In the last few weeks, we have seen an influx of new clients, wanting to change to Xero, to start off the new financial year with a clean file. Some clients prefer to DIY (Do-It-Yourself), others prefer that we handle the  complete setup process. We have since compiled a list of the things that most clients overlook, when they set up their own Xero file:

What is capital gains tax? It is definitely one of the most misunderstood taxes, with many clients often coming up with their own strange and elaborate calculations.

Capital gains tax (or otherwise know as CGT), is the tax that is charged on the gain that you make on selling or disposing of any asset (such as property or shares), of which the date of acquisition of the asset is after the 20th September 1985.

We have gathered over the past few years, some of the top complaints people have about their accountant. It is usually one of the complaints listed below - see if your one is on this list!!

See attached file for all you need to know for the 2016 Tax Return.

In this day and age, when every man and his dog has a business, or a business idea, it is no wonder that “start ups”, “incubators”, “accelerators” and “entrepreneurs” are the hot topic. It will be that way for many years to come, as there is a general shift of the population from being employed, to being free from the nine to five slavery.     

As an accountant and business advisor, we are privy to an abundance of information that pertain to our clients.

From a person’s spending habits to their ability to save, we have direct insight, and although we do not use it for any other purpose other than for its intended use, we cannot help but analyse and assess, to see if it can be improved upon in any way possible.

Uber drivers appear to be lost in the world of GST and tax, because their accountants are either too conservative, or do not even know what Uber is.     

Coming up is some of the obstacles that we have seen clients experience, as a working business mum. Of course these are not hard and fast rules – each person copes with the changes very differently. 

The ATO, whilst it is manned by people, relies on certain key indicators, or "red flags" as we accountants know it as, to pull taxpayers up for closer scrutiny.

These flags are sometimes very honest mistakes made by the accountant. In other instances, it is clearly a misinterpretation of the tax legislation or just plain wrong.

Do you procrastinate about taking care of the financial matters in your life? If the answer to this is yes, then it is likely that you are part of the epidemic that is taking over the world. We call this epidemic the “financial procrastination”.

So since July 2015 this year, we have had this question asked about half a dozen times. So after some inspiration from our most recent engagement, we decided it was time to put together a blog about this. And to think that we are just known as bean-counters!!! Usually we are also – part-time advisors, part-time counsellors and part-time fortune tellers too!!!!

Over the past 10 years or so, we have seen a huge spike in interest in property investment, particularly for first timers.

Having been around this environment for quite some time, and making one or two mistakes ourselves with our initial investments, we have put together the 8 deadly sins that a first timer can commit, unknowingly.

GST mistakes are common and are made all the time, by small business owners and by those that manage their activity statements by themselves. Here are some tips on what to look out for!

Having worked in various accounting firms, and now running our own, we have seen many technology mistakes and businesses in really sticky situations, all of which could have been avoided had they followed our tips!

 For property investors with negative geared properties, tax time is like Christmas time. They are usually the first clients in the door, after the 1 July, as they know that there will be a pot of cash that will be lying there, waiting for them to collect.

We have been heavily promoting end of year tax tips for business owners, and for those that are self employed. But what about property investors? This is sometimes overlooked by accountants, as property is usually an investment vehicle for long term growth. We however, see property investing as a business. And when you are running are business (in property investing), then there are definitely tax tips for you!

At JTR & Associates, one of the things we love most, is assisting those that are starting a new business. We absolutely love the enthusiasm and the mad rush that comes with this stage of the process.
Finding ourselves constantly repeating the process with each new business owner, we decided to put together a guide, an 8 step process, on getting it correct from the start.
We hope you enjoy this, as much as we have enjoyed putting it together!

Are you finding that sometimes, cashflow can get a little bit tight? Do you need more money in your pocket? Well there are two ways to increase your profit, and consequently your cashflow.

1) Increase sales volume or your prices OR
2) Decrease your business costs

So you have purchased your first investment property. You found yourself the perfect property, and then the perfect mortgage broker. What happens next? Do you sit back and relax, and enjoy the ride? Or do you get in there, spanner and tools, and change the oil yourself?

In which structure should I buy my property?
Although we would love to say that this is a common question asked by clients to their accountants, it is usually a question that is never asked. Only the experienced and astute property investor take the time and understands the value in obtaining proper advice. This is why we have included this guide, in the pre-purchase section, so that your property portfolio is set up correctly, from the very beginning.

In part 1 of our 8 part series, we mentioned the need for you to establish your budget. Establishing your budget means finding a fantastic, top of the line, mortgage broker who will not only assist you in finding the right product, but will also help you determine what you can and can't afford. If we were to list the reasons why an exceptional broker should be on your speed dial, the list would go on and on – and a book could be written about it (although, one might ask, who would actually read it!).

In this current economy where interest rates are at an all time low, investing in property is no doubt the hot topic, and may be for quite some time.

Property, when purchased for the right reasons and in the right structure, is still regarded as one of the safest long-term investments.

While some investors may want to buy a property and rent it out straight away, others may choose to live in the home while they renovate it. Property investment can be a great way to create wealth, but there are some golden rules to consider before taking the plunge into property investment.

For some of us, every year, on new year’s eve, comes the question – what is your New Year’s resolution? By this time, some of us are intoxicated – others are tired from hearing the same question, year after year. The response is then some silly, unachievable goal that is never really thought through properly. The “resolution” is forgotten by week 2 in January, as we start to fall back into our old habits. As they say, old habits die hard.

We have never been asked – what is our WHY.

WHY are we doing what we are doing. WHY are we an accounting firm. This is because most people would assume that we are doing this to get rich, live a luxurious life, and therefore be happy.

The New Year usually brings with it a fresh start, a new leaf, and a childlike promise to oneself to stick to your goals/dreams/plans. This is a very important time of the year, as it gives the person the time to reset the clock, if they have been naughty, and the time to reward themselves if they have been good.

The time leading up to and after the New Year is also a very good time to look at your finances. Do you have a budget? Are your budgets realistic? Have you revised your budget recently for any new changes?  JTR & Associates can help you with all your budgeting needs!!

By now, if you are not aware that Christmas is just around the corner, you would be considered a hermit, or someone that lives under a rock. Christmas decorations line the paths, no matter which direction you go. The jingle of the festive Christmas tunes fill the radio channels, no matter which channel you switch to.

It is that time of the year, when everyone is lodging their tax returns. For some it may have resulted in a tax bill. For others, it may be a tax refund... 

Once we have prepared a tax return for a client, and they are expecting to receive a large juicy refund, the first thing they ask us is – what should I do with this money??

Do you ever look at your accountant, and wonder, what is he/she really thinking?

At JTR & Associates, we are open and upfront about everything. Whether it be the fees we charge or even the issues that may make you feel uncomfortable, but is in your best interest. We pride ourselves on being different in this way.

So here we bring to you, the secrets that most accountants will never tell their clients!

Ladies, do you remember the moment when you first met your husband, fell in love and never looked back?

Men, do you remember when you first caught that first glimpse of your future wife?

Property is the most trusted asset class for Australians, yet only around 3.5% of all SMSF investment is in residential property according to the latest ABS report (www.ato.gov.au/Super/Self-managed-super-funds). Property investment can produce a range of tax benefits, for e.g. your tax can be significantly reduced or eliminated for rental income and capital gains, and the rental return can be used for loan repayments.

The boring old tax return has come a long way since the ‘Tax Pack’ days.
The Government have announced the roll out of the new MyTax system. Users all over Australia will be receiving text messages to inform them over the coming weeks. So we just wanted to let you know what it means for you by answering some likely frequently asked questions (FAQ’s) to help you make an informed decision.

Having the right structure can save your business time and money.

The four commonly used business structures in Australia are:

Also known as "Do It Yourself Super".
Some people want the hands-on control that comes with a self-managed super fund (SMSF). But with this control comes extra responsibility and workload.
You must be prepared to research and track your super investments regularly if you want to manage them yourself. Super is your investment for your retirement, so you need to be careful with the funds, and what you do with it.