Accountants – proactive, innovative advice beyond the numbers! https://www.gartlyadvisory.com.au Gartly Advisory helping business, Personal wealth & SMSF advice & administration Sun, 02 Aug 2020 12:37:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.4.2 https://www.gartlyadvisory.com.au/wp-content/uploads/2019/04/cropped-Icon-32x32.jpg Accountants – proactive, innovative advice beyond the numbers! https://www.gartlyadvisory.com.au 32 32 Smsf Art. Can my SMSF invest in Art? https://www.gartlyadvisory.com.au/smsf/smsf-art-can-my-smsf-invest-in-art/ https://www.gartlyadvisory.com.au/smsf/smsf-art-can-my-smsf-invest-in-art/#respond Thu, 30 Jul 2020 05:45:57 +0000 https://www.gartlyadvisory.com.au/?p=5595 Your SMSF can invest in Art and Collectables under the Superannuation regulations. However, there a set of rules that an SMSF Trustee must follow . The investment in art or collectables must meet the funds Investment Strategy and sole purpose test. Talk to us if you are considering this type of investment as it needs […]

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Your SMSF can invest in Art and Collectables under the Superannuation regulations. However, there a set of rules that an SMSF Trustee must follow .

The investment in art or collectables must meet the funds Investment Strategy and sole purpose test. Talk to us if you are considering this type of investment as it needs to be done correctly.

When you acquire your new painting you have seven days to ensure it is insured.

Your Fund may insure several items of Art as one policy in the name of the Fund.

The SMSF regulations prohibit you from displaying your art for enjoyment in your home or business. Basically, the premise behind this by the regulators, is an investment in an Art or a Collectible must grow your wealth. It is not for your enjoyment!

The regulations don’t allow for Artworks or collectables to be used by related parties. This means you cant hang your Picasso in your hallway at the office. Nor can your office rent it from your SMSF. This regulation extends to renting it by your extended family, clients and employees

Where should I store my SMSF owned Art?

So where can I store my art owned by the SMSF? You can store your art in a special purpose-built storage facility . That storage unit should be from your private residence.

Once you have decided where to store your SMSF Art you need to keep evidence about storage. Please keep evidence on how and where the SMSF artwork is stored.

The ATO recommends the best place to store or display your SMSF Artwork would be in a public gallery. Dont forget to have your Artwork appropriately insured.

The art gallery you chose should independant . The gallery where the art is stored should be independant. It cannot be owned or operated by a related party when storing your SMSF Art.

SMSF wine – take good care of it

The Fund acquires a wine collection such as a 1970’s grange heritage . Sadly from 1st July 2011, the SMSF regulations prohibit storing your wine at your private residence. Clearly, too many Trustees were accidentally getting into the Funds plonk at a dinner party with friends. The ATO took the right approach to ensure a Funds Investment does not evaporate!

Editors note – a good wine is there for drinking ! Who would buy a 1970’s bottle of wine and how good would it be?

Your Fund can acquire a vintage car as an investment. You as Trustee cannot drive the car. However, a non-related party can drive the vehicle if needed to do so for repairs etc

Since June 2011 these regulations have made it more involved to buy and sell these types of Assets by the SMSF.

If you are keen for your Fund to acquire these types of assets, make sure your investment strategy by the Fund is reviewed carefully.

Considering an SMSF then read our blog post https://www.gartlyadvisory.com.au/setting-up-an-smsf/

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My Accountant helps me buying a business? https://www.gartlyadvisory.com.au/profit/buying-a-business-using-an-accountant/ https://www.gartlyadvisory.com.au/profit/buying-a-business-using-an-accountant/#respond Mon, 27 Jul 2020 22:44:04 +0000 https://www.gartlyadvisory.com.au/?p=5562 The post My Accountant helps me buying a business? appeared first on Accountants - proactive, innovative advice beyond the numbers!.

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Your accountant can help you work through the exciting  decisions about buying a business.

 

 

 

Buying a business is an exciting time. New passions and plans for a bright future

 

 

 

Tough decisions need to be made to get it right when buying a business.

 

 

 

Buying a business needs you to look beyond the hipe.

 

 

 

When looking for a business to buy you maybe looking at https://www.seekbusiness.com.au/ to find your next dream.

 

 

 

Honesty, true to your heart and your passion all play a part when buying a business

 

 

 

First, the role of an accountant is to help you work through the maze of opportunities and traps that present itself. Such as:

 

 

 

1. Are you buying a dream of a taking over someone’s headache?

 

 

 

2. Are you buying a job or a business?

 

 

 

3. Are you ready for small business and the fun and hard work it brings?

 

 

 

Some of these questions are challenges that you as the small business operator need to face and explore.

 

 

 

As your small business accountant, we need to first understand your needs, passions, and goals.

 

 

 

Any business that you will look at purchasing should ensure that it ignite these qualities

 

 

 

A potential business that inspires you can will help you move to the next stage of teh process easily.

 

 

 

Buying a potential business is likened to that of buying a second-hand car. We need to explore what’s underneath the bonnet. Do the tests and make the correct decision There will be things that will not be right, can be changed or needs a major overhaul.

 

 

 

Look beyond what is provided to look at what the real profit is!

 

 

 

Our analysis as your Accountant requires us to deep dive into a potential business purchase to make sure the profit ratios and financial statements presented with industry averages. Do the finacials make accounting sense. Is the profit right? We endeavour to look for things that are out of the ordinary not necessarily the obvious that will impact on your profitability if purchased.

 

 

 

By undertaking a review of the opportunities that a potential business purchase could bring will help you in your decision making process. What can be improved, capitalised on, or changed that will improve your business purchases. By analysing these vital questions will outline the potential of profitability.  Buying a business about making a living and creating a future for you and family. Under the new management should take on a new meaning. Is this you?

 

 

 

We slice and dice the financials provided by the vendor and undertake some basic what if examples. This will outline if you as the new owner implemented some positive changes and how this will impact the bottom line

 

 

 

Accountants that have small business knowledge!

 

 

 

Consult with us today about your new business purchase. We ask you to provide us the vital information when we catchup

 

 

 

  1. Copies of what the vendor and business broker has provided
  2. Your working capital availability and access to funds to purchase
  3. Copies of summary information  and any other prior businesses of a similar nature that you have looked at as a comparison.

 

 

 

Time is of the essence and we need to quickly review what is provided. Negotiating with a vendor or their agent can sometimes be easy or frustrating. Having the right information at your fingertips is great start to your path to you buying the right business.

 

 

 

You may like our related article about looking for the best small business accountanthttps://www.gartlyadvisory.com.au/uncategorized/looking-for-the-best-small-business-accountants/

 

 

 

Contact us at https://www.gartlyadvisory.com.au/contact-us/

 

 

 

 

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Looking for the best Small Business Accountants https://www.gartlyadvisory.com.au/business-buy/looking-for-the-best-small-business-accountants/ https://www.gartlyadvisory.com.au/business-buy/looking-for-the-best-small-business-accountants/#respond Mon, 20 Jul 2020 08:35:52 +0000 https://www.gartlyadvisory.com.au/?p=5546 Best Accountants that love small business! We regard ourselves as the best small business accountants in Ormond and possibly Melbourne .There are hundreds of Accountants based in Melbourne. But finding one that’s the best fit for you is not always easy. If you are looking for a smart dependable accountant with your best interests at […]

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Best Accountants that love small business!

We regard ourselves as the best small business accountants in Ormond and possibly Melbourne .There are hundreds of Accountants based in Melbourne. But finding one that’s the best fit for you is not always easy. If you are looking for a smart dependable accountant with your best interests at heart, then we might be right for you.

We are small business accountants understand what small businesses are going through. Not just during COVID times but when your business is growing, and you need a sounding board to focus on how you will improve and manage everything from cashflow to staff

Our professional approach means we are the best small business accountants to help you work through the baggage of tax and business laws that impact your business.

Our mission to you!

 We make it our mission to communicate it to you in everyday language that is simple to understand. Not accounting jargon

As a small business accountant not only can we lodge your tax return but we can ensure we do a deep analyse your business financials and find the hidden profit leaks

Our mission as one of the best small business accountants in Melbourne is too grow your business. Here is our mission

Through expert knowledge, we provide taxation, business planning and innovation to our Business Clients.

 We do this with integrity, reliability and efficiency, every day!

Being in business is a combination of fun, excitement, frustration and reward.

Accountants who listen!

Our role as your accountant is to help you with many of the business matter that confronts you. We make sure you remain compliant with various tax laws but also help you to plan your business growth. That's why we consider ourselves as the best small business accountants.

Gartly Advisory are registered tax agents and also specialise in SMSF establishment.

All of these attributes ensure you get the best accounting services available in Melbourne. The Gartly Advisory team are keen and professional. We have been serving clients in Melbourne for more than 20 years.

Our role is not only make sure all compliance obligations are met but will help you to grow. We see ourselves as partners in your business by helping you grow

Contact us https://www.gartlyadvisory.com.au/contact-us/

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How to price my product? https://www.gartlyadvisory.com.au/profit/how-do-i-price-my-product/ https://www.gartlyadvisory.com.au/profit/how-do-i-price-my-product/#respond Sun, 12 Jul 2020 07:33:00 +0000 https://www.gartlyadvisory.com.au/?p=907 Pricing and costing out your product for profit can mean the difference to your business surviving or thriving! We are often asked am I making enough from selling my product. Why is my profit not that good?How do i price my product? Let's take as an example my company exclusively makes ice cream tubs and […]

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Pricing and costing out your product for profit can mean the difference to your business surviving or thriving!

We are often asked am I making enough from selling my product. Why is my profit not that good?How do i price my product?

Let's take as an example my company exclusively makes ice cream tubs and how their pricing will impact on the bottom line.

Costs per product:

Raw materials    $2

Packaging             $1

Labour                 $2          

Total Cost per tub  $5

The cost of poduction your icecream is $5 per tub . Overhead cost of rent, admin and other expenses = $200,000 per year. These would be your fixed costs

The factory can make 3000 tubs per month average =36,000 tubs pa

The cost to make = $180,000 plus $200,000 admin = $380,000

Based on the costs above, it costs $10.55 cost per tub to produce

Your icecream will retail at $15 per tub = $540,000 therefore profit = $160,000 pa

Maximum capacity

Based on this simple example, we can see at producing maximum capacity, the profit for the ice cream owner is relatively healthy. Let's say he only manages to sell 30,000 tubs

Cost to manufacture = $150,000 + $200,000 = $350,000 . The revenue for selling 30,000 tubs = $450,000

The example shows profit has reduced and this will impact on the bottom line

Pricing needs planning not random guessing or reacting to your competitor!

Careful planning is required. Pricing entails knowing your market. Pricing is a blance and by charging too much may result incustomers not buying from you. Charging not enough will result in profit reducing. Sometime to the point your business becomes unprofitable. Pricing needs to take into consideration your overheads and then final price considered against market factors.

Here's how to set your prices

  1. Understand your customers . Ask yourself why do your customers buy from you? Your price can be determined by demand for your product .If your customers may not be able get eonigth of your product and production is at a premium then so is the price. The classic example is the toilet paper shortage  in Australia where demand exceeded supply. The price of toilet paper increased.
  • Look at your product and compare it to your competitor. Don't just match your competitor's prices without first understanding your market and how the quality fo your product stacks up.
  • Think about factors such as supply prices of your ingredients when determining your rate. The cost of some products can impact significantly on the amount of your product. Understand your overheads that also need to be covered by sales.
  • Work on capacity and how the number of units will cover production and fixed costs
  • Your reputation for quality and service should be a factor around setting your price. A cheap product has a lower price.
  • Watch the market. Prices can change quickly. You may not have realised why you have been undercharging or overcharging for your product. Make sure you can understand if there is an oversupply
  • Old product is sometimes sold at a lower price just to move it . This allows room for the new, improved product to reach the customer.

Strategy to increase profitability.

Much small business doesn't like reviewing where pricing strategies. It takes courage to up prices. I recall one of my clients had not put their prices up for a couple of years. They asked me why their profit was in decline. It was a simple situation where overheads rose, and their revenue did not. We sat down and overpriced their product. Within a few hours of the new prices on their websites, they managed to obtain a successful large sale.

Your strategy needs constant focus!

Pricing strategy is essential for small business to grow. Correctly pricing your product will ensure the viability of your business and reward your product success buy pricing it accordingly

Need help contact Geoff and lets zoom in and discuss

You might enjoy our article about working caital

https://www.gartlyadvisory.com.au/uncategorized/how-much-money-do-i-need-for-working-capital-in-my-business/

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As a Director am, I considered an employee for jobkeeper? https://www.gartlyadvisory.com.au/business-buy/covid-19/as-a-director-am-i-considered-an-employee-for-jobkeeper/ https://www.gartlyadvisory.com.au/business-buy/covid-19/as-a-director-am-i-considered-an-employee-for-jobkeeper/#respond Thu, 30 Apr 2020 08:25:04 +0000 https://www.gartlyadvisory.com.au/?p=896 Jobkeeper has created uncertainty as to whether jobkeeper wage subsidy can be applied for as a Company Director. Small busines owners wear 3 hats. That as a Director, that as an employee and that as a shareholder. It can be confusing and with the advent of Jobkeeper, it's essential to understand where you stand in […]

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Jobkeeper has created uncertainty as to whether jobkeeper wage subsidy can be applied for as a Company Director.

Small busines owners wear 3 hats. That as a Director, that as an employee and that as a shareholder.

It can be confusing and with the advent of Jobkeeper, it's essential to understand where you stand in the business.

Let's take a typical family business. For some Directors, they take their wages as an employee. The bookkeeper processes your pay withholds the tax, pays your superannuation, and issues you a payslip

Notes above you would be consider an empoyee of the business. The reason you do this is you are regularly working in the business . Being an employee may be tht you wish to derive a consistent income and other benefits. Under the STP system your wages will also need to be recorded by the business to the ATO.

Not every Director needs to be on the payroll. You can, as Director just paid Directors Fees. Directors fees are commonly agreed at a board level. The Directors fees recognise the strategic role a Director does in running the business. It's not profit but rather a fee for yoru services.

A Director can be an owner via shares. Or a Director can just be someone who has no beneficial interest or ownership in your business. Normally the Board agrees to pay you a fee of X per annum for your services. This is often an annual payment, subject to tax and superannuation.

Am I an employee or a Director for Jobkeeper?

Referring to the above. A Dirctor who is not paid being systematically paid through the payroll of the company, will not be seen not as a regular employee for Jobkeeper.

Can I get a wages as a Director and jobkeeper?

Per the ATO - An eligible business can nominate only one director to receive the payment, as well as any eligible employees. Only one person in a director capacity may receive the payment, and that individual may not receive the payment as an employee.

How does this work in a family business? Let's say Bill & Ben, who are brothers, have not paid them sales wages but only directors fees once a year. Using the participation test, the business can only nominate one Director, whereas if they had both been employees, then they would both would be entitled to receive job keeper.

You may ask why was I paid Directors Fees?

Why was I not paid via the payroll.?Directors fees are paid based around performance or a nominal fee. In a family business, many Directors enjoy payments from the company via a dividend and profits. We refer to our article at https://ggassociates.com.au/directors-fees/ about profit and dividends.

From an integrity point of view the definition of an employee vs a Director ensures that the Government does not pay additional Jobkeeper for every Director on the ASIC data base wich could lead to rather large burden on the Governments purse.

Don't forget if you as Director work in the business you must complete an employee nomination form for Jobkeeper .

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Job Keeper in a nut shell in plain English! https://www.gartlyadvisory.com.au/business-buy/covid-19/job-hunter-in-a-nut-shell-in-plain-english/ https://www.gartlyadvisory.com.au/business-buy/covid-19/job-hunter-in-a-nut-shell-in-plain-english/#respond Mon, 13 Apr 2020 00:05:39 +0000 https://www.gartlyadvisory.com.au/?p=827 Last week the Federal Parliament rushed through its Job Keeper legislation. Here is our take on how Job Keeper might help you as an eligible Employer # its open to any registered business that can show a 30% reduction in turnover (big buisiness 50% ) # Sole traders that arenot registered for GST can apply […]

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Last week the Federal Parliament rushed through its Job Keeper legislation.

Here is our take on how Job Keeper might help you as an eligible Employer

# its open to any registered business that can show a 30% reduction in turnover (big buisiness 50% )

# Sole traders that arenot registered for GST can apply using the alternative test.

# Trusts , Partnerships and Company shareholders can only nominate one individual

# It starts on 31st March and you can reinstate your employees back to this if you are eligible and they were employees before 1st March 2020.

# Employees must complete a registration form and can only nominate one employer

#Employers have become the mini centrelink of Australia

#Some employees not employed for 12 months will not eligble making it a hard conversation as an employer to these employees

# employees stood down can be reinstated and employees must pay the $1500 pf then seek reimbursement by ATO

# if registered for Job Keeper then it must be offered to all eligble employees

# Alternative test for those who can substantiate a slowdown of turnover comparing Bas periods monthly or quarterly - dont change your Bas lodgement period.

#Fortnightly checkins to advise the ATO if you are still eligible for Job Keeper

#Dont get it wrong as you will be penalised and must giove back the money

#$1500 min must be paid to the employee SGC extra on above that

#ATO cant hold the payments for other ATO debts

#Be stp ready to manage the reporting

#Employees must have worked for you for 12 months and they cant get Job Keeper twice. Must let you know if they seek a job else where must stop getting Job Keeper.

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Accountant Brighton East 3187 https://www.gartlyadvisory.com.au/services-we-offer/accountant-brighton-east-3187/ https://www.gartlyadvisory.com.au/services-we-offer/accountant-brighton-east-3187/#respond Sat, 11 Apr 2020 06:32:57 +0000 https://www.gartlyadvisory.com.au/?p=818 We love helping our local clients. At Gartly Advisory we have many clients that operate in Brighton East. Based in Ormond, we are a quick car drive up the North Road hill to our office. Our Brighton East clients love our easy parking and extra service we offer. Like you, I love Brighton Beach and […]

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We love helping our local clients. At Gartly Advisory we have many clients that operate in Brighton East.

Brighton Beach
https://www.middlebrightonbaths.com.au/cafe

Based in Ormond, we are a quick car drive up the North Road hill to our office. Our Brighton East clients love our easy parking and extra service we offer. Like you, I love Brighton Beach and happy to meet you for a coffee to discuss your needs. We have many clients from the Brighton area so why not let us start your journey.

Please contact us at https://www.gartlyadvisory.com.au/make-an-appointment/

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Covid-19 Survival Pack – assisting Small Business https://www.gartlyadvisory.com.au/business-buy/covid-19/covid-19-survival-pack-assisting-small-business/ https://www.gartlyadvisory.com.au/business-buy/covid-19/covid-19-survival-pack-assisting-small-business/#respond Tue, 07 Apr 2020 04:20:26 +0000 https://www.gartlyadvisory.com.au/?p=785 The post Covid-19 Survival Pack – assisting Small Business appeared first on Accountants - proactive, innovative advice beyond the numbers!.

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Have a read of our Small Business Guide to assist with strategies and Stimulus payments during the Corona Virus pandemic.

Information is current as at 7th April 2020.

GA-Small-Business-Corona-GUIDE-07-04-2020-2

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Small Business Stimulus Update https://www.gartlyadvisory.com.au/business-buy/small-business-stimulus-update/ https://www.gartlyadvisory.com.au/business-buy/small-business-stimulus-update/#respond Fri, 20 Mar 2020 23:22:54 +0000 https://www.gartlyadvisory.com.au/?p=747 Small Business need our help . Our online event about the small business stiumlus was held last week. Our event was a successful online event providing clients with a comprehensive update and actions to do to survive this upredcedent event . Again we are live on Wednesday - please follow the link to register https://www.eventbrite.com.au/e/stimulus-package-update-for-small-business-tickets-100583891126?utm-medium=discovery&utm-campaign=social&utm-content=attendeesha

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Small Business need our help . Our online event about the small business stiumlus was held last week. Our event was a successful online event providing clients with a comprehensive update and actions to do to survive this upredcedent event .

Again we are live on Wednesday - please follow the link to register

https://www.eventbrite.com.au/e/stimulus-package-update-for-small-business-tickets-100583891126?utm-medium=discovery&utm-campaign=social&utm-content=attendeesha

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Government Tax measures to help meet the Corona Virus impact on small business! https://www.gartlyadvisory.com.au/business-buy/government-tax-measures-to-help-meet-the-corona-virus-impact-on-small-business/ https://www.gartlyadvisory.com.au/business-buy/government-tax-measures-to-help-meet-the-corona-virus-impact-on-small-business/#respond Tue, 17 Mar 2020 07:17:28 +0000 https://www.gartlyadvisory.com.au/?p=744 The post Government Tax measures to help meet the Corona Virus impact on small business! appeared first on Accountants - proactive, innovative advice beyond the numbers!.

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