Is your business operating at its peak?

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Today’s business owner often finds himself looking after the day-to-day operations including everything from operating practices to administrative processes to costs and cash flow to accounting systems.

How long has it been since you were asked these questions?
• Do you have the right business structure for your business?

• How do you streamline operating and administrative processes?

• What do you need to have an effective POS (Point of Sale system) that links to an online accounting platform?

• Are your businesses internal control systems adequate in relation to debtors, creditors & inventory management?

• How do you read financial statements (ie Profit & Loss /Balance Sheet)?

• Do you understand what impacts your business’ cash flow (ie maximise liquidity)?

• What do you need to do to monitor and contain costs (ie continuous improvement)?

• Do you know how to measure your product or service profitability margins?

• Have you covered all business’ legal requirements (ATO, ASIC, insurance & superannuation)?

• Do you have real time management reports to run your business and identify warning signals?

• Do you have real time information to make informed decisions?

• Are you forward planning in relation to budgets, forecasts and cash flow models?

Our advisors will review and renew your operating practices, identifying inefficiencies and making recommendations.

Your business cannot afford to lose any more time.
Call us for an obligation-free chat.

Glen Coombs
T: 9920 7400 M: 0400 408 205
glen.coombs@rsm.com.au
rsm.com.au/geraldton

Get your tax returns done at RSM

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It’s tax time! RSM will ensure that working out your tax return is stress free and you get the maximum refund.

Book an appointment today – we can help with:

  • Preparation of annual tax returns
  • Self managed superannuation funds
  • Succession and estate planning
  • Cloud accounting
  • Financial planning

For further information please contact the RSM team at – 
1/12 Bayly St, Geraldton
9920 7400
rsm.com.au/geraldton

How to avoid insolvency - with RSM Geraldton

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Economic downturn, looming insolvency?

Spotting signs of distress in your business

Business insolvency may result from the inability of a business to pay off its debt as they become due or that a business doesn’t have sufficient assets to cover its debts.

The process in which a business becomes insolvent takes time, so it is possible to spot the warning signs if you look at your business objectively.

Here are our five top operational tips to avoid going under:

  • Establish and follow a business plan that includes forecasts
  • Ensure adequate capital reserves are available by having either cash reserves or access to borrowings
  • Impose strict credit control and debt collection procedures
  • Ensure that your accounting system is providing you with real time information
  • Regularly review underused assets and eliminate unnecessary costs

Call RSM today for a free confidential discussion on how they can help you and your business.

Level 1, 12 Bayly St Geraldton
Trevor Lake – Director-Business Advisory
08 9920 7400
trevor.lake@rsm.com.au

rsm.com.au/geraldton

Changes to Motor Vehicle Expense Substantiation

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Since the commencement of motor vehicle expense substantiation, taxpayers have had four methods by which they could substantiate their car expense deductions:

  1. Cents per kilometre method
  2. 12% of original value method
  3. 1/3 of actual expense method
  4. Log book method

As of 1 July 2015, the “12% of original value method” and “one third of actual expense method” has been withdrawn. This leaves the “cents per kilometre” and the “log book” method available to substantiate car expenses and be able to claim a deduction.

Workplace Motor Vehicle Expenses
It should be notes that there is no change to claiming deductions for “work” vehicles. Claims for work related use of vehicles such as vans and utilities with a carrying capacity of at least one tonne will not be effected by these changes.

Cents per Kilometre
The “cents per kilometre method” is limited to a maximum of 5,000 kilometres per year. Any taxpayer who travels more than 5,000 kilometres in a financial year could be financial disadvantaged if they do not have a compliant log book for the financial year ended 30 June 2016.

Guidelines to ensure your log book is compliant
To have a compliant log book, the following steps must be adhered to;

  • A log book must be kept for the first income year when a claim is made for a car and it must be maintained for a continuous 12 week period.
  • The log book must record all business journeys made in the car for the 12 week period. For each journey the following must be recorded:
  1. The date the journey began and ended
  2. The total kilometres travelled on the journey
  3. The purpose of the journey (i.e. business or private)
  4. The total number of business kilometres travelled
  • If claims are to be made using the log book method for two or more cars in a particular business, the log books must cover the same 12 week period.
  • Once a log book has been maintained for a 12 week period, the next subsequent log book is only required to be completed after 5 years.

We urge all taxpayers to discuss the motor car substantiation options with their accountant, as each taxpayer’s circumstances are different.

Should you have any queries or would like more information, please contact the Geraldton office on 9920 7400.