the business bank account
  • Check the payment dates for the pay runs march those to the bank payments

Step 3:

Reconciling payroll totals to general ledger accounts 

  • Select Reports from the main toolbar. On into Reports
  • All Reports
  • Payroll Activity Summary report
  • Check that the following items match

 

In your Payroll Activity Summary In your General Ledger Summary
Total Earnings Should match Total Wages & Salaries
Total Super Should match Total Superannuation
Total Tax Should match Total PAYG Withholding Payable

 

If any of the balances don’t match check your pay run history to find the pay run with the error and process any necessary adjustments.

Step 4:

Identify & correct errors

Make corrections for any discrepancies found.

  • If any adjustments need to be made, a new pay run will have to be processed.
  • Use an unscheduled pay run to make any corrections to a processed pay run.
  • You can adjust a pay run for missed pay items, or reverse and re-enter an incorrect wage item.
  • You can also use an unscheduled pay run to process a negative pay run to reverse incorrect wages & taxes.
  • You can go back 8 pay periods from the current date when adjusting a processed pay run.

Step 5:

Employee payment summaries

  • Select Payroll from the main toolbar.
    • Go into Employees
    • Payment Summaries
  • Check that your organisations name, ABN & postal address information is correct.
  • Enter the Signatory name & add the contact number, then select Confirm & Continue
  • Select the Financial Year Ending
  • Review the Gross payment, PAYG, allowances and amounts allocated based on your payroll data
  • Identify & fix any payment summary errors
  • Enter any RFBA from your fringe benefits tax return to each employee if applicable
  • Enter any additional Lump Sum amounts paid if applicable
    • You can preview the payment summaries before you publish
  • Select all employees
  • Select Publish
    • Once you have published the payment summaries select ‘Send to employee”
    • You can now print them PDF or email them to your employees 

Lodge the report to the ATO through Xero 

  • Select Payroll from the main toolbar.
    • Go into Employees
    • Payment Summaries
  • Select Confirm & Continue
  • Select all employees and select File Now
  • Select the Authorisation to File declaration check box
  • Select File Now

The annual report is filed at the ATO if all payment summaries are accepted. If it can’t be filed, you will need to fix the relevant payment summaries & submit the file again.

Once you have sent the annual report to the ATO, your end of year payroll process is complete.

Warning on Bank advice to business owners

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Warning on Bank advice to business owners

Some banks are advising customers with business accounts to transfer excess cash to pay down the business owner’s home loan.  While it might sound like common sense to use the excess cash in your business, there are significant potential problems for business owners who do this.
Money in your business account is the money of the business, not your personal cash.  You can’t just take it out and move it around at will, even if it is your business.

If you run a company, there are a set of tax rules called Division 7A that apply.  Division 7A is a particularly tricky piece of tax law designed to prevent business owners accessing funds that have not been taxed at their individual tax rate – only the corporate rate.  While these amounts are often debited to the shareholder’s loan account in the financial statements, Division 7A ensures that any payments, loans, or forgiven debts are treated as if they were dividends for tax purposes unless there is a valid shareholder loan agreement in place.

So, if you take money out of your company bank account to pay down your personal home loan, this amount might be treated as a deemed dividend.  That is, you need to declare this amount in your personal income tax return and the dividend is not frankable. This means that even though the company might have already paid tax on this amount, you will be taxed on it again without the ability to claim a credit for the tax already paid by the company (basically leading to double taxation).

 

If you have taken money out of the company account for personal purposes you can either pay back the amount or put a complying loan agreement in place before the earlier of the due date and actual lodgement date of the company’s tax return for that year.  To be a complying loan agreement the agreement requires minimum repayments to be made over a set period of time and the minimum benchmark interest rate to apply – currently 5.45%. The rules are also very strict when it comes to loan repayments because these can actually be ignored if it looks like you are planning to borrow a similar or larger amount again from the company.

A similar issue can also arise if you transfer funds from a trust bank account, especially where that trust already owes amounts to a related company in the form of unpaid distributions.

The material and contents provided in this publication are informative in nature only.  It is not intended to be advice and you should not act specifically on the basis of this information alone.  If expert assistance is required, Please do not hesitate to give us a call.

(Courtesy: The Knowledge Shop)

Using EOFY to strengthen your business

McAdam Siemon Business Accountants Upper Mt Gravatt, Noosa Heads & Maroochydore. Specialising in Accounting, Taxation, Management Rights, SMSF Administration, Business Advisory, Business Valuations , Management Rights specialist accountants

Using EOFY to strengthen your business

(source: Sean O’Meara) 

With the end of the financial year quickly approaching it is critical that small business owners use this time to make a strong plan for the year ahead. It is vital to analyse your business and try to find any opportunities and improvements that can be made, no matter how small they may seem.

The additional administration time required at EOFY can make the lead up to 30 June extremely stressful. So the keep your business goals in check. Here are some strategies that will improve your business to maximise your growth in 2016/2017.

It’s time to review your businesses situation 

You are probably already using reporting throughout the year to track your revenue, gauge your sales trends etc but it is important to take a second look at how your business performed on the whole and compare this to previous years.

“By looking at year-on-year sales and revenue we can see how public holidays or seasonal changes affect the business and enables us to do more accurate forecasting, rostering and budgeting for the year ahead. It also helps us make informed decisions on whether to spend now or later,”

Take advantage on the low interest rates

Interest rates remain low so it could be an opportunity to invest in capital equipment and paying off debts. 

Review business partners and suppliers

Ensure you are getting an excellent price for quality products. New businesses keep coming into the market, so be sure to do your research and renegotiate with your present partners and suppliers.

Your customers are probably reviewing their own strategic plan and making changes for next year so don’t forget to let them know that their business matters to you.

Take a long – term view of your cashflow 

  • How is your cashflow?
  • Is your business seasonal, with peaks and troughs?

Do some advanced planning -review your budget and anticipate what may happen in the year ahead. It may be all that is needed to free up liquid assets and ensure ongoing profitability. This is the best way to ensure you have safeguards in place to keep your business afloat during low times. 

Capitalise on tax breaks 

  • Have you any expenses that can be pre-paid?
  • Think about maximising your superannuation contributions to the relevant caps.
  • Consider investing in areas that will support your business; new equipment and/or technology that will provide your business with greater efficiencies and productivity The Government still has an immediate tax deduction on assets coasting less than $20,000.

Don’t hesitate to give us a call if you would like to discuss anything EOFY’s.

Kind regards

The Team at McAdam Siemon

Pushing too hard with deductions!

In 2014, a Sydney man had to pay a hefty penalty after the ATO discovered he was falsely claiming thousands of dollars on work related expenses.

McAdam Siemon Business Accountants Upper Mt Gravatt, Noosa Heads & Maroochydore. Specialising in Accounting, Taxation, Management Rights, SMSF Administration, Business Advisory, Business Valuations , Management Rights specialist accountants, If you push too hard the tax man will get you.

If you push too hard with deductions the taxman will get you.

This guy worked as a salesperson and under the conditions of his employment he was able to work from home. He was advised by a Registered Tax Agent.

The dispute arose out of an audit of his tax affairs triggered by his 2010 tax return in which he declared a taxable income of $21,377, and claimed deductible items to the value of $97,162.

The ATO disallowed various tax deductions for the 2011 and 2012 financial years.

The tax office also imposed a penalty on the basis that he or his agent had “failed to take reasonable care or comply with tax law when claiming work related expenses”.

The sales person disputed this and took the matter to the Administrative Appeals Tribunal.

Here are examples of some of the expenses he tried to claim deductions for:

  • Thousands of dollars for secretarial services completed by his son. (His son was around 7-years-old at the time)
  • Thousands of dollars of groceries as work related expenses (The groceries included cheese in a can and 39 packets of Monte Carlo biscuits.
  • Clothing, rubber soled shoes, dry cleaning, sunglasses, broad rimmed hat and sunscreen (just to name a few!)
  • Home office expenses
  • Other work related expenses

To read the full rulings click on the link below.

To find out more, please contact us

So, what are the deductions you can claim?

(Source: ATO, 14 March, 2016)

When completing your tax return, you’re entitled to claim deductions for some expenses, most of which are directly related to earning your income.

To claim a work-related deduction:

  • you must have spent the money yourself and weren’t reimbursed
  • it must be related to your job
  • you must have a record to prove it (there are some limited exceptions)

If the expense was for both work and private purposes, you can only claim a deduction for the work-related portion.

Follow the links below for specific deductions you can claim:

The staff at McAdam Siemon will get your deductions right because we have the checks and balances in place.

 

 

If you have one employee but less than 19

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If you have one employee but less than 19, You must be Super Stream ready by 30 June 2016

  • Do you have 19 or fewer employees?
  • Are you an SMSF Trustee? Self-managed super funds (SMSFs) must be able to receive employer contributions and the associated data electronically.
  • APRA – regulated funds

From 1 July 2016, the ATO’s SuperStream standards are set to be enforced.

A reminder:

  • If you are a larger employer, you should already be using SuperStream.

A Brief Overview

These new rules require employers to pay and report contributions to superannuation funds electronically. Both the payment and the reporting will need to be completed on the same day.

  • These measures don’t apply to individuals who are making personal contributions direct to their superannuation funds, only employers.

SuperStream will make it easier for you. 

  • You need to use SuperStream when paying employees super.
  • With SuperStream contribution payments are made electronically and you can pay all your employees super; sending all their information through one clearing house; saving you time and effort.
  • Providers must be approved by the ATO and are listed on the ATO website.

You should have already started transitioning by choosing an option to make super contributions electronically: 

  • Your payroll system
  • Your super funds online system, or
  • The Small Business Super Clearing House (SBSCH). This is a free service administered by the ATO whereby you can make super guarantee contributions as a single payment to the clearing house and it distributes the payments to the employees fund/s.

Next: You need to collect the following information on your employees. 

  • Their Tax File Number (TFN) and,
  • A Unique Super Identifier (USI)
  • Super fund ABN
  • For employees who have selected a SMSF for their contributions, they will also need to provide their Fund’s Bank Account details and Electronic Service Address (ESA)

Once this is done, these details must be entered into your preferred clearing house site.

For new employees, the ATO has updated the Super Choice form to include collection of the extra information required.

Start using SuperStream as soon as this process is completed so that any problems can be solved before 30 June, 2016.

If you any questions on setting up SuperStream super contributions for employees, please contact McAdam Siemon.

GOLFING GREATNESS

 

Golfing greatness….
We all strive for it don’t we?

Well I do anyway!  That perfect round where everything drops and you split the fairway every time.  I have been trying for close to 17 years for that one round and it still eludes me; not from lack of trying I might add, probably more so the lack of ability hinders me.

I love golf. I’m a golf tragic and happy to admit it! I would probably prefer to talk about golf with someone than pretty much anything I can think of.

So when the opportunity came about to become involved with the Australian PGA; its members and the golfing industry; I jumped at the chance.

Last year PGA Australia undertook a program on behalf of its members to offer a network of preferred service providers to the industry.  I was part of an intense two – day program exploring the golfing industry as a whole and how it could be better serviced.

The main focus was on PGA Australia members, which include, touring (playing) pros, coaching pros, pro shop owners, and general golfing retailers and support sectors.  This was a valuable process and built on the knowledge of the industry I had already accumulated.  Further work with PGA Australia followed and has resulted in McAdam Siemon Pty Ltd becoming a registered preferred supplier to the golf industry.

In order to build on this foundation, it was necessary to get the word out on the street, to promote the services to the industry.  What better way to do it than through a PGA member.

We chose to sponsor Matthew Field, who has been a PGA member for a number of year now and is searching for his break on tour.  Matt has played in a number of events around Australia and internationally.  Matt is also a key member of the Golf Queensland team and organises many of the events for amateur golf around the state.  We welcome Matt to the McAdam Siemon Team and wish him all the best for the coming year. We hope it is a successful one for him!!

If you would like to read more about Matt and his adventures visit his website at mattfieldgolf.weebly.com.

I have already had the pleasure of working with a number of PGA members so far and the experience has been fantastic.
The industry seems to be growing to high levels and it takes professional members with great knowledge, skill and attitude to succeed.

I hope to offer valuable ongoing support to the industry and its members for years to come, and maybe sneak a few extra rounds in here and there!

If you ever want to chat about Golf, drop me a line.

Happy Golfing

Jordan Spieth World #1 (Left)  Matthew Field (Right)

GST Ruling on Reimbursements

 

McAdam Siemon Business Accountants Upper Mt Gravatt, Noosa Heads & Maroochydore. Specialising in Accounting, Taxation, Management Rights, SMSF Administration, Business Advisory, Business Valuations , Management Rights specialist accountants.

 

GST Ruling on Reimbursements

A decision has recently been handed down by the Administrative Appeals tribunal (AAT) regarding the claiming of tax credits where a property manager was acting on behalf of a property owner.
The agent in the case had been claiming GST credits on expenses they had paid on behalf of the property owner that were related to the maintenance and care of the owner’s property.

The AAT has stated as there is an agency relationship’ between the real estate manager and the owner of the property, any expenses paid to 3rd parties on behalf of the owner of the property could not be claimed as credit on the activity statement (BAS).
These GST credits (GST on purchases) were not allowed to be claimed for these transactions by the agent. The owner would be allowed to claim the GST credit – if the owner of the property was registered for GST. If they are not – the GST credit is lost, and increases the expense claimed on the tax return.

By way of example – the manager of a resort hires a contactor to make repairs to a unit of $1100.00 inclusive $100 GST. This $100 is not allowed to be claimed by the manager of the resort on their BAS. This is to be put into trust accounting software as a GST free purchase. Correspondingly, any reimbursement made to the manager by the owner of the unit must be treated as GST free sale.
By treating this transaction as a GST free purchase in the trust accounting software, it will be then entered into the Managers MYOB/Xero program without GST, insuring that there is no GST being claimed when the BAS is being prepared!

If you would like to discuss your current treatment of reimbursable expenses please don’t hesitate to contact our office for assistance.

2016 represents the 20th year of McAdam Siemon

Well Christmas seems but a distant memory and Easter is just around the corner (I think Hot Cross buns hit the stores on 6 January), kids are back to school and the year is well and truly underway.

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2016 represents the 20th year of McAdam Siemon when John  and I opened our doors on 1 January 1996 at Kangaroo Point and a hole in the wall at Noosa Junction with 4 staff. 

Today we operate out of Upper Mt Gravatt, Noosa Junction and have just opened an office in Buderim.  Sam Hodgetts joined us as a partner in 2013, having started work in the Noosa Office and 12 staff.

It has been an amazing 20 years with us still acting for clients from our inception.

John, Sam, and I certainly appreciate and never underestimate the loyalty shown by our clients through the good times and bad. (luckily lots more good times.) 

This year the team at McAdam Siemon will be focusing on working with our clients so that they can focus and achieve your goals.

To help you achieve this we have developed a number of tools that will allow you to have a better understanding of your business and focus that is required. 

1. Breakeven analysis

2. Using your accounting package effectively and efficiently to save time and money. 

3. Tax planning tool

4. Fathom – to truly understand your business and set goals 

We will discuss these in more detail in future newsletters and of course our experienced team will discuss them in more detail when they meet with you. 

We look forward to our continued close working association with you.

Tax file numbers (TFN)

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Forwarding documents with Tax file numbers

As you would be aware Privacy laws were significantly strengthened a couple of years ago with substantial penalties for both individuals and corporations who breach the rules.
One of the areas covered is dealing with tax file numbers.
It is now assumed that sending of emails is not a secure form of communication.  The tax department is taking a stronger stance on the sending of documents with TFN’s and there are cases of where tax agents have had their licences cancelled because of privacy breaches.
Our system does allow for tax returns to be printed with the TFN’s left out
For this reason we have established the following rules:

  1. No document will be emailed with TFN’s attached
  2. Any document that requires the TFN to be retained will either be posted or uploaded to our secure portal area which you can access via a password.
  3. Annual tax returns, if been emailed, will be sent with no TFN’s attached however your name, entity details will be shown to confirm that the return provided is the correct one.

 
If you have any questions or concern please do not hesitate to contact one of the team at McAdam Siemon.

Brisbane: 07 3421 3421

Noosa Heads: 07 54748955

Buderim: 07  5408 4622
 

A new office in Buderim

McAdam Siemon Business Accountants Upper Mt Gravatt, Noosa Heads & Maroochydore. Specialising in Accounting, Taxation, Management Rights, SMSF Administration, Business Advisory, Business Valuations. New office

We are excited to let you know that McAdam Siemon has a new office in Buderim, saving a huge commute for those of you that travel a long way to visit our Noosa office.

This will allow us to provide you with services more conveniently.

Susan and Adam will be working from the Buderim office  and John will be there each Wednesday or when appointments are made.

For those of you that like to meet either John, Sam or myself at the coast and this office is closer to you, please don’t hesitate to make your appointments with us at Buderim.

Middy’s Complex
Shop 16
29 Main Street
Buderim  Qld  4556

 There is off street parking available.

How to use the EOFY to strengthen your business

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How to use the EOFY to strengthen your business

Many small business owners fall into the trap of managing business operations in a routine way without looking at their “side mirrors” or “blind spots” where new opportunities might come into view. However, with the End of Financial Year just around the corner, it’s crucial small business owners use this time to take stock and analyse the business to try and find small opportunities or improvements that could be made, and make a strong plan for the year ahead.

It can be hard enough to run a small business at the smoothest of times, but the additional administration burden at EOFY can make the lead up to 30 June an extra busy and stressful time of year for many owner-operators. However, in order to keep your business goals in check, it pays to be aware of the strategies and opportunities that will improve your business and maximize growth over the next 12 months.

Here are six ways that SMEs can use the EOFY to strengthen their business.

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