The Team at Electra Frost Accounting have dealt with creative industries clients using cryptocurrencies and blockchain technology for a number of years and take a keen interest in the technological aspects of the industry. They’ve gained insights into the best ways to assist with the tax and accounting issues that typically arise for businesses and contractors working within the blockchain space.
A lack of clarity by regulators means that it is important to have an accountant who understands the complex transactions and can help your business track its growth. We can assist with the accounting, compliance, tax strategies and business planning for any operator within the blockchain space, from contractors through to reporting entities, and at any stage of your business from startup through to those looking at exit strategies.
Ask us about:
Deciding on the right structure for your business is important to plan for the best tax position and maximise your personal cash flows. It’s not just about the rate of tax you are paying on profit but how you then move the funds out, so you can utilise them in the future without creating problematic tax issues. It is important to understand the interactions of dividend franking, Division 7a loans and FBT legislation that may affect this process and the best way to manage these issues.
The easiest way to save money on taxation is to plan ahead. Having a detailed tax planning strategy to take into account the business life cycle and future growth issues – and constantly updating this strategy inline with the business direction – is extremely important.
Hedging to protect against tax issues
Which tax rules apply and when? Will your barter/ counter trade transactions be treated as ordinary income or have you triggered capital gains tax implications which must be dealt with separately? Should you sell assets at a certain time to protect yourself from negative tax impacts? You need to know the best way to do this, to avoid triggering any unexpected tax implications while also being prepared for the ATO taking a different view.
Private Rulings/Class Rulings for specific issues
Due to the complex nature of blockchain and the fact that our regulators are still playing catch-up, there are a myriad of issues that will arise that require specific interpretation by the ATO. We have extensive experience dealing directly with the ATO Early Intervention Team and ATO Cryptocurrency Review Group around complex issues in this space. Having a good understanding of blockchain technology and the systems and processes within the space means we can identify the best approach and articulate persuasive tax law arguments on your behalf.
ATO & ASIC Compliance
Including financial accounts and tax preparation. When dealing with blockchain and the associated assets there are complex reporting obligations around valuation of assets and inventories (Depending on the purpose for which the asset is held). closing valuation of stock can have a number of tax implications for a company in the mid to long term and it is important to understand these to effectively manage the cashflow of your business.
Assistance with Austrac Reporting Obligations
While it’s common for accountants to assist clients with reporting obligations very few accountants are familiar with Austrac reporting due to having a niche focus on blockchain technology we have assisted a number of clients running OTC exchanges in this area.
Please contact us for further information or book an initial consultation online.
Creative Technology Businesses:
We understand the business needs of media-tech and creative-tech start-ups. Many of our clients are in software development, web design, video production, animation, SFX, VR, gaming, apps, product design, social media, events, marketing, and artistic businesses in the digital realm.
As a technology company, you’re operating in a constantly changing market and have to think quickly, collaborate effectively and be innovative to come up with truly unique services and products. You may be raising and investing large amounts of start-up capital or grants and have to keep a close eye on your budget and cash flow.
However, when it comes to accounting, so many start-ups by-pass professional advice and use outdated software that doesn’t align with their business needs. If your accounting is difficult to manage it can inhibit your business growth.
Goodbye spreadsheets, hello Xero!
- With cloud accounting software you can streamline the day to day management of your finances, improve collaboration and grow your start-up tech business.
- Produce accurate financial reports and budgets for whenever you need to make critical business decisions and plans.
- Meet with your accountant on video to review and discuss your finances with real-time information.
Advice, Accounting and Tax Solutions for your Creative Technology Business:
It’s critical for you to access your financial information on the go. With Xero, you can manage your business from any device with an internet connection.
Use bank feeds to automatically receive accurate transactional data, and minimise time-consuming manual data entry work.
Design your own custom invoices and send them directly from the software to your clients to see online. Improve your Cash Flow by integrating your invoices with a merchant facility to get paid faster.
Run your business from anywhere with the mobile accounting app for iOS or Android. It’s easier to manage your expenses when travelling for business.
Check out the Xero App Market for a huge variety of add-ons to help you manage your business.
Email or upload copies of receipts, invoices and supplier contracts to your Xero Document Folder. They can even be attached to the bills and bank transactions you record.
Generate detailed Financial Reports each month to track your Business Performance. Discuss your Budget Variances and Key Performance Indicators with your accountant.
Collaborate with your accountant to minimise your tax liability well before 30 June. We work with our clients all through the year, and can help you to avoid unexpected tax bills.
When it’s time to do your BAS and Tax Return, your accounts will be ready for us to start working with. No more spreadsheets!