In Sydney, whether you’re self employed or run a large business with your own employees, preparing accounts and getting ready for the end of the financial year can be a very complicated and time consuming process. In fact simply maintaining your business’s financial data throughout the year can be a chore in and of itself. Rest assured, all businesses in the area are going through the same problem, and many turn to various Sydney accounting services to help manage their accounts.

Although there is tones of software and applications out there that can aid you in managing your accounts, they are only as good as the inputted data, and therefore do not solve any problems that a Sydney accountant could pick out. There is also a learning curve when using software that is time consuming. An accountant is fully trained at using all types of software.

Declaring taxable income and having legitimate detailed records is a legal responsibility with dire consequences if done incorrectly or fraudulently. Ignorance is no excuse. Thankfully there are a number of highly experienced Sydney accounting services that can help your business stay on top of its accounts. Our company leads the pack of tax accountants. Our services are based on hands on experience earned over twenty plus years in the business.

What do Accountants do?

Essentially what the various Sydney accounting services do, is what every business should do with their financial records, but instead of doing the bare minimum to get by each financial year, accountants spend the time to keep every single record in check and have the ability to produce reports and implement several techniques to reduce taxable income. Where individuals may ignore things like deductions because it takes too much time to investigate, accountants will try their best to produce the best efficient and cost effective accounts for their client.

No matter what your situation, researching the numerous Sydney accounting services out there can help you stay on top of your business and thrive, even if the world’s economy is down.

If you’ve got plans for a very comfortable and prosperous retirement, you had better not miss the boat. Act now and you can take full advantage of this once-in-a-lifetime opportunity.

To make it easier for you the ATO has a concept termed “In-specie contributions”. Literally, it means the transfer of like to like. So it doesn’t have to be dollars. You can transfer commercial property or shares.

One example of somebody who is going to take advantage of this small window of opportunity is a medical practitioner who is planning to move his surgery (which he owns) into his superannuation fund. So if you own a shop, warehouse or office, you could likewise drop them into your super. And more good news—you can be the tenant, provided you pay a commercial rent.

Here’s what the ATO says about In-Specie Contributions:

Generally, trustees of Self-Managed Superannuation Funds (SMSFs) are prohibited from acquiring assets from related parties—such as fund members, their family and partners, related companies and trusts. However, there are some exceptions.

Therefore, if you’re a member of a SMSF you should not contribute your own assets or assets of your associates unless the asset is:

• Business real property (used exclusively for the running of a business). For example, a warehouse you conduct your business from
• A listed security (such as shares in companies listed on the stock exchange), or
• An in-house asset. For example, an investment in a related party. The market value of in-house assets cannot exceed 5% of the total market value of assets held by the fund.

A lot of people who are excited about the opportunity to put up to $1 million into their superfund think they would like to put their residential investment property into their super fund, but, unfortunately, this is not allowed.

Just because you can transfer a commercial property into your superannuation fund does not mean that you might not be caught for capital gains. Any transfer between one owner and another creates a capital gains event.

The medical practitioner mentioned before has to have his surgery valued by a licensed valuer to ascertain the market value of the property prior to the transfer. When the property is transferred from himself to his Self Managed Super Fund, it triggers a capital gain. Fortunately for our medical practitioner, he is a sole trader and the capital gain in his name is reduced by the deduction of the contribution to superannuation.

I cannot stress enough the need to check out your particular situation with a taxation expert and financial advisor before rushing to sell off investment properties or to make an in specie transfer. You need to be fully aware of the capital gains implications and whether in your specific situation you can claim a deduction for the contribution of money or property to your super fund. You would not want to sell your property and then face a big tax bill for capital gains while only being able to claim a small deduction for the transfer of the property or money to your super fund.

However, that said, the situation merits your full attention now. If the real possibility of making a tax-smart move of your assets into your super exists, then you owe yourself the benefit of checking it out. It could be one of the most financially lucrative moves you have ever made, because your savings on income tax could go on for years on end.