EBIT and EBITDA – what’s the difference
If you’re buying a business in Perth, understanding EBITDA and EBIT is essential to both you and your Perth business accountant. Both EBIT and EBITA give insight into a company’s profitability and financial health. This analysis is needed when making decisions about growth, financing, or even a potential sale. This blog explores the difference between […]
Tax impacts of subdividing the family home
If you are dealing with large amounts of money, taxation will always be on your radar. In Perth, the subdivision of the family home is a large financial transaction, so the tax impact of subdividing the family home will always be front of mind for a successful business-focused family and their tax advisors. Does income […]
4 Reasons to Use a Company Trustee for your Discretionary Trust
It is well known that a family trust has many benefits beyond tax. So, when a Perth business accountant discusses tax law structuring for family trusts, one of the first essential questions raised is: Who should be the trustee of my discretionary trust? The choice of a trustee significantly impacts succession, tax efficiency, asset protection […]
Understanding how capital works tax deductions can help property investors
Property depreciation is a non-cash tax deduction available to the owners of income-producing properties. It is one of the few tax benefits that Perth tax accountants can discuss with their clients, and it does not require the ultimate cash payment to enjoy. As a building ages, items wear out—they depreciate. The Australian Taxation Office allows […]
Tax traps for Perth SMEs with offshore staff
It is common for SMEs based in Perth to send their staff and team overseas while operating a business. Or if staff choose to work remotely in another country. It is important to gauge the tax traps that Perth SMEs can encounter when their team is working offshore. The simple case If you send your […]
Engaging a private CFO for your family
Many Perth business owners recognise the benefits of using a CFO for their business operations. From forecasting cashflow to structuring deals in Perth, business accounting, managing tax compliance, and setting long-term strategy, an engaged smart business CFO helps drive the operations and success of a successful professional family business. Using the Business CFO as a […]
How GST affects offshore SME’s in Australia
As a non-resident SME doing business in Australia or operating with an Australian investment portfolio, GST is a tax that many SMEs consider very important. Managing your GST and BAS obligations is essential if your Australian SME operations are in Perth or across Australia. If you do not properly manage your GST obligations, the cost […]
How to Build a 3-way Forecast in Excel
What is a Three-Way Forecast? A three-way forecast, also known as the three financial statements model, is a financial tool that consolidates three essential reports into a single, comprehensive forecast. It integrates your financial statements – your Profit & Loss statement (income statement), balance sheet, and cash flow projections to provide a holistic view of […]
Tax consolidation: 7 benefits and downsides for Perth SME’s
The tax consolidation rules in Part 3-90 of the Income Tax Assessment Act 1997 offer Perth SME’s and their business accountants a range of benefits. This is especially so for private groups, family businesses, and small to medium enterprises (SMEs). The article will address the following topics: A. Pro’s and Con’s of Forming a Consolidated […]
Family Trust Elections and Family Trust Distribution Tax: What You Need to Know
Family Trust Elections (FTEs) and Family Trust Distribution Tax (FTDT) have been integral components of Australia’s income tax framework since 1998. While tax professionals across Perth, such as lawyers and accountants, should be well-versed in these concepts, it’s essential not to let familiarity lead to complacency. As families evolve and children grow, establishing new tax, […]