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The 2015-16 Federal Budget

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Small businesses received some key changes from the 2015/16 Federal Budget to deliver lower taxes and hopefully cultivate growth.  The following are some of those key changes to small businesses with an aggregated turnover of less than $2 million:

TAX CUTS FOR SMALL BUSINESS

The following tax cuts will be available to small businesses in the 2015/16 year:
  • 1.5% Tax Rate Cut for Small Companies: Company tax rates will be reduced from 30% to 28.5% for small companies. Companies over $2 million will be subject to the current 30% rate. The current maximum franking credit rate will remain unchanged at 30% for all companies.
  • 5% Discount on Tax Payable by Small Unincorporated Entities: Individual taxpayers with business income from a small unincorporated business entity (such as trusts or partnerships) that has an aggregated annual turnover of less that $2 million will be eligible for the small business tax discount.  This discount will be capped at $1,000 per individual for each income year, and delivered as a tax offset.

ACCELERATED DEPRECIATION FOR SMALL BUSINESS

Small businesses that purchase and install assets from 12 May 2015 that are under $20,000 will be able to claim an immediate deduction for that asset.  This accelerated depreciation will be available up until 30 June 2017.

In addition the current ‘lock out’ laws have also been suspended for the simplified depreciation rules until 30 June 2017.

Where assets purchased are $20,000 or more they will be depreciated at 15% the first year and then 30% each income year after that.

IMMEDIATE DEDUCTION FOR PROFESSIONAL EXPENSES

Businesses will now be allowed to claim an immediate deduction for a range of professional expenses to start a new business.

CGT ROLL-OVER RELIEF FOR RESTRUCTURING

Small businesses will now be able to change legal structure and not attract CGT on the transition.  This will begin in the 2016/17 year.

FBT CHANGED FOR WORK-RELATED DEVICES

A FBT exemption will be allowed from 1 April 2016 for small businesses with an aggregated annual turnover of less than $2 million that provide employees with more than one qualifying work-related portable electronic device.

Make the Change to Xero

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With 30 June on the horizon the end of this financial year is fast approaching. If you have been struggling with old accounting software or Excel worksheets why not try eliminating these struggles before the new financial year? Why not change? Xero is beautiful online accounting software that is both easy and affordable to use, so much so that thousands of small businesses have made the transition. Utilising the power of the cloud Xero holds many advantages over other accounting software.

The cloud is, in basic terms, the delivery of computing as a service rather than a product over the internet. The software and data are hosted by a provider on their servers off site which we can access via the internet through a web browser. We already utilise the cloud checking emails, online banking, social media applications and many more. However, the cloud has consumed the way we live because of the power of mobile devices such as smart phones and tablets, the ability to access information anywhere and at anytime. For more information directly relating to the cloud please refer to our previous blogs.

Traditional desktop software carries a multitude of problems and with it brings unnecessary stresses:
• Data and system isn’t up-to-date
• Only works on one computer and data bounces from place to place
• Only one person has user access
• It’s costly and complicated to keep back ups
• It’s expensive, difficult and time-consuming to upgrade software
• Customer support is expensive and slowThe benefits of Xero speak for themselves:
• Cloud security is world class (same security as online banking)
• Clear overview of current financial position, in real-time
• Multi-user access makes it easy to collaborate online with your team and advisors
• Worry-free maintenance
• Everything is run online, so nothing to install and everything automatically backed up
• Upfront business costs are reduced – version upgrades, maintenance, system administration costs and server failures are no longer issues
Many of our clients have made the move and loving it.  So if you want to avoid the software induced stress of the next financial year now is the time to change. If you have any queries in reference to changing to Xero please do not hesitate to contact us, as we will be more than willing to help you change over.

New Penalties for Self-Managed Super Funds

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The 1st of July 2014 will mark the commencement of a new regime of penalties for Self-Managed Super Funds (SMSFs). The information below aims to provide clarity for you in the organisation of your SMSF, so that you can be prepared for the future.

The new law initiates administrative directions and penalties for contravention in reference to SMSFs including:

  • Rectification directions
  • Education directions
  • Administrative penalties

The ATO has the ability to issue not just one, but two or more, of the above options and can issue a notice of non-compliance if SMSFs do not act in accordance with directives.

Funds that no longer meet the requirements of an SMSF may still be subject to directions and/or penalties, regardless to the fact that the new penalty regime applies only to SMSFs.

This new law voids any condition in the SMSF’s Trust Deed/Governing Rules that would have the effect of excusing a trustee of the SMSF from or indemnifying a trustee/director against:

  • Liability for the cost of undertaking a course of education in compliance with an education directive.
  • Liability for an administrative penalty imposed by the new administrative penalty regime.

The new SMSF Penalty Regime does not replace the current powers that the ATO has to take action against trustee(s), but provides an alternative. Providing a middle ground of the current option, for the ATO when dealing with a fund that contravened SIS, is one of the main reasons for the introduction of SMSF Penalty Regime.

ATO has developed a range of options to deal with breaches of the superannuation law, including:

  • Giving a fund a notice of non-compliance to make the fund a non-complying superannuation fund
  • Accept an undertaking from the trustee to rectify the contravention
  • Disqualifying individual trustees and prohibiting them from acting as a trustee of a superannuation fund or as a responsible officer of a corporate trustee of a superannuation fund
  • Suspend or remove the trustee
  • Freeze the assets of the fund if there is a risk of the member’s benefits being eroded
  • Seek civil and/or criminal penalties through courts

The ATO will continue to have these options available for SMSFs that contravene SIS, however, the new SMSF Penalty Regime will provide a more efficient way for the ATO to deal with SMSFs that have SIS breaches.

Credit to ‘New Penalty Regime for SMSFs’ by Mark Ellem of SuperMate.

The 2014-15 Federal Budget

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With the release of the government’s budget we have reviewed the Thomson Reuters Tax News detailed analysis and from that summarised some key points.
PERSONAL TAXATION
FBT Rate Increase
FBT rate will increase from 47% to 49% from 1st April 2015 to 31 March 2017 to prevent high income earners from utilising fringe benefits to avoid the levy.
Personal Tax Rates
The legislated tax-free threshold of $18,201 will increase to $19,401 from 1st July 2015 to 30th June 2017. If including Medicare Levy the top marginal rate would be 49% from 1st July 2015 to 30th June 2017. There was, however, strong opposition from the Greens and labour making it highly unlikely to pass through parliament by 30th June 2014. The Low Income Tax Offset of July 1st 2015 is $300.
Medicare Levy
The Medicare Levy will increase from 1.5% to 2% as of 1st July 2014. As of income year 2013-14 the Medicare Levy for low-income families will increase to $34,367 and each dependent child or student will also be increased to $3156. Private health insurance income thresholds will be frozen for 3 years, form 1st July 2015.

Family Tax Benefits Part B
FTB-B primary earner income limit will be reduced from $150,000p.a to $100,000p.a as of 1st July 2015. FTB-B will be limited to families whose youngest child is under the age of 6 at 1st July 2015. As a part of transition arrangements, families with a child 6 years or over, on 30th June 2015, will remain eligible for FTB-B for 2 years.

Dependant Offsets
Nearly all dependant tax offsets, including the dependent spouse tax offset, will be abolished for all tax payers at 1st July 2014.

Mature Age Worker Offset
The Mature Aged Worker Offset will be abolished 1st July 2014 and will be replaced with an expanded senior employment incentive payment called ‘Restart’. As of July 1st 2014 a payment of up to $10,000 will be available for employers who hire mature aged job seekers, 50 and over, who have been receiving income support for at least 6 months.

SME Instant Asset Write-Off
Due to mining tax not being repealed there is confusion as to whether the $6,500 write-off still stands, and that’s despite the Government’s intention to scale it back to $1,000 as of January 1st 2014. We are still awaiting clarification on this matter from the government but if it doesn’t come soon it may be too late to take advantage of this generous write-off.

SUPERANNUATION

Option to Withdraw Excess Contributions
Excess contributions and associated earnings will be allowed to be drawn for any excess non-concessional contributions made after 1st July 2013. If individuals choose this option, no excess contributions tax will be payable and any related earnings will be taxed at the individual’s marginal tax rate. If, however, the excess non-concessional contributions are left in their superannuation fund they will continue to be taxed on these at top marginal tax rate.

Non-concessional contributions in excess of a person’s cap are currently taxed 46.5% (47% as of 1st July 2014): s5 Superannuation (Excess Non-Concessional Contributions Tax) Act 2007. The liability for this tax is currently levied on the individual who must5 withdraw an amount form their superannuation fund equal to the tax liability by providing the release authority to their superannuation provider within 21 days.

Superannuation Guarantee Rate
Instead of pausing Superannuation Guarantee Rates the Government will be increasing it to 9.5% on 1st July 2014 and leave it at this level until 30 June 2017.

Military Superannuation
The new arrangements will allow Australian Defence Force (ADF) members to choose which super fund they belong to and give those members the ability to transfer their accumulated benefits to a new fund if they leave the ADF. There will be no change to superannuation arrangements for Military Super Benefits Scheme’s members, but they may elect to be covered by the new arrangements.

WELFARE AND PENSION MEASURES

Age Pension to Increase to 70 by 2035
From 1st July, 20205, the Age Pension qualifying age will increase by 6 months every 2 years, from 67 years, to gradually reach a qualifying age of 70 years by July 1st 2035. There is much opposition from The Greens and Clive Palmer surrounding the increase in qualifying age making it ‘tricky’ to negotiate the measure through the senate.

Participation Incentives for Job Seekers Under 30
From 1st January 2015, all new claims of Newstart Allowance and Youth Allowance (other) who are under 30 years of age must demonstrate appropriate job search and participation in employment services support for 6 months before receiving payments. Existing recipients under the age of 30 will also become subject to these new arrangements as of 1st July 2015.

OTHER MEASURES

Fuel Excise to Rise
Starting August 1st 2014 biannual indexation by the CPI of excise and excise equivalent customs duty for all fuels, except aviation fuels, will be re-introduced.

HECS and HELP Measures
Income threshold for repayment of Higher Education Loan Programme (HELP) debts commencing 2016-17 will be reduced and will just indexation for HELP debts from 1 June 16. HELP debts will be adjusted from the Consumer Price Index to a rate equivalent to the yields on 10 year bonds issued by the Australian Government , capped at 6%, starting June 1st 2016.

SUMMARY
The Government’s argument for drastic cost cutting policies is to tighten the countries excessive spending but in doing so it has caused derision from the general public, numerous lobby groups and even State Governments. The Government may argue that this is the massive medicinal budget the nation needs to fix the ailing economy but it is going to have a hard time making everyone swallow that pill.

How much of the above razor budget changes will see the light of day will depend on the Government getting its budget passed through the senate. However with the current composition in the senate the Government will no doubt be engaged in some long drawn out negotiations with numerous stakeholders to get what they want.
With the budget presented we all now know what the Government wants to achieve and how they plan to do it but for now we just have to wait for the senate to determine how big this budget pill will be for us to swallow.

Rundown: Capitalising on the Cloud

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Recently I attended a seminar held by Proactive Accountants Network entitled ‘Capitalising on the Cloud’. The seminar had five aims:
1. Dispel the myths – what cloud is and why you need to embrace it
2. If you’re new to cloud – get you started and ‘un-confuse’ you
3. If you’re ‘into’ it – take you to the next level
4. Challenge, disturb and inspire you!
5. Introduce you to tools, systems, process and support to help you implement and capitalise.

The seminar reaffirmed our views on the cloud but also challenged us on ways to utilise it. Technology is pushing new boundaries for the local accountant. Traditionally our industry has relied on physical records, heavy data, and physical technology within the office, however, the cloud has introduced the use of light data allowing us to become global accountants. To prove how much technology will affect the way the world and business will interact the video below was shown at the seminar to highlight a project developed by IBM called ‘Watson’, a super computer that can think like a human.

As you can see the rapid development of technology will affect the way we all do business, there are powerful cloud tools that are readily available for us to harness.

But is your data safe in the cloud? The answer is yes! The cloud has very high data security levels, the same as those used by your bank. If you trust internet banking you can trust the cloud.

We use the cloud everyday checking emails, online banking, Facebook, Twitter, Instagram and the list goes on and on. The cloud is innovative, safe and effective. It has proven that utilising the strengths of the cloud has the potential to help grow and develop your business locally and if necessary globally. The safety procedures and systems implemented in the cloud are just another reassurance that it is the future of accounting and business in general. The digital business revolution of the cloud is already here, when will you capitalise on the cloud?

By utilising cloud services in our firm it has greatly improved the systems and procedures in our office. If you are looking to move your business to the cloud and start using cloud based software such as Xero, do not hesitate to contact us to help you get there.

End of Financial Year Checklist 2013

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Some tax strategies to consider before 30th of June 2013

With June 30, 2013 fast approaching here are some tax strategies for you to review and consider for yourself and your business:

  • Pay Compulsory Super – pay your superannuation guarantee contributions for the June quarter before June 30, 2013; these payments are tax deductible in the financial year that they are paid.
  • Delay Issuing Invoices – consider delaying issuing invoices for work that are close to June 30 and issue them in July, thereby deferring the tax until the next financial year (2013/14).
  • Small Business Instant Write-Off Of Asset Purchases –  from July 1, 2012 if you are an eligible small business you will be able to obtain an instant write-off for equipment purchased to $6,500 (GST exclusive). So if you have any equipment purchases you are planning under $6,500 next financial year, you may want to consider bringing those purchases forward before June 30, 2013.
  • Accelerated Deduction for Motor Vehicles – from July 1, 2012 if you are an eligible small business you will be able to obtain an accelerated deduction for the purchase of that motor vehicle, whether it be brand new or second hand.  If the vehicle costs less that $6,500 it can be written off completely. If it was greater than $6,500 then the deduction is $5,000 plus 15% of the remaining amount.
  • Delay Capital Gains Tax – if you sell investment shares or rental properties, remember that for Capital Gains Tax (CGT) purposes the tax is based on the contract date and not the settlement date. Bare in mind that any investment assets sold and ownership was greater than 12 months they may be eligible for the 50% discount tax incentive.
  • Stock Take Preparation – know what your stock take obligations are so you have time to prepare for and carry one out.
  • Bad Debts – must be written off in your accounts before June 30, 2013
  • Declare Any Bonuses or Director’s Fees Before June 30 – you are not required to pay these by June 30,  but the company must be committed to the payment via a director’s resolution in order for these to be deductible.
  • Prepaid Expenses – eligible small businesses can claim expenses prepaid up to 12 months in advance but is generally limited to expenses below $1,000.
  • Net Medical Expenses Tax Offset – if possible, when there are considerable out of pocket medical expenses paid during the financial year, group them together to the higher income earner to try and satisfy the annual threshold for the net medical expenses tax offset.
  • Donations – if you make donations to deductible gift recipients and a tax deduction can be claimed, group those deductions to the higher income earner.
  • Trustee resolutions – the ATO requires that all trustees who make beneficiaries entitled to income by way of a resolution must do so by the end of an income year, June 30, 2013. This resolution will determine who is to be assessed on the trust’s taxable income.  This needs to be done June 30, 2013 and cannot be done retrospectively.
  • Are Your Books Up To Date? – if not, use this time to get them in order so that your reconciliations are ready for your end of financial year requirements. There are great accounting software both traditional desktop and online versions now readily available and user friendly (including reliable bookkeeping services) that can ensure that this process is as stress free for you and your accountants.
  • Business Structures – as tax considerations extend well beyond merely compliance obligations, you should take the time to ensure that your tax affairs are structured in the manner that best suits your needs. The right tax structure will provide the solid foundation on which you can build the rest of your business; and access those certain tax incentives when needed. The structure in which your business is set up will depend significantly on your needs. Each possible structure offers its own advantages and disadvantages. If you think the structure in which you currently run your business may not be the best structure for you, the New Year is a good time to discuss alternative structures with your tax advisor.
  • Take Time To Reflect – it is important to review and reflect on your end of financial year results, even if you’re happy with your results. Did your business achieve what you set out to achieve during the last 12 months? If not, where can your business improve?
All of the above matters are important but if your books aren’t kept up to date it can be difficult to determine your true financial position and consequently struggle to determine and execute the applicable tax strategies before year end.  One way we believe that you can stay on top of your bookkeeping for your business is by using Xero. Xero is the world’s leading online accounting system that is able to deliver real time information about your business at any time and anywhere.
The way it does this is that Xero is in the clouds and is accessible via any internet browser on your laptop, tablet or smart phone; and its accessibility and ease of use makes it simple to keep your data up to date. Through daily automatic bank feeds it enables you to process bank statement items on a daily basis, giving you a day-to-day live view of your business’ financial position. Xero’s interface is both beautiful and super user friendly, and surprisingly it makes bookkeeping fun. Xero will also save your valuable time so that you can spend less time on administration and more time on important aspects of your business and your life.
If you are looking for someone to provide you advice and systems to help your business stay on top of your tax issues and help your business grow then look no further, switch to Rush & Associates today!
CONTACT US TODAY on 07 3839 8869 or email mail@rushassoc.com.au to speak to one of our staff members.

How Technology affects our lives and our business

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Like it or not, technology is a big part of all our lives and is growing exponentially.  In our everyday lives it is just part of how we live and we don’t really get a choice in how it affects us – most of us just get washed along with the tide of change.  If you don’t agree with this then consider:

• When was the last time you used the yellow pages (yes I mean that big yellow stack of paper, not the website)?
• Have you ever sent or received a text message?
• Check out this Youtube clip

However, on a business front, we do have some choice in how rapidly we adopt technology. We can resist and deal with the consequences just like Borders Books and the growing list of other casualties, OR we can embrace technology and use it to our advantage.

As an example, when I started in the accounting industry we did use computers (I am not that old), but we also had stacks of these huge paper files for each and every client. The storage room for this mass of paperwork was a very real issue. We no longer have paper files – it is all electronic. The multiple folders on my desk have been replaced by multiple screens:

Further back in our blog you will see us talking about XERO which is probably the single biggest revolution in accounting that I have seen in my career, but it is not the only technological change upon us and tomorrow there will more than likely be something else new.

Keeping at the forefront of technological change is not always easy, but it does leverage us to be able to complete the same work more efficiently, more accurately and in new ways or locations.

We would love to talk to you about how your business can utilise technology to become more efficient, save money, reach more customers in new ways, sell more goods or services at better margins and make more money. If this is of no interest to you then please do not contact us, there are plenty of other businesses who will.

AUTHOR: Patrick Rush

End of Financial Year Checklist 2012

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Are you and your business ready for June 30?

With June 30, 2012 just around the corner this is the best time to take stock of your tax affairs and engage in proactive tax planning for yourself and your business. It’s also the best time to review your current year goals and start setting next year’s goals. The trouble most people are facing is knowing where to start. So, what should you be considering in preparation for the EOFY?

  • Pay Compulsory Super – pay your superannuation guarantee contributions before 30 June 2012; these payments are tax deductible in the financial year that they are paid.
  • Pay Bills – ask your accountant what expenses are worthwhile paying before 30 June as certain expenses can also be tax deductible in the year in which they are incurred.
  • Delay Issuing Invoices – consider delaying issuing invoices for work that are close to June 30 and issue them in July, thereby deferring the tax until the next financial year (2012/13).
  • Small Business Instant Write-Off Of Asset Purchases –  review your asset register and determin what items needed to be repalced, including obsolete or damaged equipment. If you are an eligible small business you will be able to obtain an instate write-off for equipment purchsed for up to $1,000 (GST exclusive). However, after July 1, 2012 the immediate write-off threshold increases to $6,500 (GST exclusive), so if you have any equipment purchases over $1,000 but under $6,500 this month you may want to consider holding it off until next month.
  • Delay Capital Gains Tax – if you sell investment shares or rental properties, remember that for Capital Gains Tax (CGT) purposes the tax is based on the contract date and not the settlement date. Bear in mind that any investment assets sold and ownership was greater than 12 months they may be eligible for the 50% discount tax incentive.
  • Stock Take Preparation – know what your stock take obligations are so you have time to prepare for and carry one out.
  • Declare Any Bonuses or Director’s Fees Before June 30 – you are not required to pay these by June 30,  but the company must be committed to the payment via a director’s resolution in order for these to be deductible.
  • Are Your Books Up To Date? – if not, use this time to get them in order so that your reconciliation are ready for your end of financial year requirements. There are great accounting software both traditional desktop and online versions now readily available and user friendly (including reliable bookkeeping services) that can ensure that this process is as stress free for you and your accountants.
  • Business Structures – as tax considerations extend well beyond merely compliance obligations, you should take the time to ensure that your tax affairs are structured in the manner that best suits your needs. The right tax structure will provide the solid foundation on which you can build the rest of your business; and access those certain tax incentives when needed. The structure in which your business is set up will depend significantly on your needs. Each possible structure offers its own advantages and disadvantages. If you think the structure in which you currently run your business may not be the best structure for you, the new New Year is a good time to discuss alternative structures with your tax advisor.
  • Take Time To Reflect – it is important to review and reflect on your end of financial year results, even if you’re happy with your results. Did your business achieve what you set out to achieve during the last 12 months? If not, where can your business improve?
As they say it’s all in the preparation! You don’t want to be drowning in paperwork. Many businesses wait until tax time to start thinking about their obligations. This usually leaves time for little more than a short review and completion of tax returns. However, thinking about your tax obligations now will give you the opportunity to consult with your tax adviser and engage in proactive tax planning on a wide range of issues and see the overall health and picture of your business and/or personal tax affairs.
One way we believe that you can stay on top of your paperwork and your business is by using Xero. Xero is the world’s leading online accounting system that is able to deliver real time information about your business at any time and anywhere. The way it does this is that Xero is in the clouds and is accessible via any internet browser on your laptop, tablet or smart phone; and it keeps your data up to date through daily automatic bank feeds enabling you to process bank statement items on a daily basis, giving you a live view of your business’ financial position. Xero’s interface is both beautiful and super user friendly, it makes bookkeeping fun; surprisingly. Xero will save your valuable time so that you can spend less time on administration and more time on important aspects of your business and your life.
If you are looking for someone to provide you advice and systems to help your business stay on top of your tax issues and help your business grow then look no further; switch to Rush & Associates today!
CONTACT US TODAY on 07 3839 8869 or email mail@rushassoc.com.au to speak to one of our staff members.

Building & Construction Industry: New Reporting Requirements

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As of July 1, 2012, businesses in the building and construction industry will now be required to report to the Australian Taxation Office with details of payments made to contractors for building and construction services. This will be in the form of submitting at the end of each financial year a Taxable Payments Annual Report. The changes recently introduced were a result of the 2012/13 Federal Budget announcement to improve compliance with tax obligations within the building and construction industry.
These new measures will apply to businesses who meet all of the following:
  • your business is primarily  in the building and construction industry;
  • your business makes payments to contractors for building and construction services; and
  • your business has an Australian Business Number (ABN)
Is your business primarily in the building and construction industry? Only if any of the following apply:
  • in the current financial year, 50% or more of your business activity relates to building and construction services; or
  • in the current financial year, 50% or more of your business income is derived from providing building and construction services; or
  • in the financial year immediately before the current financial year, 50% or more of your business income was derived from providing building and construction services
The Taxable Payment Annual Report will be due on July 21 of each year; therefore the first report is due by July 21, 2013 for the 2012/13 financial year.
WHAT NEEDS TO BE REPORTED?
These are payments made to contractors for building and construction services performing on, or in relation to, any part of a building, structure, works, or surface (e.g. alterations, improvements, installations etc.). For each contractor hired, you will need to report the following details, as of July 1, 2012:
  • the contractor’s ABN
  • name
  • address
  • gross amount you paid for the entire financial year (this is the total paid including GST)
  • total GST included in the gross amount paid
WHAT DOES NOT NEED TO BE REPORTED?
Payments for materials only, such as building supplies, are not included in this annual report. You are also not required to pay any unpaid invoices as at June 30 each year. For example: if you receive an invoice from a contractor for services performed before June 30, 2013 but you do not pay that invoice until after July 1, 2013 you will report the payment in the 2013/14 financial year.
WHAT NOW?
If your business in primarily in the building and construction industry then these new reporting obligations will affect your business. The trick is how well your records are kept throughout the year. The best place to start is to check the way you keep your records. If you use an accounting software (such as MYOB or Xero) check that it has the capabilities to record the above details required, in particularly the contractor’s ABN. For MYOB and Xero users you may want to start (if not already) utilising the accounts payables function in the software, as this enables you to:
  • record the necessary details (contractor’s name, address and ABN) in the Supplier Card or Contact Database,
  • keep a record of all invoices issued from this contractor, and
  • keep a record of the date the invoices were paid
If you don’t use accounting software, but instead use excel to keep a track of your records, ensure that the necessary details are recorded throughout the year. The ATO have created an example worksheet of what you could use to keep a track of the invoice details. However method you choose to use you’ll need to start implementing those changes soon so that when July 1, 2012 comes around your business is ready. All seems too hard and stressful? Well, the good news is that we, at Rush & Associates, can assist you and your business in providing you with the right tools, strategies and support to ensure that these annual reports are prepared without any problems.
CONTACT US TODAY on 07 3839 8869 or email mail@rushassoc.com.au to get your business ready by July 1, 2012!
*For a list of occupations and work activities that qualify as building and construction services click here. For examples of what is considered to be buildings, structures, works, surfaces, and sub-surfaces click here.

“What is the Cloud?” Recap

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Last Friday we held our first information session on the topic of “What is the Cloud?“. We had a small but enthusiastic group of clients and non-clients attend; which was exactly what we were after; a relaxed atmosphere conducive to some good quality discussion.

Our information session covered the following topics:

A basic run down of the cloud and how it works:
Being accountants and not IT professors we first had to lay down a very basic foundation of what the cloud was, which was essentially the delivery of computing as a service, rather than a product over the internet. Although there are numerous arguments on what the real definition of “cloud” is, we kept a simple view on it; in that it is much like a utility such as electricity. We can, through the cloud, subscribe to SaaS (Software as a Service) based on a monthly subscription.

The software and data are hosted by a provider on their servers off site which we can access via the internet through a web browser. From a business perspective the external hosting of software is brilliantly convenient as utilising the cloud allows the provider to take care of all the hardware and software maintenance issues. So as a business owner who is more concerned on using their own time on constructive business issues, you can now say goodbye to wasting time and money on expensive software, annoying periodic software upgrades, expensive servers and licensing issues, as well as the countless hours and money with your IT people to make it all work seamlessly.

Clearing misconceptions of the cloud:
There are many who hold fears on what the cloud offers and are hesitant to making that leap into the cloud. The funny thing is that most of us have already made that leap to the cloud without even realising it. For instance one of the first mainstream applications of cloud based technology occurred 10 years ago through internet banking. It was initially treated with about as much apprehension as swimming with great white sharks, it seemed way too dangerous. However, 10 years later most of us can’t live without internet banking to the point that even our IT-phobic grandparents use it.

Xero, the world leading accounting system:
After establishing the solid foundation and future of Xero, through its investors and worldwide set-up, we were quick to point out how Xero’s concept of a “single ledger” is an embodiment of all the cool things that the cloud offers. The single ledger concept provides a great platform for business owners and accountants to develop a more proactive and meaningful business relationship.

It never ceases to amaze me that every time I demo Xero it wows our clients, and this event was no exception with everyone who attended our session agreeing that Xero is not only beautifully simple but it was also efficiently smart. They were astonished at the differences between the archaic software they were tied to and the time saving methods of Xero; it was a real what the… moment for some attendees. So much so that they were excitedly making the following comments:

  • I don’t need to send my file to my accountant?
  • I don’t have to roll over at year end?
  • I don’t have to spend hours processing my bank statements and then do a manual bank reconciliation after it?
  • I don’t need to do my invoices in word?

And my response was yes, yes, yes and yes.

Cloud enables interaction between applications:
We then touched upon the ability to pick and choose cloud applications that would seamlessly communicate with each other. This is perfect for start-ups or any business that need a number of software solutions for day to day running. Xero has software partners that can integrate their software with Xero; as an example Xero can collect accounting data as well as update contact lists from other cloud software.

We then showed some case studies which showed the cloud in action within the business; in real life terms. We had included the very slick Taylor Stitch case study which perfectly illustrated how the cloud solved some key aspects of their business through the use of Vend HQ for POS (Point of Sales) and inventory, Xero for accounting, and Shopify for their online retail shop.

And that was that, over some drinks and food we were able to have some great discussion with business owners on “What is the Cloud?“. We believe the session helped to open their eyes on what is out there in the clouds, to think outside the box, and more importantly see many benefits the cloud could bring to their business.

A big thank you to those who attended, we really appreciate the support, your comments and feedback. We look forward to seeing you all again at our next event in the near future.