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  • #984018
    Richmorg
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    Hello,

    I am helping a close friend with her Photography business which has been going for 4 years. She is a great photographer but lacking on the business acumen. Her financials are a bit of a mess to be honest. She pays for expenses via multiple accounts and cash so I’m cleaning that side of things up…its a start.

    Is it best to pay her a wage out of the business account weekly, then she pays rent and claim back a portion in her personal tax return…OR

    Have some rent paid from her business account directly? Is this possible?

    thanks

    #1145358
    Media Junky
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    Hi Richmorg,

    Welcome to the FS forum and best wishes for your friend and the business. You may want to check out this thread http://www.flyingsolo.com.au/forums/money-matters/ – there’s some great discussions about this topic.

    In resilience,

    Whisper

    #1145359
    Past-Member
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    Hi – welcome to FS.
    That link to the money matters is a good start – just remember some of the links may not work now that the ATO has moved everything around again.
    Here is the new direct link to the business page at the ATO
    http://www.ato.gov.au/Business/Your-business/

    I am not an accountant – but basically, if your friend is a sole trader, everything that comes in must be declared. If she earns over $20K then she can make claims for various items. Sole traders don’t get a ‘wage’ they do ‘owner drawings’. If she turns over $75K yearly she must be registered and charge GST. It’s optional if you are under that amount turnover (not income – turnover).

    I suggest you get all the accounts in order and then take them to an accountant as you need help to get them correct and she may be missing out on things. It’s definitely a good thing to get it sorted now, not later.

    All the best.

    #1145360
    Richmorg
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    Media Junky, post: 166642 wrote:
    Hi Richmorg,

    Welcome to the FS forum and best wishes for your friend and the business. You may want to check out this thread http://www.flyingsolo.com.au/forums/money-matters/ – there’s some great discussions about this topic.

    In resilience,

    Whisper

    Thank you very much.

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