RBizz Corporate Accountants - Resources #Small Businesses

The Number on Your Invoice and the Number in Your Head Are Probably Not the Same Number

Thu, 10 Sep 2026 16:45:45 +1000

The Number on Your Invoice and the Number in Your Head Are Probably Not the Same Number

Ask a business owner roughly how much is currently owed to them, and most will give a confident, rounded figure off the top of their head. Pull the actual accounts receivable report, and that number is often meaningfully different — sometimes higher than expected because overdue invoices piled up quietly, sometimes lower because the mental estimate was inflated by optimism about payments that were never actually confirmed.

Why the Mental Number Drifts From Reality

The number in your head gets updated by memory and impression — a big invoice you're thinking about, a client who usually pays on time. The actual number is updated by what's genuinely outstanding, including invoices you've mentally already "counted" as paid, and ones that have quietly gone overdue without registering as a concern yet.

Where the Gap Actually Shows Up

Why This Matters for Cash Flow Specifically

If your mental picture of what's owed is optimistic, you may be assuming cash is coming that isn't actually confirmed or imminent — leading to spending or commitment decisions based on a number that doesn't match reality. If it's pessimistic, you might be more cautious than necessary, holding back on decisions the real numbers would actually support.

What to Actually Do

Pull your actual accounts receivable report today and compare it honestly against the number you would have guessed.
Identify anything genuinely overdue and start a proper follow-up process, rather than letting it drift further.
Make checking this a regular habit, not a one-off exercise — a number that's accurate today goes stale again within weeks if it's not maintained.

RBizz helps business owners keep an accurate, current view of what's actually outstanding, not just a rough mental estimate. Get in touch if you haven't checked your real accounts receivable figure recently.

You Don't Have a Marketing Problem. You Have a Follow-Up Problem.

Sat, 29 Aug 2026 23:22:05 +1000

You Don't Have a Marketing Problem. You Have a Follow-Up Problem.

When sales are slow, the instinct is to spend more on marketing — more ads, more content, more leads. But for most small businesses, the real leak isn't generating interest. It's what happens after someone shows it.

Where Leads Actually Go to Die

Why This Gets Missed

What to Check Right Now

How many enquiries came in last month, and how many actually got a second follow-up if the first contact went nowhere?
Is there a defined process for follow-up timing, or does it depend on whoever happens to notice the enquiry?
What's your actual enquiry-to-sale conversion rate — and would fixing follow-up move that number more than any new marketing spend would?

Before spending more to generate leads, it's worth checking whether the leads you already have are actually being chased properly.

RBizz helps business owners look at the real numbers behind sales conversion, not just marketing spend. Get in touch if you're not sure where your leads are actually going.

Tax Consequences of Restructuring or Selling Your Business

Wed, 05 Aug 2026 16:06:52 +1000

Tax Consequences of Restructuring or Selling Your Business

Whether you're restructuring your business for growth, bringing in new investors, or preparing for an outright sale, the tax consequences of how that transaction is structured can be just as significant as the commercial terms themselves. Two deals with an identical headline price can produce very different after-tax outcomes, purely based on how the transaction is put together.

Share Sale vs Asset Sale: The Foundational Decision

One of the most consequential structuring decisions in any business sale is whether the transaction is structured as a sale of shares (or units, for a trust) or a sale of the underlying business assets.

Share sale The buyer purchases the shares of the company itself, acquiring the entity along with all of its assets, liabilities, and history. For the seller, this is typically a capital gains tax event on the sale of the shares, with potential access to small business CGT concessions if eligibility criteria are met.

Asset sale The buyer purchases specific assets of the business (equipment, goodwill, stock, contracts) rather than the legal entity itself. This can trigger different tax consequences at the entity level, including potential balancing adjustments on depreciated assets, GST considerations on the sale of certain assets, and a different profile of what's available to distribute to shareholders afterward.

Buyers and sellers often have different preferences for which structure suits them — buyers may prefer an asset sale to avoid inheriting unknown liabilities, while sellers may prefer a share sale for CGT concession access — meaning this is frequently a negotiated point, not a foregone conclusion.

Restructuring Before a Sale

Businesses often restructure in the lead-up to a sale or investment round — separating out certain assets, consolidating entities, or adjusting ownership. These restructures can themselves trigger tax consequences if not carefully planned, including:

CGT events arising from transferring assets between related entities, even where no genuine third-party sale has occurred yet.
Stamp duty implications, depending on the states involved and the nature of the assets being restructured.
Loss of small business CGT concession eligibility, if the restructure inadvertently affects the ownership or asset tests those concessions depend on.
Division 7A considerations, where restructuring involves loans, asset transfers, or distributions between related entities.

Some restructuring rollover provisions exist specifically to allow certain reorganisations without immediate tax consequences, but eligibility depends on meeting specific conditions — this is an area where the sequencing and structuring of a pre-sale reorganisation genuinely matters.

Earnouts and Deferred Consideration

Many business sales aren't settled with a single upfront payment — earnout arrangements, where part of the sale price depends on the business achieving specific performance targets after the sale, are increasingly common. These arrangements raise their own tax timing questions, since the tax treatment of earnout payments can differ from a straightforward lump-sum sale, and getting the structure wrong can create a mismatch between when tax is payable and when the corresponding payment is actually received.

Common Areas Where Sellers Get Caught Out

Assuming CGT concessions apply without testing eligibility properly, particularly around the net asset value and active asset tests that underpin small business CGT relief.

Not accounting for tax on retained profits within the company, separate from the CGT on the share sale itself, if profits are subsequently distributed to shareholders.

Overlooking GST on specific assets included in an asset sale, particularly where the "going concern" GST exemption may or may not apply depending on how the sale is structured.

Underestimating the tax impact of earnout payments, particularly where the timing of tax liability doesn't align neatly with when deferred consideration is actually received.

Restructuring too close to the sale date, reducing the ability to demonstrate the restructure had a genuine commercial purpose separate from simply minimising tax on the upcoming sale.

What to Do Before Entering a Sale or Restructure

Model the tax outcome of a share sale versus an asset sale before negotiating terms, since this affects both the price negotiation and your actual after-tax proceeds.

Test CGT concession eligibility well in advance, rather than assuming it applies once a sale is already underway.

Review any planned restructuring for its own tax consequences, treating it as a transaction in its own right, not simply an administrative step before the "real" sale.

Model earnout tax treatment carefully if deferred consideration is part of the deal structure.

Involve tax advice before terms are agreed, not after, since restructuring the transaction after heads of agreement are signed is far more limited than structuring it correctly from the outset.

The Structure of the Deal Is Part of the Deal

The commercial terms of a business sale or restructure are only part of the picture — how the transaction is structured for tax purposes can materially change what you actually walk away with. This is worth addressing at the negotiation stage, not as an afterthought once terms are largely settled.

RBizz models the tax consequences of business sales and restructures before terms are finalised — schedule a free consultation before you enter your next transaction.

Why Tax Season Doesn't Have to Be Stressful

Fri, 24 Jul 2026 14:15:15 +1000

Why Tax Season Doesn't Have to Be Stressful

For most business owners, tax season brings a familiar mix of deadlines, paperwork, and the nagging sense that something might be missed. It doesn't have to be that way — and at RBizz Corporate Accountants, helping businesses move through tax season with clarity and confidence is exactly the work we do every day.

Tax Season Is a Symptom, Not the Problem

The stress most business owners associate with tax season rarely comes from the tax itself. It comes from uncertainty — not knowing whether records are in order, whether a deadline has been missed, or whether a deduction has been overlooked. Businesses that move through tax season smoothly aren't the ones with the simplest affairs. They're the ones with the clearest year-round support.

That's the gap we exist to close.

How We Support Businesses Through Tax Season

Proactive deadline management Rather than waiting for a deadline to approach, we track lodgment dates, BAS cycles, superannuation payments, and instalment obligations across the full financial year — so nothing arrives as a surprise.

Structure-aware compliance Whether you operate as a company, trust, partnership, or sole trader, the obligations and opportunities differ. We work within your specific structure, not a generic checklist, to make sure compliance and planning are aligned with how your business actually operates.

Deduction and concession reviews Many businesses miss deductions and concessions they're legitimately entitled to — not through carelessness, but because these opportunities require someone actively looking for them. We build that review into how we work with every client, not as an afterthought at lodgment time.

Cash flow-aware tax planning Tax obligations don't hit evenly across the year. We help clients — particularly growing businesses and those with more complex structures — plan around the clustering of BAS, PAYG, and superannuation payments, so tax season doesn't become a cash flow event.

Direct ATO liaison Where a payment plan, an amendment, or a review is needed, we manage that conversation directly with the ATO on our clients' behalf — keeping the process professional, efficient, and free of unnecessary stress for the business owner.

Who We Work With

Our clients span companies, trusts, partnerships, sole traders, and SMSFs across professional services, trades, retail, manufacturing, distribution, IT, education, and medical industries — as well as international businesses entering the Australian market and organisations exploring outsourced accounting support. Regardless of structure or industry, the same principle applies: proactive, structure-aware support turns tax season into a routine part of running the business, not a disruption to it.

Global CFO Accountants Helping Businesses Rise

That's not just a tagline for us — it reflects how we approach every client relationship. Tax compliance is the baseline. Our focus is on what happens beyond it: better structuring, clearer forecasting, and advice that helps businesses grow with confidence, not just lodge on time.

Let's Take the Stress Out of This Tax Season

If tax season currently feels like something that happens to your business rather than something you're prepared for, that's exactly the shift we help clients make.

Schedule a free consultation with RBizz Corporate Accountants and let's build a tax season approach that works for your business, not against it.

ATO Audit Triggers: What Increases Your Risk in 2026

Wed, 15 Jul 2026 19:58:35 +1000

ATO Audit Triggers: What Increases Your Risk in 2026

Very few businesses get audited purely at random. The ATO uses data matching, industry benchmarking, and automated flags to identify returns that warrant a closer look — and understanding what raises that flag is one of the simplest ways to reduce your risk.

Being audited isn't necessarily a sign that something's wrong. But it is time-consuming, and businesses with clean, well-substantiated records go through the process far more smoothly than those without. Here's what typically increases audit risk, and how to stay on the right side of it.

Common Audit Triggers

1. Figures That Sit Outside Industry Benchmarks

The ATO publishes small business benchmarks for many industries, comparing reported income and expenses against typical ranges for similar businesses. A return that sits well outside these ranges — unusually low profit margins, unusually high expense ratios — can attract closer attention.

2. Inconsistencies Between Reports

If your BAS figures, income tax return, and payroll reporting (via Single Touch Payroll) don't align with each other, it creates a visible inconsistency the ATO's systems are specifically designed to catch.

3. Large or Unusual Deductions Relative to Income

A significant jump in claimed deductions — particularly ones without clear substantiation — is a common trigger, especially when it isn't matched by a corresponding change in revenue or business activity.

4. Cash-Heavy Business Models

Businesses in industries where cash transactions are common (hospitality, trades, personal services) face additional scrutiny, simply because underreporting is statistically more common in these sectors. This doesn't mean cash businesses are assumed to be non-compliant — it means recordkeeping matters even more.

5. Related-Party Transactions

Loans between a company and its directors or shareholders, family trust distributions, and related-party rent or service arrangements are all closely monitored, particularly where the terms don't reflect an arm's-length arrangement.

What Reduces Your Risk

None of these triggers mean an audit is guaranteed, and none of them should be avoided by simply not claiming what you're entitled to. The goal isn't to minimise legitimate deductions — it's to make sure everything claimed is properly substantiated.

Keep documentation for every deduction, not just a receipt but a clear business justification.
Reconcile BAS, payroll, and tax return figures against each other before lodgment, not after a discrepancy is flagged.
Document related-party arrangements formally, including loan agreements and market-rate justification for rent or services.
Lodge on time, consistently, even if the exact figures are still being finalised — amendments are far less disruptive than a pattern of lateness.
Have a second set of eyes review unusual years — a year with materially different figures from the one before is worth a proactive review, not just a lodgment.

If You Are Selected for Review

An ATO review or audit isn't automatically adversarial. Businesses with clear records, honest positions, and professional representation typically move through the process efficiently. The businesses that struggle are usually the ones without the paperwork to back up what they've claimed — not the ones who made an honest, well-documented judgment call that turned out to be scrutinised.

Confidence Comes From Preparation, Not Luck

The best defence against audit risk isn't avoiding attention — it's making sure that if attention comes, your records hold up without a scramble.

RBizz reviews client accounts with audit-readiness in mind year-round, not just at tax time — schedule a free consultation to check where your business stands.

Common Tax Deductions Australian Businesses Miss Every Year

Mon, 13 Jul 2026 12:21:14 +1000

Common Tax Deductions Australian Businesses Miss Every Year

Every tax season, business owners across Australia pay more tax than they need to — not because they're doing anything wrong, but because they're missing deductions they're legitimately entitled to claim.

Some of these get missed because they're easy to overlook. Others get missed because business owners assume "it's probably not deductible" and don't bother checking. Either way, the result is the same: money left on the table that could have gone back into the business.

Here are the deductions we see businesses miss most often.

1. Home Office Expenses

Equipment, vehicles, tools, and technology all lose value over time — and that loss is deductible. Businesses frequently miss:

Instant asset write-off eligibility on smaller purchases
Depreciation schedules on larger assets that were never properly set up
Software and subscription-based tools treated as an expense rather than a depreciable asset (or vice versa, depending on the accounting treatment)

An outdated or missing depreciation schedule is one of the most common gaps we find when reviewing a new client's accounts.

2. Depreciation on Assets

Partnerships and trusts sit in the middle — they lodge a tax return, but generally don't pay tax at the entity level. Instead, income flows through to partners or beneficiaries.

What applies to you:

The entity itself lodges an information return, but tax is paid by the individuals/entities receiving the distributed income.
Trust distribution resolutions must generally be finalised before 30 June — missing this can result in the trustee being taxed at the top marginal rate on undistributed income.
Partnerships need clear, documented profit-sharing arrangements, especially if they've changed during the year.
GST and PAYG withholding obligations still apply at the entity level if registered and employing staff.

What to prepare now: Confirm trust resolutions are drafted and signed before the cut-off, and review partner drawings against actual profit share to avoid surprises at tax time.

3. Professional Development & Training

Money spent upskilling yourself or your staff in a way that relates to your current business is generally deductible — including:

Industry courses and certifications
Conference and seminar costs
Relevant subscriptions, journals, and memberships

This is frequently missed because it doesn't feel like a "business cost" in the way rent or wages do.

4. Bad Debts

If a customer genuinely won't pay and you've written the debt off in your accounts before year-end, that amount may be claimable as a deduction. Many businesses either forget to formally write off the debt, or don't realise the deduction exists at all.

5. Motor Vehicle Expenses

Vehicle-related deductions are commonly under-claimed because business owners either:

Don't keep a logbook, so they default to the lower cents-per-kilometre method even when the logbook method would produce a bigger deduction
Forget to include registration, insurance, and depreciation alongside fuel costs
Mix up personal and business use without a clear record to substantiate the split

6. Superannuation Contributions (Paid on Time)

Super paid to yourself or employees is only deductible in the financial year it's actually paid — not accrued. Businesses that pay their final quarter's super slightly late (even by a few days into the new financial year) can lose the deduction for that year entirely.

7. Prepaid Expenses

Some businesses can claim a deduction in the current year for expenses prepaid for a period extending into the next financial year — such as insurance, subscriptions, or rent — depending on eligibility rules. This is a timing opportunity that's frequently missed simply because it isn't top of mind before 30 June.

Why These Get Missed

None of these deductions are obscure loopholes. They're legitimate, well-established parts of the tax system. They get missed because:

Records aren't detailed enough to substantiate the claim
Business owners aren't aware the deduction applies to their situation
There's no proactive review before lodgment — just a reactive one

The Fix Is Usually a Conversation, Not a Complication

Most of these deductions don't require a major overhaul to claim correctly — they require a proper year-end review with someone who knows what to look for.

RBizz Corporate Accountants reviews your business finances with an eye for exactly these gaps — schedule a free consultation to see what you might be missing.

Tax Season in Australia: What Companies, Businesses & Sole Traders Need to Know

Thu, 09 Jul 2026 18:18:16 +1000

Tax Season in Australia: What Companies, Businesses & Sole Traders Need to Know

Tax season doesn't look the same for every business. A company, a small business partnership, and a sole trader all sit under the same ATO calendar — but the obligations, paperwork, and risks each one faces can be quite different.

Understanding which rules apply to your structure isn't just about compliance. It's about making sure you're not overpaying, under-preparing, or missing something your entity type is specifically exposed to.

Here's how tax season breaks down across the three most common business structures in Australia.

Companies

Companies face the most structured — and often the most complex — reporting obligations of the three.

What applies to you:

Company tax is a flat rate (currently 25% for base rate entities, 30% for others) — not dependent on the owner's personal income like a sole trader.
Company tax returns are generally due by 28 February for companies not using a tax agent, or later if lodging through a registered agent's program.
Directors have separate obligations, including Director ID requirements and personal liability exposure for unpaid PAYG and SG amounts under the Director Penalty Notice regime.
Franking credits and dividend distributions add another compliance layer if the company pays dividends to shareholders.

What to prepare now: Reconcile trial balances, confirm any Division 7A loan repayments are on track, and review whether retained profits should be distributed or reinvested before year-end.

Businesses (Partnerships & Trusts)

Partnerships and trusts sit in the middle — they lodge a tax return, but generally don't pay tax at the entity level. Instead, income flows through to partners or beneficiaries.

What applies to you:

The entity itself lodges an information return, but tax is paid by the individuals/entities receiving the distributed income.
Trust distribution resolutions must generally be finalised before 30 June — missing this can result in the trustee being taxed at the top marginal rate on undistributed income.
Partnerships need clear, documented profit-sharing arrangements, especially if they've changed during the year.
GST and PAYG withholding obligations still apply at the entity level if registered and employing staff.

What to prepare now: Confirm trust resolutions are drafted and signed before the cut-off, and review partner drawings against actual profit share to avoid surprises at tax time.

Sole Traders

Sole traders have the simplest legal structure — but that doesn't mean the simplest tax outcome, since business income is taxed at personal marginal rates.

What applies to you:

Business income and expenses are reported on your individual tax return (via a business schedule), not a separate entity return.
There's no company tax rate to fall back on — profit is taxed progressively, which can mean a heavier tax burden in a strong year.
PAYG instalments are common for sole traders once income crosses ATO thresholds, meaning tax is paid throughout the year, not just at lodgment.
Superannuation isn't compulsory for yourself as a sole trader, but voluntary contributions can be a valuable tax-planning lever.

What to prepare now: Review whether your income level this year makes moving to a company or trust structure worth exploring, and check your PAYG instalment amount reflects your actual current income.

The One Thing All Three Have in Common

Regardless of structure, the businesses that move through tax season smoothly all do the same three things:

Keep records current, not retrospective. Monthly reconciliation beats a scramble every June.
Know their specific lodgment dates. "Tax season" isn't one date — it's a calendar of dates that differs by structure and lodgment method.
Talk to their accountant before decisions, not after. Structure changes, distributions, and large purchases are far easier to plan for than to undo.

The Getting the Right Structure Working for You Line

Whether you're a company managing director obligations, a trust finalising distribution resolutions, or a sole trader weighing up whether it's time to incorporate, the right guidance early in the year makes tax season a formality rather than a fire drill.

Rbizz Corporate Accountants works with companies, partnerships, trusts, and sole traders across every stage of the tax calendar — schedule a free consultation to see where your business stands.

Using asset finance and technology to boost productivity

Fri, 03 Jul 2026 00:55:27 +1000

Using asset finance and technology to boost productivity

“More Australian businesses are getting productivity gains from upgrading old equipment, tech, and vehicles, with farmers and manufacturers leading a recent investment surge.”

CommBank has released data from its asset finance department showing that there are clear productivity gains to be made from investing in new technology.

The importance of established technologies

Although we’re used to seeing the advantages of AI and software tech being trumpeted, we mustn’t forget the importance of vehicle and equipment technologies.

According to CommBank, Australian businesses are reporting major productivity gains after upgrading vehicles, machinery and technology:

87.6% of businesses reported productivity gains above 10% following recent asset upgrades.
CBA recorded a 20% year-on-year increase in vehicle and equipment financing in December 2025.

The strongest level of growth was recorded across equipment categories central to Australia’s industrial and regional sectors.

December 2024 vs December 2025 CBA Asset financing

Agricultural machinery – up 116%
Manufacturing & industrial equipment – up 76%
Retail and office fitouts – up 64%
Technology assets – up 48%
Trucks – up 18%

How asset finance opens up your access to new technologies

Investing in new technologies means having the necessary capital to fund these investments. Asset finance is a key way to source this funding and to drive your productivity as a business.

If you’re looking to buy new vehicles, equipment or machinery, come and talk to us about the key ways that asset finance can open up new routes to funding.

Basics strategic advice: how do accountants support your financial performance?

Fri, 03 Jul 2026 00:50:06 +1000

Basics strategic advice: how do accountants support your financial performance?

“Q: How does an accountant support my financial performance?”

We’re all used to the idea of a business needing an accountant. But have you ever stopped to think what a good accountant and business adviser can actually bring to your company?

Advances in technology, software and AI are changing our expectations of what a basic accountant/business owner relationship can offer. So, it’s important to reassess your expectations and to find out where we can add real, additional value.

“A: Your accountant is now a full-fledged business adviser, ready to help you review, manage and transform your finances and strategy.”

In previous decades, your accountant dealt primarily with historical data – the transactions and cash inflows/outflows that had happened in the past.

Today, with access to so much smart forecasting, data analysis and forward-looking scenario-planning, we can tell you far more about the future of your business.

Let’s look at four ways we can partner with your business:

Analysing your financial performance:

We’ll track your key performance indicators (KPIs) and business data to look for areas where the business may be underperforming. We can offer future-facing advice on cost-reduction strategies, operational efficiencies and key ways to improve your overall financial performance.

Optimising your revenue generation:

Improving revenues is a vital step. We can review your pricing models, customer lifetime value and sales mix to find the most lucrative revenue streams. By drilling down into your revenue data, we can suggest a new strategy that will translate into scalable, repeatable top-line growth.

Managing cashflow and your cash runway:

Cashflow forecasting tools allow us to see far into the future of your cashflow, spotting the liquidity gaps before they occur. We’ll also look over your accounts receivable and payable cycles to ensure you're in a positive cashflow position, with a solid cash runway to fund your ongoing operations.

Driving profitability and planning dividends:

By performing what-if scenario modelling, we’ll help you maximise your net margins and drive profits. We can also advise you on the most tax-efficient ways to distribute profits and dividends to yourself and your fellow directors. This balances your own need to extract wealth from the business while also leaving sufficient earnings for future reinvestment.

Your accountant is one of the most important partners your business will have across its lifetime.

We’re here to reveal the narratives in your numbers, show you the threats and opportunities and come up with a strategy that pushes your financial performance to new heights.

Book some time with our team to talk through how we can boost your financial performance.

Choosing the Right Business Structure

Fri, 03 Jul 2026 00:48:50 +1000

Choosing the Right Business Structure

Starting a business can be daunting between sales, marketing, and day-to-day financing, plus there is the big question of which business structure to use.

The three most common types – a company, a partnership, or a sole trader – have very different cost and administrative burdens, as well as different implications when it comes to legal status and liability.

Find out more about the pros and cons of each below.

Going it alone as a sole trader

Working within a partnership

Operating as a Company

Which structure is best?

Choosing a business structure is always a very personal decision. Need help deciding which one is right for your circumstances? Book some time with our team today, we’d be happy to discuss the best option for you.