G&A Editorial Team

You open your accounts at the end of the month and the report says you made a profit. Then you check the bank, and there is barely enough to cover the next bill. If that sounds familiar, you are not doing anything wrong. This is one of the most common small business cash flow problems in Australia, and it catches out business owners in every industry. Profit and cash are two different things, and once you understand the gap, it becomes much easier to manage. Small Business Cash Flow: Why You...

Many business owners treat the company bank account like their own wallet. They pay a personal credit card from it, transfer money for a holiday, or borrow funds for a house deposit. It feels harmless, because it is your company. For tax purposes, though, a company is a separate legal entity. When a private company gives money or benefits to a shareholder (or someone connected to them) without the right paperwork, Division 7A can treat that amount as a dividend. That deemed dividend is...

Many Perth business owners start out as sole traders. It is simple to set up, low cost and light on paperwork. But as a business grows, the sole trader vs company question comes up, because the structure that worked in the early days may no longer suit your tax position or your level of risk. At a Glance Sole Trader Company Family Trust Separate from you? No Yes, a separate legal entity No, a trustee holds assets for beneficiaries Personal liability Rests with you Generally limited, with...