A lesson for us all

The "general permission" under the Income Tax Act broadly allows expenditure to be deductible if it is:

  • incurred in deriving assessable income, or
  • incurred in the course of carrying on a business for the purpose of deriving assessable income.

 

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Is it time to review your finance function?

To be successful, a business needs to strive for profitability and growth. An important element of this is the need to regularly review internal processes and functions. The finance function should be included in that process.

 

The finance function of any business needs to encapsulate the right tools, systems and processes to provide management with relevant, timely and accurate information to enable effective decision making.

 

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When your home is in a trust

It’s common to allow a family to live in their home owned by a family trust, on the basis the family pays all expenses.

 

If this agreement isn't documented, the payments made by the family could be treated as either rent paid for the use of the house, gifts to the trust or loans to the trust.  Remove the uncertainty by making sure there is proper documentation. One way of doing this is to get the trustees to record an appropriate minute in a meeting.

 

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Plan to make business bigger, better

“Planning is critical.”       – From Colyn Devereux-K Fragrance Holdings

 

Accountants talk of budgeting. This is putting dollar amounts to a business plan. What is a business plan? It’s anything you like! Why do we urge you to plan? Because you’ll get better profits if your plan is a success.

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