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.

Your SMSF and Estate Planning – What to consider

You can integrate your self-managed superannuation fund (SMSF) in to your estate plan, providing you the ability to distribute your retirement savings to your beneficiaries upon your death. It is important to remember to have a valid and current Will to enable you to include specific instructions about your SMSF, as personal superannuation is not generally an automatic inclusion in an Australian Will. 

When estate planning with a SMSF, it is important to address Members, Trustees and the Fund itself.   

Factors for Members to consider are: 

• A Binding Death Benefit Nomination (BDBN), a directive given by a member to the SMSF trustee to pay a member’s superannuation benefit to specified beneficiaries upon a member’s death. A binding nomination legally obliges the trustee to follow a member’s instruction, whereas a non-binding nomination gives the trustee discretion in distribution. 

• A Reversionary Pension which allows a member’s superannuation income stream to continue to be paid to a nominated beneficiary (usually a spouse), providing ongoing financial support, upon a member’s death.  

• Taxation, in terms of what form death benefits from the SMSF will be paid to beneficiaries, either taxable or tax-free, depending on the relationship of each beneficiary to a member. 

• Corporate trustees and to whom a member will leave the shares. 

Questions for Trustees to ask are: 

• What are the SMSF’s rules around the instructions for a member’s wishes to be carried out? 

• In what financial position is the SMSF for the carrying out of a member’s wishes?  

• Can death benefits be paid to beneficiaries in required timeframes? 

• Are the SMSF’s investment diversification and liquidity sufficient to pay death benefits? 

Fund compliance issues to address are: 

• The appointment of a new person to act as Trustee in place of any deceased member or to act as Director of a Corporate Trustee.  

• The taxation outcomes generated by the selling of assets, such as Capital Gains Tax (CGT) to be paid upon the sale of property. 

• The distribution of any insurance proceeds for policies held for a deceased member, and whether to claim any tax deductions on unused current year insurance premiums. 

• The continuation of the SMSF upon the death of a member, depending upon the SMSF structure and number of members, as well as whether its trust deed continues to support estate planning objectives made prior to a member’s death. 

Undertaking regular reviews and updates and seeking professional legal, taxation and financial advice are part of ensuring a SMSF estate plan is comprehensive, tax-effective and legally sound.  

How can YML help? 

Talk to our YML Super Solutions Team today to see how YML Group can assist you with your SMSF estate plan. For more information, view, our website and contact us on (02) 8383 4444 r by using our Contact Us page on our website.

Restructure Relief Options – Small Business Restructure Rollover

Australia’s Small Business Restructure Rollover (SBRR) is a concession available to small businesses, providing immediate taxation relief via the deferral of capital gains tax (CGT) on active assets being transferred as part of a genuine business restructure. The SBRR provides several benefits to small businesses, assisting them to adapt, grow, and optimise their business operations. 

What is an active asset? 

An active asset is defined as a tangible (or intangible) asset currently used (or connected), or held ready for use, while carrying on a business.  

What are the eligibility criteria for the SBRR? 

• An eligible small business entity with an aggregated turnover of less than $10 million 

• From 1 July 2016, active CGT assets and other active assets were transferred between another small business entity, a small business affiliate or small business partnership 

• A genuine restructure of an ongoing business to improve a business, not an artificial or inappropriately tax-driven scheme, occurred for the transfer of active assets 

• There was no change in ultimate economic ownership of the transferred active assets 

What are the key benefits of the SBRR? 

• Immediate CGT taxation relief – without the financial burden of upfront CGT payments upon transferring active assets during a restructure, businesses can reallocate financial resources to business operations during and after restructuring 

• Improved cash flow management – by deferring CGT, businesses can reinvest savings to help manage their day-to-day, and to develop their longer-term business goals 

• Flexible restructuring – the SBRR applies to various entities (individuals, partnerships, companies, trusts), providing a choice of suitable restructuring, and it applies to various active assets used in businesses for a broad range of purposes 

• Business value preservation – the SBRR can help preserve the value of businesses and thus help maintain business and financial continuity during restructuring 

• Reliable taxation planning – the SBRR provides for the tax treatment of restructured assets to remain certain, so businesses can confidently prepare their financial and strategic plans 

• Business growth opportunity – by deferring CGT of active assets under the SBRR, businesses are encouraged to invest in new business opportunities, research and development 

The Small Business Restructure Rollover is a valuable tool for Australia’s small businesses, offering significant deferred tax relief, restructuring flexibility, and greater opportunity for business growth and innovation. 

How can YML help? 

Talk to our YML Chartered Accountants and YML Finance Teams today to see how YML Group can assist you with the SBRR for your small business. For more information, view, our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.

What happens if I don’t have a Will?

A Will is a legal document that sets out how you want your assets to be distributed after your death. You can make specific bequests to individuals or organisations. You can ensure that personal items and special assets go to your choice of people and causes.  

What happens if I don’t have a Will? 

If a person dies without a valid Will, they die intestate, which means that the distribution of their estate is governed by the intestacy rules set out in the Succession Act 2006. If so, it could be that your wishes might not align with the way your estate will be distributed under the intestacy rules. The rules determine the order of priority among surviving family members, rather than following the distribution you would have outlined had you created a Will. 

Not having a valid Will in NSW can lead to several other significant risks and complications for your estate and your loved ones. Some of the key risks of dying intestate are: 

• Potential disputes among beneficiaries, leading to tension and strain in family relationships 

• Higher legal and administrative costs due to the need for court intervention 

• Depletion of estate due to costs, leaving less for beneficiaries, including those who might rely on your estate for living expenses 

What constitutes a Will? 

A valid Will must: 

• Be in writing; handwritten or printed 

• Be made voluntarily, without coercion or undue influence 

• Signed by the Testator, the person making the Will 

• Signed by two witnesses in the presence of the Testator 

• Be created by a Testator of sound mind and having a clear understanding of the purpose and content of their Will 

A Will allows you to appoint an executor, the person who will be responsible for administering your estate by carrying out the instructions in your Will. 

You will likely want to ensure that your minor children are looked after by someone you trust in the event of your death. You can include guardianship instructions for any minor children in a Will by nominating a guardian. 

A Will can be updated by creating a separate document (a codicil) or by making a new Will. It is worthwhile reviewing your Will regularly over the years to ensure it remains relevant to your wishes and to your beneficiaries. 

As your life circumstances change over time or you change your mind about the content of your Will, a Will can be revoked by destroying the old Will with the intention of revoking it, or by marriage or divorce, and then creating a new Will. 

A Will can be contested on various grounds, such as unequal or unfair distribution, or lack of provision for dependents or certain individuals; lack of capacity of the Testator; coercion or undue influence; fraud and/or forgery. 

You can minimise family disputes over your Will by setting out clear instructions that avoid ambiguity regarding asset distribution and by meeting legal requirements of a Will for a smoother administration of your estate. 

Probate is the legal process of validating a Will and your executor will apply to the Supreme Court of NSW for a grant of probate, authorising them to distribute your estate according to your Will. 

Do I need help to create a Will? 

It is worthwhile seeking legal assistance when drafting or updating a Will to ensure it complies with all legal requirements and accurately reflects your wishes. It can give you peace of mind to know that you have a legally binding document for your loved ones, reducing the risk of complications during the probate process. 

How can YML help?

Talk to YML Legal today to see how YML Group can assist you with the creation and management of your Will. For more information, view, our website and contact us on (02) 8383 4499 or by using our Contact Us page on our website.

Will you benefit from a SMSF loan with an offset account?

The simple answer is: Yes. Depending on the loan structure arrangement, it is typically beneficial to have an offset account attached to a SMSF loan.

An offset account reduces the interest payable on your loan by offsetting the balance against the loan principal. This can lead to interest savings, thereby lowering your SMSF’s expenses.

Overall, where your SMSF has lower expenses and makes savings, there is the opportunity to generate higher net investment returns, potentially leading to a healthier SMSF outcome for your retirement.

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 your SMSF loans. 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.

Outsourcing and Co-sourcing to increase Productivity in a shifting Economy

Post-pandemic Australian businesses are facing a shifting domestic economy. Fortunately, they are at the forefront of adopting businesses practices that can and do optimise their business operations. Outsourcing and co-sourcing are two such strategic approaches to strengthen your company’s competitiveness by increasing productivity, reducing costs, and readily adapting to changing market dynamics.

Co-sourcing is a hybrid model – blending your company’s established internal resources with partial outsourcing for greater specialised knowhow. It is a collaborative strategy, combining existing in-house resources with an external service provider to manage certain functions or processes, proving beneficial by ensuring an agile response to challenges your business confronts in its day-to-day undertaking.

A co-operative and mutual partnership is created through co-sourcing, enabling your company to maintain control and oversight over critical aspects of your business whilst leveraging external skilled talent and guidance that might be lacking. Think of it as gaining an additional employee within your staff structure.

In Australia, co-sourcing has gained prominence in recent years as Australian businesses emerge from the pandemic into a tightening labour market with a skills shortage. By taking advantage of co-sourcing, your business benefits from an access to a wealth of specialist knowledge and skillsets, specifically trained to work alongside Australian companies.

In the context of Australia’s current business economy:

• Outsourcing offers a deep understanding of Australia’s complex regulatory environment, helping businesses navigate legal and compliance challenges.
• Outsourcing can help businesses harness the latest technological advancements without the burden of large-scale technology investment.
• Outsourcing enables companies to stay competitive by accessing global talent and resources, helping Australian businesses to compete both domestically and internationally.

With careful planning and management to be successful, outsourcing and co-sourcing create opportunities for companies who thrive on performance metrics to meet their business objectives for the long-term.

Propel your business forward with YML Group’s own services in administration disciplines, dedicated and trained professionals who partner with businesses and who use cloud-based technology to work seamlessly with Australian businesses’ management and staff.

How can YML help?

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

What is your EOFY accounting strategy? How will you finance your EOFY business asset acquisitions?

End-of-financial-year 2024 – 30th June – is looming and it is time to ensure your accounting strategies will improve your 2024 tax return. At YML Chartered Accountants we work in partnership with you to minimise your taxation obligations because taxation can be a major cost to your business. Let us put you in to prime position for taxation purposes, potentially resulting in a greater gain for your business as you start the new financial year on 1 July 2024.

We offer practical guidance and can help you by implementing accounting strategies for complex taxation matters. We update you on key changes and requirements that could afford you a better outcome on your annual tax return. And we have some pointers to get you started on your imminent 2024 tax return preparation:

What you can do NOW – before 30th June

• Start by reviewing your forecasted tax obligations, so you can avoid any surprises when preparing your 2024 tax return
• Check your accounting records are up-to-date as at 30th June 2024
• Scrutinise documentation and ensure you have receipts for all 2024 financial year transactions
• Write off bad debts by 30th June
• Defer income received-in-advance – for goods or services not yet provided – to the 2025 financial year
• Bring forward legitimate deductions to the 2024 financial year
• Prepay (qualifying) business expenses (in small businesses) that relate to a 12-month period or less
• Take advantage of the $20,000 instant asset write-off (in small businesses with an aggregated turnover of less than $10 million) for eligible purchases of assets (up to $20,000 per asset) that are first used or installed ready for use between 1st July 2023 and 30th June 2025
• Pay employee superannuation guarantee by 30th June to claim a deduction
• Commit to employee bonuses by 30th June to claim a deduction
• Reconcile payroll and prepare single touch payroll (STP) reports in accordance with Australian Taxation Office (ATO) due dates
• Declare and pay company dividends to shareholders
• Determine and distribute trust income to relevant beneficiaries
• Make donations to deductible gift recipients by 30th June to claim a deduction

Finance for BUSINESS ASSETS – vehicle and equipment

The end-of-financial-year is a great time to start thinking about any business assets you might need to purchase to improve your business efficiency.

Reap a taxation benefit in the 2024 financial year by making your business asset purchases before 30th June.

Do you need a new work truck? New office equipment to boost your business productivity?

This time of the year is ideal for scouring vehicle dealerships and equipment suppliers for a sale and a bargain. YML Finance, with its strong relationships with many lenders, can help you negotiate finance for your new business assets, such as vehicles and office equipment.

Based on your company’s specific finance loan needs, we also find you the lowest interest rates on business loans, prepare your loan application, develop your loan structure, and support you throughout the life of your finance loan.

YML Chartered Accountants and YML Finance offer you a complete and comprehensive range of taxation accounting and finance expertise and resources to give you a great start to financial year 2025.

How can YML help?

Talk to our YML Chartered Accountants and YML Finance Teams today to see how YML Group can assist you with your EOFY 2024 accounting strategy. For more information, view, our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.

Dropbox Sign

What happened
Dropbox Sign customer information such as emails, usernames, phone numbers, hashed passwords, multi-factor authentication, and general account settings were obtained. Based on their investigation, there is no evidence of unauthorized access to the contents of customers’ accounts (i.e. their documents or agreements), or their payment information.

What Dropbox has done
When they became aware of this issue, they launched an investigation with industry-leading forensic investigators to understand what happened and mitigate risks to their users. In response, their security team reset users’ passwords, logged users out of any devices they had connected to Dropbox Sign.

What YML has done
When we become aware of this issue, we stopped sending our documents through Dropbox Sign. We conducted our own internal review and audit and can confirm that there is no evidence of unauthorised access to our client documents. We have also changed all our user passwords and are currently in the process of adding multi-factor authentication to all our users. Once this process is complete, we will resume using Dropbox Sign.

What you can do (only applies if you have a Dropbox Sign account)

• Passwords and multi-factor authentication. Dropbox expired your password and logged you out of any devices you had connected to Dropbox Sign to further protect your account. The next time you log in to your Sign account, you’ll be sent an email to reset your password. Customers who use an authenticator app for multi-factor authentication should reset it as soon as possible. Please delete your existing entry and then reset it. If you use SMS, you do not need to take any action.

• If you reused your Dropbox Sign password on any other services, Dropbox strongly recommends that you change your password on those accounts and utilize multi-factor authentication when available.