13 Apr

An Eye for Now, an Eye for the Future

Let tax planning be more than just getting a bigger refund

 

It’s the last quarter of the financial year. It’s the best time to review your profits, estimate your tax bill and determine what you can do to get your tax bill as low as possible (or your refund as high as possible).

While we all love spending money on what we need now, tax planning season is also an opportunity to claim a tax deduction for growing your wealth. With the right planning, you will not only be getting money back, but you’ll be getting a return on the money you claim as a deduction.

Here’s 2 key areas for you to look at:

 

Making Contributions to your Super Fund

If you haven’t maximized your contributions to superannuation this year, make sure you do. By putting your money into super not only are you getting a tax deduction now but you are growing your retirement nest egg.

There is a limit to how much you can contribute to receive a deduction ($30,000 if you are less than 49 years old, $35,000 if you are older) so please come and see us to make sure you don’t exceed the cap.

 

Prepaying Interest on Investments

An important part of growing your wealth is leverage – borrowing money to invest in an asset of higher value. If you have a leveraged asset, consider pre-paying the interest for the next financial year.

If you have the cash available and you have had unusually high income for the year, a one-off prepayment might be what you need for some tax relief. Remember – if you prepay the interest this year, you can’t claim it next year.

Please come and see us first so we can go through the impact of prepaying your interest with you. Contact Stafford Accounting today to book in your tax planning meeting.

For more information on how we can help you and your business, contact us today.

11 Apr

How to get the most from your accountant- Tax time

The best accountants add value to your business – here’s how to make sure your accountant is ticking all the boxes.

1. An accountant that understands personal wealth

Your accountant should advise your business on its needs, ranging from start-up costs to business succession planning. However, here at Stafford Accounting we can offer more! You see behind every business is a person and a family. This creates opportunities to put in place structures to save you and your business tax, time and stress.

 

2. Gives proactive advice

If you’re finding your current accountant is telling you about the problem after the fact, then your accountant is not doing his job. At Stafford Accounting we strive to achieve proactive advice through three fundamental factors. These include getting Stafford Accounting to do your monthly bookkeeping, access to data through Xero and scheduling for either monthly or quarterly meetings that include tax planning discussions. Sometimes you’ve got to spend money to make money.

 

3. They understand the vital role technology plays in a modern business

Accounting software has changed; products like Xero work exceptionally well for your business accounting needs. They enable your business to connect with a multitude of other cloud based add-ons that can help your business – from inventory management to time management.

 

4. Ask twice if you don’t understand

Business and tax advisory is not easy to comprehend. Don’t be afraid to ask questions until you understand the situation. We at Stafford Accounting can simplify the situation along with providing a plan that clearly sets out your path moving forward. It’s your future. Your money. Your outcomes.

 

Stafford Accounting- your business advisor, accountant and bookkeeper all rolled into one. Get ready for real advice, not just accountancy.

 

Stafford Accounting puts you in control. You choose the services that you need, and we’ll deliver them all at a price you can afford, with a clear mutually agreed service and action plan. If your accountant is not fulfilling your needs, it’s time to have a chat to us.

 

For more information on how we can help you and your business, contact us today.

06 Apr

Give your superannuation a boost

An alternative way of building up your retirement savings

While most of us will hopefully accumulate enough superannuation throughout our working lives to have a comfortable retirement, many of us simply won’t have the funds there to splurge on something nice every now and then.

What if we could tell you there’s a way to boost your superannuation earnings that reduces the amount of tax you have to pay on your contributions at the same time – would you be interested?

Consider purchasing an investment property within a Self-Managed Superannuation Fund (SMSF). The interest on the Investment property loan is 100% tax deductible which means not only will you be making more money; you’ll be saving tax at the same time!

The other benefit of investing in property through your SMSF is diversification. Some people are tired of the share market’s ever volatile state and prefer property as an investment. Investing in property in additional to shares will mean you won’t have all your eggs in one basket. This gives you peace of mind knowing a sharp downturn in shares one day won’t be the end of your retirement savings.

Sounds good? Absolutely, but it isn’t something you should rush into without discussing your situation with your Accountant or Wealth Advisor first. Investing in property through an SMSF can be complex and will require some expert external knowledge to get you started

Make an appointment with Stafford Accounting today to discuss your situation and see if property within an SMSF is right for you.

For more information on how we can help you and your business, contact us today.

04 Apr

The two biggest expenses you will ever have, and you’ll want to make one bigger…

In your lifetime you will encounter many, many expenses. Doctors and dentists, cars and houses, repairs and replacements but there are two expenses that dwarf them all.

 

Tax & Retirement

Retirement

Think about it, when you retire you stop working, that doesn’t mean your expenses stop rolling in. How much will you really need in retirement?

 

The average life expectancy for Australian males is approximately 80 years of age and 84 for females.

 

So when did you say you wanted to retire?

 

It doesn’t matter how old or young you are its time to start taking your retirement seriously. Who knows, if you get quality advice now you may even be able to retire early! Or follow your passion and do what you love without having to worry about your pay packet.

 

Along the way you’ll have another HUGE expense…

 

Tax

This is the one you do NOT want to get bigger. Legally reducing tax is one of the best strategies for improving your financial position. Which, in-turn can help with that retirement fund.

 

If you currently pay in tax $20,000 (which is the approximate amount of total taxes you would pay if you earned $82,500 in this financial year) and you speak to a skilled tax accountant (say for instance Stafford Accounting), with some quality tax planning and depending on your circumstances they could help save you $1,100 after their fees. If this happened each year, and each yearly $1,100 was invested each year at 6.5% p.a., it would return more than $100,000 over 30 years, and that’s when you start from scratch (i.e. zero savings). That’s an extra $100,000 for doing NOTHING.

 

So how long can you afford to wait to get this sorted?

 

Now is the time to get started! Call Stafford Accounting today for a FREE discussion on your Tax and Retirement strategies to ensure yourself a better financial future.

For more information on how we can help you and your business, contact us today.