YML Finance can help you pay your ATO Debt and Division 7A Loans 

If your company owes an ATO or debt, or your company has Division 7A loans, then you might consider a loan from YML Finance. We can help you to pay your ATO debt or your Division 7A loans.  

Learn more about how we can help you by calling us on (02) 8383 4466 and requesting a callback or making an appointment with the YML Finance Team. 

How can YML help? 

Talk to our YML Finance Team today to see how YML Group can assist you with a loan. For more for more information, view our website and contact us on (02) 8383 4466 or by using our Contact Us page on our website.

Virtual Bookkeeping Services for streamlining your Business

Virtual bookkeeping helps business owners monitor their financial health. For many small to medium Australian businesses (SMEs) accessing highly skilled accounting specialists is made easy by adopting virtual bookkeeping services.  

Outsourcing and co-sourcing – using your company’s established internal resources alongside external specialists – bookkeeping services to manage your business’s financial functions and processes makes sense in a shifting domestic economy.  

With highly specialised know-how, virtual bookkeeping services can assess the financial health of your company. They can streamline your day-to-day accounting operation, potentially increase productivity by reducing costs and help ensure your business can ride the fluctuating economy with minimal stress. 

What virtual bookkeeping services offer is: 

• Cost-effectiveness as a virtual bookkeeping service often reduces the need for full-time, in-house staff, which saves on salaries, employee benefits and office space. Furthermore, your business can hire virtual bookkeepers on an as-needed basis, meaning you only pay when you use a service.

• Access to real-time financial data through cloud-based accounting software, improving decision-making as you can quickly review your business’s cashflow, expenses and overall financial health.

• Automation of repetitive tasks such as payroll processing, bank reconciliations, and invoicing, all susceptible to human error. This offers improved time management, so you can refocus your attention on more strategic tasks within your business.

• Adjustment of bookkeeping services without the need to invest in additional in-house resources as your business grows and more work is required to be done.

• Maintenance of accurate, up-to-date financial records to help simplify your tax preparation and help ensure compliance with the Australian Taxation Office (ATO)’s laws, thus avoiding penalties for non-compliance. As experts in Australian accounting standards and taxation regulations, virtual bookkeepers comply with GST, BAS, superannuation and all other statutory requirements<

By adopting virtual bookkeeping services, you can gain and maintain better control of your financial operations. Think of it as gaining an additional employee within your staff structure without the hassle of accommodating another person in your office. 

YML Group’s own virtual accounting services, a team of dedicated and trained professionals who partner with businesses and who use cloud-based technology to work seamlessly with Australian businesses’ management and staff, are available today to help you streamline your business.  

How can YML help?

Talk to our YML Business Services Team today to see how YML Group can assist you with our virtual accounting services. For more information, view, our website and contact us on (02) 8383 4455 or by using our Contact Us page on our website.

How to avoid a Director Penalty Notice

In Australia, directors should ensure that their company’s Australian Taxation Office (ATO) payments are up to date to avoid being issued a Director Penalty Notice (DPN) by the ATO. Failing to report and or pay their company’s tax obligations on time can result in a DPN, leading to personal liability for directors.  

If you are not ensuring that your company’s payments of: 

• Pay as you go withholding tax (PAYG)

• Superannuation guarantee charge (SGC)

• Goods and services tax (GST)

are accurately reported through your company’s Single Touch Payroll (STP) system, and paid to the ATO on schedule, then you will be subject to penalties, legal consequences, and personal liability as a director. 

What is a Director Penalty Notice and how does it work? 

A DPN is a legal tool used by the ATO that allows the ATO to recover unpaid tax liabilities by enforcing the personal liability of an Australian company director. 

This formal notice means a director will potentially pay outstanding company debt from their personal funds. 

Once the ATO issues you with a non-lockdown DPN, you have 21 days from the date of issue to: 

• Pay the corresponding penalty amount in full
• Engage with the ATO and negotiate a payment plan for the penalty amount

• Place the company in voluntary administration or liquidation

• Appoint a business restructuring practitioner

If you are issued a lockdown DPN, then you have failed to report and or pay your tax liabilities within three months of the due date, and you cannot avoid personal liability through voluntary administration, liquidation or restructuring. 

A DPN allows the ATO to ultimately – if the penalty payment is not resolved – pursue legal action against directors personally, including garnishing salary, seizing assets, or initiating bankruptcy proceedings to recover company debt. 

Resigning as a director does not absolve you of personal liability if the unpaid taxes were incurred during your tenure as director. 

What best practices can a director uphold to avoid receiving a DPN? 

Directors have a duty to prevent insolvent trading, and failing to pay ATO debts may result in breaches of this duty, leading to a DPN or worse, legal consequences. It is therefore in both the company’s and your best interests to be particularly mindful of your company’s ATO payments. 

Single Touch Payroll (STP) is an important system that your company uses to report its payroll information to the ATO, including salaries, wages, PAYG withholding, and superannuation. STP is crucial because it directly influences the ATO’s assessment of a company’s tax obligations. 

STP used effectively and monitored regularly by you can help to ensure that your company stays up to date with its ATO payments and help to avoid increased scrutiny and the issuance of a DPN. 

As director you can ensure STP compliance by: 

• Using STP-compliant software

• Incorporating regular software updates

• Monitoring data entry for accuracy

• Reviewing STP submissions for accuracy and promptly correcting any errors

Seeking professional tax law advice to provide guidance on your options should you receive a DPN would be prudent but rather staying up to date with your company’s ATO payments and maintaining compliance are the two best ways to avoid the implications of a DPN. 

How can YML help? 

Talk to our YML Chartered Accountants and YML Finance Teams today to see how YML Group can assist you with a Director Penalty Notice. For more information, view, our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.