INSIGHTS: Innovation Stems From Collaboration
Innovation is one of the pinnacles of good business practice. However, sometimes innovation isn’t a process that can be achieved by one person alone. In business, some of the best ideas and practices that your business might achieve could occur through collaboration. Most businesses will have understood the impact and importance of internal collaboration between team members and already put into place tools to help promote this. However, what exactly does effective business collaboration look like? Business collaboration is the leveraging of internal and external connections in order to generate ideas, find solutions and achieve common goals for your business. It can be done internally (through collaboration with your team), or externally (through the combined efforts of multiple businesses). Many [...]
Restructure only means a setback to your business, not a closure
Restructure only means a setback to your business, not a closure: what the reforms could mean for your business With the demanding conditions that have plagued the retail industry, business owners need to be aware of all the restructuring options available. The misconceptions of formal restructures The idea of restructuring your business or reaching out for external help can appear scary and often seen as something to be avoided at all costs. However, business owners are not on their own when dealing with the difficult conditions facing them in their short-term future. No one wants to see a business fail That’s why there are always options available to businesses. However, the longer a company holds off on making a decision, [...]
Calculating Capital Gains Tax
Capital gains events can affect the way in which a capital gain or loss is calculated and when it is included in a net capital gain or loss. The type of CGT event that applies to your situation may affect the time of the CGT event’s occurrence, and exactly how to calculate your capital gain or loss. As mentioned earlier, a CGT event can involve the loss of an asset, the destruction of an asset or the sale of an asset. The Sale Of An Asset If there is a contract of sale, the CGT event happens when you enter into the contract. A common CGT asset involved with contracts of sale that is often sold is the house. The [...]
INSIGHTS: SaaS companies warrant different approaches to valuation
SaaS companies warrant different approaches to valuation and can be compared with eighteenth century steam engines (seriously). Why do accountants need some knowledge of SaaS companies? If you don’t have these kinds of clients today, you probably will in future. The SaaS business model is now well established. US-listed SaaS companies are now valued at over USD1 trillion and SaaS companies have vastly outperformed the NASDAQ and the S&P 500 over the last decade. The SaaS Capital Index maintained by SaaS Capital grew approximately 1,000% between December 2012 and 30 June 2021. Is there more pressure on accurate valuations? SaaS companies in the early stage and growth stage rely on their valuations to access the [...]
TAX INSIGHTS: CGT discount for affordable housing
An additional 10% capital gains tax (CGT) discount may be available when you sell an Australian residential rental property that you used to provide affordable housing. This move will increase the maximum capital gains discount percentage on your sale from 50% up to 60%. For the affordable housing CGT discount purposes, affordable housing is any dwelling (house, unit or apartment) where the following conditions are satisfied: The dwelling is both a taxable Australian real property (TARP) and residential premises that you rent out or genuinely make available for rent. Caravans, mobile homes and houseboats are not residential premises. The dwelling is not a commercial residential premises. Management of the tenancy or its occupancy is done exclusively by a registered community housing [...]
TAX INSIGHTS: Tax consequences of cryptocurrency
Crypto may seem like just another form of money to you, but to the Australian Taxation Office (ATO), it certainly isn’t. From their point of view, cryptocurrency is just another type of asset that people invest in, just like when they invest in shares. The tax treatment is fundamentally the same. If you buy for a dollar and then sell for $11 dollars then you have to deal with a ten dollar profit. That profit could be a capital gain or it could be quantified as simple business income. The tax consequences of cryptocurrency If you are a simple investor in crypto, you may have bought $10,000 worth of the currency, and held onto it for five years [...]