Solving the Business Dilemma

Many businesses struggle with the concept of the relationship between wages, shareholder loans, profits and tax. Unfortunately, if you get this wrong it can have a massive impact on the amount of tax that you have to pay to the ATO.

BWD understand that, as business owners, you simply don’t have the time to learn everything there is to know about business accounting, however this concept is not one to be ignored. In order to avoid paying far too much tax it is vital that you have a basic understanding of these concepts.

By attending our highly regarded half day course you will understand enough to be able to account for these things properly and get a good grasp on the whole concept. This will ensure that you no longer receive integrated client accounts or assessments from the ATO demanding extraordinary amounts of tax.

It is a fact that a business making a profit will have a tax liability, and after all, isn’t that why we are in business – to make a PROFIT?

During this course you will get a good understanding of the following;

Completing your BAS

At the end of each month or each quarter when completing a BAS statement, there are certain elements that are in need of some analysis and follow-up.

Such as;

  • Are the owners taking drawings? 
  • Are these drawings input as ‘Shareholder Loans’ what happens to this loan account? 
  • Does it have to be repaid back and if so, how and when? 

Accounting for Profit

It’s such a joy to see a profit that is reported in the BAS, however we need to ensure that this is accounted for in the year-end tax liability so that you have no nasty surprises at tax time.

For example:

  • Is the money for the tax liability left on deposit in the bank 
  • or have we paid an installment on the BAS? 

At the end of the year your accountant delivers your end of year results, you see for example, that you have a profitable year, but now you owe the ATO $50,000 company tax, $30,000 in PAYGW and have a personal tax bill for a directors fee of $70,000, oh and then the company also owes $6,300 in unpaid super guarantee on the directors fee.

These figures are just examples to illustrate what can happen and, could be more or less depending on your circumstances, but I’m sure you get the picture. If you have not planned for this during the year, it’s a hell of a lot of CASH that you need to find very quickly!

To ensure you are not leaving yourself open to this kind of stress and nasty surprise, talk to us now about our half-day Business Education course. It could literally save you and your business!

Contact our professional team today!