An accountant for a family business is constantly looking at forward cash flows. Be it upcoming tax liabilities, loan repayments or lease obligations. The management of forward cashflow makes the interplay between short-term v long-term lending critical. And the management of these amounts can be critical for the ongoing success of family-owned businesses (especially start-ups).… Continue reading Short-term vs long-term financing
A family business, especially in Perth, must have a great relationship with a bank. The ability to get funds quickly and at a cost competitive rate is critical to the ongoing success of any business. The bank manager has a unique position. They act as both a policeman and as a friend. The concept that… Continue reading Does your bank manager need managing?
The tax effect on liquidating a company was probably not what Geoffrey Chaucer was contemplating when he created his famous quote. However the closure of a company has significant tax implications for many family owned businesses and many families in business. This is especially so in the Perth business environment right now. Many good families… Continue reading “All good things must come to an end.” – How does the tax system apply then?
Everybody knows about depreciation (really?). Sadly sometimes a person’s knowledge about how depreciation impacts on a family business reporting is blurry. This is also compounded by how some tax accountants in Perth are treating depreciation in the books of a family business. Business reports should not be tax reports. The charge of depreciation in the… Continue reading Why depreciation makes your business reports useless
As a business owner, especially in Perth, understanding the cost of your employees is important. And the long service leave entitlements of your work force can become a significant additional burden on the business and reduce your gross profit ratio. Understanding your long service leave entitlements The first step is to go to your employee’s… Continue reading Managing long service leave obligations in a family business
Nobody likes debt. Most business accountants around Perth will tell you that you need to pay down debt to become financially free. So when we tell our families who own businesses “don’t pay down debt” as a tax strategy we get many strange looks. Let me explain. You do not need to pay down debt… Continue reading Why it is dumb to pay down debt
The tax incentives for investing in ESIC (early stage innovative companies) are incredibly generous. Sadly ESIC tax rebates are not being properly explained to Perth families by their business accountants. A 20% tax rebate If you invest in an ESIC company the government will give you a whopping 20% tax rebate against the capital cost… Continue reading Tax perks when investing in technology startups
So we have given everybody a raft of reasons why issuing shares to staff in your family business is a bad idea. However, the simple fact remains that many people do issue shares and it works spectacularly well. So why do people issue shares to their staff? The staff want them Quite often the great… Continue reading Why your family business should offer shares to your staff
At some stage in a family business the question will come about: should I give my staff equity? Almost universally the answer should be no. This will come as a surprise to many but we will give our thoughts below Costly to set up If you give staff shares in the business you will put… Continue reading Giving your staff shares in your family business can be a bad idea
Sadly death comes to everybody. It is a natural part of life. When a loved one dies it is a time of reflection, mourning and grief. A time for sometimes being alone and for sometimes being with family. It is not a time to drive into Perth and see your lovely tax accountant. However for… Continue reading How is a deceased estate taxed?
