Blog Layout
ACNC releases annual report
Dan Wade • March 2, 2021
ACNC RELEASES ANNUAL REPORT
The ACNC has tabled its 2019–20 annual report, revealing insights into the charity sector and the commission's activities.
To allow charities to focus on relief and recovery efforts for bushfires, the commission paused most compliance activity for charities in bushfire-affected areas unless there was a significant ongoing risk of non-compliance.
The commission provided annual information statement extensions for around 7000 affected charities and prioritised charity-registration applications related to bushfires.
'A critical part of our work is to provide information about charities to the public,' ACNC commissioner Gary Johns said.
'We have seen the ACNC charity register visits significantly grow year on year, with more than 3.2 million searches last financial year.'
When COVID-19 hit Australia, the commission helped charities with their governance and operations by publishing news, information, and guidance on its website. It also adjusted its approach to regulation, deferring information-statement due dates for more than 18,000 charities and suspended some investigations.
The ACNC has continued to work with other government agencies to streamline reporting requirements across jurisdictions.
Highlights include a new law passed to relieve Queensland charities of duplicated annual financial reporting, and bilateral negotiations with several states to reduce red tape for fundraisers.
'The importance of the charity sector should not be underestimated. It is crucial to supporting the Australian community and it employs 10 per cent of Australians,' Dr Johns said.
'We directed a substantial proportion of our efforts this year to helping charities navigate through these tough times and to reducing the burden on them as much as
we can.'
Key statistics include:
- There was a significant rise in activity on the ACNC website. Page views totalled more than 12 million – six times more than the previous year
- There were 3.2 million register searches – more than three times the previous year's
- A total of 32,602 phone calls and 13,362 written enquiries were received during the year
- 2568 new charities were registered
- There were 2102 concerns about charities, down from 2323 the previous year, most having been received from the public or members of a charity. The most common concerns were about perceived mismanagement of funds and individuals obtaining a private benefit from a charity, and
- 79 investigations were finalised, resulting in 18 charities having their registrations revoked. That compares with 12 revocations in the previous year from 100 investigations.
The ACNC's 2019-20 annual report is available at https://acnc.gov.au/tools/reports/acnc-annual-report-2019-20 .
The start of a new year offers a clean slate—an opportunity to reset, refocus, and ensure your business is on solid financial footing.
This is a subtitle for your new post
Here’s a closer look at the five key stages of business growth and how strategic financial planning can support success at every step.
As accountants, we often see businesses at various stages of growth, and one of the most common questions we encounter is: "When is the right time to grow?"
Growing your business is an exciting journey filled with opportunities and challenges.
Expanding your team is an exciting step towards growing your business, but it also comes with its own set of challenges and considerations.
Budgeting is not just a mundane task relegated to the realm of accounting; it's a strategic imperative that serves as the cornerstone of financial management for businesses of all sizes.
Navigating Financial Perspectives for Businesses
In the world of business, the management of debt is a fundamental aspect that can significantly impact an organisation's financial health and long-term success. However, amidst the myriad of financial principles, one overarching truth often remains overlooked: "Debt is always repaid with after-tax money." Understanding this principle is paramount for businesses aiming to navigate the complex landscape of finance effectively. Let's delve deeper into this concept and explore why grasping it sooner rather than later is crucial for businesses of all sizes. What Does "Debt is Repaid with After-Tax Money" Mean? At its core, this principle emphasises that any debt incurred by a business must eventually be repaid using profits that have been subjected to taxation. Unlike pre-tax earnings, which can be reinvested into the business or used for various purposes before taxation, the funds allocated for debt repayment have already been taxed. This distinction has significant implications for businesses, particularly in terms of financial planning, budgeting, and decision-making. Why Understanding This Principle Matters Accurate Financial Planning: Recognising that debt repayment relies on after-tax profits enables businesses to develop more accurate financial forecasts and budgets. By factoring in tax obligations when planning for debt repayment, businesses can avoid overextending their financial resources and ensure sustainable growth. Optimised Tax Strategies: Understanding the tax implications of debt repayment allows businesses to implement tax-efficient strategies to minimize their overall tax burden. From leveraging tax deductions to optimising debt structures, businesses can strategically manage their finances to maximize after-tax profits and drive long-term success. Informed Decision-Making: Armed with the knowledge that debt is repaid with after-tax money, business leaders can make more informed decisions regarding capital allocation, investment opportunities, and risk management. By considering the true cost of debt repayment, businesses can assess the feasibility of potential investments and prioritise initiatives that yield the highest returns. Mitigated Financial Risks: Failing to acknowledge the impact of taxation on debt repayment can expose businesses to financial risks and cash flow challenges. By proactively managing debt obligations with an understanding of after-tax implications, businesses can mitigate risks associated with excessive debt and maintain financial stability even in volatile economic environments. Partnering with a Trusted Accounting Firm At Wrights, we understand the importance of aligning financial strategies with overarching principles like "Debt is always repaid with after-tax money." Our team of experienced professionals is dedicated to providing personalised guidance and support to help businesses navigate the complexities of finance with confidence and clarity. From tax planning and compliance to financial analysis and strategic advisory services, we are committed to empowering businesses to achieve their goals and thrive in today's competitive landscape. In conclusion, grasping the principle that debt repayment relies on after-tax profits is essential for businesses seeking to optimise their financial performance and achieve sustainable growth. By embracing this truth and partnering with a trusted advisor, businesses can unlock new opportunities for success and build a solid foundation for a prosperous future. Let's work together to turn financial challenges into opportunities and pave the way for lasting success. At Wrights, we're committed to empowering businesses with accurate and actionable financial information. Our team of experienced professionals is dedicated to providing comprehensive accounting services tailored to your unique needs. To find out more about how we can help you, please contact one of our team at admin@wrightsca.com.au . Important notice: This article provides information rather than financial advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information.
In the realm of finance, few things are as misunderstood as accounting. Despite its pivotal role in driving business success, accounting is often surrounded by myths and misconceptions that can lead to confusion and costly mistakes. As a trusted accountancy firm committed to clarity and accuracy, at Wrights we believe it's essential to dispel these myths and provide businesses with the knowledge they need to navigate the financial landscape confidently. Join us as we debunk some of the most pervasive accounting myths and shed light on the truth behind them. Myth #1: Accounting is Only About Numbers While it's true that accounting involves a significant amount of number crunching, its scope extends far beyond simple arithmetic. Modern accounting encompasses a wide range of disciplines, including financial analysis, strategic planning, and compliance with regulatory standards. Accountants are not just bean counters; they are strategic advisors who help businesses make informed decisions based on financial data. Myth #2: Small Businesses Don't Need Professional Accounting Services Many small business owners believe that they can manage their finances effectively without professional assistance. However, this misconception can be costly in the long run. Professional accountants bring expertise and insights that can help small businesses optimise their financial processes, minimise tax liabilities, and identify growth opportunities. Investing in professional accounting services is an investment in the future success of your business. Myth #3: Accounting Software Can Replace Human Accountants The advent of accounting software has led some to believe that human accountants are becoming obsolete. While accounting software can automate certain tasks and improve efficiency, it cannot replace the expertise and judgement of a skilled accountant. Human accountants offer valuable insights, interpretation of financial data, and strategic advice that software alone cannot provide. By combining the power of technology with human expertise, businesses can achieve optimal results. Myth #4: All Accountants Are the Same Contrary to popular belief, not all accountants are created equal. There are various types of accountants, each with its own specialisation and expertise. From tax accountants to forensic accountants to management accountants, the field of accounting offers a diverse range of skill sets tailored to different needs and industries. Choosing the right accountant for your business requires careful consideration of your specific requirements and objectives. Myth #5: Accounting is Boring and Incomprehensible Accounting is often unfairly labelled as dull and incomprehensible, but nothing could be further from the truth. At its core, accounting is about telling the story of a business through its financial data. It's a dynamic field that requires analytical thinking, problem-solving skills, and attention to detail. By demystifying accounting concepts and making them accessible to everyone, we can help businesses harness the power of finance to achieve their goals. At Wrights, we're committed to debunking accounting myths and empowering businesses with accurate, actionable financial information. Our team of experienced professionals is dedicated to providing comprehensive accounting services tailored to your unique needs. To find out more about how we can help you, please contact one of our team at admin@wrightsca.com.au . Important notice: This article provides information rather than financial advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information.