Going concern on the business premises
Division 38-J of the GST Act provides that the supply of a going concern is a GST free supply. Division 38-J states that in order for a supply to represent the supply of a going concern, the supply must be for consideration, the recipient of the supply must be registered for GST, and the supplier […]
Steps to get out of debt
Changing market conditions, shifting consumer trends, and increased competition can all impact your business’s operating environment and make restructuring necessary. Business restructuring can consist of organisational and financial restructuring, with the former focusing on employees and processes, and the latter addressing the balance sheet. When done right, a business restructure makes your business more dynamic and […]
Simpler Trading Stock Rules for New Business
If you are operating a small business and at the end of the income year you estimate that your trading stock’s value has not changed by more than $5,000, remember (especially if you are new to business) that you can choose not to conduct a formal stocktake. By making a decision to do this, you […]
Signs of a Struggling Business
A struggling business may show overt signs as the situation worsens and comes to an end, but often there are small signs long before this that can point to trouble on the horizon. An early warning sign for businesses is that there is a disconnection between operative cash flow and available resources. This can be draining or using cash resources or just making payments on time as cash comes in.
Interest after the business stops
An issue that sometimes arises for business owners is whether interest expenses incurred on borrowed funds used in a business remain deductible after the business’s income earning activities have ceased. As a general rule, in order for interest expenses to be deductible in the relevant income year, a taxpayer is generally required to demonstrate that […]
Business Restructure Basics
Changing market conditions, shifting consumer trends, and increased competition can all impact your business’s operating environment and make restructuring necessary. Business restructuring can consist of organisational and financial restructuring, with the former focusing on employees and processes, and the latter addressing the balance sheet. When done right, a business restructure makes your business more dynamic and […]
How to Approach a Commercial Lease
Signing a commercial lease is no trifling matter; it’s a legally-binding agreement with serious financial strings attached. A commercial lease is an agreement between the owner of a commercial property and someone who wants exclusive use of it for a set period. It normally applies to an office, warehouse or factory. The success or failure of […]
Running a business through a SMSF
Under the regulations, self-managed super funds (SMSFs) are not prohibited from carrying on a business, however the business must be: – allowed under the SMSF’s trust deed, and – operated for the sole purpose of providing retirement benefits for fund members. Note however that the rules governing SMSFs prohibit or limit some activities available to […]
Basics of Employee Share Schemes
Motivationally speaking, there’s not much that beats a financial reward. And as it is generally accepted that business owners are the most driven to see their business succeed, giving staff a real stake in an enterprise through owning shares in it is an incentive, and a reward, that many companies have utilised. Having a vested […]
10 Signs of Business Problems
Not every business endeavour is a straight path to success, and even some of the most successful ventures of all time have had periods where ends barely meet, or the future of the company might be in jeopardy. Instability in business is a facet of life, and recognising the tell-tale signs is vital to not […]
