News
Have you cooked your goose?
The Tax Office is increasing their tax compliance (audit) programme across numerous areas this new financial year. It is well known that the cash based business community is running rampant with undisclosed income. It is also known that there is a growing trend for employers to force employees to become contractors and therefore effectively become self employed so that they can attempt to avoid employee financial responsibilities. And, many people have the mistaken belief that by being contractors/self employed with company/trust entities that they have access to more tax deductions and can split income more easily can also be caught out. The ATO are becoming increasingly more sophistocated with fraud detection. Benchmark auditing is much more widely used now. Is it worth the risk? An audit is expensive in terms of emotional and financial cost to the audited person. On top of that, illegally reducing income to avoid tax has other unforseen consequences. It inhibits borrowing capacity (unfetted Lo Doc loans are a thing of the past). It severely reduces your ability to sell your business. It reduces your ability to obtain and claim under income protection insurance. It causes anxiety that damages health.
And, you can maximise your wealth through careful tax planning that is legal. Why go through all the above risks when you can improve your business or improve your wealth through legitimate tax planning strategies. The cost of our advice is far less than the cost of an audit. Check out our brochure on the home page.
Summer 2011 Newsletter
Newsletter Summer 2011.pdf; Newsletter Summer 2011 Page 2.pdf
Do we charge for phone calls? - certainly not!
We want our clients to ring us before they make any decision about their business or investment. So why hinder our clients in involving us in their decision making process by the fear that they will be charged for the call? So often, clients of Accounting Practices go ahead with significant cost decisions without phoning their Accountant first because they fear the consequent charge. We would rather not charge, you make the right decision and we benefit down the line because you have become more successful with your decision. Makes sense doesn't it? We are investing in your future and we are investing in our future.
Don't be fooled by the major banks latest marketing - it is only skin deep!!!
Banks spend a lot of money on marketing to try and show a point of difference. And often, the difference is only skin deep. But they are exploiting the latest "band wagon" - ban exit fees. But when you do the calculations, the perceived benefits are not there and they are hoping to snag the uninformed by glossy advertising and by offering a small carrot.
Please, before you get caught by this glossy advertising, come to us to do a real calculation of the difference between lenders loan products. You might be surprised. And if you are in the wrong product or with the wrong lender, we can arrange the refinance for you. But, we have to show you that there is a real financial benefit to change, otherwise we will not recommend a change of lender or loan product.
And for this service, our fee is NIL. This is wise money spent before rushing off incurring extensive refinance costs that you might not needed to have thrown away. Makes financial sense - doesn't it? Don't trust the banks and don't trust their marketing.
The growing popularity of the finance broker proposition
With regulation of the broker and finance industry, the awareness and use of the finance broker is growing. We all know that the major benefit of using a mortgage broker is that they represent a large panel of lenders so that as a borrower, you are more likely to get the right loan product to suit your finance strategy. After all - the appropriate finance strategy is the one that assists in generating future wealth - one of the four quadrants to wealth accumulation. By going direct to a lender of course you are only going to be offered their range of loan products. Check the attached article regarding the research of broker popularity. Article - Broker News - Broker Proposition Popularity 25-02-11.pdf
Exit Fees - to ban or not to ban
The govenment is trying to introduce legislation to ban exit fees (DEF's - deferred establishment fees). This is an area that has not been researched and the industry has not been consulted sufficiently to determine the consequences. In my opinion, by banning exit fees, they are creating a market where compeition is reduced, not increased as they think. Many lenders such as mortgage managers can only compete with their interest rates by having exit fees to encourage borrowers to stay with them for up to 4 years - the period that the lenders do not make much profit.
This method is far preferable than charging up front fees where every one pays. Most borrowers do not change their loans inside 4 years so most borrowers do not incur these fees. By far the greatest impediment to refinancing has been the cost of mortgage insurance - not exit fees. Further, refinancing has become increasingly difficult with lenders tightening lending criteria owing to the new Licensing regime that brokers and lenders must abide by and in particular the responsible lending provisions. So even if the ban exit fees, it is still costly and difficult to refinance your loan.
I believe that if the Government truly believes that they should improve competition in the lending market, they should look at all of these aspect to borrowing including mortgage insurance portability, lending criteria and reducing equity. And lets not forget, the ofen motivation to refinance is to access equity - do we want to make it easier so that borrower get into more debt for the wrong reasons. You can all refer to my article below on Debt Stategies.
What is the risk to finance interest rates?
Check this article appearing on ABC webb site. Article - ABC - Borrowing Costs 2-02-2011.pdf
Why a Business Financial Health Check?
Often in business when we struggle with debt, reduced sales, cash flow problems and credtitors and ATO constantly ringing, we feel that we are all on our own.
Bringing a business back to profitability and positive cash flow is not rocket science. It takes persistence and good recording, measuring and marketing strategies to achieve this.
Burying your head in the sand won't work. The problems only get worse. And when we feel alone, then we suffer with motivation and lose direction which compounds the problem - we start to think it is all too hard.
So, the significant benefit of a Financial Healt Check is to engage a professional who will bring the team effort back into your business. Together we can develop business measuring systems and look at strategies to arrest under performing aspects of your business. If you don't know where your problems are - how can you possibly make decisions about what to change?
We are not Business Coaches - we are Professional Accountants and Business Advisors in business like you and we are your partners wanting you to succeed in business. We don't charge big annual fees - we only charge for the time we spend with you and your business. This special once only fee is just to provide a working paper on your current situation fro where we can develop strategies going forward.
Business Financial Health Check 23-11-10.pdf
You have to love this one.
Article - F16 vs C130 - Us Older Folk Understand.pdf
Don't let your debt get on top of you
As the following articles shows, more and more people are going bankrupt because they let their debt grow into a big problem. This applies to people of all levels of income and this article is highlighting the middle class sector. However, there are strategies that can be employed to reduce your risk to debt failure. If you feel that debt is getting on top of you, please seek help. We are more than happy to talk to you about debt strategies and looking for solutions for you. DEBT MANAGEMENT Flowchart new.pdf
What is it that sets me apart from many Mortgage Brokers?
When I started the finance business in 1995, I saw a niche requirement for investors and business owners to structure their finance needs with the best taxation advantage. I am uniquely qualified to give clients both finance and taxation/accounting advice at the same time, and I offer advice services that include both the most appropriate finance arrangement from the product perspective and at the same time, gain the best tax advantage or reduce the risk of incorrectly structuring finance from the tax perspective. Please review the article and feel free to contact us if you want to make a difference in your business. Article - What is it that sets me apart from many Mortgage Brokers.pdf
Bite your tongue
The rules of business we forget about when we are dealing with customers who we feel are not fair/polite or who simply are so difficult that we wish we hadn't met them. Read the attached article. This article has so well articulated the concept of customer comes first. Always smile at your customer and never tell them how to behave. Don't you hate going into businesses that have rules of behavour plastered all over their walls - excuse me! why on earth do they want customers coming into their shops. Article - The Rules of Business - Mortgage&Finance Brief 10-6-10.pdf
Why are you in Business?
A very thought provoking article on why are you in business. Our specialty as Accountanting Advisors and Finance Advisors is to assist you to not only grow your business, but to maximise the value of your business over time so that you exit your business with a true capital gain. A business is not a job. A business is innovation, effort, committment and investment. Please review the article. Article - Article - Why are you in Business TAA 16-2-2010.pdf
Beware of Tax Information and advice gained from around the Bar-Be-Queue
We are often asked about deductions or tax strategies because the enquirer has heard about something from around the Bar-Be-Queue. There is considerable risk in following the advice of anyone who is not a registered Tax Agent or appropriately qualified tax advisor. Please read the attached article about the pros and cons of incorrectly preparing tax returns and the tax audit consequences. Article - Beware of Tax Information gained from around the Bar-Be-Queue 22-1-10.pdf
Offer of free Comparative Market Analysis Report for your property - value $75
Are you curious to know what you property is worth?
Do you intend to visit a Financial Planner and having this information is useful for your questionnaire?
Do you wish that you could tap into your equity to refinance overburdening consumer debt?
Are you considering purchasing a rental property but you are not sure of how much equity you have?
Do you feel the need to have a review of your current mortgage?
We can arrange for a Comparative Market Analysis Report of your property which also gives you the estimated worth and back up sales history and research data. And we will do this for free (Value $75) if you contact us for a mortgage review or you engage us to complete your tax returns this year.
So please give us a call or email us if you would like to take advantage of our unique offer. There is no cost to you so what do you have to lose? And there is no obligation - we will not recommend you change your mortgage unless we can demonstrate a clear financial benefit to you.
Boost your business in 2011 and start by reading these two articles
I have attached two articles written by Noel Spann, CEO and Chief Coach of ECROtrain and G25 LOCAL Business Achievers Clubs. The first one "Winners and Losers" is about five great motivational drivers to achieve business success. The second one "Sell what people want to buy" sounds basic but it is a business principal many proprietors simply forget - or they get caught up in what they think their business should sell or service they should provide.
Financial Milestones is a member of G25 LOCAL Business Achievers Clubs. I am in there to learn the dynamics of business and I am in there to encourage as many of our business clients to participate and learn how to grow their businesses or take their business to the next level.
Many business owners are their own worst enemy. They cannot move out of their comfort zone. They allow their business to run their lives rather than run their business so that they can enjoy their lives.
I have taken many of the principals and programmes of G25 and installed them into my own business. Even though I believe that I have the experience and skills to grow a business, neverthless, I can always learn more. And I have G25 as my mentor and motivator - especially important for businesses where the owner is a sole operator. And you can always learn from owners of other businesses in different industries - look outside the square.
Regards, Derek Miles - Principal - Financial Milestones
Winners and Losers.pdf; Sell what people want to buy.pdf
Scoping study of small business tax compliance costs - ATO
There is an interesting exposition produced by the Tax Office attempting to define the nature of small business. A lot of tax and other commercial legislation incorporates definitions of small business. One of the significant issues pertaining to small business apart from how they are taxed, is the costs borne by these businesses in compliance. That is to comply with the tax laws and collection and other governmental (both Federal, State and Local government) compliance requirements. Another interesting aspect of this study is that it produces data suitable for marketing purposes - who should you pitch your business at. This report should be used as a basis for any business strategy developement. Scoping Study of Small Business Tax Compliance Costs 12-07.pdf
Lazy bank customers cost themselves billions! - 27/10/2009
According to a new report which has found that Australians are costing themselves up to $6.1billion a year by not seeking the best value banking options. This cost is mostly caused in not selecting the best option with their mortgage. Now this has to be tempered with cheapest mortgage versus the most appropriate mortgage. Cheapest is not always the best and it largely depends on what a borrower needs in their long term borrowing strategy. If for instance,a borrower is going to change their borrowing requirements on a regular basis such as purchasing more property, then the cheapest loan may, in the end cost more with variation fees. See my article below "Professional Package Home Loans are not for everyone". For information on the report, refer to the attached article from ABC News. Article - ABC - Lazy Bank Customers Cost Billions 27-10-09.pdf
Has your identity been stolen?
A recent Study has shown that one in five Aussies have had their identity stolen. For the victim, this could be devastating and terribly inconvenient. Please read the attached article to see how this crime is committed and how you can mitigate your risks. Article - Has your Identity been Stolen 5-10-09.pdf
Financial Milestones Sponsorship
Financial Milestones is a sponsor of the Darling Point Sailing Squadron with a donation arrangement for any loan completed for either a member or familiy or friend of a member. Simply complete the attached flyer and the donation will go to the club. A similar arrangement is available for any new client for tax and accounting coming from the club. Download the flyer here so that the donation goes to the club: Financial Milestones Sailing Club Flyer 090312.pdf; Tax Accounting Advisors Sailing Club Flyer2.pdf
Property Tax Analysis
At Tax & Accounting Advisors we can analyse your tax benefit on any investment property purchase. Why not have this analysis prior to any investment property purchase - it is better that you know your tax benefits and cash flow requirements before that significant investment decision. Why not get us to compare a number of properties? Property Investment Analysis - NG front page.pdf; Property Investment Analysis - NG Cash flow page.pdf
To Fix or Not to Fix - a question on everyone's mind.
We often get asked the question, is this the time to fix rates? There are a number of reasons why you might fix rates, however, it is almost impossible to calculate whether you will gain by fixing or staying with variable. It is a brave person who can predict what the variable rates will do over the next 5 years. We have written an article that talks about factors to condsider when deciding whether to fix or not and includes an example of a simulation on comparing fixed rates with predicted variable rates over 5 years. These rate predictions are a simulation only and are not to be taken as any prediction of variable rates in the future. Article - To Fix or Not to Fix - 18-9-2009.pdf; Fixed vs Variable Rates.pdf
Are you Risky Business?
Why is it that borrowing for business is so different to borrowing to purchase property. Read the attached article to see why. We are also professionals in business and commercial finance. Article in emPRESS Magazine Issue 1 03 - Are You Risky Business.pdf
Insight with Derek Miles - Empress Magazine
Article - Insight Derek Miles.pdf
Professional Package Home Loans are not for everyone
Careful consideration of the difference in costs should be taken into account when choosing a loan with a professional package as opposed to a basic home loan. You can still employ mortgage reduction strategies with a basic home loan. View the article to see the difference in costs and a diagramme of how to use mortgage reduction strategies with both types of loans. Article - Basic vs Professional Package loans 20-9-09.pdf
