• Business Review - how it can save you $000's
• How to get paid to innovate
• Tax Breaks for Green Buildings
• FBT - things you should know
• Going forward with Banklink
• Recommendations
• Reminder to Lodge - 15 MAY DEADLINE
• Important Dates
• About DSR

Welcome Note

Welcome to What's Happening at DSR in April.

All of us at Davis Stewart Rowland are looking forward to helping you achieve your business and personal goals and work towards building a successful retirement plan.

We aim to bring you interesting and tax effective ideas for saving you money, explore new developments in taxation and the way we do business, and keep you up to date with issues that may affect you and your business.

Remember...

'whatever your financial and accounting needs we can work with you to find a solution".

Business Review - how it can save you $000's

2011 is lining up to be a very unusual year. Major corrections across the global economy in the second half of 2010 are creating an environment that very few business owners and investors have ever. This has resulted in:

• Increased local interest rates
• Increasing level of business failure
• Fluctuating resource sector activity as a result of the stagnant international economy;
• Contraction in capital and funding available to businesses; and
• Banks much tougher in their lending criteria

This will flow through to the small and medium sized business sector during the year which together with reduced consumer confidence will place pressure on many businesses.

Our pre 30 June review cuts through the key areas of your business and looks at its sustainability, identifies potential risks and ensures you are maximising all opportunities.

Now is an ideal time to talk with your accountant about exploring the legitimate tax advantages to your business before paying out to the tax office.

Tax planning is a smart business decision.

FBT: things you should know

The FBT year runs from 1 April to 31 March. FBT is one of those areas that many employers struggle with; not because the tax is complex but because of the level of detail required to fulfil your obligations.

A problem area: Reportable superannuation contributions
Reportable superannuation contributions need to be disclosed on employee payment summaries. The need to report reportable superannuation contributions has been in place since 2010 but it is clear that employers are making mistakes.

Broadly, contributions made by an employer will be captured by these disclosure rules if the employee has had the ability to influence the amount of a super contribution or the manner in which it is contributed. The following are examples of situations in which employers would be required to disclose the contributions on payment summaries:

• Contributions made under an effective salary sacrifice arrangement in excess of the 9% super guarantee amount;
• Contributions in excess of the 9% super guarantee amount that are made in accordance with an employment contract or agreement;

Contributions that exceed the 9% super guarantee amount and are made to family members who are employed by a family-owned business.

It is important to note that the $2,000 threshold that normally applies to reporting fringe benefits on payment summaries does not apply to reportable super contributions.

Even though the employee will not be taxed on the amounts reported, they will be taken into account in determining entitlement to certain tax and Centrelink benefits as well as liability for certain tax liabilities such as Medicare levy surcharge.

How do I know if I need to pay FBT?
 
Here are some key questions you should ask yourself:
• Do you make vehicles owned by the business available to employees for their personal use?
• Do you provide loans at reduced interest rates to employees?
• Have you released an employee from a debt they owed?
• Have you paid for, or reimbursed, an expense incurred by an employee?
• Do you provide a house or unit of accommodation to your employees?
• Do you provide employees allowances for living away from home?
• Do you provide entertainment - food, drink or a form of recreation - to your employees?
• Do any of your employees have a salary package arrangement in place?
• Have you provided your employees with goods at a lower price than they are normally sold to the public?

Answer ‘yes’ to any of these and you are likely to be caught by FBT.

If so, speak to your accountant today to ensure you are meeting your obligations.

 Going Forward with Banklink

The Banklink System is an excellent alternative to bookkeeping and MYOB.

Since implementing Banklink in our practice 18 months ago, we have over 150 business clients successfully using the Banklink System with new users joining every week. They are discovering that the hours they spent preparing their accounts each month has now turned into just minutes. 

Your financial institution simply provides our office with a securely encyptyed electronic copy of your bank transactions. From here we can process your bookkeeping with minimal input from you.
 
No more spending hours on your computer doing monthly book work, Banklink frees up your time.

IT IS THAT SIMPLE.

So do yourself a favour and talk to us today about using Banklink for your business.

Recommendations    
        
As you well know, the lifeline of any business comes from the recommendations from existing clients.

We know that you have been pleased with our service levels so far, and believe that you may know of other businesses like yours that we could help in the same way. Do you know of anyone who would require our services? We are happy to sit down and discuss their accounting.

And to show our appreciation, each time one of your new business referrals becomes a client, we will send you a bottle of Cloudy Bay Sauvignon Blanc 2009 as a thank you.

Reminder to Lodge

Final deadline (15 May 2011) for lodgement of your 2010 income tax return is fast approaching.

With BAS and Tax deadlines falling due and the Easter break, please organise your work to our office at your earliest convenience to ensure deadlines are met.

The Australian Taxation Office may impose late lodgement penalties should your return not be lodged by the due date. 

Call our office for an appointment or email your tax work to DSR today.

Important Dates

 22-26 April - (Public Holidays - DSR office closed)

28 April - Superannuation guarantee contributions, for quarter 3, 2010-11 - contributions to be made to the fund by this date.

About Davis Stewart Rowland

Davis Stewart Rowland is a three partner firm located at The Entrance on the NSW Central Coast. With over 50 years experience we have an in-depth knowledge of what the business owner and investor needs to embark and stay on the path of growth and wealth creation.

We have a unique appreciation of the issues business owners and investors face, which makes us an integral part of our client's advisory team. Our comprehensive approach includes:

• Benchmarks
• Tax minimisation plans
• Cash flow forecasting
• Business information processing
• Management & strategic advice

Whatever your needs we can help find a solution.

Contact us today