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A guide to administering deceased estates

 

We all know Benjamin Franklin’s quote “In this world, nothing is certain except death and taxes.” But as only an accountant can be macabre enough to find amusing, tax continues after death – even once you’re dead, the Australian Taxation Office (ATO) still requires you to lodge a tax return! Ok, so clearly not the deceased person, but their legal representative (usually the Executor) must assume that responsibility.

I won’t go through the entire legal process of how an estate is administered – I’m an accountant not a lawyer after all. But from a tax point of view, there are a few specific requirements. Continue reading “A guide to administering deceased estates”

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Tips for managing your debtors

In the last couple of weeks, I’ve had conversations with several clients about what to do with customers who don’t pay their bills either on time or at all. No one likes doing all the work and not getting paid. In small business, keeping a good cash flow is absolutely critical. If you have significant funds tied up in your accounts receivables, you have less working capital to fund the business, more stress, sleepless nights and less time to do the good stuff. And the longer debts remain outstanding, the harder they are to collect. So, what can you do to stay on top of your debtors, maximise your cash reserves and minimise the risk of not getting paid. Continue reading “Tips for managing your debtors”

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Housework & tax deductions

Today let’s talk about housework – working from the house that is, not cleaning the house!

Working from home has never been easier or more convenient – super fast broadband (for some!); reliable technology and long commutes mean that for many employees, it’s an attractive option. And with the rise of the gig economy and many choosing to go solo with the benefits of being your own boss, it’s super important to maximise your home office expenses and not fall on the wrong side of our friends at the Australian Taxation Office (ATO). Today, we will aim to do all that and leave you with more time to relax (who cares about the housework!). Continue reading “Housework & tax deductions”

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Personal Services Income – Are you affected?

This week I was asked a fairly straightforward question – I am a sole trader, operating with an ABN, can I claim travel to client premises? What’s the big deal you say, of course she can! But as is always the case with tax, the devil is in the detail. The other part of the email gave me some more facts. There is only one client, payment is made on an hourly rate and the travel involves a three hour round trip by car. Suddenly Personal Services Income (PSI) alarm bells were ringing and the answer becomes much more complex. Continue reading “Personal Services Income – Are you affected?”