Information & Communications Accounting Services
What accounting and tax opportunities do these types of businesses offer?
There are tax and tax cost opportunities to consider when establishing the business model, structures and arrangements that make up an information and / or communication business.
Ascendia's accountants Sunshine Coast in Mooloolaba & Noosa, and in Mitchelton North Brisbane, have worked with businesses in this area resulting in legitimate reductions in ongoing operating tax costs where the business model is appropriate and its operation bone fide matches the tax opportunities available. Seeking a private tax ruling can be useful in this circumstance.
It would not be useful or appropriate to outline what different areas Information & Communications businesses can benefit from - as there are many and many will not necessarily apply to your business.
However, we are happy to discuss your business circumstances with you - or the opportunity to consider your business model in its tax implications - at an initial confidential interview: at no obligation or cost to you.
Are there any commercial lessons Ascendia has seen in respect of Information & Communication businesses?
We have seen some Information & Communications business entrepreneurs come and see us a bit late in the timeframe of their business dealings. This has resulted in additional costs to them that could have been avoided.
We have also seen a need for a very high standard of financial accounting and business and legal documentation to protect the business owner from losing value from their business down the track. This is primarily because business owners are actually deriving value from intangible assets and rights that only have financial and legal documentation to substantiate them.
If normal financial accounting processes and standards are not used, and / or legal and normal business documents and processes are not followed from the start - the business owner leaves themselves open to the real risk of losing some of the value and or right to the intangible assets of the business which they have worked so hard to create.
Our Brisbane, Noosa and Mooloolaba accountants have also seen a number of issues arise with Information & Communications businesses, in areas that are often relatively simple - because the normal business approach or understanding may not apply, or the counterparties have misunderstandings due to the novelty of the service.
As a result, financial documentation, and accounting and preparation of financial accounts in a timely manner is very important.
Contracts can be worth a lot of money, intellectual property can cost a little but be worth a lot later on; revenue streams can be large and complex. As a result balance sheets and revenue are particular areas where problems can occur if financial accounting services are not carried out correctly.
Areas that should be carefully considered and advice obtained in regards to, include:
- Payment of moneys to third parties who are not under an employment agreement(s).
- Clear Employment Agreements including relating to Intellectual Property, Confidentiality, and fulfillment of Employment obligations by Employers.
- Invoicing of Clients, invoice documentation, provision of credit to clients, management of client debts to you.
- Service scope and the terms and conditions and ongoing service obligation including purpose and liability.
- Location and supply of service and service obligations.