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Payday Super FAQs for Small Business Clients

Fri, 24 Apr 2026 03:36:00 GMT

From 1 July 2026, the way employers pay super is changing. These FAQ's explain what Payday Super means for your business, what's different, and what you need to do to get ready.

The Basics

1. When does Payday Super start?

1 July 2026. From that date, employers must pay super at the same time as salary and wages. You can start paying more frequently before then to help your business adjust, but it’s not compulsory until July.

2. What exactly is changing?

Most businesses currently pay super quarterly. Under Payday Super, you’ll need to pay super every time you pay your employees. Weekly pay means weekly super. Fortnightly means fortnightly. Monthly means monthly. The amount doesn’t change — just the timing.

3. What’s the deadline?

It’s not enough to just send the money on payday. The super must land in your employee’s fund within 7 business days of payday. That’s a big shift from the current system, where you have until 28 days after the end of the quarter.

4. Does this apply to all employers?

Yes — every employer in Australia, regardless of size. That includes sole traders with just one employee. There’s no small business exemption.

5. What counts as “payday”?

It’s the day you actually pay an employee their salary or wages. The legislation calls it the “Qualifying Earnings day.” Every payday triggers a super obligation.

6. I already pay super monthly. Do I still need to change anything?

Possibly. If you pay staff fortnightly but only pay super monthly, you’ll need to align super with each pay run. The rules require super to be paid on payday and received by the fund within 7 business days — not just by month-end.

ATO Clearing House (SBSCH)

7. Can I keep using the ATO’s free clearing house?

No. The Small Business Superannuation Clearing House (SBSCH) is closing permanently on 1 July 2026. It was built for quarterly processing and can’t handle the speed Payday Super requires. Access ends at 11:59 pm on 30 June 2026.

8. What do I need to do if I use the SBSCH?

Switch to a commercial clearing house or payroll software that can process super each pay run. Before the SBSCH closes, make sure you download all your historical records and employee data — once it shuts down, that information is gone for good.

9. What are my alternatives?

Most payroll platforms (Xero, MYOB, QuickBooks, Employment Hero, and others) now have built-in super payment features that handle calculation, submission, and tracking. Standalone commercial clearing houses are also an option. Not sure what’s right for your business? Have a chat with us and we’ll help you work it out before the deadline.

Calculations & Qualifying Earnings

10. What are “Qualifying Earnings”?

Currently, super is calculated on “Ordinary Time Earnings” (OTE). Under Payday Super, this changes to “Qualifying Earnings” (QE). For most businesses, QE works much the same as OTE. The main difference is that salary sacrifice amounts are now explicitly included — so salary sacrifice can’t be used to reduce your super guarantee obligation. If your employees are on straightforward pay arrangements, you’re unlikely to notice a difference.

11. Will I end up paying more super?

In most cases, no. The super rate itself doesn’t change. But if you have employees on salary sacrifice, complex pay structures, or earnings close to the maximum contribution base, the calculation changes may affect what you owe. The biggest shift for most businesses won’t be how much you pay — it’s when the money leaves your account. If you’re unsure, we can take a look at your payroll and check.

Penalties & Compliance

12. What happens if super is paid late?

If the money doesn’t reach the employee’s fund within 7 business days of payday, you may cop the Superannuation Guarantee Charge (SGC). That includes the unpaid amount, daily compounding interest, and an administrative uplift penalty of up to 60%. The new SGC is expected to be tax-deductible — but penalties for paying the SGC itself late are not.

13. What if the delay is the bank’s fault, not mine?

Doesn’t matter — you’re still on the hook. The law cares about when the fund receives the money, not when you sent it. Bank transfers can take up to three business days, and clearing houses may add more on top. So you should be initiating payment on payday, not a few days later, to give yourself enough room within the 7-day window.

14. Will the ATO come down hard from day one?

They’ve said they’ll take a “measured approach” in the first 12 months. In practice, that means they’ll go easier on businesses that are genuinely trying to get it right — updated systems, payments going out on time, issues being fixed quickly. But it’s not a free pass. If you’re ignoring the rules or repeatedly missing deadlines, expect enforcement action from the start.

15. What if I make a genuine mistake on one pay run?

If you pick it up quickly, lodge a voluntary disclosure with the ATO, and pay what’s owed, the uplift penalty may be reduced. A clean compliance history helps. This is one of the big reasons to use automated systems and keep solid records — you want to spot problems before the ATO does.

Cash Flow & Planning

16. How will this affect my cash flow?

Right now, you might be sitting on two or three months’ worth of super before it’s due. Under Payday Super, that money leaves your account every pay cycle. For some businesses, that could mean tens of thousands of dollars that’s no longer available as a buffer. You won’t be paying more overall — but you’ll need the cash on hand much sooner. We’d strongly recommend modelling the impact for your business sooner rather than later.

17. I’m a seasonal business. How do I manage super during the quiet months?

This is one of the trickiest parts of Payday Super for businesses with ups and downs in revenue. You’ll need to put money aside during the busy periods to cover super when things slow down. A dedicated cash reserve for super, or adjusting your invoicing and collection cycles, can help smooth things out. Talk to us about building a cash flow forecast that works around your seasonal pattern.

Payroll & Systems

18. What if an employee’s super fund rejects a payment?

You’re still responsible for meeting the 7-day deadline. If a payment bounces — wrong fund details, closed account, processing error — you need to sort it out and resubmit as fast as possible. This is why it’s so important to keep employee super fund details up to date. Check them during onboarding, and ask staff to let you know straight away if anything changes.

19. I use a bookkeeper or external payroll provider. Is this their problem or mine?

The legal obligation sits with you as the employer. If someone else handles your payroll, you need to make sure they understand the new rules and that their systems can meet the 7-day deadline. Have a conversation with them now about how they’re planning to handle Payday Super — and get clear on who’s responsible for what. If something goes wrong, the ATO will be looking at you, not your bookkeeper.

Contractors & Special Cases

20. Does Payday Super apply to contractors?

It can. If a contractor is paid mainly for their labour, they’re generally treated as an employee for super purposes. If you’re already paying super for a contractor, you’ll need to meet the same 7-day deadline as you would for any other employee. Not sure whether your contractors are caught by this? Worth checking now rather than after the deadline — we can help you work it out.

21. What about directors who take a salary?

Yes — working directors who are paid a salary or director’s fees are generally entitled to super. Under Payday Super, their contributions need to be paid on the same basis as everyone else: within 7 business days of payday.

Getting Ready

22. What should I be doing now?

Five things. First, check your payroll software can handle super with every pay run — talk to your provider to confirm. Second, if you use the SBSCH, start moving to a new clearing house or integrated payroll solution now. Third, model your cash flow so you understand how more frequent super payments will hit your business. Fourth, make sure all your employee super fund details are up to date and correct. And fifth, talk to your accountant sooner rather than later — the earlier you start, the smoother the transition.

23. Do I need to speak to my accountant?

Yes. Payday Super affects your payroll, your cash flow, your systems, and your compliance obligations. It’s not a single change — it’s a shift in how your business operates. Getting advice now gives you time to prepare properly and avoid expensive mistakes down the track.

If you’ve got questions about how Payday Super will affect your business, get in touch with our team. A quick conversation now can save you a lot of time, money, and stress later on.

Navigating CGT on Your Home: New ATO Clarity for Home-Based Businesses

Mon, 13 Apr 2026 03:54:19 GMT

Running a business from home—whether as a sole trader, freelancer, or small operator—has many perks.

But when it comes to selling your home and potentially saving on tax, recent guidance from the ATO serves as a reality check.

The ATO has provided its views on how home-based businesses interact with the small business capital gains tax (CGT) concessions, providing a warning on how the ATO approaches a long-standing area of confusion.

The Key Issue: Active Asset Test

When an individual sells their main residence, they will often enjoy a full CGT exemption. However, if part of the home is used for business purposes, this can potentially impact on the scope of the exemption.

If a full exemption isn’t available under the main residence rules then we typically look to other CGT concessions, including the CGT discount for assets that have been held for more than 12 months or the small business CGT concessions.

The small business CGT concessions can potentially reduce or eliminate a capital gain made on sale of a property, but only if certain conditions are passed. One of the key conditions is that the property must pass an active asset test.

In very broad terms, to pass the active asset test you need to show that the property has been actively used in a business activity for at least 7.5 years across the ownership period or for at least half of the ownership period.

The ATO is clear: the active asset test applies to the entire property, not just the business portion. When you are applying the active asset test, an asset either passes this test or fails it. It is not really possible for an asset to partially pass the active asset test. The entire property is either an active asset or it is not.

Simply having a home office, workshop, or even being able to claim home occupancy expenses as a deduction does not necessarily make your home an active asset. Where business use is incidental to the home’s primary residential purpose, the ATO’s view is that the small business CGT concessions generally do not apply.

Rus v FCT

The view that the entire property must qualify as an active asset—and that incidental or minor business use (such as a home office or storage in a largely residential setting) is insufficient—draws support from case law, particularly the Administrative Appeals Tribunal (AAT) decision in Rus and Commissioner of Taxation [2018] AATA 1854 (Rus v FCT).

In that case, a taxpayer sought access to the small business CGT concessions on the sale of a 16-hectare largely vacant rural property, where only a small portion (less than 10% by area) was used for business purposes: a home office, shed for storing tools/equipment/vehicles, and related supplies tied to a plastering and construction business operated through a controlled company. The balance of the land remained vacant or used residentially.

The AAT upheld the ATO's ruling that the property as a whole did not satisfy the active asset test, reasoning that the business activities were not sufficiently integral to the asset overall.

Minor or incidental use did not make the entire property an active asset, especially where the business was primarily conducted off-site. This precedent reinforces the ATO's strict approach in home-based business scenarios: the property is assessed holistically. This means that limited business use typically fails to tip the scales toward qualifying for the concessions.

Practical Examples

Let’s take a look at how the ATO approaches some common scenarios.

Minor home-based business : Harriet runs a hairdressing salon in a spare room, using 7% of the total floor space of the property and seeing clients eight hours a week. She claims deductions for occupancy expenses and gets a 93% main residence exemption. However, because her business use is minor, she cannot access small business CGT concessions. The 50% CGT discount can still apply.

Significant business use : Sue and Rob own a two-storey building, with the ground floor operating as a takeaway store (50% of the total floor area of the property) and the top floor as their private residence. The business has been running for decades with employees. Here, the property qualifies as an active asset, potentially giving them access to the small business CGT concessions for the portion of the capital gain that isn’t covered by the main residence exemption.

What This Means for You

A partial main residence exemption doesn’t necessarily mean you have access to the small business CGT concessions. Many homeowners mistakenly assume that business deductions or a home office automatically open the door. The ATO clearly doesn’t share this view.
Seek advice before changing the way your home will be used. Starting to operate a business from home can impact on deductions, CGT calculations and access to CGT concessions. We are here to help you make fully informed decisions.
Keep thorough records. Floor plans, hours of business use, and detailed deductions can help strengthen your position and may help in any future planning or audits.
Consult your accountant. If selling your home is on the horizon, professional advice is critical to assess any potential CGT exposure and explore concessions that might be available.

The Bottom Line

The ATO’s updated guidance suggests that many home-based business owners won’t have access to the small business CGT concessions on the sale of their home, but this always depends on the facts. Business owners need to plan proactively, rather than assume that tax relief will be available.

By understanding how your home’s business use is treated, you can make smarter decisions. For example, will the profits generated from a small business operated at home end up being wiped out by a higher CGT liability on sale of the property down the track?

After all, when it comes to CGT, every dollar you keep counts toward your next venture or your retirement nest egg.

A Wake-Up Call for Business Owners on Personal Tax Risks - Director Penalty Notices

Tue, 07 Apr 2026 03:45:20 GMT

The stakes are high, and now the Tax Ombudsman is getting involved.

Running a successful business is hard work—and sometimes, despite best intentions, tax obligations slip. If the business is being operated through a company structure, then the ATO can potentially issue a Director Penalty Notice (DPN), holding company directors personally liable for unpaid taxes.

In 2024–25, DPNs skyrocketed by 136%, reaching over 84,000 notices, affecting directors of around 64,000 companies. The stakes are high, and now the Tax Ombudsman is reviewing how the ATO issues and manages these notices—a development all directors should take seriously.

So, what exactly is a DPN? Put simply, if your company fails to pay certain taxes—like PAYG withholding, GST, or Superannuation Guarantee Charge (SGC)—the ATO can target directors personally. There are two types:

Non-lockdown DPNs: These apply if the company has lodged its activity statements or SGC statements but hasn’t made the relevant payments. In this case directors have 21 days to take appropriate action, such as arranging for payment of the debt, appointing an administrator, or entering liquidation. Acting promptly may allow the penalty to be remitted.
Lockdown DPNs: These apply if reporting deadlines are missed as well. In this scenario directors can’t avoid personal liability by putting the company into administration or liquidation.

The intent is to protect government revenue and employee entitlements—but for directors, the impact can be severe.

Why the Ombudsman is Involved

The review, announced in December 2025 by Tax Ombudsman Ruth Owen, responds to a surge in complaints, with DPNs topping the list. It will examine:

How effectively the ATO uses DPNs to recover debts ($54.2 billion in collectable amounts by mid-2025)
The fairness of selecting cases for enforcement
How directors are notified and communicated with
Treatment of vulnerable directors, including those coerced into roles or facing financial abuse

The review also aligns with broader government initiatives, including support for gender-based violence survivors and more empathetic engagement with business owners. While timelines are flexible due to resources, the review is part of the 2025–26 work plan, alongside assessments of ATO services for agents, First Nations engagement, and interest charge remissions.

Commercial Takeaways for Directors

DPNs are more than a compliance issue—they’re a real commercial risk. Ignoring a notice can disrupt personal finances, damage credit ratings, and even trigger bankruptcy. At the same time, the Ombudsman review could improve transparency and fairness, giving directors a clearer understanding of options if financial stress arises.

Practical steps to protect yourself now

Stay on top of obligations: make sure the company lodges returns and pays liabilities on time.
Lodge statements even if payment isn’t possible: Failing to lodge activity statements just makes things worse.
Consider using ATO payment plans if cash flow is tight but remember that this won’t necessarily enable directors to escape personal liability if a DPN has been issued already.
Monitor company cash flow and tax health closely, especially during economic dips.
Act fast if you receive a DPN: Consult immediately your accountant or lawyer to explore options because strict deadlines might apply.
Consider director insurance or business structuring to limit personal exposure—but compliance always comes first.

The Ombudsman’s review is a timely reminder: tax is a key business risk, not just paperwork. Being informed, proactive, and prepared can protect both your business and your personal assets.

If you’re concerned about DPN exposure, reach out for a tailored review—we can help you stay ahead of risk, so your business thrives rather than just survives.

Payday Super - What you need to know

Tue, 31 Mar 2026 01:25:56 GMT

Super on Payday is coming July 1st 2026. It's a fundamental change for employers and we want to help you be ready.

If you run a business, you already know the juggling act that comes with managing the payroll process — paying staff on time, managing cash flow, and staying compliant. From 1 July 2026, there’s a major change coming that will reshape how you handle superannuation contributions for staff.

It’s called Payday Super, and it became law on 4 November 2025. The new rules are designed to close Australia’s $6.25 billion unpaid super gap and make sure employees — especially casual and part-time workers — get their retirement savings when they get paid.

What’s Changing?

From 1 July 2026, you’ll need to pay superannuation guarantee (SG) contributions at the same time as wages, rather than weeks or months later. Employers will have seven business days from payday to ensure contributions hit employees’ super funds.

If payments are late, the Superannuation Guarantee Charge (SGC) will apply — that means paying the missed super plus an interest and administration penalty. Once SGC has been assessed, additional interest and penalties may apply if the SGC liability isn’t paid in full.

Unlike the existing system, SGC amounts will normally be deductible to employers, although penalties for late payment of SGC won’t be deductible.

On top of this, the ATO will retire the Small Business Superannuation Clearing House (SBSCH) platform from 1 July 2026 for all users and alternative options should be sought.

The change isn’t just about compliance — it’s about impact. The Government estimates the earlier payments could boost an average worker’s retirement balance by around $7,700.

Why It’s Good for Business

This reform might sound like extra admin, and it might take a bit of getting used to, but it can actually simplify your payroll process and strengthen your reputation as an employer.

Less admin – Paying super when you run payroll means no more quarterly payment crunches.
Fewer compliance risks – ATO data-matching will pick up issues faster, helping you avoid penalties before they snowball.
Stronger employee trust – Staff can see their super growing in real time, which might help with engagement and retention.
Smoother cash flow management – Paying smaller, regular amounts of super is often easier to manage than large quarterly sums.

The ATO will take a “risk-based” approach for the first year, focusing on education and helping businesses transition smoothly. If you pay on time, you’ll likely be flagged as low risk, meaning fewer compliance checks.

How to Get Ready — Practical Steps to Take Now

You’ve got time before the rules kick in, but the smart move is to prepare early. Here’s how:

Check your payroll software. Most modern systems (like Xero, MYOB, or QuickBooks) already support payday-aligned super. Confirm your setup and check if any updates or integrations are needed.
Map your pay cycles. Note how often you pay staff (weekly, fortnightly, monthly) and calculate the seven-day payment window for each.
Brief your team. Make sure whoever manages payroll understands the changes. The ATO has free online resources and webinars to help.
Plan your cash flow. Consider shifting from quarterly to more regular payments now to get used to the timing. Smaller, frequent super payments can reduce cash flow shocks.
Monitor and review. Set up a monthly check to ensure super contributions have cleared correctly. Keep an eye on ATO updates as final guidance is released.

If you outsource payroll, contact your provider soon — many are already updating systems for Payday Super and can help you make a seamless switch.

The Bottom Line

Payday Super isn’t just a compliance change — it’s an opportunity to make your payroll more efficient, your staff happier, and your business more compliant with less effort. With the laws now passed and just over 6 months to prepare, it’s time to get ahead of the curve.

If you’d like help reviewing your payroll setup or planning the transition, get in touch with our team — we can help you make sure your business is ready to go when Payday Super commences.

Keeping Your Self-Managed Super Fund Compliant

Sun, 22 Feb 2026 06:46:39 GMT

Self managed superannuation funds (SMSFs) can offer significant flexibility, allowing the members to make investments and enter arrangements that may not be available through retail or industry superannuation funds.

However, However, being an SMSF trustee does come with important responsibilities to ensure that all dealings comply with superannuation law.

Two critical areas to keep front of mind are:

· The sole purpose test, and

· The arm’s length requirements in both superannuation and taxation law.

The Sole Purpose Test

The sole purpose test requires that superannuation funds should be managed for the sole purpose of providing retirement benefits to fund members. While some SMSFs may have dealings with or/investments in related entities, these are subject to strict limits and when arrangements are entered into it is important that first and foremost SMSF trustees are considering the retirement benefits of the fund members rather than the needs of any external parties.

The example below illustrates how SMSF trustees should apply the sole purpose test when looking at making a related party investment.

Example: Investing in a Related Business?

Sachin and Deepthi have an SMSF which has a total balance of $1.2m. Their son Hardik commenced a business 3 years ago using a company structure. Hardik has approached his parents to invest $50,000 into his company via their SMSF.

Although Hardik is passionate about the business it has not grown as he would like, and Sachin and Deepthi are aware that the business has had cashflow issues and profits are not at a point where the business is growing or generating a profit.

Although the proposed investment amount is within the 5% in-house asset limit would Sachin and Deepthi invest member funds in an unrelated business knowing the business was in this same situation? That is, would they be placing their son’s interests ahead of the interests of the fund members?

Based on Sachin and Deepthi’s knowledge of the business, if the SMSF was to go ahead and make this investment they as trustees may have contravened the sole purpose test.

Arm’s Length Requirements

In addition to the sole purpose test there are superannuation and taxation law requirements that SMSF trustees always deal on arm’s length commercial terms. This is again particularly important when arrangements are with fund members and/or related parties.

Where arrangements are not at arm’s length, SMSF trustees can be liable for superannuation law penalties and in some cases fund income may be taxed at a higher rate.

Some common examples and key issues are discussed below.

Example: An SMSF Owns a Commercial Property Which is Leased to a Related Party Business

The rent should be on commercial terms and this needs to be evidenced by a rental appraisal from a professional such as a real estate agent when a lease is entered into.

The lease agreement should:

Be in writing;
Clearly cover who is responsible for particular outgoings and maintenance; and
Be prepared by a legal professional.

Example: A Member of the SMSF or a Related Party Completes Work on an SMSF Property

SMSF trustees should seek professional advice before commencing any work on SMSF properties where the work may be performed by a member or a related party.

All arrangements with related entities should be commercial, including:

If a related building company is used, the SMSF must pay market rates (same as the general public) and this should be supported by documentation to satisfy the fund auditor.
If members (who are also trustees) perform work personally, strict rules apply to whether they can be paid for their services.
All materials should be purchased directly by the SMSF, not by individual members.

Please contact us to discuss these rules further if you are considering entering into any transactions or projects involving SMSF-owned property and related parties.

Christmas eBook 2025

Wed, 03 Dec 2025 00:07:07 GMT

This Christmas, we've put together another festive eBook for you to enjoy! This year, we're focusing on embracing the holiday spirit while gearing up for the year ahead. It's the perfect time to unwind, reflect, and recharge—whether you're with family, friends, or taking some quiet time for yourself.

Inside, you'll find fresh ideas to liven up your holiday gatherings and meaningful ways to spend time together while creating more time, mental clarity, and financial freedom. And while we're all about those cozy Christmas treats, we've swapped out the usual gingerbread and fudge for a brand-new, mouthwatering holiday delight.

Happy holidays and here's to a joyful, restful season!

Cost-saving measures and how they drive profits

Tue, 11 Nov 2025 23:36:06 GMT

Cutting costs can be a key way to boost your profits. But how does managing your expenditure increase profitability? We outline the benefits of proactive cost-saving measures.

Question: “Can cost-saving measures in the business truly be a key driver of profits?”

Running a profitable business is one of your key goals as an owner. Without profits, there’s no capital to reinvest in the business, no funds to grow the company and no money for your own dividend payment at the end of the financial year.

So, is cost-saving the answer in these challenging economic times?

Answer: “Careful management of costs is a fundamental way to improve your profit margins and profitability as an enterprise”

Cost-saving measures will have a direct and measurable impact on your profits. This is usually achieved via two main mechanisms.

Firstly, reducing your variable costs (like raw materials or direct labour) increases your gross profit margin. This retains more revenue from each sale you make as a business.

Secondly, lowering fixed overheads (such as rent or software licenses) directly reduces the total expenses on your profit and loss statement, leading to a higher net profit. This immediate bottom-line improvement makes you a more financially healthy prospect to investors and lenders – which, in turn, can often make it easier to access funding and grow the business.

Want to know more about cost-saving measures?

Talk to the team about your profit goals and we’ll advise you on the keyways you can reduce your overheads and expenses to drive improved profits.

FEDERAL BUDGET ANALYSIS 2025-26

Wed, 26 Mar 2025 00:15:13 GMT

The Federal Budget has been released, and we've outlined the key elements that you need to know.

Treasury remains cautiously optimistic, stating that Australia is emerging “in better shape than almost any other advanced economy”

The 2025-26 Federal Budget brings a mix of tax relief, economic support, and regulatory changes aimed at bolstering growth and easing cost-of-living pressures. With a primary focus on personal income tax cuts, energy bill relief, and healthcare investments, the government has positioned this budget as one that prioritizes both individuals and businesses.

Many initiatives had been previously announced, but Treasurer Jim Chalmers has sweetened the deal with $17 billion in tax cuts . Healthcare also sees significant investment, with expanded bulk billing, more Urgent Care Clinics, and cheaper medicines .

However, increased funding for tax compliance and extended deficits signals a need for fiscal prudence. This guide provides a detailed breakdown of key measures, their implications, and what they mean for individuals, businesses, and the broader economy.

As always, if you would like to discuss how the Budget might impact your finances, don’t hesitate to contact our office on 07 4729 2222 and we will assist you with your questions.

Keeping your cashflow strong in tough times

Tue, 18 Feb 2025 22:40:59 GMT

Weathering the storm? Small businesses are particularly vulnerable in tough economic times.

We can help with strategies for healthy cash flow, so you can continue to thrive.

Small businesses are particularly vulnerable in tough economic times.

When sales are slow, there are still overheads and salaries that need to be sorted. Pre-planning and being proactive can help you weather tighter economic periods and allow you to continue to thrive.

Make sure you have a clear picture of your payroll, and any other planned expenses that will need to be accounted for.

If there’s even a possibility that there could be a shortfall, it’s essential to meet this head-on. Whether this means talking to your supplier or creditors to figure out an arrangement, or compromising on other business outgoings, you must make a plan to ensure that the business, or your staff, won’t suffer.

Minimise the stress of cash-flow

Invoice early

Send any invoices that you can, and in advance if possible. Perhaps consider whether you have any regular clients or customers that you could offer a retainer or similar deal to if they book services or make a purchase from you in advance.

Chase payment

Use this opportunity to chase up any outstanding payments. Strong communication and relationships matter - talk to clients and chase invoices.

Talk to suppliers

A little honesty can go a long way. Perhaps they can extend a line of credit for your payments to them. In most cases, a good supplier would rather offer a little flexibility to keep an ongoing business relationship.

Review Inventory

Can you find a cheaper supplier locally to avoid the shipping costs or discuss alternative products that allow you to reduce expenses?

Review your costs

It’s also a good idea to do a general review of expenses. Business costs can creep up, and it’s a great idea to make a time to check on your expenses regularly, no matter what your financial situation. Review all of your regular payments and subscriptions as well as upcoming costs. There may be travel, functions or purchases which you can decide on an alternative approach to.

Talk to the bank or tax department - If cashflow is tight, make sure you have conversations early, so you have everything in place to see you through.

We can help you implement strategies to protect your business for the long term and help you alleviate cashflow worries.

Babyboomer Wealth Being Targeted by ATO

Tue, 11 Feb 2025 02:30:43 GMT

“Succession planning, and the tax risks associated with it, is our number one focus in 2025. In recent years

we’ve observed an increase in reorganisations that appear to be connected to succession planning.”

ATO Private Wealth Deputy Commissioner Louise Clarke

“Succession planning, and the tax risks associated with it, is our number one focus in 2025. In recent years we’ve observed an increase in reorganisations that appear to be connected to succession planning.” ATO Private Wealth Deputy Commissioner Louise Clarke

The Australian Taxation Office (ATO) thinks that wealthy babyboomer Australians, particularly those with successful family-controlled businesses, are planning and structuring to dispose of assets in a way in which the tax outcomes might not be in accord with the ATO’s expectations.

If you are within the ATO’s Top 500 (Australia's largest and wealthiest private groups) or Next 5,000 (Australian residents who, together with their associates, control a net wealth of over $50 million) programs, expect the ATO to be paying close attention to how money flows through the entities you control.

A critical issue for many business owners is how to effectively (and compliantly) benefit from a successful business. In many cases, the owners have spent years building the business and the business has become not only a substantial asset, but a lucrative source of income either through salary and wages, dividends, or through the sale of shares or assets. Generally, under tax law, you can legitimately structure assets if there is a good reason to do so - like for asset protection, but if you tip across the line and the only viable reason for a structure is to reduce tax, then you risk the ATO taking a very close look at your operations or worse, denying any tax benefits under the general anti-avoidance rules in Part IVA of the tax rules, designed to combat “blatant, artificial or contrived” tax avoidance activities.

“We’re seeing that succession planning behaviour is primarily done by group heads who are approaching retirement. They typically own groups that family members are a part of, and wealth is transferred to the next generation to keep it within the family (via trusts and other means),” ATO Private Wealth Deputy Commissioner Louise Clarke said in a recent update.

Key areas of concern include:

Division 7A loans being settled. That is, a company has been paying money to a shareholder or an associate under a loan account. The ‘loan’ is quickly settled, often via a distribution, to remove it from the accounts.
Assets moving around the group (often the true value of an asset is not recognised raising the question, why the change if not to avoid capital gains tax on disposal or for some other benefit).
Family member interests being restructured.
Trust deeds being amended.
A restructure is cited as a reason for late lodgment.

Use of trusts

Trusts are also a key area of concern in 2025. Where a trust which has made a family trust election (FTE) or interposed entity election (IEE) makes a distribution outside of the family group, a 47% Family Trust Distribution Tax applies (tax at the top marginal tax rate plus Medicare).

In addition, the ATO has recently tightened its approach to trust tax returns for closely held trusts to ensure that trustee beneficiary (TB) statements are being completed. These are required when a trust makes a distribution of income or assets to the trustee of another trust, unless an exclusion applies.

For example, a trust which has made an FTE or IEE doesn’t need to make a TB statement. The TB statement will then be used to cross reference against what the beneficiary has declared in the tax return. Where a valid TB statement is not made on time this can trigger a hefty 47% Trustee Beneficiary Non-Disclosure Tax.

Reducing risk

Where you or your family have control over multiple entities, particularly where the value of these entities is significant, it is important that the connections between these - be it in Australia or overseas - are looked at closely to avoid any nasty surprises or lost opportunities.

Transferring control of your business may involve restructuring your business operations – changes to share structures, changes to the trustee and appointor of a trust, changes to partnership structures – or transferring assets to family members via the creation of trusts or other entities. All these events have legal and tax implications that need to be carefully considered.

Setting goals for you and your business for the year ahead

Mon, 13 Jan 2025 22:48:41 GMT

"Setting goals is the first step in turning the invisible into the visible" Tony Robbins

The new year is a new beginning. If you are a business owner, this is often the time of year when you reflect on where you are at and think about your business goals for the year ahead.

Setting goals is an essential part of personal and professional growth.

These could be lofty goals, or even setting out a plan to achieve some more mundane (but equally important) projects. Whether that is getting paid faster, reassessing expenses or bigger things like automation of processes and new markets. You may be looking to expand your business or create more time for yourself.

Having a clear vision and actionable goals can help you achieve your long-term plans. Here are some tips to get you started:

Envision your future

Reflect on what you truly want from your life and how your business can help you achieve those aspirations. Consider where you want your business to be in the next five or ten years. Having a clear endpoint in mind will make it easier to set goals that align with your vision.

Set measurable goals

Vague goals can be challenging to track and evaluate. Instead, focus on setting goals that are measurable. Think about the key metrics you already monitor in your business and how you would like to see them improve. For example, aim for a 3% increase in net profit year-on-year, a 2% reduction in expenses, or acquiring two new customers per month or grow your prospect database by 50%. If you set specific targets, you can easily track your progress and make adjustments as needed.

Develop a plan for each goal

Once you have identified your goals, it's crucial to create a plan of action to achieve them. This can be as simple as jotting down your ideas or engaging in a brainstorming session with your team or advisors. Having a well-defined plan in place will help you stay focused and motivated to follow through.

Monitor your progress regularly

It's essential to regularly check in on your progress towards your goals. Set reminders on your calendar or align your monitoring process with your invoicing cycle. By consistently evaluating your progress, you can identify any areas that need improvement or come up with fresh ideas to help you reach your targets.

Celebrate your achievements

C elebrating milestones along the way is crucial for maintaining motivation and momentum. Plan a reward for yourself when you achieve a significant goal. It could be treating the team to a morning tea, having a day out of the office together or planning an event for the end of the year. Choose something that brings you joy without breaking the bank.

Not sure how to get started?

We can help you with the strategy and identifying the information you’ll need to track, so you can monitor your progress.

Setting goals is just the first step. By implementing these tips and staying committed to your vision, you can turn your long-term plans into reality.

Five big business challenges for 2025

Mon, 06 Jan 2025 22:38:53 GMT

What are the five big challenges your business will face in 2025? We’ve summarised five of the most significant external factors that could affect your business.

‘Uncertainty’ has been the defining phrase for the first half of the 2020s. The markets are unstable, supply chains have been wobbly and finding talent has been difficult.

But as we head into 2025, and the second half of the decade, what are the major threats, opportunities and challenges that your business should focus on?

We’ve highlighted five of the big business challenges.

Five big business challenges for 2025 (and beyond)

However well-organised you are, there are elements in the external environment that you just can’t control. These external factors can have a serious impact on your ability to trade, grow and turn a profit. So, are you on the ball and ready to tackle them in 2025?

Let’s look at five of the external factors you should be focused on:

Climate change and sustainability

It’s an unpleasant truth, but the environment is in real trouble. As a business, there’s a growing need to demonstrate your environmental responsibility. This means developing a sustainability strategy, investing in green technologies and demonstrating your environmental commitments.

AI and technological disruption

Artificial intelligence (AI) and automation have changed the game in a fantastically short timeframe. Finding the value in this tech is crucial, as well as understanding its limitations. Getting your digital transformation underway will be vitally important in 2025, as will exploring how AI and automation can kickstart your productivity, boost your customer service processes and create a real competitive advantage for the company as a whole.

Skills shortage and transforming your workforce

The ongoing skills shortage, combined with the reality of an aging workforce and changing employment expectations, is a major issue. To overcome the talent challenge, you’re going to need to rethink your recruitment policy, your training and what you do to retain your key people. Things like flexible working arrangements, continuous professional development (CPD) and a great company culture are all ways to attract and maintain your top talent.

Inflation and an unstable economy

The global and local economies are not out of the woods yet. Forecasts may be looking more positive but there’s still the ever-present threat of recession, rising inflation and high interest rates. Getting granular with your financial forecasting will help, as will exploring your options for additional revenue streams, better cashflow management and ready access to business finance.

Regulatory compliance and reporting

Regulatory environments are getting increasingly complex, as governments wrestle with the need for tighter structures. Regulations around your environmental reporting, workplace relations and digital privacy are all likely to get tighter over the coming years. This means allocating time and resources to understanding and implementing the relevant compliance requirements.

Talk to us about overcoming the big challenges

There’s no magic wand that can change these macro environmental and economic factors. But awareness, detailed planning and good use of forecasting can be a major boost.

Come and talk to our team about your concerns for the year ahead. We’ll help you understand the major external factors and what you can do to make your business more resilient.

Christmas eBook 2024

Fri, 29 Nov 2024 02:46:50 GMT

Once again, we've compiled a short Christmas eBook for you to enjoy. This year's theme is transitioning into holiday mode and resetting for the New Year. We all deserve a break and let the holidays be the time to reflect and reset as we enjoy the company of family and friends.

You'll find tips to mix up the family gathering and find engaging ways to spend time together and achieve time, mind and financial freedom. Forget gingerbread and chocolate fudge - this year we've included a yummy, sweet Christmassy treat.

Christmas Parties and Fringe Benefits Tax

Fri, 22 Nov 2024 02:10:08 GMT

The end of year is fast approaching, meaning gifts and parties become part of your business. We’re here, as always, remind you of your tax obligations and to assist in your decision making.

The sun is shining, the end is near, and we begin to look forward to celebrating with friends, family and coworkers. As your advisor we wanted to make sure that you are fully aware that the end of year celebrations that you put on for your employees may hit you with unintended tax consequences. This message is to provide you with information so that you are fully informed.

Christmas Parties

These are some common scenarios relating to work Christmas parties, and their tax consequences:

Party held on business premises

Where the party is for current employees only, there is no fringe benefits tax (FBT) to pay. However, there is also no income tax deduction or GST credits claimable.

If the party includes current employees and their associates or some of your clients, it depends on how much the cost of the party is per head.

If your party costs less than $300 per head, then there is no FBT to pay, but also no income tax deduction or GST credits claimable.

If the party costs more than $300 per head, then the amount that is attributable to your employee’s associates (such as their spouse/partner) is subject to FBT. Any amount that is subject to FBT is claimable as a tax deduction, and you can claim GST credits as well. All the other amounts are not subject to FBT, but also are not deductible for income tax and no GST credits to claim.

Party held away from business premises

If the party costs less than $300 per head, then no FBT is payable. However, you also cannot claim a tax deduction and no GST credits are available to claim.

If the party costs more than $300 per head, then FBT is payable with respect to each employee that attends, as well as their spouse/partner. Again, if FBT is payable on an amount, then you can claim an income tax deduction as well as any GST credits.

If any clients of yours attend the party, and it costs more than $300 per head, then no FBT is payable, but also no income tax deduction or GST credits can be claimed.

However, if the party costs less than $300 per head, and at the party guests are provided a hamper (or other non-entertainment gift) worth less than $300, then the hamper is allowable as a tax deduction and GST credits can be claimed.

This is because the hamper is considered a gift which is separate from the party.

Christmas Gifts

If you provide your employees with a non-entertainment Christmas gift to thank them for their service, there is no FBT payable as long as that gift is valued at less than $300. Examples of non-entertainment gifts include a Christmas hamper, a bottle of wine or spirits, gift vouchers, flowers or other similar types of gifts.

If you're not sure where you stand with your holiday gifts and entertainment get in touch and we can help .

What makes or breaks Christmas?

Mon, 18 Nov 2024 06:38:28 GMT

The cost of living has eased over the past year but consumers are still under pressure. For business, planning is the key to managing Christmas volatility.

The countdown to Christmas is on and we’re in the midst of a headlong rush to maximise any remaining opportunities before the Christmas lull. Busy period or not, Christmas causes a period of dislocation and volatility for most businesses. The result is that it is not ‘business as usual’ and for many, volatility can create problems.

Added to this dislocation are cost of living pressures impacting consumers. Employee households are the hardest hit experiencing mortgage cost fuelled increases – spiked by the rollover of fixed rate loans to higher variable rate loans. While there has been some relief from energy subsidies and a reduction in fuel prices, underlying inflation remains persistently above the RBA’s target rate. Services inflation - the cost of your rent, insurance, your hairdresser, etc. – is sitting at around 5%.

With the Reserve Bank of Australia (RBA) Board keeping rates on hold for now and hinting that it will be some time yet before they are comfortable reducing rates, consumers want a reason to spend based on value for money. The irony is that if we all spend up big, which a recent Roy Morgan poll suggests we are, there is a risk this elevated spending will further delay rate cuts. But, while we might spend more, some of this increase is simply to compensate for inflation - we need to spend more to buy at the same level as previous years.

The discounting trend

Consumers expect a bargain and can generally find one. If you choose to discount stock (or the market forces you to), it’s essential to know your profit margins to determine what you can afford to give away. A business with a 20% gross profit margin that offers a 15% discount, needs a 300% increase in sales volume simply to maintain the same position. Worst case scenario is that a business trades below its breakeven point and generates losses.

Increased sales from discounting can be great if you know your numbers, have excess or older stock that needs to be moved, generates demand, or drives new customers to you.

Also think about how you create value; it does not always have to be a direct discount on a product. Packaging might be a better option than a straight discount where you can increase sales of multiple items, even better if you can combine higher demand with lower demand stock. Quantity discounts, value added are also options.

The Christmas cost hangover

Costs tend to go up over Christmas. More staff, lower efficiency, downtime from non-trading days, increased promotional costs, all mean that the cost of doing business increases. It’s great to get into the Christmas spirit as long as you don’t end up with a New Year hangover. Cost control is important.

Many businesses also bring in casual staff. It’s essential that you pay staff at the correct rates and meet your Superannuation Guarantee obligations.

Check the pay calculator to make sure you have it right.

New Year cashflow crunch

The New Year often leads into a quieter trading and tighter cashflow period. The March quarter is often the toughest cashflow quarter of the year. You will need a cash buffer. Don’t over commit yourself in the run up to the end of the year and start the new Year with a problem.

Take a lesson from Scrooge

If you work with account customers, start your debtor follow up early. If your customers are under cashflow pressure, the Christmas period will only exacerbate it. The creditors that chase debt hard and early will get paid first. Don’t be the last supplier on the list; the bucket might be empty by then.

Christmas is a great time of year. Just don’t get caught up in the rush and forget about the basics.

Trading stock headaches

If business activity spikes over the Christmas period and you sell goods, then there is a temptation to increase stock levels. That makes sense as long as you don’t go too far. Too much stock post the Christmas period and you will either be carrying product that is out of season, or you will have too much cash tied up in trading stock. Try to work with suppliers that can supply on short notice.

Managing your trading stock is not just about managing cost. If your customers are in your store but can’t find what they need, have an online option available in store to take the sale.

If you want like some business coaching support to discuss with one of our team how you can best place your business over the next three months, please reach out and we would be happy to assist you.

Payday super: What you need to know

Thu, 17 Oct 2024 06:34:23 GMT

‘Payday super’ will overhaul the way in which superannuation guarantee is administered.

Let's look at the first details and the impending obligations on employers.

From 1 July 2026, employers will be obligated to pay superannuation guarantee (SG) on behalf of their employees on the same day as salary and wages instead of the current quarterly payment sequence.

The rationale is that speeding up the payment sequence for SG will not only help reduce the estimated $3.4billion gap between what is owed to employees and what has been paid, but will also improve outcomes for employees – the Government estimates that a 25‑year‑old median income earner currently receiving super quarterly and wages fortnightly could be around 1.5% better off at retirement.

Announced in the 2023-24 Federal Budget, payday super is not yet law. However, given the structural changes required to administer the new law, Treasury has released a fact sheet to help employers better understand the implications of the impending change.

How will payday super work?

Under payday super, the due date for SG payments will be seven days from when an ordinary times earning*payment is made.

That is, employers have seven days from an employee’s payday for their SG to be received by their super fund. The only exceptions are for new employees whose due date will be after their first two weeksof employment, and for small and irregular payments that occur outside the employee’s ordinary pay cycle.

Over the last few years, employers have moved to single touch payroll (STP) reporting for employee salary and wages. It is expected that payday super will fold into the existing electronic systems and some changes will be made to STP to collect ordinary times earning data.

The impact for some employers however will not be the compliance cost of administering the regular SG payments, but the cashflow. Employers will not be holding what will be 12% of their payroll until 28 days after the end of the quarter, but instead paying this amount out on the employee’s payday. The upside is that where an employer has either fallen behind or not paying SG, particularly when the business is insolvent, the damage is contained.

What happens if SG is paid late?

The penalties for underpaying or not paying SG are deliberately punitive and this approach will continue under payday super.

Currently, a super guarantee charge (SGC) applies to late SG payments - comprised of the employee’s superannuation guarantee shortfall amount, interest of 10% per annum from the start of the quarter the SG payment was due, and an administration fee of $20 for each employee with a shortfall per quarter. And, unlike normal superannuation guarantee contributions, SGC amounts are not deductible to the employer, even when the liability has been satisfied.

Under payday super, employees are fully compensated for delays in receiving SG amounts and larger penalties apply for employers that repeatedly fail to comply with their obligations. If you make a payment late, the SGC is made up of:

Outstanding SG shortfall - Calculated based on OTE, rather than total salaries and wages as it is currently.
Notional earnings - Daily interest on the shortfall amount from the day after the due date, calculated at the general interest charge rate on a compounding basis.
Administrative uplift - An additional charge levied to reflect the cost of enforcement and calculated as an uplift of the SG shortfall component of up to 60%, subject to reduction where employers voluntarily disclose their failure to comply.
General interest charge - Interest will accrue on any outstanding SG shortfall and notional earnings amounts, as well as any outstanding administrative uplift penalty.
SG charge penalty - Additional penalties of up to 50% of the outstanding unpaid SG charge, that apply where amounts are not paid in full within 28 days of the notice of assessment.

As you can see, if the proposed SGC becomes law, late SG payments can spiral out of control quickly. This will be a particular issue for employers that pay employees less than their entitlements over time, or have misclassified employees as contractors and have an outstanding SG obligation.

But, unlike the current SGC, the new SGC will be tax deductible (excluding penalties and interest that accrue if the SG charge amount is not paid within 28 days).

Payday super is not yet law. We will keep you up to date as change occurs and work with you to get it right once the details have been confirmed.

*Ordinary time earnings are the gross amount your employees earn for their ordinary hours of work including over-award payments, commissions, shift loading, annual leave loading and some allowances and bonuses.

Keeping your tax and expenses in check when you are self-employed

Mon, 30 Sep 2024 00:20:34 GMT

Working for yourself or running your own business? Setup robust systems for expenses & tax requirements so you can focus on your important tasks. We can help take the headaches out of your business accounting.

Contracting or freelancing requires you to wear a lot of hats. Relationship-building, keeping track of your time, marketing your skills and actually doing the work. But one of your priorities should also be establishing how you handle your money and setting the groundwork for good habits.

Understand your deductions

Before you start, it’s essential to understand what expenses you can and can’t claim. This means you’ll keep the right receipts and track the right expenses. Figuring out what’s what can be a little confusing as everyone has a different working set up and what you can claim for can vary between industries and occupations. Talk to us about your business expenses from the beginning. This will also help you plan for any bigger work-related purchases that you may need to make.

Get a system sorted

You’ll thank yourself later for setting up a good system now. Getting your expenses recorded and your invoices collated means you’ll be able to spend more time doing the important stuff in your business. It’s not just about saving time - keeping on top of your cash means you’re more likely to succeed. Do your research and choose a system that will work for you. Consider choosing a software platform which allows you to record your time spent on projects, it’ll make sending those invoices that much easier!

Stash that cash

When you’re running your own business or working for yourself, it’s important to always keep your tax obligations top of mind. Make sure you have money set aside in a separate account or consider entering into voluntary instalments.

One way to budget and keep on top of your business tax is to pay yourself a wage. Keeping your accounts separate also prevents you from thinking of all your business income as spending cash! Remember to also put aside a little extra to cover your holidays and any quiet periods.

We can help make this process easier, so talk to us about setting up systems that take the headaches out of your finances.

Key numbers to focus on in your business

Mon, 16 Sep 2024 01:17:45 GMT

As a business owner, it’s never been more important to have a good grasp on your finances, so let us share with you the key reports to focus on in your business that will enable you to track performance, take action and position your company for growth.

For many businesses, priorities have changed, customer behaviours have mutated, and revenue streams have had to evolve and pivot in order to maintain a profitable business model.

To track, monitor and drive your financial performance in this updated business environment, it’s increasingly important to have a handle on your key financial reports and metrics.

Getting to grips with your financial reports

Whereas in the past, extra cash in the business may have been seen as a surplus that needed to be spent on something, recent years have shown us that having reserves is vitally important for the survival and long-term health of your business.

To truly be in control of this cash, it’s vital that you can dip into your accounts, financial reports and dashboards and ‘see the genuine story’ behind your financial position.

Here are the key reports to focus on:

Budget

Your budget is the financial plan that's tied to your strategic plan. In essence, the budget is your approximation of the money it will take to attain your key strategic goals, and the revenue (income) and profits you hope to make during this period. It’s a benchmark you can use to measure your actuals (historic numbers) against, allowing you to see the variances, gaps and missed targets over a given period.

Cashflow Statement

A cashflow statement shows the flow of money into and out of your business. Understanding these cash inflows and outflows in detail allows you to manage this ongoing process, allowing you to aim for a ‘positive cashflow position’ – where inflows outweigh outflows. In this ideal positive scenario, you have enough liquid cash in the business to cover your costs, fund your operations and generate a profit.

Cashflow Forecast

Forecasting allows you to take your historic cash numbers and project them forward in time. As such, you can see where the cashflow holes may appear weeks, or even months, in advance – and that gives you time to take action, whether it’s increasing your income stream, reducing your underlying costs, chasing up unpaid invoices (aged debt) or going to lenders for additional funding.

Balance Sheet

The balance sheet shows you the company’s assets, liabilities and equity at a given point in time. In a nutshell, it’s a snapshot of what the business owns (your assets), what you owe to other people (your liabilities) and what money and profits you currently have invested in the company (your equity). The balance sheet is useful for seeing what stock and equipment the business owns, how much debt (liabilities) you’ve worked up and what the company is actually worth – all incredibly useful information to have at your fingertips when making big business decisions.

Profit & Loss

Your profit and loss report (P&L) gives you an overview of the company’s revenues, costs and expenses over a given historic period of time. While the balance sheet is a snapshot, your P&L is more like a moving video. It shows you how your finances are progressing by demonstrating how revenue is coming in and costs/expenses are going out (rather than cash coming in and going out, as you see in your cashflow statement and cashflow forecasts).

If you would like to have a more thorough understanding of these reports, talk to us about accounting and financial reporting for your business.

We’ll run you through the key reports in your accounting software, and can help you track performance, take action and position your company for growth.

Take care of yourself, not just your business

Wed, 14 Aug 2024 01:18:42 GMT

53% of business owners suffer from stress and anxiety, but it doesn’t have to be that way.

We can help you talk through your worries and focus on your personal well-being.

Being a business owner can be stressful. When the buck stops with you, it can be easy to let the pressure mount up and to discount your own wellbeing.

But taking care of your own mental health is equally as important as taking care of the business – research from MYOB showed that 53% of business owners suffer from stress and anxiety relating to the running of their business So, what can you do to take care of your own mental health and work mindfulness into your usual life routines?

Ways to nurture your wellbeing as an entrepreneur

Looking after your mental health is as important as looking after your balance sheet. That’s the reality. So, having an improved focus on rest, wellbeing and talking about your struggles is a big part of moving towards becoming a better business leader.

For example:

Don't overwork yourself

It's tempting to work every hour that's available, in an attempt to meet your goals. But working yourself into the ground is, ultimately, a destructive thing to do. If you're tired and burnt out then you're in no position to lead the company. Try to stick to set working hours and avoid working 60-hour weeks wherever possible. Sleep, rest and downtime are vital.

Schedule time for non-work-related activities

Make sure you have time blocked out for things that aren't work. That might be a walk in the countryside, time with your kids, or a game of tennis. The aim is to take yourself away from the stresses of the business and to give yourself a broader life outside the company. It's a chance to have fun, to relax or to be someone who isn't just 'the boss'.

Take up an activity that promotes wellbeing

There are plenty of pastimes that can help you bring down your anxiety levels and bring you to a calmer place. Yoga is a good way to stay fit, but also an excellent form of relaxation. Equally, finding time for meditation helps you to empty your mind of business concerns and allow yourself to become more grounded and calm. Even something as traditional as a fishing trip could help you to chill out and relax, away from a screen.

Talk about your worries, concerns and anxiety

If business-related stress is building up, the worst thing you can do is keep it all bottled up. It's beneficial to open up and talk about this anxiety. This could be with a partner, a fellow entrepreneur, your accountant or even a professional counselor. Be transparent about your state of mind and you’ll find people are more than willing to listen, understand and offer some support.

Talk to us about your business worries. As your accountant and adviser, we’re in the perfect position to help you open up about your business worries. We know your business and your sector inside out, and we know the common threats, challenges and goals that will be on your mind.

Come and talk to us about your business worries and let us take some of the weight off your shoulders. A chat can be the start of a whole new way of thinking about your own wellbeing.

CONTACT OUR TEAM

Tax planning and strategies for individuals

Wed, 24 Jul 2024 23:56:51 GMT

Get the most our of your tax in 2025 by planning ahead

We have prepared this document to provide you with some tax planning suggest to consider throughout the year ahead. Taking advantage of some of these options may put you in a better taxation position when it comes to your 2025 return.

If you need to know more about the items covered in this article, please contact our office for more information.

Personal tax cuts apply from 1 July 2024

Beginning on 1 July 2024, there are large tax cuts available for the majority of individual taxpayers in Australia. As the tax cuts apply to the next income year, the best strategy from a tax point of view is to reduce your taxable income in this tax year, when the tax rate is higher. However, the effects on liquidity must be kept in mind. The following options are available to you to reduce your income this year.

Bringing forward allowable deductions

By bringing forward allowable deductions to 2024–25, you benefit from reducing your tax bill at a higher rate per dollar.

Deductible superannuation contributions

If you are under the age of 75, you are able to salary sacrifice tax-deductible contributions from your employer up to the tax-deductible cap has increased to $30,000.

Making additional deductible contributions

An opportunity is available to you if you have less than $500,000 in super and you want to claim a tax deduction higher than the cap of $30,000.

However, a specific limit will apply to you based on deductible super contributions that have gone into your account over the past 5 years. The additional deductible contributions may give you a deduction at this year’s higher marginal tax rate.

Delaying capital gains to next year

As the marginal tax rate is higher this year, where possible delaying capital gains tax events to the 2024–25 income year will improve the overall tax position. You will, however, need to be conscious of any unused capital losses that may apply to gains anyway, regardless of when the gains are made.

Also, you need to be aware that the Australian Taxation Office has current data matching programs to capture:

• any passenger movements away from Australia, which may be a CGT event if you become a non-resident

• cryptocurrency transactions with various registries, and

• changes to residential investment property loans, which may pick up any loans finalised due to a sale.

Home office expenses

If you are working from home, there are only 2 ways to claim deductions for working from home expenses:

• fixed rate method – 67 cents per hour, or

• actual cost method

It may be prudent to complete calculations to compare notional deductions with actual deductions. You do not require a dedicated area for the home office to be eligible to use the fixed rate method.

To make a working from home claim, evidence of total number of hours worked from home for the entire year must be maintained.

If you are expecting a tax refund, lodge early and electronically.

If you need to know more about the items discussed here, please contact our office for more information.

Business Tips: Budgeting for Success

Mon, 24 Jun 2024 23:41:20 GMT

The importance of good financial management

When you’re operating and managing a small business, you have a finite pot of cash to work with. Because of this, it’s incredibly important to manage your cash well and to have clear budgets and spending limits for every area of your business operations.

Let’s take a look at why budgeting is such a vital part of your financial management, and what you can do to keep your company on budget and in a positive cashflow position.

4 ways to stay in control of your business budgeting

It’s impossible to run a successful business without having a tight rein over your expenditure.

Sales may be bringing in healthy revenues, but the income and profits you’re generating can quickly be eaten up if you’re overspending on operational costs, marketing campaigns, staff payroll or investments in new hardware and software.

We’ve highlighted four ways to put good, solid budgeting at the heart of your financial process:

1. Embrace the power of budgeting

A well-crafted business budget gives you the foundations to become a financially healthy and successful business that’s in control of its spending.

You don’t have to use a complicated budgeting app; a simple breakdown of income and expenses in an Excel spreadsheet can be a great starting point.

To get started:

- Track your projected sales, so you understand your future revenue numbers and have a solid projection for your income over the course of the year, or budget period.

- Calculate your costs, including fixed costs like rent and utilities, and variable costs like inventory and marketing. This gives you an understanding of your total expenditure. Don't forget to factor in business taxes and contingency funds to cover emergencies.

- Set clear budgets for the coming period’s spending, based on the total income you’ve predicted and the total fixed and variable costs you’ve estimated. Always leave some wriggle room to account for inflation and changing costs.

- Regularly review your budget, so the document is always evolving. Reviewing and updating your budget helps you stay on track, identify areas for cost-cutting, and make informed decisions about resource allocation. Remember, a budget is a living document, so adapt it as your business evolves.

2. Track your budgets, income and spending

Setting the budget isn’t the end of the process. It’s important to track all income and expenses and to update your budget in line with the current health of your business finances.

Using the latest cloud accounting software can work wonders. These cloud tools help you record your incoming and outgoing transactions in real time, so you can work with the most up-to-date numbers and financial data when reviewing and reworking your budget.

To improve your tracking:

- Use codes to categorise your expenses – the [Chart of Accounts] (https://www.investopedia.com/terms/c/chart-accounts.asp) in your accounting software makes it easy to categorise each expense as it’s incurred. It’s then easy as ABC to review your financial reports and to analyse your spending patterns.

- Review your spending – check your spending against each code and see where budgets are on track, or where there’s overspending that’s threatening your budget. Are there subscriptions you can cancel? Or could you renegotiate rates with your vendors?

- Plan for seasonal trends and patterns – tracking your income and expenditure helps you to spot, predict and plan for the financial ups and down you’ll experience over the year. The more you understand your cashflow, the better equipped you are to stay on budget, make solid strategic financial decisions and avoid unexpected shortfalls.

3. Separate your personal and business finances

It’s tempting to think of the money in the business as ‘your money’. But it’s crucial to have a clear divide between the company’s money and your own money, as an owner and director.

Here’s why that separation is important:

- Open a dedicated business bank account – all the cash you generate, supplier bills you pay and transactions you carry out will be logged through this account. This keeps your own cash and your business cash entirely separate.

- Track your business expenses – by having separate business and personal bank accounts, you can easily track your business expenses and manage your budgets. There’s no confusion around personal expenses that could potentially muddy the water.

- Consider getting a business debit card – a business card helps you to pay for business-related costs directly from your business bank account. This helps you to track your expenses and keep a closer eye on your budget.

4. Forecast for the future: don't just track the past

Basing your budget and financial strategy on historic data is a great foundation stone. But you can also use this data to project the data forwards in time and create useful [forecasts] (https://cfoshare.org/blog/the-value-of-financial-forecasts-for-business-planning/).

For example, you can:

- Get clear cashflow forecasts – based on your historical sales trends and projected expenses, you can quickly estimate your future cashflow. Having this view of your future cash position is extremely helpful when setting out your budget for the period.

- Plan out your budgets and cash management – with forecasts at your fingertips, you can plan for seasonal fluctuations, identify potential funding needs and make informed decisions about the short, medium and long-term strategy of the business.

- Be ahead of the curve – with solid budgets, forecasts and a great overview of your finances, you can be more in control as a business owner. Whatever the market throws at you, you’re better prepared, agile and ready to respond.

Talk to us about getting on top of your budgeting

Financial management can be overwhelming, especially if you’re new to running a business. But don't be afraid to seek help from a qualified accounting professional.

As your adviser, we can:

- Streamline your record-keeping, bookkeeping and financial reporting.

- Give guidance on budgeting, forecasting and financial management.

- Ensure your cashflow and budgets are always looking positive and healthy.

Let’s sit down and talk about getting your budgets and financial management in order.

Get in touch now to talk about budgeting

What does the Federal Budget mean for me?

Wed, 15 May 2024 06:33:40 GMT

It’s a Budget for the here and now - says Treasurer Jim Chalmers

What does the Federal Budget mean for me?

Treasurer Jim Chalmers has high hopes that his 2024 Federal Budget will rein in inflation earlier than expected, ease cost-of-living pressures and build a stronger economy in the future.

It’s a Budget for the here and now, he says, but also for the decades to come.

More than $8.4 billion has been allocated to quick-fix cost-of-living adjustments along with the previously announced Stage 3 tax cuts and the waiving of $3 billion in student debt.

With a federal election due next year, the Federal Government has announced spending of almost $83 billion on housing, infrastructure, health and a Future Made in Australia project to build a more resilient economy for the future.

The big picture

While Treasury is forecasting a $9.3 billion surplus for 2023-24 after the previous year’s $22.1 billion surplus, the books will look considerably different the following year with a $28.3 billion forecast deficit expected.

That’s against a backdrop of an uncertain global economic outlook with wars in the Middle East and Ukraine as well as slowing growth in China and elsewhere.

“Most advanced economies recorded subdued outcomes during 2023, with around a third of OECD nations recording a technical recession,” notes Treasury in the Budget papers.

“Global inflation has moderated but remains too high, and there are risks it will persist. Tackling inflation remains the primary focus but, as inflationary pressures abate and labour markets soften, the global policy focus will increasingly shift to managing risks to growth.”

There are some bright spots for Australia though.

Treasury is forecasting inflation could return to the target rate of between 2 and 3 per cent earlier, perhaps by the end of the year, the Treasurer says.

Jobs growth is stronger here than in any major advanced economy and real wages are growing again for the first time in almost three years.

Cost of living

This year’s Budget aims to help out those struggling to pay the bills with a range of tax cuts and subsidies.

Every taxpayer will pay less tax as part of the Stage 3 tax cuts announced earlier this year. The average tax cut is $36 a week or an annual $1,888.

More than 10 million households will receive a total rebate of $300 on their electricity bills and eligible businesses will receive $325.

The government says its Energy Bill Relief Plan has kept electricity price increases to two per cent through the year to the March quarter this year. Without it, prices would have increased by 14.9 per cent.

While it won’t provide immediate relief, the government has grocery prices in its sights. It’s taking steps to make a Food and Grocery Code mandatory with penalties up to 10 per cent of turnover for major breaches. It also directed the Australian Competition and Consumer Commission to investigate pricing and competition in the supermarket sector.

Commonwealth Rent Assistance has been increased by a further 10 per cent, there is a $138 million boost to emergency relief funding and financial support services, and the freeze on the deeming rate for income support recipients has been extended. The deeming rates are used by Centrelink to predict earnings from super and investments over the 12 months ahead. The lower deeming rate will remain at 0.25 per cent and the upper rate will remain at 2.25 per cent until 30 June 2025.

Anyone with a student debt will welcome a change to the indexation rate for the Higher Education Loan Program (HELP). The government says it will cut $3 billion in student debt for more than three million Australians.

Health

Medicines can be a big cost for many people and a new $3 billion agreement with community pharmacies is expected to help. The government is expecting the deal to deliver cheaper medicines and better patient health.

There will be a one-year freeze on the maximum patient co-payment and a five-year freeze for pensioners and other concession cardholders. This change means that no pensioner or concession card holder will pay more than $7.70 (plus any applicable manufacturer premiums) for up to five years.

Almost half of Australians live with a chronic health condition and the Budget provides more than $141 million for research and services for conditions including bowel and skin cancer, diabetes and dementia.

The government is also providing an extra $411 million to the Medical Research Fund to continue research for low-survival cancers.

And, in a strengthened mental health package, the government has committed more than $888 million over eight years to improve access to services and support.

Aged care

Providing further support for the recommendations of the Royal Commission into Aged Care Quality and Safety, the Budget allocates $2.2 million to develop a new Aged Care Act. The Act is expected to establish a new Support at Home program and improve the standard of in-home aged care.

An extra 24,100 Home Care Packages will also be made available to reduce waiting times and wait times for the My Aged Care Contact Centre will be reduced.

Meanwhile, the government has allocated funding to beef up the regulatory capabilities of the Aged Care Quality and Safety Commission.

To support fair wages for care workers, the government has committed to fund a further increase in the award wage for direct and indirect aged care workers. The government is also providing $87.2 million for initiatives to attract nurses and other workers into aged care.

Housing

With housing affordability affecting millions of Australians, the government has allocated $6.2 billion in the Budget on a range of initiatives.

There’s a further $1 billion for states and territories to deliver new housing, more student accommodation, an increase in funds for homelessness services and more concessional loans for community housing providers.

The Build to Rent market will receive a boost with a plan to allow foreign investors to purchase developments with a lower foreign investment fee.

The government is also supporting 20,000 new fee-free TAFE places for courses in the construction sector.

Infrastructure

The government aims to stimulate the economies of the states and territories with funding for a number of major infrastructure projects.There’s $21.6 billion for Queensland over 10 years for projects including the Sunshine Coast rail line and Bruce Highway works; $20.8 billion over 10 years for NSW for various road upgrades; $19.2 million in Victoria for the North East Link and other projects.

Attracting investment

Aiming to shore up Australia’s economic fortunes, the government has created a comprehensive package of projects to lift our manufacturing industry and position us to take advantage of net zero.

The Treasurer says the world’s commitment to net zero by 2050 will demand “the biggest transformation in the global economy since the industrial revolution”.

He believes Australia’s energy, resources, regions, researchers and workers can all play a part in creating a “renewable energy superpower”.

To that end, the Budget includes $13.7 billion in production tax incentives for green hydrogen and processed critical minerals, $1.7 billion to develop new industries using green metals and low carbon fuels and $566 million to map the geological potential of the entire country to get a better picture of our critical minerals and groundwater.

There will be major work on attracting new investment by reforming investment settings and regulatory processes.

The government says it will make it simpler to invest in Australia to entice more capital both from overseas and at home. It will work with business, governments, unions, communities and other experts during 2024 to come up with the best approach.

Supporting women and families

With escalating rates of family violence and an alarming increase in the incidence of violence against women, the Budget includes funding to support a range of programs.

More than $925 million will be spent over five years to provide support for victim survivors leaving a violent intimate partner relationship and a program to strengthen accountability for systemic gender-based violence in higher education.

The government will invest more than $56 million over four years to improve access to sexual and reproductive healthcare for women including training GPs to provide better menopause care.

A newly released national gender equality strategy will drive government action on women’s safety, sharing, economic equality, health, leadership and representation.

In a move to take the pressure off parents, superannuation will be paid on government funded Paid Parental Leave (PPL) for parents of babies born or adopted on or after 1 July 2025.

Looking ahead

The stimulus provided by this Budget will bring some relief in the short term, but our economy will be relying on the big ideas, such as the Future Made in Australia project, to provide the resilience we need in an uncertain global economy.

Treasury is forecasting slow global growth and only 1.75 per cent growth in Australia this financial year and 2 per cent next year along with a significant deficit.

But the Treasurer is confident he has delivered “an inflation-fighting and future-making Budget” with “responsible relief that eases pressure on people and directly reduces inflation”.

It’s one that will “forge a new economy and a new generation of prosperity”, he says.

If you have any questions about the Budget measures announced, please don’t hesitate to contact us.

Information in this article has been sourced from the  Budget Speech 2024-25  and  Federal Budget Support documents.  
It is important to note that the policies outlined in this article are yet to be passed as legislation and therefore may be subject to change.  

Do you need better access to funding

Tue, 22 Nov 2022 11:53:00 GMT

Do you need better access to funding?

Cash is the fuel that powers your business. Does your business have enough capital in your company to actually fund your short, medium and longer-term goals?

Whatever your business aims are, you are likely to need some additional finance at some point along the business journey. But, how does this extra cash then benefit the growth, scaling up and (eventually) the end sale value of the business?

The value of extra capital in the business

Third-party business finance comes in many forms. It might mean talking to your bank about agreeing an overdraft extension, or taking out a business loan from a business funding provider. It may even mean looking at specialist finance products, such as asset finance (for buying new equipment), invoice financing (for quickly raising cash from your outstanding invoices) or even government-backed and tax incentives for enterprising businesses.

Whatever finance route you take, it is important to understand the impact that this extra capital will have for your business, and for your longer-term success.

Access to additional funding:

Talk to us about creating a tailored funding strategy

Whatever the next stage is for your business, the journey will be easier with a robust, tailored funding strategy behind your business plan.

As experienced business advisers and accountants, we have a growing network of funding providers and finance specialists who we work with. If you need extra cash, we can help you create a meaningful funding strategy and access the best funding providers.

Tax Tips for Individuals

Mon, 21 Nov 2022 11:53:00 GMT

Tax Tips for Individuals

Although your tax return is not due for a few months yet, the end of the financial year is nearing...have you captured all your work-related deductible expenses to make the most of your 2020 tax return?

Income

The Australia Taxation Office (ATO) automatically receives information from your employers about salary and wages that you have been paid for the financial year. You need to declare all income from other sources on your tax return as well.

Wages and salaries from employment

Even if you have only earned a small amount from one of these sources, it still needs to be declared on the tax return. Gather all your records for anything you have earned apart from salary and wage payments from employers.

You will need:

Tax Deductions

Employees are entitled to claim work-related expenses as a tax deduction. To claim a tax deduction, you must have spent the money out of your own funds and not have been reimbursed by your employer. The expenses must relate to your earnings as an employee. Make sure you have invoices and receipts as proof of payment for any work-related expenses.

Expenses you may be able to claim

Occupation and Industry Specific Guidelines

The ATO recognises that some occupations and industries have specific requirements that employees need to pay for. There are handy ATO facts sheets for many industries, including hairdressers, teachers, performing artists, hospitality workers, lawyers, medical professionals and more.

These guides are a great starting point if you are not sure what you can claim, but we can give you information tailored to your situation when you do your tax return.

Superannuation

If you have made personal superannuation contributions separate to your employer's superannuation guarantee contributions, you may be able to claim this as a tax deduction. You will need to provide a notice of intent to claim form to your super fund and receive acknowledgement from the fund before doing your tax return.

Book a time with us now to prepare for you tax return and we will make sure you maximise your allowable tax deductions this year.

The importance of having a business coach

Sun, 20 Nov 2022 11:53:00 GMT

The importance of having a business coach

It can be lonely at the top when you are running your own business. As the owner manager, the buck stops with you and that can result in all the pressure of financial management, people management, strategy and business performance ending up on your shoulders.

To ease this pressure, it is helpful to have a business coach. A coach can look at your business objectively as an outsider, will act as a professional shoulder to lean on, and can help you to focus on and enhance your business ideas, strategy and longer-term tactics as an owner.

What a business coach can bring to the table

If you want to get the best from your business, you need to get the best from yourself, as the owner. A business coach helps you to work on your own progression, but by doing so also partners with you to improve the future path of your business ventures.

For example, having a good adviser and coach:

Talk to us about business coaching

If you want to reach your true potential as an entrepreneur and business owner, we'd strongly advise working with a trusted business coach.

Business coaching help you review, analyse and enhance your business strategy, while mentoring programme you as a business entrepreneur.

Who are your competitors and what do you know about them

Sat, 19 Nov 2022 11:53:00 GMT

Who are your competitors?

And what do you know about them?

Whatever your sector, niche or marketplace, there is almost certainly going to be other competitors in that space - but do you know who they are and what threat they pose?

Are you the only provider of your specialism, or are you one of many companies that are all vying for the same customers? Knowing who those companies are, how they compare and what their competitive advantages may be is a vital piece of business intelligence for you.

So, how do you start this process of identifying your competitors and benchmarking your offering against the nearest market competitors? The answer is to do your homework...

Researching you competitors

To begin with it is worth understanding the difference between your direct competitors and those companies which are indirect competitors. Knowing who your direct and indirect competitors isn't always easy, but defining the differences is quite straightforward:

The key point here is to not limit your thinking purely to businesses that do exactly what you do. Think wider than the products that provide the same features and benefits. For example, a motorbike manufacturer competes not just against other makers of petrol motorbikes but against makers of electric bikes, pedal bikes and small car manufacturers - all of which offer a small, handy form or personal transportation.

To understand who your competitors are:

The 10 ways to lift your margin

Fri, 18 Nov 2022 11:53:00 GMT

The 10 ways to lift your margin

Improvements can always be made at the margin. Small tweaks to your processes or systems can make a massive difference to the end result. It's the same with your business margin - a 1% increase in your gross margin on $500,000 of sales is an extra $5,000 on your bottom line.

The best part about improving your margin is that you can increase your profit without needing to lift your sales.

Here are 10 strategies to lift your margin:

1. Negotiate better prices with your suppliers.
As they say, 'the squeaky wheel gets the oil', so if you don't ask, you won't get.

2. Update your pricing model.
Make sure you are using the most recent supplier prices and that all costs are included in your price.

3. Back cost jobs regularly.
Review exactly what you spent on 2-3 jobs each month and compare the actual cost to what you anticipated the cost would be when you quoted the job.

4. Get rid of slow-moving items or work that has a poor return.
Selling old stock at cost will drop your margin, but if you replace those items or jobs with higher-margin items, you will achieve a higher return in the long run.

5. Set budgets and targets with your team.
Give your team something to aim for. Celebrate success when the targets are achieved.

6. Report your results on a cloud-based, real-time system.
You can't manage what you don't measure! Regularly monitor your most important Key Performance Indicators on your dashboard.

7. Reduce wastage and re-work.
What processes need to be updated to help reduce wastage and re-work? Or, if the processes are correctly documented, what training do you need to provide to your team to ensure the processes are being followed to reduce wastage and re-work?

8. Review your sales process
Does your sales team know which produces or services have the highest margin? Do they know how to upsell to those higher-margin products or services? Identify the sales skills gaps in your team and implement training.

9. Make a plan.
There are plenty of areas for improvement in your business. Unless you write them down, you are unlikely to bring the correct focus to them. Make a plan to improve one area at a time.

10. Involve your accountant
Not only to help you with idea generation and building a plan, but also to hold you accountable to do the things your need to do.

We can help you lift your margin - contact us today!

"To improve is to change; to be perfect is to change often ." - Winston Churchill

Getting back to business

Thu, 17 Nov 2022 11:53:00 GMT

Getting back to business

It goes without saying that change has been a theme of late. Much of the change we have experienced has been out of our control. However, if we focus on what we can control, such as our response to change, we can regain some control and plan to maximise outcomes.

Five things within your control that will have the biggest impact on your business:

1. Working on your business, not just in it.
It's hard stepping back from your operational role. Many of us have been in 'crisis mode' for an extended period - running on adrenaline and coffee... but it is essential to set aside time to focus on your plan and review it regularly. After all, working hard will only pay off if we are working on the right things. Block out two hours each week to step out of your business and ensure your plan is executed. If this is something you struggle with, ask someone to hold you accountable.

2. Your product/service mix.
It is likely you have already made changes to your product or service offering. This may have happened under pressure and without a proper plan. Take time to thoroughly review your offering. Which products or services have the highest margins? Which products or services haven't been performing well? Are there new products or services you could introduce which complement your current offering? Do you need to review your pricing?

3. Marketing and communication.
Have you updated your Marketing Plan to reflect changes to your business operations? Clearly communicating with customers and prospects is essential in these times as they need to know when you are open, that you are taking their health and safety seriously, and any changes to your offering. You also want to be front of mind as customers look to support businesses.

4. Human resources.
It is likely that your human resources department took a hit over he last year. While government support helped save some jobs, for some businesses, they had no choice but to reduce the size of their team. Have you spent time reviewing your organisation structure to identify resourcing gaps and areas where you are over-resourced? You must ensure your team is the right size for your business with the right people on board.

5. Your finance, profitability and cashflow.
You may feel this part is out of your control, however, there are steps you can take to regain control of your finances. If you haven't already, revise your personal budget and identify areas you could reduce your spending. Then update your business budget, ideally, you will review and update this monthly. If you are struggling with cashflow, we can help you identify improvements you can make to your processes to manage your cashflow.

In Covid times there is a lot you can control and it is crucial for morale and progress that we focus on these things to get our business in the nest possible shape. Even if your business stayed open during lockdown or you have been back to business for a while, use these simple strategies for continuous improvement.

Success in 2021 will look very different from previous years. What does it look like for you and your business? If you need help developing a plan, improving your profitability and cashflow, or just want someone to bounce ideas off, get in touch.

"Success is not final, failure is not fatal: it is the courage to continue that counts." - Winston Churchill.

Choosing the right apps for your business

Wed, 16 Nov 2022 11:53:00 GMT

Choosing the right apps for your business

Software technology has evolved massively in the past decade, with cloud-based apps now fundamental to many of he internal and external processes in your business. To ensure you are getting the best from the available tech, it is important to choose he right apps and to create the ideal 'app stack' for a business in your specific sector.

But how do you know if the latest 'must-have app' is really going to be an asset integrate with your accounting system.

Building the perfect app stack

Before you dive headfirst into the Xero app store, it is important to do your homework and give yourself some firm foundations on which to base your app purchase decisions.

For example :

Talk to us about your app requirements

Our job as your accountant isn't just to deal with your numbers. We can also help you review your operations, formulate the most efficient systems and choose the apps that can deliver the most effective and productive business performance.

If you are looking to create your perfect app stack, we will help you navigate the Xero app store and create a perfectly connected and integrated Xero system.

Should I focus on profits or cashflow

Tue, 15 Nov 2022 11:53:00 GMT

Should I focus on profits or cashflow?

Turning a profit is at the heart of running any successful company But should profits be the only financial focus if you are looking to create a stable, long-term business?

Cashflow is the beating heart of your business . Without an even and predictable flow or cash into the company, you can't cover your overheads, you can't pay your employees and you can run your day-to-day operations - let alone think about expanding and growing the business.

So, what's needed is a healthy cashflow position AND a good focus on driving profits .

Keeping on top of the financial management of your business can be hard work, especially if you are new to accounting and the technical terms that are used to talk about money.

But if you're going to be in control of your financial destiny, it's important to get your head around the important process of cashflow management. This is especially true in the current business landscape, where sales revenue may be less buoyant, cash can be tight and the market is going through a challenging time.

Let's look at some of the key things to understand about your finances:

Talk to us about improving your cashflow management

Whether you are new to running a business, or a seasoned owner who needs some financial support, we can give you the cashflow advice you need.

We will review your finances, delve down into your cashflow and will come cup with key ways for you to increase your cash income and reduce your cash expenses. It only takes a few small changes to achieve a far better cashflow position for your business - helping you maintain positive cashflow AND generate meaningful profits.

Get in touch to talk through your cashflow concerns.

Establishing your competitive advantage

Mon, 14 Nov 2022 11:53:00 GMT

Establishing your competitive advantage

Why do customers buy from you? Knowing what it is that makes someone choose your products and/or service over your closest competitor is crucial business information.

Understanding this 'competitive advantage' is an important part of making your business stand out in the marketplace. Establishing your competitive advantage will help you create a compelling marketing message and will build value in your business - and this can all be wrapped up in your brand messaging, marketing and sales activity.

But how do you define what your key advantages are?

Key ways to understand your competitive advantage

Your competitive advantage could be something tangible, like a unique feature that your competitors simply don't have. But, equally, it doesn't have to be a feature at all - it might be your brand positioning or your customer service that sets you apart.

To drill down into the fundamental elements of your competitiveness, you need to ask some important questions about the nature of your products/services, so you know precisely why your brand appeals to your core customer base.

For example, ask yourself:

Talk to us about defining your competitive advantage

Remote work is on the rise

Sat, 01 Jan 2022 11:53:00 GMT

Remote work is on the rise - support your virtual team

Remote working has become more and more common as developments in technology have allowed us to communicate and collaborate no matter where we are. In fact, most of us are already logging on from home or holiday already. In May 2018, Swiss serviced office provider IWG released a study that found that 70% of professionals work remotely at least once a week.

Sometimes called 'telecommuting', remote work is on the rise, and it's challenging traditional ideas about where and when work should take place. Offering flexibility to your staff can be a valuable tool to both attract new talent and retain your existing team. But before deciding to offer remote work, you need to make sure you are able to support this way of working.

Remote work has many benefits for a business. Offering this option can mean that you retain employees through a change in their circumstances, for example, becoming a parent or relocating to a different part of the country. When you are recruiting, the ability to offer an entirely remote position can mean that you are suddenly able to consider candidates from across the country, rather than limiting yourself to one area, or to people who are in the position to be able to relocate.

So what do you consider before introducing remote working?

When you're working with a distributed team, communication is key, and as the employer, it is your job to provide the resources and systems to make this happen.

Typically, these might include:

With these essentials in place, the biggest factor in making remote work a success is workplace culture. Consider up-skilling your management team to make sure they are ready to support your remote staff or even to give them the skills to allow them to do their roles remotely.

Remote working can be isolating for an individual and sometimes the meaning in email and text can be lost so it is important to factor in a regular face-to-face meeting or video conference to bring co-workers together, enable mutual understanding and to build the team culture.

If you are planning to offer remote work to your team, make sure you have strong communication channels, and robust systems to support your flexible workers.

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Knowing your teams learning style is good for business

Sat, 01 Jan 2022 11:53:00 GMT

Knowing your team's learning styles is good for business

Why is it important to be aware of your own, and your team's learning styles? Knowing how each of your staff members best learn can enhance communication skills. improve performance and make your new-hire processes better. It can also reduce conflict and increase the range of communication strategies used in your business.

Everyone learns differently and while we have known this for centuries, the VARK modalities, developed by New Zealander Neil Fleming in 1987, were the first to offer a quiz with help sheets so people could use it to learn and teach better. VARK stands for Visual, Aural, Read/Write, and Kinaesthetic. The idea is that we use one (or a mixture) of these modalities when learning information.

Whether it's rules, guidelines, job changes, systems, and processes, or change within the business, it is your job to ensure staff learn in the best way for them. Once you know how each of your staff learns (there is a range of online quizzes), assess your communication channels, and adapt them to ensure no one misses out on valuable information.

New way to communicate with staff

How you best learn could influence the way you are delivering information to your staff. To make sure you cover all your team's learning needs, pick a selection of these communication approaches:

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Inspirational podcasts for your business

Sat, 01 Jan 2022 11:53:00 GMT

Inspirational podcasts for your business

Podcasts are often on our list of things to do, but for many business owners, there are often not enough hours in the day. The current crisis has challenged normal business activity. It is a stressful time. But it may provide an opportunity to think about where you want your business to head.

Are there opportunities you can grab? These podcasts might provide the inspiration for your business planning or just something interesting to listen to for your walk around the block.

Find them on the author's websites, Spotify or iTunes.

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How to scale up your business

Sat, 01 Jan 2022 11:53:00 GMT

How to scale up your business

Scaling up isn't just a case of letting organic growth take its course - genuine hypergrowth means achieving accelerated 20% growth over a 3-year period. A big ask for any company!

So if you're planning to make the transition from established start-up to ambitious scale-up, what are the foundational elements you need to get right?

Setting the scale-up foundations

To scale effectively, you need the right systems, the required funding and a team of people who have the skills to expand your enterprise at an accelerated pace in a short timescale.

To successfully scale your business, you need a strong strategic growth plan. But that plan will only be deliverable if you also:

With these foundations in place, you are ready for growth!

Talk to us about achieving your scale-up goals

If your business is looking to scale, we will help you create a meaningful growth plan that gets your systems, funding and resources ready for take-off.

Get in touch to start planning your scaleup.

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Balance passion and planning when you pitch for funding

Sat, 01 Jan 2022 11:53:00 GMT

Balance passion and planning when you pitch for funding

Seeking outside funding for your business is a big step. Whether you are looking to start a new business or expand an existing one, it makes sense to feel a little nervous.

But if you combine your passion for your business with detailed financials and meticulous planning, there's nothing to be afraid of.

Have a plan, know your stuff and add some spark.

Pitching with passion

Successful pitching isn't about tricking investors into taking a risk - it's about sharing your honest belief in the business. Be upfront about what you know and don't know, get excited about your product or service and hope that the investor will share your enthusiasm.

Got the passion sorted, but need help with the numbers? We can help with forecasting, profit projections and other key financial details.

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8 ways to save time and money in your business

Sat, 01 Jan 2022 11:53:00 GMT

8 ways to save time (and money) in your business

Like everyone, business owners are always looking for ways to save time. Every minute spent on admin or fixing mistakes is a minute that could be spent on business-building work.

When time really is money, it is worth finding ways to reduce those tedious and repetitive tasks - and technology is the answer.

Want to save time in your business? We can get you set up with the software to make it simple.

Back to Articles & Guides.

Get in control of cashflow

Sat, 01 Jan 2022 11:53:00 GMT

Get in control of cashflow

It's a well-worn phrase, but cashflow really is the lifeblood of your business.

When your cash inflows are greater than your cash outflows, that puts you in a positive cashflow position - giving you the liquid cash needed to trade, improve and grow as a business.

But if costs start to outstrip your income, that can leave too little cash in the pot. This results in mounting debt, problems paying suppliers and (in the worst cases) the failure of your business.

So it's vital to get proactive with cashflow management!

Fast ways to improve your cashflow

Cashflow is an ongoing process, where you need to constantly track, monitor and act on the numbers you see in your regular cashflow statements.

A negative cashflow position can be due to a number of factors, whether it's insufficient sales, slow payment of invoices or poor cost management. The solution to these issues is to take a proactive and holistic approach to improving the company's cash situation.

Some key ways to boost your cash position include:

Talk to us about improving your cashflow

If cashflow is becoming a headache for your business, we can quickly help you get back in control of your cash position - and attain that all-important positive cashflow position.

Get in touch to improve your cashflow.

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Keeping yourself, your business and your customers safe online

Sat, 01 Jan 2022 11:53:00 GMT

Keeping yourself, your business and your customers safe online

Access to the internet is a business imperative to connect to customers, transact business and network across geographies and industries. Likewise, a concern for individuals and companies operating online is keeping sensitive data and information secure from cybercriminals and hackers.

Supporting customers with security

The day to day impact of cybercrime has become a fact of life and a permanent reality for businesses. So, it is important for small businesses to take precautions to keep data safe from hackers. Just as a hospital is charged with protecting patient security, businesses operating online need to take measures to ensure customer data is safe.

Advice for staying safe online

Here are some simple, easy-to-implement tips for better protection:

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Succession planning for small businesses

Sat, 01 Jan 2022 11:53:00 GMT

Succession planning for small businesses

It takes guts to start a business. It also takes a strategic mindset to succeed.

Business owners are no strangers to weighing risk and navigating uncertainty, but the current climate has dialled everything up. Many business owners face the uncomfortable position having to remap carefully thought-out succession plans and exit strategies and to consider selling their business before they are ready and, possibly, for let than it's worth.

Transition may be a better option

Rob Young, Managing Director of Platform 1, works with business owners on ensuring they get the best possible return when selling their business. Rob's advice is to start by thinking about what option you have first.

There are five different ways to sell:

The Platform 1 model is a gradual buy-out program. It involves finding a manager to take the reins early on. Gradual buy-out is a process that involves:

Preparing for sale - what's important

Don't put off your succession plan - even if you are not ready to sell

It is a good idea to think about this long before you need to sell so that you maximise the value of the business and achieve a better out come. It's also worth remembering that retirement doesn't need to be doing nothing. If your business can run as an asset without your involvement, you don't have to sell it completely. so not selling down 100% of the business in a viable option.

Talk to us today about your succession plan

If you don't already have a succession plan in place, we can help so that you have options when you need them.

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Cash flow and cost control

Sat, 01 Jan 2022 11:53:00 GMT

Cash flow and cost control

More than ever, cashflow is a vital part of staying afloat, whether your business is in recovery or growth mode.

Revenue, profit and your bottom line will all resume their importance when we are back to "normal" (however that's going to look), but keeping everything running is the priority for now.

Regular cashflow forecasts will help you keep that is focus. Here's why:

It can help to analyse costs in terms of cost of sale and overheads.

Cost of sale and overheads

Cost of sale (also known as Cost of Goods Sold or CoGS) is how much it costs you to make a sale. In a business which sells products, CoGS is based on the price paid for the product, plus any costs necessary to put the merchandise into inventory and make it ready for sale, including shipping and handling. You can even break it down to calculate the cost of sale of individual units.

Overheads are general business expenses. They can't be tracked directly to sales. Overheads are what it costs you to open your doors (whether online or actual) every morning.

What's your plan?

Every dollar you can pull back from your costs can go straight into cashflow.

Talk to us if you would like to review your costs and your systems to keep costs under control. Whether your sales are boom or bust, you want to make sure that your costs aren't holding you back.

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Cash is not profit and vice versa

Sat, 01 Jan 2022 11:53:00 GMT

Cash is not profit and vice versa

The purpose of a business is to make money, and that means you have to know the difference between profit and cashflow.

Net profit is what you have left after you deduct all your business expenses from all your revenue. You change net profit only by changing the things that affect revenue and expenses.

For example, if:

Cashflow comes from various sources. However, it also covers operating expenses, taxes, equipment purchases, repayments, distribution, and so on.

Note that a profitable business does not always have good cashflow. And a business with good cashflow is not always profitable. For example, you can have good cashflow, and loss-making expenses.

To work out how fast you can grow your business, you need to look at your projected cashflow. We can advise you on this.

Keeping cash crowned as King

Your business can't survive without cash.

The following six takeaways are essential for business success:

Looking to improve cashflow? Make a time to talk to us. We are here to help.

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Building a better business in 10 steps

Sat, 01 Jan 2022 11:53:00 GMT

Building a better business in 10 steps

You're in business, congratulations, that takes courage and commitment.

It's not easy, and at times you might find yourself questioning why you're even doing it, but you're here because you had a vision. You decided being in a business was a better way to achieve that vision than working for someone else. And, you're right; you just have to work on it. Good things come to people who hustle.

You're likely an expert in what you do... maybe you're a mechanic and know the inside of a car engine like the back of your hand. Or, maybe you're a fashion retailer who can style anyone. This doesn't mean you're an expert at running your business though. It's hard taking time out of working in your business to work on it. But doing this is essential for its success.

There's no magical overnight solution to building a more successful business. It's about taking small steps every day to get a bit better that the day before.

So, what should you do to build yourself a more successful business? We have broken it down into 10 essential steps:

These are the 10 most important things you should be working on to ensure you achieve your goals. Small, incremental changes can have a massive effect on your success.

We are here to help you, every step along the way.

"Success isn't overnight. It's when every day you get a little better than the day before. It all adds up." - Dwayne 'The Rock' Johnson.

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Deep work - Ditch distractions and be one of the focused few

Sat, 01 Jan 2022 11:53:00 GMT

Deep Work - Ditch distraction and be one of the focused few

Think about a typical day in your office...

Perhaps you chat with colleagues, check email, return phone calls, open a work file, check email again - which leads to your social media feed... A universe of beeps, rings and pings beckons attention and steals productivity. Distraction is the new normal. The culprit: technology.

Multi-tasking is a misnomer because research shows doing two things at once means each task suffers. One study found a typical office worker gets just 11 minutes between interruptions, while it takes an average of 25 minutes to return to the original task after an interference.

It is worth asking whether you and your team are giving yourselves the chance to put you mind to important tasks. The author of Deep Work - Rules for Focused Success in a Distracted World, says most serious professional should quit social media and we should all practice being bored. Professor Cal Newport defines Deep Work as "professional activities performed in a state of distraction-free concentration that push your cognitive capabilities to their limit". That sweet spot, where you are focused and productive, is often referred to as a 'state of flow'.

Five ways to improve flow

A big project is due. You need to minimise distractions to meet your deadline. You must make minutes count rather than stretch your work hours from here to next Sunday. Here are five ways to get into a state of flow, where you are ultra-productive and focused:

1. Limit social media.

Cull the feeds you rarely use. Maybe keep LinkedIn but cut Instagram. Are you sing your Twitter account, or can you get news another way? If Facebook or another site is stealing too much of your time, curtail its use through technology, with an app like Freedom , which can clock internet access for up to eight hours at a stretch. Or StayFocused, a Chrome extension that restricts minutes spent on time-wasting websites. The extension is totally flexible, allowing you to set the amount of time you can waste each day, determine which websites are time-waters, and decide if you'd like to block certain sites altogether.

2. Give yourself a strict time period to work.

This limits procrastination and prevents burnout. Newport calls working 9-5, with no weekend work, fixed-schedule productivity. The more limits you give yourself, the less time you have for wasting. Deadlines such as 'I have 90 minutes to finish this business case', or 'I will finish work by 5.30pm each day', make it easier to keep yourself on task.

3. Introduce Deep Work strategies:

4. Transition to Deep Work

use rituals and set routines to minimise friction in your transition to depth. After you decide on your working philosophy, commit to scheduling Deep Work blocks into your diary and stick to them. Scheduling a specific time of day in advance negates the need to use willpower. Also, know where you will work and for how long. Create a zone specifically to perform Deep Work.

5. Drain the shallows

Confine shallow work so it doesn't impede your ability to take full advantage of deeper efforts that will ultimately determine your impact.

Use time blocking to schedule every minute of your day, and group tasks into blocks, such as emailing, printing, scheduling meetings, etc. Don't worry if you tweak your schedule multiple times. The goal is not to be a schedule stickler, but to maintain a say in what kind of work you are doing.

Economist, philosopher and author, Adam smith, figured out the value of Deep Work in the 18th century: "The man who works so moderately as to be able to work constantly not only preserves his health the longest but, in the course of the year, executes the greatest quantity of work".

Deep Work improves efficiency. Get in touch if you would like help with other strategies to increase efficiency in your business.

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What is the forecast

Sat, 01 Jan 2022 11:53:00 GMT

What is the forecast?

When we set out on a fishing trip or hike, we always check the weather forecast.

It's no different in business. The forecast tells us if there is bad weather (poor cashflow) in store based on the direction we're heading.

Your forecast will tell you:

The difference between a business forecast and a weather forecast is that, when the business forecast is showing bad weather, you can do something about it to make the sun come out. The forecast will tell you what is going well and what is not, so you can make adjustments to reduce the impact of bad weather.

Just as you wouldn't go fishing without checking the forecast, you shouldn't run your business without an annual forecast. So, don't live in your raincoat, waiting to get soaked - take control and talk to us about getting your forecast done so you know what to expect.

"Planning is bringing the future into the present so that you can do something about it now". - Alan Lakein

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Be Do Have

Sat, 01 Jan 2022 11:53:00 GMT

Be, Do, Have

Our success in life depends largely on our mindset. Those who wait until conditions are perfect are unlikely to achieve their goals as they are always waiting for the right time and never take that first step.

There are three small words whose order can heavily influence the outcomes we achieve: be, do, and have. After deciding on your goals, the next step is to consider who you need to be in order to achieve your goals, rather than what you need to do.

Compare the following sentences:

"When I have a more profitable business, I'll do great things with my family and be a great partner and parent...first I need to work a bit harder to sort out my business and finish these projects, then everything will fall into place."

"In order to be a great partner and parent, I need to work smarter so I can have more time with my family."

Now, if this resonates with you, how can you work smarter?

When you focus on who you need to be first, you will start to prioritise doing things in a way which is consistent with that role. The things you will have as a results become the bi-product of who you are. In contrast, if we wait to achieve what we think we must have in order to be a better person, we risk never changing our habits.

So, who do you really want to be? Start being that person today. Think like that person, speak like that person, and act like that person.

Let the be drive what you do from now on. You will be amazed at how quickly you will get what you want (the have ).

"You've got the be before you can do, and do before you can have." - Zig Ziglar

Do you need perspective on how you can work smarter? We can help!

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Collect your debtors fast

Sat, 01 Jan 2022 11:53:00 GMT

Collect your debtors fast

Did you know that you still have to pay tax on your debtors, even if you haven't collected them?

This is because you pay tax on your sales figures, whether you have collected the cash or not.

So, how do you collect your debtors faster?

Don't procrastinate on your debtors. Establish clear payment terms and ensure you stick to them.

It's the squeaky wheel that gets the oil". - Anon

Need help developing your Debtor Management Policy? We can help!

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P is for pupose not profit

Sat, 01 Jan 2022 11:53:00 GMT

P is for purpose, not profit

Why does your business exist?

Your purpose is roughly three to seven words explaining why your business exists for your customers. Your purpose should be about THEM, not you. It is a small statement, with immense power.

Examples:

Tesla: To accelerate the world's transition to sustainable energy.
Walt Disney: To make people happy.
TED: Spread ideas.

These may be big company examples, but a clear purpose statement is just as important for small and medium sized business.

A defined purpose statement is the antidote to narcissistic by-line of the past... because we know that consumers are wired to take a self-interest and therefore will engage your business if your why resonates with them. Thereafter, you purpose will drive alignment of values and loyalty.

If you don't focus on purpose, you are likely to focus on profit.

Guess what? Your customers aren't interested in you making profit. They are too worries about their own profit. They are more than happy for you to make a profit...provided you meet their needs first.

The correlation between a business's ability to serve a higher purpose and stronger financial performance has been proven. So, defining your purpose is a smart business strategy.

It comes down to engagement; with your team and your customers.

Numerous studies have told us that a strong sense of purpose drives employee satisfaction, which will help to improve customer loyalty.

Articulating your business's purpose to your team allows them to see that they are contributing to something bigger than themselves. Linking your purpose to their tasks and responsibilities allows them to see their connection to the outcome; how their role is attributing to the overall vision of the business - how they are impacting your customers' lives.

If we focus on meeting (and exceeding) customer needs, better profitability will be a by-product.

It's essentially internal marketing; to achieve buy in and alignment from the team; providing motivation to deliver on your purpose whilst breeding loyalty.

Getting clear on your purpose will also transform your other marketing. Being able to clearly articulate why you exist for your customers in your marketing will tie customers to your brand and make them more inclined to refer you to others. When that new customer does their due diligence, i.e. they stalk your website and social media, it's more likely they will develop an emotional connection to your business and buy from you.

Your purpose must first be defined by the leaders.

Only when your purpose is crystal clear can you articulate to your team and then your customers and target audience.

Having a clear purpose is also about sustainability. There is mounting evidence that in these times of change and disruption, having a clear purpose will improve a business's ability to transform and adapt.

So, what's your purpose? Ned help defining it? We can help.

"People don't buy what you do, they buy why you do it." - Simon Sinek

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10 Steps to achieving balance this holiday break

Sat, 01 Jan 2022 11:53:00 GMT

10 steps to achieving balance this holiday break

It is that time of year again when most of us are winding down and heading off for a well deserved break.

Here is our daily top 10 things to help you maximise your holiday!

Every day strive for:

It is a great time to make new habits! End this year and start the new one with your best foot forward...the flow on for your family and business life could surprise you.

"One day or Day one - you decide."

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How to regain control of your business

Sat, 01 Jan 2022 11:53:00 GMT

How to regain control of your business

Not all business owners want to grow their business. Some may just want more control. After all, your business is there to serve you; you shouldn't be a slave to it. So, how do you regain that much needed control?

There are three essential tools all businesses must have:

The Annual Business Plan
You Business Plan shouldn't be a lengthy document living in a dusty drawer. It should be on one page and displayed somewhere highly visible so you can review it regularly.

Best developed using an independent facilitator, your Business Plan should articulate exactly what you want from your business; the hours you want to work, the holidays you want to take, and the income you need.

You will identify Key Performance Indicators (KIPs) to monitor, vulnerabilities to manage, and opportunities to act upon. You will set no more than four key goals for the year, breaking these down into quarterly goals with clear actions to complete in order to achieve them.

The Annual Forecast
Your forecast will record how cash must flow throughout the year to give you what you want from your business. Too often business owners only create a forecast because the bank has requested one.

The forecast will highlight your business's weaknesses, when cashflow problems might arise, and how you need to manage your business financially to achieve the goals in your Business Plan. Don't wait for your bank to request a forecast; it's an essential tool to ensure the success of your business every year.

Ongoing reporting and accountability
The value lies in the implementation of your Business Plan and annual forecast. Constantly reviewing your progress against your targets is crucial. Ongoing reporting allows you to track actual results against your forecast to ensure progress towards your goals.

The best way to ensure you don't fail to implement the plan is to be held accountable by someone independent. Every business owner needs a coach. A great coach will work with you to get a result better than you could achieve on your own. They will uncover the root causes of problems in your business and empower you to do better. Most importantly, they will hold you accountable to getting the important stuff done.

There are no magic bullets to business success. All business need these three tools.

Get in touch to discuss how we can work together - to help you gain control of your business.

"Dreams x Goals x Plans x Actions = Your success" - Brad Sugars

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10 ways to imrpove self-awareness

Sat, 01 Jan 2022 11:53:00 GMT

10 ways to improve self-awareness

What is self-awareness?

Being self-aware is developing a deeper understanding of your strengths, weaknesses, personality type, motivators, stressors, values, inner critic, and behavioural tendencies. It is paying better attention to what you think and feel, and how you behave.

Having better self-awareness makes it easier for us to understand other people, and how they may perceive and interact with us.

Developing your emotional intelligence

How well do you know yourself? Better self-awareness will enable you to change your habits and improve your outcomes. Knowing oneself better will help you minimise your weaknesses and play to your weaknesses and play to your strengths.

10 ways to improve your self-awareness:

The benefits of self-awareness
Better self-awareness will lead to better relationships, clearer thinking, improved moods, more effective communication and decision making, and increased productivity!

Leadership and self-awareness
Lead with purpose and trust. And, if you help your team to be more self-aware, you will help them become more productive, self-reliant, and agile.

Whether you want to be more accepting of yourself or more accepting of others, developing self-awareness is key to personal growth. It will also help you to build a better work environment and a more successful business.

"Self-awareness allows you to self-correct." - Bill Hybels

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Understanding the 10 departments in your business is crucial for productivity

Sat, 01 Jan 2022 11:53:00 GMT

Understanding the 10 departments in your business is crucial for productivity

Every business can be broken down into 10 core departments with unique functions - two are strategic and the rest are operational. It is essential to understand the 10 departments, the function of each, and the key responsibilities of each person in each department.

The 10 departments and their functions are:

Having an Organisation Chart which clearly identifies the 10 departments and roles and responsibilities of each person increases efficiency and allows you to gain more control over your business.

"The business is there to serve you; not to other way around."

We can help you develop your Organisational Chart with clearly defined roles and responsibilities - get in touch!

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Minimise team turnover and time spent recruiting

Sat, 01 Jan 2022 11:53:00 GMT

Minimise team turnover and time spent recruiting

Recruiting is a hard and often a frustrating journey

It takes you away from other important, and productive, business activities. It leads you down dead-ends; that awesome applicant who had accepted a new position before you offered them yours! Not to mention those awkward interviews, where you realise within twenty seconds that the person is not suitable, but still have to go through the motions. Ultimately, all roads lead you to taking a punt on someone who may or may not have the goods.

Research indicates replacing a lost employee costs, on average 21% of their salary.
Lower level jobs are cheaper to replace. Typically, the higher the salary, the higher the % cost to the business of replacing the employee - up to a whopping 213%! There are many intangible and untraceable costs, making it hard to predict the true cost of losing that valued team member.

There is nothing worse than an unexpected resignation from a key team member.
So, the most effective thing you can do to prevent incurring such costs, is to take an honest look at why people have left in the first place. The answer is likely to be anyone or a combination of the following:

Have regular and transparent conversations with your team.
This should avoid the build-up of resentment that leads to bridge burning episodes. People have different wants and needs. Engage your team to help them define their own preferred workplace environment and management style that will enable their success. That way they are less likely to leave.

Workplace flexibility is not 'I win, they lose'.
Asking the question and adapting aspects of a job's nature can build real trust and loyalty. Aside from increasing retention, it can also present real efficiency and productivity gains for the business. For example, that person who wants to start and leave an hour early - they get a whole hour before other arrive or clients call to disrupt them. That's a win-win!

Culture breeds transparency
A good working culture can't be built in a day and needs ongoing nurturing, but it will lead to loyalty and transparency. It can take time before the walls come down and your employees feel comfortable being honest about their true desires and workplace niggles.

Sometimes what people say can be a mask for another issue completely. A good leader seeks to understand the unique motivators and stressors of each team member, to get to the bottom of what will truly help them define and deliver a 'good day's work'.

Suck it up (the bad with the good).
So, whether your employee leaves graciously and gratefully (offering to recruit their replacement to minimise the fall out for the business), simply announces their resignation in a calm and dignified manner, or attempts to burn the building down on the way out, get some valuable feedback.

Ask them to complete an exit interview.
An exit interview will shed light on areas you could improve to increase your team retention. Be prepared for some 'outlier' comments. Don't overreact, or rush to fix things that aren't broken. Nor should you discuss with others mentioned in the feedback without careful consideration and reflection. One thing is for sure, there will be some gold somewhere, and everyone should strive for continuous improvement.

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Raving fans are like business ambassadors

Sat, 01 Jan 2022 11:53:00 GMT

Raving fans are like business ambassadors

Want to win new customers? Make sure you start with the ones you already have. Studies show that the longer your customers stay, the more they will spend with you.

Happy customers = loyal customers = boosted bottom line

The term 'raving fans' relates to a passionate subset (usually about 10-15%) of your customer base, who are so in love with your business that they shout it out from the rooftops. They keep coming back, not because it's convenient, but because they want to. And, even if you have had a bad moment, they will stick with you while others shoot out the door.

These people are GOLD, and the very best ambassadors for your brand. So how do you go about reciprocating their loyalty and growing their numbers?

According to global leaders like Apple, Starbucks and Amazon, the trick is to 'do right and delight'. Give them customer service with bling - 100% then adding that surprising bit extra.

Here are some tips to try:

Under promise and over deliver - It is tempting to promise the world to your customers. But be careful - because then you have to live up to the hype! A better approach is to deliver more than your customer expect. Tell them that their parcel will arrive within three days for example, and then send it overnight. Or throw something extra into the deal, like a percentage off their bill. When you surprise and delight your customers with added value, they will return the favour in kind - raving about your fantastic service to their friends and contacts, who are then primed to become your next customers.

Be consistent, day in - day out - While it's good to inject a bit of wow factor from time to time you also need to get the basics right. It starts with being consistent, and making sure that your customers' experience is seamless across the board. With every interaction - be it in person, online or over the phone - your customers need to know what they're going to get, and that they can count on you to deliver. That's what keeps them coming back - and, over time, moves the relationship from happy customer to loyal, raving fan.

Turn lemons into lemonade - On the odd occasion that things do go wrong (and they will), don't panic. Always remember that it is less about the issue itself and more about how you handle it. A slip-up is often the best chance to lift your game, showcase your ability to listen to your customers and potentially turn a peeved client into a loyal one. When a problem is resolved quickly and efficiently, in a friendly manner - the negative become a positive.

Ask for honest feedback - A satisfaction rating from 1-10 isn't really going to help you. But when you dig deep and ask specific questions, like 'what's the one thing we can do to improve' - then you've got something to work with. It is important that you follow through, and act on this feedback of course. And keep your customer in the loop. People love to know that their opinions matter - it strengthens the relationship, and gives them a vested interest in your success. Also, while we are on feedback, never underestimate the power of a good old-fashioned testimonial. Once you have your ravings fans, be sure to use their reviews on your website, throughout social media and on all your marketing material. True stories from enthusiastic customer are powerful. Leverage them!

Finally, always remember that while raving fans are happy to tell everyone about the things they love about your company - disgruntled customer can't wait to rattle on about their bad experiences. We know which scenario we prefer.

Staying on top of an appointment based business

Sat, 01 Jan 2022 11:53:00 GMT

Staying on top of an appointment-based business

Anyone who runs a business that takes client bookings knows how time-consuming this can be. Technology can increase your engagement with, and accessibility to, your clients while ensuring that you spend your time where it counts - on growing your business.

Dealing with changing customer booking habits
We all lead faster, busier lives than ever before. For many of us, knowing what we are doing tomorrow, let alone a month from now, can be tough. So it is easy for people to miss appointments. Sometimes circumstances change and a client just can't make it, which has an impact on the schedule and costs money in lost income.

Consider some options:

Ensuring you have an automated and friendly appointment reminder system. Bonus points if you choose one that will put the booking in their personal calendar.

Take an upfront deposit or implement a cancellation fee policy that would cover the essentials of your staff time in the event of a sudden cancellation or no-show. If that feels too much for you, consider a three strike policy or have exemptions for long term clients. Trialling this with new unknown clients, taking the time to explain why it is an important safeguard for the survival and health of your business may be the best way to start.

Have a process to fill available slots in the event of cancellations or slow periods, like flossie . Using your website's online booking system, Flossie is able to see your service list and then mirror each of your services in Flossie, selling available appointments to new prospective clients all while taking pre-paid appointments, guaranteeing payment for you.

Give client the opportunity to book an appointment whenever they have a moment
While taking appointments over the phone provides a personal, human touch to the experience, it often isn't the most efficient customer service offering. These days, 24/7 booking systems are a great way to maximise client bookings, especially for those customers that are exceptionally busy during your working day.

Ensuring you have an online booking tool on your website or allowing people to leave a message via Facebook messenger is a great way to start. It is still advisable to provide that excellent service on top by wrapping back around and confirming the appointment by phone whenever possible.

Automate staff scheduling and rostering
Don't forget that changing appointment means changing staff rosters. An online rostering management tool can reduce the hours you might spend every week drawing up roster plans, reconfiguring timetables to suit part-time staff and adding new employees.

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Whats the point of market research

Sat, 01 Jan 2022 11:53:00 GMT

What's the point of market research

A successful small business needs to have customers making purchases, ideally over and over again. You can make that an easy decision for them, by finding out (and providing) precisely what they need.

Market research is the way to do that. It will help you ensure that your product or service meets your target customers' needs and that your marketing connects with target customers in the right way. Research is also your chance to find out who you're selling to and learn what they value, how they decide what to buy, and even what they think of your competitors.

Where to start
Online research can teach you a lot about your market. Check out websites for national and local government organisations, industry or trade associations, relevant consumer groups, and research companies. They could reveal important industry trends, or give you fresh data about the size of the market, or tell you something new about the region you're serving.

Next, focus on your customers. Define who your target customers are. Are they a certain age, gender, profession, or social standing? Focus on learning more about those groups of people. Don't spend too much time online, though. Other people's research can only take you so far, and it's time to get more precise.

Ask you own questions
You won't find any research online that was done with your precise target customers, so go out and do it yourself. You'll learn new things. Plus when you do your own research, you can ask your own questions. If you get a surprising answer, you can ask a follow-up question. That's really valuable.

The earlier you speak with real-life customers, the better. Their feedback will help you refine your offering, tweak your pricing, or adjust your marketing plan for maximum success. These interactions with target customers can even be used to start pre-selling your product service.

Here are some approached to doing your own market research:

Chat with people individually: Just make sure they're not family and friends. You want people who are in your target market - and they need to feel comfortable giving you negative feedback.

Hold focus groups: Get a big chunk of information form multiple people in just and hour or two.

Run online surveys: Ask a lot of people the same questions to generate some really dependable data.

Get a community going: Create a Facebook group or email list and keep sending surveys, updates, and fun facts.

Set up beta testing: Put on some food and drinks, and invite people to come around and test your product.

Who to ask
You can use market research to improve your service or product, or you can use it to refine your marketing. Put the product in their hand and see how they react to it. Ask what they'd pay for your product or service. Show them different names or packaging options and have them pick their favourite. Ask what they can do and don't like about your competitors. Test taglines or campaign slogans.

Don't let research slow you down
Market research can get very big. There's nothing wrong with learning all you can about your target customers but don't go too far. Make a distinction between what you need to know and what you'd like to know. Once you've done the essentials, get launched. You can always refine your product more as feedback come in from paying customers.

Now you know how to do market research
Market research can sound intimidating and costly, but it doesn't have to be that way. Start online, just don't get bogged down there. The sooner you start speaking to your actual target customers, the better. And don't try to find out everything at the start. Get the most basic chunks of information first, then go back for the details later.

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Business sustainability in uncertain times

Sat, 01 Jan 2022 11:53:00 GMT

Business sustainability in uncertain times

"Focus on becoming sustainable through a period of uncertain weakness, and building flexibility to respond quickly when your particular sustained upturn comes along." Tony Alexander, Former BNZ cheif economist. Tony's view 16 April 2020.

For business owners, it is hard to predict when things will return to normal. Even when lockdown measures ease, there is still a huge amount of uncertainty about then customers will come back and if the marketplace will still support your business.

Many businesses are wondering if they will be able to recover. The anxiety driven by so much personal and professional uncertainty is still very real.

There have been some unexpected positives. For many it is a renewed appreciation of our families, friends and colleagues, and a lot of creative baking, more exercise! But also, perhaps, a renewed confidence in their business and their people.

They are deeply appreciative of how their teams and business contacts have adapted. This flexibility might be critical as we continue to adapt to a succession of new normals. Some businesses will be scrambling just to reopen. Others may see a need to restructure or to extend those elements that worked well for them during the crisis.

Businesses already functioning well with cloud software have found the transition to working remotely reasonably smooth. Some that were partially operating in the cloud were able to complete the leap with some dedicated IT support (with varying combinations of long hours, and Tim Tams).

What could your business look like from here?

Even as a stand-alone business, you are already part of a network of suppliers, customers, business advisors, and regulators who are increasingly operating online. Can you streamline your setup for smoother, secure online interaction with them?

Can you streamline?

For example, is your paperwork still largely that? Paper? Do you lose time to manual coding, data entry and filing? Has your annual accounts cycle started each year with dropping into us with the proverbial shoebox full of statements, invoices and receipts? Moving them to electronic format might save time and money.

Products such as ReceiptBank and Hubdoc can help. They extract the key information and present it in a manageable format for downloading or processing with a connected accounting software.

Places to start:

Click and collect?

Not all businesses are suited to online trading, but many have surprised themselves with how they could adapt to this model. Even businesses which traditionally only work face-to-face have seen opportunities to shift essential products to click and collect or delivery models.

Our Recommendation

After so many years as a business owner trying to get your head out of the clouds, maybe this is the perfect time to put it back there.

As with all business decisions, consider the risks and talk to us about how it will work for you. We are here to help you assess the easiest but also the most secure options for your business.

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Keeping on top of small business cash flow

Sat, 01 Jan 2022 11:53:00 GMT

Keeping on top of small business cash flow

Money in, money out. Cash flow is one of the most important measures of your business's health. But how do you monitor it?

It sounds simple to track sales on the one hand and expenses on the other - then compare the two. but a massive 65 percent of failed businesses say they closed down because of financial mismanagement, including issues such as lack of cash flow visibility. In other words, they didn't know if they were making more than they were spending.

Why are people losing sight of cash flow?
Everyone knows a business needs to stay in the black. It's not a new idea. So it can be hard to imagine why a business would lose sight of cash flow. Until you're in business yourself and you realise tracking small business cash flow isn't as easy as it seems.

For small businesses, this can involve:

You may have to rely on employees or business partners to supply a lot of this information. Their paperwork will sometimes have scribbled notes in the margins, requiring a follow-up phone call. It takes a lot of time, patience and energy before you're even ready to punch the numbers into a spreadsheet.

But even if you're vigilant, there's a lag between when a sale or expenditure happens and when it's entered into your spreadsheet. You're taking a series of snapshots of your cash flow, and there can be big blind spots in between.

As business picks up, with more sales and more expenditure happening all the time, those blind spots become more significant. More things happen in between each cash flow snapshot. And cash flow snapshots get further apart because you're too busy to update spreadsheets.

Consider using cloud accounting software
Because money in and money out is the ultimate measure of business health and sustainability, you know you must watch it carefully. Cloud accounting software can automate the process for you. In fact, 98% of users of accounting software recommend it to others.

Here's how it works:
Cloud accounting software is generally sold on a flat monthly subscription. You don't need to download anything and you can run it easily off your existing laptop, desktop or smartphone.

It can link to your business bank account (and point-of-sale system) to track sales and expenses as they happen, with no data entry from you. Because the data comes straight from the bank, it's clean and accurate. Smart accounting software will also send out your invoices, so it shows what you're owed. Next, the system pools all the data to create a dashboard of your financial situation which is automatically updated every day.

Accounting software probably only needs to save you one or two hours a month to pay for itself. In reality, because it will save you time that you can spend on other areas of your business, it will do that many times over.

Talk to us about accounting software for the health of your business.

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Ask don't pitch

Sat, 01 Jan 2022 11:53:00 GMT

Ask - don't pitch

Does your sales team have a generic sales pitch they rattle of to every prospect?

Customers want to know what is in it for them personally, not listen to a script. Turn your sales pitch on its head by asking effective questions, being attentive, and personalising your sales discussion to each prospect.

Consider asking the following questions when dealing with prospects:

1. What difficulties are you experiencing?
Understanding a prospect's specific circumstances allows you to position your product or service in a way that solves their problems or benefits them personally.

2. What is this costing you?
Speak in terms of money, time and stress. Establishing how an issue is costing the prospect will increase their level or dissatisfaction with the issue and help you overcome sales resistance.

3, What would your life be like if these issues were resolved
This encourages the prospect to imagine how their life would improve if the issue was resolved. Frame the value of your product or service in a way that directly relates to them.

4. What are your long term goals?
This gives you insight into their plan for the future, so you can tailor your product or service in way that helps them achieve their goals.

Asking these questions and tailoring your sales pitch to their situation helps the prospect see the value of your product or service for them.

"Approach each customer with the idea of helping him or her solve a problem or achieve a goal, not of selling a product or service." - Brian Tracy

If you need help with your sales strategies, get in touch now.

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Do you have a client reception procedure

Sat, 01 Jan 2022 11:53:00 GMT

Do you have a client reception procedure?

Reception is the face of your business; the first impression you give sets the tone of the relationship with your clients.

1. All clients are to be greeted warmly at reception, using their name where possible. Smile and make them feel welcome - Good morning, Hermione, how are you today?

2. Introduce yourself to the client if you haven't already met them - I'm Harry, the Client Services Manager, it's a pleasure to meet you.

3. If the client doesn't have an appointment, see how you can help them or locate the person most likely to be able to deal with their query - So that I can best help you, what have you come in for today?

4. If the client has an appointment, offer them refreshments or something to read while they wait - Ronald will be with you in one moment, can I get you something to drink while you wait?

5. Clients should not be kept waiting. Advise the team member the client is here. If they are running late, provide an estimate of how long they will be - Neville is with someone right now, they will be with you in about five minutes. In the meantime, is there anything I can help you with?

6. If, for some reasons outside our control, a client is kept waiting, simply thank them for waiting - Thank you for waiting James.

7. Clients are to be escorted to the team member's office and escorted back to reception at the end of the meeting - If you would like to follow me, I will take you to Jane's office.

8. Thank the client for coming in and say goodbye - It was lovely meeting you, Lily, see you again soon.

Leaving the client with the best possible impression of your business is key, however, it shouldn't stop there. It is not only important to create a good impression, you should also be laying the foundation for a strong, friendly and honest relationship.

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Delighting your customers for better referrals

Sat, 01 Jan 2022 11:53:00 GMT

Delighting your customers for better referrals

Why all businesses need to plan for succession

Sat, 01 Jan 2022 11:53:00 GMT

Why all businesses need to plan for succession

Hypothetically speaking, if you were hit by a bus tomorrow, how seamless and pain free would the transition be - both for your business and those who rely on it?

Succession Planning isn't just about retirement. In an unforeseen event would the operation, management and value of your business be compromised?

It isn't just about securing your future.

Succession Planning is still an extremely valuable exercise if you are planning to retire in 20 years, or if you have already lined up your successor. Should something unforseen happen to you, this planning will downgrade a major crisis to a significant, but manageable, event.

By having the conversations now and documenting clear intentions, you could save yourself (and your stakeholders and family) a lot of pain should an unexpected event occur.

It's also about efficiency.

Planning for unexpected scenarios forces you to assess who does what, why, and how they do it best:

It's about providing a safety net for your team. Documenting the key business processes in your company enables you to devise the most efficient system for each task. Having a clear procedure to follow is helpful when a team member is absent, but most importantly when it come time to transfer this knowledge to a new team, manager or owner.

A robust and effective Succession Plan take three to five years from initial planning to implementation.

Having said that, any plan is better than no plan. Generally, the longer you have to execute your plan. Generally, the longer you have to execute your plan, the bigger the opportunity you have to maximise the value of your business and therefore the capital you extract on exiting.

A Succession Plan is not something you write and leave to rot in a dusty drawer. Succession Planning is an important part of your business strategy that requires regular attention and ongoing development!

Involving key team members in aspects of planning will engage and empower them as the journey begins.

We can help to develop your Succession Plan!

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Why you must set SMART goals

Sat, 01 Jan 2022 11:53:00 GMT

Why you must set SMART goals

You have probably heard of SMART goals and, spoiler alert, they are not rocket science... but they do work.

SMART goals are an excellent filter to maximise planning outcomes.

With the SMART acronym comes five simple parameters; that any gaol (if you truly want to achieve it) must be S pecific, M easurable, A chievable, R elevant and T ime-Bound.

When thinking about goals vs SMART goals, consider the difference between "I want a healthier diet" and "I want to eat less than 2,000 calories a day, 6 days per week to lose 7kg within 3 months and reduce my LDL cholesterol to 80". Which goal compels you to act?

Let's break it down:

Run the SMART filter over your current goals to ensure you are setting yourself up for success.

And, don't forget to reward your hard work. The dopamine hit we experience from completing tasks and achieving goals encourages us to repeat such behaviour, helping us turn our goals into habits.

Need help resetting the goals in your Business Plan? We can help!

"A goal should scare you a little and excite you a lot." - Joe Vitale

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Cutting costs or increasing your purchases

Sat, 01 Jan 2022 11:53:00 GMT

Cutting costs or increasing your prices? We can help

With more than 85% of SMEs expecting a lower profit in the next none months, the more prepared you can be for the unexpected, the better. Managing expenses is a good idea at any stage in your business and you may need to consider increasing your prices.

Smart ways to get your costs under control

Cashflow has been a big issue for thousands of businesses this year, and when the money's not rolling in, it can help to rethink your costs. To do it effectively involves more than just keeping an eye on outgoings. It's about looking at all the moving parts of your business to see if your systems (or lack of) are costing you unnecessarily.

Here' how:

How can I put my prices up without losing customers?

If you need to change your pricing to make ends meet, be honest and up-front with your customers at all communication points.

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What is employee engagement and why does it matter

Sat, 01 Jan 2022 11:53:00 GMT

What is employee engagement and why does it matter?

An engaged employee is a team member who is fully absorbed by and enthusiastic about their work, and who takes positive action to further a company's reputation and interests and achieve their goals.

More importantly, what does a disengaged team member look like?
The symptoms range from a negative attitude, poor communication, absenteeism, lack of initiative, laziness, lack of participation, and doing the bare minimum at work... all the way to actively damaging the company's work output, culture, and reputation.

The impact of having a single disengaged team member can be catastrophic.
The effects are not limited to their own poor productivity and output. This person can infect the core of your culture; damaging morale and lowering the performance of the entire team. They could even cause the resignation of a key team member or, if client facing, can cause irreparable damage to your brand.

Improved employee engagement leads to improved productivity and performance.
Numerous studies have proven that companies with engaged employees significantly outperform others. Why is this? People who are engaged in their role want to come to work, therefore take fewer sick days. This ultimately leads to reduced team turnover and less unproductive time spent recruiting and inducting new employees.

Not surprisingly, team members who are engaged feel more supported by their peers and are more likely to work collaboratively, leading to significantly less re-work and wastage. Also, fewer workplace accidents and incidents occur when team members are engaged. All of the above reasons contribute to much higher productivity and profitability.

The Engagement-Profit Chain* is another take on why engagement improves performance.
Engaged employees lead to... higher service, quality, and productivity, which leads to... higher customer satisfaction, which also leads to... increased sales (repeat business and referrals), which leads to... higher profit levels, which leads to... higher returns.

There is a difference between employee happiness and employee engagement.
Your team could be happy but not necessarily working efficiently and productively to deliver optimum outcomes.

A number of factors can influence and improve employee engagement. These include developing and utilising Core Values, documenting an effective Organisational Chart, providing clarity on the roles and responsibilities in your organisations, and introducing KPIs to help define what a good day's work looks like for your team.

Need help building a happy and high-performance working culture? Get in touch.

"To win in the marketplace you must first win in the workplace." - Doug Conant

*The Engagement-Profit Chain was created by Kevin Kruse

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The five A's of change

Sat, 01 Jan 2022 11:53:00 GMT

The five A's of change - achieving continuous improvement

We've spent more than the past year responding to things outside of our control. Everyone has experienced huge change, a lot of it while in crisis mode. Upon reflection, some of the changes were inevitable. If we think about digital transformation and flexible working conditions, these were simply accelerated by Covid.

Now that the worst has (hopefully) passed, it is important to pause and reflect on the changes you have made to your business. The process of change itself is a powerful tool we can use far beyond the Covid crisis, to improve our planning and resilience. It is likely there are other opportunities (or change) that exist to help you future proof your business.

Consciously recognising the process required to change can vastly improve your outcomes.

The Five A's of Change breaks it down simply:

1. Awareness.
First we must be aware of what needs to change. What changes should you prioritise now you have some control back? How can you reflect these in your business plan?.

2. Acceptance.
We have to accept that change is a continuous process. It is likely you are craving some stability; however progress requires change. Change is a lot more positive when it is a result of proactive (not reactive) thinking.

3. Action.
Once we have a plan; we must actually implement it. Now that you are out of crisis mode, you can take it one step at a time; the momentum for change will grow. Without action, planning is pointless.

4. Accountability.
Having someone independent to hold us to account is typically a foolproof way to ensure we act. A bit like going to the gym before work... we're more likely to show up if we've committed to a friend or paid for a personal trainer.

5. Acknowledgement.
Acknowledge the change you have been through and the way you responded to Covid-19 and lockdown. We all did the best we could with the knowledge we had at the time. Celebrate the success of taking action and forcing change; it helps reinforce good behaviour.

This powerful model is simple and effective. Consider the things in your business that you would like to change and what stage in this process you are at. What is your next step? Whatever your current situation, empower yourself and make a commitment to real change.

"The secret of change is to focus all of your energy not on fighting the old, but on building the new." - Socrates.

Need help making change stick? Ask us how we can help you with planning and accountability.

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Documenting your sales process

Sat, 01 Jan 2022 11:53:00 GMT

Documenting your sales process

Businesses that follow a documented sales process generate more revenue.

Prospective customers should receive the same service no matter which member of your sales team they deal with. A documented sales process ensures your sales team knows the correct process to follow; providing prospective customers a consistent experience.

It is important to include your sales team in the development of your sales process to gain valuable insights and ensure they are on board with the new process.

Consider the following to create your sales process:

1. Product knowledge.
You cannot sell something if you don't know what it is or how it works. Your sales team must know your products inside out. They need to understand the problems that they solve and how they will benefit the customer. Never assume that a customer will link a feature to a benefit. It is the salesperson's job to join the dots and show the customer the value of your product.

2. Prospecting.
Prospecting is the ongoing search for new customers who are the right fit. Have you identified your ideal customer? This should be documented in your Business Plan. If not, start by profiling your existing customers - what do they have in common? Work with your marketing team to identify prospective customers.

3. Preparation.
It is essential to prepare before your initial contact with a prospect to build on your product knowledge, assess your competitor's offerings (in case you are asked), and clarify your sales presentation.

4. Initial contact
This isn't an email marketing campaign; it is a personal phone call or scheduled catch up. Ensure you identify the prospective customer's pain points or challenges they are facing. How you engage the prospective customer will heavily influence the outcome. Ensure you update your CRM with notes straight after the catch up and schedule any required follow up.

5. Qualification.
The most effective sales teams sell to the needs of their prospects. Ask the right questions to determine how your product or service can help them, building confidence and trust. Consider some 'go-to' questions that will prompt you to subtly convey product information, including how you differentiate from your competitors.

6. The presentation / proposal
With accurate qualification, you can tailor your pitch to meet the needs of the prospect. It is the same with a proposal - record the prospect's specific needs in the proposal, demonstrating that you understand their situation and are offering a genuine solution.

7. Handling objections.
Don' t be scared of objections; they are opportunities, not threats. They show that the customer doesn't yet see the value of your product or service, providing valuable insight. Discuss the customer's objections and use testimonials and case studies to demonstrate how your product or service has helped other in a similar position.

8. Closing.
It is time to make the sale formal. This is where the customer signs on the dotted line and parts with their cash. Identify the closing signals without being too presumptuous. Don't be afraid to assume the sale, but give the customer options. Don't be satisfied by a response of 'we will get back to you' - consider your response to such comments prior to closing.

9. Follow up / getting referrals.
The salesperson who stated the relationship with the customer is the best person to follow up. The end game is to build a long term relationship with your customer to promote ongoing sales and recurring revenue. Contact the customer after a certain period of time to get feedback and ensure they are happy. This is not an opportunity to sell more to the customer (unless they ask), it is about building a solid relationship for future sales.

Keeping customers happy will also increase your chance of referrals, and statistics show a prospect is four times more likely to buy something when they have been referred by a friend.

Having a documented sales process ensures consistency within your sales team. How your sales team engage prospective customers, close the deal and deliver your product or service will heavily influence your brand.

If you need help to develop and document your sales process, get in touch now!

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What is succession planning

Sat, 01 Jan 2022 11:53:00 GMT

What is succession planning ?

Succession is what happens to your business when you ultimately decide you want out.

Planning your succession allows you to transition your business to new ownership in a managed and systematic way, helping you to reduce stress and achieve a greater outcome at a potentially tricky time.

Succession Planning is about clarifying what you want for the future and defining the steps required to turn that vision into a reality, while taking into consideration business, personal, and family expectations.

Planning for an owner's inevitable exit from a business is too often left to the last minute, strongly impacting the size of the nest egg. It is crucial to consider Succession Planning as an important aspect of your overall business strategy that requires regular reflection and ongoing development.

As a business owner, do the following questions weigh on your mind?

Perhaps you have already identified your successor.

There is a big misconception that if your successor is poised to take over, you don't need to plan. Be that a management buy out or a family member, there are a lot of expectations, logistics, and legalities to manage to ensure a smooth transition for everyone (including your customers).

Regardless of your situation, a carefully considered exit strategy will reflect the hard work and capital you have invested in your business and ensure strong foundations for the future.

We can help you develop your Succession Plan to ensure that the expectations of all parties are achieved.

Get in touch if you would like to know how.

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Simple things your sales team must avoid

Sat, 01 Jan 2022 11:53:00 GMT

Simple things your sales team must avoid

Help your sales team avoid these selling faux pas to improve their results:

Get in touch if you would like to help to refine your sales process.

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Communication is the key to business success

Sat, 01 Jan 2022 11:53:00 GMT

Communication is the key to business success

You never get a second chance to make a first impression. Effective communication will help you develop a stronger rapport, make you memorable and enable you to read people better.

Practice these key skills to develop your communication skills:

When it comes to communications, what are your strengths and where do you need to stretch? Communication is key to business success.

Get in touch to hear how we can help you improve your business!

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Are you bringing your A game or your O game

Sat, 01 Jan 2022 11:53:00 GMT

Are you bringing your A game or your O game?

Success in sport is all about playing your A game. Being the best you can be through preparation and training leading up to the game, as well as through your actions during and after the game - showing modesty and humility in success and graciousness in defeat.

If everyone on the team plays their A game the results are impressive. So how do we transfer the A game mindset from sport to the workplace?

Three A's that bring it:

Appraise: work out who will make up your dream team. Consider individual strengths and determine what your players want to achieve.

Allow: empower your team to deliver on your plan. Just as the coach sits on the sideline and stays out of the game, allow your team to demonstrate why they are on your team.

Acknowledge: reinforce the great work they are doing with support and encouragement - and celebrate their success to build confidence and momentum.

Sounds easy, right? yet some leaders inadvertently play their O game by demonstrating O behaviours that impact the whole team and breed O results.

Three O's that will undermine performance:

Obstruct: stand in the way by seeking to control the game or allowing your structure to bottleneck at you and slow your team down.

Object: block the growth of your team in the belief that they will never do the job as well as you do. Often, with support, they will end up doing it better.

Obliviousness: carry on blissfully working in the way you are, unaware of the impact your approach is having on your team.

Take an honest look in the mirror and focus on eliminating your o game behaviours. Don't think you have any? A sk your team for an honest a ppraisal, a llow them to a ction their improvement ideas, a cknowledge the results, and commit to further developing your self a wareness.

"If you've had a good time playing the game you're a winner even if you lose." - Malcolm Forbes

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Review your expenses and save yourself money

Sat, 01 Jan 2022 11:53:00 GMT

Review your expenses - and save yourself money

Running a business will always mean incurring certain expenses, or 'spend'.

There are always costs, overheads and supplier bills that mount up - and these expenses will gradually chip away at your cash position, making it more difficult to grow and make a profit.

So, what can you do to reduce your spend levels? And what impact will this have on your overall margins, profits and ability to fund the next stage in your business journey?

Getting proactive with your spend management

Spend management is all about getting in control of your expenses - and, where possible, aiming to reduce the level of costs and overheads that you incur as a company.

Why does this matter? Well, excessive spending eats into your cashflow, reduces your profit margins and stops you from achieving the profits that you are capable of as a business. So if you can get proactive with your spend management, you can actually make your company a far more financially productive enterprise - and that's great for your overall business health.

So, what can you do to reduce and slim down your company expenses?

Here are some key ways to reduce expenses:

Talk to us about improving your spend management

If you would like to get in control of your expenses, we'd love to chat. We will review your current costs and will highlight the key areas where expenses can be cut. Then we will help you formulate a proactive spend management programme, to reduce your unnecessary spending.

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Payroll updates minimum wage award changes and parental leave

Sat, 01 Jan 2022 11:53:00 GMT

Payroll Updates: Minimum wage, award changes and parental leave

Minimum Wage Staggered Increases and Award Changes

The national minimum wage increased on 1 July by 1.75% to $19.84 per hour (or $753.80 per week).

The minimum wage increase applies to employees on JobKeeper if there pay rate is defined by an aware rate or the national minimum wage. This means the amount of JobKeeper top-up payment may reduce in alignment with the wage increase.

This year, the Fair Work Ombudsman has implemented minimum wage increases to awards in a staggered approach by grouping awards into three categories:

There have also been some changes made to allowances, penalty rates and loadings in several awards; visit the Fair Work Ombudsman webpage for details. Affected awards are Social and Community Services Award, Aged Care Award, Building and Construction Award, Joinery Award, Mobile Crane Award and the Miscellaneous Award.

Changes to Parental Leave Pay

From 1 July, eligible employees can now split their parental leave into two period within two years of the birth of the child, rather than having to take it as one continuous period of 18 weeks.

The new plan allows more flexibility with how and when the leave can be taken:

The two periods can be taken together to provide 18 weeks of unbroken leave if desired.

Payment of parental leave remains the same, with the system administered by Services Australia . From 1 July, the amount of parental leave pay is $753.80 in line with the minimum wage increase.

Review Your Payroll Systems

The start of the financial year is a great time to review your payroll setup, policies and procedures. Talk to us if you need to implement practical parental leave policies that are beneficial for both employer and employees and allow for smooth transition between leaving and returning to work. We can also review your pay categories and adjust award rates where needed.

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The fundamentals of a business budget

Sat, 01 Jan 2022 11:53:00 GMT

The fundamental of a business budget

A business budget is one of the essential tools in managing your business finances and actively building your business.

A budget shows what you plan to do with your cash over the next year.

For a complete picture of your business health, you need to review the profit and loss statement, the balance sheet, the cash flow forecast and the budget. Taken together, these reports allow to make informed business decisions and monitor performance.

Why have a budget?

Where to start

A basic budget takes known income and expenses, then makes certain assumptions about the timing of income and expenditure. The basic budget is based on cash in and out of the business.

Over time, as you start to see the benefits of using a budget, your budget should evolve into a more sophisticated version that includes non-cash elements such as provisions and depreciation.

Most businesses will start with one budget but soon move to having three budgets.

A budget is usually for a financial year, but you can also set up budgets for two to five years.

Once you have one budget (or more) set up, you can then run your current financial report against the budget to see how you are tracking. This allows you to make rational business decisions in real time to adjust accordingly.

You can run your financial reports monthly and adjust your budget as needed.

What Next?

Now is a great time to put a budget into place for the coming financial year. Book a time with us to help create a meaningful budget in your accounting software so that you can use it as a proactive part of your business management, strategy and your success.

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6 reasons to look at your financial report

Sat, 01 Jan 2022 11:53:00 GMT

6 reasons to look at your financial report

Making time to look over your financial reports each month is an important task for any business owner. If you are not taking the time to do this, either because you are too busy, or perhaps you don't really understand what you are looking at and it doesn't make sense to you, then here are 6 reasons we recommend that you should start to.

But before we get our 6 reasons, let's talk very quickly about which reports to look at. At a bare minimum, and depending on the complexity of your business, you should be looking at the following:

So, why bother?

If you would like to know which reports are relevant to your business, and you want to better understand what's going on in your business, then get in touch so we can make a time to go through them with you.

Your business success is important to us and we are here to help you.

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R and D tax incentive for Australian Businesses

Sat, 01 Jan 2022 11:53:00 GMT

R&D tax incentive for Australian businesses

The Australian Government's R&D tax incentive provides targeted offsets that aim to encourage more companies to engage in R&D, in order to contribute to a stronger economy.

The incentive is designed to encourage research and development activities that companies may not otherwise do due to uncertain returns and risk.

What's involved?

The R&DTI offers two levels of tax offset depending on your aggregated turnover:

Who is eligible?

The R&D Tax Incentive is a self-assessment program.

What can you do to prepare now for a return to business

Sat, 01 Jan 2022 11:53:00 GMT

What can you do to prepare now, for a return to business?

In the context of the COVID-19 outbreak, the duty to remove or minimise health and safety risks in your business has become harder. When lockdown measures ease, businesses will need to have a plan on how they will manage risks and protect workers and customers before they start operations.

Many businesses are still unable to operate or are required to work from home. If you are one of the businesses that are able to return to work, you will need to think about the following safety measures:

Keeping your workplace, and the people you work with safe

Your workplace will need to operate consistently with public health guidance. For more information on workplace health and safety visit the Safe Work Australia Website .

State Government websites have up-to-date information on which businesses can operate and how to comply.

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What to expect from ATO risk reviews and audits

Sat, 01 Jan 2022 11:53:00 GMT

What to expect from ATO Risk Reviews and Audits

ATO audits can happen any time to a business, but now with JobKeeper, early release of super and COVID-19 cashflow boost payments, the ATO will be reviewing and auditing a lot more businesses in the future.

The ATO will usually conduct a risk review initially, to determine if there are compliance issues that warrant a full audit process. Often the risk process allows issues to be resolved quickly and simply without the need for a full audit.

If an audit is instigated, there are several stages including an initial meeting, research and investigation by the ATO agents and discussions with the business owner before the ATO issues a final audit report and outcomes. Often the ATO will issue an interim report before the final report, allowing the business owner to review their position and make comment or provide further information. Some audits will be concluded within a few months and others may take up to 18 months.

There are several types of audits for small to medium enterprises, including record keeping, income tax, data comparison, cash and hidden economy and superannuation guarantee audits.

What to Expect

If you've been contacted directly by the ATO about review or audit, talk to us about helping you through the process to reduce the stress of the process.

Even if you haven't ben flagged for an audit yet, we can help proactively manage your records and get your systems and accounts into excellent shape to minimise the impact on your business. Professionally managing the audit process will save you time and money.

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Director Penalty Law Extended to GST

Sat, 01 Jan 2022 11:53:00 GMT

Director Penalty law Extended to GST

Director penalty notices (DPNs) have existed for some years now to recover unpaid PAYG withholding and superannuation. This law means that if a company did not pay PAYGW and superannuation obligations on time, company directors could be personally liable for the amount owing, as well as penalties.

The new law started on 1 April 2020 and extends the penalty regime to allow recovery of unpaid GST, wine equalisation tax (WET) and luxury car tax (LCT). The new provisions significantly increase the personal risk that directors take in committing to pay ATO obligations.

The DPNs have narrow time limits in which to be addressed - directors must contact the ATO within 21 days of the issue date. While the new law is aimed at capturing illegal and fraudulent activity by directors, there may be legitimate operators with cash flow difficulties who are caught out by this law. In this case, the director is advised to contact the ATO to discuss the situation.

If you are considering taking on a new position for an existing company, check the status of financial obligations of that company before accepting the position, as new directors may become liable for existing debts.

COVID-19 and Temporary Change to Bankruptcy Law

Usually there are strict rules about trading while insolvent; however, there are temporary changes to bankruptcy laws as part of the economic response to the Coronavirus which may allow directors more flexibility in continuing to trade during the Coronavirus downturn. The changes allow for more time and an increased creditor threshold, but do not change the legal liability of directors.

Talk to us about your Director Duties

Contact us to understand the implications of the new director penalty regime and the potential financial liability, particularly considering the current Coronavirus situation and changes to bankruptcy laws.

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Common tax deductions for small business

Sat, 01 Jan 2022 11:53:00 GMT

Common tax deductions for small business

There are many expenses common to most small businesses, and there are other expenses that are specific to the nature of the goods or services the business provides. Are you claiming all the tax deductions that you are entitled to?

Expenses must relate to the running of the business and providing the goods or services that your business offers.

Some common expenses that are not deductible are fines and penalties, provisions for employee leave, donations to entities not registered as deductible gift recipients and entertainment.

There may be some expenses you want to query with us such as private usage of business vehicles, prepaid expenses, bad debts, loss of stock and borrowing expenses.

What's on the ATO Radar?

Instant Asset Write Off

This year the instant asset write-off threshold has increased to $150,000 up from $30,000. The new threshold is in place until 30 June, so talk to us if you would like advice about whether it is a good time for your business to buy new assets and claim an immediate deduction.

Keep your Records

Remember you need a valid tax invoice for any expenses over $82.50 (including GST) to prove the business expense.

Maximise your Business Deductions

We can check your business's eligibility for concessions, offsets, incentives and rebates and make sure your business is calculating taxable income correctly, so you don't pay more tax than you need to!

With so many businesses affected by COVID-19, it is important to get the allowable tax deductions right for your business and get in early for your tax return. This way you get more time to plan for payment, or if you are due a refund, you will get it quickly.

When should you offer casual employees a permanent position

Sat, 01 Jan 2022 11:53:00 GMT

When should you offer casual employees a permanent position?

Recent court cases involving casual workers have increased attention on casual worker classification, which means your workers may be more aware of the ability to convert to a permanent position.

The law has not changed; however, these cases are good reminders for employers to be aware of the rules around converting casual employees to permanent positions.

What Makes an Employee Casual?

Note that there is such a thing as a long-term employee. Long-term casuals may be eligible for flexible working arrangements, parental leave and long service leave, even though they don't have guaranteed hours of work or expectation of ongoing work.

When Does a Casual Employee Become Permanent?

This is addressed in most modern awards in a casual conversion clause. Employers should check the relevant award provisions to see if there is an obligation to offer a part-time or full-time position, then follow the directions about offering positions.

Example of Casual Conversion Rules

Each award must be checked for details, however there are similar guiding principles.

There are more provisions and details in each award's casual conversion clause - employers need to check the applicable award to make sure they comply with the casual conversion requirements.

Visit the Fair Work Ombudsman Casual Employee webpage for more detail.

Talk to us if we can help with payroll management and assessing the classification of your workers.

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Key numbers to focus on in your business now

Sat, 01 Jan 2022 11:53:00 GMT

Key numbers to focus on in your business now

As a business owner, it's always been helpful to have an understanding of accounting - but in the post-lockdown world, it's never been more important to have a good grasp on your finances.

With the business world irreparably changed by the impact of coronavirus, your business is facing a 'new normal'. Priorities have changed, customer behaviours have mutated and revenue streams have had to evolve and pivot in order to create a viable post-lockdown business model.

To track, monitor and drive your financial performance in this new business world, it is increasingly important to have a handle on your key financial reports and metrics.

Getting to grips with your financial reports

Whereas in the past, extra cash in the business may have been seen as a surplus that needed to be spent on something, COVID-19 has shown us that having these reserves is vitally important for survival and long-term health of businesses.

To truly be in control of this cash, it is vital that you can dip into your accounts, financial reports and dashboards and 'see the genuine story' behind your financial position.

So, what are the key reports to focus on? Let's take a look:

Talk to us about accounting and financial reporting for your business

We can run you through the key reports in your accounting software, and can help you track performance, take action and prepare your company for surviving the new business normal.

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Are you paying too much tax?

Sat, 01 Jan 2022 11:53:00 GMT

Are you paying too much tax?

Paying tax is an inevitable part of doing business.

The more your income grows, the more tax you are liable to pay. You are rewarded for your success with a bigger tax bill.

While we don't want our clients to avoid paying tax or evade the tax department. We do want our clients to only pay the amount of tax they are legally liable for.

Many business owners don't understand the tax deduction and other benefits available to them.

We want to help you arrange your financial affairs so you can minimise your tax and pay only what you should. Tax legislation is constantly changing. Our team are up to date with any changes and understands how changes can affect our clients.

Changes to your personal circumstances can also affect how much tax you need to pay. There could be a better way to structure your affairs, so you pay less tax.

Some examples of areas where you could save tax include:

We can assess your tax situation.

We can review your financial reports and identifying potential tax saving opportunities in your business to determine the most appropriate tax structure for your circumstances. We can also advise on the financial implications of your current and planned arrangements.

We won't just make recommendations; we will ensure you understand your tax obligations and give you peace of mind that you are compliant with all tax legislation.

Knowing exactly how much tax you will have to pay means you can set aside the right amount of money on a regular basis, so you are prepared for the bill and won't incur penalties or interest.

"The only thing that hurts more than paying an income tax is not having to pay an income tax." - Thomas Dewar.

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Do you know what you dont know

Sat, 01 Jan 2022 11:53:00 GMT

Do you know what you don't know?

There is a simple concept call The Knowledge Pie.

This concept segments one's personal knowledge into three key area's; what we know, what we know that we don't know, and what we don't know that we don't know. You might want to read that again.

An example to better explain: Jane, a young qualified plumber and business owner, knows how to do plumbing. She also knows that she does not know how to do a Tax Return... or orthopaedic surgery. however, she doesn't know that she does not know that is she tightened her Terms of Trade and debtor management policy, she would get paid faster and improve her cashflow, making her business life less stressful.

No-one knows what they don't know.

Many people think this 'cluelessness' is a lack of experience thing that effects young people...but everyone, even experts, are completely unaware of what they don't know that they don't know.

Imagine the average pie for any person...it could be lemon meringue or steak and cheese - you choose. Now, cut your pie on half and cut one half in half again (creating two quarters). One quarter represents what you know, one quarter represents what you know you don't know, and the half represents what you don't even know that you don't know.

How do I learn about what I don't know even know that I don't know?

Some ways to grow your knowledge this year:

Growing your knowledge can grow your business.

The fact is that for all of us there is much more that we don't even know we don't know than what we actually know. Breathe it's ok.

Next fact: we will be more successful in life and business if we remain open to new learning, and learning extensions and distinctions on what we already know.

Avoid having an 'I know' mentality about the things you do know about.

Some people close their minds when hearing about a topic they have knowledge of. They may assume that they know it all. But we can always know more... and it we shut ourselves down to a new learning, we could miss an important distinction that could make a big difference.

Get in touch if you are interested in how we can help you extend yourself this year.

"Those who keep learning, will keep rising in life." - Charles Munger

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Reinventing your product and service offering post-covid

Sat, 01 Jan 2022 11:53:00 GMT

Reinventing your product and service offering post-Covid

During times of crisis, we are forced to reinvent the way we work and what we work on to remain sustainable. From technology adoption to product innovation and blowing up stale processes, a crisis forces us to start with a fresh page and plan for a better, more resilient business.

Four ways to reinvent your business post-Covid:

Remember, you are defined by what you say 'no' to as much as what you say 'yes' to. Test the market, reach out to loyal customers and seek how you could innovate, re-engineer, adapt or widen your lane to continue being their brand or supplier of choice.

Innovation is a key part of your Business Recovery Plan. Call us to see how we can help your recovery through developing more resilient products and services.

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Social distancing running effective online meetings

Sat, 01 Jan 2022 11:53:00 GMT

Social distancing: Running effective online meetings

In unprecedented times, businesses must adapt to remain productive. If face-to-face meetings are a key part of your daily business operation, here are some tips to take your meetings online with minimal disruption.

Find the nest system for you.
Thee is a range of free or low-cost platforms, including GoToMeeting, ex Talks, Join.me, Zoom, Google Hangouts, and TeamViewer.

Before you choose one, consider:

Schedule your meeting.
Depending on your chosen system, consider how you schedule your online meetings. It may be that you include a link generated by your system into an email calendar invitation. However you do it, make it easy for your meeting attendees to be reminded of the meeting and access the meeting at the time.

Check your tech.
Do you need a webcam (usually built into laptops) or an audio headset? These are a must for any online meeting. Communicate the need for this technology to your meeting attendees, and if required consider completing a quick online tech-check before the first meeting.

Set a clear agenda
Like any face-to-face meeting, you will need a well-structured agenda to follow. You will also need to specify the time a length of the meeting, and respect this. Decide who will take minutes, define the next steps, and if appropriate - BAMFAM (Book a meeting, from a meeting).

Does it need a meeting?
These unfortunate times act as a friendly reminder that some meetings can be emails. Consider using free tools such as Loom to document a longer and more engaging message in a video to send via email. The recipient can view the video multiple times before responding, resulting in a more considered reply.

Online meetings have been a great tool for global businesses for some time; maybe it is time for your business to adopt online meetings as part of social distancing. They also create capacity for you to do other, more productive, things through reduced time spent travelling to face-to-face meetings.

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How to increase profit cashflow and business value

Sat, 01 Jan 2022 11:53:00 GMT

How to increase profit, cashflow and business value

The better you understand your business, the easier it will be to increase your profits and fee up your cashflow.

As a business owner, you must understand which Key Performance Indicators (KPIs) are critical to your business. These are the critical success factors that drive profit, cashflow and business value and are used to measure the efficiency of different activities.

Do you regularly monitor your KPIs to ensure continuous improvement? Are you measuring the KPIs which have the greatest impact on your business? Have you set targets to improve them?

Making small changes to improve these key drivers can have a huge impact on the success of your business.

There are three stages to KPI important:

"Not everything that can be counted counts, and not everything that counts can be counted." - Albert Einstein

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Fundamental three to successfully scale up your business

Sat, 01 Jan 2022 11:53:00 GMT

Fundamental three to successfully scale up your business

There are three fundamentals to successfully scale up your business: having a clear organisation structure, having comprehensive systems, and developing great leadership.

Heard the quote, "What got you here won't get you there"? These are wise words (and the title of a book you should read!) are from Marshall Goldsmith. Choosing to scale your business does not come without risk!

Many leaders focus on their systems and teams when looking to scale, which is important, but they must also focus on scaling themselves.

Fundamental three: developing great leadership

Most reasons why businesses fail, directly and indirectly, point to leadership failure.

From poor planning to poor hiring, poor communication to poor process, poor capacity to poor execution - most things can be fixed with great leadership.

Scaling the business will make new demands on a leader's time and attention and it's critical that these are both focused on the right things:

Great leadership is about influencing others in the direction of a common goal.

While there can only be one leader of a business, there are seven operational departments that need individual leaders. People can lead multiple departments initially but, as the business grows, should look to empower others and delegate the leadership of some departments to 'leaders in training'.

On a scale from 1 to 10, how well do you rate your performance on the above six categories? Where can you scale your leadership? Need help? Get in touch.

"The function of leadership is to produce more leaders, not more followers." - Ralph Nader

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Fundamental two to successfully scale up your business

Sat, 01 Jan 2022 11:53:00 GMT

Fundamental two to successfully scale up your business

There are three fundamentals to successfully scale up your business: having a clear (and documented) organisation structure, having comprehensive systems and processes, and developing great leadership.

With growth comes growing pains. Such pains can affect team morale as well as your margins. It is critical to pre-empt potential friction and put systems in place to ensure you scale up with minimal disruption.

Fundamental two: documenting your systems and processes

It's essential that you regularly review your business's systems and have clearly documented processes in place - for consistency, efficiency, and so that you can delegate more responsibilities to your team.

None steps to establish great systems:

"Speed is useful only if you are running in the right direction." - Joel Barker

We can help you review and improve your critical business processes.

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Want more money more time or less stress

Sat, 01 Jan 2022 11:53:00 GMT

Want more money, more time or less stress?

We believe our clients all deserve the three freedoms: Financial Freedom; Time Freedom; and Mind Freedom. In other words, more money and time to spend on important things outside of their business, along with less stress. Is your business stifling your freedom?

Being in business is tough. At times, you might be worried about whether you will have enough cash in the bank to pay your team suppliers. Perhaps you are working 80-hours a week just to stay on top of things. Or, maybe the stress of daily business life is impacting how you turn up at home.

How would having Time Freedom impact your life?

As a business owner, do you feel like you need to be the first to arrive, the last to leave and even take work home with you? You could be too busy working in the business to spend time working on your business strategy. it is also highly likely that there is little time left for friends and family, let alone yourself.

We can help you achieve balance so that you are not only less stressed in your home life, but more effective when you are working in your business.

What is Mind Freedom?

mind Freedom is being able to sleep soundly at night. It's not burning yourself out before taking that much needed holiday, and it's not getting sick the moment your holiday starts.

Attaining financial and time freedom can be the first step to achieving mind freedom. More money in the bank and more time outside your business generally leads to better perspective and less stress.

We believe it is not only our duty to help our clients meet their taxation obligations, it is our duty to help them achieve Financial, Time and Mind Freedom.

"Your business should deliver you the cashflow you need and the discretionary time to enjoy it."

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The 7 key governance capabilities

Sat, 01 Jan 2022 11:53:00 GMT

The 7 key governance capabilities

Effective governance is a learned skill and is one which is improved on the job. There are seven key capabilities, or skill sets, you should focus on to improve your governance skills and become an effective director. There are:

Good governance isn't so much about learning a set of rules and procedures; it is about having a mindset that is always learning and developing the skills required to be an effective leader.

"Most great leaders do not start as great leaders. They grow into great leaders." - Jim Collins.

Need a hand developing your governance skills? We are happy to share our knowledge! Get in touch.

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The JobKeeper Payment - support for Australian businesses and sole traders

Sat, 01 Jan 2022 11:53:00 GMT

The JobKeeper Payment: support for Australian businesses and sole traders

The Government has announced a new measure to support Australian businesses, employees and sole traders. The JobKeeper Payment aims to support businesses to maintain their income and connection with employees. These connections will enable businesses to reactivate their operations quickly after the crisis.

The JobKeeper Payment

Eligible businesses will be able to claim $1,500 from march 30, per fortnight per eligible employee for a maximum of 6 months. Payments will flow from the first week of May but will be backdated to March 30.

Who is eligible?

The JobKeeper Payment will be available to full-time workers, part-time workers, sole traders and casual workers (casual workers must be employed on a regular basis for longer than 12 months as at 1 March 2020.

Eligibility is as follows:

Note: The JobKeeper payment must be reported as income. If you are a non-employing sole trader this payment may affect your eligibility for payments from Services Australia.

What do I do next?

Eligible businesses can apply to the ATO and you will need to provide a monthly update, including the number of eligible employees by the business.

We can help.

Talk to us about The JobKeeper Payment and other support available to your business

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What is intellectual property and how do I protect mine

Sat, 01 Jan 2022 11:53:00 GMT

What is intellectual property? And how do I protect mine?

Intellectual property (IP) can be one of the most important assets you own as a business.

Your IP covers the ideas, processes, inventions and product features that set your company apart from the competition. It may be that you have developed a software algorithm that drives your cloud applications, or a special kind of seal that helps keep your food products fresh. In a nutshell, your IP is anything that a competitor would love to copy (or seal) in order to replicate your products, services or industry knowledge.

Protecting the legal ownership of your IP is a prudent move, and in most cases this will be done using a patent, copyright or trademark.

What is a patent?

A patent is used to protect a specific process, invention or product innovation, giving your company exclusive use of this specific process or unique product type.

A patent requires you to file a design for your innovation, giving an unambiguous explanation of how the process works, how the product is made or how your unique new invention achieves its intended purpose. As a business, you pay to file this patent with your relevant government body, and then will have exclusive rights to this innovation for a given period.

Patenting a new idea allows you to protect any innovations - giving you a competitive edge over other companies in your sector.

What is a copyright

Patents protect a new process or innovation, whereas a copyright protects original works produced by your business. These can be published or unpublished works and could cover anything from books, sound recordings, software applications or even works of art.

As with patent, a copyright gives you exclusive rights and allows you to copy, reproduce and publish any copyrighted assets owned by the business.

What is a trademark?

Whereas a patent protects a specific invention, a trademark allows you to protect the logos, words, brand phrases or symbols associated with your goods and services.

Once you've trademarked a particular element of your brand, that prohibits your competitors from using and benefitting from that trademarked item. As an example, the Nike 'swoosh' on the side of their shoes cannot be copied, replicated or used by any other manufacturer - unless you fancy a very expensive and fruitless legal case!

Cadbury, the chocolate manufacturer, even attempted to trademark it's own distinctive shade of the colour purple - although this trademark attempt has recently failed.

Talk to us about protecting your company's IP

If you have intellectual property that is currently not protected, come and talk to us. We can put you in touch with the relevant IP law specialists, so you can set up the patents, copyrights or trademarks you need to protect the future of your business.

Get in touch to start securing your IP assets.

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5 ways to prevent or deal with out of stocks

Sat, 01 Jan 2022 11:53:00 GMT

5 ways to prevent or deal with out-of-stocks

Out-of-stocks are one of the worst problems you can have as a retailer. Not only do stockouts lead to lost sales, but they can also lower your customer satisfaction levels.

Here's the good news: there are several things you can do to prevent and deal with out-of-stocks. It starts with having good systems in place so you know your stock levels. You can't have accurate numbers if you're not tracking and updating them.

There are some simple ways to get on top of stockouts.

Manual stock-taking can be time-consuming and disruptive. We can help you establish the systems you need in your business and if working capital is holding you back, we can help identify ways to stabilise your cash flow, so you can grow your business.

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PAYG Instalment Variations and Refunds to Assist Cash Flow

Sat, 01 Jan 2022 11:53:00 GMT

PAYG Instalment Variations and Refunds to Assist Cash Flow

PAYG instalments are payments made towards an expected future income tax bill on a quarterly basis. Once the tax return has been completed for a year, the tax liability is calculated and any instalments paid during that year are credited towards the tax bill. The business then either receives a refund or pays the balance owning. PAYG instalments are designed to make the tax bill easier by paying in advance.

The ATO is allowing businesses that usually pay instalments to vary the amount to nil on the March and June 2020 activity statements to assist with cash flow during the Coronavirus crisis.

Whilst instalments can be varied to a lower amount or to nil, (without incurring the usual penalties for incorrectly varied instalments), it is important to remember that income tax may still be payable once your tax return has been completed.

Whilst your business may have dramatically reduced turnover, if the business makes any profit or if sole traders earn above the taxable threshold, income tax will be payable. There will of course be the option to enter into an ATO payment plan for income tax debt if needed.

Instalments already paid against the September 2019 and December 2019 activity statements can also be refunded by the ATO. This may be useful to assist cash flow, but for some businesses it will make more sense to leave instalments paid with the ATO, and to consider varying March and June instalments.

Talk to us about whether varying your PAYG instalments downwards will help your business to stay afloat. We can also apply for PAYGI refunds on your behalf if that is applicable for your business.

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The value of cashflow forecasting during a crisis

Sat, 01 Jan 2022 11:53:00 GMT

The value of cashflow forecasting during a crisis

Projecting your cashflow pipeline forwards during a crisis is vital.

To be able to navigate the future path of your cashflow, you need to start forecasting - so you can map out your financial position over the coming months and can take the appropriate action to safeguard your cash position.

Plus, when you have access to detailed forecasts you can scenario-plan, search for cost-savings and look for strategies that will preserve your cashflow position.

Forecasting your future cash pipeline

Projecting your cashflow pipeline during a crisis is vital. Having access to detailed forecasts help you to scenario-plan, search for cost-savings and look for strategies that will preserve your cashflow position.

Remaining in control of the cash coming into (and going out of) the business is the real focus, so you can accurately predict your financial position and can resolve any issues.

Key ways to get more from your forecasting

Talk to us about setting up cashflow forecasting

Forecasting is an important step to give you the business intelligence to support your decision making.

Get in touch to improve your control over cashflow.

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Smart wasy to get rid of excess stock

Sat, 01 Jan 2022 11:53:00 GMT

Smart ways to get rid of excess stock

For retailers, having excess stock will not only take up precious backroom or shelf space, but can also tie capital and can keep you from re-investing in your business or buying things you actually need.

Excess inventory can be a result of purchasing decisions, marketing or a change in the marketplace.

However, there are a number of things you can do to sell or liquidate your slow-movers.

When handled properly, excess inventory can actually open up sales, customer engagement, and tax opportunities for your business.

Need help in your retail business? We can help you understand the numbers in order to optimise profit.

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How to build stronger relationships with your suppliers

Sat, 01 Jan 2022 11:53:00 GMT

How to build stronger relationships with your supplier

Building and maintaining great supplier relationships is a must if you want to stay competitive in retail. Having strong relationships with vendors will ensure that your shelves are healthily stocked with great products that bring delight to your customers.

Here are some ideas on how you can do just that:

Come up with carefully-crafted agreements - Don't over-rely on boilerplates contracts. make sure your agreements are tailored to each vendor. This requires some upfront work but it will help you maintain a smooth relationship later on.

Talk to suppliers even when you don't need to negotiate - Check in with your suppliers regularly, even if you're not placing orders or negotiating a contract. Discuss the current state of the industry and talk about any priorities, plans, launches, etc. During these informal conversations, your vendors will likely be more relaxed and share information more freely.

Think of your suppliers as partners rather than just mere vendors - This may not apply to all your suppliers, but in some cases, it helps to think of vendors as partners that you work with, rather than third parties who simply provide products and services. Adopting a "partnership mindset" can help you strengthen your relationships, so you can work better together.

Invest in product forecasting and share data - This will help keep you and your suppliers on the same page when it comes to inventory management and allow you both to optimise the ordering and fulfilment process.

Be an excellent client - This sounds obvious, but you'd be surprised at the number of businesses that neglect professional courtesies. Things like strictly adhering to payment terms and being polite and friendly can go a long way in nurturing strong supplier relationships.

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How to upsell and cross-sell in retails

Sat, 01 Jan 2022 11:53:00 GMT

How to Upsell and Cross-Sell in Retail

With the current retail climate, it is more important than ever to provide tremendous value to your customers and maximise your sales.

One way to accomplish this is to increase your store's average basket size and order value through upselling and cross-selling.

JobKeeper Scheme extended and amended

Sat, 01 Jan 2022 11:53:00 GMT

JobKeeper Scheme extended and amended

JobKeeper extended until March 2021

The government has announced changes to the JobKeeper payment scheme, which will see it continue until March 2021.

The current system will remain unchanged until 27 September 2020 as planned, providing $1,500 per fortnight for employees and eligible business participants.

However, from 28 September the changes will apply.

There are several amendments that business owners need to be aware of, including different tiers of payment that apply over two separate time frames, as well as further eligibility tests. This means that some businesses currently receiving JobKeeper will no longer be eligible after 28 September, and others will continue to be eligible after 28 September, and others will continue to be eligible but will receive less subsidy from the government.

New Rates for 28 September 2020 to 3 January 2021

New Rates for 3 January 2021 to 28 March 2021

Business eligibility

To continue to receive JobKeeper payments, businesses will be required to prove an actual reduction in turnover of 30% or more for both the June and September quarters to continue to receive the subsidy from September 2020 to January 2021.

Businesses will then be required to again satisfy a reduction in turnover test for all three quarters of June, September and December, to receive the subsidy from January 2021 to March 2021.

The eligibility rules have not changed - check the ATO Eligible Employers webpage for details of proving reduction in turnover.

Businesses that have not satisfied the reduction in turnover tests in previous months can still enter the system any time upon meeting the eligibility requirements.

Plan now for the reduced rates

Although we have another couple of months before the changes apply, now is the time to start planning for the reduded JobKeeper rates, both for employees and business participants. We can help you assess your eligibility for remaining in the system beyond September 2020.

Talk to us about how the changes will affect your business operations and costs, and to update cash flow plans and budgets.

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Understanding your revenue drivers

Sat, 01 Jan 2022 11:53:00 GMT

Understanding your revenue drivers

For your business to make money, you need to generate revenue.

You produce revenue through your usual business activity, by making sales, getting your invoices paid, or taking cash from paying customers. So, the better you are at selling your products/services and bringing money into the business, the higher your revenue levels will be.

But what actually drives these revenue levels? And how do you get in control of these drivers?

Knowing where your cash is coming from is more crucial than ever

As a trading company, you face the multiple challenges of a global recession, an increase in online consumer buying and a 'new normal' when it comes to trading, markets and buying expectations. The better you can understand the nature of your revenue and its drivers, the more you can flex, manage and control your ability to generate this income.

This helps your medium to long-term strategic thinking, and your decision-making, allowing you to be confident that you are focusing on the business areas that deliver maximum revenue.

Import areas to consider will include:

Talk to us about exploring your revenue drivers

If you want to boost revenue and increase your overall profitability, come and talk to us. We will review the numbers in your business, help you to understand your revenue drivers and will give you proactive advice on enhancing your total revenue as a company.

Get in touch to kickstart your revenue generation.

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New super carry forward rules

Sat, 01 Jan 2022 11:53:00 GMT

New Super Carry Forward Rules - Maximise Your Contributions

If your superannuation fund balance is less than $500,000, a new rule means you are able to carry forward any unused concessional contribution from prior years into following years. This allows you to maximise the tax benefits of contributing the upper limit concessional amount.

It also gives you some flexibility with being able to contribute more in years that you have the cash flow to do so. This is useful for people whose income has been interrupted or for those how receive larger than usual income some years.

Once your fund balance reaches $500,000 you won't be able to carry forward unused amounts. Also, unused balances can only be carried forward for up to five years.

The new rule applies from 1 July 2018. This means that the 2020 financial year is the first year in which you can top-up your super contributions by the carry forward amount. This year, there is only one year (2019) of unused cap that can be carried forward. In 2021, there will be two years of unused balance available to carry forward and so on, up to a maximum of five years balance to carry forward in the 2024 financial year. Assuming the law doesn't change, the five-year expiry rule will continue from then.

What are Concessional Contributions?

Concessional superannuation contribution are those made to your super fund before tax. This includes compulsory employer superannuation guarantee contributions, additional employer before-tax super and salary sacrifice amounts.

It may also include personal contributions you make as tax deductions, for example, sole traders who contribute to their own super fund.

Roll over unused concessional balance example

If you contributed $15,000 in the 2019 financial year, and you fund balance is less than $500,000, you can contribute an extra $10,000 in the 2020 financial year, above the usual $25,000 concessional cap, bringing the total for 2020 to $35,000.

As another example, let's say as a self-employed person you did not contribute any superannuation for 2019 to 2023. In the 2024 financial year, you could then contribute $125,000 to catch up to the allowable concessional contribution cap for the previous five years.

Concessional contributions checklist

Get advice before making extra contributions

If you contribute too much to your super fund you may end up with a tax bill! If you're keen to get tax benefits of maximum contributions, talk to us now before your super fund deadline and we will help you build your super balance. We can also help you start planning for the following year's contributions.

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Reduce your debtor days and imrpove your cashflow

Sat, 01 Jan 2022 11:53:00 GMT

Reduce your debtor days and improve your cashflow

Managing the gap between the receiving money into your business and paying money out of your business is vital for sustaining viability.

Debtor days is the average number of days taken for a business to receive payment for goods or services. Keeping track of the average number of days for a business to receive payment is important in understanding the cashflow gap you might experience and the impact on cashflow planning and budgets.

How to Calculate Debtor Days

(Year-end receivables amount ÷ annual sales) x 365 days = average debtor days.

Here's an example: An IT consultant has in her terms and conditions that payment is due 21 days after invoice date. But she is interested to know what the actual average payment time is.

Trade debtors at 30 June 2019 = $35,000

Annual sales for 2019 = $478,000

(35,000 ÷ 478,000) x 365 = 26.7 days

With this information, she can either alter her cashflow planning according to the actual time-frame or take steps to educe the average number of debtor days.

What can you do to reduce the payment times?

During tough times it can be difficult to get paid on time. Use low activity phases in your business to update your terms and conditions, implement alternative payment options, think about ways of making it easy for customers to pay you and clarify information on your website.

Talk to us about adding payment options, updating your software and improving business systems to assist in reducing the numbers of debtor days to improve your cashflow. We can also look at average debtor days of your business compared to industry averages and discuss ways of managing cashflow during difficult periods.

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Tracking your online success with Google Analytics

Sat, 01 Jan 2022 11:53:00 GMT

Tracking your online success with Google Analytics

Online shopping and web-based sales have soared in recent times, in response to the multiple challenges faced by consumers and businesses during the ongoing global pandemic.

If your business has a great website and an ecommerce platform in place, that's great news. But how do you track and manage the success of your online sales activity? And what are the best ways to boost your sales and improve your online conversion rates?

The answer is to dive into website analytics and the basics of Google Analytics.

Getting a handle on Google Analytics

In the digital world, your company website is your main 'shop window', and will be the focus of much of your sales, marketing and social media promotional activity.

If the lion's share of your sales activity is taking place in the online space, it makes good business sense to get in control of your online success rates and performance - and that means getting your head around the basic of online analytics.

A tool like Google Analytics allows you to keep a close eye on the performance of your website, your product/service pages and your sales as a business. When a potential customer visits your site, that interaction can be measured in three key ways through your analytics:

Improving your online sales performance

You can take a dive deep into Google Analytics, or you can stay high level and get a more holistic overview of online activity and the performance of your pages - it all depends how granular you want to get, and how much time you have to drill down into the details.

The main concept is to track the important numbers and metrics over time, allowing you to refine your sales approach, or update your online content accordingly.

Some key things to monitor include:

If you are serious about exploring your online analytics, Google Analytics Academy has courses that teach you the basics of Google Analytics to help you understand the data and how you can enhance your online presence.

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Create a one-page business plan

Sat, 01 Jan 2022 11:53:00 GMT

Create a one-page business plan

To make a success of your business, you are going to need a robust business plan - particularly as we face challenging times.

With a one-page business plan behind you, the company has a real sense of strategic direction and a set of core goals to refer to and track against.

But what are the key elements to include in your one-page business plan? We have listed some of the foundational areas to cover, so there's real purpose behind your return to trading.

What to include in your business plan

Lots of online resources will suggest that a business plan is an easy document to create, but a good plan will take time and plenty of thinking to get right.

As business advisers, we will help you put together a plan that gives you a clear strategy for the next six months and beyond, with measurable goals to include in your plan. The resulting document will help give you clarity on your directions, and where to invest time and money.

A business plan will also be an essential document if you are looking for investors or external funding. Any loan providers or private investors will want to assess the risk in your business, you cashflow position and the underlying profitability of the enterprise - so bear this all in mind when outlining the financial details of your plan.

If you haven't written a plan before, a template is useful. Start with the following headings:

Talk to us about creating your one-page business plan

Whatever your situation, the next new months are likely to be rocky road.

We will help you create a tailored business plan, to guide you through the threats and opportunities that lie ahead, with solid financial management for the next stage in your growth.

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Selling your business Make a plan

Sat, 01 Jan 2022 11:53:00 GMT

Selling your business? Make a plan

When it's time to sell your business you will want the best price for it. And the sooner you plan for sale the better, so that your business is in the very best shape to attract an investor.

The more attractive the business looks in the market, the better the price you'll achieve, or the better the yield you will see on selling your company shares. Your business will mean a lot to you, but a buyer will have a more rational and pragmatic viewpoint.

Take some time to get your house in order for a potential buyer, so you can present your business as an opportunity.

If you are looking to sell up, you will need a plan. Come and talk to us about creating a workable exit strategy, with clear focus on driving value and delivering a solid return on your investment.

Get in touch to build your exit strategy.

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Managing cashflow and accessing emergency funding

Sat, 01 Jan 2022 11:53:00 GMT

Managing cashflow and accessing emergency funding

Working capital is a vital component of any successful trading business - providing the liquid cash needed for everyday operations. Suddenly finding your business - providing the liquid cash needed for everyday operations. Suddenly finding your business without this cash can be a shock, but there are ways to fill these cashflow holes and get the company back on track.

In short, it comes down to careful cashflow management, and ensuring you have the best possible routes to additional finance and funding provision.

Key ways we can help include

Talk to us about getting on top of cashflow

It is likely to be a rocky road for many businesses over the next few weeks and months. So, working together as a business community to support each other will be essential.

If you would like to get in control of your cashflow management and funding needs, we are here to help. We can help you crunch those cashflow numbers, access the nest possible routes to funding and remove some of the worry during these testing times.

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Get your business records ready for your tax return

Sat, 01 Jan 2022 11:53:00 GMT

Get your business records ready for your tax return

Whilst it is not exactly business as usual right now, you still need to prepare for your business tax return. Organising your documents now will mean you can get your tax return completed earlier and access any refunds due or start planning for tax payments.

Getting your business records up to date and accurate will allow us to work with you proactively to plan for the coming year, which will continue to be unusual (and possibly difficult) for many.

It will also be one less thing to do when your normal business activity resumes later in the year.

What records do you need to have ready for the tax agent?

We will let you know if there are any other matters to discuss with us before completing your tax return, such as capital gains, vehicle usage, private usage apportionment or superannuation. This year, there may also be new elements to discuss if you have received refunds, credits or deferrals of business expenses and liabilities. Remember you need to keep all your business records for seven years, so store everything securely and where possible electronically for safety and ease.

Once you have all your records for the 2020 financial year, make an appointment with us to schedule in your tax return for prompt lodgement.

Tax Tips for property investors

Sat, 01 Jan 2022 11:53:00 GMT

Tax tips for property investors

If you have income from investment properties, now is the time to start gathering your records and reviewing your expenses for the 2020 financial year.

Income to Declare

All income earned from each property must be declared. If you have multiple properties, keep the records for each property separate to make the tax return more efficient.

You will need statements or recipient created tax invoices from agents or management platforms and documents for all other payments received.

Tax Deductions

Deductible expenses for property are different for residential and commercial properties. Not all expenses related to owning a property are allowed as deductions, so it is important to check what you can claim.

Expenses you may be able to claim this year

There are some expenses which need to be claimed over a longer period such as several years or decades. These can include borrowing expenses, capital expenditure, depreciation, initial repairs and capital works. Some expenses cannot be claimed for. These include stamp duty, loans and repayments, some legal expenses and some insurance premiums.

Get help to simplify your return

Tax matters for property investors can be complex. The ATO keeps a close eye on tax returns that involve property investments, as it is easy to make mistakes. There are other matters to consider such as the period of rental availability, private use of the property, capital gains tax, legal contracts and positive or negative gearing.

We can help ensure you are claiming the right deductions to make the most out of your investment property this year and beyond. Talk to us now to prepare for you 2020 tax return.

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The four kinds of sellers

Sat, 01 Jan 2022 11:53:00 GMT

The four kinds of sellers

We've all had a bad salesperson experience.
From being jumped on as you enter a store (leaving with unwanted steak knives) to being completely ignored. Chances are, we have shared that experience with family, on social media, or maybe even left a scathing online review.

So, how do you ensure your customers have a great experience and rave about it to everyone? Teach them how to be the right kind of seller.

There are four kinds of seller:

The Order Taker waits for you to come to them.
Not proactive or engaging in nature, they will be waiting for you to drive the sale. This is hardly selling. Perhaps appropriate if you own a small coffee shop but even then, your people must engage and delight your customer to maximise the sales outcome.

The Product Pusher tries to sell everything at once.
Not really interested in customer needs, they are trying to sell as much as they can, by any means. This can scare off customers or lead to buyer regret, potentially causing brand damage.

The Overseller will say absolutely anything to make a sale, regardless of whether it's true.
The Overseller doesn't care about customer needs or building relationships; causing inflated product expectations and disappointment. This will damage your reputation and could result in legal action for misleading customers.

The Problem Solver identifies and solve customers' problems.
They ask questions, listen attentively and offer solutions in the form of your products or services. They build trust, show empathy, and create enduring customer relationships. This is sustainable selling as it's six times cheaper to sell to an existing customer, and the value of a relationship goes up over time.

Your sales team must be Problem Solvers.
Statistically, customers tell 10-20 people about a bad experience but only 2-3 people if they have a good one. A bad experience with a salesperson can put a customer off your business forever and they will probably taint your business for others.

It is crucial to upskill your sales team and clarify your expectations to ensure they approach customers from a place of helping.

We can help you empower your sales team to be Problem Solver sellers who ask the right questions and clearly articulate the value of your offerings, so the customer wants to buy and has an awesome experience.

Get in touch to find out more!

Mesuring customer advocacy with NPS

Sat, 01 Jan 2022 11:53:00 GMT

Measuring customer advocacy with NPS

We've all ranted to family and friends about a bad customer experience. Chances are, the worse the experience, the more people we told. Statistics say that on average we tell 20 people about a bad experience but only three when we have had a great experience.

Do you know what your customers say about you? Net Promoter Score is a great way to find out.

The Net Promoter Score (NPS) asks customers to rate your business on a scale of 0-10 how likely they are to recommend your business to a colleague, friend, or family member.

Your customers are then divided into three types: detractors, passives and promoters.

Detractors: Customers who score you between 0-6 and are very unlikely to recommend your business.

In fact, they are likely to damage your brand by discouraging others from engaging your business. It's essential these customers are followed up to remedy their bad experience.

Passives: Customers who score you 7 or 8 and are considered neutral.

They were pretty happy with their experience and it is likely that their expectations were met, but not exceeded. They are unlikely to rave about you and won't necessarily remain loyal to your brand.

Promoters: Customers who score you 9 or 10 and are likely raving advocates.

Their experience exceeded expectations, so they will recommend you to their friends and family and remain loyal to your business.

promoters drive your growth, so it's important to reward them and ensure they receive a consistently great experience every time.

To calculate your Net Promoter Score, use the below formula:
Percentage of Detractors - Percentage of Promoters = Net Promoter Score
This gives you a score between -100 and 100.

What your score means.

This higher the score the better; as it means more customers are likely to recommend you. It's widely accepted that a score over 20 is favourable, over 50 is excellent and above 80 is world class. Check out NPS benchmarks for your industry to get clearer on where you should be aiming.

The most important thing is to monitor your score and continually improve it. Part of this will include developing processes to follow up customers, in particular those who gave a low score.

We can help you implement strategies to increase your Net promoter Score.

"The purpose of a business is to create a customer who creates customers." - Shive Singh

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How to safeguard your teams mental health

Sat, 01 Jan 2022 11:53:00 GMT

How to safeguard your team's mental health

The coronavirus pandemic has forced a significant amount of change and upheaval onto you and your team - in a very short amount of time. We have gone from 'business as usual' to closed offices, working from home and the full reality of isolation during an emergency lockdown.

To combat this change, it is important to take steps to care for your employees.

Key ways to take care of your teams wellbeing

There is now single solution when it comes to taking care of your employees' wellbeing. For your people to cope with their new enforced remote working life, they will need to consider everything from work/life balance, to fitness, exercise or their own mental wellbeing.

As a leader, your advice, tips and support will be vital to your workforce during these testing times. Important areas where you can provide guidance may include:

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How to create a cash flow forecast for your business

Sat, 01 Jan 2022 11:53:00 GMT

How to create a cashflow forecast for your business

A cash flow forecast is an important tool for business planning. And right now, understanding the cash coming in and going out of your business is vital.

A cash flow forecast will show you how long your business can continue to survive on current sales levels, by showing you how much money you will have in the bank at the end of a period.

It will give you an understanding of what the revenue drivers are in your business, and give you visibility of your expenses and the things you can control. Having, this information in a forecast will also allow you to plan for different scenarios, work out your priorities and understand the outcomes of different options such as diversification.

A cash flow plan can give you a proactive tool to deal with uncertainty. If you are seeking funding in the form of a loan, applying for business support or just establishing your long term survival, you will need a cash flow plan.

What information do you need?

We can help you to create a plan for your business. The plan is only as good as the data you have. So here's what you will need to get started:

Understanding where your cash is coming from

Start with revenue from sales - break your sales figures up by product line and across channels. This will show you where the cash is coming from. For example:

The data you collect will enable you to ask questions, such as can you reduce margin to lift sales, can you push volume up or are there other channels to sell through?

Make sure you include all other revenue streams, such as grants, tax refunds or investment in your cash inflows.

Understanding expenses - where is the cash going to?

This will include all the costs associated with your business, including rent, wages, supply materials, bank loan fees and charges, tax bills, and electricity.

If you have a bank loan, include the details such as the length of the term and the monthly payments.

Your cash flow plan should also include tax payments when they are due and any critical expenditures.

Some of your variable expenses will directly relate to revenue such as freight or materials. When your sales stop, these will drop too, so your cash flow plan should reflect this relationship in order for you to scenario plan.

Controlling expenses - what costs are fixed and what are the variable costs that you can control? You may not be able to stop fixed expenses like rent, power and internet, but you could reduce the cash going out on petrol and travel, cleaning, and even directors' drawings.

Making informed decision in your business

A good cash flow forecast will collate all the data from your business on one place. It will allow you to plan and work out how long your business can weather a storm. It will also help you make decisions around staffing, purchasing inventory, ordering supply materials or investing in growth.

It's worth remembering that a cash flow plan is a different tool to a budget. Here's one example: a budget will show sales but a cash flow plan will show the cash benefit of those sales. If you offer credit to customers, your sales may not result in immediate cash flow.

Want to get a handle on cash flow in your business?

If you're not certain of how to get this information from your accounting software, talk to us about which reports to run. You may need a combination of accounting software reports and projected figures.

Use the information above to source the data you will need and get in touch. We can help you build a plan that gives you cash flow projections to assist your decision making.

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JobKeeper payment rules announced

Sat, 01 Jan 2022 11:53:00 GMT

JobKeeper Payment - rules announced

The JobKeeper payment is for businesses and not-for-profits that are significantly impacted by the Coronavirus pandemic, and the measures in place to restrict it.

The government package will give eligible employees $1,500 per fornight for 26-week period, running from 30 March to 27 September.

The Treasurer has now released rules governing the scheme. We will keep you informed as these are updated.

The one in, all in rule - Employers who opt to participate in the JobKeeper scheme must ensure that all eligible employees are covered. This includes all eligible employees who are undertaking work for the employer or have been stood down. The employer cannot select which eligible employees will participate in the scheme.

Notifying employees - If you have applied for the Jobkeeper payment you must notify all eligible employees that you have elected to participate and they will be covered by the scheme. You will need to provide them with a JobKeeper employee nomination notice.

Decline in turnover test - If your organisation does not qualify for the month of April 2020 because turnover has not been sufficiently affected, turnover can be tested in later months to determine if the test is met.

Paying employees in the interim - The JobKeeper Payment is a reimbursement scheme that will be paid by the ATO monthly in arrears. Talk to us about your options if you are experiencing cash flow difficulties now.

What if an eligible employee usually earns less than $1,500 per fortnight before tax? - If you want to claim the subsidy for an eligible employee and they have not been paid $1,500 per fortnight since 30 march 2020, employers must pay a 'top-up' payment to employees so that they are eligible. It is possible that some employees may receive more than their ordinary pay.

Failure to pay the payment to employees - If you receive the JobKeeper subsidy for an employee, you must ensure that the employee receives a minimum of $1,500 per fortnight, before tax. Failure to do so is a breach of the Fair Work act and may result in penalties as an individual and corporation, plus penalties under the Commonwealth Criminal code.

Superannuation - There are a number of scenarios related to superannuation:

Monthly reporting - Participation in the JobKeeper scheme requires monthly reporting including current GST turnover for the reporting month and projected GST turnover for the following month.

Does the JobKeeper payment cover other income loss such as rental income? - No. Only businesses with employees or self-employed people are eligible for the JobKeeper Payment.

Processing payments through your accounting and payroll software - Providers of this software are upgrading now to allow for easy processing of JobKeeper payments within payroll and will be ready by the time businesses receive the first payment.

###How to apply

The first step is to register your interest and subscribe for JobKeeper payment updates on the ATO site. This will allow you to check your eligibility. You will also get access to the forms for your employees.

From 20 April 2020, you can enrol for the JobKeeper payment using the Business Portal and authenticate with myGovID. You must do this by the end of April to claim JobKeeper payments for April.

Get in touch with your questions

We can provide further guidance on the JobKeeper Payment and assist with the reporting requirements for your organisations.

Facing challenges Change your mindset

Sat, 01 Jan 2022 11:53:00 GMT

Facing challenges? Change your mindset

As an adult we try to teach our children the things that took us many years to learn. One of the new buzzwords in schools is 'Growth Mindset'.

The theory of the growth mindset came from research done by Carol Dweck 30 years ago that investigated how students coped with failure.

In the study some students were devastated by small hurdles, while others were not deterred and kept trying. The researchers concluded that 'fixed mindset' individuals fear failure as they believe it is a negative statement about their innate abilities. In comparison, students, with a 'growth mindset' believe that their performance could be improved with effort, time, persistence and learning. Dweck argued that a growth mindset will allow a person to live a less stressful and more successful life.

In today's world, we are constantly having to tackle new things and learn new skills. The roles we started in as we entered the workforce have changed dramatically and the pace of change is more rapid than ever. It can be overwhelming...if you let it. Being conscious of your own mindset can be helpful.

Changing your approach can help relieve stress as we tackle new things.

Here are some tips:

Whether it is new technology, a process change at work, cloud accounting or getting your head around new marketing software. You are facing new challenges every day. New technology can give your business an edge but trying to get your head around it all quickly is challenging. So take it step-by-step. Set aside time to do some research, talk to others in your industry (or us), or take an online course so you are up-skilled and ready to make the decisions about next steps.

The challenges you face provide opportunities to learn and grow and might give you the ability to set your business apart.

So, next time you feeling like saying 'I can't do it', replace it with 'I can't do it, yet '.

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Prepare for finalising single touch payroll

Sat, 01 Jan 2022 11:53:00 GMT

Prepare for finalising Single Touch Payroll

If you have been reporting Single Touch Payroll (STP) to the ATO this financial year, you will need to make a final declaration. There is no need to issue payment summaries to employees you have reported through STP.

Large employers (with more than 20 employees) must complete the finalisation declaration by 14 July. Small employers (with 19 or fewer employees) have until 31 July to complete the finalisation.

You may have some closely held payees who have not been reported through STP, so you still need to issue a payment summary for anyone not reported through STP.

You will also need to submit a payment summary annual report (PSAR) for any payments outside the STP system.

If you are unable to make an STP finalisation declaration by 14 July, you can apply to the ATO for a deferral or issue payment summaries to employees by other means by this date.

Once the STP finalisation has been sent to the ATO, the employee's information will be released in their myGov account and listed as 'tax ready'.

STP Payroll Checklist

Be efficient and prepare as much as you can now so that you are able to finalise your data by 31 July (or 14 July for large employers).

Finalising Single Touch Payroll

It is important to verify payroll figures before finalising, in order to minimise the chance of errors and having to re-issue at a later date.

Once the payroll year is completed at 30 June, you can then analyse the payroll amounts for each employee and cross-check against the numbers in your profit and loss accounts.

Talk to us today if you would like us to make the STP end of year process easier by reviewing and validating your payroll figures prior to finalising the data and lodging with the ATO.

The end of the payroll year will be here sooner than you think.

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Step 9 of Building a Better Business

Sat, 01 Jan 2022 11:53:00 GMT

Step 9 of building a better business

Monitor your progress to reach your targets

When you are driving, there are certain things on your dashboard that you keep an eye on - your speed, your fuel level, and the engine's temperature.

It should be the same in your business. You should have a business dashboard with 3-5 key things you're monitoring regularly.

Use this four-step process to create your own dashboard:

Addressing performance niggles in your team

Sat, 01 Jan 2022 11:53:00 GMT

Addressing performance niggle in your team

Performance niggles often fall into one category: Attitude, Skill, Knowledge, or Support. This is also known as The Performance Matrix.

It's up to us as leaders to develop an individual's knowledge through training, coaching and systems, and to support an employee as they undertake their work, especially at the beginning of their employment. But knowledge and support are no substitute for an individual's natural skill or attitude, which we can't influence.

If you're concerned about the performance of a team member, it's critical to establish the underlying cause, to understand how you could inadvertently be setting them up to fail, or where they need to take ownership in order to improve.

Before opening the "the door of opportunity", read on to determine where the issued lie.

Knowledge (up to you).

This is the first thing that you, as a leader, can control. It's also your duty to provide the required knowledge through training, coaching, systems and policies to your team. Remember, your employee doesn't know what they don't know, so don't rely on them to ask you questions.

Review your induction and training processes to identify any knowledge gaps which you can fill with more dedicated training, mentoring and procedure development.

Support (up to you).

It may be that the knowledge is available to team members, but they need support to access it or implement it into their role.

Ask yourself, 'Have our procedures been stress tested properly? Are our employee expectations clear for each team member? Do they have a detailed job description with KPIs and goals to achieve? Are we truly available to them when they have questions or queries?'

Review the support you currently provide and identify if you could do more to help them improve their performance.

Attitude (up to them).

Only they can control their attitude. Do they come to work with passion and positivity, living into your Core Values and expected team culture.

Skill (up to them).

The team member must be capable of applying the knowledge, training and coaching you provide them to perform their job well. Encourage a growth mindset amongst your team; that learning is continuous and skills can constantly be refined.

That said, ultimately, the team member may not be up to the job. It may be beyond their natural skill level or not the kind of work that is best suited to their skills, motivators, stressors, and overall working style.

If this is the case, it is important to follow the correct Performance Management Process in order to open the door of opportunity. And hey, if their attitude is great then this may be a different position within your business.

"If everyone is moving forward together, then success takes care of itself." - Henry Ford.

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Efficiency through automation

Sat, 01 Jan 2022 11:53:00 GMT

Efficiency through automation

Lockdown forced us to rethink the way we operate our business. The barrier of procrastination has been removed and we have had to adopt new technology and automate our processes.

Technology exists to increase efficiency, but it can be a double-edged sword. When you apply automation to an efficient operation, it will magnify the efficiency. However, automating an inefficient operation will magnify the inefficiency. In other words, we must first ensure our systems and processes are efficient before introducing automation.

Review all of your existing technology, processes and systems to determine any that are obsolete. For example, texting for business is now the norm; instead of calling customers to remind them of an appointment, first send an automated text message asking them to reply 'yes' to confirm attendance. This will reduce time spent on follow ups and no-shows.

There are many benefits of improved systemisation and technology adoption:

The cost (and disruption) of any new technology or automation must be clearly outweighed by the benefit or time saving. Don't adopt shiny new technology for the sake of it.

In order to achieve these benefits and avoid systems or processes which serve no useful purpose, it's important to complete a full technology review. We recommend you do his as part of your Business Recovery Plan which reviews all business improvement opportunities, including in the technology department. Call us for more information.

"Be not afraid of growing slowly, be afraid only of standing still." - Chinese Proverb

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What is business governance and why does it matter

Sat, 01 Jan 2022 11:53:00 GMT

What is business governance and why does it matter?

Good governance is about structuring, operating, and controlling a company with a view to achieving long-term strategic goals for shareholders, creditors, employees, customers, and suppliers. It allows the company to realise its desired vision and purpose due to achieving the required results and outcomes operationally in the business.

Why is good governance so important?

In a nutshell, good governance allows a business to keep operating:

How big does a company need to be to benefit from a governance process?

The majority

Achieving Financial Freedom

Sat, 01 Jan 2022 11:53:00 GMT

Achieving financial freedom

When you started in business, what did you imagine your lifestyle would be? How does your current lifestyle compare?

Many business owners assume that after a few years in business they should be able to achieve another financial milestone such as buying a house, upgrading the car or taking the family on an epic holiday. Reality may be different.

Is financial stress common in your business?
You invested a significant amount of cash in the early days with the aim of getting a great return on your investment. Perhaps you're busy focusing on profit, assuming that will mean more money in the bank, when what matters even more is cashflow. After all, you need enough cash to pay your team and suppliers, invest in new business assets and pay yourself.

Achieving financial freedom means having enough money for you to live your desired lifestyle. We can help you understand the difference between profit and cashflow and help you implement strategies to improve your cashflow so you will have more money in the bank - both the business's account and your own!

What does financial freedom look like for you?
It might mean paying off the mortgage early, taking an extended holiday, or just having financial security in retirement. First, you need to define what you want financially from your business.

How much money does your business need to provide to you so you can live your desired life? Start with what you want over the coming 12 months. We can then help you break this down, so you know the revenue and sales targets you need to achieve to hit the magic number.

We will then help you develop a plan, so you know the actions you must take to achieve your targets. We can even hold you accountable to completing these actions so you achieve your overarching financial goals and desired lifestyle.

What will your lifestyle look like in 12 months if you continue with business as usual?
Compare this to what your lifestyle would look like if you implement a plan, with clear targets, and accountability to ensure you achieve your goals. Get in touch and try something different this year!

"Real wealth is not about money...real wealth is about freedom." - James Clear

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10 ways to imrpove your happiness

Sat, 01 Jan 2022 11:53:00 GMT

10 ways to improve your happiness

Take control of your happiness by maximising outcomes from the things you can control.

"Happiness equals reality minus expectations." - Tom Magliozzi

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Start your year off in the performance zone

Sat, 01 Jan 2022 11:53:00 GMT

Start your year off in the performance zone

Getting back into work after a break can be hard.

You might be struggling to get back into your routine and engage your brain in work. Or, perhaps you spent time setting your goals and planning your year and you're full speed raring to go. There is, however, an optimum approach somewhere between these two scenarios - we call this hitting 'The Performance Zone'.

The 'Performance Zone' sits between the 'Comfort Zone' and the 'Danger Zone'.

It's easy to hang out in your Comfort Zone. We just keep doing what we've always done because so far its worked...and there is no motivation to change. However, sitting comfortable in times of such rapid change can leave you exposed. Your competitors, those working in the Performance Zone, setting goals and making incremental changes and improvements, could squeeze you out.

Working in The Performance Zone enables you to break bad habits and form good ones, achieve your goals, and improve the value of your business. When working in your Performance Zone, you will be engaged in your work and adopt new learnings, processes and technology to streamline your business and make it more efficient.

Be wary of putting the full throttle down through. If you stretch too far out of your Comfort Zone, past the Performance Zone, you may find yourself in the Danger Zone. Committing to a massive amount of change all at once can lead to volatility, burnout, mistakes resulting re-work, the loss of a key team member, and cause you to work even longer hours for no gain (apart from stress gain).

The aim is to set goals and implement changes to move beyond your Comfort Zone into your Performance Zone. If you do find yourself hitting the Danger Zone, it's ok. Retreat back into your Performance Zone...not back to your Comfort Zone. You are here to improve your business performance, that won't happen from your Comfort Zone.

This concept applies to your entire team.

Motivate them to work in the Performance Zone instead of their Comfort Zone but have processes in place to prevent their burn out. If you notice someone coming in early, staying late and visibly stresses, find out why. Speak to them about the Performance Zone and offer support to help them manage their workload, prioritise work and reduce their stress levels.

Want help reaching your Performance Zone? Get in touch to find out how we can help!

"In a world that's changing really quickly, the only strategy that is guaranteed to fail is not taking risks." - Mark Zuckerberg

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Adopting an Atomic Habits mindset

Sat, 01 Jan 2022 11:53:00 GMT

Adopting an Atomic Habits mindset

We all have habits; some good and some not. Habits are those almost unconscious behaviour patterns we have... so, how do we build better habits?

In his book, Atomic Habits, James Clear identifies two types of habits; outcome-based and identity-based. Understanding the difference and reframing your mindset will help you adopt an atomic habits mindset will help you adopt an atomic habits mindset and ensure your desired habits stick.

Outcome-based habits

These are the habits that have a specific end point we'll reach; where our focus is on the outcome. Outcome-based habits generally only last for the short-term; as soon as we have achieved that outcome, we are likely to revert to our old ways. If we are too focused on the outcome, we may give up when we don't see fast progress.

So, how do we ensure that our habits stick? We form identity-based habits.

Identity-based habits

These are the habits that become part of our identity. we determine which habits we want to adopt, then we change our identity to reflect those behaviours. In other works, what type of person do you need to become to make those habits part of your everyday life?

For example, if reading more is the outcome, you might have a goal to read 12 books during a 12 month period. This would be forming an outcome-based habit and when you are done you are likely to stop reading.

Instead, become the type of person who reads very regularly. Set a nightly phone reminder to read before bed and start small, 10 minutes even, and gradually increase. You will soon get through those 12 books and continue reading each night. Stacking the new habit to an existing one (i.e. going to bed) is a great way to build momentum.

James Clear defines the recipe for sustained success as a simple 2 step process:

"The goal is not to achieve results at first, the goal is to become the type of person who can achieve those things." - James Clear

You can find more information about Atomic Habits at jamesclear.com

Reach out if you need help adopting an atomic habits mindset!

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The fifth way to grow your business - Increase transaction value

Sat, 01 Jan 2022 11:53:00 GMT

The fifth way to grow your business
Increase transaction value

The fifth way to grow your business is to encourage your customers to spend more each time they buy.

There are hundreds of ways to do this. The key is to develop strategies that add value to the transaction instead of simply increasing the price.

Here are some universal ways to encourage a higher spend:

To set a goal to increase your transaction value, you first need to know your current average transaction value. To calculate this, divide your sales value over a period (excluding tax) by the number of invoices raised during that period. Now you can set a goal for improvement. Don't forget to monitor this to ensure you are on track to achieve your goal!

Want to chat about your growth plans? Contact us and we can help you achieve your goals!

"Business is all about solving people's problems - at a profit." - Paul Marsden

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The second way to grow your business - generate more leads

Sat, 01 Jan 2022 11:53:00 GMT

The second way to grow your business

Generate more leads

The second way to grow your business is to generate more leads. A lead is someone who has responded to your marketing in some eay; they have some level of interest in your product.

When it comes to generating more leads, consider:

There are hundreds of ways to generate more leads. Some will be highly relevant and others completely irrelevant to your business. Generating leads is both art and science, so don't be afraid to experiment.

Here are some ideas to get you thinking:

There are so many ways to generate leads. Experiment, have fun, and always measure your campaign results.

"It's much easier to double your business by doubling your conversion rate than by doubling your traffic." - Jeffrey Eisenberg.

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The third way to grow your business - Increase your sales conversion rate

Sat, 01 Jan 2022 11:53:00 GMT

The third way to grow your business

Increase your sales conversion rate

The third way to grow your business is to increase your conversion of prospects to sales.

This is relevant to all businesses, but particularly relevant to those who prepare proposals and quotes on a regular basis.

What you can measure you can manage.

First, work out your current sales conversion rate for the past quarter by dividing the number of quotes converted into sales by the number of quotes prepared. For example, if you sent out 156 quotes, 85 of which were converted to sales, your conversion rate for that quarter is 54% (85 / 156 = 54%).

Now you know your conversion rate, it's likely you are drawn to the revenue you are missing out on by not achieving a higher conversion rate. If the above business increased its conversion rate from 54% to 64%, and if the average sale is $6,500, that's additional sales of $405,600 over one year.

In other words, it may be well worth the time, effort and some cash outlay to improve your systems and train your sales team to increase your conversion rate.

Which of the below ways to increase your conversion rate are most relevant to your business?

These are just some of the ways to improve your sales conversion. Talk to us about creating an action plan to improve your results.

"Repeat business or behaviour can be bribed. Loyalty has to be earned." - Janet Robinson

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Leveraging your Technology

Sat, 01 Jan 2022 11:53:00 GMT

Leveraging your technology

The decisions you make in your business are only as good as the data you use to make them. The more accurate and up to date your data is, the better your decisions will be. Leveraging your technology will provide you with accurate real-time data to make more informed decisions in your business.

Processes and systems drive your business, so it's important to ask yourself if all of yours are clearly documented and up to date? Some processes may be followed simply because they always have been. Although other processes may have evolved overtime, your documentation might not necessarily reflect this.

Using technology to streamline your processes and systems increases efficiency in your business, saving time, money, and reducing stress. You will also prepare your business for the future, making it more sustainable, scalable, and saleable.

Leveraging your technology can help you to:

Using technology to its maximum advantage will help to improve your business. However, implementing these changes can often be overwhelming. Let us know if we can help you leverage your technology!

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Modern award changes in march 2020

Sat, 01 Jan 2022 11:53:00 GMT

Employers get ready for modern award changes in 2020

Following a decision of the Full Bench, the Fair Work Commission has finalised arrangements for new annualised salary clauses to be inserted into a number of modern awards with effect from 1 March 2020. These changes introduce important new practices for HR and payroll aimed at reducing "wage theft" and non-compliance with awards.

What do employers need to do?

Review employment contracts and update HR and payroll practices to comply with the new obligations to audit annual salaries, record hours of work and backpay any shortfall when annual salaries are audited against modern award entitlements.

Modern awards impose new annual wage obligations

Employers with employees covered by the modern awards listed in the industries/occupations below are highly likely to require amendments to employment contracts and adjustment to payroll and HR practices, in preparation for annual salary changes to be introduced on 1 march 2020:

Almost all employers employ clerical and administrative employees. Therefore, given that the Clerks - Private Sector award 2020 is one of the awards affected, many employers may need to seek legal advice to ensure award compliance.

What are the changes?

Depending on which modern award(s) apply to your workforce, the model clauses will impose a number of detailed mandatory requirements on employers who pay employees an annual wage in satisfaction of specific modern award entitlements. For example, a requirement to advise employees in writing of:

Single Touch Payroll

Sat, 01 Jan 2022 11:53:00 GMT

Single Touch Payroll

Single Touch Payroll (STP) was introduced on 1st July 2018 for all businesses with 20 or more staff (substantial employers). The Bill to extend the Single Touch Payroll (STP) reporting requirements so they apply to all employees has now passed the Senate and will be Law.

This means STP is set to be rolled out in stages to smaller organisations with less than 20 employees as at 1 July 2019.

Whilst there are still elements of the STP rollout for small organisations that need to be defined by the ATO, what is clear is that you need to be aware of what STP is, and what it will mean for you into the future.

What you need to know?
STP will require you to have your payroll transaction data transferred to the ATO each time your employees are paid. This may require you to use a software solution that will transmit the data to and from the ATO on your behalf.

This payroll or reporting system must be STP compliant, so that each pay cycle you can report the following items to the ATO:

The ATO will then report to you each month or quarter the correct amount of PAYG tax withheld to pay in your activity statement. Also, each quarter there will be information available regarding your superannuation obligations to either pay the ATO clearing house or your independent provider.

As part of the new regime, the reports and liabilities owing will be available to you in real time. This means that, if you wish, you will be allowed to make payments towards PAYG tax withheld and superannuation contributions in your pay cycle before the due date.

If your system is already automated with reports that can provide the information listed above for every pay cycle, all you need to do is confirm if your product is STP compliant.

However, if your system is still manual it is now time to discuss and review your internal processes. The STP regime is mandatory for employers of more than 20 staff from 1 July 2018, and will be mandatory for all employers by 1 July 2019.

Our advice is to become STP ready to avoid any fines or penalties in the future from the ATO. In the event that you need a solution or just want your system reviewed, we are happy to help by advising a suitable cost effective solution.

We are here to help you through the process if you need it. Please do not hesitate to contact our office for support.

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Special Disaster Assistance Recovery Grants Small Business

Sat, 01 Jan 2022 11:53:00 GMT

Special Disaster Assistance Recovery Grants

Small Business

The special Recovery Assistance Grant is available to Small Businesses that have been directly affected by the recent floods. There are also grants available for Primary Producers and Not-for-Profit organisations that have been directly affected.

If you would like further information on the other grants available, please contact our office on 4729 2222.

Small businesses that have been directly affected by the recent North and Far North Queensland Monsoon trough are now eligible to receive an Exceptional Circumstances Grant from Queensland Rural and Industry Development Authority up to a maximum of $25,000 for clean-up costs in the following defined disaster areas:

To be eligible for the Exceptional Circumstances Grant, the applicant must:

A small business is a business that:

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Maximising your cash reserves

Sat, 01 Jan 2022 11:53:00 GMT

Maximising your cash reserves

The Covid-19 crisis has highlighted the inadequacy of current cash reserves for many businesses. They simply don't have enough cash to sustain the business in a crisis.

Now is the time to make permanent change to your business processes and cost structures so you can build those reserves. At the same time, business owners need to be part of a world solution, and that means paying our bills on time where possible.

11 strategies to maximise your cash reserves:

Cash is oxygen for your business. Contact us now so we can help you put a cashflow improvement plan in place.

"The more a business owner knows about their cashfow, the more empowered they become." - Nick Chandi

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How to prepare your personal budget

Sat, 01 Jan 2022 11:53:00 GMT

How to prepare your personal budget

A personal budget is a finance plan that allocates future personal income towards expenses, savings and debt repayments. In other words, it's a plan that sets out how you will spend and save your money.

Some people hear the words 'Personal Budget' and think restriction, limitation and confinement. They imagine having to cut all spending and live on bread and water.

Instead, think of it as your spending plan. By planning how you will spend your money, you will feel liberated and be able to spend guilt free, knowing money has already been set aside to cover your expenses. By putting a plan in place, you will no longer feel like you're going to run out of money before the end of the week or month.

So, how do you prepare your personal budget? It's easiest to start with a template. Either an Excel spreadsheet, an app or a website. your budget should be set up for a 12 month period, with all income and expenses broken down on a monthly basis. We have a complimentary Personal Budget template available to our clients.

Ensure that your budget contains the following components:

The key to a successful budget is to be completely honest about your spending habits. It's best practice to review your bank statements to analyse your current spending. Inputting this information into the budget may be an eye-opener, but it will help you understand where your money goes and allow you to make adjustments. even small adjustments add up over time.

The budget should be personal to you and your family and should reflect your overarching family goals. Your goal may be to reduce debt by spending less on lifestyle expenses. Or maybe you want to take a family holiday, so you reduce your food spend.

The key to achieving your financial goals is to understand where your money goes and develop better control over your money. Making a plan for your money and setting personal wealth goals will ultimately result in more money and less stress.

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Demystifying your balance sheet

Sat, 01 Jan 2022 11:53:00 GMT

Demystifying your Balance Sheet

Do you understand the story your Balance Sheet tells about your business? It's important you understand the components of your Balance Sheet and the key ratios that measure the health of your business.

1. It measures the net worth of your business.
Your Balance Sheet is made up of all of your assets and liabilities; your net worth is your total assets less total liabilities.

2. It tells you if your business is solvent.
Solvency is the acid test for survival. If your business is insolvent, without immediate action to remedy this, it's unlikely to survive for long. There are two components to solvency;

3. It allows you to track the strength of your business.
By comparing your Balance Sheet to previous periods, you can track whether your net worth is increasing or decreasing. The stronger your Balance Sheet, the easier it will be for your business to survive a downturn. For example, if your retained earnings are diminishing over time, it's clear that you need to take action to strengthen your Balance Sheet to ensure you will value upon the wind up or sale of your business.

4. You can calculate key rations.
Key ratios not only allow you to compare your results year on year or to industry benchmarks, they also highlight areas for improvement.

For example. calculating your debtor days may show that it takes on average 35 days for customers to pay you. If your payment terms are within 7 days of invoice, it's clear that your debtor processes need to be strengthened.

Perhaps you calculate how long it takes inventory to sell and see it's taking twice as long to sell this year than it did last year. Or, maybe a specific product is taking a lot longer to sell than others, which may indicate you should discontinue it. Key ratios calculate using your Balance Sheet can tell us a multitude of things.

Every business owner should be able to read their Balance Sheet and understand what it is telling them. If you need help demystifying your Balance Sheet and identifying key areas for improvement, get in touch now!

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Reducing your lock up days to free up cash

Sat, 01 Jan 2022 11:53:00 GMT

Reducing your lock up days to free up cash

It is vital for businesses to free up as much cash as possible, particularly in these tough economic times. Your 'lock up days' is the number of days it takes to convert your debtors, stock and work in progress into cash.

A high number of lock up days means your business needs to have more cash injected, either from you of the bank. You also have a higher risk of losing that cash, particularly if a lot of it is locked up in your debtors. Worse still, you are likely to be paying tax on that lock up figure before you have received the cash from your customers.

To calculate your lock up days:

(Debtors + stock + work in progress) / annual sales * 365

For example, if debtors are $120,000, stock is $45,000, work in progress is $55,000 and annual sales is $1,200,000, your lock up days would be 67 days (($120,000 + $45,000 + $55,000) / $1,200,000 * 365).

Reducing lock up days means you will have more cash available in your business, so how can you reduce your lock up days?

"You must gain control over your money or the lack of it will forever control you." - Dave Ramsey

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The fourth way to grow your business Increase transaction frequency

Sat, 01 Jan 2022 11:53:00 GMT

The fourth way to grow your business
Increase transaction frequency

The fourth way to grow your business is to entice your customers to buy from you more often. Remember, it is easier to sell to an existing customer than to a new one.

Many of the strategies to increase transaction frequency are simply best practice in business. However, you must have a written system and train your team or it just won't happen!

Here are just a few ways to get your customers to do business with you more often:

There are so many ways to get your customers to buy from you more often. The trick is to pick a small number of strategies you believe will work best for your business and execute them well.

Talk to us about your plans to grow your business . We can help you distil your goals and ideas into a concise, simple plan that will keep you focused on what's important.

"Make a customer, not a sale." - Katherine Barchetti

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Increasing your stock turn in a slow moving economy

Sat, 01 Jan 2022 11:53:00 GMT

Increasing your stock turn in a slow-moving economy

If you sell stock or inventory, it is essential you understand stock turn and how to increase it.

Obsolete, or 'dead' stock will harm your cashflow and your ability to increase profit, particularly in a slow-moving economy. The longer stock takes to sell, the longer you have your cash tied up in the stock before it can be sold for a profit. The older the stock, the less likely it is that you will be able to sell it for its original price.

Use the below formulas to calculate your stock turn:

Stock turn = cost of sales / average stock held

To calculate cost of sales: Opening stock + annual purchases - closing stock (where purchases includes all variable costs that show in your trading account).

To calculate your average stock: (opening stock + closing stock) / 2.

For example, where your cost of sales is $150,000 and average stock is $45,000, your stock turn will be 1.33 ($150,000 / $45,000). This means that on average, you sell each item of stock 3.3 times per year.

So, how do you increase your stockturn to sell items faster, free up cashflow and increase your profit, particularly in the current economy?

"The difficulty lies not so much in developing new ideas as in escaping from old ones." - John Maynard Keynes

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Governing versus managing

Sat, 01 Jan 2022 11:53:00 GMT

Governing versus managing

In many businesses, directors have both governance and managing roles.

With most businesses being small-medium sized, it's no surprise that owners struggle with understanding the difference between governing and managing. The line between these roles becomes blurred and it's difficult to separate associated duties.

So, what exactly is the difference between governing and managing?

Business owners tend to neglect their governance role.

Those with both governance and management roles often get caught up in the daily business operations, neglecting their strategic responsibilities. Board meetings, when they happen, can quickly deviate to operational issues instead of focusing on the high-level stuff.

Three fundamentals to fulfil your governance role and ensure business sustainability.

Neglecting the governance role in your business can be catastrophic. Need help implementing best Governance practice and separating your governance role from daily operations? we can help!

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5 keys things to get right when starting a business

Sat, 01 Jan 2022 11:53:00 GMT

5 Key things to get right when starting a business

Starting your own business is a BIG leap of faith. Will you find any customers? Will you make enough income? These are questions that any founder will ask themselves.

But with the right planning, preparation and support, you can set the best possible foundations for your new enterprise, and take some of the guesswork out of becoming a business owner.

Building the right foundations
So, if you have got a great business idea and you're eager to get your company off the ground, what are the key foundational elements you need in place?

To get your new company trading smoothly:

Talk to us about setting up your new business.

If you've got a world-beating business idea and the ambition to become a business owner, come and talk to us. We will help you flesh out your vision, write a workable plan and get your finances in shape for the next stage of the startup journey.

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Using the fresh start effect to achieve positive change

Sat, 01 Jan 2022 11:53:00 GMT

Using the Fresh Start Effect to achieve positive change

Around the world, people usually start each new year by setting goals and making positive changes.

But once we are past the New Year's deadline, it is still possible to harness the energy of a resolution and create what's known as the Fresh Start Effect.

The reason that a new year or a similarly big event like a move to a new country can be such a great time to make changes is that they provide a clear 'temporal landmark'. These landmarks give us an opportunity to step back, survey our lives and figure out what things we'd like to tweak.

So if you are looking to make some adjustments, there is no need to wait until January 1 rolls around. Instead, you just have to create your own temporal landmark. It could be the new financial year or consider a birthday, a work anniversary, the start of a new season, daylight saving or a holiday. Whatever you choose, be clear on what the date means to you.

Before you reach your landmark date, make sure that you understand what you are trying to achieve, and create goals that are more likely to succeed.

Making changes or starting something new is easier with these techniques:

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How to develop your company brand

Sat, 01 Jan 2022 11:53:00 GMT

How to develop your company brand

In the digital age, it is never been more important to craft a strong company brand.

How your brand performs in the marketplace will affect how your customers perceive you as a business, and that can directly impact on sales, profits and the future success of the business.

The importance of a strong brand
A brand is about far more than just your logo and company colours. You company brand conveys your values as a business, your personality when interacting with customers and where you fit, as a business, in your wider industry sector.

To create a robust and effective brand:

Crafting your company brand
If you want to raise your profile and make your company stand out in the marketplace, start with your brand values, your vision as a business and the brand identity that will have the biggest positive impact on your future success.

Get in touch to talk about your business.

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The importance of tax plannning for directors

Sat, 01 Jan 2022 11:53:00 GMT

The importance of tax planning for directors

Paying tax is something you are likely to see as a necessary (but not hugely enjoyable) part of running your business. But are you doing enough to plan your own personal tax liabilities?

As a director, you will pay your income tax annually on a self-assessment basis. But there are plenty of ways to make this a less costly and onerous task to complete.

Planning ahead when it come to tax
By taking a forward-looking approach to your own personal finances, and working with an experienced advisor, you can start to minimise your tax costs and maximise the value you enjoy from your own earnings and company profits.

Working closely with us help you:

Talk to us about your personal tax planning.

If you are a director looking to achieve the best results from your earnings, come and talk to us. We can review your tax situation, create a robust tax plan and make sure you are getting the maximum value from your business earnings.

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Amplify your business with social media

Sat, 01 Jan 2022 11:53:00 GMT

Amplify your business with social media

Social media is an amplifier. It is also an extremely cost-effective method of marketing.

Social media is an extension of your voice, personality, values, and aligned connections. It enables you to grow your reach and entertain your existing customers and their connections.

It is common for customers and prospective customers to use social media to source products and services. Platforms vary, so consider the most appropriate social platforms for your business and target audience.

The benefits of being on social include:

Businesses should dedicate regular time to engaging their audience. Consider the nature of your posts, it can't all be about selling your products. Remember the three 'C's of engagement:

1. Content.
Share content of value with your audience to build credibility and goodwill.

2. Conversation.
Encourage interaction with your audience to get your posts seen by new people and engage new followers.

3. Community.
Promote stories and businesses that share your vision and values, and that your audience has a mutual interest in.

"Content is fire, and social media is gasoline" - Jay Baer.

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Living above the line - how winners behave

Sat, 01 Jan 2022 11:53:00 GMT

Living above the line - how winners behave

There are three winning behaviours and three responses that will sink your team.

Are you living above the line? If not, you need to get there, as it is the easiest way to transform workplace culture and team performance.

Here is how, using the OARBED behaviour model:

The acronym starts with OAR - when behaving above the line, one takes: O wnership. A ccountability. R esponsibility.

Below the line, BED, is defined as: B lame. E xcuse. D eny. No matter what, reacting in these ways is below the line.

Consider the likely reaction of a naughty child in the act. If five-year-old Bobby is caught pulling his sister's hair, he may resort to BED behaviour:

Blame: 'She made me do it.' Excuse: 'She pushed me first.' Deny: 'I didn't even touch her.'

Adults don't typically pull hair, but BED behaviour could look like this in your office: Someone misses a deadline... and they blame an internet dropout; make an excuse about not having the necessary information; or deny the project was their responsibility in the first place. This behaviour alienates oneself, while hurting team performance and morale.

On the other hand, paddling with our OAR means, regardless of our initial thinking, we must take ownership, accountability and responsibility. When we live above the line a resolution is found faster, individuals feel more supported and we are more likely to learn from our mistakes.

OARBED has no hierarchy. Would your team be comfortable calling you, or anyone else, out on below the line behaviour?

Remember, thinking below and acting below are not the same. It is human nature to dip below the line in our minds, but it is how we act that matters. Staying in BED is easy, but paddling with your OAR is much more effective and in time the whole team will be paddling in sync.

"The best apology is changed behaviour." - Anon.

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Get on top of time wasters in your working week

Sat, 01 Jan 2022 11:53:00 GMT

Top 10 time wasters to avoid

We all have the same 1,440 minutes each day but some of us achieve so much more than others. How can we free up time to help lead a better business and ultimately achieve a happier life?

The top 10 times wasters:

1. Lack of clear goals.
Start by setting clear 12 month goals, then break these down into 90 day goals. Your actions each day should be steps towards achieving those 90 day goals, which will ultimately lead to the achievement of your 12 month goals.

2. A messy desk.
Desk clutter results in mind clutter. Tidy your workspace each day before you leave so you don't arrive to a mess. Also consider how paperless you are; paper becomes clutter.

3. Procrastination and shifting priorities.
Spend a few minutes planning tomorrow's tasks before you leave for the day or planning today's tasks as soon as you arrive. Avoid unnecessary pick up and put down. Multitasking is a productivity myth.

4. Interruptions (from humans and technology).
Set clear parameters to reduce distractions, e.g. turn off your email and phone notifications, only check emails between tasks, etc. If it's urgent, they will call or tap your shoulder.

5. Ineffective delegation (and abdication).
Ensure you give clear instructions when delegating tasks and empower others to do more for you. Responsibility still falls on you...without a clear process you are setting someone up to fail which will ultimately reflect badly on you.

6. Ineffective systems.
Mistakes are often attributable to ineffective systems. Involve your team and LEAN up processes where possible. Eliminate systems that don't add value; implement new systems that aid efficiency.

7. Inability to say 'no'
We are defined not just by what we say yes to, but what we say no to. Planning helps us to say no to things that don't align with our purpose and goals. "No" is a complete sentence.

8. Ineffective meetings.
Ensure every meeting has a purpose, an agenda and clear objectives. Don't stray from the agenda; refer back to the purpose if you are going off track. Record clear outcomes and next steps in Meeting Minutes.

9. Ineffective email use.
Think twice before playing email tennis. Ask yourself if a phone call would be more efficient so you don't find yourself constantly checking for a reply.

10. Poor planning.
Effective planning has three key components: a one-page plan (with goals, KPIs and required actions), regular reporting to ensure continuous improvement, and accountability.

What are your biggest time wasters? Identify your top three and take ownership and responsibility to minimise them today!

"Regretting wasted time is wasting more time." - Anon

Ask us how we can help you plan more effectively!

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Xeros short term cashflow feature for businesses

Sat, 01 Jan 2022 11:53:00 GMT

Xero's short-term cash flow feature for businesses

Business cash flow is simply money coming in and money going out of the business. Your outgoings will include things like rent, payroll, taxes and supplies. Your income will be revenue from sales but might also include investment funds or the sale of assets.

For most businesses, income and expenditure don't always happen at the same time so focussing on strong cash flow management will help you prepare for the shortfalls and also manage surplus income.

Cash flow reports allow you to look back at cash flow in your business. This can uncover cash flow patterns over time and show you how much money you need to run your business each month.

Cash flow forecasts look forward by combining payment dates and due dates for invoices, to give you an idea of what your cash flow will be like going forward.

Managing healthy cash flow

Xero's short-term cash flow feature gives you an up-to-date dashboard view of your organisation's cash flow. You can choose multiple bank accounts and see the projected cash flow over 7-30 days. The more information you include, the more accurate your forecast will be.

Healthy cash flow management gives you better control, so you are more prepared for growth or for the unexpected. Read the article at Xero Central to learn more about this feature and talk to us about improving your business cash flow.

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Keeping your cashflow strong in tough times

Sat, 01 Jan 2022 11:53:00 GMT

Keeping your cashflow strong in tough times

Small businesses are particularly vulnerable in tough economic times.

When sales are slow, there are still overheads and salaries that need to be sorted. Pre-planning and being proactive can help you weather tighter economic periods and allow you to continue to thrive.

Make sure you have a clear picture of your payroll, and any other planned expenses that will need to be accounted for.

If there's even a possibility that there could be a shortfall, it is essential to meet this head-on. Whether this means talking to your supplier or creditors to figure out an arrangement, or compromising on other business outgoings, you must make a plan to ensure that the business, or your staff, won't suffer.

Minimise the stress of cash-flow

Invoice early - Send any invoices that you can, and in advance if possible. Perhaps consider whether you have any regular clients or customers that you could offer a retainer or similar deal to if they book services or make a purchase from you in advance.

Chase payment - Use this opportunity to chase up any outstanding payments. Strong communication and relationships matter - talk to clients and chase invoices.

Talk to suppliers - A little honesty can go a long way. Perhaps they can extend a line of credit for your payments to them. In most cases, a good supplier would rather offer a little flexibility to keep an ongoing business relationship.

Review inventory - Can you find a cheaper supplier locally to avoid the shipping costs or discuss alternative products that allow you to reduce expenses?

Review your costs - It is also a good idea to do a general review of expenses. Business costs can creep up, and it's a great idea to make a time to check on your expenses regularly, no matter what your financial situation. Review all of your regular payments and subscriptions as well as upcoming costs. There may be travel, functions or purchases which you can decide on an alternative approach to.

Talk to the bank or inland revenue - If cashflow is tight, make sure you have conversations early so you have everything in place to see you through.

We can help you implement strategies to protect your business for the long terms and help alleviate cashflow worries.

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Report PAYGW correctly to claim tax deductions

Sat, 01 Jan 2022 11:53:00 GMT

Report PAYGW correctly to claim tax deductions

From 1 July 2019, if you don't meet PAYG withholding obligations for your workers, by not withholding tax from their payments and not reporting it to the ATO, you could lose your tax deduction.

This will apply to income tax returns lodged for the 2020 financial year and beyond.

If you withhold tax from payments to workers, you must withhold the required amount and report correctly to the ATO in order to receive a tax deduction for your business.

PAYG withholding tax from payments to workers, you must withhold the required amount and report correctly to the ATO in order to receive a tax deduction for your business.

PAYG withholding and reporting obligations apply to payments for:

Withholding rules still apply to cash payments. Similarly, for non-cash payments such as property or exchange of services, withholding rules still apply even if your worker agrees to receive a non-cash payment in place of money.

The payment of PAYGW to the ATO is a separate issues. The new rules are aimed at getting employers to report correctly and on time. Once you have reported an amount to the ATO, they expect payment of that obligation by the due date.

If you make an honest mistake, such as treating an employee as a contractor, you won't be penalised. You can correct your mistake by lodging a voluntary disclosure.

We can review your PAYGW reporting obligations to ensure you maximise your business tax deductions.

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The value of a brand style guide

Sat, 01 Jan 2022 11:53:00 GMT

The value of a brand style guide

? Your brand is an integral part of what makes your business unique. So, keeping your brand style consistent across all communications, marketing and online channels is important - and this is where having a brand style can become invaluable.

A brand style guide is a key document that sets out the rules and guidelines for how your business will be portrayed, both online and offline.

By formalising these rules, you make it easier for everyone in the business to keep things consistent, presenting a uniform brand to the outside world; so customers and prospects recognise you in the marketplace. Plus it can save you time when you go searching for a logo!

Keeping your brand style and personality consistent

Not every business needs a brand style guide. But if your business is growing, a guide will help ensure that your brand is always consistent wherever it appears.

A brand guide saves you time searching around for logos and colours, and gives you a formal document to share with external designers and writers when outsourcing work. It is also useful for onboarding employees when you have new starters who are unfamiliar with the business, the brand and your style of communication.

A comprehensive brand style guide will set out rules for:

Setting brand rules

If you don't yet have a formal brand style guide, it could be a useful tool develop. Saving you time and helping to drive consistent marketing and communications for your business.

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How to keep your business running during an emergency

Sat, 01 Jan 2022 11:53:00 GMT

How to keep your business running during an emergency

'Business continuity' is the process of planning out how your company can continue trading - when disaster hits. In essence, it's your Plan B for how to set up a means of trading, when you don't have access to your usual offices, workspaces or equipment. Right now businesses are having to put 'Plan B' into action.

10 key elements to include for your ongoing business continuity plan

Digital communication and cloud technology have given us the ability to access company information, application and communication channels. For many businesses this will allow you to keep at least some of your usual day-to-day operations ticking over.

However, there are a host of important business areas that you need to consider when developing your company strategy to deal with an emergency situation.

Here are 10 important elements to factor into your business continuity plan:

Does your business have a CRM tool

Sat, 01 Jan 2022 11:53:00 GMT

Does your business have a CRM tool?

Having clean, up-to-date information and data about your customers is a vital part of running your business. But recording, tracking and accessing this customer information can be tricky if you don't have the right tools to get the job done.

Client relationship management (CRM) tools offer a fast and effective way to manage all of this customer information. A CRM solution provides one central hub for recording all your customer data. This data could be the basics of customer name, address and contact details, notes from meetings, records of sales activity or information on the customer's marketing preferences.

So, how hoes having a CRM tool help you do business? Let's take a look...

A centralised hub for managing your customer relationships

Without a CRM system in the business, your sales and marketing team have to rely on manual, organic processes to manage the company's customer information. It's likely that you will be relying on multiple spreadsheets, diary reminders and scribbled notes to manage your customer and prospect relationships. And in this day and age, that's just not an efficient or productive way to keep on top of your customer data.

With a CRM system in place, you can:

A simple CRM tool can make your business more efficient; give you better control over sales and help to support existing customers.

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Reaching your customers online at the right time

Sat, 01 Jan 2022 11:53:00 GMT

Reaching your customers online at the right time

Of all the industries that have been disrupted by the digital age, marketing is one that has changed the most. Gone are the days when an advert in the phone book or local newspaper made the phone ring. The principles of marketing are still about understanding your customers and defining the problem you solve for them. The thing that has changed is how you reach them, and how they find you!

If fact, modern marketing is more granular. Using digital marketing you can be more targeted and more responsive. Traditional advertising such as billboards and direct marketing are still effective methods but if you are looking at a digital campaign, think about the following questions before you spend your precious marketing budget.

Do they know they need your product yet? - If they are not actively searching for your product you want to make sure you can get your message in front of them in a way that motivates them to buy or find out more. At this stage it might be positioning your product as the right choice when they are ready to buy. You will want to reach your potential customers in the places they already are. Do they use Facebook, are they on Instagram or prefer LinkedIn? Or, you could advertise on their favourite websites, YouTube channel or apps?

Are they already searching for the product or solution you offer? - Getting in front of these people is gold. If they are already searching for your product or service already, you can benefit from being there at the right time and right place. (You will still need to convince them that you are the best solution for them of course) Advertising on search engines such as a Google Adwords campaign is a good place to start. Think about the types of words they are using in the search bar (keywords) and target these keywords in your advert copy.

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How to make your businss appeal to a local audience

Sat, 01 Jan 2022 11:53:00 GMT

How to make your business appeal to a local audience

With many business back at work and trading more normally, it's the perfect time to consider marketing your products and services and beginning to bring in some much-needed revenue.

But with trading across international and regional boarders now more complicated and impractical, many business owners will be looking to their local communities for support, sales and (importantly) a regular level of income.

So, how do you change your business and marketing model to fit a more localised customer base - and what can you do to make your brand appeal to a local audience?

Becoming a vital part of your local community

After years or globalisation and international growth, it can feel slightly strange to narrow your focus and concentrate on a more localised customer base.

However, as the fallout from the coronavirus crisis, global warming and the reduction in air travel start to bite, your local community may well be your saviours.

86% of Americans would spend more to shop with a local small business, over a national chain, according to a recent study by Salesforce. If you can create a brand that's well-known, trusted and applauded within your local area, this can give you an exceptionally strong level of brand loyalty - not to mention a great pipeline of regular sales.

Here are a few ideas for appealing to this all-important local audience:

Talk to us about reviewing your business strategy

If you are looking to increase your local sales, start by establishing some goals for local customer sales. We can help you define your tactics and put measurable targets in place to track your ongoing performance.

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How to manage poor employee performance

Sat, 01 Jan 2022 11:53:00 GMT

How to manage poor employee performance

When one member of your team begins to perform below par, this can have a knock-on effect across the whole business. So, dealing effectively with performance issues is a must.

Your team is the beating heart of your company. Everyone in your core departments must be able to work productively, with the right levels of engagement, motivation and focus. Productivity will be undermined if employees are beginning to habitually underperform, so it is important that you look for solutions in a speedy and effective manner.

Focusing on the solution, not the problem.

Telling a valued employee that they are not meeting their performance targets is never any easy task. But a speedy and proactive approach may make your business and morale stronger.

In a scenario where poor performance is holding a member of staff back, it is important to focus on the solution, not the problem. There are plenty of ways to track employee performance in a modern business. The key is to focus on resolving the issue, rather than dwelling on the stats.

Additional training can often be helpful for poorly performing employees. The staff member in question may require more skills to perform their job properly, so a tailored programme of training and education can work wonders. And using the latest in performance management software and systems can help you to pic up on mistakes and avoid human error.

To deal effectively with poor performance:

Find out more about employee performance solutions

If you are faced with ongoing employee performance issues, now is the time to get proactive. We can help you choose the appropriate processes, systems and software for managing your team.

Get in touch to talk through your employee management needs.

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Requesting payment of overdue accounts in a crisis

Sat, 01 Jan 2022 11:53:00 GMT

Requesting payment of overdue accounts in a crisis

Cash has always been king, but it is more important to your business now than ever. Follow our strategies to ensure you continue getting paid in these uncertain times:

In reality, some customers may simply be unable to make any payment. In this case, it may be pointless referring their account to a debt collection agency. Consider the potential brand damage of appearing to be behaving aggressively in these extreme times.

Contact us for phone scripts that will help you achieve better outcomes when phone clients to discuss overdue accounts. We can also provide you with a Credit Management Guide to support you to manage your accounts receivable and ensue that you are getting paid.

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Developing your business's Covid-19 Prevention and Response Policy

Sat, 01 Jan 2022 11:53:00 GMT

Developing your business's Covid-19 Prevention and Response Policy

These are unprecedented times to be in business.

No doubt a lot of important and stressful things are occupying your mind right now. If you are yet to develop your business's Covid-19 Prevention and Response Policy to help minimise the impact of infection and isolation for your team and the wider community, we have a complimentary template available for you.

Our five-page template carefully considers the following Key areas (amongst others):

It is also time to consider what unique NPIs you could document and implement in your business to help enforce social distancing at this time.

Examples include:

Contact us to request our complimentary five-page Covid-19 Prevention and Response Policy template as a comprehensive starting point.

Preserving your business through lockdown

Sat, 01 Jan 2022 11:53:00 GMT

Preserving your business through lockdown

After the shock of going into lockdown and either temporally closing or moving business operations to working from home, it is time to consider your business's next steps. How you support your customers and suppliers now will impact how you work together in future. We are all in this together and now is a time for empathy, communication and collaboration to get the best outcomes for all.

Supporting and maintaining strong customer relationships
Communication is vital; keep customers up to date with what is happening in your business. If you're still operating, ensure your customers are informed of any changes or disruption.

Some customers will be struggling with cashflow so consider offering payment term flexibility, but be sure to agree expectations before providing your products or services.

If your business is unable to operate, consider how you can keep your customers engaged. Increased traffic on social media platforms is a great opportunity to capture attention. Utilise videos to engage your customers and wider audience. For example, a cafe might share popular recipes to make at home; a builder may share how-to videos for basic DIY or projects for kids; a retailer could share product reviews; a hairdresser could show how to create different hairstyles.

If you are a retailer and you don't currently sell online, now is the time to tackle this project. Even if you can't start selling until the lockdown has been lifted, get it set up and ready to go.

Working with suppliers
Call each of your suppliers to understand how they are impacted and how this will flow on to your business.

If your business is still running, discuss their supply chain and measures they are taking to continue supply. Review your contract, paying particular attention to your obligations, the supplier's obligations, payment terms, cancellation of orders, and whether there are any clauses which change the terms in times of crisis.

Honesty is crucial, if you simply don't have the cashflow available to pay them; ask if you can spread the cost over a longer time period or work together to agree on an achievable payment arrangement. Review all your contracts, including supplier contracts and contracts with lessors of premises, vehicles and equipment. You may need to renegotiate significant terms.

Managing your cashflow
Managing your cash should be a key focus right now. Take the below steps to manage your cashflow:

It's not too late to make a plan for business continuity. The sooner, the better. Get in touch if you would like help with yours.

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Ethical marketing

Sat, 01 Jan 2022 11:53:00 GMT

Ethical marketing

Ethical marketing is simply the line drawn between moral and immoral advertising to your customers. Given the current crisis, it's the difference between communicating with authenticity and empathy, and taking advantage of customers through emotive or gimmicky messaging.

On one hand, it feels wrong to post about anything that isn't related to the virus...who wants to hear about handmade pendants or luxury facials in a pandemic? On the other hand, consumers are crying out for old routines and 'life as normal' experiences.

7 keys to marketing ethically

Don't put marketing on hold.

Marketing needs to be constant and consistent. Don't be shy to market how your products and services fill a need in strange times. Simply keep your marketing messages respectful, empathetic and kind.

We can help you reset your Marketing Plan or discuss this piece of the wider business recovery puzzle. Get in touch to find out more.

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8 Cs to help your business during COVID-19

Sat, 01 Jan 2022 11:53:00 GMT

8 C's to help your business during Covid-19

The information overload is real. The ramifications of Covid-19 on businesses are being felt and speculated upon every minute of each day - probably leaving you feeling like a rabbit caught in the headlights.

Here's eight simple words also beginning with C to help clarify your vision.

If you need support with developing your Business Continuity Plan to help your business emerge successfully from lockdown, get in touch.

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Want to spend more time doing what you love

Sat, 01 Jan 2022 11:53:00 GMT

Want to spend more time doing what you love?

A key benefit of owning your own business is choosing your working hours
That was probably a drawcard when you started out. Chances are, you planned to spend less time in your business and more time with your friends and family. Then reality struck and you found yourself coming in earlier, staying later and taking work home with you on the weekend. This probably wasn't the life you had imagined.

So, how do you start reducing your work hours to get the life you want?

1. Identify the biggest time wasters in your day
Consider the things that appear urgent and important but are not necessarily the best use of your time.

Examples of urgent things that aren't always important include: interruptions and some emails, phones calls and meetings.

Examples of urgent and important things that can still be time wasters are: managing a crisis or problems that arise due to insufficient planning, procedure development and time management.

2. Identify how you can better utilise your team and resources
Ineffective delegation, or no delegation at all, could be monopolising you time. It's important that you trust your team, and that they have enough training and resources so that you can empower them with new tasks.

We can help you develop your Organisation Structure with clearly defined roles and responsibilities, so you can gain time for yourself to concentrate on key activities, such as revenue generation, more family time, or hobbies. We can also help you identify delegation opportunities.

Don't employ a team? What tasks could you outsource to free up your time? Consider things you don't enjoy or that aren't your strength. The most commonly outsourced departments are marketing, administration, HR and finance.

3. Plan for your desired lifestyle
Setting clear SMART goals, along with monitoring relevant KPIs, can help you to prioritise your most important tasks and get time freedom. If something's not helping you achieve one of your goals, consider whether it is really necessary, and if it is, whether someone else can do it. If not, schedule time to get it done before it becomes urgent.

If you struggle to hold yourself accountable to achieving your goals, we can be that accountability backstop to ensure you act to free up your time. You don't need to be spending 80+ hours in your business (unless that's really how you want to spend your time!). We can advise on the latest apps and help you put better systems in place to reduce the amount of time you need to spend at work.

"Most of us spend too much time on what is urgent and not enough time in what is important." - Stephen Covey

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Driving your business with reporting

Sat, 01 Jan 2022 11:53:00 GMT

Driving your business with reporting

Do you wait for your Annual Accounts to arrive before you look at your numbers for the year?

By the time your accounts have been finalised, the data is historical. Any changes you make as result of reading these are probably not the most effective.

Would you drive your car forward by looking in your rear-view mirror? Talk about dangerous!

If you want better control of your business, reviewing monthly Management Reports is a great start. This will give you access to better data, enabling you to quickly identify areas of concern and implement strategies for improvement. Better data will encourage better decision making, and ultimately, it will help you achieve your goals faster.

It is essential that you set targets and regularly monitor your actual results against these, identifying important trends in your business along the way.

Management Reports are only helpful if you DO something with them.

We recommend setting time aside to review them and interpret what the reports are telling you. It is not enough to see that your gross profit has dropped this month compared to last month; you need to be able to understand the reasons why it has dropped so you can act to improve it.

We see how developing discipline around Management Reports positively impacts our clients.

Essentially , it is about helping you review and truly understand your reports - with a dose of accountability.

Keen to know more? Give us a call/

"Don't look back - unless you want to go that way." - Anon

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Business stress keeping you awake at night

Sat, 01 Jan 2022 11:53:00 GMT

Business stress keeping you awake at night

Business stress keeping you awake at night?

Owning a business is stressful, especially if you're on your own. You may feel isolated and that you must do it all yourself - without the support of someone to bounce your concerns and ideas off. Maybe you've wanted to ask for help but don't know who to ask. Well, we are helping business owners just like you reduce their stress and sleep better at night.

Whether you need help to review your tax situation to ensure you are only paying what you need to (without nasty surprises), or you need help planning and prioritising the right things for your business so you can stay a step ahead... there are many ways we can help you achieve mind freedom.

Some tips for achieving mind freedom:

1. Make a plan.
Set your long-term goals and break them down into short term goals and actions. Make sure you reflect on them weekly and that your daily tasks work toward achieving them.

2. Celebrate your wins
At the end of each week, write down your biggest win of the week. On the days when you are feeling stressed, look back at your wins for better perspective.

3. Schedule time for yourself in your diary.
Whether you like hitting the gym, ocean swimming or daily meditation, clearing your mind with exercise and time out will help you transition from 'work ' to 'home' mode. Prioritising the things that make you happy will also help you be more effective at work.

4. Turn off technology at night
Put aside your phone and have some technology free time before bed. Read a book or listen to a podcast or music. You may need to invest in an old school alarm clock, but leaving your phone out of the bedroom will help you relax and get a better night's sleep.

5. Set boundaries
Decide the things that matter the most to you and prioritise them. You don't have to be everything to everyone. You don't have to coach your daughter's football team and join the school PTA. Only take on commitments that you will really enjoy. No is a full sentence. Learn to use it more.

Get in touch to find out more about the services we provide to help with achieving mind, time and financial freedom. There are so many ways we can help, starting with a meeting with us to help you establish your personal and business goals.

"The goal isn't more money. The goal is living life on your terms ." Chris Brogan

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Cashflow freedom - 7 casues of poor cashflow

Sat, 01 Jan 2022 11:53:00 GMT

Cashflow freedom - The 7 causes of poor cashflow

Cash is the life blood of any business. In fact, even profitable businesses can and do fail because of poor cashflow.

What's important is that you understand your key cashflow drivers. Improving cashflow is often all about changing your business processes. Processes such as how you order stock and pay for it, how you bill for your services, and how you make sure you get paid by your customers.

Treating the symptoms of poor cashflow without fixing the underlying causes is time consuming and frustrating.

Inadequate cashflow is a symptom of management problems in a business, NOT the cause. In order to fix these underlying causes, you need to be willing to make the necessary changes to your processes. By making these changes, you will build a much better and valuable business, as well as improve your cashflow.

While there are many causes of poor cashflow, most of these relate to one or more of the following seven categories.

1. You cash lockup.
By lockup, we mean the cash that isn't in your bank account because it's work in progress (work you have done but not yet billed for) or you've billed your customer but are waiting for payment.

2. Your accounts payable process.
If you don't have spending budgets in place and aren't taking advantage of the best possible supplier terms, your cashflow will be impacted.

3. Your stock turn.
If stock is moving too slowly, it will take longer to urn the stock you have already paid for into cash.

4. The wrong debt or capital structure.
For example, if your loans are being repaid over too short a term, this will place a big strain on cash reserves.

5. Gross profit margins are too low.
Your gross profit margin is what's left from sales value after variable costs are deducted. If it's too low, it won't be enough to cover fixed expenses and your drawings from the business.

6. Overheads are too high.
Every business should so a thorough review of its overheads each year.

7. Sales levels are too low
If sales levels don't support cash demands on the business, then sadly, the business is not currently viable.

"If I had to run a company on three measures, those measures would be customer satisfaction, employee satisfaction, and cash flow." - Jack Welch

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Set better goals with effective reflection

Sat, 01 Jan 2022 11:53:00 GMT

Set better goals with effective reflection

You made it to 2020! You're relaxed, rejuvenated and ready to crack on with the new year. but before you race ahead, look back for moment to learn from the year that was, in order to set more meaningful goals.

With that fresh perspective, ask yourself:

These are great questions to ask yourself, your team members and even your children.

"Look back to learn how to look forward." - Joe Girard

Want help devising meaningful personal and business goals? Get in touch to find out how we can help!

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Dont neglect your balance sheet

Sat, 01 Jan 2022 11:53:00 GMT

Don't neglect your Balance Sheet

Business owners tend to focus on increasing profit and driving down costs. While this is important, you must not neglect your Balance Sheet. Profitable businesses can and do go broke; Your Balance Sheet is a key indicator of how solvent your business is.

Here are four key areas of your Balance Sheet to focus on:

1. Profitability.
There are seven ways to grow your business and increase profit:

Focus on one or two to increase the profitability of your business.

2. Cashflow.
Improving your cashflow helps builds a cash war chest to help your business weather any future downturns. Remember, cash is king and the more cash you have in your business, the stronger it will be.

Focus on strategies to reduce your Cash Conversion Cycle; that is, the time your cash is tied up in your stock and accounts receivable. Negotiating better payment terms with your suppliers to preserve cash for longer, reducing inventory or work in progress, and minimising debtor days will all help build a stronger Balance Sheet by increasing your cash on hand.

3. Solvency.
Maintaining solvency is essential to the success of your business. There are two components of solvency:

The second part of the test is calculated by taking away your total assets from your total liabilities. A negative result means your business is insolvent and requires a short-term cash injection.

If your business is currently insolvent, action must be taken immediately to remedy this.

4. Shareholder Advance Accounts.
If your Shareholder Advance Account is a current asset on your Balance Sheet, the shareholders have taken more out of the business than what they are entitled to. This is incredibly risky as, in the event the business fails, liquidators can call up this loan and your personal assets will be at risk. To avoid an overdrawn Shareholder Advance Account, revisit your personal budget to reduce the amount of drawings you are taking from the business and stick to a regular amount each week or month.

It's important that you secure any advances made to the business so that, in a liquidation, you stand a higher chance of getting your money back.

Have you been neglecting your Balance Sheet? Take some time to review your profitability, cashflow, solvency and Shareholder Advance Accounts. If you need help calculating your ratios or understanding what your Balance Sheet is telling you, get in touch!

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The dangers of discounting

Sat, 01 Jan 2022 11:53:00 GMT

The dangers of discounting

The sixth way to grow your business - Reduce your variable costs

Sat, 01 Jan 2022 11:53:00 GMT

The sixth way to grow your business
Reduce your variable costs

The sixth way to grow your business is to reduce your variable costs. These are the costs which increase as sales increase. By reducing your variable costs, you increase your profit margin.

For some businesses, focusing on reducing variable costs is fundamental to their growth particularly if their gross profit margin is below where it should be in there particular industry.

Here are some of the most significant ways to reduce your variable costs:

There are many more ways to cut variable costs and improve your profit margin.

Contact us so we can facilitate a thorough review of your margin improvement potential.

"Beware of little expenses. A small leak will sink a great ship." Benjamin Franklin.

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SMSF Connect

Sat, 01 Jan 2022 11:53:00 GMT

Upcoming Federal Election:
Are you across the major parties' superannuation and tax policies?

The Federal Election has been called for May 18 and both major parties have outlined their superannuation and tax policies. The following provides a short guide on potential policies at the time of writing.

Liberal-National Coalition

Superannuation

Taxation

Australian Labor Party

Superannuation

Taxation

*Information supplied by SMSF Association

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What do you want from your business

Sat, 01 Jan 2022 11:53:00 GMT

What do you want from your business?

When you started your business, you probably dreamed about flexible hours and highly profitable, stimulating work.

Ideally, you would have adopted best practice and documented those creams in a one-page Business Plan. The plan would specify how much cash you need from the business, your role, and the hours you'd be working. In other words, what the business was going to deliver to you personally as an owner.

But that was all before the world turned on its head and most plans went out the window.

Whatever you previously dreamed of or planned for must be reconsidered in light of the 'business unusual' phase we are in now. It is likely that what you want personally from the business has not changed, however, it may take longer than expected.

Business unusual means reinventing your business to deliver what you want.

Trimming what you need personally from the business for the next year or so, will give your business a better chance of surviving the Covid-19 crisis.

Consider the following:

The best way to reduce the cashflow strain on your business is to revise your personal budget. Your budget will identify potential savings you can make and provides a benchmark against which your actual spending can be tracked in the future. The Business Plan and budget can then be built around how he business can deliver the level of personal cashflow you need.

There are no shortcuts here. The discipline of personal budgeting with ongoing monitoring of your expenditure is essential. The good news is that the process is both empowering and enlightening at the same time. You will be amazed at where personal savings can be made and will feel much more in control of your business.

"You must gain control of your money or the lack of it will forever control you." - Dave Ramsey

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Customer relationships are more important than ever

Sat, 01 Jan 2022 11:53:00 GMT

Customer relationships are more important than ever

With many businesses struggling to achieve pre-Covid sales levels, and the potential for unemployment to spawn a new breed of start-ups, having a customer retention plan has never been more important.

Surprisingly, the most inexpensive way to grow a business is to maximise customer retention. Statistically, the profitability of selling to an existing customer is 60 - 70% and drops to just 5 - 20% for a new prospect. Existing customers are also 50% more likely to try new products and spend 31% more when compared to new customers.

10 Retention Strategies to boost sales with existing customers:

Creating your Customer Retention Plan

You've probably got lots of ideas for improving customer retention. You won't be able to implement them all, so choose some strategies that will be easy and inexpensive to implement but will have a big impact. You will need to record your chosen strategies and actions in a Customer Retention Plan and train your team on how they all play their part.

"Satisfaction is rating. Loyalty is a brand." - Shep Hyken

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Selling with Empathy

Sat, 01 Jan 2022 11:53:00 GMT

Selling with empathy

Recovering from a major economic downturn requires increased business activity and sales. Naturally, as a result of Covid-19, many people are fearful of spending or simply don't have the cash to buy.

So, how do we trade out of an economic downturn while being mindful of our customers' struggles? How do we avoid coming across as opportunistic or pushy in our sales process? And how do we address these questions while making sure that our own business remains profitable? The answer lies in how well we are able to dial up our empathy.

Empathy vs sympathy
To understand how to sell with empathy, we must understand the difference between empathy and sympathy. Sympathy is feeling pity and sorrow for someone else's misfortune, while empathy is your ability to see things from your customer's perspective and being prepared to do something about it. Your customers don't need your sympathy right now. Being too sympathetic can come across as patronising. Customers need you to help them.

The three kinds of seller you don't want to be:

The Problem-solver seller
This is the kind of seller you want to be; someone who discovers the problems customers are experiencing and offers solutions in the form of products or services. This seller is empathetic and sensitive to the unique situation of each of their customers.

How to become a Problem-solver seller:

It is okay to sell right now. Ensure you are being empathetic and solving problems for your customers, only offering what they truly need. Keeping your business going will ultimately help your customers in the long run.

"Stop selling; start helping." - Zig Ziglar

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managing risk

Sat, 01 Jan 2022 11:53:00 GMT

Managing risk

A crisis really tests a business's risk management processes, shining a spotlight on gaps and new risk to be managed. Now that we're out of crisis mode, it's time for a thorough review to identify areas for improvement to minimise the risk for business owners, as well as highlighting new opportunities.

Let's look at poor debt collection as an example. This particular financial risk presents an opportunity to revamp the sales process to collect a deposit, perform credit checks on all customers, or to change the Terms of Trade. The risks associated with a downturn in sales may create an opportunity to diversify the sales model to include new customers, products, or an online offering.

While risks and opportunities exist throughout all departments of a business, it's the responsibility of the directors to manage them. Small and medium-sized businesses are no differently to publicly listed companies where the function of directors is to maximise shareholder value.

The key responsibilities of the director role include:

The best way to mitigate risk involves documenting and updating a plan. During an economic crisis, this plan ma be a Business Continuity Plan. This is a plan to ensure that the business does not fail at the onset of the crisis.

As the business moves through harder times, a Business Recovery Plan is needed to capture ways to re-invent, innovate, and re-engineer to adapt the business to new market conditions. The Business Recovery Plan has a more short-term focus, concentrating on how the business will trade through the crisis and emerge sustainability on the other side. The Plan is detailed, specific, and more focused on operational aspects of the business.

Looking at each department of the business, the Recovery Plan sets detailed goals and actions based on the risks and opportunities that it addresses. This process ensures the business can improve its ability to minimise risk while maximising profitability and cashflow.

Once the crisis is over, we can revert back to annual Business Planning. The Business Plan has a more long-term focus and is aimed at a higher, more strategic and less operational level.

No matter what the plan, the directors need to ensure there are regular meetings to discuss and monitor progress. To ensure the plan is executed and updated, have someone provide an independent voice of accountability. This person can add their expertise and experience in a way that gives your business the best opportunity to achieve success during and beyond the crisis.

"He who fails to plan is planning to fail." - Winston Churchill

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Improve debtors days to help cashflow recovery

Sat, 01 Jan 2022 11:53:00 GMT

Improve debtor days to help cashflow recovery

In a slower moving economy, it's more important than ever to stay on top of your debt collection. Establishing how long it takes you to get paid is the first step, but how can you measure this?

Debtor days measures, on average, how long your customers take to pay you. While there are many complex formulas to accurately calculate this, a nice easy formula is: current debtors owing / annual sales *365.

For example, if you have annual sales of $450,000 and debtors owning of $80,000, your debtor days are 65 ($80,000 / $450,000 * 365). If, in this example, your payment terms specify payment is expected within 14 days, then you have a real problem and your cash is locked up in your debtors much longer than it should be.

Reducing your debtor days will immediately free up cash. So, how can you reduce your debtor days?

To see the impact of reducing your debtor days, even by only 1 day, simply divide your annual sales by 365 to establish your daily sales level. You can then use this figure to calculate the impact or reducing your debtor days by different amounts.

To demonstrate with the above example, if you reduced your debtor days from 65 to 40 - still well beyond your payment terms - you'd have over $30,000 more cash ((65-40) / 365 * $450,000 = $30,822).

Don't let your customers treat you as their bank! Ensure you're getting paid as soon as possible. Get in touch to find out how we can help you reduce your debtor days, so you have more cash available in your business!

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Developing your contactless business operation policy

Sat, 01 Jan 2022 11:53:00 GMT

Developing your contactless business operation policy

Emerging from lockdown will allow a sense of normality. Bring on the simple pleasures of takeaway coffee, McDonald's drive through and online shopping for non-essentials items; things we never dreamed could be on hold.

Restarting the economy, albeit in a risk managed way, comes with pressure to not stuff this up and force a return to lockdown. So, what can businesses do to prepare for contactless business operation?

The most critical task is developing a Contactless Business Operation Policy
As a business owner, you will need to provide clear guidance. Your policy will prepare and ensure the safety of your team, customers and suppliers in a new operating environment. Your overarching policy will document what you will no longer do, what you will do differently, and what you will start doing - with plenty of detail. This must be accessible for your team at any time.

Look to your industry leaders
It is likely your industry associations will provide specific guidance and advice to help your business comply with government expectations and minimise the risk of Covid-19 transmission. Stay close to industry leaders as we move down the response hierarchy and eventually settle at a new normal.

Your Contactless Business Operation Policy.
Your policy should cover the following key aspects as well as industry-specific considerations:

1. Key changes in the way you will operate, for example:

Document new procedures for all changes in business operation; don't assume your team know your expectations. Set them up to succeed in a time when lives literally depend on it.

2. How you'll ensure workers keep their distance.
Workplace safety is critical and limiting interaction between people is key. Consider new methods of communicating and staggered start, finish and break times to reduce interaction. You may use signage to mark out 1m and 2m distances or create shields between team members and/or customers.

If your business requires your team to travel between sites, consider how you will manage movement to prevent transmission. Work with other businesses accessing the same sites to ensure protocols are consistent and followed by everyone on site.

3. How frequently your premises and equipment will be cleaned and by whom.
Clarify who's responsible for cleaning specific areas and how often. Consider the need to hire commercial cleaners or increase the frequency of your existing commercial cleaning.

High traffic areas, machinery and equipment, and surfaces will likely need frequent disinfecting, e.g. door handles and items that are frequently touched (even if by those wearing gloves). Outlined cleaning procedures and expectations around chipping in to keep communal areas and equipment clean.

4. Heightened hygiene protocols.
Document new hygiene measures and procedures, such as regular stringent hand washing or hand sanitising. Follow public health guidelines as to the measures your business should take and display signs to clarify and remind of expectations.

Clarify what supplies you have acquired, e.g. hand sanitiser, gloves, etc. to ensure compliance and, most importantly, the safety of your team.

5. Contactless ordering and payment.
This is imperative. Your policy must clarify how your team will ensure contactless ordering and payment. Utilise apps, online shopping on your website or phone orders to allow customers to order and pay in advance. Ensure you have payWave or another contactless payment method available and ask customers not to pay by cash.

6. Contactless delivery.
Your policy must clearly identify how you will deliver safely to your customers. Consider whether you could offer click and collect, drive through, courier delivery or delivery by a team member.

Communicate your contactless delivery requirements with your customers to ensure they know what to expect and can follow your guidelines. Consider implementing a cut-off time for delivery so your driver can plan their route in advance and minimise travel time.

7. Tracking movement and contact for future tracing.
Document how your business will track movement and contact between team members, customer and suppliers. This may be a paper or digital diary documenting where individuals have been and when, as well as people they've been in close proximity to.

This is essential for team members who travel between sites or who often interact with customers and suppliers. The ability to swiftly trace any contacts is crucial to minimise spread if a case occurs.

8. How to respond if a team member becomes symptomatic.
Ensure your team understands the actions they must take if they experience any potential symptoms, no matter how mild. This must include stopping work immediately and following official health recommendations to get tested as soon as possible.

Other team members who have been in close contact with a symptomatic team member should self-isolate until that person has received their result, and additional thorough cleaning should occur as a precaution.

If the team member returns a positive Covid-19 results, all close contacts should continue to self-isolate, along with those within their home, and request to get tested. follow the advice of public health officials as to whether your business a can continue operating and how to communicate with your team, customers and suppliers.

Share your policy with your team
Your team are likely to be anxious and uncertain about the risk posed by returning to work. Share your policy with your team to show how you are preparing your business to reopen as safely as possible. Ask them for feedback before finalising your policy and ensure they understand what they are require to do to protect themselves, teammates, customers and suppliers.

Communicate your plans with your customers
Pivoting your business in these times will be key, don't assume your customers will pre-empt your moves. Communicate, communicate and communicate; across your website, your social media platforms, via email - and put signage on your door. Let them know who you will be back and 'open' for business and provide confidence that your business is taking all possible steps to ensure their safety.

Be realistic with your expectations
Despite being able to reopen, nothing will be 'normal' and productivity will be impacted as you implement new ways of doing things safely. Safety and team resilience are most important right now; reassure your team and ask them to share any concerns with you.

No doubt many businesses will be itching to operate, but all of us have an important role to play in enforcing safety measures going forward. Not just for our collective safety but to avoid having to hit pause and lockdown the economy again.

If you need support to develop your Contactless Business Operation Policy to help your business start back up on the best footing, get in touch.

Understanding working capital to maintain business success

Sat, 01 Jan 2022 11:53:00 GMT

Understanding working capital to maintain business success

If cashflow is the lifeblood of your business, then working capital is the health check you should regularly undertake to keep your business alive. Regularly checking working capital will play an essential part in maintaining business success during these times of greater economic insecurity.

What is working capital?

Working capital is your current assets minus your current liabilities and measures the surplus (or deficit) you have to keep your business afloat without needing to sell assets, borrow more, or add your own money into the business. The more working capital you have, the easier it is to fund growth or weather any downturns.

To calculate your working capital: Cash + debtors + stock + work in progress - creditors - taxes owning.

For example, if your business has the following balances:

Cash $150,000 Debtors $120,000 Stock $100,000 Creditors $45,000 Taxes owing $25,000

Then your working capital would be $300,000 ($150,000 + $120,000 + $100,000 - $45,000 - $25,000).

If the business had an overdraft of $150,000 rather than a positive cash balance, the working capital would be zero. This means the business would have no cash to cover any slowdown in debtor payments or a downturn in sales (which would lead to higher stick levels). Worse, the business could be in serious trouble for trading while insolvent.

It is likely your working capital has taken a hit due to Covid-19. Now is the time to review your processes and boost your working capital. Consider the following strategies :

Even with the many challenges of a post-pandemic economy, undertaking regular working capital checks is an effective way to help increase your business's cashflow. We can help you calculate your working capital requirements and identify strategies you can implement to increase your working capital.

"Change is not a threat, it's an opportunity. Survival is not a goal, transformative success is." - Seth Godin.

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Staying on track with your personal budget

Sat, 01 Jan 2022 11:53:00 GMT

Staying on track with your personal budget

You've taken the first step and developed your personal budget for the year. However, don't set and forget and then expect to achieve your personal finance goals! If you don't monitor your progress, your spending habits are unlikely to change.

So, what steps can you take to ensure you are on track with your Personal Budget?

Understanding your numbers to improve your results

Sat, 01 Jan 2022 11:53:00 GMT

Understanding your numbers to improve your results

Understanding your financial reports, or knowing your numbers, is critical to business success. It allows you to make better business decisions, measure the impact of those decisions, take corrective action where necessary and, ultimately, enjoy better results.

By understanding your financial reports, you will:

How to maximise results from your reports:

By understanding the fundamentals behind your financial reports, you will know more about your numbers and be able to use that information to make better decisions. Whether you want to grow your business or increase efficiency to free up your time, we can help you interpret your financial reports and set goals for improvement.

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Are we a cost or an investment

Sat, 01 Jan 2022 11:53:00 GMT

Are we a cost or an investment?

As accountants, we are always helping our clients find ways to reduce their overhead costs - one of the seven ways to grow your business. Did you know that your accounting fees are an overhead cost? Should you be cutting this cost? Or do you view us as an investment?

Expenses are a necessary evil; we can't avoid them and often view them as a grudge purchase with little value add.

An investment, on the other hand, is about the return on your spend - what you get back as benefits; more cash, more discretionary time, or simply peace of mind that everything is done as it should be.

The true purpose of an accountant is to provide enduring value to you and your business. It's no longer just about annual account and tax. We believe that all our client should have, at a minimum:

Clients who are investing in these services are reaping the rewards. They know where they want their business to go and have identified the goals they need to achieve to get there.

If you consider what you spend with your accountant to be a cost, then cut that cost; if you consider it an investment, you need to invest now more than ever.

"The biggest expense is an opportunity cost ." - Anon

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Do the groundwork for effective PR for your business

Sat, 01 Jan 2022 11:53:00 GMT

Do the groundwork for effective PR for your business

Your small business has a great story to tell. If you are looking to employ a PR consultant to help drive media coverage, make sure you have done your ground work for your best chance of success.

Here are the four questions to ask internally:

1. Have you nailed your value proposition and business objectives?
Is your announcement newsworthy? When you are competing with hundreds of other press releases on a journo's desk, you need to be saying something new and interesting. It might be a new product or service or the unique culture in your business.

2. Are you ready to respond?
Ensure your online and operational systems are running smoothly. If your public relations firm gets press coverage for your business make sure you are ready and able to respond to questions, interviews and (ideally) demand. If you are driving sales, are you prepared with appropriate online functionality (or sales team) and sufficient inventory before going live with a campaign?

3. What's your goal for your return on investment?
If you are bringing in an external agency, make sure you have defined what you want to achieve and how you will measure success. Discuss your outcome expectations.

4. How much can you do yourself?
The right agency will bring you access to key journalists and media in your sector. They will be honest with you about the best approach and help find a way to communicate your brand to the media in the most effective way. But there are no guarantees and if a dramatic event happens on the same day as you release, it can be hard to get traction.

However, there is a lot you can do yourself to tell you own story. Put your great news on your website's blog and share it on your social media channels. Add social sharing buttons to your blog pages so it's easy for people to share your news with their network. Does your website have details on the team, information about your business and easy ways to get in touch? If your press releases stimulates interest in your company, make sure your house is in order when they go online to find out more.

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Managing millennials in business

Sat, 01 Jan 2022 11:53:00 GMT

Managing millennials in business

If you have a business, it is a safe bet that you employ millennials, and you are only going to be hiring more. They are rapidly becoming the labour market's biggest pool. Millennials have been gaining a bad reputation - entitled, uncommitted, difficult - but that doesn't have to be your experience. Up your millennial management game and see results not social stereotypes.

The 5 keys to managing millennials

Growing up with rapid change, the digitisation of the world and the explosion of social media has given millennials a different outlook to baby boomers or even generation X, but they are every bit as bright and capable, they just need handling and here's how:

The strategies above are just some of the ways you might modify your work practices for a changing workforce. And while millennials are forcing this change in the workplace, the good news is that these new ways of working benefit everyone.

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Teaching your kids about money

Sat, 01 Jan 2022 11:53:00 GMT

Teaching your kids about money

The money we spend each day tends to be invisible. When was the last time you withdrew your cash for the week and used it to make purchases? Rather than dealing in notes and coins, we tend to reach for our cards or shop seamlessly online. It is entirely possible to spend money without even reaching for your wallet.

This can give kids some confusing messages about how money is spent. The danger here is that they won't develop financial literacy and will struggle to manage their own money later on. One way to help them to build their financial management skills is to choose moments to talk to them about money and why you are making certain decisions.

These moments could include:

Shopping at the supermarket - If you're taking your kids on the weekly shop, get them involved in the process. Involve them in drawing up your shopping list and talk through our budget. Have them help you to find items, and weigh up differently-priced options. As a bonus, helping them to understand how a food budget works might just cut down on all those requests for treats!

Withdrawing money from the ATM - Getting out money does seem a little magical. So it's important that kids can make the connection between the money you go to work for, and what they see coming out of the wall. Talk to them about where the money you are withdrawing will go and help to understand the importance of knowing what's in your bank account.

Letting them make choices - When it comes to pocket money or money from a birthday or Christmas, it can be helpful to let your children experience the consequences of their financial decisions. It's tempting to tell them what to do with their money, but once they discover that they can only spend their precious cash once, take the time to talk with them about what they are feeling and how they might use their money differently in the future.

Choosing activities - When you choose what to do as a family, don't forget to talk through the costs of different options. Kids will appreciate balancing an expensive trip to the movies with a free picnic in the park or will be amazed when they compare the cost of an ice-cream at a parlor versus a whole tub at the supermarket. Encourage them to brainstorm and research low-cost ideas and get creative!

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Hiring the right people for your business

Sat, 01 Jan 2022 11:53:00 GMT

Hiring the right people for your business

Your business needs the right talent to thrive and grow. So, it is vital to hire the best people for the job and to create team that will help you push the company forward.

But how do you know which new roles to prioritise when hiring? And how do you go about choosing an applicant who will have the right capabilities and skills for the business?

Choosing the right person for the job
A good team is made up of diverse group of employees, with a mix of different personalities, technical abilities and people skills.

When the time comes to take on a new person, it's vital that you put some real thought into who you are hiring and why.

Before you take on a new member:

Talk to us about building up your team

If you are at a point on your growth where new talent is needed, come and talk to us. Building the perfect team isn't straightforward or easy, but we can help you plan out what roles are needed, what skill sets will be necessary and how to find and interview the perfect candidates.

Get in touch to talk through your hiring strategy.

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Profit vs cash

Sat, 01 Jan 2022 11:53:00 GMT

Profit vs cash

There is a massive difference between profit and cash. Let's explore the differences to make a better plan to increase both.

1. Sales.
Profit increases when you increase sales; cash increases when you collect the money from customers. To increase both your profit and cash from sales:

2. Invoicing.
Profit increases when you send an invoice to a customer; cash increases when you collect the invoiced amount. To increase both your profit and cash:

3. Margins.
Increasing your margins will increase your profit; collecting the increased margin will increase your cash. To increase both your profit and cash:

4. Financing.
Reduce your finance costs to increase your profit; borrow money for assets to increase your cash. To increase your profit and cash through financing:

5. Overheads.
Reducing your overheads will increase both your profit and cash. To reduce your overheads:

This is not an exhaustive list of ways to increase your profit and cash. We can help you identify specific areas of improvement in your business to increase both profit and cash.

"Never take your eyes off the cashflow because it's the lifeblood of the business." - Sir Richard Branson

The difference between directing and leading

Sat, 01 Jan 2022 11:53:00 GMT

The difference between directing and leading

There are 10 departments in every business, no matter how small. These are:

Many business owners control multiple departments. Now imagine each department has a hat worn by the single leader of each department. Many business owners wear multiple hats. The secret to the success of your organisation structure is to understand the key differences between the departments (and their responsibilities), to understand which hats you are wearing, and most importantly, to make sure non of your hats are being neglected.

So, what is the difference between wearing the Director hat and the Leadership hat? In a nutshell, Director is a strategic role and Leadership is an operational role.

Eight key differences between Directors and Leaders:

Getting your structure right and developing your strategy are critical foundations for achieving business success.

Understanding the difference between the Director hat and the Leadership hat is fundamental. The Directors set the plan and the Leader engages and empowers the team to deliver on that plan. After all, it's your team who must be engaged in your plan for it to become a reality.

Now, ask yourself how well you are living into the Director hat. And, what three things could you do better as a Leader? Finally, what support do you need to lift your business performance to the next level?

We can help you build a sustainable, scalable, and ultimately, saleable business. Get in touch for more information.

"If there's a way to do it better... find it." - Thomas A. Edison

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Staying Safe

Sat, 01 Jan 2022 11:53:00 GMT

Staying Safe

Like you, we are monitoring the latest news on the coronavirus.

We are committed to providing continued service and we will be keeping you up-to-date on any tax relief and stimulus packages that may be relevant in your business.

What you should do in your business

Minimising the spread of any illness at work is a good practice for your team and your customers. We recommend you communicate with staff and customers on how you are preparing.

Like Influenza, Covid-19 symptoms include running nose, sore throat, cough, fever and in severe cases, difficulty breathing.

Talk to your team about:

If you are able to work remotely, make sure you have the systems in place to make this possible in the event you need to do this.

For meetings booked with us over the next month, we are happy to arrange these via online conferencing or calls. Keep in touch and we will work with you to find the best way forward for you and your business.

Covid-19. Financial Support for Australian Businesses

Sat, 01 Jan 2022 11:53:00 GMT

Covid-19. Financial Support for Australian Businesses

Whatever your business, it's likely that Covid-19 will be impacting you.

You may be dealing with stock shortages, exporting issues, disrupted travel plans or a sales downturn due to tourist drop off.

As the situation changes and develops across the world, it is important that businesses develop a workplace response to coronavirus. you will want to have a plan on how to look after or protect your staff, how to manage sick leave and self isolation plus consider issues around privacy.

The Australian government announced a $17.6 billion economic stimulus package, with the goal to support Australia's health, jobs and livelihoods and set up Australia to bounce back.

The stimulus package to support business and recharge the economy includes the following programmes:

The government's business site has useful information on support for Australian businesses .

Talk to us about your business and what you could be eligible for.

Common BAS errors will impact your business

Sat, 01 Jan 2022 11:53:00 GMT

Common BAS errors will impact your business

Most activity statement errors are unintentional - even so, such errors can have a big impact on your Business Activity Statement. Unintentional errors may result in you paying too much GST or not enough. Whether you lodge the BAS yourself or whether you use our services to lodge, it's useful to understand some of the inadvertent inaccuracies that can happen.

Here are some tips to help avoid the most common mistakes we see on the BAS.

Before preparing the BAS

Reviewing the BAS

Accurate Activity Statements

There are many more potential issued with BAS reporting, but these are the most common and easily fixed. If your business is growing in complexity, or if the compliance obligations are becoming challenging, we will help you make BAS effortless and accurate every time.

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Understanding your strengths and identiifying opportunities

Sat, 01 Jan 2022 11:53:00 GMT

Understanding your strengths and identifying opportunities

The more you understand about your business, your market and your competitors, the better prepared you are for the business journey that lies ahead - and this is where a simple SWOT analysis can be an invaluable tool in your strategic armoury.

But what exactly is a SWOT analysis?

Building a detailed picture of your business

SWOT stands for Strengths, Weaknesses, Opportunities and Threats - and this kind of analysis help you to get a more detailed understanding of your business and market.

By breaking things down into four key quadrants, you can review each area and begin to build up your business intelligence profile.

Let's take a look at each of the quadrant:

Claiming deductions for working from home to be made easier

Sat, 01 Jan 2022 11:53:00 GMT

Claiming deductions for working from home to be made easier

The ATO are announcing a 'working from home shortcut' measure for people to claim running expenses, now they are working from home due to Covid-19 restrictions.

The new measure will allow people to claim a set rate of 80 cents per hour working at home. this provides a more straightforward system for people, without the need to calculate specific running expenses or to have a dedicated 'work from home area'.

The measure will apply to work after March 1. Claims for expenses incurred prior to March 1 will still follow the normal existing rules. People who already work from home can continue to use existing deduction arrangements.

For the period of March 1 to June 30, there are three ways to calculate home office expenses:

Note: tax payers must have spent this money yourself and not have had expenses reimbursed. The claim must be directly related to income and you will need a record to support your claim.

What do you need to do now?

The ATO will announce further details of this special arrangement. In the meantime, keep a record of the hours you work from home. You will need this as evidence when making a claim.

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Scott morrison unveils addidtional stimulus and support measures

Sat, 01 Jan 2022 11:53:00 GMT

Scott Morrison unveils additional stimulus and support measures

Prime Minister, Scott Morrison has announced an additional stimulus package, taking the value of the total support to $189 billion.

Acknowledging that the coronavirus pandemic may continue for some time and have long lasting impact on the livelihoods of Australians, the PM announced a raft if new support measures.

Details of the new package:

Support for businesses - eligible businesses and not-for-profits, with a turnover of under $50 millions and who are employers, will receive up to $100,000 (with a minimum of $20,000). This is an extension to the 'boosting cashflow for employers measure' which aims to keep employees in work. Employers will receive a tax free payment equal to 100% of wages or salary withheld (increased from 50%). This will be available from April 28th.

Temporary relief for financially distressed businesses - the Government has already announced that they are raising the threshold to $150,000 (from $30,000) - and making more businesses eligible to use it up to a turnover of $500 million.

Increasing the instant asset write-off - by accelerating depreciation deductions.

Supporting apprentices and trainees - through wage assistance to help small businesses.

Coronavirus SME guarantee scheme - a loan guarantee arrangement between the Government and participating banks to assist with the immediate cash flow needs of small businesses.

Increasing the benefit - the Government is temporarily expanding eligibility to income support payments with a new, time-limited coronavirus supplement of $550 per fortnight. The payment will go to existing and new recipients of the JobSeeker Payment, Youth Allowance jobseeker, Parenting Payment, Farm Household Allowance and Special Benefit for the next six months.

Early access to superannuation - eligible individuals and sole traders will be able to access up to $10,000 in 2019-20, and a further $10,000 in 2020-21. Withdrawals will be tax-free. Applications are through the MyGov site online by July 1. There will also be a temporary reduction of minimum super drawdown rates.

Support for airlines and airports - up to $715 million relief from range of taxes and Government charges.

For more on the new package, the Treasury has fact sheets on each measure at https://treasury.gov.au/coronavirus

Talk to us, we are here to help you and your business.

Don't stress about your worklife balance

Sat, 01 Jan 2022 11:53:00 GMT

Don't stress about your work/life balance

Trying to get the perfect work/life balance can be a cause of stress in itself. If you are feeling the strain of building your business and maintaining your life the good news is that stress and a productive existence can go hand in hand. Be mindful and you can find the balance that is best for you.

How much stress is good for you?

The Yerkes-Dodson law shows that an individual's performance increases with stress (arousal) until cortisol levels get too high and then decreases again just as sharply - the secret is to stop your stress levels sending you down the other side of the bell curve. How much is too much varies for everyone but by understanding and managing your stress levels you can use them for good.

How to manage your stress

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Creating new habits

Sat, 01 Jan 2022 11:53:00 GMT

Creating new habits

Human beings are often described as creatures of habit, but the truth is, behaviour change is hard.

As busy people, making a change either means cramming something else into our days, or replacing something that we're used to doing. Neither option is especially easy, but with planning, making a change is possible. Whether you are trying to start a new exercise habit or introduce a new process at work. Here are some ways to help your new habit to stick:

One at a time
A common reason that people don't manage to incorporate change is that they try to adopt more than one new thing. You might have a list of items you'd like to change or pick up but focus on each on in turn. Trying to change a group of things at a time is a recipe for failure. Giving each new habit the focus and time to succeed means you're most likely to make the change you want.

Find the small steps
Breaking your habit into bits is the best way to make it manageable. Finding the steps in changing your behaviour helps you to feel empowered to make the change. Plan to make these smaller changes gradually, knowing that they will add up to the overall shift that you are looking for.

Create a commitment strategy
Think long and hard about what motivates you, and use this as the basis for your commitment strategy. This is how you're going to hold yourself accountable. Some options include finding a group to go through the habit change with, for example taking part in a gym program with other people, making an announcement on social media about your new habit, asking someone else to check in with you about your progress, or even making a bet on your likelihood of success.

Talk to us about your business habits. Regular recording makes the job easier at reporting time.

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Build strategies to get workplace conflicts under control

Sat, 01 Jan 2022 11:53:00 GMT

Build strategies to get workplace conflicts under control

Don't let workplace conflicts cost your business money!

It's not uncommon for tempers in the office to fray. People are spending a lot of time together, there can be periods of increased stress, and it can be hard to mesh different skill sets and different ways of working together.

But a conflict in the office doesn't just create a negative environment, it can have a real impact on your bottom line. AccessEAP has released data showing that close to 15% of employees seeking support say they have faced workplace conflict. Even more telling, the report says that conflicts with managers and colleagues are two of the top 10 issues facing workers.

Experiencing conflict or bullying at work can lead to workplace absenteeism which is now a serious issue facing businesses - and an expensive one. Resolving office conflict is essential to maintain both morale and productivity. So, how do you do it? We look at 4 strategies for dealing with conflict in the workplace.

If your company has a human resources (HR) team, it is important to engage them before stepping in to try and resolve a conflict yourself. If you don't have a formal HR process, or people involved don't want to escalate the incident to HR, you can work to find a resolution yourself.

Whether you are directly involved in the conflict, or working to resolve it, there are some essential points you can follow as you start to find a resolution.

1. Agree that everyone will act in good faith
It is essential to agree that everyone involved wants to find a resolution. It is important to bring this up in a non-threatening way. Perhaps there is a future goal you can highlight, to remind everyone that you are working towards something bigger. Try saying something like: "Once we are all back on the same page, we will be closer to finishing this project, which is something we all want to see happen".

2. Address the emotions involved
In the majority of offices, it is unusual to see a heated or emotional response playing out. But, if people are engaged in open conflict, emotions are running high. Take the time to acknowledge this. Ask whether everyone is able to address the issue at the moment, or whether another time should be rescheduled, where everyone can have the conversation with a cool head.

3. Keep an open mind
Key to resolving any conflict is understanding what each person wants. The tricky thing is that this could be different to what they say they want. While you can't force someone to make a difficult revelation, you can work to create an environment where they feel supported to do so. A note here, if you are not involved directly, it can be tempting to hear out each party individually, letting them air their grievances privately. Try to avoid this as it can have the opposite effect and make people feel that you are siding against them. It is better to try and have a group discussion, where everyone knows what is being said.

4. Put yourself on the line
Getting to the crux of the problem is essential to resolve any conflict. So, even if you don't believe you are involved directly, stay open to the idea that you may play a role. If this does turn out to be the case, try to remain open and demonstrate a growth mindset. Make it known that you are willing to change your behaviour. If the resolution process does take this turn, consider asking someone else to step in to assume the role of mediator to make sure that everyone is comfortable communicating openly and honestly.

Once things are under control again, it is important to examine the underlying reasons that could have contributed to this conflict and make changes where you can.

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Growing revenue through increased market share

Sat, 01 Jan 2022 11:53:00 GMT

Growing revenue through increased market share

Whatever industry you are in, if you can grow to dominate a particular niche or specialism, you will quickly start to see the positive impact on sales, revenue and end profits.

Through strategic use of sales, marketing and business development techniques, you can build your brand profile and increase market share - making you the go-to provider in your niche and secure a larger slice of the sales and revenue pie.

A strategic approach to increased market share
Whether you are a specialist in building websites for creative agencies, or a coffee wholesaler targeting independent cafes, there is a core need to know your niche and your audience.

To work that niche and expand your market share, it is vital to have a clear goal and strategy - and, when applied effectively, there is potential to ramp up revenues across the business.

You need to be able to clearly state:

Talk to us about growing market share.

If your business goals are to exploit a key niche, expand sales and drive increased revenue, come and talk to us. We will work with you to define a growth strategy that delivers on these aims.

Get in touch and let's grow your market share.

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Make your buisness more profitable

Sat, 01 Jan 2022 11:53:00 GMT

Make your business more profitable

Making a profit isn't something that happens overnight - to create a good return from your business you need a clear focus and a well thought-out strategy for increasing profitability.

This means reviewing your business model and looking at every area of the business, to see where you can cut costs, increase margins and maximise revenue.

Focus on you key drivers
Having surplus cash at the end of the year allows you to invest back into the business, fund your growth plans and increase the size of you own dividends and drawings as the owner.

To achieve these profits, it's important to focus on the key financial drivers in your business.

To drive profits:

Talk to us about boosting your profits
If your business goal is to increase profitability, we'll help you review your business model, identify your key financial drivers and proactively drive your profit performance.

Get in touch and let's start boosting your profits.

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What role does your board Play.

Sat, 01 Jan 2022 11:53:00 GMT

What role does your board play? Understanding leadership.

Once your business is incorporated and becomes a limited company, you will need to have a 'board of directors' in place to provide your core leadership and run the business.

But why do you need a company board? And what are the different roles and functions that each member of the board supplies?

Leading the business from the top

Your board of directors exists to manage the future success of the business. Whether it's hiring talent for your senior management team, defining your key business strategy or making decisions on acquisitions, your board must have the best interests of the company at heart.

The board key aims will be to:

Your board will meet regularly to review performance, discuss new opportunities (and threats) and make key decisions about your future path.

Key positions on the board:

Chief Executive Officer (CEO) - the CEO is the highest ranking executive in the company and will generally be the public face of the business. They manage all the key elements of the business and drive the important executive and strategic decisions.

Chair of the Board (COB) - The Chair runs board meetings, ensures the board is meeting its duties and provides leadership to the other directors

What to consider when you are buying an investment property

Sat, 01 Jan 2022 11:53:00 GMT

What to consider when you are buying an investment property

Keen to get into the property market as an investor? Before you start looking, you need to understand that what you are looking for in a house, that you would occupy, might be different to an investment property.

When you are hunting for an investment property, rather than looking for features specific to your needs; like commute times or how much you like the kitchen, you are going to be thinking about the rental yield of the property and whether this would be an asset to your investment portfolio.

Understand your costs

There are additional costs that come with an investment property. Along with mortgage payments, interest rates, body corporate fees, council rates and other property upkeep costs, you may also have property management fees. Build a clear picture of your total outlay and ongoing costs before you assess the investment value of a property.

Do your homework

As well s your own research, it is important to have building reports, valuations and appraisals carried out before you decide whether to purchase the property. Remember that the market valuation and the bank valuation might be slightly different. This is generally due to the fact that the bank, aka your mortgage provider, will be looking to minimise their risk.

In your research about the property, find out what is planned for the area surrounding it. Make sure you know about any proposed developments or zoning changes, as these could have a significant impact on the property value. The local council is your first stop to find out what planning applications have been lodged.

Buying a 'fixer-upper'

Be realistic about how much work the property might need. While you might be able to live among the chaos of a renovation as an owner-occupier, a renovation in a rental property could mean a significant loss of rental income and also a larger time commitment.

Consider a tenanted property

Don't discount properties with existing tenants. A property that is already happily tenanted can be a valuable option, as you won't lose rental income while you look for tenants and you may save on property management fees.

Talk to us before you buy so that we can help you in your property investment.

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Automation can ease your business workload

Sat, 01 Jan 2022 11:53:00 GMT

Automation can ease your business workload

Small and medium-sized businesses are spending on average 120 hours a year on admin tasks, according to recent research into productivity at UK SMBs.

If your people are spending 120 hours wading through tedious and unproductive admin, that's bad for the business and for your overall efficiency. Fortunately, technology and software automation can go a long way towards automating the low-level admin tasks.

Better productivity through automation

Automation is an important way to ease your business workload, with a host of different business apps and cloud solutions offering ways to automate your admin.

With 'smart business tools' increasing in number and choice, software is utilising automation algorithms, artificial intelligence (AI), machine learning and cognitive solutions to help remove the mundane admin tasks from your workflows.

Core processes that will benefit from automation include:

Talk to us about embracing the power of automation

If your admin is starting to hold you back, come and talk to us about how automation can pick up some of the heavy lifting as well as giving you the metrics you need for decision making. We can review your business processes and identify the automation opportunities, helping you choose the best apps to drive your business efficiently.

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Become a digital business - futureproof your tech

Sat, 01 Jan 2022 11:53:00 GMT

Become a digital business - futureproof your tech

In the online, connected world we now live in, it is important for your business to be digital.

Digital technology has revolutionised the options you have available as a small business, with a wealth of cloud-based solutions and apps helping to automate the admin, enhance your productivity, open up your business data and market the company online.

Making the technology work for you.

Becoming a digital business isn't about using technology for tech's sake. It's about seeing the huge value and potential of applying digital processes and software tools within the company.

By moving your systems, processes and customer interactions over to digital, your small business can quickly become more streamlined, more efficient and more profitable. And with the ineffective elements of the business removed, you are ready to grow, scale and expand.

Key benefits of digital transformation included:

Cloud accounting at the heart of the business - cloud accounting moves your bookkeeping and financial management online, giving you access to your accounts, reporting and key performance indicators (KPIs) through your web browser, on any internet-ready device. You can literally run your finances, invoicing, credit control and bank reconciliation from anywhere with Wi-Fi - keeping you on control of the numbers.

Automation of low-level tasks - the manual tasks involved in company admin deign to eat into your business time. Many digital business tools have elements of automation built in, to help you automate the key time-consuming tasks and become more efficient. Automated bookkeeping, automatic bank reconciliation and automated payment collection all put hours back in to the business and help you do more.

Fintech and payments - Keeping on top of your finances isn't just about accounting. Financial technology (fintech) tools help you ensure that money is flowing into the business, cashflow is being managed sensibly and online payments are being made, and collected, automatically - helping to maximise your financial health.

Job management and productivity - planning and running your operations and project work can be tough. But with software project management and workflow apps connected up to your central system, you are always on top of the workload and resourcing.

Digital marketing and social media - most consumers and business customers will begin a search for products/services online. So having a good website, a bold online presence and the right social media channels in place is vital for your sales and marketing strategy. By positioning your brand in the digital space, you make yourself relevant, easy to find and connected to your ideal customer base.

Talk to us about becoming a digital business

If you are planning a digital transformation process for your small business, come and talk to us. We can help you review your systems and processes, identify you key business needs and choose the software tools and apps that will build your ideal digital system.

Get in touch and start embracing the digital future.

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Ready to take your business overseas

Sat, 01 Jan 2022 11:53:00 GMT

Ready to take your business overseas?

A globalised and digitally connected world means that your business isn't restricted to one country. Expanding your business overseas gives you access to new audiences and a little protection should anything happen to destabilise your home market.

But, as with all things in business, proceed with caution. While the saying 'no risk, no reward' holds true, it is important to fully understand what is at stake before making the decision.

What you need to consider:

Tax implications
It is essential that you understand the tax implication of this new market before you invest any money or time into your business development. Make sure that this is your first step, and talk to us, we can help.

The local market
Don't assume that what's working for you locally will necessarily transfer to a new market. It is important to research trends, pay attention to the political and economic climate. Make sure that you are engaged with what's happening in the area, and understand anything that could be poised to disrupt your business success.

Increased costs
Whether you will be shipping from your home country or looking to despatch locally, it is likely that this could cost you more than it does at home. Don't forget that if you are using local services for either shipping or production you will probably need to make at least one trip to meet the team who will be supporting your business.

Your website
There are a number of changes that you may need to make to your website. Customers may prefer to shop in their own currency rather than relying on a conversion at check out. You may decide to include some local imagery or add other touches to demonstrate that your new potential customers aren't just an after thought.

If your new market speaks a different primary language, you will have to decide whether you will translate your site or let Google Translate do the job for you. Also, find a local language speaker who can check that your product names or company name don't mean anything that could offend once translated.

Finally, if your new customers are in the EU, you will need to make sure that your business and the way you plan to manage customer data is GDPR compliant (a regulation that protects the data and privacy of EU citizens).

Customer support
Dealing with customers in a different time zone may mean hiring additional customer support staff so that any queries can be dealt with quickly. Companies like CloudPeeps can be good places to find support and marketing team members in different parts of the world.

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Forecasting cash flow

Sat, 01 Jan 2022 11:53:00 GMT

Forecasting cash flow

Why you need to forecast your cash flow
Cash flow is the lifeblood of your business. And when it comes to cash flow management, preventing cash issued is far easier than trying to solve these after the event.

Positive cash flow comes from balancing your income (the cash inflows) against your expenditure (the cash outflows). If you're in control of this then the business will always have the liquid cash needed to cover your liabilities.

Forecasting your cash inflows and outflows
Forecasting works by taking your cash data from prior periods and projecting it forward in time, giving you a 'crystal ball' that reveals the future health of your cash flow.

By running detailed cash flow forecasts, it is possible to:

Understand your future operational cash flow - helping you to see the seasonal dips, or the projected drops in income, and get the early warning you need to take action.

Talk to us about setting up cash flow forecasts

If you want to get a grip on cash flow, we can help you tailor your accounting set-up and provide the cash flow forecasting tools you need to reveal your future cash position.

Get in touch and let's start forecasting

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Measuring the health of your business

Sat, 01 Jan 2022 11:53:00 GMT

Measuring the health of your business

When you're running a business, it's easy to get caught up in the day-to-day activity and lose sight of the big picture. Taking stock of the health of your business is important. Knowing where you're allows for more effective planning, early warning about any issues, and the chance to better chart a course for success.

There are some quick ratios that will help you in order to gauge the health of your business. We can help you to assess your business health and show you how to calculate these vital checks.

Liquidity Ratios
Liquidity ratios are about how quickly you can turn your business assets into cash - which helps you assess whether you'll be able to pay the bills.

High ratios are better, as this means you've got more assets than liabilities.

Current ratio
Current ratio = Total current assets / Total current liabilities

As a general guideline, 2:1 is a good current ratio, but this does depend on the kind of industry you're in, and the nature of the assets and liabilities.

Quick ratio
Quick ratio = (Current assets - stock on hand) / Current liabilities

This measure excludes your existing stock, which you may not be able to quickly turn into cash, and is seen as a more realistic quick snapshot of your position.

Solvency Ratios
Solvency ratios look at sources other than cash flow to see whether your business will be ale to settle debts.

Leverage ratio

Leverage ratio = Total liabilities / Equity

This is a measure of whether your business is reliant on debt financing or equity to fund your assets. A higher ratio can make it harder to borrow money.

Debt to assets

Debts to assets = Total liabilities / Total assets

This tells you what percentage of assets is being financed by liabilities.

Profitability Ratios
Profitability ratios will let you know how efficient your business operations are. Where possible, it's good to measure your business against others in your industry.

Gross margin ratio

Gross margin ratio = Gross profit / Total sales

This ratio tells you whether you can cover the necessary business overheads from your sales.

Net margin ratio

Net margin ratio = Net profit / Total sales

This measure tells you the percentage of sales dollars left after you've settled your expenses, except for your income taxes.

Checking in on your business health is a great habit to get into. Using these ratios helps you to understand your current business health and allows you to plan. Talk to us about how to calculate the factors in these ratios in order to keep your business on the right track.

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Talk to us about how to scale up effectively

Sat, 01 Jan 2022 11:53:00 GMT

How to scale up effectively

Scaling up your business isn't about steady growth over time - it is a predetermined strategy to proactively expand your business at pace and achieve hypergrowth.

To achieve this, every element of your business model needs to be reviewed, refined and systemised - so you have scalability built into the company from the ground up.

Build scalability into your DNA
Scaling up is a fast-paced, hectic and transformative process for any business. But with the right planning, strategy and funding, the return on your scale-up investment can be significant.

To scale at speed, you must:

Talk to us about scaling up your business

If hypergrowth is your key goal, come and talk to us. We will help you draft your scale-up strategy and get the financial foundations solid before you press 'go!' on your hypergrowth plan.

Get in touch to begin your scale-up journey.

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Keeping your tax and expenses in check when you are self-employed

Sat, 01 Jan 2022 11:53:00 GMT

Keeping your tax and expenses in check when you are self-employed

Understand your deductions
Before you start, it is essential to understand what expenses you can and can't claim. This means you will keep the right receipts and track the right expenses. Figuring out what's what can be a little confusing as everyone has a different working set up and what you can claim for can very between industries and occupations. Talk to us about your business expenses from the beginning. This will also help you plan for any bigger work-related purchases that you may need to make.

Get a system sorted
You will thank yourself later for setting up a good system now. Getting your expenses recorded and your invoices collated means you will be able to spend more time doing the important stuff in your business. It's not just about saving time - keeping on top of your cash means you are more likely to succeed. Do you research and choose a system that will work for you. Consider choosing a software platform which allows you to record your time spent on projects, it will make sending those invoices that much easier!

Stash the cash
When you are running your own business or working for yourself, it is important to always keep your tax obligations top of mind. Make sure you have money set aside in a separate account or consider entering into voluntary instalments.

Talk to us about setting up a system that takes the headache out of your finances. We can help make the process easier.

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Your fringe benefits tax is due soon

Sat, 01 Jan 2022 11:53:00 GMT

Your Fringe Benefits Tax Return is due soon

If you are lodging your own Fringe Benefits Tax (FBT) Return, you need to lodge and pay by the 21 May. If we are lodging on your behalf, your due date is not until 25 June.

Even if you have been paying FBT instalments on your quarterly BAS, we still need to complete and lodge the annual return to assess whether you have paid too much or too little throughout the year.

If you have not paid any fringe benefits this year, or if the amount paid is less than $2,000, check with us as you may still need to lodge a nil return.

Things to consider before finalising the FBT return:

Remember that you must keep records of all FBT related transactions for at least five years.

As there are some exemptions and concessions available, we can discuss your FBT return with you, to make sure that you are not overstating your fringe benefits and paying too much fringe benefits tax.

Talk to us about how we can assist with preparing your FBT return.

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Is your small business ready for Single Touch Payroll

Sat, 01 Jan 2022 11:53:00 GMT

Is your small business ready for Single Touch Payroll

Are you ready for Single Touch Payroll?
For employers with 19 or fewer employees, single touch payroll (STP) legislation will be coming into effect on the 1st July 2019. Are you ready? What is Single Touch Payroll and what do the changes mean for your business and who does it affect? What will you need to do to prepare, so that you will be compliant?

What is Single Touch Payroll?
For employers with 20 or more employees, you will already be familiar with STP, but if you are unaware, STP is the mechanism for sending tax and super information to the ATO directly from your payroll or accounting software every time you pay your employees. The legislation was passed in February this year to extend this to employers with 19 or fewer employees.

How to prepare your small business for STP and ensure compliance
Most popular payroll companies will have the correct facilities ready to go, such as Xero and MYOB. If you are unsure, talk to us. There are a few things to be aware if as you get ready to use STP reporting.

The first year of using STP reporting is a transition year and you will have assistance form the ATO, so penalties for errors will not generally apply. If you don't think you will be ready by the 1st July, you can apply for a deferral through the ATO. The ATO five a list of possible reasons for deferring, including lack of internet coverage, or if further development of software is needed.

Start doing your preparation now to ensure you are ready by 1st July.

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Getting ready to exit your business?

Sat, 01 Jan 2022 11:53:00 GMT

Getting ready to exit your business?

When you sell up, you want your business to have as much inherent value as possible - so you get a good price, a great return on your investment and the best possible payout.

So, how do you take yourself 'out of the business' as the founder, add the best value and set up an effective and financially beneficial exit strategy?

Adding value to the company
Whether the goal of your five-year plan is an acquisition by a larger corporate, or selling your share of the company to a chosen successor, it is critically important to focus on adding value.

The more attractive the business looks in the market, the better the price you will achieve, or the better the yield you will see on selling your company shares.

To drive that value:

Talk to us about exiting your business
If you are looking to sell up, you need a plan. Come and talk to us about creating a workable exit strategy, with a clear focus on driving value and delivering a solid return on your investment.

Get in touch to build your exit strategy.

Taking the pain out of pricing

Sat, 01 Jan 2022 11:53:00 GMT

Taking the pain out of pricing - how much should you charge?

Figuring out how much to charge is a big learning curve for any business owner. The answer to how to approach it will fluctuate as circumstances and market change. It is important to revisit the question throughout the lifecycle of your business.

There is no magic formula
All businesses are unique, with an individual offering of products and services. Before you set your pricing, it is important to look as the whole picture. This will help to ensure you are being strategic and not just following trends.

Gather the data
You need to gather as much information as possible. Block out some time to sit down with your business data and strategies. Pricing is essentially figuring out where your products and services are positioned in the market. So keep you business strategies top of mind. It doesn't have to be a confusing exercise. Just grab a coffee and get started.

Here are the first steps to consider:

Don't forget to check in on your pricing.

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Price elasticity of demand

Sat, 01 Jan 2022 11:53:00 GMT

Price elasticity of demand

Price elasticity is an economic concept that you should get to know. It is instrumental in understanding demand for your product and the price you can set for it.

A price elastic product is one that experiences changes in demand as the price rises or falls. Some products are staples, and their price is inelastic. (Think things like bread or milk). People will buy these regardless of price fluctuations. When your product is price elastic, a price rise might prompt people to buy an alternative product or wait until the price is cheaper. Products that are affected in this way are often non-essential or luxury goods.

Working out price elasticity of demand
You can determine price elasticity of demand, using an equation. The equation takes the percentage change in demand and divides it by the percentage change of price.

For a product that increases 10% in price and sees a 10% drop in demand, their price elasticity of demand is negative 1.

Most products range between negative one and zero.

The pricing factors you need to understand
Here are the factors you should consider before increasing the price of your product:

With competition increasing in most sectors, understanding your price elasticity can give you the tools to pitch your product competitively.

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Understanding who your customers are is essental for your business

Sat, 01 Jan 2022 11:53:00 GMT

Understanding who your customers are is essential for your business

Successful businesses really understand their customers

Knowing your target audience is half the battle when it comes developing successful marketing activities.

When you understand the specific characteristics and needs of your customer base, you can deliver your solution at the right price, in the right place and in their language.

Learn more about your customers and you will be ahead of your competition in no time. This will save you time and money in the long run. It's about going slowly now to go quickly later. By answering the following questions, you will be able to both identify and unlock the potential of your customers.

What types of customers do you want?

Analyse the different types of buyers for your products and determine which are likely to be the most valuable to your business, these are the customers you will want to focus on.

What revenue do you want them to bring?

Project the likely revenue so you can set a reasonable cost to acquire them.

Understanding your customer and the role your product plays in their lives

How do you reach them - What channels are they using every day?

Different demographic groups tend to favour different types of media, so detailed knowledge of your customer base will help you in devising a marketing campaign to reach them.

How do you acquire them as customers?

Your marketing goals will determine what approach you take for campaigns. Consider the following factors:

Knowing and understanding your customers is key to successful business and can give you a profitable advantage. Take some time to understand your valued clients and you will be more likely to succeed in attracting more.

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Your small business has a great story to tell

Sat, 01 Jan 2022 11:53:00 GMT

Your small business has a great story to tell

Your small business has a great story to tell. If you are looking to employ a PR consultant to help drive media coverage, make sure you have done your ground work for your best chance of success.

Here are the four questions to ask internally:

1. Have you nailed your value proposition and business objectives?

Your announcement must be newsworthy not just news. When you are competing with hundreds of other press releases on a journo's desk, you need to be saying something new and interesting. It might be a new product or service or the unique culture in your business.

2. Are you ready to respond?

Ensure your online and operational systems are running smoothly. If your public relations firm gets press coverage for your business make sure you are ready and able to respond to questions, interviews and (ideally) demand. If you are driving sales, are you prepared with appropriate online functionality (or sales team) and sufficient inventory before going live with a campaign?

3. What's your goal for your return on investment?

If you are bringing in an external agency, make sure you have defined what you want to achieve and how you will measure success. Discuss your outcome expectations.

4. How much can you do yourself?

The right agency will bring you access to key journalists and media in your sector. They will be honest with you about the best approach and help find a way to communicate your brand to the media in the most effective way. But there are no guarantees and if a dramatic event happens on the same day as you release, it can be hard to get traction.

However, there is a lot you can do yourself to tell your own story. Put your great news on your website's blog and share it on your social media channels. Ass social sharing buttons to your blog pages so it is easy for people to share your news with their network. Does your website have details on the team, information about your business and easy ways to get in touch? If your press release stimulates interest in your company, make sure your house is in order when they go online to find out more.

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What is content marketing and why is it important

Sat, 01 Jan 2022 11:53:00 GMT

What is content marketing and why is it important?

Content marketing is engaging potential and current customers by speaking about what matters to them. It's not a 'hard sell', but genuinely winning their interest - consistently sharing valuable content helps build a long-lasting relationship with your audience based on continually showing that you value their time and attention.

Relevant and engaging content also helps optimise your website for search engines too. Your content can include any articles, blogs, newsletters, pictures or video you share, and should always put your audience first, support your business strategy and be planned out in advance - while making room for spontaneity on social media, where being spontaneous and human can be a real winner.

Successful content marketing is:

4 tips for effective content marketing

Content marketing is about engaging potential and current customers by speaking about what matters to them. Put yourself in their shoes and ask yourself 'what's in it for me?'

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Choosing a new business bank account

Sat, 01 Jan 2022 11:53:00 GMT

Choosing a new business bank account?

A business bank account is an essential requirement for any business. But with so many banking providers out there, how do you know which business account to choose?

The key is to know what you require from a bank account, and to choose a bank that understands the banking, financial and funding needs of your business.

Choosing an account that fits your business needs

Whether you are a new sole trader or an established limited company, it is advisable to maintain a clear divide between your personal and business money. So, it's vital to open a business bank account, giving you a separate account to handle your business transactions.

The choice of available accounts can be baffling, with the big corporate banks and high-street providers offering a range of accounts, and new digital challenger banks also adding to the available options for business owners.

When looking for a business account, consider:

Talk to us about selecting your ideal bank account

If you are in the market for a new business bank account, come and talk to us. We can help you understand the key requirements you need from your account, and the banking providers that are most sutied to delivering the right flexibility for your business.

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Your workspace can impact productivity

Sat, 01 Jan 2022 11:53:00 GMT

Your workspace can impact productivity

A great office space is about keeping your people happy, productive and working towards the key goals of your business.

An office is more than a place to put your desks, it is the heart of your business and the space where your people will spend most of their working day. your office needs to create the right atmosphere for your people and inspire productivity.

A great workspace motivates your team

Engaged employees make their organisations 17% more productive and 21% more profitable, according to Gallup's State of the Global Workplace report. And keeping your people engaged and motivated is a core aim of your workspace design.

There are some key universal traits that any good workspace will need if your aim is to boost team motivation, productivity levels and, ultimately, profitability.

A good workspace will include:

Enhancing your workspace

If you are looking to refresh your office space, think about the elements that will improve the experience for your staff and your customers. A successful office revamp makes everyone happy and boosts productivity.

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Nail your marketing goals this year

Sat, 01 Jan 2022 11:53:00 GMT

Nail your marketing goals this year

Marketing is all about making a connection with people looking for solutions. And now that we (mostly) control most of the channels we advertise through such as your website, your Facebook page, your Instagram or your email address database, it's time to make the most of them.

Build some time into your day to ensure you have the fundamentals of your marketing sorted.

Are you making to most of the opportunities to market your business?

Here is a checklist to get you started:

Marketing in the digital age is about strategy and consistency - think carefully about what activities might work well for your brand and audience, and put plans in place to do them regularly - every day, every week or every month.

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The benefits of creating a holding company

Sat, 01 Jan 2022 11:53:00 GMT

The benefits of creating a holding company

Once your business gets to a certain size and turnover, there's real value in assessing the company structure and how to make tings more tax-efficient.

Setting up a holding company is one way to start creating an ordered and effective group structure. And by moving any surplus cash up from your trading company to your new holding company, you protect your profits and can, potentially, reduce your tax liabilities.

Separating your trading and investment

When all your surplus cash, profits and personal shares are wrapped up in one single company, that can often cause problems further down the line. With all your eggs in one basket, there is an inherent risk built into your company structure and, in a worst-case scenario, if the business fails, you could end up losing everything.

But with separate trading and holding companies, held within a defined group structure, you can begin to protect your company and your own personal interests.

To start the process of creating a group structure:

As your business interests grow, you can add further subsidiary companies to this basic group structure, presenting an organised structure to the local revenue office and also reducing the potential risk within the wider business.

Talk to us about setting up a group structure

If you want to protect the long-term future of your business and investments, we can help you create a robust group structure - safeguarding the future of your business and the profits you have built up.

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Set the right growth goals for your business this year

Sat, 01 Jan 2022 11:53:00 GMT

Set the right growth goals for your business this year

If you're going to grow your company in the right way, pinning down your goals and having a clear vision for the business from the outset is vital.

You may want to increase profits and create an income that supports your lifestyle, or you are looking to increase market share and aim for hypergrowth. You may even be aiming to increase the overall value of the company to get the best return when exiting the business.

So, how do you define the goal that's right for you?

Driving your performance over time

Your financial model will drive the way you generate value, so it's important to make your business strategy fit the goals and type of growth you want to attain.

To set your finances up in the optimum way, you must:

Talk to us about goal-setting

If you are looking to grow your own business, we can help talk through your core vision, define the most effective goals and set up your finances to achieve these aims.

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What is your unique selling point

Sat, 01 Jan 2022 11:53:00 GMT

What is your unique selling point?

Making your business stand out in a crowded market can be a challenge, but differentiating your business will be key to attracting the right customers and giving them a reason to choose you over a competitor.

That is why it is important to identify your unique selling point (USP), so you have a differentiator to communicate in your marketing and sales activity.

Giving your company a real differentiator

Not all companies are created equal. Every business will have a unique slant on how it develops and delivers the same product or service. Your USP focuses on what you do better, bolder, faster or more efficiently than your competitors - giving you an edge over the other businesses that are clamouring for your customer's attention.

For example, Apple's USP was always that the company 'provides a lifestyle with our products' by making cutting-edge technology that is as simple to use and integrate as possible.

To make your USP work for you:

If you are unsure what makes you stand out in your market or industry sector, think about the key benefit you offer your clients. It could be the unique features of your product or service, or the way you do business. A strong USP will help you attract prospects by reinforcing your position as the best choice for them.

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The importance of tax planning for directors

Sat, 01 Jan 2022 11:53:00 GMT

The importance of tax planning for directors

Paying tax is something you are likely to see as a necessary (but not hugely enjoyable) part of running your business. But are you doing enough to plan your own personal tax liabilities?

as a director, you will pay your income tax annually on a self-assessment basis. But there are plenty of ways to make this a less costly and onerous task to complete.

Planning ahead when it comes to tax

By taking a forward-looking approach to your own personal finances, and working with an experienced advisor, you can start to minimise your tax costs and maximise the value you enjoy from your own earnings and company profits.

Working closely with us helps you:

Talk to us about your personal tax planning

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Dividends and paying yourself as a director

Sat, 01 Jan 2022 11:53:00 GMT

Dividends and paying yourself as a director

As a director in a limited company, dividend payments are the usual way to take money out of the company - and see a financial return on your investment into the company.

Dividends are payments made to the company's shareholders when the business has made a profit. What's not re-invested into the company can be paid out as dividend payments to your shareholders, of which you are one. But what's the most effective way to do this?

Dividends as a part of good wealth management

As a company director, the company's aren't your only concern - you also have to make sure you are managing your own personal finances in the best way possible.

Good wealth management is essential as a director, and that means taking an informed, long-term look at the ways in which you are paid, the financial vehicles you are using and the tax planning you are carrying out across the year.

To make your personal finances work effectively:

Planning your directors' pay

If you want to get the most from directors' pay, come and talk to us. As your trusted wealth adviser, we will work with you to maximise your earnings. This includes helping you forecast your earnings and profits, planning out your dividend payments from the company and setting up your finances so you are being as tax efficient as possible.

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Employee benefits and the link to staff engagement

Sat, 01 Jan 2022 11:53:00 GMT

Employee benefits and the link to staff engagement

Only 15% of the world's workers are engaged and reaching their full potential at work, according to research by Gallup. Increasing that engagement is a key aim for many business owners.

No single factor can improve the engagement levels of your staffing but offering a varied and valuable package of employee benefits, and an attractive reward package, can go a long way to enhancing the motivation and productivity of your company's workforce.

Keeping your employees happy and engaged

Happy employees are 12% more productive, says research by the University of Warwick in the UK. And offering the right benefits package is a key way to put a smile on your teams faces.

To push up those engagement levels:

Talk to us about updating your employee benefits

If you think your employee benefits need an update, come and talk to us. We can connect you with HR and employee engagement specialist, so you get the best possible advice on creating a modern, flexible employee benefits package - and keep your people smiling.

Get in touch to talk about employee engagement.

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Understanding your balance sheet

Sat, 01 Jan 2022 11:53:00 GMT

Understanding your balance sheet

To understand the financial position of a business at a specific point of time, look at the balance sheet. The balance sheet may also be called the statement of financial position. Together with the Profit and Loss Statement, and possibly other reports such as the Statement of Cash-flow, these reports provide a complete understanding of the financial position and business performance.

So what's involved - The balance sheet has three sections: assets, liabilities and equity.

What are Assets?

Assets are things and resources that a company owns. They have current and/or future value and can be measured in currency.

Assets may be subdivided on the balance sheet into bank accounts, current assets, (receivable within one year), fixed assets, inventory, non-current (or long term) assets, intangible assets and prepayments.

These include banks and other financial accounts held, accounts receivable (trade debtors), supplier deposits or bonds, stock on hand, property, equipment, vehicles, investments and intellectual property. All of these can be translated into monetary value.

What are Liabilities?

Liabilities are amounts owned to suppliers and other creditors for goods or services already received. Liabilities may also include amounts received in advance for future services yet to be provided by the business.

Liabilities are generally subdivided into current, (payable within one year), and non-current liabilities.

These include accounts payable (trade creditors), payroll obligations (salaries, taxes, superannuation), interest, customer deposits received, warranties and loans.

What is Equity?

Equity includes owner funds contributed, drawings, retained earnings and stocks. The value of the equity equals assets minus liabilities.

Transactions that affect profit and loss accounts also affect balance sheet accounts. For example, providing a service increases the accounts receivable balance, which therefore increases the equity.

The Balance Sheet Equation

The balance sheet must always balance! Asset value = liabilities + equity.

For example, if you buy a new vehicle for the business at say $50,000, having paid a $10,000 deposit and taking out a $40,000 loan, the value of fixed assets increases by $50,000, but the bank asset value decreases by the $10k deposit paid. The value of liabilities increases by $40k loan, thus leaving the balance sheet balanced on both sides of the equation.

The balance sheet equation shows you how much money you would have left over if you paid all your bills and debts and sold all of your assets at a given date. The amount is the Owner's Equity.

Note that the balance sheet equity total is not necessarily how much the business is worth at market value. Assets are listed on the balance sheet at their transaction value, which may be very different from the market value. Some assets may be worth more, and others may depreciate in value. Business value is calculated not just on the balance sheet figures but many other factors.

Talk to us. Get the complete picture of your business performance and financial position, regardless of what stage of business you are at.

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Employee engagement is key to business success

Sat, 01 Jan 2022 11:53:00 GMT

Employee engagement is key to business success

Companies with engaged employees are 21% more profitable, according to research Gallup.

Managing your employee's performance, and keeping them engaged with your business vision, is key to the present and future success of your business. Your people are one of the most important assets in the business, and you need them to be motivated, productive and hitting their targets.

But how do you manage employee performance in a way that promotes this kind of productive engagement, while delivering the value you need in the business?

Driving true employee engagement

People are diverse and complex. We don't all react in the same way to being managed in our work so there is no one size fits all approach to employee performance.

The key is to get to know and understand your team, so you have a better feel for what motivated them, how they like to be rewarded and their own personal goals.

To improve your employee performance and engagement:

If you want to kickstart your employee performance, start by creating a culture of engagement. Nurture, measure and reward good performance, so your team are aligned with your business vision.

Strong staff engagement results in strong business performance.

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Company culture is vital from day one

Sat, 01 Jan 2022 11:53:00 GMT

Company culture is vital from day one

Your company culture is founded on the norms, value and working environment you create within your business - and a positive culture can directly drive your bottom line.

Companies with an effective culture perform 20-30% better than 'culturally unremarkable' competitors, according to research by Harvard Business School professor and writer, James Hecket. Why? Because in these companies employees were happier, more productive and (as a direct result) less likely to leave.

So, if a vibrant and transparent company culture is so vital to success, how do you promote a culture that works for your business?

Embedding your values in everything you do

It is important to embed your company culture from day one of the business. This means sitting down to establish your vision, your values and the underlying goals of the company - and using these to drive every decision you make as the management team.

To build a productive company culture:

Define your values - agree on 5-10 core company values that demonstrate how you do business, how you treat your employees and what your customers can expect from your company. Have these key pillars clearly written down so they form a cultural foundation for the entire company and staff to work from.

Share your company values with all stakeholders - display your values prominently. Have an 'Our Values' page on your website, design an eye-catching 'Our Values' one pager for your employee inductions and make sure these cultural pillars are seen around the office, at events and anywhere they can be reinforced.

Hire talent based on your core values - your people are a key asset for the business, so it is important that they demonstrate your values and are a good fit for your company culture. When hiring and interviewing, assess how candidates measure up against your values, how they interact with other people in the team and whether they uphold the cultural norms that form the bedrock of your business.

Create a harmonious team - for a culture to function well, your employees need to work together as a team. A harmonious team is the beating heart of a successful business, and that requires choosing the talent and personalities that form a cohesive and productive staff. If everyone shares your cultural vision, success is more likely.

Proactively promote your culture - Company culture isn't just words on a page; it is about how you live and breathe these values. So, you need to get your culture out in the open and promote your core values through team events, regular work social events and transparent sharing of company performance and strategy with your team.

Keep you culture alive and relevant - the things that make your company tick will evolve and change over time. So there is an occasional need to review and update your core values and cultural norms, helping you remain relevant and productive.

Defining you company culture

Your company culture can add tangible value. Flesh out your core values, define your key cultural pillars and create an open and transparent culture within the business.

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Keeping on top of overdue accounts

Sat, 01 Jan 2022 11:53:00 GMT

Keeping on top of overdue accounts

How long do your customers take to pay?

A Xero Small Business Insights reports showed that late payments to small businesses are improving. But overall, payments often still arrive after due date.

Keeping on top of overdue accounts is vital for cashflow. There are some easy things you can put in place today to reduce the payment time-frame in your business.

Reducing the average time-frame on payments for your business will help with your overall business health. Start with a straight forward system, clear credit terms and good communication with creditors.

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Understanding your profit and loss statement

Sat, 01 Jan 2022 11:53:00 GMT

Understanding your profit & loss statement

Your profit and loss statement (P&L) helps you understand your business performance and profitability over time. It's sometimes called an Income statement and its main purpose is to list income and expenditure.

Whereas a balance sheet is a snapshot in time, the P&L shows transactions over a specific period of time. This can be a month, quarter, financial year or any other period, and it can be a stand-alone report or a comparative period report.

Together with the balance sheet, these two reports provide a comprehensive understanding of the financial position and performance of a business.

The profit and loss statement has two main sections: income and expenses.

These may be further subdivided depending on the complexity of the business and reporting requirements.

The Bottom Line

Total income minus total expenses results in the net profit (or loss), is often called 'the bottom line'. Often business owners are just interested in looking at the bottom line, but a true financial picture requires an understanding of several reports and an ability to see the big picture that the reports are illustrating.

The P&L is a vital tool to analyse for trends over time.

Financial statements help you understand the big picture for your business. With deeper understanding of your business operations and performance you can make informed decisions about your business finances.

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Understanding your statement of cash flows

Sat, 01 Jan 2022 11:53:00 GMT

Understanding your statement of cash flows

The statement of cash flows, (also know as the cash flow statement), shows how your business has generated and used cash (and cash equivalents) within a specific period.

For each of the reporting categories, receipts and payments are listed (money in and money out), and this is reported as a net increase or decrease in cash held for that category.

The net change in all categories is added to the amount of cash on hand at the start of the reporting period to arrive at the current cash on hand figure at the end of the reporting period.

It is another important financial statement to understand in conjunction with the Profit and Loss statement and the Balance sheet. These three reports provide a good understanding of the financial position of your business.

How does it work?

The cash flow statement integrates the information provided by the profit and loss statement and the balance sheet into a current cash position. The cash flow statement is reported on a cash basis, while your other financial statements are usually reported on an accrual basis. Accrual income (from the profit and loss statement) is converted to cash by calculating the changes in the balances of asset and liability accounts.

Report Categories

The statement of cash flows is organised into sections that report on different types of business activity.

Formal financial report packages usually include notes to the financial statements. The notes contain supplemental information that explain significant items or activities that did not involve cash transactions. The notes may also include detailed reporting of categories that may have been reported as summary totals only in the profit and loss, balance sheet and statement of cash flows. Other items such as taxes, employee provisions, risk management or related party transactions may also be detailed in the notes.

Why is it useful?

The statement of cash flows fives you a valuable measure of cash flow in and out of the business over a given period. It shows the ability of the business to pay its bills and fund its operating activities. This gives you a picture of overall performance.

It also shows the relationship between assets, liabilities, equity and cash accounts. It shows changes and movements over time, whereas the balance sheet and profit and loss reports show account values at a single point in time.

The statement of cash flows fivers you vital information on your business.

If you would like to understand your financial statements, cash position and future outlook in more depth, arrange an advisory session today. We will help you identify and appreciate the strengths of your business.

Good leadership is more than business acumen

Sat, 01 Jan 2022 11:53:00 GMT

Good leadership is more than business acumen

Being the boss isn't just about getting the strategy and financial management of your business right. It is also about becoming a good leader who can get the best from your workforce.

With the right leadership style, you keep your people engaged, happy and motivated to get the job done - and that's good news for the future success of your business.

But what skills do you need to become a great leader?

Learning to lead your team

Being an inspiring and motivational leader is a vital competency in a boss.

Your ability to communicate your company vision, understand your workforce and provide the impetus behind your business model will all have an impact on the success of your venture.

To become an inspirational leader, you will need :

Talk to us about improving your leadership skills.

We can help you identify your key skills and competency gaps - and work with you to enhance your leadership abilities to become a more effective boss.

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Thinking of buying - things to consider

Sat, 01 Jan 2022 11:53:00 GMT

Thinking of buying a business? Things to consider

Buying an existing business can be a great way to get started as a business owner, or to expand operations if you are already running a business successfully.

Established businesses have already done the hard work of setting up a business, so you can get up and running on day one without a lengthy formation process.

Things you will need

When considering a business, we can help you to analyse the financial reports, activity statements, tax returns and sales and purchases records to give you an independent overview of the financial performance and potential of the business.

We can assist in understanding the financial performance and benchmarks of a business you are considering buying, so that you make the best decision possible!

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Setting sales targets

Sat, 01 Jan 2022 11:53:00 GMT

Setting sales targets

Setting sales targets for your business is standard practice for any aspirational, growing company. If you are going to stretch the sales and marketing teams, it's important to have clear, unambiguous targets for them to aim for. But what happens when a crisis looms?

In uncertain times it's more likely that your pre-crisis sales targets will effectively become unrealistic and impractical for your teams to use.

So, how do you set sales targets during a crisis? And how can you ensure these targets are meaningful, accurate and workable for your business goals?

Understanding your strategy and sales numbers

Knowledge is power, especially when it comes to defining your business strategy during uncertain times. The better you understand your position, the easier it will be to agree on the right strategy and to set sales targets that support these aims.

With a plan in place and targets to meet, everyone knows what they need to achieve. A list of key tasks to do at each point along the sales journey adds real value. Even if you don't end up gaining new business, you have made every effort to solve the customer's needs.

Let's take a look at some important steps for setting robust sales targets:

Talk to us about your sales targeting process

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Pricing strategies and how to set best price

Sat, 01 Jan 2022 11:53:00 GMT

Pricing strategies and how to set the best price

What's the best way to establish a price for your products or services?

Getting your pricing right is crucial. Put your process too high and your customers may desert you; put them too low and you will generate sales but won't have a large enough profit margin to create healthy revenues and cashflow for the business.

Whether you are a new startup, or an established business, choosing the right pricing strategy is a fundamental part of designing your business model. As such, pricing is something that's likely to take considerable thought, research, planning and analysis over the lifetime of your products.

So, how do you know what to charge for each product and/or service? And how do you decide a price point that's both competitive AND profitable for the business?

Costs, margins and hitting the right price point

For you business to be viable, you have to know for certain that you can:

But how does this all come together to define your final sale price? The answer is to have a granular understanding of your costs, your margins, and your pricing - and also to know who you are selling your product/service to.

Let's look at the different ways that a price can be worked out:

Talk to us about setting your pricing strategy

Pricing is a complex and difficult area to get right, so working on your pricing is something that should be done on a regular basis.

If you would like to review your current pricing strategy, please do come and talk to us. We will analyse your current strategy, review your prices and margins, and suggest the best way to improve your price point, revenues and profitability.

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Strategic alliance. The benefits of working together

Sat, 01 Jan 2022 11:53:00 GMT

Strategic alliance:
The benefits of working together

Your business may compete head-to-head with a number of other companies, but this doesn't mean you have to treat ALL other businesses as if they are the competition. In fact, there are real benefits in creating strategic alliances with other like-minded organisations.

When you look at the wider marketplace, you'll see that there are businesses out there that may well compliment you offering. And by working together (rather than against each other) it's possible to become valued strategic partners, collaborating to serve your joint customers, improve brand awareness and, ultimately, expand your target market.

If this sounds like a positive strategy, now's the time to do your homework and start hunting down the best strategic partners for your business.

Working to server a shared customer base

Strategic alliances are all about finding the common ground between you and your intended partner - and this means finding the best ways to combine your efforts. If you can share the same customer audience, and create a complementary way of growing both companies.

Finding a company that's interested in forming a strategic alliance.

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Invoices - What should you include?

Sat, 01 Jan 2022 11:53:00 GMT

Invoices - What should you include?

When you're running a small business or working for yourself as a contractor, getting paid relies on sending your invoice. And because getting paid, and on time, is essential to staying afloat, it's important to make sure that you've got all the important information included. Setting up your invoices correctly will ensure you get paid quicker. H ere's what you need to cover.

If a customer asks you for a tax invoice, provide one within 28 days. Your invoice needs to contain the following:

If you are using accounting software simply fill in the templates or you can see some examples of invoices on the ATO website .

A well set out invoice will make it easier for your clients and customers to pay you. Accounting software will make the job easier by providing the format for your business and increasing your efficiency. Talk to us about your invoicing to ensure you make it easier for people to pay you.

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Keeping debt low through proactive credit control

Sat, 01 Jan 2022 11:53:00 GMT

Keeping debt low through proactive credit control

Having a large amount of debt in your business is bad for cash flow, weakens your overall financial health and brings down your credit score as a business.

So when customers don't pay on time, that 'aged debt' is bad news for your finances. Aged debt can begin to stack up, adding to your liabilities and reducing the health of your overall balance sheet - so it's important to tackle late payment head on.

Get effective with your credit control
Being proactive with your credit control procedures and debt management helps you speed up payment, reduce your debtor days and rein in your overall debt as a business.

To improve the efficiency of your credit control:

Talk to us about enhancing your credit control
If late payment and aged debt is weighing heavily on your balance sheet, we can help you set up the debtors reports and credit control processes needed to reduce this debt.

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How to use forecast and scenario planning

Sat, 01 Jan 2022 11:53:00 GMT

How to use forecasts and scenario-planning

For centuries, accounting was all about reviewing historic information - but that only told you about the past, not what was going to happen in the future.

If you're only looking back at past periods and historic numbers, that limits the insights you can achieve into your business. With a backward-looking ideology, it becomes difficult to plan, run through different scenarios or understand the path of he business.

Forecasting changes this. With the right data analysis and forecasting tools, you can project sales, cash, revenue and profits into the future - and get in control of your business.

A forward-looking view of your business journey

Forecasting switches the focus of your financial management. By moving to a forward-thinking view of your business journey, you can see further down the road - and that helps to spot the opportunities and avoid the common business pitfalls.

Forecasting adds value by:

Talk to us about the benefits of forecasting

If you want to get in control of the destiny of your company, come and talk to us. Forecasting helps you highlight your future threats and opportunities - and create a proactive strategy to improve the performance of your business.

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How healthy is your working capital

Sat, 01 Jan 2022 11:53:00 GMT

How healthy is your working capital?

We all know that cash is king when it comes to business success, but what exactly is 'working capital' and how does this financial metric help measure the health of your business?

Working capital is made up of the cash and assets that are available in the business to fund your operations and keep you trading. It's worked out by taking your current assets (the things you own) away from your current liabilities (the things you owe to other people).

So, why is working capital such a critical metric?

Having the liquid capital needed to trade

It's possible for you business to be busy, successful and profitable, but for your cash position to still be in poor health - and that can have a serious impact.

If you can't readily convert your assets into liquid cash, it's a struggle to meet your cashflow goals, pay your bills and fund your day-to-day operations. But with the optimum level of working capital, you strengthen your balance sheet and put the company in a solid financial position.

To achieve this healthy level of working capital you will need to :

Talk to us about optimising your working capital

Working closely with your accountant is vital if you want to promote the ideal level of working capital in the business. We can help manage your cashflow, monitor your financial metrics and provide access to additional finance and funding when your capital needs a boost.

Get in touch to start maximising your working capital.

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Modern award annualised salary changes

Sat, 01 Jan 2022 11:53:00 GMT

Modern award annualised salary changes

The Fair Work Commission (FWC) late last year has varied a number of modern awards that include annualised salary provisions. The decision has also introduced the provision for annualised salaries into some other awards for the first time.

Whilst the actual specifics of the annualised salary provisions vary per award, there are some significant changes that affect all award terms in relation to annualised salaries. - We can help with the red tape.

What is an Annualised Salary?

Some awards permit employees to be paid an annual salary that covers all payments such as allowances, penalty rates and overtime. for many employers and employees, this has been a flexible and practical solution to avoid the need for timesheets and extra payroll administration.

The Important Changes

The changes may affect the ease and efficiency of your current payroll administration, as there are now extra records required for all employees paid an annual salary under an award provision. Note this does not affect employees with a common law employment contract.

What you need to do now.

The new provisions come into effect on 1 March 2020. Employers need to review all existing agreements for annualised salaries as soon as possible. You will also need to consider the impact of the new requirements on your payroll administration and software.

There are many payroll software add-ons that can help to make administration easier if your current software does not have the required record-keeping tools built in.

Not sure how to approach these changes?

We can help. Contact us to arrange a time for a payroll compliance review.

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Your business recover plan

Sat, 01 Jan 2022 11:53:00 GMT

Your Business Recovery Plan

As businesses emerge from Covid-19 restrictions, for many 'Business as Usual' has become 'Business Unusual'. So, how do we navigate our way towards a sustainable new normal?

During lockdown, we focused on crisis management, activating relevant Government support packages and doing our best to build cash war chests.

Now we enter the recovery phase on the way to establishing the new normal. We have all learnt lockdown lessons. We have discovered risks in our business model that we may not have appreciated before, as well as opportunities that are there for the taking.

Now is the ideal time to document a clear Business Recovery Plan:

Top 8 things to outsource in your business

Sat, 01 Jan 2022 11:53:00 GMT

Top 8 things to outsource in your business

If you are looking to scale your business, you will need to spend more time working on it than in it. Finding ways to leverage your time is critical, and outsourcing your least favourite tasks is a great way to do this.

Things you should consider outsourcing in your business:

Tempted to start outsourcing some of your tasks to free up your time? We can help by taking the last three roles off your hands! We work with a number of our clients in this way, allowing them to focus on what they do best.

While outsourcing takes a little bit of setting up, it's worth the short-lived pain for massive gain. We don't have to be jack of all trades. In fact, this thinking often leads to begrudgingly doing many things poorly rather than doing a few things really well - and enjoying them.

Work to your strengths, outsource the rest!

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how to say no if you are a yes person

Sat, 01 Jan 2022 11:53:00 GMT

How to say no if you're a yes person!

Are you a yes person?

Even when you're snowed under with work, family, and life admin, do you find yourself saying yes to things you don't really have time or headspace for?

The downside of being a yes person:

Don't prioritise the needs of others over your own. You do have a choice. Flexing your no muscle more will enable you to say yes to more of the right things.

How to say no:

It's important to value yourself enough to respect your own time and it's also great to empower others to give things a crack themselves or find their own solutions.

In business, it is critical that you only say yes to the things that align with your vision and five year plan. That might mean not developing that new product idea which is cool but doesn't really fit your core business. Or, it might mean not developing a strategic partnership with that person you really like - as your business doesn't stand to benefit enough from it.

Of course, being clear on your vision, goals and priorities makes it much easier to say no to things that don't contribute to your desired outcomes!

Get in touch if you want help clarifying your personal and business goals!

"We'll increasingly be defined by what we say no to." - Paul Graham

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The first way to grow your business - Increase customer retention

Sat, 01 Jan 2022 11:53:00 GMT

The First way to grow your business

Increase Customer Retention

Statistics show that it's six times easier and cheaper to make a sale to an existing customer than it is to a new one. Happier customers come back more, spend more money and, most importantly, talk to others.

And yet, so many businesses seem focused on getting more customers. Sure, customers are coming in the door, but they might be existing just as fast, putting a real handbrake on growth.

What are you doing to delight your customers? do you know what your customers want? What is your strategy for communicating with customers? Ask yourself these questions and answer honestly.

There are three aspects to every customer experience - product, service, and relationship.

You could employ any number of customer retention strategies to improve the areas you need to. What you focus on will depend on your business type.

1. Do you need to improve your product or service?

2. Do you need to improve your relationship with customers?

Looking at your customer experience from these three perspectives helps create a solid customer retention plan.

If you need help setting customer retention goals and measuring their impact on the bottom line, get in contact . We can help you wrap that into your one page Business Plan.

"You are out of business if you don't have a prospect !" - Zig Ziglar.

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Tax tips for self managed superannuation funds

Sat, 01 Jan 2022 11:53:00 GMT

Tax tips for self-managed superannuation funds

Having a self-managed superannuation fund (SMSF) gives you control and flexibility over how you make investments and prepare for retirement.

It is important to get your deductions and record keeping correct for the SMSF audit process and the tax return, as there are strict laws governing SMSFs.

An SMSF must be set up as a trust and must also have a legal document called a trust deed. A super fund trust is set up for the sole purpose of providing retirement benefits to its beneficiaries. The trust deed governs how the fund is set up and how it will operate and must be used in conjunction with the superannuation laws.

There are many different investment strategies for SMSFs according to the fund's trust deed and operations.

Common Tax Deductions

Deductible expenses for SMSFs vary according to the nature of investments and the trust deed, however there are some general expenses that apply to most funds.

The rules for tax deductibility for SMSFs are different to those for individuals and businesses. Many people are used to claiming deductions for certain things in business or property investment and find they don't apply to SMSF tax returns. We can help clarify what's deductible and what's not.

Expenses must relate to the sole purpose of the super fund being to provide retirement benefits to is members. There may be some items you want to query with us for the audit and tax return to see if they meet the sole purpose test, such as investment training courses, collectibles and artwork, travel expenses or personal computers.

SMSF Annual Return and Records

Once the formal audit of the SMSF has been completed, the annual return must be lodged with the ATO. The annual return is not only a tax return but also reports regulatory information and member contributions. You must keep all records relevant to the annual return.

Make your SMSF management easy

SMSF management can be time consuming. We can help with researching and managing investments, checking trust deed compliance, setting investment strategies, keeping records and conducting the audit.

Talk to us now and get ahead for your next annual SMSF return.

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The fundamentals of an organisation chart

Sat, 01 Jan 2022 11:53:00 GMT

The fundamentals of an organisation chart

If you want to reduce bottlenecks in your business and increase efficiency, simply redefining your structure won't be enough.

There are five things which are critical to getting the best from your organisation structure:

1. Keep it visual.
Your Organisational Chart should be clear, visual structure that shows how your team works together. Share it with your team and display it so it's visible.

2. Know your departments.
There are 10 departments in every business. It's essential that you understand what these are and the function of each. Understanding the function allows you to understand which department a key responsibility belongs to.

3. Know the roles.
Define every role in your business. Don't shape a role around a person; determine the tasks and responsibilities for role before thinking about the individuals on your team. Remember, each department can only have one leader, otherwise there is confusion for the team as to who they report to and where the accountability lies.

4. Respect the hierarchy.
Determine the hierarchy and how the positions and departments interact. Respecting the hierarchy means that a leader doesn't bypass managers to give instructions to team members and that team members report to their immediate superior.

5. Train the team
Ensure your team understands your Organisation Chart and the protocols around it so they respect it. This training is as important for the leaders of the business as it is for the team members.

Understanding these fundamentals allows you to create an organisation structure that enables effective delegation to free up your time, identifies gaps in your resourcing, and improves your business culture.

Get in touch now to create your Organisation Chart!

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Are you a slave to your business

Sat, 01 Jan 2022 11:53:00 GMT

Are you a slave to your business?

Your business is there to serve you; not the other way around. In other words; you should never be a slave to your business.

Being a slave implies a victim mentality - that the world has simply dealt you a bad hand, that you have no say in the matter. Perhaps you hear yourself thinking you are a slave to your business because your clients need you, or your team can't cope without you, or maybe the economy is busting, or booming... basically, inset any excuse here as to why you can't change. But it is exactly that, an excuse.

The OARBED behaviour model tells us we must act above the line; that we must stay our of BED and take Ownership, Accountability and Responsibility for our actions - and choices. So, what's stopping you from taking control of your business? What must you do to be a victor?

No more excuses - it's your business, you make the rules, choose not to be a slave!

Need accountability coaching? We can help you be the master of your business.

"Success isn't a result of spontaneous combustion. You must set yourself on fire." - Arnold Glasgow.

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Create the perfect business plan

Sat, 01 Jan 2022 11:53:00 GMT

Create the perfect business plan

To solidify where you want to go, creating a solid business plan should be one of your first goals in your business.

An official, written plan helps you define your vision, see what problems need solving and proves to banks, investors and lawyers that you are serious about your business. It may also uncover opportunities and clarify objectives for your team.

Your business plan should define your customers, evaluate your target audience and opportunities, so you can be clear about who you are up against.

The following guide covers the main sections required, including operations, marketing and staff.

Put some time in the diary to work on a plan for your business and talk to us.

We can help you develop your ideas, gather the numbers and support you if you have questions.

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Improve your work-life balance

Sat, 01 Jan 2022 11:53:00 GMT

Improve your work-life balance

Most of us aim for work-life balance, but it can be a tricky thing to do when everything gets busy. Here are a few tips that might help at any time of year:

Running a small business can be rewarding but also overwhelming - with early starts, long days and often no weekends. If you are feeling the strain, we can help by ensuring you have the systems in place to reduce the paperwork and by assisting you to focus on your goals and priorities.

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Cash verses accrual accounting explained

Sat, 01 Jan 2022 11:53:00 GMT

Cash versus accrual accounting explained

The difference between cash basis and accrual basis accounting comes down to timing. When do you record revenue or expenses? If you do it when you pay or receive money, it's cash basis accounting. If you do it when you get a bill or raise an invoice, it's accrual basis accounting.

Businesses that use cash basis accounting recognise income and expenses only when money changes hands. But because this doesn't take upcoming expenses into account, it could leave you with the idea that you have a higher balance than you actually do!

Businesses that use accrual accounting recognise income as soon as they raise an invoice for a customer. And when a bill comes in, it is recognised as an expense even if payment won't be made for another 30 days. This means you have to watch invoices, not just your bank account.

Some types of businesses use a hybrid accounting system. There are lots of rules around who can and can't do this. Speak to us to find out what applies to you.

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Working from home

Sat, 01 Jan 2022 11:53:00 GMT

Working from home? Claim your home office expenses.

If you have a home office for your business, you should be able to claim some of the costs involved in maintaining, owning and using your home. It is important to be aware of what you can and can't claim, and the record-keeping involved in making a claim.

How does it work?
In order to claim, the space you use must be used primarily for your business. This doesn't mean setting up at the kitchen table from time to time, it means having a dedicated space that you work from. If you are selling online and storing stock, you may also be using other spaces in your house for storage or stock maintenance. If you are making or creating products, you may be using other areas like your kitchen or workshop.

Costs that you might be able to claim include:

You may also be able to claim the costs of some trips in your car if these are from your home office to other locations where you are carrying out business.

The ATO has developed a calculator tool, to help you better understand what you might be able to claim. View the tool here .

Keeping track of your costs
Making sure you keep a record of all your expenses. it is important to keep your personal and business expenses separate. Consider using online accounting software so the paperwork is kept in good order.

We can help review your home office expenses to make sure these are included when you claim.

Talk to us, we can help.

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Issue payment summaries for non-employees you have witheld tax for this year

Sat, 01 Jan 2022 11:53:00 GMT

Issue payment summaries for non-employees you have withheld tax for this year

Annual payment summaries must be provided to your employees and any other people you have withheld tax for by the 14th July. Start reviewing the year's payroll and relevant supplier reports now so that you can issue the payment summaries without delay.

If you have withheld tax on behalf of people who are not your employees, such as suppliers who have not quoted an ABN, foreign residents or non-residents, you still need to issue payment summaries.

Things to review before finalising the payment summaries:

If you have been regularly checking throughout the year that your payroll figures are correct, issuing payment summaries to suppliers and others by the 14th July should be accurate, straightforward and prompt.

If you are not sure whether payees should be receiving payment summaries or not, let us review your payroll, supplier and withholding figures for the year before you issue payment summaries to payees. Be quick - this has to be done by 14th July!

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Insuring your business

Sat, 01 Jan 2022 11:53:00 GMT

Insuring your business

It's not just fire or theft that you have to consider these days. Insurance can provide coverage against accidents in the workplace, harm to clients through oversight or error, medical expenses, malpractice, data braches and much more. So, insurance isn't just about piece of mind. When the worst happens, it can also be the difference between rebuilding your business, or having to shut up shop.

Before you buy any policy, it's important to take the time to understand the fine print. Make sure you supply all the necessary information to the company you're purchasing through, as providing misleading information could invalidate your policy.

In Australia, some forms of insurance are compulsory for businesses such as workers compensation if you have employees, and third party personal injury insurance, which is often part of your vehicle registration fee.

The risks you face and the policies available to cover these risks vary from business to business, and by industry. They'll also change over time so a regular review is a good idea. No single policy can cover all your business risks so it's likely you will need more than one policy. You can visit the Department of Industry, Innovation and Science to see a list of common policy types for business . Also give us a call and talk to us, we can help.

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Prepare for finalising 2019 in single touch payroll

Sat, 01 Jan 2022 11:53:00 GMT

Prepare for finalising 2019 in Single Touch Payroll

If you are already reporting Single Touch Payroll (STP) to the ATO, there is a different process for issuing payment summaries from now on.

Employers must provide payment summaries to employees by 14 July. In the STP reporting system, employers must make a finalisation declaration by this date, in order that the employee's information will be released in their myGov account and listed as 'tax ready'. This replaces the need to issue payment summaries. However, if you are unable to make a finalisation declaration by 14 July, you still need to issue payment summaries to employees by other means by the due date.

The ATO is offering additional time up to 31 July 2019 to make the finalisation declaration for employers who have started STP during the 2019 financial year.

STP Payroll Checklist
Be efficient and prepare as much as you can now, by checking the following:

Finalising Single Touch Payroll
It's important to verify payroll figures before finalising, in order to minimise the chance of errors and having to re-issue at a later date. Once the payroll year is completed at 30 June, you can then analyse the payroll amounts for each employee and cross-check against the numbers in your profit and loss accounts.

Talk to us about making the STP end of year process easier by reviewing and validating your payroll figures prior to finalising the data and lodging with the ATO. The end of the payroll year will be here sooner than you think!

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How to write engaging content for your marketing

Sat, 01 Jan 2022 11:53:00 GMT

How to write engaging content for your marketing

Content marketing is a key weapon in your company's sales and digital marketing armoury.

To promote and profile your business in the digital age, you will need to create web content, blog posts, social media posts and email campaigns - and this requires having the resources to produce high-quality, engaging content on a frequent and regular basis.

But how do you write interesting content that will engage with your target audience.

To craft the best content:

Start your content marketing journey

If you want to kickstart your content marketing journey, the key thing is to start writing. You will get better with each blog, news update or LinkedIn post that you create - and before long, you will have a regular content process in place to help raise your brand profile.

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Employing casual workers. Follow the rules

Sat, 01 Jan 2022 11:53:00 GMT

Employing casual workers? Follow the rules

Having access to a casual workforce can be a great way for business to manage busy periods while keeping ongoing costs low. Before you jump at the opportunity, it is important to understand the rules.

With the increasing casualisation of the workforce in Australia, there is a large and accessible pool of eager workers. Many students and those re-entering the workforce are looking to fill a gap in their employment or gain valuable experience. If you want to attract strong candidates to roles in the future, gaining a good reputation for treating your casual workers properly can set you up for success in the future. The right casual employee may even become an invaluable part of your business and be a great fit for a permanent role.

What is a casual employee?

The Fairwork Ombudsman defines a casual employee as an employee who "...does not have a firm commitment in advance from an employer about how long they will be employed for, or the days (or hours) they will work." This means that they are not obligated to commit to all work on offer from the employer.

How is a casual employee different from a part-time employee?

Unlike casual employees, your part-time and full-time employees have fixed contracts or guarantees of ongoing employment and can expect to work regular hours. They also have entitlements, such as leave and must give or receive notice to end the employment.

Casual employees have no guaranteed hours of work, usually works irregular hours, don't get annual leave and can end employment without notice.

What are the employer's responsibilities?

We can help you set up the right structure for casual employees.

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How to make your out of office email work harder

Sat, 01 Jan 2022 11:53:00 GMT

How to make your out-of-office email work harder when you're away

About to head off on holiday? Here's why you should take some time to create your out-of-office message.

There are a few essentials you out-of-office message needs to contain. Before you try anything fun with yours, make sure you have the essentials covered. Check that your auto-response has:

Now that you have got your bases covered, it is time to get creative. The rest of your email is a great space to create a memorable experience for the person who is trying to get in contact.

So, here are a few ideas:

Or, if you're ready to really take things to the next level, try a humorous message. Done properly, this is a great way to brighten the day of the person getting your bounce-back. Of course, you will need to consider all of the people who could be emailing you during this time, and how they might respond. If in doubt, play it straight.

Heading out of the office? Don't let your business affairs slide. Book an appointment with us to make sure you are covered for the holiday period.

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Have you got a strategy for a finacially stress-free holiday period

Sat, 01 Jan 2022 11:53:00 GMT

Have you got a strategy for a financially stress-free holiday period?

Christmas holiday breaks are a time to spend with family, friends & have a chance to recharge for the year ahead. We look forward to warmer weather and finally setting up an out-of-office email for the break. However, for business owners, this time ban be stressful without careful cash-flow planning.

Even if you do continue to operate through the holiday shutdown season, your customers' financial behaviour may not remain the same.

It can be pretty disappointing to work hard all year only to find that once you have paid staff, overheads and creditors, you have little or nothing left in the bank to cover your own time off.

The strategies and tips shared below are generalised, however, we are here if you need to budget and prepare a cash-flow forecast. We can also help if you need assistance in applying for short term finance to get you through the break.

Why is cash-flow planning particularly important at this time of year?

Staff leaves needs to be covered in addition to your normal fixed overheads like rent, creditors and tax compliance. The budget and forecasting process ensures you know your numbers and are prepared. If you are shutting down, you won't be driving revenue during this period and sales may take time to get started again in the new year.

Here are some simple strategies that can help

Need financial support?

If you can't make ends meet, now is the time to organise short term financial relief like an arranged overdraft of loan, rather than hoping it will come right. Please let us know if you need any help with cash-flow forecasting, budgeting or finance applications.

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Recruting new staff. Start with a plan

Sat, 01 Jan 2022 11:53:00 GMT

Recruiting new staff? Start with a plan

When you are employing staff, there are a number of things to consider for your business.

Before you place the job ad, review your current staffing. Is there existing talent and capacity within your team that could cover the role? When you have established that your current staff capacity requires you to hire, you will want to follow a robust process to ensure you attract quality candidates.

Job description - Be clear concise and accurate about the role and what experience the candidate will need. Include details such as the start date, hours, and remuneration in order to give your candidate all the information they need to make the decision to join you.

Business background and history - Remember they will be researching you prior to applying to see if they feel they would git in and want to work for you. Your website and social media should provide information about who you are and your company values.

Budgeting for employment costs

It's easy to think about the base hourly rate as the main cost of employing staff, but there are other costs that also need be taken into account. And these will differ for individual employment contracts.

Make sure you have accounted for:

In summary

It is an exciting time when your business growth provides the opportunity to add new talent to the team.

Although there is a lot to consider when employing new staff, success is in the planning. We can assist with your budget and compliance obligations before you grow the team. Let's make the employments process easy.

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Introducing remote working?

Sat, 01 Jan 2022 11:53:00 GMT

Introducing remote working?

70% of professionals work remotely at least once a week, according to a study by serviced office provider IWG. Remote working has become more and more common as developments in technology have allowed us to communicate and collaborate no matter where we are. In fact, most of us already logging on from home or holiday.

Remote work is on the rise, and it's challenging traditional ideas about where and when work should take place. Offering flexibility to your staff can be a valuable tool to both attract new talent and retain your existing team. Make sure you've set up the systems to support this way of working.

So what do you consider before introducing remote working?

When you are working with a distributed team, communication is key, and as the employer, it is your job to provide the resources and systems to make this happen. Typically, these might include:

With these essentials in place, the biggest factor in making remote work a success is workplace culture. Consider upskilling your management team to make sure they are ready to support your remote staff or even to give them the skills to allow them to do their roles remotely.

Remote working can be isolating for an individual and sometimes the meaning in email and text can be lost so it is important to factor in a regular face-to-face meeting or video conference to bring coworkers together, enable mutual understanding and to build the team culture.

If you are planning to offer remote work to your team, make sure you have strong communication channels, and robust systems to support your flexible workers.

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Give yourself a present this Christmas

Sat, 01 Jan 2022 11:53:00 GMT

Give yourself a present this Christmas

Go outside for a walk!

Owning and working in a small business can eat up all your spare time. Exercise or time for yourself is often the first thing that is abandoned to fit in the many other things you have to do in a day. And while many of us finish the year with lofty goals for exercise in the new year, these lofty goals can be hard to achieve.

Is this you?

Here's an idea... Instead of setting goals that are vague and big, set smaller more specific goals that are much easier to achieve. Make a point of getting outside every single day and getting 'a little' exercise - it doesn't have to be a gym membership, a bootcamp or going running. Even just a walk around the block will be a step in the right direction!

A study in the journal Preventive Medicine found that just by minimising sedentary activities, and replacing some of them with light-intensity activities can achieve benefits for your health. So start small and stick to it. Soon you will be benefiting from the short time away from work, more time to think, and the fresh air.

For a healthy lifestyle, the adult recommendation is at least 30 minutes of moderate physical activity on five or more days per week. This will not only increase your quality of life but also your sense of wellbeing. So give yourself a present this Christmas and go for a walk.

Happy Christmas!

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Christmas parties and presents - and tax

Sat, 01 Jan 2022 11:53:00 GMT

Christmas Parties and Presents - and tax!

Christmas is a splendid time to acknowledge and reward your employees and other associates by celebrating and giving gifts. But don't get caught out by entertainment and gifts as business expenses is not always straight-forward, as there are implications for GST, income tax and fringe benefits tax (FBT).

Is it entertainment?

Entertainment is generally not a deductible business expense. Entertainment rules can be tricky, but in general, the more lavish the meal or event, the more costly, the later in the day and if alcohol is involved then it will generally be called entertainment.

Fringe benefits tax may apply to entertainment benefits provided to employees, and if an event or gift is considered to be entertainment then you cannot claim a business deduction or GST.

A Christmas party for employees, spouses, suppliers and customers may or may not be classed as entertainment. Check with us to see if any of the party costs can be claimed.

Keep it free from FBT

Enjoy the party

Talk to us when planning your Christmas gifts and events to check how much may be claimed as business expenses. Once you know the costs of throwing a party and giving gifts and bonuses, you can put your feet up and enjoy your own party!

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What role does your board play

Sat, 01 Jan 2022 11:53:00 GMT

What role does your board play? Understanding leadership

Once your business is incorporated and becomes a limited company, you will need to have a 'board of directors' in place to provide your core leadership and run the business.

But why do you need a company board? And what are the different roles and functions that each member of the board supplies?

Leading the business from the top

Your board of directors exists to manage the future success of the business. Whether it is hiring talent for your senior management team, defining your key business strategy or making decisions on acquisition, your board must have the best interests of the company at heart.

The board key aims will be to:

Your board will meet regularly to review performance, discuss new opportunities (and threats) and make key decisions about your future path.

Key positions on the board:

Chief Executive Officer (CEO) - the CEO is the highest-ranking executive in the company and will generally be the public face of the business. They manage all the key elements of the business and drive the important executive and strategic decision.

Chair of the Board (COB) - The Chair runs board meetings, ensure the board is meeting its duties and provides leadership to the other directors on the board. The Chair is a vital role and had real authority over both the board and senior management.

Chief Operations Officer (COO) - The COO oversees all operational and procedural elements of the company and will work closely with your CEO when it comes to defining the future operational elements of the business.

Chief Finance Officer (CFO) - the CFO is responsible for the financial elements within your business strategy. Their aim will be to generate revenues, reduce costs, maintain positive cashflow and - ultimately - drive the best possible profits and returns.

Chief Marketing Officer (CMO) - the CMO is in charge of all marketing and promotion of he business. They will create your marketing strategy and will ensure all promotional activity is aligned with the broader company business strategy.

Chief Technology Officer (CTO) - the CTO heads up the IT and technology aspects of the business. This will mean keeping systems up to date, maintaining the right security requirements and ensuring the company's systems are promoting efficient operations.

Non-Executive Directors (NEDS) - Some boards will also include NEDs. These directors are not part of the executive team and don't make operational decisions. They are there to provide experience and advise on policy and planning.

Talk to us about setting up your company board

If you are looking to get incorporated, we can help you set up your company board. We will help you refine which executive roles are needed, who does what and how to set up the relevant company documents to formalise your board structure.

Get in touch to get your board in shape.

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How productive are your business meetings

Sat, 01 Jan 2022 11:53:00 GMT

How productive are your business meetings?

However big or small your company, business meetings are likely to be an inevitable and regular part of your working week - but are you getting the most from these meetings?

For operational decisions to be made, marketing campaigns planned, or sales initiatives cooked up, you and your team need time to sit down and discuss the details. But once you find a free window in everyone's diaries and get your team in the same room, how do you then run a productive business meeting?

This answer is to have a clear and methodical way of driving these meetings.

Getting the maximum value from a meeting
We've all sat through overly-long meetings where people's attention wanes, tempers get frayed and nothing constructive gets decided. Unproductive meetings create more problems than value - curbing engagement, destroying motivation and failing to move your project forward.

To make your meetings proactive and productive:

Know WHY you are having the meeting - if you are taking precious time out of everyone's day, make sure there is genuine reason for a meeting. It may be a project kick-off meeting, follow-up meeting to gain feedback, or a finance meeting to discuss numbers. Whatever the key driver, agree on this before inviting people and include a self-explanatory subject line in the invite, so people know why they are attending.

Have a clear agenda - a meeting without an agenda is like a business without a strategic plan. A meeting needs direction, so set out the key discussion points, what needs to be covered and how long you estimate the meeting will last. Draft a written agenda with specific agenda points, that's emailed out to all invitees beforehand and is shared on screen during the meeting.

Invite the right people - a meeting with too many people in the room can soon descend into chaos. Only invite the staff and stakeholders that have direct involvement in the project or discussion. This way, you can stay focused, the agenda won't go off on a tangent and you (hopefully) will reach some definite and productive conclusions.

Keep minutes of the meeting - it is very easy to sit through a productive meeting and then, on the next day, have no clue what was agreed. For this reason, keeping minutes is essential so there is a record of what was said and finalised. This could be formal written minutes, quick notes on action points or even an audio recording of the meeting - automated transcription software tools, like Otter.ai, can provide transcripts on the go.

Summarise key action points - for a meeting to be truly productive, you need to end up with some meaningful action points at the end. Record each action point, who it has been assigned to and when you are expecting this to be actioned. This list of action points then becomes the starting point for your next meeting, so you can monitor performance and make sure the project is kept on track.

Are you getting the nest output from your business meetings? We can help you structure your meetings in the right way, and give you advice on driving a proactive meeting style that gets the job done.

Talk to us about getting more value from meetings

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Finding the balance

Sat, 01 Jan 2022 11:53:00 GMT

Finding the balance

Looking for a little more work-life balance?

Sometimes it seems impossible when you are in the thick of it. The following ideas might help provide some light at the end of the tunnel.

Prioritise - Work often dictates to us, rather than the other way around. Create a list of all the things that need doing and categorise them. For example, work out the tasks that are 'important but not urgent' and 'urgent but not important'. Task or project management tools like Trello can simplify your work load and help to prioritise your time.

Delegate - Letting go can be an opportunity for others in the team to shine. Alternatively, bring in a contractor to help clear the load and you may find they bring in new ideas, create opportunities or streamline the process. Don't limit yourself to what's on at work - think about what would help at home too, such as a meal kit delivery to simplify the end of the day.

Book it in the diary - We are all guilty of putting off an exercise class or a coffee catch up because work takes over. These events are important for your mental and physical health and may give you space for creative thought or the ability to think with more clarity. Plus, you will return to work feeling more productive. Book it in and consider joining a group so you are more committed to turning up!

Use the technology to help you - 'Always on' technology such as smart phones are designed to make life easier but we've ended up busier than ever. So choose the apps and tools that can reduce the stress. Whether it is for communication and meetings, or your filing or accounting. An app could save you time and allow you to get on with other things. We can help with the right accounting software solution to reduce the paperwork.

Share with your network - Are there individuals in your network who face the same challenges or can help you achieve your goals? Set up a monthly breakfast to catch up, support and learn from each other. You will go back to work with new inspiration.

Do what you love - At the end of the day, your work is 'part of' your life not separate from it, so if you enjoy it, you will feel you have more 'balance'.

Get in touch to talk about how we can help you achieve balance in your business.

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Cash vs Accrual Accounting

Sat, 01 Jan 2022 11:53:00 GMT

Cash vs Accrual Accounting - It's all about timing

What are the two methods?

Understanding cash and accrual accounting comes down to timing.

Let's have a closer look.

Cash accounting - this method does not recognise accounts receivable or accounts payable. Each Business Activity Statement (BAS) is prepared on money received and spent within the BAS period. Whilst you still have to manage cashflow and planning, the financial activity is more aligned with the business activity.

This simple system makes sense to many small business owners as they are generally operating on a short lead time for bills and invoices. This means you get an immediate snapshot of the money you have in your bank accounts, although you still need to be aware of upcoming liabilities. Remember - Not all the money in your bank is profit! Cash-based accounting is available to businesses with less than $10 million turnover.

Cash accounting requires a good understanding of financial reports to get a true picture of the business financial position. There are many small businesses that have their activity statements prepared on a cash basis, while their tax returns are prepared on an accrual basis.

Accrual accounting - this method does not recognise accounts receivable and payable and is a more complex system suited to larger businesses. Reports are prepared taking into account GST on invoices issued and bills received, regardless of payment.

This method requires a greater understanding of the balance sheet accounts and cashflow planning. The bookkeeping processes and accounting can be more involved, requiring movements to be made to allocate funds to the relevant accounting period. This method is better suited to businesses that allow for longer payment terms, contracts that are paid over time and have large accounts with suppliers.

Accrual accounting actually shows your true financial position when your accounts receivable and payable and other liabilities are kept up-to-date and accurate. This means you know what people owe you and what you owe others, so you can make well-informed business decisions and plan longer-term.

Here's an example:

What's best for your business?

Micro and small businesses are better off with the simpler cash BAS system. However, as a business evolves into a larger more complex entity, even if it has not yet reached the compulsory accrual threshold of $10 million, it can be beneficial to swap to accrual accounting for both BAS and tax returns.

Not sure? We can help you decide whether accrual BAS reporting is right for you.

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Key points in the federal budget 2021-2022

Sat, 01 Jan 2022 11:53:00 GMT

Key points in the Federal Budget 2021-2022

The Federal Budget 2021-22 has many announcements and proposals aimed at economic recovery and includes investment in jobs, essential services, business incentives and tax cuts.

Budget Highlights for Business

Funding your business - equity or debt

Sat, 01 Jan 2022 11:53:00 GMT

Funding your business - equity or debt?

When you are looking to expand and grow your business, you will almost certainly need extra finance to achieve this. But what is the best funding route for your company?

Should you opt for equity or debt when it comes to sourcing this additional investment and capital? And what are the pros and cons of these two options?

Choosing the right funding for your business

Unless your business is in the fortunate position of having enough surplus cash to be self-funding, you are going to need additional funding in the form of either equity or debt.

There are some key differences between these two routes:

Equity = investment from private investors or venture capitalists, in exchange for shares in the company. It brings in large sums of money, but does mean handing over some control of the company to these new shareholders. On the flipside, you bring in the experience of seasoned business people to help run the business.

Debt = borrowing money from a lender or bank, in the form of a business loan or asset finance etc. Debt gets you the money you need, but increases your overall liabilities as a company (which doesn't look great in the company balance sheet). However, you do retain more control of the business and can steer your own strategic course.

Whether you opt for private investment, or increased debt will depend on your current pain points, your financial health and your longer-term strategic goals.

For example:

If you are aiming to grow fast then borrowing money and increasing your debt is the preferable option. Using routes such as invoice finance, asset finance or secured business loans you will be able to fill the cash gaps and continue trading.

Talk to us about taking the right route to funding.

If your business is in need of extra cash, come and talk to us. We can help you understand your true funding needs. We can help with your approach to banks, lenders or private investors who can provide the required capital - so you can achieve your business goals.

Get in touch to begin your funding journey.

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Pay and payroll mistakes that can cost your business

Sat, 01 Jan 2022 11:53:00 GMT

Pay and payroll mistakes that can cost your business

Getting pay or payroll wrong is a major financial and legal risk. Business owners and management are ultimately responsible for any pay mistakes and their consequences, which could be a hefty fine from a Fair Work Ombudsman Inspector, or the Australian Taxation Office, as well as any interest and legal fees.

Mishandling pay can also harm employees' trust and confidence in the business, which can end up sapping morale and damaging your reputation. Unfortunately, pay errors aren't rare. A 2018 study estimated 2.4 millions Australian employees could be affected by payroll underpayments, at a cost of $3.6 billion.

The combination of good payroll and HR systems will help reduce mistakes and non-compliance, and will make it quicker to identify and resolve any issues.

Here are some common pay errors to watch out for:

This article goes into common pay and payroll mistakes in more depth.

Track and understand customers shopping habits using cookies

Sat, 01 Jan 2022 11:53:00 GMT

Track and understand customers' shopping habits using cookies

You know what chocolate-chip cookies are, but what about the 'cookies' that websites ask you to accept and that are somehow linked to digital marketing?

HTTP cookies, to give them their full name, are small packets of information that are stored on your computer when you use a web browser. So, when you visit your favourite websites, you will have downloaded certain cookies onto your device.

These cookies fall into three basic categories:

What practical use do these cookies have for your business?

Tracking and understanding your customers' shopping habits

Third party tracking cookies are the kind of cookie that we are really interested in. When used in a smart way, they help you to greatly improve the effectiveness of your marketing.

The information collected by third-party tracking cookies can be invaluable. The more you know your customers, the better you can serve their needs, and cookies help you do this in the digital realm by collecting the most useful data about your customers and prospects.

Cookies help by:

By using tracking cookies in a smart way, you get a far clearer overview of your customers likes, dislikes and buying habits. Used wisely, they are in incredibly useful tool for a modern business.

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How to create a one-page marketing plan

Sat, 01 Jan 2022 11:53:00 GMT

How to create a one-page marketing plan

Generating leads is the biggest challenge faced by many business owners. And if you want more enquiries, leads and sales, that means investing in more marketing.

If you've never attempted any marketing of your business, creating a marketing plan may seem like a daunting prospect. But, in fact, the strategy behind your marketing is merely an extension of your wider business strategy - and, fingers crossed, you know this inside out.

When you are looking to kickstart some promotional activity, or want to rejuvenate your current marketing, a short one-page marketing plan gives you all the foundations you need for success.

Having a clear strategy behind your marketing

Raising the profile of your business, and underlining your unique selling point (USP) in the market, is vital if you are going to make your business stand out.

In the digital age, we are faced with a huge number of different online and offline marketing channels to choose from. But without a defined strategy behind your marketing activity, and a clear plan to manage this activity, you won't achieve the intended return on your investment.

So, how do you create a workable one-pager plan to kickstart some effective marketing?

Here are some key steps to include in your marketing plan:

When you're ready to create your marketing plan, start with your business strategy. Spend some time gathering information on your target audience and the marketplace. This will help you to establish your point of difference and decide on the marketing techniques and channels that will deliver the best possible ROI.

Get in touch to build your one-page marketing plan.

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Take some small steps to better wellbeing

Sat, 01 Jan 2022 11:53:00 GMT

Take some small steps to better wellbeing

We are living in uncertain times right now. The situation changes daily with new challenges to overcome. We are all feeling the strain. So what can we do to manage the stress and regain some much needed sense of wellbeing?

Research shows that doing something (no matter how small) is the best way to manage anxiety. There is a lot we can't control right now but there are also things you can do, and simply taking action can help us feel in control and therefore happier.

Here are some ideas :

Anxiety and stress are a normal part of everyday life, but not when it takes over. If you would like more resources for yourself or someone you know, there is lots of information on websites like Beyond Blue , Health Navigator and Mind .

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Building an e-commerce site for your business

Sat, 01 Jan 2022 11:53:00 GMT

Building an e-commerce site for your business

If you are selling directly from your website, yours is an e-commerce site. And, it needs to do more than a normal website.

Think about the following 6 elements:

1. Use advanced features.
Think about your audience and consider what features would make buying from your site easier and more pleasant. These could be the ability to buy gifts for others, track delivery, or check order history. If your visitors come from around the world, you can office to show them prices in their local currency, or only the products that will ship to their destination.

2. Follow a no-surprises policy.
Tell people about any extra charges, delivery fees and the returns policy upfront. The more information you can provide, the better the experience for your customer. And happier customers means fewer support tickets you will have to process.

3. Focus on great imagery
Images must replace the in-store experience where shoppers can see and touch products. So, photography that makes products look good, while also giving as much detail as possible, will help reassure consumers that they are making the right choice.

4. Make payment processing easy.
You would be surprised at how easily you can lose a sale if paying feels too hard, or take too long. Make sure your payment process is easy with clear steps until the sale is confirmed.

5. Make sure it is secure.
People are trusting you with valuable information such as their payment details and contact information. You need to keep that information safe. To protect the confidentiality and integrity of their data use HTTPS (hypertext transfer protocol secure). The 'S' is important as it makes sure that the communications between a user's browser and your website are encrypted. Google now indicates connection security with 'secure' in the address bar so make sure your site is up to date.

6. Support
Remember your e-commerce site replaces the in-store experience - help sections with things like FAQS, support desks and live chats can go a long way to replicating the role of the retail assistant. The goal is to make the process feel as easy as possible for your customers - and to be there with help if anything goes wrong.

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The imporatnce of good leadership in a crisis

Sat, 01 Jan 2022 11:53:00 GMT

The importance of good leadership in a crisis

When the going gets tough, your role as leader becomes even more important to the future survival, recovery and success of the business. As we've seen during the recent coronavirus pandemic, the 2008 economic crash and many previous downturns, having a strong leader at the helm serves to give your people and strategy some real purpose - allowing you to make the right decisions, weather the storm and guide the business along the correct course.

So, what does good leadership in a crisis look like? And what steps can you take to become the role model, strategic thinker and leader that your people deserve?

Leadership that keeps everyone on board

To begin with, it helps to understand what kind of leader you want to be. Are you aiming to be strong, dynamic and forthright? Or do you want to be empathetic, open and inspirational? There are pros and cons to both, but in a crisis, there is a need for a good mix of both.

There' no one single 'right' way to lead. Every boss is different, every company is unique and every team requires a different approach to management. However, there are some hard-and-fast foundational guidelines that will help you to provide real leadership in tough times.

To become a successful leaders in a crisis:

Become the best possible boss you can be - a leader who can help their business survive and grow!

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Have you got a strategy for a financially stress free holiday

Sat, 01 Jan 2022 11:53:00 GMT

Have you got a strategy for a financially
stress-free holiday period?

Christmas holiday breaks are a chance to recharge for the year ahead especially after the year we have had, We look forward to warmer weather and finally setting up and out-of-office email for the break. However, for business owners, this time is stressful without careful cash-flow planning.

Even if you do continue to operate through the holiday shutdown season, your customers' financial behaviour may not remain the same.

Why is cash-flow planning particularly important at this time of year?

Staff leave needs to be covered in addition to your normal fixed overheads like rent, creditors and tax compliance. The budget and forecasting process ensures you know your numbers and are prepared. If you are shutting down, you won't be driving revenue during this period and sales may take time to get started again in the new year.

Here are some simple strategies that can help.

Need financial support?

If you can't make ends meet, now is the time to organise short term financial relief. Please let us know if you need any help with cash-flow forecasting, budgeting or finance applications.

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How does an accountant save you money

Sat, 01 Jan 2022 11:53:00 GMT

How does an accountant save you money?

Turning a profit will be high on your list of goals as a business owner. And if you want to generate the best margins, that means keeping an eye on the money that is going out of the business, as well as what is coming in.

So, how can your accountant help with this?

The days where your accountant just did the bookkeeping, compiled your accounts and filed your tax return are well and truly over. Modern accounting firms are far more interested in helping you with your financial performance, your business strategy and offering flexible value-add services that put you in better control of your finances.

If you partner with the right accountant, we can actually save you money - in both the short, medium and long-term. And that's good news for the growth of your business.

Key ways your accountant can enhance your financial health

The less expenditure you have as a company, the bigger your profit margin. It sounds incredibly simple, doesn't it? - The smaller your costs, the larger your profit. But if you are not fully in control of your financial management, it is very difficult to know WHERE you are spending money, and WHY you are not achieving your profit targets.

This is where working with a finance professional adds a huge amount of value. Your accountant helps put you back in the driving seat of your finances - and that's never been more needed than in the current economic climate.

So, what specific things can your accountant do and what will the impact be on the future of your business?

Talk to us about cutting costs and boosting profit

Rather than running your business on a wing and a prayer, by working with an accountant you get a clear picture on your business financials. We will help cut unnecessary costs, optimise the most profitable parts of the business and increase your overall return on investment.

Let's talk about how we can work together to support your ongoing business profitability.

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Should you buy or lease your business assets

Sat, 01 Jan 2022 11:53:00 GMT

Should you buy or lease your business assets?

There are certain items of equipment, machinery and hardware that are essential to the operation of your business - whether it's the delivery van you use to run your home-delivery food service, or the high-end digital printer you use to run your print business.

But when a critical business asset is required, should you buy this item outright, or should you lease the item and pay for it in handy monthly instalments?

To buy or to lease? That is the question

Buying new pieces of business equipment, plant, machinery or vehicles can be an expensive investment. So, depending on your financial situation, it's important to weigh up the pros and cons of buying, or opting for a leasing option.

First of all, let's look at why you might decide to buy the item...

Buying: the pros and cons

Leasing: the pros and cons:

Talk to us about whether buying or leasing is the best way forward

Whether you opt to buy or lease your equipment isn't always a straightforward decision to make - so it's a good idea to consult with your accountant early on in the decision-making process.

We can help you review your current financial position, assess your available cashflow and look at your regular cost base to decide whether buying or leasing is the right thing for the business.

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Single Touch Payroll reporting for closely held payees mandatory from July

Sat, 01 Jan 2022 11:53:00 GMT

Single Touch Payroll Reporting for Closely

Held Payees Mandatory from July

Does your business make payments to closely held payees? If so, you will need to start reporting these payments via Single Touch Payroll (STP) from July 2021.

Closely held payees include family members, directors or shareholders of a company and beneficiaries of a trust.

If you are already reporting employees via STP, then it will be easy to include the extra payees from July.

If your business only pays closely held payees then you may not have signed up for Single Touch Payroll. If not, now is the time to establish a reporting solution.

Typically, closely held payees are paid amounts on the advice of the tax agent, and often these amounts are not calculated until they do your tax return. In this situation, the business can report estimated amounts via STP.

Three Ways to Report Payments to Closely Held Payees

If you're reporting quarterly estimates, it's important not to underestimate amounts to be paid, as the business may later be liable for superannuation guarantee late charge and penalties.

Small employers have until the individual's tax return due date to submit the STP finalisation declaration. (For all other payees, the finalisation is due by the usual date of 14 July).

If you would like help with Single Touch Payroll reporting for your closely held payees, talk to us about planning ahead for lodgement and calculating estimates. We will help organise your systems so you are prepared for STP reporting obligations.

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Establishing an advisory structure for your small business

Sat, 01 Jan 2022 11:53:00 GMT

Establishing an advisory structure for your small business

When you're planning for success, it's important to keep your eye on the big picture. This means developing your business in ways that will help growth and could mean appointing advisors to help you.

Getting some additional advice or support may be a good idea when you:

When you're considering an advisory function, you may wish to set up an advisory board or look for a business mentor.

Setting up an advisory board
An advisory board gives small businesses the benefit of other's knowledge without the cost and formal nature of a board of directors. An advisory board is generally associated with a not-for-profit company, but lots of for-profit companies benefit from this resource too. Advisory boards help provide insight and advice to a company, but not have decision making power or have duties as directors.

Your board should bring a range of perspectives to the position. It should also be a space in which members are going to be comfortable disagreeing, so choose your members and set the tone carefully!

Finding a business mentor
If you're not quite at the level where you would consider forming a board, finding a business mentor is a great idea. A business mentor can help you to step outside your business and look at the wider picture. Together you can identify ways to take opportunities or meet challenges. If you are looking for a mentor, start by identifying the expertise and knowledge you are seeking. Build your business network, look at local mentoring organisations and connect with industry-specific networking organisations. Look for someone who has relevant experience but remember that you should also choose someone you feel comfortable sharing your business with. And, don't forget to repay the favour and become a mentor when you feel you're ready!

Talk to us about your business goals and how to set up your advisory structure.

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Setting the right growth goals for your business

Sat, 01 Jan 2022 11:53:00 GMT

Setting the right growth goals for your business

If you're going to grow your company in the right way, pinning down your goals and having a clear vision for the business from the outset is vital.

So, how do you define the goal that is right for you?

Driving your performance over time
Your financial model will drive the way you generate value, so it's important to make your business strategy fit the goals and type of growth you want to attain.

To set your finances up in the optimum way, you must:

Talk to us about goal-setting

If you're looking to grow your business, we'll help you talk through your core vision, define the most effective goals and set up your finances to achieve these aims.

Get in touch with us today to talk through your business goals.

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Staying afloat and thriving through a downturn

Sat, 01 Jan 2022 11:53:00 GMT

Staying afloat and thriving through a downturn

When the future looks uncertain, what can you do to prepare and strengthen your business?

Recent times have certainly shown us that the future path of your business can change in an instant - usually, due to influences that are far beyond our own control. The Covid-19 pandemic and the ongoing global economic recession have both had a negative economic impact on the business world - so, when a downturn strikes, you need to be ready.

The key is to be prepared, to have a 'Plan B' and to react in a proactive way to the uncertainty. But what elements of your business should you focus on to get your downturn plan ready?

How to keep your business from sinking

To keep your business afloat, you will need to be agile, innovative and resourceful. And being flexible in the face of adversity is also likely to play a big part in your survival.

No business owner has all the answers, and there are some important steps to take if you are going to overcome the challenges of a downturn and stop the business from sinking.

Proactive steps to take will include:

It's all about having that Plan B in place. When (and if) a downturn hits, you are then primed and ready to respond.

Talk to us about getting the specific business advice you need.

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Contractor or Employee - What you need to know

Sat, 01 Jan 2022 11:53:00 GMT

Contractor or Employee - What you need to know

What is the difference between a contractor and an employee and whose responsibility is it to get right?

An employee

A contractor

It is the business owner's legal responsibility to determine the nature of the work and the correct basis of engagement - but we can help you get it right.

Multi Factor Test

There are many factors involved in deciding whether a worker is an employee or contractor and the guidelines must be applied individually to each working relationship. There is no single overriding factor, rather, the totality of the working relationship and nature of the work being done is taken into consideration.

Sole Trader as a Contractor May Not be Right

When sole traders are engaged as contractors, the business owners needs to check whether they really meet the criteria for being engaged as a contractor. Many sole traders engaged as contractors are not actively carrying on a business, even if they have their own ABN, and do not have the level of independence that a contractor should have.

Sole traders are often engaged for their own services and labour, are not free to delegate the work to someone else and must work to someone else and must work under the direction of the employing business. In this case, they should be engaged as an employee and not a contractor.

Factors to Consider

This is not an exhaustive list but some of the main factors to assess.

Contractors or Casual Employee?

If you are not sure whether a worker is an employee or a contractor, check the ATO Employee or Contractor information list.

It's okay to engage a worker as a contractor initially and to reassess the engagement three to six months later if the situation is unclear. However, at that point, if the worker does not meet the contractor definition, but you don't need a permanent employee, put them on as a casual employee. This is often the best solution for both parties so that the employer is compliant with tax, super and employment laws and the worker retains some flexibility while being paid super and having tax taken care of.

The ATO and the Fair Work Ombudsman are particularly concerned with the validity of sole traders treated as contractors, as they are the workers most frequently disadvantaged by being classified incorrectly as a contractor when they in fact meet the test for being an employee.

Get it right to avoid penalties

A business that should have engaged a worker as an employee will be liable for back-payment of entitlements (such as leave, overtime and allowances), and superannuation.

Some situations are straightforward to work out - but many contractor or employee decisions are not so easy with so many factors to consider. Let us help you get it right and sort out the tax and superannuation obligations for all your workers whether contractors or employees.

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Cost management and cutting your expenses

Sat, 01 Jan 2022 11:53:00 GMT

Cost management and cutting your expenses

Operational costs will be one of the biggest areas of expenditure in your business. And the more it costs you to produce your products and/or services, the smaller your end profit will be.

So, if you are going to promote positive cash flow and drive the best possible profit margins, you need to get serious about cost management and bringing down those operational expenses - And doing it in a systematic and methodical way.

A clear focus on cutting costs
With careful management of your operational costs, and the tactical use of accounting cost codes, you can work to clearly defined budgets and quickly improve your financial efficiency.

By focusing on cost reduction, you will:

Talk to us about getting proactive with cost management

If you want to slash your operating costs, we can help you to track, monitor and manage your spending - giving you the information you need to get in control of your costs.

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Set your business up for success with the right structure

Sat, 01 Jan 2022 11:53:00 GMT

Set your business up for success with the right

The structure of your new business has repercussions in terms of tax, costs and the protection of your assets. When you decide on what structure you'll use, keep in mind your future plans, because this may impact your decision.

There are three main structures you could consider.

Sole trader:
If you're operating on your own, this may seem an obvious choice. It's a quick one to set up and incurs minimal costs. Bear in mind that a sole trading business can be trickier to sell, and you are taking on greater personal risk in establishing the business. It may be worth looking into how you can protect your personal assets, should anything go wrong.

Partnership:
If you're working with a partner, you could consider this option. It lets you share the load, along with the costs of getting a business established. You're also sharing the risk and potential liabilities.

Company:
Setting up a company means more admin and higher costs to get going. You'll become a 'director' as the person who runs the company, and a 'shareholder' as a part-owner. Companies have additional reporting duties, but you assume less personal risk. Also, the clear structure and reporting involved, may set you up for an easier sale when the time comes.

You could also consider setting up a trust, but as this is a relatively expensive and complex undertaking, it's less likely you'll go this way initially. You can change the structure as your business develops, but it's important to consult with your accountant, lawyer or advisor as you go.

Before deciding, think ahead to the future you want for your business.

Ask yourself:

How am I hoping to grow the business? If you plan to bring on additional people to run the business alongside you, a company or partnership arrangement may suit.

When do I want to sell the business? Again, while selling any kind of business is possible, the clarity provided by a company may be an advantage and make your business more attractive to a buyer.

How sure am I that this business will succeed? It may be that you are setting out to prove a concept or explore a business idea. If this is the case, you may not look to incur too many costs up-front, and a sole-trader or partnership model may appeal.

Whatever you decide, make sure you understand the tax implications. Talk to us before setting our on your new venture.

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Competitor analysis - know who you are up against

Sat, 01 Jan 2022 11:53:00 GMT

Competitor analysis - know who you're up against

Knowing who your competitors are is a key piece of business intelligence, helping you understand your market and the core threats and opportunities in your sector.

Competitor analysis is the process of identifying, researching and gauging the threat posed by your competitors and is usually carried at prior to launching your business. But monitoring competitors is a useful exercise to undertake regularly, for several reasons.

Regular competitor analysis helps to:

Looking for the threats and opportunities

Start by identifying your competitors - and keep your scope broad.

For example, if you sell chocolate bars, your immediate competitors will be other chocolate makers. But your product may also compete with fruit and other healthy snack foods, (and insight that highlights a potential opportunity to develop a healthy chocolate range).

To start your competitor analysis:

Kick-start your competitor analysis

If you want to have the best possible business intelligence about your competitors, you've got to do your homework. Track and measure your close competitors - and do it on a regular basis to stay ahead of the pack.

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The value of real-time management reporting

Sat, 01 Jan 2022 11:53:00 GMT

The value of real-time management reporting

Improving your financial efficiency requires a clear overview of your key numbers, so you can track your performance and drive improvements.

This is where detailed, up-to-date management reporting makes a real difference. Management information helps you measure your key performance indicators (KPIs), track progress against your core goals and provide some real impetus behind your progress.

Getting proactive with financial management
By setting up management accounts and KPI reporting in the cloud, you get a real-time overview of your business health, helping to guide decision-making and financial performance.

By drilling down into this management information, you can:

Talk to us about setting up management reporting

If you are looking to get in real control of your financial destiny, we will work with you to set up a management pack and KPI dashboard that puts you firmly in the driving seat.

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Natural disaster support available for organisations

Sat, 01 Jan 2022 11:53:00 GMT

Natural disaster support available for organisations

If you have been affected by natural disaster, there are a number of support options available to you. The ATO recognises that you have more important things to deal with than tax and compliance affairs.

Here is a list of the support you could access:

The Australian Government has dedicated funding to provide counselling and mental health support for people affected by the 2019-2020 bushfires.

There are a variety of services available such as free counselling, medical rebates and telehealth facilities. The emergency counselling services can be accessed through existing mental health hotlines, Lifeline , Beyond Blue , Black Dog Institute and Kids Helpline , or through Primary Health Networks run by the Department of Health.

If you would like to find out more about disaster assistance payments, deferral of lodgements and payments or any other support available, the ATO Emergency Support Infoline is 1800 806 218.

And, talk to us so we can help reduce the stress of tax affairs.

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Gift cards and vouchers now have three year expiry

Sat, 01 Jan 2022 11:53:00 GMT

Gift cards and vouchers now have three year expiry

Gift vouchers can be a great way to attract customers, maximise marketing campaigns and increase sales - so long as you don't get caught out by the new rules.

Does your business offer gift cards or vouchers? If so, new laws came into effect on 1 November 2019, which you will need to adopt. Gift cards and vouchers issued on or after 1 November 2019 must meet the new requirements of the Australian Consumer Law (ACL).

New Gift Card Laws

There are some situations in which the new requirements don't apply, for example if the card can be topped up if it is part of a temporary marketing promotion or if it is donated free of charge for promotions. Visit ACL new Gift Card Laws webpage for full details.

If you have not met the new requirements on vouchers since 1 November, the new laws will still apply even if the actual voucher does not. Customers will be able to redeem the voucher within the three-year expiry regardless of what is stated on the voucher. Gift cards and vouchers issued before 1 November 2019 have the same expiry period and conditions of purchase as at the time of purchase.

What Next?

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Talk to us about how the changes affect your business operations and cashflow.

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New rules for salary sacrificing super

Sat, 01 Jan 2022 11:53:00 GMT

New rules for salary sacrificing super

Salary sacrificing to super allows an employee to forego part of their salary or wages and have the employer contribute this amount to their superannuation fund instead of paying it as cash. It reduces the taxable value of salary or wages, and is therefore beneficial to the employee in both reducing tax payable and increasing superannuation.

Up until now, employers were allowed to calculate superannuation guarantee contributions (SGC) on the reduced amount of salary or wages.

What's changed?

1. From 1 January 2020, SGC must be calculated on the gross amount of salary or wages, before any salary sacrifice amount in deducted.

This means employers will have a higher superannuation contribution to make for any employees who previously had their super guarantee amounts reduced because of sacrificing part of their salary to super.

Example: an employee is paid $100,000 per annum exclusive of SGC and sacrifices $20,000 to super. The employer currently pays SGC on the reduced salary of $80,000, being $7,600. From 1 January 2020, the employer must pay SGC on the gross salary of $100,000, which will be $9,500, an increase of $1,900 per year.

2. The other big change with this rule is that salary sacrifice contributions will no longer contribute to the compulsory employer superannuation guarantee contributions. In some cases, employers were able to avoid paying any SGC, because the employee salary sacrificed an amount at least equal to the compulsory amount of employer contribution.

Because sacrificed amounts will no longer be counted towards employer contributions, if an employer has not fulfilled their super guarantee obligation and is required to lodge a super guarantee charge statement, the amount of super owing, (and any charges and penalties), will be calculated exclusive of any salary sacrifice amounts paid.

Example : an employee is paid $120,000 per annum exclusive of SGC and sacrifices $15,000 to super. The compulsory employer amount of 9.5% on $120,000 is $11,400. As the employer sacrifices more than this to super, the employer currently would have made no further contributions. Under the new rules, the employer must pay SGC on the gross salary, in addition to any salary sacrifice the employee makes. This means an increase of $11,400 per year.

Revise employee agreements and remuneration packages now

We recommend that employers review all employee arrangements that include salary sacrifice to superannuation.

Employment agreements and remuneration packages may need to be revised to comply with the new rules so that it is clear that superannuation guarantee is calculated on the gross salary or wage before any amounts sacrificed.

We can assist with reviewing remuneration packages for your employees so you are not caught out by the new rules.

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Planning for seasonal dips in income

Sat, 01 Jan 2022 11:53:00 GMT

Planning for seasonal dips in income

Seasonal dips in income can be highly challenging when you are a small business. But there are proactive ways to predict, plan for and overcome these dips in revenue.

The key to dealing with seasonal dips is to know when they are most likely to occur, and to have measures in place to spread your income and revenue pipeline over the course of the year.

Understanding seasonality in your sector

If you business is seasonal such as pool supplies, or a ski gear specialist, you will be used to the peaks and troughs, but many 'non-seasonal' businesses experience times during the financial year where sales and revenue peak - and, on the flipside, where sales and revenue experience a pronounced dip.

When income is low at certain times of the year, it makes for challenging times.

So, what are the key ways to plan for this kind of seasonality?

If your business is struggling with seasonal dips, and the resulting impact on cashflow, come and talk to us. We can help you identify the timing of your seasonal downtime, and come up with a clear strategy for stabilising your income across the year.

Get in touch to start beating those seasonal dips.

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Fundamental one to successfully scale up your business

Sat, 01 Jan 2022 11:53:00 GMT

Fundamental one to successfully scale up your business

Growth brings increased opportunity, but at the same time, increase risk. Poorly managed risk can cause failure, even if the business growing?

So, how do we plan for success in a fast-growing business?

There are three fundamentals to successfully scale up your business: having a clear organisation structure, having comprehensive systems and processes - both of which must be clearly documented - and finally, developing great leadership skills.

Fundamental one: your organisation structure

"Incredible things in the business world are never made by a single person, but by a team." - Steve jobs.

We can help you define your Organisation Structure.