Is Cloud Accounting For You?

As part of the trend towards ‘cloud computing’ there has  been a major move to accounting applications being made available online. Initially,  accounting software for the cloud was very basic but it is becoming more and more sophisticated.  Quickbooks and MYOB both now offer cloud options and a major new player Xero which only provide cloud accounting is offering an excellent product for small business users.

So what are the pros and cons

• You can access data from any computer, anywhere ( even on the beach, if you can access an internet connection) – you don’t need to load the software on your computer – this also means  your accountant or book-keeper can access your data which in turn means you don’t have to backup the file, send it and then wait for your accountant or book-keeper to send it back before you can carry on entering your information – it all happens almost “livetime”.
• Cloud applications are normally on a monthly subscription basis-  when you no longer need it you simply stop paying for it.  This can mean that the software is ultimately more expensive however  you will have access to all updates and upgrades without having to download and install them and more importantly you don’t have to pay an upgrade fee each year for the software.
• Information from your bank statements is normally automatically downloaded into the software -this means less data entry and time spent by you and therefore more time for you to do what you do best – and in the case of your book-keeper or accountant doing the data entry for you, this will lead to a more efficient and accurate and less time consuming system of data entry
• In remote areas particularly cloud computing may be difficult if there isn’t a reliable broadband service.
• Some may be  concerned with security issues however all software sellers state that their clouds are encrypted and data is secure. 
• In some instances the software may work out to be more expensive especially if you are using a basic software  package and you don’t need to upgrade every year.

The attitude towards cloud computing is being compared to internet banking.  Many of us were concerned about internet banking when it was first introduced but now it is readily embraced.  If you think that cloud computing may be the answer for your business then contact us on (08) 9300 3240 to find out more.

 D& S Bence

There are new changes being proposed for companies who are lazy with their tax obligations!  Currently, if you are a director of a Companyand the company does not pay it’s tax liabilities they may be issued with a Director Penalty Notice.  If a director doesn’t act after receiving a 21 day Notice, then the ATO can hold a director of a company personally liable for outstanding PAYG deductions. What is not well known is that there is legislation being considered in parliament now that will substantially expand those personal liability provisions.

The Coming Changes
Under legislation currently before parliament, there this is a very significant move towards automatic director personal liability for some company tax debts.  The changes are in addition to the current Director Penalty Notices.  The changes are:

• Where a PAYG or Super debt remains unreported and unpaid for three months after the Lodgment Day for a return, a director becomes automatically personally liable for that debt;
• The ATO can proceed to recover that debt/penalty from the director(s);
• Putting a company into Liquidation or Voluntary Administration after the three months has expired doesn’t avoid the personal liability (under current legislation the penalty could be avoided if the company was placed into liquidation within the 21 day notice period).

What do these new proposed changes mean for you?
If you are a director of a company and that company misses its Tax Lodgment Day by three months then you will be automatically personally liable for the company’s PAYG and Super debts.  This is a change with enormous implications for directors that are lazy with their tax lodgement and superannuation payments.
 
What Should You Do?
In the past, when a company couldn’t pay its tax liabilities, directors sometimes thought it a good idea not to lodge the tax returns or BAS statements. That is now a very bad idea as it will most likely lead to personal liability. Directors need to:

• Immediately get their company BAS returns up to date;
• Always lodge the company BAS returns within three months of their due date;
• Lodge the BAS returns even if the company can’t pay them!!

In the situation where a company can’t pay the tax debt then that is a problem that needs to be addressed. But at least by lodging the return it avoids a starting position of director personal liability. In the situation where a company can never pay that tax debt a director should consider placing the company into liquidation.

If you think that you may be unable to pay your tax debt our advice is to contact us before the ATO contacts you.  We are finding that the ATO are becoming very aggressive in recovering debts and that the sooner we contact them with an arrangement the better.  We can also work with you to manage your liabilities and your cashflow including taking over paying and managing your bills if required.

- Dean Tarpey- Westside Glass & Glazing

- Denise

Tony -  Planet Inn

Diane is reliable, efficient and professional and yet sensitive to personal circumstances and was a great support to us during the recent  floods.

Susan – parrydisefruits

Diane helped me to set up my auto accessories business back in 2000, looking at the best way to set up my business and how to keep my records, she then helped me to negotiate the lease on my new store in Perth, helping me with the many documents, including the annual turnover figures required under the lease agreement, and just recently she has helped me with advice and filling out documents on a personal basis.

We meet up every quarter to discuss how the business is going and she is always available to take my calls or answer my emails – I always ask her advice before I make any decisions to do with the business. I know she always has my best interests at heart with everything she advises for the business, me and my family.

“Frankie – Aspec Auto Accessories”

You are truly a professional, and it has been a pleasure doing business with you.

I would have no hesitation in recommending you to other clients and businesses.

Andrea and Walter