Click here to view the 2018 Grant & Brady Newsletter (opens as PDF).
If you are a small business owner who dreads taking care of your bookkeeping, we would encourage you to check out Banklink.
We have been using Banklink software in our practice for more than fifteen years and highly recommend it to all of our clients. Clients who use Banklink cannot believe how easy it is compared to other accounting solutions. Banklink allows easy tracking of GST, regular transactions can be memorised and you will be surprised how much time you save. Best of all, there is minimal cost.
Banklink have an online demo available to watch here:
Banklink allows business owners to spend less time on their books, and more time on their business.
When a small business purchases depreciable business assets that cost less than $20,000 they can claim this as an immediate tax deduction.
There are some restrictions, however many assets you buy to own (new or second hand) will qualify for outright tax deductions on your business tax return. For example, a $10,000 photocopier, a $17,000 car or a $2,000 computer. Of course, you will only claim the portion of the cost that relates to business usage. Note that the cost is net of GST, if you are registered for GST. In other words, an asset with a value of less than $20,000 after the GST has been deducted would be eligible for the immediate deduction if you are registered for GST. If you are not registered for GST, the asset would need to cost less than $20,000 (including GST) for it to be eligible.
Plant & equipment items that cost more than $20,000 will be added to your depreciation pool which allows you to claim 15% of the cost in in the first year of ownership, then 30% in the years following.
If you have any doubt as to what you can and cannot claim against your business income, please contact us to clarify.