Freelance Accountants2u

03/06/2017

2017-18 budget changes to depreciation for investment properties to affect investors?

Some may not be aware that from July 1, 2017, the Government intends to limit plant and equipment depreciation deductions to outlays actually incurred by investors in residential real estate properties. In other words the investor has to purchase new plant and equipment in order to claim depreciation. However, disallowed deductions will be reflected in the cost base for any capital gains tax later.

Fortunately, existing investment properties purchased prior to the budget day, 17 May 2017 would probably not be affected. Also, non residential properties are not affected.

Plant and equipment refers to items that are normally removable from the property such as ceiling fans, oven and cooking facilities. With this new measure, the investor can claim depreciation only when these items are purchased brand new.

So questions in our minds would be “What is this budget measure trying to achieve?” Relevant areas impacted would be:

As revaluation of existing plant and equipment has been allowed, there were problems around accuracy of deductions being claimed on plant and equipment by successive investors of old investment properties. With this measure, the issue will be put to rest.

Higher depreciation figures in the early years make an investment property more attractive. Fortunately, plant and equipment typically constitute a smaller percentage; say 10% of the cost of a new build. Remaining 90% that mainly relate to capital works will still be deductible. So investment property owners will still benefit from a depreciation schedule.

On the current hot topic on housing affordability, the obvious effect relate to the scenario where property investors will not realise the full potential deductions or get as many deductions on the next one if existing properties are being disposed of in shorter periods.

Perhaps the government see this measure as relatively non-contentious and another source of funding to support the budget. This measure may influence the individual investors but time will tell the extent of impact, if any, on housing affordability.

26/06/2015

Some tax tips on the $20,000 instant asset tax write-off

For businesses that have annual revenue of up to $2 million the accelerated depreciation applies to all asset purchases( up to the value of $20,000) Such small businesses are allowed to immediately write-off the full value of the asset (instead of the existing $1,000 instant write-off), thus reducing the amount of tax to be paid. (assuming sufficient profits to utilise the write-off)

Some finer points to note:
• Assets (new or second hand)that were first acquired from 12 May 2015 to 30 June 2017, after which the threshold will revert to the existing $1,000.
• Asset must be for an income-producing purpose for the business
• Government will be looking out for artificial arrangements (such as entities that sell assets to one another to take advantage of the increased threshold)
• Although this is an encouraging incentive, spending up to $20,000 on an asset just to get the tax deduction might not be prudent.

24/06/2014

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16/05/2014

At Freelance Accountants2U, we strive to provide competitive accounting services for our clients. To find out more send us an email on our website www.freelanceaccountants2u.weebly.com

16/05/2014

The Federal Government Budget for 2014

Check it out at: http://www.sbs.com.au/news/article/2014/05/14/budget-winners-and-losers

Winners

16/03/2014

If you're looking for professional accounting services, do not hesitate to contact us at Freelance Accountants2u. We offer a no obligation initial consultation. For more info contact us at: http://freelanceaccountants2u.weebly.com/contact-us.html

Contact us today for a free consultation

03/07/2013

Thanks everyone for your support!

01/07/2013

The Advantages of Hiring Freelance Accounting Firms in Accounting

For any business house or company, big, medium or small, accounting services are of utmost importance. The profit structure of a company is not only dependent on higher sale of its products and services but it also necessary to have a proper financial structure, which includes efficient accounting services. However, the fact that remains unknown is that even if you own a small company that does not have an accounting department, you can avail these services externally. Freelancing seems to be the trend of the moment and freelance accountants can be hired easily for the purpose of effective accounting.

Availing freelance accounting has a number of advantages and benefits. It has gained immense popularity in recent times and many companies have already started hiring freelance accounts. The various benefits and advantages have been enlisted below:

The most striking and obvious advantage of hiring freelance accountants for the purpose of accounting is that it is extremely cheap and economical. The quality of work done by these accountants is all the same as done by accounting firms. The saved amount can be utilized in forms of expenditure.

It is unfair to believe that freelance accountants are inexperienced and not competent enough to carry on the work efficiently. But on the contrary, they have a lot of experience as they work with more number of employers and varying businesses.

A major advantage of getting your accounting done by freelancers is that, they work with limited number of clients and can always attend you personally. They can give you individual attention and care which is not possible if you choose to hire an accounting firm.

Moreover, with freelance accounting, you can always contact you accountant on any doubt, query or emergency purposes. One is bereft of such an advantage in case of an accounting firm.

Since, a freelance accountant would spend more time with you; it is more likely that all your ideas would be implemented soon after your recommendation. Things are more likely to happen as per the wishes and requirements of the employer and the accountant has little role to play in it, unlike accounting firms where they have their own methods of working.

Hiring freelance accountants, thus, have more benefits and advantages than going for accounting firms. However, this task of hiring has to be done very cautiously and one must ensure the credibility and reputation of the accountant in order to get effective services.

01/07/2013

The Amazing Benefits to Having A Freelance Accountant For your Business

Picture the scenario. You have a struggling business that is struggling to make ends meet, and the economic climate is threatening to have a decidedly negative impact on your annual turnover. Your first inclination is to hire an accountant to help balance your books, but the cost of this at first glance appears to be prohibitive. This is a decidedly difficult position to find yourself in, and your ultimate decision may be crucial in securing the long term solvency of your business.



Consider Hiring a Freelance Accountant: 3 Considerable Benefits

A compromise may well be to hire a freelance accountant, as these individuals boast all of the necessary industry training but carry none of the long term financial commitment. Consider the following: -

A Flexible Working Solution: Outsourcing has made employing freelancers and independent contractors an increasingly attractive prospect for business owners, while the global recession created a number of accidental entrepreneurs to fill this considerable demand. Hiring a freelance accountant can contribute towards the development of a cost effective flexible workforce, so that you can focus on hiring quality rather than finding an affordable compromise.
Hire Their Services When Required: If you have a season business, or one that has a relatively low turnover, then your need for an accountant may be sporadic. This makes hiring a freelance operative idea, as you can employ them on short term contracts during busy periods, the close of the financial year or to manage an external or internal audit process. This allows you to access all of the financial expertise that your business needs, without forcing you to commit to an inflated annual salary.
Access a Well Travelled and Inspired Mind: A freelance accountant is likely to have worked alongside a number of different sized firms in alternative industries, during which time they will have developed considerable experience and expertise. You may even be able to tap into this as a way of integrating new ideas into your business, whether these focus on cost cutting exercises or the fundamental way in which money is managed throughout the organisation.


The Bottom Line

In an age where outsourcing is common place, it is the ideal time to engage the services of a reputable freelance accountant. This affords your business access to the very best of both worlds, as you can employ a sharp financial mind to work within your firm without committing to a budget busting and rigid annual salary.

01/07/2013

Benefits of Hiring Freelance Accountant

Freelancing is a booming trend these days. Most of the experienced employees have started their own process at home. This technique has become more popular only after the successful stories of many freelancers and the companies who saved their money and time by hiring a freelancer. Small businesses may feel inconvenience in outsourcing their tasks to the third party outsourcing company in another country. They may face communication barriers, culture and any indirect issues of outsourcing even though it creates a nice opportunity to gain more profit and save plenty of time. In such scenario, why don't you appreciate offloading few of your tasks to reliable freelancers who stays near your area? This article gives you the knowledge about the benefit you gain out of hiring a freelancer.

Save your money:

Their charges will be less compared to the amount you are spending on your in house professionals. You no need to spend money on retaining them and any other office resources and maintenance. Hence, you can save all these expenditures. The quality of the work will be the same and some time it will be higher than your in house staffs as the freelancers would have got quite a lot of experience working with various employers.

Get special attention:

Freelancers usually have fewer clients and they will give you high preference and all the time available to resolve if you face any issues. In companies they will not be able to consider you as a special client as they have plenty clients and you will have to abide all the rules. The time difference is both the barrier as well as the advantage in outsourcing to other countries. Sometime you may need to speak to your assistant and you may not be able to get in touch with them due to the time difference. But your freelancer will be available anytime and he can work according to your business hours. They will be able to spend more time on your tasks.

Your Ideas will be executed:

As freelancer can spend more time with you, they will be able to implement all your applicable ideas as soon as you have discussed. They will go with the client vision rather than going on their own. Hence, your ideas will be properly concerned and will be implemented. They could come up with new ideas as well. In many big companies, it is very difficult to identify the knowledge and the talent of junior level employees. It has to cross all the streams and come to the management and then to the client. By the time, the idea itself will be faded away. But freelancer directly can keep in touch with the client and he can come up with new ideas which will be sometimes change your business ideas by providing easy ways to achieve more profit.

Keep you informed:

Freelancer will keep you informed about all the applications they are going to imply and if you have any billing issues also they will be able to provide you reasonable answers immediately as they have only this career and they will be responsible for everything. You do not have to call and hold the line for a long time to get in touch with the billing department for simple clarifications as you face in the big MNCs and the outsourcing companies.

Like wise, we gain more profits hiring a freelancer in many ways. It is a wonderful trend created by the business world.