Eustice & Co

Looking to Start or Grow Your Business?

Are you a small business owner looking for an innovative accounting and business advisory firm that can help you grow your business, your profits and your wealth?

Here at Eustice & Co we do more than just ‘keep the financial score’ for our clients. While we are very skilled at preparing financial statements, tax returns and cash flow budgets, it is our services beyond compliance that distinguish us from other suburban accounting firms. For example, we believe your marketing could be the difference between gloom and boom which is why we help our clients with their branding, website, videos and social media strategies.

Our mission is to help you slash the time and cost associated with bookkeeping and tax compliance. We support a range of different accounting software programs and are strong advocates for cloud accounting solutions like Xero. Where required we will train you or your staff to use the program that best matches your business needs with your level of accounting skill so together we have more time to work ON your business and your marketing.

Over the past 20 years we have developed a number of niche industries including dry cleaners, the building trades, concreters, pharmacists and the fitness industry. We also service a number of medical specialists and surgeons, car wash operators, cleaners, cafes and coffee shops. We genuinely believe that having an accountant who understands your industry can give you a serous competitive edge and having mentored hundreds of business owners through the start-up maze we have also earned a reputation as business start-up specialists. The majority of our clients are family owned businesses who are at different stages of the business life cycle, from start-up right through to the sale and succession phase.

With offices located in both Mentone and Mornington we are passionate about helping you build your business and grow your wealth using tax effective strategies including self-managed superannuation and negative gearing. Our clients keep telling us that we offer exceptional value for money and our cost effective business advisory services are designed to help you unlock the profit potential in your business.

Negative Gearing & Property

By definition, negative gearing is where you borrow funds to acquire an income producing asset and the interest and other tax deductible costs you incur exceed the income you receive from the investment. Negative Gearing isn’t suitable for all investors and the tax benefits should not be the only reason for the property purchase. Although it can lower your tax liability, the tax implications will depend on your personal situation and the type of investment you choose. As the phrase implies, negative gearing means a negative cashflow that you need to fund from other income sources.

Creating wealth through purchasing an investment property is a well established practice in this country, however, negative gearing can also apply to other types of income producing investments such as shares and managed funds. The attraction of borrowing or ‘gearing’ is that you can invest in shares or property that might otherwise have been unaffordable. For individuals, the loss can also be offset against other assessable income and the tax benefit will depend on your marginal tax rate.

The real benefits of negative gearing are only realised when you combine the correct tax and financial advice with a property in the right location funded by the most suitable loan product. You should always seek expert professional advice to make sure the purchase is within your budget and will provide long term taxation and financial benefits.

Self Managed Super Funds

In recent years there has been an explosion in the number of Self Managed Superannuation Funds (SMSF) in this country. With more than $600 billion under management, SMSFs are now the largest and fastest growing segment of Australia’s $1.7 trillion superannuation industry. In fact, that figure has tripled in the last five years and as at September, 2013 there are about 517,000 SMSFs funds in Australia. That means there are over one million SMSF trustees in Australia which represents one in twenty four Australians. While SMSFs make up just 4 per cent of the total number of super funds, it controls 32 per cent of all investment funds in the superannuation system.
What is a SMSF?
A self managed superannuation fund is a do-it-yourself superannuation fund with between one and four members. Each member of the fund also acts as a trustee of the fund so all members must be the trustees, and all trustees must be the members. It is possible to have a ‘single member fund’ that requires two individual trustees or a corporate trustee.

Your SMSF must have its own bank account and a trust deed. The deed is basically the rules of operation and sets out who can be a member, how they’re admitted as a member, what the fund can invest in and who can receive a death benefit. Your own SMSF requires an annual audit plus they need to lodge a tax return with the Australian Taxation Office (ATO).

Establishing your own self managed superannuation fund is a very important financial decision but before you decide to go down this pathway you need to know the costs and understand your legal obligations. While managing your own SMSF can offer many benefits, they are subject to considerable compliance and regulation.

Advantages

One of the primary reasons why self-managed superannuation funds have grown in popularity in recent years is the fact the members have greater control over the range of investments, the ongoing management fees and ultimately their tax payable.

When contemplating the establishment of your own self managed superannuation fund you need to weigh up the advantages and the added responsibilities. For many Australians, SMSFs offer four major advantages:

1. More control over your investments
2. Greater investment flexibility
3. Generally lower fees than industry and retail funds
4. Potentially better performance than industry and retail funds

Starting or Buying a Business

Starting or buying a business necessitates research, risk, passion, courage and planning. To succeed you need to make the right opening moves and over the years we have mentored hundreds of clients through the business start-up phase. We are proud of our reputation as a business start-up specialists and along the way we have developed a number of practical tools and checklists to help you fast track your business success.

The business landscape has changed in this country courtesy of new technology and the internet. Your website is your marketing hub and depending on your target market, social media could be your most important marketing medium. The harsh reality is that enthusiasm, money, hard work, talent or a great idea is not enough to guarantee success in business.

According to 2011 Doing Business report by the World Bank, Australia is the second easiest place in the world to start a business with entrepreneurs needing only two days to get a business registered and operational. However, statistics from the Australian Securities and Investments Commission (ASIC) indicate that 10,746 companies entered external administration in the 2013 financial year, almost the same number as the previous year. Clearly, the old saying, ‘people don’t plan to fail, they just fail to plan’ still applies and and it remains both valuable advice and a warning for people intending to start a business.