Tag: Belmont accountant

What is the Difference Between a Super Fund and a Self-Managed Super Fund?

Superannuation (or super) is a strategy to save our money for the future, while we are working.

It’s needed for and greatly appreciated as an income stream in retirement. Super is compulsory for all people who have worked and reside in Australia.

Generally, you can either be part of a standard, industry super fund, or you can have a self-managed super fund (commonly abbreviated to SMSF).

Want to know the key differences between a super fund and a self-managed super fund?

Read more from the Belmont accountant team at Llara Tax & Accounting to find out.

What is a standard super fund?

A standard super fund, also known as an industry super fund, is a low to medium cost accumulation fund. As non-for-profit funds, this means the profits made are put back into the fund.

Many bigger super funds allow anyone to join. However smaller funds may have more restricted member screening purposes, like only members working within the health sector.

Advantages:

  • All profits are put into the fund for its members to benefit from,
  • Compliance risk is assumed by the professional licenced trustee,
  • Funds are not-for-profit,
  • Generally open to everyone, and
  • Run by industry associations and members.

Disadvantages:

  • There’s a limit to your investment options, and
  • Less individual flexibility and freedom to choose specific investments for yourself.

Where people often miss out, is by not changing their super funds as they switch careers or advance in their career.

What is a SMSF?

A self-managed super fund is a super fund that’s private to you (or a maximum of 3 other members), where an employer puts your super into, but you manage it.

Advantages:

  • There’s a range of investment options,
  • Concessional tax rate benefits,
  • Consolidation of superannuation assets is available,
  • Flexibility in accumulation, pension accounts and estate planning,
  • Transparency, and
  • The ability to add value to your super through property.

Disadvantages:

  • All reporting obligations such as financial statements, tax returns and independent audits is your own responsibility,
  • Any annual valuations of assets if and/or when required is the responsibility of the member(s).
  • It takes a lot of time to run a SMSF,
  • The member(s) is responsible for keeping up to date with any and all super law changes,
  • And the annual cost of running a SMSF is $13,900.

A SMSF might be the right choice for you if you have researched your investment options extensively, have the time, understanding of and ability to cover the costs associated with operating one.

There’s no one size fits all when it comes to super funds and their suitability for you now and in your future. However, consulting with an advisor will ensure you make the right decision.

A Belmont accountant is here to help

Llara Tax & Accounting are your local Belmont accountants here to help you understand and utilise the best super and taxation strategies for your current and future needs.

Contact Llara Tax & Accounting today for professional advisory services, including utilising the best superannuation strategies for your needs.

References:

https://www.bottomlinecontrol.com.au/info/smsf-vs-industry-fund-which-is-the-best-option-for-your-superannuation

Things to Consider When Choosing a Business Accountant

Whether you’re fresh into the world of business, or feel like you need better accounting solutions, a business accountant will be one of your greatest assets.

A business accountant exists to record, analyse, interpret and report your business financial information. Essentially, the role of a business accountant is to help you keep track of your business operations.

There are many different accountants in Perth, and when you’re looking for yours, it’s important to choose the right fit for you.

If you need the help of a business accountant but aren’t quite sure where to start, read more from the Belmont accounting team at Llara Tax & Accounting for some things to consider and important questions to ask.

Is the accounting practice qualified?

Do your research when it comes to finding the best business accountant. The best place to start is finding out if they’re qualified to handle your business affairs professionally and legally.

This means seeking out and choosing a business accountant that is a member of a recognised professional accounting organisation like:

  • Chartered Accountants Australia and New Zealand
  • CPA Australia
  • Institute of Public Accountants

An alarming reality is that in Australia, the term ‘accountant’ is not regulated. So, it’s up to you to ensure you choose the right accountant for your business requirements.

Important questions to ask

When looking for the right business accountant for your needs, don’t be afraid to ask these questions:

  1. What is the size of the accounting practice? Will this impact the levels of service received?
  2. Who will be handling your confidential business information and what are their professional qualifications?
  3. Does the business accountant have specific knowledge of your particular industry?
  4. Can the accountant provide sound business advice (i.e. business financial management and financing)?
  5. Will the accountant endeavour to return your calls and enquiries in reasonable time? How accessible are they?
  6. How long will the accountant take, on average, to complete your work?
  7. Is the accountant and its firm up to date with the latest accounting software and technology?
  8. Do they publish any newsletters or other periodic communications that may be of interest to your business?
  9. What is the hourly rate of the accountant and what are the terms and conditions on how fees are charged? Will you be charged for every phone call and/or travelling time?

It may be tough to ask these questions (and more) to a potential business accountant, but it doesn’t have to be. A business accountant and its accounting practice should work for you and encourage these types of questions and provide you clear, honest answers.

If they don’t, it’s time to look elsewhere.

Consider a business accountant where your business is priority

Llara Tax & Accounting have the confidential, professional and personalised business tax and accounting services you need.

Allow us to help you.

Our team of professional Belmont accountants specialise in dedicated business accounting services to make your life and your job, easier.

Contact us today.

References:

https://www.myob.com/au/blog/choosing-small-business-accountant/

Your Straightforward Guide to Keeping Tax Compliant

The Australian government (and worldwide governments for that matter) regulate mandatory contributions for individuals and businesses to adhere to. This, as you might have guessed, is tax.

Follow the rules and you won’t get caught out. However, even unsuspecting individuals and businesses may struggle come tax time, as keeping tax compliance isn’t as straight forward as you would think.

Thankfully, a team of Belmont tax experts are here to provide a straightforward guide to maintaining tax compliant.

Want to know more? Read on from the Belmont accountant and tax specialists at Llara Tax & Accounting to find out.

Educate yourself

With all the day-in and day-out activities that go into running a business, it’s only fair that not all business owners fully comprehend complex taxation legislation and other obligations.

It’s not necessary to know everything, but it helps a lot to know the basics, and more importantly, what you should be doing.

Here’s some important considerations to make in business for easier tax compliance:

  • All businesses, regardless of their structure, need a Tax File Number (TFN), even sole traders.
  • An Australian Business Number (ABN) is also essential.
  • Employers paying wages or salaries must register for Pay as You Go (PAYG) withholding.
  • Businesses who buy and sell goods and services must register for Goods and Services Tax once the annual turnover equals to or exceeds $75,000.

Ensure accurate and up-to-date record keeping

Did you know that one of the top reasons why business owners fail to fulfil their tax obligations is due to poor, incomplete record keeping? Leaving the books to the last-minute leads to struggling to meet deadlines which equates to lodge incorrect information and tax returns.

If only there was another way…

Don’t have time to balance your own books? A Belmont business accountant will be able to ensure accurate, up-to-date record keeping for your business.

Sole trader? Separate your bank accounts

While this isn’t a legal requirement, but rather a strategic business move for sole traders.

Creating and operating a separate bank account can make it easier for you to:

  • Track and control your incomings (income) and outgoings (expenses).
  • This information will also be easily accessible when tax time presents itself.

Declare properly, declare legally

It’s only natural for taxpayers to want to maximise their deductions. However, declaring dubious tax claims could get you in trouble with the Australian Taxation Office (ATO).

So, do the right thing and if in doubt, seek help from a tax professional.

Keep tax compliant with a Belmont accountant

Llara Tax & Accounting are the tax and accounting to turn to for your individual and business needs.

Why Llara Tax & Accounting?

  • We’re the Belmont tax accountants trusted by many individuals, families and businesses
  • As a family-owned, small knit team, we have the time and genuine passion to help our clients
  • Our services incorporate accounting and advisory, bookkeeping and taxation solutions.

Most importantly, we know what it takes to get to and maintain tax compliance.

Contact Llara Tax & Accounting today for professional tax and accounting solutions for individuals, families and businesses.

References:

https://www.mckinleyplowman.com.au/uncategorized/5-tips-to-ensure-your-business-is-tax-compliant/