Client Login
Ph: 08 9921 8218 | Em: info@encompasscpa.com.au

Photography by Debra Mitchell

Firm News

Older Entries

Questions to ask before applying for a loan

A loan can be great help. It can assist you in achieving your goals faster, such as buying a house, purchasing a new car or getting your business up and running.

However, there are many considerations to make before taking on a loan as choosing the wrong loan can cause financial and legal havoc down the track. Take note of the following tips before applying for a loan:

How much do I need?
Before applying for a loan, carefully calculate how much assistance you need. The more you borrow, the more you will have to pay back in interest and fees. Calculate the benefits from saving for an extra month or sixth months and consider how this will impact on the loan you need. The amount you need may limit you to applying for only a small number of loans with stricter conditions.

Which loan to pick
Consideration needs to be awarded to working out which loan is best for your needs. Some loans only allow you to spend money on set things, e.g. student loans may prevent you from using loaned money for rent.

Loans have different terms and conditions. There are a number of fees that may be hidden in the fine print. Speak to your accountant to help you understand what these conditions mean for you to avoid getting caught out on choosing the wrong loan.

Can you afford the repayments
There is no point taking on a loan if you can’t manage the repayments. This will only see you fall into debt, which can impact on your business, your assets and your credit rating. Don’t jump at the opportunity to receive a substantial loan without appropriate calculations to ensure you are more than capable of making the repayments.

Posted on 18 October '17, under Money. No Comments.

How to save time and boost efficiency

Many business owners are looking for ways to squeeze more into their cramped work schedules. But unfortunately, this may mean spending more time on unimportant tasks and not prioritising what really needs to get done.

Rather than multi-tasking or spending late nights in the office, consider implementing these tips to optimising your time and boosting your efficiency:

Delegate accordingly
Even if you think you delegate enough, it is worth reviewing what tasks you delegate and if there are any more tasks that could be done by someone else. Learning to say ‘no’ is also a useful tool in improving productivity. Instead, you may suggest the task for another staff member or manager who is better equipped to deal with the task at hand.

Incorporate downtime
Block off time in your day that won’t be interrupted to focus on relaxing activities such as reading, journaling, walking outside or even meditating. When you incorporate downtime into your daily routine it unleashes creativity, hence, improving your problem-solving skills and allowing for the creation of new ideas and so on.

Reduce time on meetings
Many meetings can be substituted for a simple email or phone call. When they must take place, be sure to create an agenda so they run on time and leave out information that can be sent in an email after the meeting.

Invest in technology
Instead of manually paying your bills, set up auto-payments to save time. Investing in cloud-based software is also useful in managing your expenses, payroll function, invoicing, accounting, time tracking and CRM. The benefits include less errors, more access to data at any-time and anywhere and a more integrated view on how your business is running.

Posted on 18 October '17, under Business. No Comments.

Super co-contributions

Individuals may be eligible for a Government super co-contribution.

A Government co-contribution means the Government adds to your super. You may be eligible for the super co-contribution, low-income super contribution (LISC) from the 2012-13 to 2016-17 financial years, or low-income super tax offset (LISTO) from 1 July 2017.

Super co-contribution
The Government will make a co-contribution of up to $500 if you are a low or middle-income earner and make personal (after-tax) contributions to your fund.

The eligibility conditions for a co-contribution from the 2017-18 financial year include:
a total superannuation balance less than the general transfer balance cap for that year
the contribution you made to your super fund must not exceed your non-concessional contributions cap for that year.

Low-income super contribution
The low-income super contribution (LISC) is a Government super payment of up to $500 to help low-income earners save for retirement.

If you earn $37,000 or less a year, you may be eligible to receive a LISC payment directly into your super fund.

The LISC is 15 per cent of before-tax super contributions made you or your employer from the 2012-13 to 2016-17 financial years.

If you have reached your ‘preservation age’ and are retired you can apply to have your LISC paid directly to you.

Low-income super tax offset
The low-income tax offset (LISTO) was introduced from 1 July 2017. If you earn income up to $37,000, you may be eligible to receive a refund into your super account. This is on the tax paid on your concessional super contributions up to a cap of $500.

This means most low-income earners will pay no tax on their super contributions.

Posted on 18 October '17, under Super. No Comments.

Selling your home and CGT

When it comes time to sell your home, you may be wondering if you will need to pay capital gains tax (CGT).

Generally, if you live in the home you are selling you will not have to pay CGT under the main residence exemption.

The ATO considers a dwelling as your main residence if:
– you and your family live in it
– your personal belongings are in it
– it’s the address your mail is delivered to
– it’s your address on the electoral roll, and
– services such as gas and power are connected.

If the home has been used to produce assessable income such as running a business from it, renting it out or flipping it, you may not be entitled to the full main residence exemption from CGT. This means you will have to pay CGT on part of any capital gain made when your sell your home.

For those who use their home to produce income, i.e., renting out part or all of it, you can work out the capital gain that is not exempt by taking into account the following factors:
– proportion of the floor area that is set aside to produce income
– period you use it for this purpose
– whether you’re eligible for the ‘absence’ rule
– whether it was first used to produce income after 20 August 1996.

Posted on 18 October '17, under Tax. No Comments.

Understanding your business to better serve your customers

Whether you have been running your business for over 20 years or just starting out, you cannot deny the importance of regularly reviewing your business’ performance.

Many business owners may put off reviews in fear of the actual results, but understanding why your business is performing the way it is is crucial for growth and development.

Consider these three crucial areas of your business when conducting a review:

Products and services
Think about the quality and delivery of your products and services. Do they solve a problem for your customer/client, fulfil a want or need, keep customers returning? Analysing trends in products and services will also help you to identify which products or services need to be altered or removed or if new ones are needed. Also, by regularly reviewing trends you may realise gaps in the market or opportunities you did not know existed.

Customer base
Do you have a steady flow of loyal customers or are you struggling to make sales? This is a big factor in whether or not you need to change your business model. Be sure to take into consideration external factors that may influence sales, i.e., poor consumer spending in your industry, changes in technology, etc. If the type of customers you are attracting is changing also be sure to adapt to these changes appropriately, i.e., different marketing campaigns, honing in on a niche, hiring new staff to keep up with demand and so on.

Financials
Develop good financial procedures, such as visiting an accountant to receive financial statements, i.e., profit and loss, cash-flow statement and balance sheet. Financial statements analyse how your business is performing financially for a set time period. They indicate the general financial health of your business and can help you to recognise areas that require action.

Posted on 13 October '17, under Business. No Comments.

Splitting super

When partners in an SMSF separate, there are specific legal and tax implications that should be considered.

It is possible to split super benefits, i.e., transfer assets, such as property, from one super fund into another and roll money over to another fund; however, trustees need to keep the following in mind:

Posted on 13 October '17, under Super. No Comments.

Protecting honest businesses

In its effort to facilitate a fair business environment, the ATO has offered continued support for honest businesses.

With an estimated $40 billion lost to the hidden economy, the need for strong diligence and continued governance over Australian businesses is essential. The Black Economy Taskforce that was established in May 2017 and various trends have since been better understood regarding strategies dishonest businesses and individuals are using to evade their tax responsibilities.

Trends show that problematic areas include:

Posted on 13 October '17, under Tax. No Comments.

Transfer balance account report now available

The new transfer balance account report (TBAR) is available on the ATO’s website.

Self-managed super funds can use the TBAR report to report events that affect an individual member’s transfer balance account. The option to report is available from 1 October 2017, however, SMSFs are not required to report anything until 1 July 2018.

Events that affect a member’s transfer balance account will need to be reported to minimise the tax consequences of exceeding the transfer balance cap.

Funds with straightforward affairs are likely to have only a few events per member to report over the life of the fund. Common events that will require reporting include:

Posted on 5 October '17, under Super. No Comments.

Reporting SMSF changes

Self-managed super fund trustees must notify the Australian Tax Office (ATO) if there are changes to their SMSF.

Trustees must provide written notice within 28 days if there are changes to:

The above details are used by the ATO to determine if your fund meets the definition of an SMSF.

Providing incomplete or inaccurate information may make it impossible for your fund to receive rollovers or contributions.

If any of these details change for your SMSF, contact our office to update your details.

Posted on 5 October '17, under Tax. No Comments.

How to build a loyal tribe

Building a successful business is almost impossible without a group of motivated employees.

Here are three ways to keep your employees loyal to your business:

Hire right
Hiring someone who doesn’t share the same vision or values as your business is detrimental. You need to hire people that fit well into your business’ culture and are willing to work hard in their roles. If staff see the job as just a paycheck, they will be more inclined to look for a job elsewhere. In the job interview, it is important to ask candidates questions regarding their personality fit and career goals.

Increase skill set
Employees need growth and development to stay motivated. Providing regular training and opportunities for employees to advance are great ways of achieving this. There will always be room to progress, either by increasing skill sets or responsibilities or moving to a higher position.

Offer incentives or perks
Financial rewards, i.e., a bonus or a gift is a great way to show your appreciation for your staff’s efforts. Although, offering non-monetary perks can be just as motivating, such as providing flexibility to work from home, opportunities for staff to volunteer or a day off as a reward for a job well done on a successful project. It is often the non-financial rewards that can have the biggest impact on staff morale and job satisfaction.

Posted on 27 September '17, under Business. No Comments.

« Older Entries   

Contact Us

You can contact us at the following;

Office Location
18 Francis Street
GERALDTON WA 6530

Mailing Address
PO BOX 1865
GERALDTON WA 6531

Phone: 08 9921 8218
Fax: 08 9964 3818
Email: