It’s a good time for business owners to review their operating structure, prepare for SuperStream and plan for the next 12 months.
Review operating structure
Speak to your accountant about reviewing the current operating structure for both asset protection and tax minimisation purposes. This is important if your business is expanding, or you are considering a restructure.
For example, in order to access the small business capital gains tax concessions (SBC) upon the sale of a business and potentially pay no tax, the taxpayer needs to hold at least a 20% direct or indirect interest in the business.
Where the business assets (e.g. business premises) are held by a separate individual/entity and leased to the business, that individual/entity needs to be a “connected entity” and/or an “affiliate” before the SBC’s can be accessed on sale of the building.
Some restructuring of the business and any connected entities may be required to ensure that the SBC can be claimed in the future.
Prepare for SuperStream
The start date depends on the number of employees (including permanents, casuals and part–timers) that the business has on 1 July 2014.
For businesses with 20 or more employees on 1 July 2014 (deemed to be medium to large employers), contributions will need to be made using the new standard by 31 October 2015. However businesses with 19 or fewer employees on 1 July 2014 (deemed to be small employers) have until 1 July 2016 to comply. Select a product and MYOB will give you a tailored SuperStream solution.
Plan for the next 12 months
Below I’ve listed a few strategies that you can undertake to minimise risk and improve your business performance over the next 12 months:
- Preparing/updating the business plan to provide some forward direction for the business. Part of your business plan should be to include succession and exit strategies. Even if you intend on being in the business for many years to come, you should still look at ways in which to maximise your business’ value, minimise its risk and reduce its dependency on the owners.
- Ensure that you have signed employment contracts with all staff (including working directors) and that these are updated on a regular basis.
- Review your existing bookkeeping process, and if you don’t have online accounting software, MYOB has a solution for every stage of your business.
- Update profit & loss and cash flow budgets for the next 12 months and compare actual to budget. Arrange credit facilities where cash shortages are forecast.
- Review financing arrangements and don’t be afraid to shop around for a better deal.
- Review insurances to ensure there is an adequate level of coverage. Premiums can be reduced by purchasing an all in one business pack.
- Reduce costs in areas identified as excessive in the current year.
- Implement new internal control systems to address weaknesses identified.
For more business building tips, visit myob.com.au/businesstips.