Haslam News

Counting Down to EOFY

Sat, 11 Apr 2026 02:46:57 GMT

The end of the financial year is fast approaching on 30 June. To get the best tax outcome for your business, you should look at a few things now.

The end of the financial year is fast approaching on 30 June. To get the best tax outcome for your business, you should look at a few things now:

Instant Asset Write-Off: If you’re planning to purchase equipment, ensure it is "first used or installed ready for use" by 30 June to claim it this year.

Super Contributions: Consider making personal super contributions before 30 June to reduce your taxable income.

Stocktake: Plan your end-of-year stocktake for the close of business on 30 June.

Book an EOFY Review with us to see which strategies will work best for you.

5 ways logistics companies can cope with rising fuel prices

Sat, 11 Apr 2026 02:45:15 GMT

With fuel prices rising fast, it’s important for your logistics business to think about the impact of these skyrocketing prices on fuel costs and profit margins.

If you’re running a logistics company, small delivery business, or a company fleet of trucks, the rising costs of fuel will no doubt be a major concern.

Prices of oil have been rising since the conflict in the Middle East escalated in February 2026, with the current price of crude oil reaching record levels. With fuel prices still rising, you’ll see your profit margins slide as the cost of running your vehicles becomes ever-more expensive.

Fuel prices are not something you can directly influence. But there are ways for you to mitigate the impact of these skyrocketing petrol and diesel prices.

Five tactics and strategies for mitigating the impact of rising fuel prices

1. Consider introducing fuel surcharge clauses

You can protect your own cashflow by adding index-linked fuel surcharge clauses to your contracts with customers. This allows you to pass fluctuating costs on to your customers when prices exceed a specific, pre-defined baseline figure.

2. Optimise your route-planning with AI

Think about moving from manual planning to using AI route-planning software that calculates the most fuel-efficient paths in real-time. This reduces wasted miles and avoids idling in traffic, helping you to cut your fuel consumption across frequently used routes.

3. Consolidate loads to reduce the fuel costs

You can maximise the efficiency of deliveries by grouping smaller shipments into less-than-truckload (LTL) deliveries. You can also use digital freight exchanges to find backhaul loads for return journeys, so your trucks never burn fuel while travelling empty.

4. Enforce strict ‘eco-driving’ policies for drivers

Use telematics and in-vehicle tech to monitor and coach your drivers against heavy acceleration, speeding and excessive idling. Reducing speeds on highways and motorways can improve a vehicle's fuel economy significantly, reducing the cost of each journey.

5. Transition to electric vehicles (EVs)

This is more of a long-term strategy, but switching your fleet over to EVs may be a sound move.

Replacing your internal combustion engine (ICE) vehicles with electric alternatives removes your reliance on volatile oil markets. EVs offer significantly lower ‘fuel’ costs per kilometre/mile and the long-term maintenance requirements can also be lower than for ICE vehicles.

Helping track and reduce your fuel costs

As a logistics business, effective management of your fuel costs is key to keeping your profit margins in check. If you’re concerned about the impact of rising fuel costs, book some time with our team. We’ll help you put tactics in place to keep fuel usage down and profits up.

Taking steps to stay compliant with ATO rules

Sat, 11 Apr 2026 02:44:25 GMT

The ATO is cracking down on compliance. Here are five ways your small business can remain compliant and stay in the ATO’s good books.

“Every year we see small businesses run into avoidable issues because they haven’t kept accurate records, reported all their income or managed their cashflow effectively”

Angela Allen, ATO Assistant Commissioner

The Australian Taxation Office (ATO) is encouraging Aussie small businesses to stay compliant. By doing so, you avoid the problems, penalties and fines that can occur when your business fails to follow the rules and compliance duties set out by the ATO.

What can you do to improve your overall tax compliance position?

Here are 5 key ways you can ensure your business stays in the ATO’s good books.

1. Stay on top of your ATO debts

The ATO wants you to proactively manage your tax debts. If you can engage early with the ATO, whether that’s to set up a payment plan or even make a prepayment, this makes the debt easier to manage and removes the need for stronger enforcement.

2. Separate accounts for separate obligations

Make sure you have dedicated bank accounts for GST and PAYG withholding. This protects your essential cashflow and stops cash from being used for operational expenses, so you always have funds available for BAS lodgements and other contributions.

3. Good records, good business

Keeping accurate records is a legal requirement for a small business. The ATO is keen for businesses to transition from manual ‘shoebox’ methods to digital systems and ATO online services. This minimises errors and helps you provide all your tax information in a digital format.

4. Prepare for Payday Super

Starting 1 July 2026, Payday Super will come into force, making it mandatory for employers to pay Superannuation Guarantee contributions on each payday. Review your payroll systems now to make sure they can manage more frequent reporting and payment requirements.

5. Closing or winding down a business

If you’re closing down your business and exiting the market, you must meet your final obligations, including cancelling ABNs and lodging your final tax returns. This prevents future compliance issues and ensures all employee entitlements are settled.

ATO Advice

The ATO advises businesses to work with registered tax practitioners. Working with a qualified tax adviser from the Tax Practitioners Board keeps you in line with all current tax laws.

Talk to our tax team and let’s make sure you’re 100% compliant with ATO rules.

How going green can be good for business

Sat, 11 Apr 2026 02:43:00 GMT

While there’s no easy solution to fix climate change, and certainly no magic formula that would reduce its effects overnight, there are still plenty of ways that businesses can help the environment, while also benefitting their bottom line.

It’s no secret that climate change is here. Year on year, heat records are being broken, alongside more extreme weather events.

Below are five ways that a business may profit from more environmentally friendly working practices.

1. Cost savings

It’s common knowledge that implementing energy-saving measures can reduce costs for your business. Changing to energy-efficient LED lighting, for example, as well as focusing on reducing water usage, can do wonders for utility bills. Similarly, a focus on recycling and reducing waste around the office can help save money on waste removal services.

2. Stand out from competitors

In addition to helping reduce costs internally, going green can really boost a business’ reputation in the wider community. Increasingly, consumers are looking for more sustainable, eco-friendly products, with many even willing to pay a premium for such products.

For example, PwC’s Consumer Survey found that more than 80% of consumers said they were willing to pay more for sustainable produced or sourced goods, with some willing to pay on average 9.7% more for goods that met specific environmental criteria, including locally-sourced, made from recycled or eco-friendly materials, produced in a supply chain with a lower carbon footprint, etc.

While consumers’ preferences for eco-friendlier products will not necessarily guarantee an increase in revenue streams (given the current cost-of-living crunch), a green business is still likely to stand out to consumers, especially if your competitors have neglected their own green credentials.

3. Attract talent

By appealing to employees who value sustainable practices, going green can also give your business a great platform to both attract and retain top talent in your industry. A green agenda can also be appealing to new and established employees where it complements the wider company culture, while helping to foster a more positive work environment between employees who share similar values.

4. Keep up with regulations

As many countries move towards net zero, more regulations are being introduced to help manage businesses’ environmental impact. Green businesses are much more likely to stay ahead of this regulatory curve, while also demonstrating to consumers, staff, and wider stakeholders their commitment to sustainability.

5. Access financial support

While there are plenty of benefits associated with going green, it is not without cost. Adopting sustainable practices will likely involve some form of upfront investment, whether that’s adjusting your supply chain, upgrading to more energy-efficient equipment, or introducing electric vehicles to your car fleet.

If cost is what’s holding your business back, there may be grants or other financial incentives on offer to help in the transition to a more sustainable business. Check what’s available locally – the results might surprise you!

Need a hand identifying cost savings?

If you’d like to make steps towards becoming a more sustainable business, come and have a chat with us .

We can help identify potential areas for cost savings, including whether you may be eligible for any financial assistance.

Prepare for Payday Super: Key Readiness Steps for Employers

Sat, 11 Apr 2026 02:30:25 GMT

From 1 July 2026 Payday Super will be mandatory. Instead of quarterly super payments to employees’ funds, contributions will need to be paid at almost the same time as salary and wages. Read on for full details on what's required and what is changing.

From 1 July 2026, the way you pay your employees’ super is changing. Instead of making quarterly super payments to your employees’ funds, contributions will essentially need to be paid at the same time as salary and wages.

‘Payday Super’ marks a significant change for employers. To make sure your business isn’t caught out, make sure you’ve taken the following readiness steps, in line with ATO guidance .

Understand the new requirements

Under the new regime, super guarantee payments must reach your employees’ super funds within seven business days of payday, though longer deadlines apply in some cases, such as for new employees. The amount of contribution is calculated as 12% of an employee’s ‘qualifying earnings’ – a new term that incorporates and expands on the previous concept of ordinary time earnings.

If contributions are not made on time, in full and to the correct fund, the super guarantee charge (SGC) may apply.

Plan your transition

The ATO recommends that employers do the work now to plan and prepare for Payday Super. This includes:

Deciding when, exactly, your business will move to Payday Super (noting early adoption is perfectly fine).
Reviewing your cash flow position, to make sure your business can cope with a shift away from quarterly to ‘real-time’ super payments.
Checking your current payroll and business processes, such as confirming that super fund details for all eligible employees are up-to-date and complete.

Lock in plans

Once your business has determined when it will start using Payday Super, the next step is to make sure all relevant systems are ready for the change. That includes the payroll software you use, as well as any clearing houses or super fund portals you may use to make super guarantee contributions.

For any businesses that use the Small Business Superannuation Clearing House (SBSCH), remember that it will close permanently from 1 July 2026 as part of the Payday Super reforms.

Finally, take the time to troubleshoot any potential issues that might arise once Payday Super is live. For example, your business may need to implement a process quickly to correct any errors that might arise when paying employees’ super contributions.

Remember, from 1 July 2026…

…Payday Super is mandatory.

Any businesses that do not adapt to the new rules and continue to pay super quarterly run the risk of being on the receiving end of compliance action by the ATO.

If your business needs help preparing for Payday Super, feel free to reach out to a member of our team. We can walk you through the requirements of the new legislation and troubleshoot any potential pitfalls well ahead of 1 July.

Cash flow forecasting puts you back in control

Sat, 11 Apr 2026 02:28:09 GMT

Being in control of your cashflow has never been more important. We’ll help you set up detailed cashflow forecasting to put you back in the cashflow driving seat.

We all know that positive cashflow is the beating heart of any successful business. And with so many external pressures on your cash right now, it’s important to have one eye on the future.

Cashflow forecasting is an increasingly important tool for any finance team. With a better view of your future cashflow position, you can make well-informed decisions about your finances.

But how does cashflow forecasting work? And how does it help you maintain a positive cashflow position throughout the year?

What does a cashflow forecast tell you?

The cashflow process is all about balancing your income (cash inflows) against your expenditure (cash outflows). If your cash inflows are greater than your cash outflows, this is called a ‘positive cashflow position’. In other words, you have cash left over, even once you’ve covered your costs and paid your bills – cash that can then be reinvested in the business.

Forecasting apps, like Float, Fathom and Futrli, use historic cash data to project your cash position forward in time. This helps you see where your cash may be in future periods.

Running detailed cashflow forecasts means you can:

Understand your future operational cashflow – helping you spot any cashflow holes, seasonal dips or predicted months of high expenditure before they become an issue.
Plan your costs and expenditure effectively – allowing you to stick to your planned budgets, manage your costs and plan for any steep price increases.
Avoid the cashflow issues before they happen – using your forecasts to look ahead, plan and get tighter control over your cashflow management.

Talk to us about setting up cash flow forecasts

Staying in a positive cashflow position is a challenge in the current economic situation.

When supplier prices and operational costs are fluctuating and revenues are hard to predict, it is difficult to juggle your inflows against your outflows.

We’ll help you get a tighter grip on your cashflow. Setting up detailed forecasts helps you understand your financial story and puts you back in full control of your cashflow.

Get in touch . We are here to help.

Setting goals for you and your business for the new financial year

Sat, 11 Apr 2026 02:26:59 GMT

If you are reflecting on where you are at and thinking about your business goals for the financial year ahead, we can help you establish measurable goals for your business.

The new financial year is a new beginning. As a business owner this a great time for you to reflect on where you are at and think about your business goals for the financial 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 goa l: 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 : Celebrating 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. Come and see us !

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.

5 things your balance sheet can tell you about your finances

Wed, 25 Feb 2026 03:57:34 GMT

Your balance sheet is a key financial statement to understand. So we’ve highlighted five ways your balance sheet can keep you informed about your financial health.

Chances are you’ve heard of the accounting term ‘balance sheet’. But what is a balance sheet? And what does it tell you about your finances?

Your balance sheet is a financial statement that provides a snapshot of your company’s financial position at a specific point in time. It’s an overview of your finances that details three key elements of your accounting.

The formula for the balance sheet is Assets = Liabilities + Equity :

Assets: These are resources your business owns – things like cash, inventory or equipment – that provide future economic value and help generate your revenue.

Liabilities: These represent the company’s financial obligations or debts owed to outside parties – think bank loans, taxes or unpaid invoices.

Equity: This is the remaining interest in the assets after deducting liabilities. Equity represents the net worth of the business or, as the owner, your residual interest in assets after deducting all liabilities.

Ways the balance sheet informs your view of your finances

Liquidity and short-term solvency

By comparing your current assets to your current liabilities, you can use the balance sheet to reveal if the business can meet its immediate obligations. This is vital for ensuring you have enough cash or liquid assets to remain operational and trading.

Capital structure and leverage

The ratio of total debt to shareholders' equity illustrates how your company finances its growth. Are you relying too heavily on borrowed money? Or are you maintaining a sustainable level of debt that helps you fund the next stages in your growth?

Efficiency of your asset management

By reviewing your total assets against revenue trends, you can find out how effectively the company is utilising its resources – things like inventory and equipment – to support your business operations and generate long-term value for your stakeholders.

Working capital position

Calculating the difference between your current assets and liabilities helps you spot the operational capital buffer that’s available. This indicates whether the business can comfortably fund its day-to-day activities or if it faces a looming cash deficit.

Net worth and book value

The equity section of the balance sheet reflects the total value remaining for you, as the owner, after all debts are paid. This gives you a clear idea of the company’s intrinsic value and the overall cumulative financial success of the business.

Want to dig deeper in your balance sheet and financials?

If you’d like to understand more about your balance sheet and accounts, book some time with our team . We’ll be happy to explain more about your financial health as a business

Interest rates go up: how could this affect your finances?

Wed, 25 Feb 2026 03:43:40 GMT

The Reserve Bank of Australia has increased interest rates from 3.6% up to 3.85%. What does this boost in interest rates mean for you, your business and your financial opportunities?

On 3 February 2026, the Reserve Bank of Australia announced an increase in the cash target rate. This announcement takes the cash rate from 3.6% up to 3.85%.

With inflation on the rise, greater capacity pressure and the labour market position looking tight, the RBA felt that action was needed to nip these economic trends in the bud.

This rise in interest rates can be both positive and negative for your small business, so it’s worth understanding the effect that interest rate changes can have.

How an increase in interest rates may affect your business finances:

Increased cost of borrowing

Higher interest rates on loans: An increase in the cash rate translates into higher monthly interest payments on your existing variable-rate business loans. It also means less favourable terms on any new lines of credit or equipment financing.

Tighter access to credit: As borrowing costs rise, lenders often tighten their criteria. You may find it more difficult to secure financing for expansion as banks become more cautious about your ability to service debt at higher rates.

Strained cashflow

Increased debt servicing: Higher interest payments eat into your monthly margins. This reduces the amount of free cashflow you have available to reinvest in marketing, maintenance or staff bonuses, etc.

Decreased consumer spending: As the RBA raises rates to combat inflation, households often cut down on their spending to cover their own rising mortgage payments. This can lead to a cooling of demand for your goods and services.

Shift in investment strategy

Higher cost of capital: With more expensive borrowing, the overall costs of new projects may increase. Justifying the expense of these projects becomes harder, so you may need to delay R&D investment or pause upgrades to tech and machinery.

Reduced investor appetite: Higher interest rates can make high-risk business investments less attractive than lower-risk assets, like government bonds. This makes it more challenging to raise capital through equity financing or find new private investors.

Economic cooling

Slowing the economy: The aim of the cash target increase is to dampen economic activity to control inflation. For a small business, this creates a more challenging environment characterised by cautious consumer behavior and higher operating costs.

Focus on efficiency: In a high-rate environment, the focus shifts from ‘growth at all costs’ to ‘resilience and efficiency’. In a tighter economy, being disciplined with your financial management is a vital way to weather the storm.

Economic times are challenging at present, so a jump in interest rates was probably not the news that many Aussie small businesses were hoping for to kick off 2026.

If you’re worried about managing loan payments or accessing the funding you need to action your 2026 plans, come and talk to our team .

Payday Super: Get Ready Now

Wed, 25 Feb 2026 03:30:09 GMT

What Employers Need to Know Before 1 July 2026

The Australian Government has announced a major reform to the Super Guarantee system known as Payday Super .

From 1 July 2026 , employers must pay super at the same time as wages — on every payday.

This replaces the current quarterly contribution system.

The ATO’s official summary can be found here .

What Is Changing?

Under Payday Super:

Super Guarantee remains 12% , but will be calculated on Qualifying Earnings (QE) — a broader definition than ordinary time earnings.
Super must be paid on payday .
Contributions must be received by the fund within 7 business days .
Late payments will attract a redesigned Super Guarantee Charge (SGC) including daily compounding interest.
Employers must report both QE and super liability through Single Touch Payroll (STP).
The ATO Small Business Super Clearing House (SBSCH) will close permanently on 30 June 2026.

Why This Matters

This reform shifts super from a quarterly compliance task to a live payroll obligation.

Employers will need:

Payroll systems capable of automated super processing
Improved employee data accuracy
Stronger cashflow planning
Faster error resolution processes

The End of the ATO Clearing House

The Small Business Superannuation Clearing House:

Closed to new users from 1 October 2025
Shuts permanently on 30 June 2026

Employers must transition to payroll-integrated super payment solutions.

How Haslam Consulting & Accounting Is Supporting Clients

Due to the real-time nature of Payday Super:

We will not be processing super payments on behalf of employers from 1 July 2026.
Employers will need to process super through their payroll system each pay cycle.
We will continue to provide advisory, system setup assistance, and compliance reviews.

This change makes payroll software configuration more important than ever.

What Employers Should Do Now

Review payroll software capability
Confirm SuperStream compliance
Test payday super processing
Plan for increased payment frequency
Ensure employee super details are correct

What are trade tariffs and how can they affect your business?

Fri, 06 Feb 2026 03:34:50 GMT

We’ve heard a lot about trade tariffs in the news. But what is a trade tariff and how could these customs taxes impact your small business?

Over the past few months, we’ve heard a lot in the news about the possibility of trade tariffs, especially in relation to the tariffs imposed by the current US administration.

But what exactly is a trade tariff? What do they do? And how could high trade tariffs affect your ability to export to certain countries and territories?

What is a trade tariff?

A trade tariff is a tax that’s levied on imported goods when they pass through a country’s customs border. This mandatory tax is paid at the border, with the amount you pay determined by global classification codes for specific products and goods.

Paying the tariff increases the cost of exporting goods to this territory. Imposing the tariff discourages foreign enterprises from importing goods into the country and supports domestic businesses in making and selling the same goods locally.

What’s the impact when trade tariffs are imposed?

Imposing trade tariffs can have several significant impacts for foreign entities and businesses that trade internationally:

Reduced export demand: Foreign countries and overseas businesses can experience a sharp drop in their market share as their goods become artificially expensive due to the trade tariffs. This forces businesses to reduce their exports to this country and consider other, more profitable, territories.

Increased costs : Importers bear the direct financial burden at the border, facing higher ‘landed costs’ and administrative complexities. This can significantly reduce the importer’s profit margins and efficiency of their supply chain.

Retaliatory trade cycles: Tariffs often trigger tit-for-tat responses from foreign governments. This creates a cycle of trade barriers that leads to the market becoming more volatile and operational costs becoming less predictable – creating uncertainty for all parties involved.

How could high trade tariffs affect your business?

Economically, trade tariffs increase your cost of goods sold (COGS), by adding a tax cost whenever you export your goods into this particular territory.

With US trade tariffs being off and on it pays to scenario-plan all potential outcomes, so you’re fully prepared for the potential impact.

5 steps for getting the best from your digital tools

Fri, 06 Feb 2026 03:18:47 GMT

Do you know where to start when updating your systems to modern, digital tools? We share five steps for getting the best from your new digital tools.

Making your organisation more efficient, productive and automated is central to running an effective small business in the digital age.

But with so many digital tools and software solutions out there, setting up new systems can be a daunting prospect. Which tools should you use? How do you set them up? What training will your employees need to get up and running? All these questions are likely to be on your mind.

Thankfully, the Australian Government has a helpful page dedicated to explaining how to use digital tools and software to drive your small business strategy.

Let’s take a look at the practical steps for getting the best from your digital tools.

Set your business goals

Any new tech that you add to your existing systems needs to be there to support a pre-agreed goal within your business strategy. If your aim is to reduce your staffing levels and cut wage costs, apps that can automate some of your more labour-intensive tasks are a must.

Write your digital strategy

It’s important to write your digital strategy down, so you have an evolving document that lists your digital goals and how they support your wider strategy. This can include creating a broad outline of your ‘app stack’ and how it will deliver on these goals.

Compare the value of digital tools before buying

For each solution and app on the market, there are probably several competitors, all vying to be ‘top dog’ in this specific niche market. Make sure you do your research and try out demos of several apps and solutions before making your final decision.

Know how to keep your business safe from cyber threats

As your business systems become more digital, the amount of customer data and sensitive business information you’re holding in the cloud will increase. Having high levels of cybersecurity in place is a must, with data encrypted and protected from hackers, etc.

Tell staff and manage the change

Employees tend to get attached to legacy systems, so it’s vital to give prior warning of any changes to your software tools and to explain the strategic thinking behind the upgrade. You should also involve your team in the research and testing process, and provide in-depth training so everyone can get up and running as quickly as possible.

If you’re drowning in app and software options and need help to outline your digital strategy, don’t worry. Get in touch ! Our team can work with you to understand your business strategy and digital goals, giving you the support you need to build the ideal app stack for the job.

Getting late payments under control

Fri, 06 Feb 2026 02:56:30 GMT

63% of Australian businesses say they are losing money to late payments. Here’s what you can do to get your late payment issues under control.

“63% of Australian businesses say they are losing money – some even reporting estimated losses of over $10,000 per month on average – to late payments.” Pursuing Payments 2025 report, GoCardless

This recent report from the bank payment provider, GoCardless, shows just how challenging late payments can be for Australian small businesses.

“68% of all respondents now agree that late payments are simply an ‘inevitable cost’ of doing business.”

“This represents a fundamental shift in mindset since 2023, with around half of Australian (48%) businesses in 2025 reporting they are waiting longer for payments than 12 months ago.”

What can your business do to combat late payments?

When customers fail to pay on time, that’s not just an issue for your aged debtor report.

Slow payment has a knock-on effect on your cashflow, which in turn can affect the working capital you have available in the business. Taking steps to speed up late payments is vital.

Here are some fundamental ways to improve payments times:

Implement eInvoicing: Switch to eInvoicing and send bills directly to your customers’ accounting software. This reduces manual errors and speeds up approvals.

Offer multiple payment methods: Offer the most convenient ways for customers. This may include having credit cards, BPAY and digital wallets as payment methods.

Automate payment reminders: Use your accounting software to automatically send polite emails or SMS reminders to customers, both before and after the invoice due date.

Monitor your aged debtors weekly: Regularly review your aged receivables report to spot any overdue accounts early and make follow-up calls to chase for payment.

Ask for deposits upfront: For larger projects, secure a percentage of the total fee before work begins. This helps you cover costs and ensures you’re not out of pocket.

Need a hand resolving your late payments issues?

If late payments are damaging your cashflow position, come and have a chat with us .

Our team can help you come up with a workable strategy for reducing late payment and getting your cash position back on track.

Why flexible working is the new normal

Fri, 06 Feb 2026 02:05:17 GMT

54% of employees prefer a combination of in-office and remote work. So, are you making moves to switch to flexible working? We explain why hybrid working is the way forward.

"Gone are the days when flexible work was a perk. Whether it’s hybrid roles, remote options, or custom hours, flexibility has become a baseline expectation." - Recruitment Trends for SMEs by Onside.

The pandemic may have introduced us to the idea of working from home, but the ability to flex where we work from is now a core expectation for many employees.

Why should your business embrace flexible working?

According to a recent survey by Robert Walters, 54% of employees prefer a combination of in-office and remote work.

We’ve learned about the efficiency benefits of working from home, making the most of the reduced travel time and the ability to work non-conventional office hours to get the job done.

But we’ve also come to realise the advantages of spending time with our team in the office, and how this can build team spirit, aid collaboration and get us working as a unit again.

The ideal scenario is hybrid working, where time is split between mandated office days and the flexibility to work from home when that makes employees’ lives easier.

How to embrace flexible, hybrid working

Flexible working will be different from company to company and sector to sector. But there are some key ways you can embrace hybrid working in your business:

Have a clear hybrid policy: Define which roles are eligible for hybrid work and set core collaboration days so you can work on team connections at the office.

Invest in cloud tech and online ways of working: Make sure your remote employees have the necessary tools and technology to work from home.

Put your focus on output, not presence: Employee performance should be based on what each employee delivers and achieves, rather than hours spent in the office.

Get in touch today to discuss how this could help your business.

Automation can ease your business workload

Fri, 06 Feb 2026 01:44:55 GMT

Are you drowning in business admin? Automation is the answer. We’ll help you identify automation opportunities and choose the best apps to drive an efficient business.

The average business owner needs an additional four hours in their working day to complete their admin, according to research by OnePoll.

If your people are spending 20 hours per week wading through tedious and unproductive admin, that’s bad for the business and for your efficiency. Fortunately, technology and software automation can go a long way towards automating these 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:

Automated bookkeeping – Simply take a photo of your receipts, expenses and invoices and ‘optical character recognition’ (OCR) technology will digitise the output and pull it through to your accounts software. No data entry, no human error and no lost receipts! We can do the rest to ensure your records are accurate.
Automated credit control – chasing up debts and late-paying customers takes time. Automated credit control apps track your debtor numbers and automatically sends out customised chaser emails as soon as an invoice is late. This reduces your credit control time, speeds up cash collection and cuts your aged debtor figure.
Automated payment collection – the easier it is to pay you, the faster your customers will pay. Automated card payments and cloud-based Direct Debit solutions allow you to automatically take payment from a customer as soon as an invoice is due. Some solutions will even automate the invoice matching and bank reconciliation process.
Automated reporting and forecasting – the better your reporting and business intelligence, the easier it is to make informed decisions about your company strategy. Accounting platforms and fintech tools now offer automatic, real-time reporting and forecasting, giving you access to the important numbers and metrics, fast.
Automated digital marketing – digital marketing is key to raising your brand’s profile. Marketing platforms offer important time-saving ways to create, schedule and post social media content, or email automations to send a pre-programmed cadence of emails to specific target audiences within your wider customer base.

Talk to us about embracing the power of automation

If your admin is holding 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.

How an accountant supports your business: 5 key areas of focus

Fri, 05 Dec 2025 05:19:41 GMT

A good accountant talks to you regularly throughout the year. Here are five key ways we can support your financial management and the performance of your business.

Your accountant just does your annual accounts and tax return, right? Wrong!

A good accountant is in touch with you and your business throughout the financial year, checking in, finding out where they can help and offering solid, practical advice.

Here are five areas of your financial management where talking regularly to your accountant is a must – and where we, as a firm, can make a real difference.

1. Cashflow, budgeting, and spend management

Cash is king, so keeping on top of your cashflow is a must.

We can produce cashflow forecasts to predict future shortages, giving you time to take action and avoid those cashflow gaps. We can suggest realistic operational budgets, look for overspending and suggest key ways to keep you in a positive cashflow position.

2. Revenue generation and sales strategy

Steady, reliable revenue is what drives the financial performance of your business.

We can review your key sales metrics, like customer acquisition cost (CAC) and lifetime value (LTV), to look for opportunities to generate improved revenue. This could mean optimising your pricing, new sales strategies or focusing on the most profitable product/service lines.

3. Financial reporting and performance

Having up-to-date, in-depth financial reporting keeps you in control of your finances.

We can produce regular profit and loss (P&L) and balance sheet reports to help you track your performance over time. We can also set up real-time dashboards in your cloud accounting, giving you the key metrics needed to monitor that performance on an everyday basis.

4. Profitability and investing in growth

To evolve, expand and grow, it helps to be profitable as a business.

We can supply a detailed margin analysis, evaluating your offering to pinpoint the key areas of high and low profitability.

We’ll also model the return on investment (ROI) you could get from for capital expenditures, helping you make smart, sustainable investments to drive growth.

5. Being a sounding board for your plans

Running a business can be overwhelming and sometime lonely, you can get concerned if you're focusing on what really counts especially for achieving your financial goals. Having an experienced and friendly advisor can make all the difference when you're weighing up your future plans.

Come and talk to our team about ways we can support your financial management, revenue goals and overall financial performance as a business.

Promoting your business in the digital age

Fri, 05 Dec 2025 05:19:41 GMT

Is your digital marketing strategy still fit for purpose? We outline four key elements your business should be using to advertise your brand and engage with new customers.

As a small business, you know you need an online presence as a brand. You have a company website and you post occasionally on your blog page.

But at this point in the digital transformation of business, that’s not enough for customers to find you, engage with you and become long-standing customers of the business. To promote your business effectively, you need to embrace both the digital revolution and the benefits of automation and artificial intelligence (AI).

Four key digital channels that should be on your agenda

1. Social Media:

Social media channels, like TikTok, Instagram, X and Threads, are more than just a ‘nice to have’. These platforms are an essential way to build a recognisable brand community and create some real customer loyalty. It’s important to produce regular content that’s consistent, engaging and tells your followers exactly what kind of business you are.

2. Search Engine Optimisation (SEO):

Healthy search engine optimisation (SEO) ensures you have long-term, trusted organic visibility of your business when potential customers search online. The idea is to position your digital brand as an authority in the marketplace. This means controlling the health of your website and producing quality content that secures high rankings and attracts passive buyers to your site.

3. Generative Engine Optimisation (GEO):

In the age of AI, mastering generative engine optimisation (GEO) is just as important as having good SEO. GEO is critical for surfacing your content and brand in AI-driven summaries, chatbot results and voice search results. Authoritative content, structured data and concise, factual answers allow your brand to become a trusted source of truth in generative AI searches.

4. Programmatic Advertising:

Programmatic advertising gives you the tools to automate the purchase of ad space across thousands of sites and apps. It uses real-time bidding and data to match adverts, online ad space and target audiences. Get it right, and you can ensure your ads reach the perfect customer at the best time to convert them into paying customers.

Time for an update?

When was the last time you updated your digital marketing strategy? If you’ve not changed your strategy in the past 12 months, then a review is well overdue!

Come and talk to us about your digital marketing strategy. We can put you in touch with local agencies and consultants. Or find out more about current marketing trends in this guide from the Digital Marketing Institute .

The basics of strategic advice: why your business needs an evolving strategy

Fri, 05 Dec 2025 05:19:41 GMT

When did you last review your business strategy? We share four areas you should revisit and update to create the best possible strategic and growth outcomes.

Are you spending enough time working on your business strategy?

Past research from The Alternative Board found the average entrepreneur spends 68.1% of their time working ‘in’ their business (tackling day-to-day tasks, putting out fires, etc.) and only 31.9% of the time working ‘on’ their business (e.g., long-term goals, strategic planning).

Revisiting and updating your business strategy is vital for a growing business – and that means making more time to focus on strategic thinking.

Key things to revisit in your current business strategy

Test your financial scenarios, cashflow and budgeting:

Stress-test your cashflow by creating worst-case scenarios and adjusting your operating budgets to reflect the current rising costs for raw materials or labour. Look for any non-essential spending and set clear targets for preserving your cash levels and working capital.

Revisit your customer value proposition

Re-evaluate your customer value proposition (CVP) to confirm it still meets the changing needs of your market and target audience. This might mean simplifying your product offerings, adding a high-value service tier or putting money into deeper customer research and development.

Diversify your product/service offerings

Diversify your products and services to help you engage with new or underserved customer segments. Reducing your dependence on a single revenue stream stops you ‘having all your eggs in one basket’ and helps you reduce the overall risk to the business.

Match talent and resources to your growth strategy

Review your team structure to make sure your key talent is focused on growth and high-return activities.

Putting money into targeted up-skilling and training can improve your overall capabilities, while outsourcing to fill any critical gaps will help you capture new opportunities.

If you’ve not revisited your business strategy in a while, now’s the time to get proactive. Talk to our team and we’ll work with you to review, revise and rework your strategy.

Key numbers to focus on in your business now

Fri, 05 Dec 2025 05:19:34 GMT

What are the key reports to focus on in your business? We'll show you how to track performance, take action and position your company for growth.

As a business owner, it’s never been more important to have a good grasp on your finances.

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).

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.

Holiday cash flow for your small business

Fri, 05 Dec 2025 05:19:32 GMT

This time of year can be hard on small businesses. With a bit of pre-planning and being proactive, you can set yourself up for a financially stress-free holiday.

Are you heading away for a break from the business this year?

This time of year can be hard on small business. Your expenses continue and your cashflow can suffer when your debtors go on holiday.

Leading up to the holiday period, is your business cash flow in good health to carry you through? With a bit of pre-planning and being proactive, you can set yourself up for a financially stress-free holiday.

P lanning your cash-flow over the holiday period

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 your costs - Make sure you have a clear picture of your payroll, and any other planned expenses that will need to be accounted for. 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 navigate the holiday period and help you alleviate cashflow worries. So you get a well deserved break.

When you’re planning for a break, book an appointmen t with us.

Happy Holidays!

Fri, 05 Dec 2025 03:06:09 GMT

Happy Holidays to our valued clients. We are wishing you health, happiness, and new beginnings for your year ahead, also that 2026 brings you everything you wish.

We wish you a very happy Holiday and well deserved end-of-year break.

We are grateful for the opportunity to work with you and be a part of your business journey.

It has been another year of hard work for our clients. We hope you will be able to take some time over the Holidays to connect with family and friends to recharge and relax.

Our office will be closing at 5pm on Tuesday 23rd December and reopening 9am on Monday 5th January .

From your partners at Haslam Consulting & Accounting

The benefits of having a diverse workforce

Tue, 11 Nov 2025 23:30:18 GMT

Having a diverse and inclusive workforce can be a major boost for your business. We list four of the key benefits of focusing on diversity and inclusion within your company culture - plus how to diversify your workforce.

Having a diverse and inclusive workforce isn’t just about displaying the best values as a business – it also makes good business sense for your company to be diverse.

Let’s look at the positive benefits of having a diverse team, and the action you can take as a business to bring a real mix of talent into the company.

What does diversity and inclusivity mean?

Let’s start by defining diversity and inclusivity.

Diversity is about having a wide range of people, races and human differences represented within your team.

Inclusivity is the practice of creating a culture where all your employees feel valued, respected and have equal opportunities to contribute and succeed.

Having a workforce that’s diverse, varied and inclusive ensures that all groups in your local community are represented. But it also helps you to stay competitive, productive and able to outperform your close competitors.

Here are four major benefits that diversity and inclusion can bring to your business

Better performance: Diverse companies outperform less diverse companies. According to a 2023 report from McKinsey & Company, top-quartile companies had a 39% greater likelihood of financial outperformance compared with their bottom-quartile peers.
Superior decision-making: Diverse teams are better at analysing a situation, looking at all available options and making the best decisions. Research by Cloverpop found that diverse teams are 87% better at making decisions in a business situation
Improved revenue: When your company is diverse it leads to better revenue generation. A study by Boston Consulting Group showed that companies that reported above-average diversity on their management teams also reported innovation revenue that was 19 percentage points higher than that of companies with below-average leadership diversity.
Greater innovation and skill-sharing: Inclusive teams are more creative and drive better innovation, by listening to everyone’s voices and ideas. According to Australia’s Inclusion@Work Index, inclusive teams are 9.5 times more likely to be innovative than non-inclusive teams.

It’s clear that having a diverse and inclusive workforce can give your business a genuine boost. But what can you do to improve the diversity of your core talent and culture?

Think about:

Having more inclusive hiring practices, such as blind CV/resume reviews and diverse interview panels, so you can attract and hire a more diverse range of talent.
Building up a culture of inclusivity and respect, where everyone from within the business feels valued and empowered to contribute.
Think about setting up Employee Resource Groups (ERGs) to provide support and networking opportunities for employees from underrepresented groups.
Provide regular diversity and inclusion training for your employees to help promote a broader understanding and awareness.
Set up mentorship programs to help employees from underrepresented groups advance their careers and achieve their full potential.

Talk to us about updating your people strategy

If you want to maximise the impact of having a diverse and inclusive workforce, that means updating your people strategy to attract and support a better cross-section of society.

Measuring the health of your business with ratio measures

Tue, 11 Nov 2025 23:30:12 GMT

Taking stock of the health of your business allows for more effective planning, early warning about issues, and a better course for success. We can help assess your business health, to set you on the right track.

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 are 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 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 if cashflow gets tight.

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 able 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

Debt 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 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.

Does your Aussie small business have a succession plan?

Fri, 03 Oct 2025 04:53:56 GMT

Research from MYOB shows nearly half of Baby Boomer business owners are planning to exit in the next 1 to 5 years. But do you have a succession plan in place to guide this exit?

New research by the accounting software provider MYOB has found that nearly half of Baby Boomer SME business owners and operators plan to exit their business in the next one to five years – but with many having no succession plan to guide this exit.

Without a clear exit strategy, the handover from an experienced, mature owner to an ambitious, but inexperienced, younger owner could be a chaotic experience.

Let’s take a look at the importance of a watertight succession plan, and the key elements you should include in this plan to guarantee a smooth transition.

What is a succession plan, and why do you need one?

Your succession plan is a strategic roadmap that outlines how you’ll transfer the leadership and ownership of your business to a new successor.

The plan outlines when the business will be handed to the next owner, the terms and conditions of this sale/transfer and all the finer details of your own exit from the company.

4 essential elements to include in your succession plan

Your succession plan has a number of purposes. It tells you when and how you’ll exit the company. It tells the new owner when they will assume control. And it keeps your management team in the loop. It also provides a timescale for the whole process to take place.

So, let’s take a closer look at the key elements of the succession plan and what you should include in your own exit strategy and plan.

1. The terms of the owner’s exit

This section should clearly define your role after you depart from the business. Explain if there will be any continued involvement, such as a consultancy or non-executive director (NED) role. Make sure you specify how and when the owner will be legally and operationally detached from the business – this allows the reins to be handed over smoothly, without any hitches.

2. The timeline for the transition

A comprehensive timeline should outline the key milestones for the transfer of ownership, responsibilities and knowledge-sharing. This plan ensures you achieve a smooth handover, without any operational disruption and with all stakeholders fully up to speed.

3. Who the business will be passed to (the successor)

Your succession plan must identify the chosen successor, whether they’re a family member, a key employee or a third-party buyer. It should also detail the required training and mentorship that your successor may need. You must also include a clear transfer of authority and leadership from the current owner to the new owner.

4. The financial arrangements for the sale or transfer

This section should outline the valuation of the business and the financial terms of the sale or transfer. Include all the specifics of how the owner will be paid, following the conclusion of the sale. This could be a lump sum, instalments or an equity arrangement.

In helping you plan an effective exit from the business, it’s also important to get strategic planning advice and legal advice when putting your succession plan and supporting documents together. Get in touch to talk more.

The value of cashflow forecasting for your business

Fri, 03 Oct 2025 04:53:56 GMT

A business cash flow forecast will give you vital business intelligence to help you scenario-plan, search for cost-savings and look for strategies that will preserve your cashflow position. Find out how it can help your business.

Projecting your cashflow pipeline forwards 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

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

Run regular forecasts – The financial landscape is changing on a daily basis at present. A cashflow forecast is not a document that remains static. Variables and external drivers are literally changing each day, so it’s vital that you run frequent forecasts and react swiftly to any projected cash issues as they become apparent.
Use the latest cashflow forecasting apps – cashflow forecasting apps, like Fluidly, Float, Futrli Predict or Fathom integrate with your accounting software. They give a drilled-down view of how your cash inflows and outflows will pan out over the coming months – information that will inform and justify the decisions you make during these extremely challenging times.
Explore the right revenue streams – most sectors will have seen their sales change over the last 18 months. To overcome this, there’s a real imperative to explore revenue streams and new opportunities for income. This could be offering a new product or service, or working with a new partner. The idea is to find ways to increase the money that’s coming in the door and balance out your unavoidable expenses.
Get proactive with cost-cutting – if you can reduce cash outflows to a minimum, that will have a real impact on the health of your future cashflow. Pare back your operations and aim to reduce things like unnecessary software subscriptions, or over-ordering of basic supplies. Negotiating cheaper rates with suppliers, if possible, will also help.
Review your staffing needs – it's never great to make anyone redundant, but you can also look at ways to reduce the costs of staffing and resourcing without getting rid of staff completely. Reducing working hours or redeploying staff in different roles are all options that reduce payroll costs, while also looking after your staff.
Run a variety of scenarios – changing the financial drivers in your forecast model allows you to scenario-plan different strategies and options. Many of these will be in a long-term plan once conditions improve. Scenario-planning lets you answer questions and will give you some hard evidence on which to base your decision-making and strategic outlook over the coming months.
Look at various ways to access funding – if forecasts show a giant cashflow hole coming up, you’re going to need additional funding to get through this crisis. We can assist your business to investigate funding opportunities from grants, banks, loan providers, alternative lenders and crowd-sourcing funders.

Talk to us about setting up cashflow forecasting

Forecasting is an important step to give you the business intelligence to support your decision making.

The value of old-fashioned customer service: getting data insights

Fri, 03 Oct 2025 04:53:56 GMT

With so many customer interactions taking place online, your online customer service has to be first-rate. We look at the ways customer data can drive tailored, personalised service and support.

In a world where so many of your customer touch points take place online, there’s still a place for good, old-fashioned customer service.

Personal, tailored and (crucially) human interactions are what make your business unique. But how can you learn from your customer data to make this bespoke approach more effective?

We’ve highlighted four ways to use data analytics to improve your online customer service

1. Personalise your communications and experiences

Your CRM and e-commerce systems are full of useful customer data.

By diving into data points like customers’ purchase history or browsing behaviour, you can offer each customer a more personalised experience. This could include tailored product recommendations, relevant content from your blog or discounts on their favourite product. Knowing what a customer loves about your brand, or your product, shows you understand their needs – and that’s great for building stronger relationships and brand loyalty.

2. Make customer support more targeted

Sifting through your customer service data to find the common pain points can be revealing.

Analyse your data relating to customer feedback, product issues or common complaints. This helps you build up a detailed picture of the everyday issues experienced by your customers. Based on these insights, you can deliver relevant training for your customer support team, leading to faster, more-effective resolutions. The same data can also inform your self-service features, making it easier for customers to autonomously find the resolutions they need.

3. Resolve any potential issues fast!

The faster you can react to customer feedback, the more valued your customers will feel.

Monitor data for signs of customer frustration or churn risk. Data points to look for include low engagement, or a sudden drop in purchases. By looking out for these potential problems early, you can reach out quickly with proactive support and special offers – before real damage is done and the customer decides to leave and disengage from your brand.

4. Improve your products and services

You can improve your products/services by factoring in the most common customer complaints and making changes based on this feedback.

Collect and analyse your customer feedback from surveys and reviews to pinpoint specific areas for improvement – and factor these into your product design and development. Acting on your customers’ feedback doesn’t just show you’re listening; it shows that you designed your products specifically for their needs. This is a great way to make customers feel valued.

Let’s get analytical with your customer data

The secrets to delivering these unique, personalised customer interactions lie in the data that’s already in your customer digital systems. Talk to our team and we’ll help you come up with a strategy for reviewing, analysing and classifying your customer data.

Business confidence is on the up: how to overcome the big challenges

Fri, 03 Oct 2025 04:53:56 GMT

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Trading conditions for Aussie small businesses have been challenging for the past few years. But there are signs that business confidence is increasing.

National Australia Bank’s index of business confidence climbed to +7 in July 2025, up from +5 in June, the highest reading since August 2022.

NAB’s latest SME Business Insights report does show a small dip in business confidence for August 2025, with a decrease of 3 points. But the report also shows that small and medium-sized businesses (SMBs) across Australia are making bold moves to tackle the challenges that are keeping them awake at night.

What Aussie SMBs are doing to tackle uncertainty

Data from the Q2 2025 edition of NAB’s SME Business Insights reveals that there are three key areas that are currently worrying Aussie small business owners:

Cashflow pressures (44%)
Profitability issues (38%)
Government policies and regulations (37%)

According to NAB’s survey, business owners are responding with ‘grit and innovation’. Half of those surveyed are actively cutting costs and renegotiating supplier terms, while others are ramping up marketing efforts (37%), investing in talent (29%), and reimagining pricing strategies (29%) to stay competitive.

But what can your business do to tackle the top three SMB worries?

Ways to boost your own confidence as a small business

Cashflow, profitability and regulatory worries are major concerns for your small business. But with some strategic and tactical thinking, there are ways to overcome the challenges.

Here are three fundamental ways to tackle these concerns:

1. Cashflow pressures:

There are a number of tactics you can use to combat any cashflow pressures.

Switching to e-invoicing will speed up payments and improve your liquidity. Reviewing your pricing can also help, by extending your margins and bringing in greater revenues. Cashflow forecasting is another area to explore, giving you prior warning of any upcoming cashflow gaps.

2. Profitability issues:

To improve profitability, you should regularly review and manage your costs.

A company-wide review of your operational spending helps you find the key areas where expenses can be cut. Reduced operational expenditure means improved gross margins and a better bottom line at the end of the period. With better profits, you have the capital to invest in new equipment, talent and the future of the business.

3. Regulatory worries:

It’s vital to be on top of changing tax legislation, legal requirements and necessary licenses.

You can use free government resources, like the Australian Business Licence and Information Service (ABLIS), to stay compliant. This helps avoid potential penalties and ensures you meet all your legal requirements as a small business. The Australian Taxation Office (ATO) also offers a free Tax Time Toolkit for small businesses that helps you stay compliant with all the relevant business taxes, including new tax measures and digital requirements.

Want help with your strategy and tactics?

The fundamental challenges of trading are not going away any time soon. But by updating your strategy and tactics, you stabilise your financial foundations and remove some of the worries.

We’ll work with you to review your pricing strategy, operational spending and regulatory compliance, helping to reduce your concerns and boost your own business confidence. Get in touch.

The right to work from home: the potential impact for your employees and business

Thu, 28 Aug 2025 03:58:47 GMT

Proposed legislation from the Victorian Labor Government could offer your employees the right to work from home 2 days per week. We’ve outlined how to make the most of WFH.

Having the option to work from home (WFH), without the commute and the cost, has proved to be a very popular benefit for many time-strapped employees.

But until now, this ability to do your job from home has never been enshrined in law. This may be about to change, with Jacinta Allan’s Labor government proposing new legislation that would give employees the right to work from home two days per week.

This is great news for the flexible working arrangements of many hard-working Victorian workers. But what would this legislation mean for your business?

What does the proposed legislation suggest?

Under the legislation proposed by the Victorian State Government, the right to work from home would be made a legal right, available to employees that can work from home.

The Government proposes that:

All employees have the right to work from home at least two days per week
Employees would have this right if they can ‘reasonably do your job from home’
It would apply to both public sector and private sector workers.

What are the advantages of working from home?

The Allan Government believes there are plenty of advantages to encouraging the move to hybrid working, where workers work both from the workplace and their own home.

The Government’s recent media release states that:

WFH is a more flexible way to work. More than a third of Australian workers – including 60% of professionals – regularly work from home.
WFH saves families money. It saves Australians on average $110 a week or $5,308 every year, helping families make their dollars go further.
WFH cuts congestion. Victorians are now spending less time commuting, saving more than three hours in their week on average.
WFH gets more people working. Work from home supports women with children, carers and people with a disability to work.
WFH is good for business. Those who work from home work nearly 20% more hours than those who are working in the office full time.

Is WFH good or bad for your business?

Once the COVID pandemic was over, many businesses mandated a ‘return to work’ policy that was at odds with their employees’ desire to continue with hybrid working.

The worry among less enlightened business leaders was that your workforce needed to be in the office or place of work 5 days a week – and that this was the only practical way to manage a team and keep employees productive.

However, most research has shown that employees are happier, more motivated and more productive when allowed at least some time working from home.

80% of survey respondents in a recent survey by the Australian HR Institute expect that hybrid working levels will increase or stay the same in the coming two years.

Increasingly, employees feel that a hybrid mix of working from the office and from home is a standard expectation of their role – and one of their hard-won, work-related benefits. So, what can you do to get the best from hybrid working and WFH?

Here are five key ways to achieve WFH productivity:

Build a culture of trust and autonomy: Empower your employees by making it clear that you trust them to manage their own time and workload from home. Don’t micro manage your team. Instead, show respect that will boost their motivation and get good results.
Invest in the right technology and tools: Your team will need access to communication and collaboration tools like video conferencing, and messaging platforms like Teams and Slack. They’ll also need project management software to keep workflow organised and efficient.
Maintain strong, regular communication: Use scheduled check-ins and team-wide video calls to keep everyone aligned and engaged. This stops solo team members feeling isolated and helps to build and reinforce that feeling of being part of a wider team.
Promote a good work-life balance: Encourage all your employees to set boundaries between their work and home life. Respect their non-working hours and make sure everyone has time to rest and recharge, to prevent burnout and poor wellbeing issues.
Focus on outputs, not hours: Make sure you judge your employee’s performance on the quality and completion of their work, not on how many hours they’re visibly online. This really helps to reinforce trust and incentivise the whole team to be as productive as possible.

Whether you’re a fan or an opponent of hybrid working and WFH, the reality is that most employees will expect some kind of flexible working from their employer.

Book some time with our team to talk through more strategies for making WFH both a positive and a productive change for your business.

Interest rates come down: how could this affect your business finances?

Thu, 28 Aug 2025 03:58:47 GMT

The Reserve Bank of Australia has lowered interest rates. What does a drop in interest rates mean for you, your business and your financial opportunities?

The Reserve Bank of Australia recently cut interest rates to 3.6%, down from 4.1%. This takes the cash rate to 3.6% for the first time since April 2023.

The final impact of this drop can be both positive and negative for your small business, so it’s worth understanding the effect that interest rate changes can have.

Let’s take a look at how a drop in interest rates may affect your finances

Reduced cost of borrowing

Lower interest rates on loans: This directly translates to lower interest payments on your existing loans and potentially more favourable interest rates on any new loans you take out.

Increased access to credit: With lower borrowing costs, you may find it easier to secure financing for expansion, investment in new equipment, or to overcome and present challenges.

Improved cashflow

Reduced debt service: Having lower interest payments frees up cashflow. This can be used to reinvest in the business, used for marketing, or distributed to shareholders.

Increased consumer spending: Lower interest rates help to stimulate consumer spending. This can mean increased demand for goods and services, higher sales and boosted revenues.

Better opportunities for investment

Lower cost of capital: With cheaper borrowing costs, you can invest in growth, including research and development, technology upgrades or hiring new staff.

Increased confidence: Lower interest rates can boost investor confidence. This makes it easier for you to find investors and raise capital through equity financing.

Economic growth

Stimulate the economy: Lower interest rates can boost economic growth by encouraging borrowing, investment and consumer spending. This creates a more favourable environment for your businesses to thrive in. A stronger economy = a more stable future.

Get the funding to secure your business future

Investing in the future of your business is a vital step. With interest rates currently lower, now’s the time to think about borrowing and putting your 2025 strategy into action.

Talk to our team about your growth plans and how these interest rate changes may impact your business. We’re here to help you reinvest, grow and keep on evolving.

5 signs you’re undercharging

Thu, 28 Aug 2025 03:58:47 GMT

Are you undercharging for your fees? We’ve got the five warning signs that can help you diagnose whether your prices are too low.

Are you undercharging for your services? It can be hard to tell, particularly if you’re in a niche industry or you’re a contractor. Costs have been rising, so it may be time to rethink your own pricing.

Here are five signs that you might be undercharging:

Nobody ever questions your quotes - Do all your new clients accept your quotes or charges without asking any questions, requesting a breakdown or wanting a discount? It’s possible they’re delighted to be getting such a great deal.
You run off your feet but you can’t afford to get help - When you’re working yourself to the bone, but there’s not enough money left over to employ someone to help you, your prices are too low – or something else needs to change.
Your prices have been the same for two years or more - In most industries, prices increase just slightly each year. Leave your prices flat for too long and you’re not keeping up with the market; make sure you review your fees annually.
You’re overbooked - When business is booming and there’s no room for new clients, it’s time to raise your prices.
Clients don’t treat you as well as they should - When clients think they’re paying peanuts, they’ll often take you for granted. They don’t see your time as valuable, so they feel free to mess you around.

What should you be charging?

Finding your pricing sweet spot could take a little time. You’ll need to do some research, maybe ask around a little, and find out where your competitors are pitching their rates.

We can help too – if we have clients in similar industries we might be able to give you some indication of typical fees, so give us a call or drop us a note. We’d love to hear from you.

Should you buy or lease your business assets?

Thu, 28 Aug 2025 03:58:38 GMT

Should you buy or lease your new equipment? Here are some pros and cons of each. We also can review your financial position, cashflow and cost base to decide whether buying or leasing is the right thing for your business.

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 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:

Pro: It’s a tangible asset – when you buy an item, you own the item outright and it will appear on your balance sheet as one your business assets. As such, by owning these assets outright you increase the perceived capital and value of your business. You can also claim the cost of the asset against your capital allowance for tax purposes.
Pro: It’s yours for the life of the asset – once you own the item, you have full use of the equipment for the duration of the life of the asset. Your use of the asset isn’t reliant on you being able to keep up regular lease payments, and if your financial circumstances change then you can sell the asset to free up the capital.
Con: It’s an expensive outlay – paying for the item up-front is a large outlay for the business and will require you having the cash to cover this cost. Spending a large lump sum in this way may take cash away from other areas of the business, so you need to be 100% sure that this purchase is the right decision and a sound investment.
Con: You may require extra funding – if you don’t have the liquid cash available to buy the item outright, you may need to take out a loan. Asset finance is available from funding providers, but does tie you into a loan agreement that will add to your liabilities as a business – reducing your worth on the balance sheet.

Leasing: the pros and cons:

Pro: Leasing has a cheaper entry point – if the item you need to purchase has a large price tag, leasing allows you to make use of the asset without the cost of buying it in full. For start-ups and smaller businesses with minimal capital behind them, this can make leasing a very attractive option. You may not own the asset, but you can make use of it – and this may be the difference between the success or failure of your business.
Pro: You can spread the cost – there is still an associated cost of leasing, but you can spread the cost over a longer period, making it easier to find the necessary liquid cash to meet your lease payments. With this money saved, you can then invest in other areas of the business, helping you to expand, grow and bring in more customers and revenue.
Con: You don’t own the asset – there are different types of leasing agreement. Under a capital lease, you do own the asset (once you’ve paid if off). But if you opt for an operating lease, this is a more short-term lease and you won’t own the asset at the end of the contract. Ownership does have its advantages (including being able to sell off the asset if required) so it’s important to consider what kind of leasing agreement you’re entering into and what the advantages/disadvantages may be.
Con: You may pay more in the long run – most leasing agreements will attract additional costs and interest on your agreement, so you may well end up paying more than the market price for your asset in the long term. If you can cope with the higher cost, this is fine, but bear in mind that buying outright may have offered greater value.
Con: You may lose the use of the asset – if you can’t keep up your lease payments (due to poor cashflow for example) then the owner of the lease agreement may recall the asset. If this item is crucial to your business model, losing this key asset can have a profound impact on your ability to operate. In this respect, leasing is a more risky prospect, but also an easier option for businesses with less cash to splash.

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’ll 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 your business.

The ATO's new Tax Toolkit for small business owners

Thu, 28 Aug 2025 03:58:29 GMT

The ATO’s updated Tax Time toolkit is your 101 guide to business taxes. We’ve summarised the key resources you can find in this toolkit, with links to the ATO site.

As an entrepreneur, one inescapable reality of running your business is remembering to pay taxes on the profits the company makes, and the earnings you make as a director.

It’s the least glamorous and exciting part of managing the business, but it’s also a major responsibility, where the buck stops firmly at your desk as the owner, CEO or company director.

Fortunately, the Australian Taxation Office (ATO) has just published its latest Tax Time toolkit for small businesses, with guidance and advice on keeping your tax affairs compliant.

How the Tax Toolkit helps your tax planning and compliance

When you’re busy dealing with operational issues, sorting out a staffing problem or working on business development, it’s easy to let your tax responsibilities slip down the to-do list.

But it pays to be prompt and organised with your business and personal taxes, whether it’s your quarterly Business Activity Statement for GST or your corporation tax pre-payments. Failing to meet the ATO’s deadlines can land you with some costly penalties.

The ATO knows the realities of running a small business. So the Tax Toolkit is designed to give you all the information and advice you need to stay compliant.

Angela Allen, Assistant Commissioner for small business experience at the ATO, outlines the aims of the Tax Toolkit and how the ATO supports your tax planning.

“Our role in helping you get your tax right is important. We're here to help you boost your tax and super knowledge. We want you to be more resilient to the unexpected challenges that small businesses face. We'll keep doing this through tailored and timely advice, and through our informational and educational support resources.”

What resources does the Tax Toolkit contain?

The ATO’s Tax Time toolkit gives you key resources to help you meet your tax obligations. The advice, information and support included is updated throughout the year, so you always have the correct tax rates and rules to refer to.

You can also find 300 free short courses in the ATO’s Essentials to strengthen your small business, helping you learn the skills and gain the knowledge needed to run your business and your tax affairs as smoothly as possible.

Helping you plan your tax and stay compliant

The ATO’s Tax Time toolkit is an invaluable resource that helps you get to grips with all the basics of business taxation. But if you’ve got more detailed questions about your company’s tax, please do come and talk to our team .

We’ll help you review your tax obligations, tax payment schedules and the best ways to budget for your ongoing tax costs and GST payments etc.

Selling your business: what happens once you exit?

Wed, 18 Jun 2025 02:01:35 GMT

You’ve sold your business! But what happens now!? We’ve outlined five potential pathways your post-sale life could take, and how they help you find new goals and lifestyles.

You’ve completed the sale of your business! Now there’s an important question to ask yourself – what happens next and how do I see the next chapter of my life panning out?

In this series, we’ve given you all the advice you need to plan your exit, add value to the business, negotiate a great deal and define your new pathway once the business is sold.

So, let’s explore how your journey might look once the sale is complete.

Exiting your business is a big deal. You’ve spent years taking this enterprise from startup to established business, putting your heart and soul into making this company a success.

So once the ink is dry on the sale contract and the money is in the bank, you’re going to need a new challenge to fill the void of no longer being ‘the big boss’

Here are five potential pathways to take:

Retirement

After all these years of hard work and pressure, maybe it’s time to enjoy some well-deserved retirement? If you’re planning to retire and put your feet up, put some thought into factors such as financial planning, hobbies you might want to explore and travels you might want to go on – ensuring you have a comfortable lifestyle.

Invest in other businesses

If you want to keep some business interests alive, why not explore opportunities to invest in other businesses or new startups. This can provide a source of income and allows you to stay engaged in the business world, using your wealth of experience and management skill to guide other promising companies.

Start a new venture

If you’re itching to try another new business idea, why not use the profits from your sale to found a new business or venture. This might be a new private business, or even a social enterprise that reflects your current passions and interests. Having learned your mistakes first time around, you have the knowledge and experience to turn business #2 into another great success story.

Become a non-executive director (NED)

If you don’t want the hassle of being the boss, but want to keep your hand in, becoming an NED makes good sense. You can use your experience and expertise to contribute to the governance and strategic direction of other companies, while keeping your own business skills fresh and up to date.

Get philanthropic

Why not use your wealth and new-found free time to do something good for your community? Think about giving back to society through charity work, philanthropic activities or setting up a social enterprise. It’s a fulfilling way to make a positive impact while also giving you a challenge to get your teeth into.

Talk to us about planning your post-sale lifestyle

Some ex-business owners enjoy the comforts and relaxation of retired life, while others get itchy feet and want to return to their entrepreneurial roots as soon as possible.

Talk to our team and tell us about your post-sale plans. We can help you plan your lifestyle, set up your wealth management strategy and open up new business opportunities along the way.

Selling your business: getting a good deal

Wed, 18 Jun 2025 02:01:32 GMT

Are you ready to sell your business? Here are six important ways to secure the best deal, through solid negotiation and a deep understanding of your core strengths as a company.

You’ve spent years growing your business and adding value to the company. Now it’s time to sell up, get a good deal and liquidise the equity you’ve had locked up in the business.

In this series, we’ll give you all the advice you need to plan your exit, add value to the business, negotiate a great deal and define your new pathway once the business is sold.

Let’s look at some important ways to achieve the best possible deal for your business sale.

Selling your business is generally the end step in a much longer journey. If you’ve put together a detailed exit strategy, you’ll have been planning this sale for some time.

The important thing at this point is to make sure you get a great deal and realise the best possible sale price – giving you the return you deserve for all your hard work.

To put yourself in the optimum position when looking for a buyer, here are a few tips:

Know the value of your business

Make sure you’ve conducted a thorough valuation to understand the true market worth of your business. This gives you a strong negotiating position and helps you set a realistic asking price that’s attractive to buyers.

Research the market in your industry

Take a deep dive into current market trends and comparable sales to understand what a fair price is for a business in your industry. Armed with this info, you’re in a good position to negotiate a competitive price.

Highlight the strengths in your business

Use your sales materials to emphasise the unique selling points and competitive advantages of your business. This could include having a strong customer base, explaining the experience of your management team, or outlining the benefits of your proprietary technology and intellectual property etc.

Know the funds you need to realise

You’ll have plans for what happens after the sale, whether that’s a comfortable retirement, or the founding of a new enterprise. Make sure you know how much equity will be needed to fund this lifestyle, or startup plan. This number will drive your asking price for the business and your own profit from the sale.

Be prepared to negotiate

You may have a price in mind that your prospective buyer is unwilling to meet. Be prepared to negotiate on price, terms, and other aspects of the deal. Understand your bottom line, know the return you need to achieve and be willing to compromise in some areas, when necessary, to seal the deal.

Always seek professional advice

Mergers and acquisitions is a specialist area. Think about consulting with a business broker or legal adviser to guide you through the negotiation process. With the benefits of experienced, professional advice, you’re far more likely to get the best possible deal for the company.

Talk to us about planning the sale of your business

Finding the best buyer and securing a mutually beneficial deal is one of the most critical points in your exit strategy. Getting it right now is vital for your long-term plans and financial security.

Getting help with your small business debt

Wed, 18 Jun 2025 02:01:30 GMT

Is your business debt getting out of control? Come and talk to us about strategies for reducing debt and getting cashflow under control.

Are you struggling with debt?

It’s a real worry when debt levels are on the up, but cashflow levels are heading down.

We know the stress, uncertainty and pressure you can feel as the business owner. But it’s not all bad news. There are ways to overcome the debt and get things back on track.

The first step is to understand WHY you’re in debt.

Insufficient cashflow

A lack of cash is one of the biggest causes of out-of-control debt for many affected businesses. Unexpected expenses, delayed payments from customers and rising costs can all contribute to your negative cashflow position and inability to pay your debts.

Declining sales revenue

A drop in sales also means a drop in revenue. This can be due to increased competition, changing consumer preferences or economic downturns. With less money coming into the kitty, you lose the ability to meet your financial obligations.

Rising costs

Skyrocketing costs of raw materials, labour or energy can all have an impact. Higher costs and expenses eat into your profit margins, putting major strain on your cashflow and leaving you unable to cover your key outgoings.

Excessive short-term debt

High levels of debt, particularly short-term debt, will lead to high interest payments. These increasing interest rates make it difficult to meet your financial obligations, and also make it unlikely that lenders will offer further funding.

Poor management decisions

Some of the causes of debt, insolvency and financial distress come from macro, external conditions. These are out of your control. But poor strategic decisions, ineffective marketing and inadequate financial planning also play a significant part. We’re here to help you deal with rising debt

You don’t have to suffer in silence. If debt is keeping you awake at night, come and talk to us .

We’ll review your cash and debt positions to look for the best ways to get you back on track.

The ASBE also has a guide to small business debt . And you can also call the Small Business Debt Helpline on 1800 413 828 for confidential help and advice.

What are your business goals for the year ahead?

Wed, 18 Jun 2025 02:01:26 GMT

What will you do differently this year to enable your business to thrive? Conducting a past-year review with our experienced advisors will provide valuable insights for this year's goal-setting.

The beginning of a new calendar year is an excellent time to review last year and reflect on what worked, what didn’t, what you’d like to change and new things you want to implement.

Take the time to review the year and acknowledge all that has happened, good, bad or indifferent. Examining the year with an objective perspective can provide valuable insights to prepare for the coming business year. Planning and goal setting will help provide a focus for your business efforts.

Your Yearly Business Review

What were the most significant impacts on your business in the last 12 months? How well did you meet the challenges?
What worked well last year? What systems, technology, products or services were successful?
What accomplishments can you celebrate?
What situation, event or experience provided the biggest learning opportunity?
What is the biggest challenge or frustration you face as you prepare for the year ahead?
What did you most enjoy during the year? Do more of it. What did you least enjoy? Do less of it!
Analyse your financial reports. Are you earning what you’d like to? Is the business sustainably profitable?

Get Ready for a Great Year

While there are many metrics you could evaluate to track business performance, we’ve given you just a few ideas to inspire your business planning for a positive start to the year.

If you’d like to chat about what you can do differently this year to enable your business to thrive, book a time with us today.

ATO Announces 2025 Tax Compliance Priorities: Key Areas for Small Businesses to Watch

Thu, 29 May 2025 00:35:54 GMT

The Australian Taxation Office (ATO) has unveiled its compliance focus areas for the 2025 tax year, highlighting the importance of accurate claims and thorough record-keeping, particularly for small businesses and individuals.

Unusual Deduction Claims Under Scrutiny

In a recent announcement, the ATO shared examples of questionable deduction attempts, including:

A mechanic claiming an air fryer, microwave, vacuum cleaners, a TV, gaming console, and accessories as work-related expenses.
A truck driver attempting to deduct swimwear purchased for leisure during transit stops.
A fashion industry manager seeking over $10,000 in deductions for luxury-branded clothing and accessories.

These claims were denied as they were deemed personal in nature.

ATO Assistant Commissioner Rob Thomson emphasized that expenses must have a direct connection to income-earning activities and be substantiated with appropriate records. He advised taxpayers to ensure their claims pass the "pub test"—if a claim seems unreasonable, it's likely not deductible.

Key Compliance Focus Areas for 2025

The ATO has identified several areas where errors are common and will be focusing its compliance efforts:

Work-Related Expenses: Ensuring claims are directly related to income generation and properly documented.

Working from Home Deductions: Taxpayers can use either the fixed rate method (70 cents per hour) or the actual cost method, but must maintain accurate records and avoid claiming expenses twice.

Multiple Income Sources: All income, including from side hustles like ride-sharing or freelance work, must be declared.

For small businesses, the ATO is also concentrating on:

Contractor Income Reporting: Ensuring all income is reported, with a focus on data matching.

Business Activity Statement (BAS) Reporting: Encouraging accurate and timely GST reporting, particularly for those transitioning from quarterly to monthly reporting.

Non-Commercial Business Losses: Monitoring claims to ensure they meet the criteria for deductibility.

Capital Gains Tax (CGT) Concessions: Verifying eligibility and correct application of CGT concessions.

GST Registration and Reporting: Ensuring businesses, including those in the taxi, limousine, and ride-sourcing sectors, are correctly registered and reporting income accurately.

Australian Taxation Office

Tools and Resources

The ATO recommends using the myDeductions tool available in the ATO app to keep track of expenses and records throughout the year. This can simplify the process of lodging tax returns and sharing information with registered tax agents.

Taxpayers are encouraged to consult the ATO website or speak with registered tax professionals to ensure compliance and avoid penalties.

Australian Taxation Office

For more detailed information, visit the ATO's official announcement: ATO unveils ‘wild’ tax deduction attempts and priorities for 2025 .

What makes a business expense tax deductible?

Tue, 27 May 2025 05:05:08 GMT

The ATO recently published some ‘wild claims’ that business owners had tried to make for business expenses. But what CAN you claim and what CAN’T you claim? We have the answers.

You’re a business owner, so you’ll incur a fair number of business expenses over the course of your average week. Costs for client entertaining, petrol to put in your car and toner for the office printer to name just a few.

But are any of these expenses deductible against your tax bill?

The Australian Taxation Office (ATO) recently published some wild claims that business owners had attempted to make when claiming for business-related expenses:

A mechanic tried to claim an air fryer, microwave, 2 vacuum cleaners, a TV, gaming console and gaming accessories as work-related. The claim was denied as these expenses were personal in nature.
A truck driver tried to claim swimwear because it was hot where they stopped in transit and they wanted to go for a swim. The claim was denied as these expenses are personal in nature.
A manager in the fashion industry tried to claim well over $10,000 in luxury-branded clothing and accessories to be well presented at work, and to attend events, dinners and functions. The clothing was all conventional in nature and was not allowed.

Needless to say, none of these expense claims cut the mustard for the ATO.

So what expenses CAN you claim?

Business expenses the ATO allows you to claim

Most expenses you incur in the everyday running of your business can be claimed, but to qualify, the expense must be directly related to earning your assessable income.

This can include day-to-day operating expenses, purchases of products or services for your business and even certain capital expenses, such as the cost of depreciating assets.

The ATO has three golden rules that an expense must pass to be tax deductible:

The expense must have been for your business, available as an allowable deduction and not for private use.
If the expense is for a mix of business and private use, you can only claim the portion that is used for your business.
You must have records to prove it.

As a rule of thumb, if your expense is in any way related to personal usage, then it’s not tax deductible as a business expense.

For example, NONE of the following expenses can be claimed with the ATO:

Entertainment expenses, other than those you provide as a fringe benefit.
Traffic fines, even if it was during business travel.
Private or domestic expenses, such as childcare fees or clothes for your family.
Expenses relating to earning income that is not assessable.
Payments for which you have not met your PAYG withholding or reporting obligations – non-compliant payments.
The GST component of a purchase if you can claim it as a GST credit on your business activity statement.

Still unsure?

If you’re unsure whether a cost qualifies as a business expense, or whether you can make a claim to the ATO, do come and talk to the team .

We’ll help you review your operational expenses, so you can maximise the tax deductions and lighten the load on your cashflow.

How’s your work-life balance?

Tue, 27 May 2025 05:05:06 GMT

Many business owners are reviewing their priorities and their work-life balance. Gallup reported that 39% of the owners they surveyed worked over 60 hours a week. How can you reclaim time and balance in your business?

It’s great to be the boss – you can work any hours you like, right?

Unfortunately, for many business owners, that means long hours, plenty of stress, and very few breaks and holidays. Gallup reported that 39% of the owners they surveyed worked over 60 hours a week.

Owners often report they are unhappy with their work life balance, and after the challenges of the recent years you might find yourself thinking hard about your priorities.

Running a business and having a life

Can you run your business effectively and still have enough time left over to do the things you love? You’re the best judge of how much time your business needs, but don’t neglect your wellbeing. If you would like to take back some personal time, you could consider:

- Delegating – don’t try to do everything yourself.

- Saying no – not every project is worth taking on.

- Investing in systems – to reduce time on admin or paperwork.

- Taking all your leave – find ways to have breaks and holidays.

- Maximising technology - making sure your systems are all integrated, and using AI where appropriate.

Working towards a balance

If you really can’t work less right now, try to build your business with a better balance in mind for the future. It’s important that you can step back at some point to take a holiday, travel, or spend time with family. Being tied to your business for more than 60 hours each week isn’t a sustainable way to take care of your health and higher profits aren’t worth that sacrifice.

Also, any business that doesn’t allow the owner to step away is very hard to sell and worth far less than one that can run independently!

We'd love to help . Give us a call, drop us a note or come in for a chat

Whether you want to improve your work-life balance now, or build your business to achieve it in future, we have ideas. We’ve worked with plenty of clients who need to reclaim their time, and we know it can be done.

How your accountant supports business development

Tue, 27 May 2025 05:05:02 GMT

Accountants don't just look after the financial side of your business. With our expertise behind your business development, we can help you turn your strategic ideas into real success stories.

As your accountant, we won't just look after the financial side of your business, we can also advise you on the strategic side of your company, including the importance of business development as vital part of your growth plan.

Business development (BD) is what helps your company move from slow, organic growth to fast-paced, hypergrowth. And it’s only by putting the right drive and expertise behind your BD that you can turn your strategic ideas into real success stories.

So, how can we help you achieve this?

Talk to you about your strategic goals

The starting point for any kind of BD activity is to pin down your goals and aims as a business. When you know what you want to achieve over the coming months, it’s far easier to define a strategy for success. And that’s easier to do when you talk to an objective adviser, like us.

We can sit in on your board meetings, talk to your executive team and get a real handle on what makes the business tick. And, armed with this knowledge, we’ll work with you to drive the direction of your BD and find the best opportunities for you to focus on.

Help you create a clear BD strategy and plan

Having a defined set of BD goals is a good starting point. But to put this all into action in a productive way, you’re going to need a comprehensive plan for your BD projects.

Our years of experience advising business leaders and their teams really comes into play here. We know the best routes to take, the budgets that will be needed and the right tactics for bringing in more contracts, sales and partnerships. By putting these strategies into a clear plan, and linking this to agreed timescales, you have a BD route map to follow and action.

Introduce you to a broader network of business partners

We work with a wide range of businesses across many different sectors, industries and niches. By introducing you to our network of clients, we welcome you into a supportive community of like-minded business owners. And that’s excellent news when looking for new partnerships.

Whether it’s attending a local conference, an online webinar or one of our in-house client events, you’re going to meet new people, share new ideas and make the right connections. This is a great way to build alliances and work together with other local businesses. And when you’re well-connected, you set the very best foundations for your future BD activity.

Provide better routes to funding and investment

Whatever goals you’ve set for your BD projects, it’s likely that you’re going to need additional funding to finance this activity. Investing in your expansion, or new partnerships, is vital to getting a good return on your BD, so great access to finance is a definite bonus.

We’ll advise you on the most appropriate funding channels and how you can use these facilities to finance your BD plans. And we can also link you up with banks, lenders and business finance specialists – so you get the advice and finance you need to bring your BD to life.

Help you track and measure your BD performance

Meeting your BD targets takes time – and a whole lot of dedication. Measuring your BD performance over time, helps you stay on track and gives you a good indication of how well you’re tracking against your planned progress.

We’ll help you create the reporting and metrics you need, so you have clear data to track your progress over time. You can log your activity in your project management system, or your client relationship management (CRM) software, and keep clear notes on contacts made, relationships built and targets converted etc.

If you want to get more from your BD, please do get in touch . We’ll partner with you to put some real drive, experience and impetus behind your BD strategies.

How to optimise your business: six areas to focus on

Tue, 27 May 2025 05:04:57 GMT

We’re trading in uncertain times. But now’s the perfect moment to look at optimising your business. We’ve highlighted six key areas where you can improve your business efficiency.

We’re trading in uncertain times at present. But there’s still a pressing need to refine your business model, add value and look at the opportunities for growth.

In this series, we’ll look at some key ways to optimise your business, exploring different avenues to evolve your enterprise and create a legacy you can be proud of.

Six ways to optimise your business

Your game plan might have been to sell the business, achieve a great deal and retire on the profits. But in the current market, it’s possible you’ve had to press pause on this exit strategy.

However, instead of letting the business just tick over, why not get proactive about improving and enhancing your business model, so it’s a more profitable and viable business?

Here are six key areas you should be looking at:

Go digital and automate the business

Now’s the ideal time to embrace digital technologies. With the latest cloud tech, AI and automation solutions you can streamline your operations, improve your overall customer experience and boost sales. You can also explore e-commerce solutions, social media marketing and digital marketing.

Get proactive with your finances

Strong financial management sets the foundations for making the business profitable. Switching to the latest cloud accounting software helps you get a handle on your cashflow, a better overview of costs and a more informed view of your overall financial position. Many accounting platforms will also offer integrations with other helpful business tools, such as inventory, invoicing and point-of-sale (POS) tools.

Build on those customer relationships

Exceptional customer experience helps to build loyalty and drive repeat business. This means getting granular with your customers’ needs, providing excellent customer service and listening to (and acting on ) your customer feedback. It’s the best way to improve your customer service and brand.

Diversify into new areas

It’s easy to get stuck in a rut when it comes to your product range and industry focus. One way to shake things up is to diversify and explore new product ideas, new customer audiences and new niches. Diversification can reveal a whole new customer demographic, not to mention additional revenue streams.

Nurture your team and employee experience

Engaged employees are the foundation of a great business. Invest in training and development to improve your team’s skills and motivation and do everything you can to build a positive work culture. When hiring, look to create a diverse and inclusive team of people, so you have a real melting pot of talent, ideas, skills and experience in the business.

Look for strategic partnerships

Navigating the market is far more successful when you explore the benefits of business partnerships. Connecting with other businesses can extend your market reach, reduce costs and allow you to share resources. You also open up your brand to a whole new customer audience, boosting sales and growth.

Talk to us about optimising your business model.

There’s no single strategy for turning around the success of your business. But looking at new ideas, markets, products and business tools can certainly add considerable value.

If you’re looking to add some pizazz to your business model and operational effectiveness, drop us a line. Our team will be happy to review your current business and identify the opportunities.

Data-driven decision-making operations and inventory

Mon, 07 Apr 2025 04:01:20 GMT

Are you using data insights to drive your operational efficiency? We’ve got the lowdown on five ways that data-based decision-making takes your business to new levels of productivity.

Did you know that diving into the data could help your operations run a lot more smoothly?

In this series, we continue to look at how data-driven decisions sit at the heart of running a successful business.

With so much of your operational processes now being run and managed in software, there’s a massive opportunity to sift through this data to find the useful data insights and patterns.

Every business strives for better efficiency, productivity and cost-effectiveness, and this is where data analysis and making informed, data-based decisions can be a gamechanger.

Let’s take a look at how data can transform your operations:

Optimised inventory management

By getting to grips with your historical sales data and demand patterns, you can quickly optimise your inventory levels. This reduces the risk of running low on popular product lines, and stops you wasting precious cash on inventory that then sits gathering dust in the warehouse.

Improved supply chain management

Reviewing your supply chain data allows you to spot the potential shortfalls before they happen. By being better informed, you can identify potential disruptions in your supply chain, take proactive steps to find other available suppliers and even shop around for more cost-efficient options.

Enhanced production planning

Looking through your production data can be enlightening. Armed with the right data insights, you can optimise your production schedules, reduce waste and improve efficiency across the whole process, so you’re running an altogether more effective production and manufacturing process.

Predicting the need for maintenance

Analysing historic data for your hardware systems gives you a great overview of when repairs may be needed. Backed up with the right data foundations, you can predict equipment failures and schedule maintenance more proactively, reducing the negative impacts of downtime and repair costs.

Resource allocation

Reviewing your utilisation data helps you spot where your people could be used more effectively. Data reviews can help identify areas where your human resources are under-utilised or over-utilised, making it easier to allocate the right people on specific projects and to build teams that can truly help you grow.

Talk to us about using data to improve your operations and inventory

The more information you have about your business operations, the easier it becomes to spot the issues, spiralling costs or productivity black holes that are eating into your efficiency.

Our team would love to talk you through the positive impacts of data-driven decision-making, and how being better informed helps you take your business to the next level.

Data-driven decision-making: growth and strategy

Mon, 07 Apr 2025 04:01:17 GMT

Putting data at the heart of your growth strategy is a no-brainer. We’ve broken down five ways that data-based decision-making helps you grab the best opportunities and grow at pace.

In this series, we continue to look at how data-driven decisions sit at the heart of running a successful business.

With the best possible data insights, you can set the core foundations needed for growth

Without growth, your business is failing to live up to its potential. But planting the seeds of growth can be tricky when you don’t have enough detailed information at your fingertips.

The good news is that you likely already have all the data you need, sitting idle in your software systems. The trick is to consolidate this data, analyse it and to pull out the important patterns, trends and useful data insights.

Armed with this data, you have the best possible bedrock on which to base your next strategic move or the fundamentals of your growth plan.

Let’s take a look at how data can transform your growth:

Identify the growth opportunities

Start by looking at the trends in your own sales data and by reviewing the latest market trends. Where are the opportunities to diversify into new areas or improve your targeting of specific audiences? With a clearer overview of these opportunities, you can start to build a more solid growth strategy.

Allocate resources more effectively

Delving deeper into your operational data helps you understand how to invest in areas that will drive the most growth and profitability. Where could more staffing make a difference? Where do you need updated equipment? Which processes could be automated to free up resources for growth-based activity?

Set more realistic goals

Setting clear goals as a business is what drives the forward movement of the company. But with access to the most in-depth data insights, it’s easier to set realistic and achievable goals for your business. You want to challenge yourself and the team, but also put goals and measures in place that are actually attainable.

Measure performance and adjust your strategy

With a growth plan in place, you can track your progress against your agreed goals and milestones. Recording performance data and key performance indicators (KPIs) allows you to track your journey, understand the company’s performance and amend your strategy for the best results.

Support data-based decision-making

Instead of making big business decisions on a wing and prayer, you have the foundational insights from your business data to inform you. Instead of relying on bias, assumptions and guesswork, your growth strategy can focus on data-backed opportunities and rational, attainable growth goals.

Talk to us about using data to improve your operations and inventory

Leading from the front isn’t just about having good business ideas. It’s about having the data, the evidence and the historic information to back up your ideas. By switching to data-based decision-making, you put solid data insights at the heart of your growth strategy as a company.

Our team would be more than happy to explain the benefits of data-based insights. We’ll explain how to create the most insightful metrics and reporting for driving your growth journey.

Data-driven decision-making: sales, marketing and social media

Mon, 07 Apr 2025 04:01:14 GMT

Analysing your customer data is a no-brainer in our data-driven times. We’ve shared five ways that data can help your sales, marketing and social media activity.

Today, we’re shining a light on the huge pool of customer data you have sitting in your systems.

Are you aware of the impact that data analysis could have on your sales and marketing?

Understanding your customer, knowing their needs and predicting their habits is crucial as a small business. The more information you have regarding your customers, the easier it is to meet those customer needs and offer products and services that they value.

But how does customer and social data help with this goal?

Here are five ways that data can open up your customer interactions:

Targeted marketing campaigns

When you analyse your customers’ data, you can drill down into their preferences. This leads to highly targeted marketing campaigns that truly resonate with your customers and deliver on their specific needs as a buyer.

Improved customer segmentation

Data-driven customer segmentation makes it easier to identify distinct groups of customers with similar characteristics. This is incredibly helpful when tailoring your sales and marketing to specific audiences.

Optimised social media strategies

Looking at the stats for your socials helps you spot which social media platforms are popular with your target audience, and which campaigns have the best engagement and conversion rates. This is gold dust when planning your social media content and campaign to drive conversion.

Enhanced content creation

Analysis of the data from your website and blog help you tailor your content. By looking at customer engagement and bounce rates, you can tailor your content to drive traffic to your site, while also offering the most helpful advice, news, case studies and guides to your customers.

Improved customer experience

Data-driven decision-making gives you the numbers you need to personalise your customer experience. This helps to build stronger relationships, increase sales and customer loyalty and boost your revenues.

Talk to us about using data to improve your sales and marketing.

Customer data is as vital to your decision-making and strategic thinking as your accounts data.

Our team will be happy to run you through the key ways to record and analyse your customer data, and how this data forms the bedrock for making informed business decisions.

Data-driven decision-making: cashflow and financial health

Mon, 07 Apr 2025 04:01:08 GMT

Data-based decision-making helps you take informed action and keep your cash in a positive position. We’ve signposted five key ways that data can improve your cashflow.

Today, we’re looking at how proactive use of data can improve your small business cashflow, and the overall financial health of your company.

Do you know the positive impact that data analysis could have on your cashflow?

We all know that ‘cash is king’, but keeping tabs on the unpredictable path of your business finances can be hard work. Cashflow can ebb, flow and suddenly dip, leaving you without the working capital you need to trade, grow and expand the business.

How can data-driven decision-making help you get in control of your cash?

Here are five ways that data puts you back in the driving seat:

Enhanced financial forecasting

Forecasting apps, like Float and Fathom, take the historical data from your account, analyse the current trends and project your cashflow and revenue forward in time to give accurate forecasts of your future cash position.

Optimised inventory management

Instead of guessing when to replenish and buy new stock, data analytics can help you identify the best inventory levels. This reduces the risk of running out of stock or having excess inventory that can tie up valuable cash.

Targeted marketing

With some analysis of your sales data, you can quickly identify your most valuable customers. This gives you the customer data needed to tailor your marketing efforts, reach the most engaged audience and drive higher revenues.

Improved pricing strategies

Data-driven pricing allows you to set prices that are competitive but still profitable for the business. Thorough analysis of the price points in your market help you fix a price that sells, while also maximising your revenue potential.

Cost reduction

Deep dives into your operational data and spending can be revealing. You can quickly spot the areas where costs can be reduced, budgets can be trimmed and better profit margins are possible – all of which helps to improve your cash position.

Talk to us about using data to improve your financial health

Putting data-based reporting, key performance indicators (KPIs) and forecasting at the heart of your financial management is a no-brainer. But where do you start?

Our team can talk you through the best way to record, filter and analyse your financial data, so you can make informed decisions that keep your cashflow in a positive position.

Federal Budget 2025

Tue, 25 Mar 2025 23:54:47 GMT

The 2025 Federal Budget was handed down on 25 March. Here's what it says.

Income Tax Cuts

If Labor is re-elected, they will cut the tax rate on income earned between $18,201 and $45,000 from 16 per cent to 15 per cent from 1 July 2026, and will reduce it even further to 14 per cent from July 2027.

Anyone earning more than $45,000 per year will save $268 in the first year and $536 a year from year two onwards.

The opposition has announced they will not enact this measure if they’re elected.

Medicare Levy Low Income Threshold

The level at which people start to pay the Medicare Levy will be updated as follows for the 2025 income year.

Tax Practitioners Board

The government has included spending to strengthen sactions and modernise the registration framework for Tax Practitioners.

ATO Funding

The ATO will receive $999 million to extend two important tax compliance programs

Shadow Economy Compliance Program; and
Personal Income Tax Compliance Program

Cutting Student Loans

A one-off move to slash student debts by 20 per cent has been funded in the budget at a cost of $738 million over four years.

The income level at which loans will need to start being repaid will also increase from $54,435 in 2025 to $67,000 in 2026.

However, the debt relief is subject to legislation being passed that won't be introduced until after the federal election.

That also means it is contingent on a Labor election win.

The government says the measure would wipe $5,520 from the average higher-education loan.

This move is in addition to the rececnt reforms to the way student loans are indexed.

Power Bill Relief

The government will extend rebates on electricity bills by six months, providing another $150 cut to power bills for households and small businesses.

The rebates will be automatically applied to every household and about 1 million small businesses from July 1, and applied over two quarterly instalments.

Treasury estimates that cost-of-living relief will directly reduce headline inflation by about half a percentage point in 2025, and household bills by 7.5 per cent on average.

Expanded Help To Buy for First Home Owners

The Help to Buy scheme legislated last year will be expanded to allow more people to co-purchase a home with the federal government.

Single people earning up to $100,000 and couples earning up to $160,000 will be able to use the scheme to buy a home, with the government covering up to 40 per cent of the cost and taking a portion of the home's equity.

Owners can then buy out the government's stake over time.

The cap on eligible properties will also be lifted, with price limits dependent on the state and whether the property is in a capital city or elsewhere.

Restricting Foreign Ownership of Housing

Overseas citizens will be banned from buying existing houses in Australia for two years from next month.

On top of that, the government will spend $5.7 million to enforce the ban and another $8.9 million on an audit of land-banking by foreign buyers.

There are some exceptions to the ban for investments that significantly ramp up housing supply or support its availability.

The government committed to this measure to match an election promise made by the Coalition seeking to relieve some pressure on the housing market.

Switching Jobs

The government will ban non-compete clauses for workers earning less than $175,000, meaning they will be free to move to a competing business or start their own.

Non-compete clauses can suppress wages, the government says, and are being used across sectors including child care, construction and hairdressing.

The government has also vowed to close loopholes that allow business to fix wages and issue "no poach" agreements.

Update to Child Care

Three days of subsidised care will be made available to all families earning less than $533,000, replacing the existing "activity test" for those days of care.

It means parents will no longer have to work, study or be looking for work for at least 16 hours each fortnight to access childcare subsidies.

The measure was a Labor election commitment but was brought forward and passed through parliament last month. It will begin in January 2026.

Pharmaceutical Benefits Scheme

The government will fund a further reduction in the price of PBS-listed medications, cutting the cost of a script from $31.60 to $25 from the start of next year.

The price of a script for concession card holders will remain unchanged at $7.70.

Additionally, the government will spend just over half a billion dollars across five years to shore up the supplies of medicines under a pharmaceutical wholesalers agreement.

Do You Have Direct Debits and Online Payments Set Up for Your Business?

Mon, 03 Mar 2025 04:11:41 GMT

Do you have direct debits and online payments set up to make it easy for your customers to pay you? Talk to us today about implementing online payment systems to reduce admin time, improve the accuracy of your accounts and get paid quicker.

Do you have direct debits and online payments set up for your business? Making it easy for your customers to pay you is vital to business success. Getting direct debits and alternative payment methods linked to your business is so easy these days there's no excuse not to give your customers multiple ways of making payment.

Many service-based businesses choose direct debit arrangements with their clients to avoid late payment. If you’re often chasing overdue payments, consider implementing direct debit arrangements to reduce your administration time.

If you’re already using online accounting software, check the add-on solutions and choose one that integrates with your accounts. This means the payment platform information feeds directly into your accounting software to be easily matched to customer transactions.

Make it Easy

You probably already have bank transfer information set up, but adding several other methods such as PayPal, debit cards, and credit cards allows customers to choose the method most convenient for them. Many customers appreciate the automation and simplicity of direct debits. Make sure your payment terms and conditions are clear on your website and invoices and don't forget to include all your chosen payment methods for customers!

Worried About Costly Fees?

You have the option to choose whether you will absorb the cost of the payment gateway processing fees or whether you will add the cost to your invoice and charge clients extra. Your accounting software will then allocate the funds accordingly to invoice payment and fees received.

Better Transaction Recording

When you integrate direct debits and online payment methods with your accounting system, you dramatically reduce errors in recording customer payments – which means less time spent on your accounts!

Not Sure Where to Start?

Taking on the family business legacy: becoming the successor.

Mon, 03 Mar 2025 04:11:38 GMT

Becoming the successor to the family business is an honour – but it can also be a daunting role to take on. We’ve summarised five of the core skills you need as the head of the business.

Becoming the successor to the family business is a genuine honour. But taking over control of the family legacy, and taking the business to new heights, can be daunting.

The older generation has been the curator of this business for years and will want to pass the company on to a trusted pair of hands – someone who can continue their hard work.

But what are the key skills you need as the new leader of the business?

You may already be fundamental to the operation of your family business. Or you may be returning to the company after a period in industry, or pursuing other life goals. Whatever your experience, it’s important to hone your skills, so you’re ready to take on the role.

We’ve outlined five of the most important skills and capabilities you’ll need as the leader of the family business:

A deep understanding of the business.

As the head of the company, you’ll need to have a real grasp of the inner workings of the whole business. That means getting acquainted with the company’s everyday operations, finances, sales, marketing and the overall competitive and economic landscape that you’re trading in.

Leadership skills and the ability to develop.

You’re the boss now, so that’s going to mean developing some strong leadership. Learning these interpersonal and motivational skills will be critical when you’re managing internal teams, making decisions with your management team and board, and navigating the challenges that every business faces.

A clear focus on building good relationships.

Good business is always based on solid, trusted relationships. It’s important to nurture these key relationships, whether it’s with your family members, employees, customers or suppliers. Be open, honest and transparent with all your stakeholders to promote the best long-term relationships.

An eye for strategy and business planning.

You’re the person leading the business now, and that includes being the strategic thinker behind the company’s future direction. Think carefully about your goals for the company and create a clear vision for the business's future, with a strategic plan to guide your next steps.

Excellent financial management skills.

Cash is king, so being in control of your finances is a must. Getting to grips with the financial aspects of the business may not seem that exciting, but being in control of budgeting, cashflow and profitability is a key driver to making the company successful in the mid-to-long term.

Talk to us about getting ready to take over the family business

You’ll want to do the family proud and be the best head of the business you can. But you can’t do that alone. It’s invaluable to have the best advice, support and guidance along the way.

Talk to our team about developing your skills as a business leader, setting the best goals for the family business and putting some strategic thinking behind your future plans.

When should your business be passed to the next generation?

Mon, 03 Mar 2025 04:11:35 GMT

You may be ready to hand your family business onto the next generation. But what’s the best time to initiate this transition from one generation to the next. We have the lowdown.

You’ve spent a lifetime building up your family business, growing the company and creating a lasting legacy for your nearest and dearest.

But all good things must come to an end, and at some point in the future you’ll need to hand the business over to the next generation.

What are the signs that it’s time to step down? And what’s the best time to put your succession plan into action and to pass the reins to your successor?

Stepping back from the business and starting a new life in retirement, or working on a new business idea, probably sounds enticing. But it’s important to have a clear succession plan in place and to pass on the business at the right time.

Here are five options for when the time is right to step back:

When you, the founder are ready.

Your own readiness to step back from the day-to-day operations of the family business is a crucial factor. You need to feel ready to hand over control, be confident in your successor and have a clear understanding of your future role. Will you exit completely, or stay on as an adviser, or board member?

When your successor is ready.

Your chosen successor also needs to be ready. It’s vital for your successor to have the necessary skills, experience and commitment to lead the business. They should also be prepared to take on the responsibilities and challenges of running a family business, through good times and bad.

When the business is looking stable.

Change can be a challenge in any business, so it’s important to initiate this change of leadership when the company is looking strong and stable. This gives you the foundations for a successful transition. Make sure the business is in good financial health, has a strong customer base, and that your market position is looking favourable compared to your close competitors.

When the timing and conditions are right.

Handing the business over during tough market conditions is not advisable. Evaluate external factors such as economic conditions, industry trends and family circumstances and think about whether now is a good time for the transition – or whether it’s better to wait and ride out the storm.

When you have a clear succession plan in place.

A transition from one generation to the other is a complex and often challenging process. There’s real value to having a well-crafted succession plan in place. This plan will outline the transition process, roles and responsibilities, ownership structures and will ensure a smooth transfer of power.

Ending your own personal journey with your family business is a momentous step, and a transfer of power that will run far more smoothly with plenty of pre-planning.

Talk to our team to discuss your plans for the future, your hopes for the business and the key elements that should be included in your exit strategy and succession planning.

How to keep your small construction company on track

Mon, 03 Mar 2025 04:11:29 GMT

The Aussie construction industry is facing a growing number of business failures. But don’t worry. We’ve set out seven key ways to keep your small construction business on track.

Times are tough in the Aussie construction industry, with rising costs, a lack of labour and a challenging economic climate. This is leading to a rising number of business failures.

About 1,400 construction firms filed for bankruptcy in the second half of 2023, according to a recent article from Inside Business .

And it’s not just financial challenges that sole traders and contractors are facing. There’s also the stress of the physical and mental pressure of running your own construction business.

So, what can you do to keep your small construction company on track?

As a contractor, it’s hard work balancing your on-site time against the administrative and business-focused time that’s needed to keep your company fit and healthy.

But without a razor-sharp focus on cash, business development, profit margins and your own wellbeing, the business is liable to flounder – making business failure a possibility.

To stop this, here are seven ways to keep your construction business healthy:

Avoid working with just one customer.

Putting all your eggs in one basket is a risky move, so look into working with a varied mix of big and small clients to spread that risk. Even if you lose a few clients, you’re still left with a viable income stream.

Diversify your revenue streams.

If all your income comes from one service, it’s time to diversify! Consider moving into new services or project areas, giving you multiple revenue streams and reducing your reliance on one source of income.

Optimise your cost management.

The major upfront costs and slow payment times in construction can make it difficult to keep cash in a positive position. Rising costs for raw materials are also a major headache. So, now’s a good time to explore strategies to reduce your overheads and negotiate better deals with your suppliers.

Build strong relationships.

Stable, long-term customer relationships are crucial to your success. So put some real effort into nurturing partnerships with customers and suppliers, so you have a secure pipeline of projects and reliable supply chains.

Make good use of technology.

If you can automate an administrative process, automate it! Use the latest AI business tools to automate the answering of your business phone, the booking of customer appointments and the chasing of outstanding payments etc. Using digital tools helps improve your efficiency and can also cut your costs too.

Utilise the available government support.

The Government wants construction to flourish, so it’s important to be aware of the available government grants, subsidies or tax incentives that can ease your financial pressures and help you to grow and prosper.

Take good care of yourself.

It’s crucial to not take on more work than you can handle. As with any industry, you need time away from work. Overworking and spending every waking hour on the business can be counterproductive.

Talk to us about making your construction business a success story

The construction industry is facing hard times: that’s the reality in the current market. But with careful planning, management and strategic thinking, you can overcome the challenges.

Talk to our team about managing your cashflow, cutting costs and coming up with a long-term strategy that plays to your strengths. We’re always here to help.

Happy Holidays!

Mon, 25 Nov 2024 03:08:42 GMT

Happy Holidays to our valued clients. We wish you health, happiness, and new beginnings for the year ahead.

We wish you a very happy Holiday and well deserved end-of-year break.

We are grateful for the opportunity to work with you and be a part of your continued prosperity.

It has been another year of hard work for our clients. We hope you will be able to take some time over the Holidays to connect with family and friends to recharge and relax.

Our office will be closing at 5pm on Friday 13 December and reopening 9am on Monday 6 January .

From your partners at Haslam Consulting & Accounting

Is your business model still fit for purpose in 2024?

Mon, 25 Nov 2024 02:41:00 GMT

Is your business model still fit for purpose in 2024? We’ve picked out five of the key threats that should be on your small business radar.

Is your business model as solid and future-proof as you think it is?

Small businesses face a number of challenges in 2024 , with the business environment, globalisation, technological change and difficult economic conditions all playing a part.

So, is your business ready to pivot and embrace the future?Or could the viability of your business soon disappear (along with your legacy)?

5 threats that could hinder your business.

You’ve built up a successful business. Your sales and revenue are ticking over nicely. And you’re looking ahead to selling up or retiring from the rat race.

But this idyllic situation might be challenged if your underlying business model, strategy and operational infrastructure don’t keep pace with the changing business landscape.

Let’s take a look at five key threats that should be on your radar.

Increased competition from disruptors.

Existing competitors and new, disruptive market entrants can start nipping at your heels. If their strategies are more innovative and efficient, that could quickly erode your market share.

Rapid advances in technology and AI.

Cloud software, automation and AI-driven processes are increasingly the norm. If you fail to keep up with these new technologies , your competitiveness will suffer and your model could become obsolete overnight.

Changing consumer preferences and expectations.

Customers' tastes and behaviours change quickly . The move to online shopping, eCommerce and self-service customer interactions may render your existing products or services less relevant.

Economic uncertainty and high inflation.

We live in turbulent economic times , with high inflation, rising costs and poor cashflow for many. If customers tighten their belts, demand for your products and services can dwindle, damaging your revenue and profits.

Regulatory changes and compliance duties.

Pressures on the current government can lead to heightened regulation and changes to taxation etc. Complying with new regulations can add to your compliance workload and bring additional costs.

Talk to us about reviewing your current business strategy.

It’s easy to discount the need for innovation and change in your business strategy and plan. But learning to evolve and pivot is vital for your company’s prosperity.

We’ll work with you to review your current business strategy and to assess the potential impacts of external threats.

Automation can ease your business workload

Mon, 25 Nov 2024 02:40:57 GMT

Are you drowning in business admin? Automation is the answer. We’ll help you identify automation opportunities and choose the best apps to drive an efficient business.

The average business owner needs an additional four hours in their working day to complete their admin, according to recent research by OnePoll.

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.

Core processes that will benefit from automation include:

Automated bookkeeping – Simply take a photo of your receipts, expenses and invoices and ‘optical character recognition’ (OCR) technology will digitise the output and pull it through to your accounts software. No data entry, no human error and no lost receipts! We can do the rest to ensure your records are accurate.
Automated credit control – chasing up debts and late-paying customers takes time. Automated credit control apps track your debtor numbers and automatically sends out customised chaser emails as soon as an invoice is late. This reduces your credit control time, speeds up cash collection and cuts your aged debtor figure.
Automated payment collection – the easier it is to pay you, the faster your customers will pay. Automated card payments and cloud-based Direct Debit solutions allow you to automatically take payment from a customer as soon as an invoice is due. Some solutions will even automate the invoice matching and bank reconciliation process.
Automated reporting and forecasting – the better your reporting and business intelligence, the easier it is to make informed decisions about your company strategy. Accounting platforms and fintech tools now offer automatic, real-time reporting and forecasting, giving you access to the important numbers and metrics, fast.
Automated digital marketing – digital marketing is key to raising your brand’s profile. Marketing platforms offer important time-saving ways to create, schedule and post social media content, or email automations to send a pre-programmed cadence of emails to specific target audiences within your wider customer base.

Talk to us about embracing the power of automation

Five ways to beat the current talent shortage.

Mon, 25 Nov 2024 02:40:53 GMT

57% of Aussie small businesses are worried about a lack of talent. We’ve shared five key ways to beat the talent shortage and find the workers and key players you need to succeed.

When you can’t find the talent you need, that can place some severe limitations on the operational capabilities and growth potential of your business.

Difficulties in hiring the right staff was the second biggest concern for business owners in the recent Small Business Conditions Survey 2024 from the Australian Chamber of Commerce & Industry (ACCI). 57% of respondents said that a lack of skills and worker shortages are a significant issue for their business.

So, how do you overcome this talent shortage and find the people you need?

How to find the talent your business needs to grow.

Bringing a stable pipeline of talented people in the business is crucial for your success. But in the current climate that’s not easy. Here are five tips for finding the talent you need and filling the important roles in your company structure:

Upskill your existing employees.

Instead of hiring externally, think about investing in training programs to provide upskilling opportunities for your current employees. Pairing experienced employees with newer team members can help to promote knowledge sharing, skill development and mentorship for your ambitious employees.

Make good use of technology and automation.

Where possible, use technology to automate repetitive, menial tasks. This gets the low-level work done while freeing up your employees' time to concentrate on high-level strategic work. Tech can also allow your team to work remotely, from other locations, opening up your talent pool.

Rethink your hiring strategy.

Focus on skills, not experience, when looking for new talent. Look for candidates with the necessary skill set and think about hiring non-traditional candidates from diverse backgrounds, including recent graduates, retirees, people with disabilities and those that challenge your current demographics.

Offer competitive benefits and salaries.

Employees have high expectations. So, it’s important to offer flexible working arrangements, options for remote/hybrid working and a benefits package that meets their needs. Employee perks like health insurance cover, enhanced contributions to super plans and professional development opportunities make a big difference when potential employees are sizing you up as an employer.

Create an attractive brand as an employer.

Having a positive, ambitious and transparent company culture can help you attract similarly minded talent. Walk it like you talk it and recognise and reward employees for their contributions, hard work and new ideas. A strong online, social media and marketing presence is also vital to showcase why your company is different and the value you offer to staff.

Talk to us about reviewing your talent strategy.

If you’re struggling to source the best talent, it might be time for a review of your talent strategy. Talk to our team about ways to revitalise your hiring strategy and fill those empty roles.

Key ways to overcome rising costs and expenses

Mon, 25 Nov 2024 02:40:51 GMT

We live in uncertain economic times, with operating costs still on the rise. But by focusing on cost-reduction and revenue-generation, you can protect your business from the worst effects.

A recent survey showed that 32 per cent of Australian businesses list increased operating costs among their top three concerns. And rising costs can have a significant impact on your cashflow and bottom line.

So, what can you do to minimise the impact of sky-rocketing costs in your business?

7 ways to reduce your expenses and boost revenue

When costs are rising and profit margins are falling, that’s bad news for the financial health of your business. But there are ways to combat this scenario.

In short, you have two main tactics to kick into gear. You can either look at cost-cutting across all your operating expenses, or you can find ways to sympathetically boost your revenue.

Strategies for cost reduction:

Streamline your operations - Look for any inefficiencies and find ways to streamline your processes and reduce the underlying costs. You can also use technology to automate key functions to add efficiency and reduce your underlying costs.

Negotiate with suppliers - Revisit your existing contracts with suppliers and negotiate better terms, while also being mindful of the suppliers own cashflow pressures. Looking for alternative suppliers or finding cost efficiencies by purchasing in bulk.

Reduce your energy consumption - Putting energy-saving measures in place, like LED lighting and energy-efficient equipment, is a move towards good sustainability, but can also help you save money. Considering renewable energy options can also help.

Manage inventory effectively- Keeping your inventory lean is a good way to optimise inventory levels and minimise your holding costs. Implementing a just-in-time inventory management cuts costs while keeping you ready to service customer needs.

Strategies for increasing revenue:

Expand your customer base - A broader customer base helps to bring in more sales and revenue. Explore the potential for entering new markets or customer segments, and boost ecommerce and digital marketing to sell more online.

Raise your prices strategically - Think about the demand for your products/services in the market and revise your pricing to keep it competitive. Be sure to communicate any price increases sympathetically to customers, so you don’t damage customer loyalty.

Introduce new products or services - If your current products/services are not selling, it could be time to diversify your offering to meet changing customer needs. Make the most of your existing resources and expertise to bring new products to market.

There’s no magic wand that can make the current economic pressures disappear. But by being proactive about your cost-reduction and revenue-generation, you can do your best to protect your business from the worst elements of increasing costs and an uncertain market.

We’ll help you review your current financial and business strategies to look for the best possible opportunities, whether it’s better cashflow management, cost-cutting or revenue generation. Get in touch today.

Understanding your revenue drivers

Mon, 25 Nov 2024 02:26:20 GMT

How well do you understand what drives your business revenue? We can help you review your numbers, identify your revenue drivers, and what could help grow your total revenue as a company.

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, changed consumer buying and higher inflation, all this impacts 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’re focusing on the business areas that deliver maximum revenue.

Import areas to consider will include:

Revenue channels – where does your revenue actually come from? Do you create income from online sales and ecommerce, through retail sales in bricks and mortar stores, or through wholesales to other businesses? You may focus on just one of these channels, or it could be that you use a mixture of two, three or more.
Revenue streams – your total revenue will be made up of a number of different ‘streams’ So, you might be a coffee shop, whose revenue streams include coffee sales, cake and pastry sales and lunch sales. Knowing which revenue streams you rely on, which are most productive and what return they are delivering allows you to make decisions. If 80% of your income comes from 20% of your products, perhaps you need to tighten up your product range and ditch some of the poor sellers. If you’re selling more services to one particular industry, perhaps you should focus more marketing in this specific niche, or downscale your sales activity in less profitable niches.
Product/service split – Do you know which products/services are the most profitable in the business? Which products/services have been resilient to market changes (giving you some revenue stability) and which have adapted well to change? The more you can dive into your metrics and find the most productive and adaptable products and services, the greater your ability is to provide constant and evolving revenue for the business.
Value vs volume – Is your revenue based on selling a high volume of products/services at low margin, or low volume at a high margin? Based on this, can you move your margin down to create a more attractive price point (and more value for customers)? Or are their ways to push volume up, shifting more units and boosting total revenue? By diversifying into new channels, new streams or new products/services you can aim to balance value and volume to create brand new sales – and higher revenue levels.

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’ll 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.

Your employees now have the right to disconnect

Mon, 25 Nov 2024 02:26:18 GMT

Did you know your employees now have a legal ‘right to disconnect’ from after-hours work calls and emails? Here’s what that means for your team communications.

As an employer, it’s reasonable to expect that you can occasionally contact your employees outside of normal hours. When a project deadline is near, an unexpected issue comes up, or there’s an emergency situation, out-of-hours contact is a usual expectation.

But in an increasingly online world, many employees feel like they are on a 'digital leash', where they are contactable around the clock via phone, email and instant messaging etc.

New legislation from the Australian Government now gives employees in non-small businesses the ‘right to disconnect’ – but what does this mean for your team communications?

How does the ‘ right to disconnect ’ affect your team communications?

In essence, your employees have a legal right to disconnect from work communications, after their usual working hours have finished. This doesn’t directly prevent you from contacting an employee, but it does give your team member the right to refuse to have the conversation.

It’s worth noting that this legislation applies to ‘non-small businesses’, where the company has 15 members of staff or more. This excludes smaller and micro businesses.

Talk to us about the new right to disconnect.

For an average-sized business with 15+ employees it’s important to have discussions about where and when it’s appropriate to contact your team outside of their usual working hours.

You can find out more about the right to disconnect on the Fair Work Ombudsman site here .

The value of cashflow forecasting for your business

Mon, 25 Nov 2024 02:26:14 GMT

A business cash flow forecast will give you vital business intelligence to help you scenario-plan, search for cost-savings and look for strategies that will preserve your cashflow position. Let's talk.

Projecting your cashflow pipeline forwards is vital.

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

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

Run regular forecasts – The financial landscape is changing on a daily basis at present. A cashflow forecast is not a document that remains static. Variables and external drivers are literally changing each day, so it’s vital that you run frequent forecasts and react swiftly to any projected cash issues as they become apparent.
Use the latest cashflow forecasting apps – cashflow forecasting apps, like Fluidly, Float, Futrli Predict or Fathom integrate with your accounting software. They give a drilled-down view of how your cash inflows and outflows will pan out over the coming months – information that will inform and justify the decisions you make during these extremely challenging times.
Explore the right revenue streams – most sectors will have seen their sales change over the last 18 months. To overcome this, there’s a real imperative to explore revenue streams and new opportunities for income. This could be offering a new product or service, or working with a new partner. The idea is to find ways to increase the money that’s coming in the door and balance out your unavoidable expenses.
Get proactive with cost-cutting – if you can reduce cash outflows to a minimum, that will have a real impact on the health of your future cashflow. Pare back your operations and aim to reduce things like unnecessary software subscriptions, or over-ordering of basic supplies. Negotiating cheaper rates with suppliers, if possible, will also help.
Review your staffing needs – it's never great to make anyone redundant, but you can also look at ways to reduce the costs of staffing and resourcing without getting rid of staff completely. Reducing working hours or redeploying staff in different roles are all options that reduce payroll costs, while also looking after your staff.
Run a variety of scenarios – changing the financial drivers in your forecast model allows you to scenario-plan different strategies and options. Many of these will be in a long-term plan once conditions improve. Scenario-planning lets you answer questions and will give you some hard evidence on which to base your decision-making and strategic outlook over the coming months.
Look at various ways to access funding – if forecasts show a giant cashflow hole coming up, you’re going to need additional funding to get through this crisis. We can assist your business to investigate funding opportunities from grants, banks, loan providers, alternative lenders and crowd-sourcing funders.

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.

The ATO's top tips for running a small business.

Mon, 25 Nov 2024 02:26:12 GMT

Did you know the ATO has a small business portal with heaps of handy advice on managing your business taxes? We’ve highlighted six of the most popular courses.

Super clearing house end-of-year key dates

Mon, 25 Nov 2024 02:26:01 GMT

Take note of the ATO annual office shutdown dates that impact the Small Business Superannuation Clearing House.

As we approach the annual office shutdown, these are the key dates you need to be aware of for the Small Business Superannuation Clearing House (SBSCH):

5:30 pm AEDT on 10 December 2024 - all super payments with instructions received after close of business on this date will be processed from 2 January 2025
28 January 2025 - super guarantee quarterly payments are due.

The ATO office and contact centres will close at noon Tuesday 24 December 2024 and re-open at 8:00 am Thursday 2 January 2025, local time.

For the latest information about the SBSCH and ATO Online system maintenance schedule, please check SBSCH system status and system maintenance .

Your public company now needs a ‘consolidated entity disclosure statement'

Mon, 28 Oct 2024 01:16:36 GMT

Running an Australian public company? It’s now mandatory for you to submit a consolidated entity disclosure statement (CEDS) with your annual financial report. We’ve got the lowdown.

Public companies must now submit a ‘consolidated entity disclosure statement’ on an annual basis, giving details of all entities within your listed or unlisted company.

As announced by the Treasury on 5 July 2024, ‘as part of the Australian Government’s focus on tax integrity and transparency, all public companies (that is, companies which are open to investment by the public) are now required to include a ‘consolidated entity disclosure statement’ in their annual financial reports’.

What’s required in this consolidated entity disclosure statement.

As of July 2024, all Australian public companies must now submit a consolidated entity disclosure statement (CEDS) along with their annual financial report.

The Corporations Act has been amended, in line with the new Treasury Laws Amendment (Making Multinationals Pay Their Fair Share – Integrity and Transparency) Act 2024. This amendment now requires both listed and unlisted Australian public companies to disclose information about subsidiaries in the company’s annual financial reports.

The requirement for a CEDS statement applies to each financial year commencing on or after 1 July 2023, so applied for the first time on 30 June 2024.

An Australian public company’s annual financial report must now include a CEDS statement, which either:

Discloses details of each entity within the company’s consolidated group, if the accounting standards require the company to prepare consolidated financial statements, or
If the accounting standards do not require the company to prepare consolidated financial statements, a statement to that effect.

Talk to us about complying with the CEDS requirements

You can find out more detail on the requirements of a consolidated entity disclosure statement in this statement from the Australian Securities & Investments Commission (ASIC).

If you’re concerned about the impact of CEDS for your public company, please do contact us . We’ll be happy to run you through the new requirements and the additional information that will be required in your next annual financial report.

Measuring the health of your business with ratio measures

Mon, 28 Oct 2024 01:16:34 GMT

There are some quick ratios that will help you 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 if cashflow gets tight.

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 able 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

Debt 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.

Are you meeting your SMSF governance requirements?

Mon, 28 Oct 2024 01:16:24 GMT

If you’re thinking about setting up a self-managed superannuation fund, here are five key areas to be aware of when managing your fund.

Opting for a self-managed superannuation fund (SMSF) may give you more control over your investment strategy and allow you to be more agile as a fund in the market. But are you fully aware of the governance and compliance responsibilities of running an SMSF?

Let’s take a look at the main areas you should be focusing on as a fund trustee.

Five key areas when managing your SMSF

The members of your SMSF run the super fund themselves, as the name suggests. So, it’s vital that you’re on top of the responsibilities of managing the fund.

This means having a good overview of:

Compliance and governance

You’ll need to understand and fulfill your responsibilities as trustees, ensure the fund meets the sole purpose test, maintain up-to-date trust deeds and an investment strategy.

You must also comply with all ATO administrative and reporting requirements and arrange annual independent audits.

Investment strategy and performance

You must develop and regularly review a comprehensive investment strategy for the fund and ensure your investments align with the fund's objectives and risk profile. You’ll also need to diversify your investments appropriately and monitor and evaluate investment performance, as well as remaining within the in-house asset limits (generally 5% of total fund assets).

Contributions and Benefits

It’s vital that you understand and adhere to contribution caps (both concessional and non-concessional) and manage the timing and amount of contributions strategically. You also need to ensure that all contributions are properly recorded and reported, that you understand the preservation rules and conditions of release, and that you manage benefit payments in compliance with the regulations.

Record Keeping and Reporting

It’s important to maintain accurate and detailed records of all transactions and keep minutes of all investment decisions and trustee meetings. You’ll need to prepare and lodge annual tax returns and member contributions statements and value the funds assets regularly. All relevant documents must be kept for the required period (usually 5-10 years).

Separation of business and SMSF assets – a key part of your responsibilities is to maintain clear separation between personal, business and SMSF assets. All transactions between the business and SMSF must be made at arm's length and you should be cautious when considering using the SMSF to purchase business property.

Talk to us about your SMSF concerns

If you’re thinking of setting up an SMSF, or are already managing one, it’s best to get regular professional advice throughout the life of the superannuation fund.

We can advise you on record-keeping, accounting and the tax implications. And we can connect you with superannuation experts and financial advisers when you have questions about your investment strategy, or deeper questions regarding the management of the SMSF.

Should you buy or lease your business assets?

Mon, 28 Oct 2024 01:16:16 GMT

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

First of all, let’s look at why you might decide to buy the item…

Buying - the pros and cons:

Pro: It’s a tangible asset – when you buy an item, you own the item outright and it will appear on your balance sheet as one your business assets. As such, by owning these assets outright you increase the perceived capital and value of your business. You can also claim the cost of the asset against your capital allowance for tax purposes.
Pro: It’s yours for the life of the asset – once you own the item, you have full use of the equipment for the duration of the life of the asset. Your use of the asset isn’t reliant on you being able to keep up regular lease payments, and if your financial circumstances change then you can sell the asset to free up the capital.
Con: It’s an expensive outlay – paying for the item up-front is a large outlay for the business and will require you having the cash to cover this cost. Spending a large lump sum in this way may take cash away from other areas of the business, so you need to be 100% sure that this purchase is the right decision and a sound investment.
Con: You may require extra funding – if you don’t have the liquid cash available to buy the item outright, you may need to take out a loan. Asset finance is available from funding providers, but does tie you into a loan agreement that will add to your liabilities as a business – reducing your worth on the balance sheet.

Leasing - the pros and cons:

Pro: Leasing has a cheaper entry point – if the item you need to purchase has a large price tag, leasing allows you to make use of the asset without the cost of buying it in full. For start-ups and smaller businesses with minimal capital behind them, this can make leasing a very attractive option. You may not own the asset, but you can make use of it – and this may be the difference between the success or failure of your business.
Pro: You can spread the cost – there is still an associated cost of leasing, but you can spread the cost over a longer period, making it easier to find the necessary liquid cash to meet your lease payments. With this money saved, you can then invest in other areas of the business, helping you to expand, grow and bring in more customers and revenue.
Con: You don’t own the asset – there are different types of leasing agreement. Under a capital lease, you do own the asset (once you’ve paid if off). But if you opt for an operating lease, this is a more short-term lease and you won’t own the asset at the end of the contract. Ownership does have its advantages (including being able to sell off the asset if required) so it’s important to consider what kind of leasing agreement you’re entering into and what the advantages/disadvantages may be.
Con: You may pay more in the long run – most leasing agreements will attract additional costs and interest on your agreement, so you may well end up paying more than the market price for your asset in the long term. If you can cope with the higher cost, this is fine, but bear in mind that buying outright may have offered greater value.
Con: You may lose the use of the asset – if you can’t keep up your lease payments (due to poor cashflow for example) then the owner of the lease agreement may recall the asset. If this item is crucial to your business model, losing this key asset can have a profound impact on your ability to operate. In this respect, leasing is a more risky prospect, but also an easier option for businesses with less cash to splash.

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’ll 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 your business.

myGovID is changing to myID

Wed, 16 Oct 2024 06:24:57 GMT

Soon, myGovID will be changing to myID. The app will have a new name and new look, but you’ll continue to use it in the same way.

What you need to know:

There’s nothing you need to do to prepare for the change. You’ll still have:

your same details – there’s no need to set up a new myID. Your login details (including email address) and the identity strength you’ve set up on your device, and any other devices, will remain the same
continued use – your existing app should automatically update to myID or you can manually update it from the App Store or Google Play. You can download the myID app any time once it’s available
access to services – you can still use the app to securely access a range of government online services (find out where to use it ).

When the change happens, you might see both myID and myGovID when using your app to log in to participating government online services. This won’t affect your access, and your Digital ID will remain fully functional and secure during this time.

Why the change:

The change from myGovID to myID aims to reduce the ongoing confusion between the myGovID app and myGov.

The new name for the Australian Government’s Digital ID app reflects the community’s understanding of Digital ID and demonstrates how a whole-of-government ID provider can help protect Australians from identity theft and fraud.

Avoid scams and fraudulent websites and apps

It is important to be aware of fraudulent websites, apps and phishing scams.

Scammers can make fake websites or apps that look just like myGovID or myID.

To help protect yourself:

don’t click on suspicious links, open attachments or download any files from suspicious emails or SMS; we will never send an unsolicited SMS that contains a hyperlink
only download the myGovID (soon myID) app from the official app stores (Google Play and the App Store).

The Australian Government takes your security and privacy seriously, putting security measures and features in place to protect you from scams and fraud. If you suspect any suspicious activity on your myGovID, report it immediately to our support line .

Find out how myGovID protects your identity, what you can do to manage the security of your myGovID and how to stay safe online.

Get in touch if you need any more assistance.

Getting your small business tax in order

Mon, 23 Sep 2024 01:35:00 GMT

It’s never too early to start planning for a smoother EOFY tax process. We’ve got some tips for sorting out your tax and making EOFY less of a headache next year.

With the 2023/24 financial year now wound up, it’s time to think about submitting your tax return and making sure you have the cash reserves put aside to pay the company’s tax bill.

This short guide to getting your small business tax in order gives you the lowdown on which end-of-financial-year (EOFY) taxes you’re liable for and what returns must be submitted.

We’ve also got some guidance on making EOFY less of a pain next time around.

What EOFY taxes must my business pay?

The taxes you pay and the returns you must submit will be defined by the type of trading business you are. To give you a broad idea, these are the main categories you’re likely to fall into as a small or medium-sized business:

Sole traders – if you’re set up as sole trader, you’ll need to lodge one individual tax return that covers both your business income and your personal income. Once submitted, the Australian Taxation Office (ATO) will work out how much tax you’re liable to pay and when it’s due.

Companies – if you’ve been incorporated as a company, you must lodge a company tax return and pay tax on the company’s income. If you’re a director in the company, you’ll still need to lodge your own individual tax return as well.

Partnerships – if you’re a partner in a partnership, the business will have its own tax file number (TFN) but won’t pay income tax on the profit it earns. Each partner must report their share of the partnership income in their own tax return. Your partnership must also lodge a separate partnership return under its own TFN.

Trusts – a trust has its own TFN and must lodge a trust income tax return.

Gathering all the necessary information and documents for your tax return can be a pain. But with a little pre-planning and investment in the latest accounting and bookkeeping technology, you can make the whole process much less of a headache.

Here are five sensible ways to make your EOFY tax easier:

Keep good records and invest in an automated bookkeeping platform, like Dext.

2. Use a document management system to easily locate every invoice and receipt.

3.Use cloud accounting and the built-in tax templates in platforms like Xero and MYOB.

4. Plan for your annual tax costs and put cash away so you can cover your tax expenses. Work closely with your accountant to create the most efficient accounting procedures.

Talk to us about improving your tax processes

If your EOFY tax was a mess this time around, it’s never too early to start planning for next year and getting your records, documents and accounts in order.

We can work with you to set up the most effective accounting systems, with clear processes, great record-keeping and easy access to all your documents.

Following up on invoice payment in a down economy

Mon, 23 Sep 2024 01:34:55 GMT

It can be challenging following up on payment of invoices when the economy has been down, but it is important to keep cash flowing into your business. As with all business dealings right now, there are tactics you can use to help.

It can feel challenging to chase up payment of invoices when the economy has been down, but it is important to keep cash flowing into your business so you can cover expenses and meet your obligations to others. As with all dealings in more difficult times, some empathy and a lot of open communication can go a long way.

The following tips are useful to keep in mind when asking for payment.

Communication - Connecting with your customers is important. Try to make it personal to their situation rather than a one-size-fits-all email. Connecting on a more personal level shows you value them and are conscious of the impacts that the current situation may be having on them. The empathy you show now will also be remembered when the economy recovers. Be proactive - early communication will help you stay on top of cash flow and will also alert you if you need to account for late payments.

Offer flexible payment options - for customers who can’t pay in full, consider breaking invoices into multiple payments with payment terms moved to a longer timeframe. Set up a credit card facility to give customers other options for payment. After all, the easier you can make it for them to pay you, the quicker you will get paid. If you don’t have payment services set up in your accounting software, we can help you do this. Offering a discount for early payment might provide the incentive, for customers who can settle, to pay your invoice before others.

Total Outstanding - Make sure you keep track of how much customers are in arrears. While you can continue to allow credit, you want to make sure you're not creating too much risk. Allowing continual extensions to payment while also letting more to be added to their total amount outstanding can create a cashflow crunch. Get in touch if you want help to better track your cash flow.

Keeping cash flow going is vital for your business so the earlier you communicate with customers the better.

Changes to Capital Gains Withholding tax

Mon, 23 Sep 2024 01:34:47 GMT

The withholding tax rate for the capital gains tax regime for non-residents is proposed to increase from 12.5 per cent to 15 per cent and the $750,000 property value threshold is proposed to be removed and reduced to nil.

Changes to foreign resident capital gains withholding tax rate and threshold.

What you need to know.

The regime currently applies to require a purchaser to withhold 12.5 per cent of the proceeds from a transaction where a non-resident vendor disposes of an asset that is taxable Australia property for $750,000 or more. The Exposure Draft legislation introduces measures previously announced by the Federal Government as part of its 2023-24 MYEFO to:

Increase in the FRCGW rate for relevant CGT assets from 12.5 per cent to 15 per cent

2. Remove the current $750,000 threshold before which withholding applies for transactions involving taxable Australian real property or an indirect Australian real property interest that causes a company title interest to arise.

These changes do not affect the exemption from FRCGW where a vendor obtain a clearance certificate from the Commissioner of Taxation that they are not a foreign resident or make a residency declaration or a declaration that the asset is a not an indirect Australian real property interest.

What is the expected impact of the proposed changes?

The government’s reasoning in increasing the FRCGW rate from 12.5 per cent to 15 per cent is that the current rate is not sufficient to recover capital gains especially given increases in property prices in recent years.

Removal of the $750,000 threshold will require a purchaser to withhold 15 per cent tax in relation to all transactions involving the disposal of TARP or IARPI unless the vendors provide an ATO clearance certificate or make a declaration confirming that they are not a foreign resident or, for indirect interests in TAP, a declaration that the indirect interests are not IARPI in respect of the transaction.

When are the proposed changes applicable?

The proposed changes, if enacted, will apply to CGT events occurring from the later of 1 January 2025 and the commencement date of the amending Bill.

How to use forecasts and scenario-planning

Mon, 23 Sep 2024 01:34:43 GMT

If you’re only looking back at historic numbers, you limit the insights you’ll gain. Forecasting highlights your future threats and opportunities – and creates a proactive strategy for the future of your business.

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, this limits the insights you can achieve for your business. With a backward-looking ideology, it becomes difficult to plan, run through different scenarios or understand the path of the business going forwards.

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-looking view of your business journey, you can see further down the road – and that helps to spot any opportunities and avoid common business pitfalls.

Forecasting adds value by:

Highlighting the data patterns – a forecasting tool takes your historic data and projects it forward in time. This helps you and your advisers spot patterns, trends, gaps and opportunities, revealing the true ‘story’ behind your business accounts. For example, forecasting may reveal a predicted seasonal slump in the next quarter, allowing you to plan ahead and proactively take action to minimise negative impacts.
Giving you a future view of your business – instinctively, business owners will look back at prior periods to assess performance. There’s value to reviewing your historic actuals, of course, but using forecasting helps you to look forward, rather than just backwards. Forecasting is the satnav, showing you the road ahead, rather than the rear-view mirror showing you the road you’ve already travelled.
Helping you scenario-plan – with a financial model of your key drivers, combined with accurate forecasting, you can quick answer your burning ‘What if…?’ questions. Forecasting lets you run different scenarios, with different drivers, to see how business decisions may pan out over time. If option B performs better than option A, that’s invaluable information when defining your next strategic move.
Making informed, evidence-based decisions – having ‘the full picture’ of combined historic numbers, forecasts and longer-term projections aides your business decision-making. Forecasting gives you solid evidence on which to base your strategy, and helps to red flag any threats that are looming on the horizon – giving you the best possible information to keep your executive team informed and on the ball.
A deeper relationship with your accountant – forecasting also helps us to get a far more granular view of your business. This helps to spot potential areas of performance improvement, and to give you the best possible strategic advice, all backed up by solid, empirical data and management information.

Talk to us about the benefits of forecasting

If you want to get in control of the destiny and results 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.

6 Powerful Reasons To Watch Your Financial Reports

Mon, 23 Sep 2024 01:34:33 GMT

Making time to look over your financial reports each month is an important task for any business owner. We can give you an overview of what reports you'll need to help you build a thriving business.

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

The Statement of Financial Performance – also known as the Profit and Loss report (P&L) or the Income Statement – tells you, as the name suggests, how your business is performing over a period of time, such as a month or a financial year. In broad terms it shows the revenue that your business has generated, less the expenses for that same period. In other words, it shows how profitable your business is.
The Statement of Financial Position – also known as the Balance Sheet shows the value of the business’s Assets, Liabilities and Equity.
Assets include things like money in bank accounts, Plant and Equipment, Accounts Receivable balances
Liabilities include things like Bank loans and credit cards, Accounts Payable, and Hire Purchase balances
Equity is the difference between your Assets and your Liabilities and includes Retained Earnings and Owner Funds Introduced
Accounts Receivable Ageing report (Aged Receivables) – this shows how much money is still owed to the business as at a certain date in time, and is usually segmented as to how overdue they are, or sometimes by how far past the invoice date they are. Generally, you will have Current, 30, 60 and 90 days columns.
Accounts Payable Ageing Report (Aged Payables) – this report shows who the business owes money to as at a certain date in time and, like the Accounts Receivable Ageing report, is usually segmented by overdue period.

So why bother?

Understand your business better - by looking at your Profit and Loss report monthly you will get a good picture of how your business is performing month by month and it gives you a better understanding of what makes up your profit. It can be helpful to compare periods, or to look at a month by month P&L, so you can clearly see on one page the revenue and expenses month by month. This also helps identify trends in your data and many also help to highlight anomalies in coding/categorising or unusual expenses or earnings.
Accurate information for lending purposes – If you are applying for a loan or an overdraft, the bank or financial institution will look closely at both your Profit and Loss report and the Balance Sheet as a lot can be learned about a business by looking at these reports together. If you are unsure what some of your balances are in your accounts, get in touch and we can explain them further.
Get paid quicker and reduce bad debts – by looking at your Accounts Receivable Aged Summary each month you can follow up with overdue accounts promptly which often results in getting paid quicker. The longer an overdue amount is left unpaid the higher the risk of it not being paid at all, so it is important to keep on top of this.
Better relationships with your suppliers – Assuming you are entering your supplier bills into your accounting software (recommended for most businesses to get an accurate profitability figure) your Aged Payables report will alert you to any unpaid or overdue amounts. Supplier relationships are an important aspect of your business and paying on time is crucial to maintaining those relationships.
Better cashflow – having an accurate understanding of how much money the business is owed, and how much money the business owes, can help with cashflow planning to ensure that there is enough money when needed. Additionally, understanding the trends of your business, its profitability drivers, its expenses, etc., can help to plan sales and marketing campaigns so that the revenue keeps coming in.
Better business decision making – Your financial reports tell the story of your business and it’s important that you understand the story that they are telling you. The better you understand what’s going on in your business the stronger position you will be in to make better business decisions that affect the profitability of your business and its financial viability.

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.

Questions for Business Success: Pricing

Thu, 15 Aug 2024 01:31:52 GMT

Since businesses have existed, these questions have perplexed their owners. Before AI, the internet and even electricity. Who's my ideal customer?

What makes my product or service attractive?

How should I be pricing my product or service?

In this series, we will see how three questions for business success are approached and provide some practical tools and techniques for the small and medium-sized enterprise owner to answer them.

Since businesses have been in existence, these questions have perplexed most of their owners. Before AI, before the internet and even before electricity.

Who is my ideal customer?

What makes my product or service attractive?

How should I be pricing my product or service?

An article in the NZ Herald from June 2024; Big Red, What went wrong for The Warehouse, highlighted the struggles of one of New Zealand’s most famous retail brands, The Warehouse. A senior analyst at investment house Forsyth Barr posed the question, “I don’t know if they [The Warehouse] know what they are and how they fit into the New Zealand retail landscape, or what they are going to compete on”. Another analyst, Greg Smith of Devon Funds Management, commented, “They need to recalibrate what is the value proposition”. For The Warehouse, which has used bargain prices as it’s core attraction, now has its competitors like Kmart dictating to Warehouse customers what a bargain actually is.

Given The Warehouse is a large, complex business in a highly competitive market, you might believe that it’s relevancy doesn’t apply to SME’s. But it does. No matter what size of business, the principles of success are all the same. Who are you selling to, why should they buy it and how much will they pay, are the foundations of success for global conglomerates through to food trucks. In fact, these questions are all linked and once you unlock the first two, then the third is much, much easier to answer.

In this series we will take a look at each of the three questions and shed some light on some approaches to get to the answers. This article looks at identifying pricing.

How should I be pricing my product or service?

We’ve all heard the stories about the person that worked in the retail store, misheard an instruction from the owner about pricing a clearance product, mistakenly priced it double and sold them all in a day. Pricing touches everything from your business finances to your product’s positioning in the market, with considerations like whether it’s a timeless, bespoke, or a short-lived trending product. It’s a key strategic decision you need to make for your business, and it can be just as much an art as it is a science.

But it’s not a decision you only get to make once.

For example, if you’re trying to find the retail price of your product, there is a relatively quick and straightforward way to set a starting price.

To set your first price, add up all of the costs involved in bringing your product to market, set your profit margin on top of those expenses, and there you have it. This strategy is called cost-plus pricing, and it’s one of the simplest ways to price your product.

Another way is to use your existing customers to give you insight into whether or not you can raise your prices. Start by testing a higher price to a small segment of your existing customers and see how they react. But before you can worry about choosing your product's sell price, there are a few other important things to consider.

An effective pricing strategy comes down to understanding your costs. If you order products, you’ll have a straightforward answer as to how much each unit costs you, which is your cost of goods sold.

If you make your products, you’ll need to dig a bit deeper and look at a bundle of your raw materials, labour costs, and overhead costs. How much does that bundle cost, and how many products can you create from it?

That will give you a rough estimate of your cost of goods sold per item. However, you shouldn’t forget the time you spend on your business is valuable, too.

To price your time, set an hourly rate you want to earn from your business, and then divide that by how many products you can make in that time. To set a sustainable price, make sure to incorporate the cost of your time as a variable product cost.

At the end of the day, the price you choose should be what your target customers will pay on a consistent basis.

Here’s a “back of the envelope” calculation you can do to sense check where you are. Once you’re ready to calculate a price, take your total variable costs and divide them by 1 minus your desired profit margin expressed as a decimal. For a 20% profit margin, that’s 0.2, so you’d divide your variable costs by 0.8.

Variable costs aren’t your only costs.

Fixed costs are the expenses that you’d pay no matter what, and that stays the same whether you sell 10 products or 1,000 products. They’re an important part of running your business, and the goal is that they’re covered by your product sales as well. When you’re picking a per-unit price, it can be tricky to figure out how your fixed costs fit in, which is why testing different price points is key.

Of course there’s a lot more to it and the variable and nuances can be many and varied - but the point is to not be initially distracted by that and just set a pricing benchmark that will allow you a “compass bearing” on whether you are heading in the right direction or not.

So, it goes to show that if you are struggling to answer the three questions or want to step back from the day to day for a minute to consider these questions - then it’s a good exercise. If a publicly listed company like The Warehouse is struggling to answer them, then you are not alone and shouldn’t see it as a problem but an opportunity to ensure your business has some of the fundamentals of success covered.

Questions for Business Success: Value Proposition

Thu, 15 Aug 2024 01:31:49 GMT

Since businesses have existed, these questions have perplexed their owners. Before AI, the internet and even electricity. Who's my ideal customer?

What makes my product or service attractive?

How should I be pricing my product or service?

In this series, we will see how three questions for business success are approached and provide some practical tools and techniques for the small to medium-sized enterprise owner to answer them.

Since businesses have been in existence, these questions that have perplexed most of their owners. Before AI, before the internet and even before electricity.

Who is my ideal customer?

What makes my product or service attractive?

How should I be pricing my product or service?

In this series we will take a look at each of the three questions and shed some light on some approaches to get to the answers. This article looks at identifying a value proposition.

What makes my product or service attractive - my Value Proposition?

Borrowing from the world of advertising, Rosser Reeves of US agency Ted Bates was the first to coin the single minded proposition phrase in his book Reality In Advertising back in 1961. He concluded that unless an ad (or any communication) had a core proposition at its heart, then what you are saying is a waste of both the readers and and the advertisers time.

A great value proposition should:

Be easy to understand for your target audience, something that resonates with them.
Communicate specific results that the target customer will get.
Explain how you're different from an alternative they might be considering.

A good value proposition has to be both relevant and compelling. Click bait is sometimes quite compelling but often not very relevant. Making you click, only to reveal that the compelling nature of the message is completely missing. Don’t be that person.

Good value propositions that find their way into the wider world can stem from:

The product: M&M’s: Melt in your mouth, not in your hands.
Service: Avis: We’re no 2, so we try harder.
Location: Disneyland, The happiest place on earth
Price: Walmart: Save money, live better.

So, how do you go about writing one for yourself?

Answering these questions is a good foundation:

What difficulty do you solve for your audience?
What do you do to solve it?
How does your product or service do it differently from other options out there?

To the extent you can, fight the temptation to break your business down into different product lines or services. Try to think about the big picture — your business as a whole. To write your value proposition, start by aiming to answer all of these questions in a single sentence. It may be a long sentence, but that's OK. Then start to reduce the longer sentence down to something short and punchy. A good test is to think of it as if it was the only piece of signage you could have that told people passing in the street what was good about your shop or office. What would it say?

Questions for Business Success: Ideal Customer

Thu, 15 Aug 2024 01:31:47 GMT

Since businesses have existed, these questions have perplexed their owners. Before AI, the internet and even electricity. Who's my ideal customer?

What makes my product or service attractive?

How should I be pricing my product or service?

In this series, we will see how three questions for business success are approached and provide some practical tools and techniques for the small to medium-sized enterprise owner to answer them.

Since businesses have been in existence, these questions have perplexed most of their owners. Before AI, before the internet and even before electricity.

Who is my ideal customer?

What makes my product or service attractive?

How should I be pricing my product or service?

An article in the NZ Herald from June 2024; Big Red, What went wrong for The Warehouse, highlighted the struggles of one of New Zealand’s most famous retail brands, The Warehouse. A senior analyst at investment house Forsyth Barr posed the question, “I don’t know if they [The Warehouse] know what they are and how they fit into the New Zealand retail landscape, or what they are going to compete on”. Another analyst, Greg Smith of Devon Funds Management, commented, “They need to recalibrate what is the value proposition”. For The Warehouse, which has used bargain prices as its core attraction, now has its competitors like Kmart dictating to Warehouse customers what a bargain actually is.

In this series we will take a look at each of the three questions and shed some light on some approaches to get to the answers. This article deals with the first question.

Who is my ideal customer - target audience?

Advertising copywriting icon, David Ogilvy, wrote about “man's unchanging needs”. What he meant by this was that no matter the time or circumstances, consumers had and were driven by, an unwavering set of needs. These needs for example, were about youthfulness in the beauty industry, safety and style for cars, refreshment for drinks, and security for banks. Some of Ogilvy’s ads for these products contain claims and descriptions that could have been written yesterday, rather than in the 1950’s.

It’s important to remember that a demographic never bought anything. People do. A requirement to understand who you are selling to as an actual person is vital to understanding how to pitch your product or service at them in a way that they identify with.

Gender, age and class form part but not the complete answer. A buyer's attitude to your sector, circumstances that might lead them to consider your product or service are the first steps to building a profile of your customer.

Think of your ideal customer as a person pen portrait. Like how a character would be described in a novel. What would they look like, where do they live, what would they drive, what would they wear? And more importantly, why would these things matter to them? And then, where does your product fit into their world and why? Are they suddenly different person when they purchase your product? Different attitudes and values?

Your typical customers might not be able to be contained in one person, as you might have a primary audience and a secondary customer. Write these portraits separately. Work out which is the larger of your audience and assign a rough percentage to what of your business they represent. Bring them to life. Make them real to you. Give them a name. Live with them in your mind for a few days. Imagine how they live. And again, imagine them making a decision to purchase a product or service from you or your sector. When you are making a decision you can now reference your customer portrait and ponder their likely reaction.

Yes, I get it - this might sound like a project out of high school and you are an adult running a business, but believe me, it works. Great brands throughout the years grew using this technique - why shouldn’t it work for you? So, it goes to show that if you are struggling to answer the three questions or want to step back from the day to day for a minute to consider these questions - then it’s a good exercise. If a publicly listed company like The Warehouse is struggling to answer them, then you are not alone and shouldn’t see it as a problem but an opportunity to ensure your business has some of the fundamentals of success covered.

Why productivity matters and what you can do about it

Thu, 15 Aug 2024 01:31:40 GMT

Productivity is a term associated with strong economies, robust businesses and efficiency gains of clever staff. If businesses were efficient then fewer would fail, generate more employment and better incomes for owners and workers alike.

Productivity is a term associated with strong economies, robust businesses and the efficiency gains of clever staff. If only businesses were efficient, then we would have fewer of them failing, more employment and better incomes for owners and workers alike.

In Australia, according to the Xero Small Business Insights special report, Small business productivity: Industry and Regional Trends 2023, the most productive Australian industry in 2023 was wholesale trade ($214.20/hour), while hospitality lagged at $40.20/hour.While a decline in productivity was experienced across all industries, 10 sectors, including manufacturing, agriculture and construction, surpassed the national productivity average ($100.30).Western Australia emerged as the most productive state ($102.50/hour), with average productivity 15% higher than Tasmania ($89.00/hour), the least productive state.

Unfortunately, not all businesses get to the heady heights of maximum productivity. Not for lack of will, it’s hard to take a step back from the day to day pressures of running a business to look objectively at what can be done better. Or as the common saying says …”When you are up to your ass in alligators it's difficult to remember that your initial objective was to drain the swamp”.

So, what actually is productivity?

Productivity measures how efficiently a business turns inputs into outputs. The more productive you are, the better you are at turning resources like labour, capital or materials into products (or services) you can sell.

Three general areas of productivity:

People productivity: How much work it takes to deliver products or services to customers. It’s commonly expressed as hours worked/dollars earned.

Financial productivity: How good a business is at monetising its investments in assets such as machinery. It will often be measured as the return on capital invested.

Materials productivity: How much a business spends on materials in order to generate sales. Materials can include things like inventory or energy.

Why productivity matters

Businesses with increased productivity get more from less. As a result, they have more potential to turn a profit, deal with inflation or slowdowns, and absorb price competition. After decades of continuous improvements, productivity gains are getting harder to come by. Small businesses have typically been thought to lag behind big businesses in productivity, but with the advent of many digital tools - access to productivity insights, tools and processes are now also available to smaller businesses.

How to increase productivity.

There are four commonly accepted ways to become more productive:

Better tools
Smarter methods
Skilled workers
Entrepreneurship mindset

1. Better work tools (capital)

Tools are made specifically to amplify the efforts of their users. So find the tools that’ll amplify your work.

Sometimes it might be as simple as a piece of software that cuts down the double-handling of information, like a booking system that schedules a job straight into your calendar or software that integrates with payment systems or point of sale.

Of course it costs money to upgrade work tools. Professor Marc Cowling of Oxford Brookes University has investigated why small business owners don’t (or can’t) make that investment. Here are his top five reasons:

Businesses aren’t sure how to prioritise: Small businesses have about six capital investment opportunities in mind at any one time, but they can’t back them all and don’t know how to choose.

It’s hard for them to see the value: Relatively few small businesses run a financial analysis to estimate the return on investment, so they struggle to justify making moves.

They’re risk averse: Most small businesses will only consider a capital investment if they guesstimate it’ll pay for itself within a couple of years. As a result, they tend to shy away from bigger projects that might have bigger impacts.

They can’t get loans: Cowling found that roughly a quarter of businesses have been denied a loan application. After receiving a knockback, it takes them up to four years to bother applying again. They need help building confident financial cases for investments.

Technology feels hard: Many business owners assume new equipment will be hard to learn, will chew up training budgets, and will clash with existing systems. They don’t have a solid ROI number in their head to counter these perceived hurdles.

2. Smarter methods (innovation)

Lots of businesses develop a certain way of doing things then never really think about it again. In the meantime, plenty of other things change and the original processes and procedures become less and less effective (if they were effective in the first place). It’s a good idea to review and revamp the way you work.

Here’s how:

Check your work actually matters

Check you’re focusing effort on things that customers actually care about. You don’t want to invest time and energy into things that simply don’t move the dial for your business. Try out some surveys or even just some good old fashioned conversations with your customers. If aspects of your offerings aren’t resonating, consider investing less into them.

Write down your processes

Record the steps you follow to complete jobs. Put a little time aside each week and get staff to help as their perspective will be hugely valuable. Use templated documents to ensure you’re capturing the same information for all the jobs. This will help everyone understand what to do, when to do it, and how. Plus the simple act of writing it down will begin to highlight inefficiencies and missing information.

Look for blockers

Run through your freshly documented process looking for bottlenecks and roadblocks. Again, your employees will have great insights on this so empower them to be honest with you. It may help to map your workflows visually as that can be a more intuitive way to see it. You might find a few of these common things in your audit:

Double handling: jobs being handed back and forth a lot, or repeated.

Momentum loss: jobs getting parked at a certain point every time.

Sequence: things getting done in a weird order.

Quality control: the same mistakes or customer complaints keep happening.

Distraction: skilled workers are being distracted by low-value tasks.

Redesign your workflow:

Step through your list of inefficiencies and work out the kinks. You can often make big steps simply by clearing up roles and responsibilities, resequencing jobs, and improving communication between certain functions. Make sure people know where to find the information they need to perform tasks or deal with customers.

Look for opportunities to outsource jobs that you’re just not very good at, or excited by. An external resource will charge fees, of course, but it may be money well spent if it makes your business more focused, efficient, and happy.

Consider digital adoption

Software can be a massive boost to business efficiency. It can be used to request and track jobs, centralise information, speed up communication, and automate unloved tasks. Yes, you have to go through a learning curve but on the other side of it you’re free to focus on the things you do best. There’s software for all sorts of things from invoicing to paying bills, managing inventory to managing staff, and bookkeeping to reporting.

Asana: For tracking tasks and projects. Zapier: Automates repetitive tasks.

3. Skilled workers (capabilities)

Big business can afford to hire specialists who are super-efficient at specific jobs.Small businesses tend to hire generalists and give them multiple hats to wear. But you can still set them up to succeed.

Onboarding and training.Properly training and resourcing your people is a critical step to increasing productivity. Make sure each employee has a job description with clear roles and responsibilities. Explain how the job should be done and provide supporting documents that reinforce the in-person instruction.Give your employees careful training so they know how to use all the tools (including software) they need to. If they can’t use those tools, then the capital investment is wasted. And regularly share the values and priorities of the business. When people understand the big picture, they’re better equipped to make the right decisions for the business.

Giving and receiving feedback.Feedback is vitally important to productivity, and it’s a two-way street. When something’s not done quite right, take the time to explain the problem and the solution. Otherwise you’ll get stuck in a habit of redoing work and you don’t want that. You want to delegate with confidence. Similarly, listen to what your employees say. They’ll have a different perspective and expertise that can really help you optimise the way work gets done.

Use these steps for getting and giving feedback: Ask employees what they did well, how, and why. Add to the positives by telling them what went well, with examples. Ask for their ideas on how to speed up or refine the work. Workshop those ideas with them and, if appropriate, set new goals.

4. Entrepreneurship mindset (optimisation)

Entrepreneurship is not just the act of launching a successful business, it’s the process of optimising it. Entrepreneurs unlock productivity by better combining the resources at hand. It generally involves a bit of risk-taking but the rewards can be great.

Harness your inner entrepreneur to boost productivity. Scale up: Increasing output often lowers the marginal cost of each product or service you produce.

Acquire another business: Buying or merging with another business can deliver scale or efficiencies, such as complementary workflows, consolidated operations, or logistics.

Specialisation: Doubling down on a narrower niche can drive speed, expertise and quality to improve productivity. So think about cutting out services that don’t earn much money.

Rethink supply chains: You could increase productivity by switching to suppliers that supply superior goods, or provide complementary services. Hire and empower entrepreneurial people: Foster a culture of innovation in your business.

Increase productivity checklist

To recap, here are some productivity-boosting steps to take in your business:

Better tools.

List investments that would improve productivity. Price each solution. Calculate the expected return on each investment. Make the move that offers the best mix of affordability and impact (consult with your accountant or bookkeeper for greater certainty).

Smarter methods

Write down (and map out) your work processes. Circle all the friction points (eg, double handling, do-overs).Brainstorm solutions and focus on clarifying roles and responsibilities, resequencing workflow, fixing communication breakdowns. Consider software for repetitive admin tasks that distract you and your people from high-value work (consider outsourcing, too).Audit your process against customer preferences to ensure you’re investing time and effort wisely.

Here are some apps that can help you and your team work smarter:

Trello: Great for project management and keeping your team on track.

Slack: Enhances communication within your team.

Skilled workers.

Ensure there’s an accurate job description for each role. Explain how each part of the job gets done (in person and writing).Provide comprehensive training on the tools. Give them the big vision of what the business stands for. Meet regularly to give and receive feedback.

Entrepreneurship mindset.

Look for opportunities to scale up aspects of your work. Stay alert to acquisition opportunities. Consider going harder on a niche opportunity. Keep interrogating your supply chain. Surround yourself with entrepreneurial people.

Boosting productivity is an attitude

Small businesses have huge potential to improve productivity. Make it part of your mindset by continually examining and refining your processes, improving your work tools, and watching for inefficiencies that creep in. You’ll need to invest in your team and technologies but when done smartly, the benefits add up. As a bonus, efficient businesses are less likely to suffer delays, confusion, breakdowns in communication, distractions and waste. And that means there’s a good chance increased productivity will go hand in hand with increased satisfaction and profit.

Harnessing Tech Advancements in Retail: A Guide for Small Businesses

Fri, 26 Jul 2024 01:49:24 GMT

In today's rapidly evolving retail landscape, technology is not just a tool but a transformative force.

For small retail businesses, embracing technological advancements can be the key to unlocking growth and staying competitive. Here's how..

In today's rapidly evolving retail landscape, technology is not just a tool but a transformative force. For small businesses, embracing technological advancements can be the key to unlocking growth and staying competitive. Among the most revolutionary technologies reshaping the retail sector are artificial intelligence (AI), extended reality (XR), and advanced data analytics. These innovations offer unparalleled opportunities to create immersive shopping experiences, enhance personalisation, and improve supply chain efficiencies. Let's explore how small businesses can leverage these technologies to drive significant growth and customer engagement.

Artificial Intelligence (AI) in Retail

AI is no longer a futuristic concept; it's a present-day reality that offers immense benefits for retailers. Here’s how small businesses can harness AI:

Personalised Shopping Experiences: AI can analyse customer data to provide personalised recommendations. By understanding customer preferences and purchase history, small businesses can tailor product suggestions, marketing messages, and even pricing strategies. This level of personalization can significantly enhance customer satisfaction and loyalty. Solutions like Shopify's AI-powered tools can help small businesses get started.

Chatbots and Virtual Assistants: Implementing AI-driven chatbots on websites and mobile apps can improve customer service by providing instant responses to inquiries. These virtual assistants can handle common questions, guide users through product catalogues, and even assist with the checkout process, ensuring a seamless shopping experience. Consider using Zendesk's chatbot services for efficient customer interaction.

Inventory Management: AI can optimise inventory management by predicting demand patterns and automating restocking processes. This reduces the risk of overstocking or stockouts, ensuring that popular products are always available while minimising storage costs. Tools like Zoho Inventory offer AI-powered inventory management solutions.

Extended Reality (XR) in Retail

Extended Reality (XR), which includes Virtual Reality (VR) and Augmented Reality (AR), is transforming the way customers interact with products. Here’s how small businesses can benefit:

Virtual Try-Ons: AR technology allows customers to virtually try on products such as clothing, accessories, and even makeup. This interactive experience can reduce the hesitation often associated with online shopping and decrease return rates. ModiFace, now a part of L'Oréal, provides AR try-on solutions for beauty products.

Immersive Shopping Environments: VR can create immersive virtual stores where customers can explore products in a 3D environment. This can be particularly beneficial for businesses without a physical storefront, offering a unique and engaging shopping experience that goes beyond traditional online browsing. Obsess offers virtual store solutions for brands.

Enhanced Product Visualisation: For items such as furniture or home decor, AR can help customers visualise how products will look in their own spaces. By simply using their smartphones, customers can see how a new sofa fits in their living room or how a painting looks on their wall. Companies like IKEA Place are leading the way with AR applications for home furnishing.

Advanced Data Analytics: Data is the new currency in retail, and advanced analytics can provide valuable insights to drive business decisions. Here’s how small businesses can utilise data analytics:

Customer Insights: Analysing customer data can reveal patterns and trends that inform marketing strategies. Businesses can segment their customer base, identify high-value customers, and tailor promotions to specific groups, enhancing the effectiveness of marketing campaigns. Tools like Google Analytics provide deep insights into customer behaviour.

Sales Forecasting: Predictive analytics can help businesses forecast sales trends based on historical data. This enables better planning for peak seasons, promotions, and inventory management, ensuring that businesses are prepared to meet customer demand. Tableau offers robust data visualisation and analytics tools to aid in forecasting.

Operational Efficiency: Data analytics can identify inefficiencies in operations, from supply chain logistics to staff scheduling. By streamlining these processes, small businesses can reduce costs and improve overall efficiency. Microsoft Power BI is a comprehensive solution for business analytics.

Implementing Technology: Practical Steps for Small Businesses

While the benefits of these technologies are clear, the implementation can seem daunting for small businesses with limited resources. Here are some practical steps to get started:

Assess Your Needs: Begin by identifying the areas of your business that can benefit most from technology. Whether it's improving customer engagement, enhancing the shopping experience, or optimising operations, focus on the areas that will have the greatest impact.

Start Small: You don’t need to implement everything at once. Start with one technology that addresses your most pressing needs. For instance, if customer service is a pain point, consider deploying a chatbot first.

Invest in Training: Ensure that your team is equipped to use new technologies effectively. Investing in training can maximise the benefits and ensure a smooth transition.

Leverage Partnerships: Partnering with technology providers can provide access to the latest innovations without the need for significant upfront investment. Many tech companies offer scalable solutions tailored to small businesses.

Monitor and Adapt: Continuously monitor the performance of the new technologies and be prepared to make adjustments. Collect feedback from customers and employees to refine your approach and maximise the benefits.

Technological advancements in AI, XR, and data analytics present transformative opportunities for small businesses in the retail sector. By embracing these innovations, retailers can create immersive and personalised shopping experiences, improve operational efficiencies, and ultimately drive growth. The key is to start with a clear strategy, invest in the right tools, and continuously adapt to the evolving technological landscape. In doing so, small businesses can not only survive but thrive in the competitive retail environment of 2024 and beyond.

Budgeting for success: the importance of good financial management

Fri, 26 Jul 2024 01:48:36 GMT

A solid budget is the foundation for your company’s financial management and success. Here are 4 ways to stay in control of your business budgeting

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, 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 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.

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.

5 common accounting mistakes (and how to avoid them)

Fri, 26 Jul 2024 01:48:33 GMT

Are you making any of these accounting mistakes? We’ve outlined the top 5 accounting pitfalls that small business owners trip over, so you don’t have to make the same mistakes.

Starting a business can be a challenging experience, especially when it comes to managing your numbers and staying on top of your financial management.

Unless you’ve got some experience in finance, the bookkeeping and accounting requirements can be quite daunting. And even with today’s helpful cloud accounting platforms and fintech apps, there’s always the possibility of making a simple accounting mistake.

So, what are the most common accounting mistakes made by business owners? And what can you do to avoid these pitfalls and keep your finances looking healthy and shipshape?

The top five accounting mistakes to avoid

‘Doing the books’ is unlikely to be your favourite part of running a small business. But the better your accounting know-how and skills, the more oversight you have over the financial path (and future success) of your company. It really is that simple.

But there are plenty of traps that a newbie owner can fall into – and even a few hurdles that the more experienced business owner may trip over from time to time.

Let’s take a look at the five most common accounting mistakes:

1. Mixing your personal and business finances – when you don’t separate your personal and business transactions, this blurs the lines and makes it difficult to track your income and expenses accurately. It can also lead to personal spending being counted as business deductions, causing tax issues later on.

Solution: Open separate business and personal bank accounts and keep them entirely separate and distinct.

2. Skipping the record-keeping process – if you fail to keep receipts, log your invoices and keep proper records this can be a major problem further down the road. Detailed records are crucial for tax filing, budgeting and identifying spending trends.

Solution: keep digital copies of all receipts and be sure to keep your bookkeeping up to date and well-managed.

3. Miscategorising your expenses – throwing all your expenses under ‘miscellaneous’ makes it far harder to analyse your spending and cashflow. With every item of expenditure logged under a specific code from your Chart of Accounts, you can quickly run reports, review your spending and look at ways to improve budgets and cashflow.

Solution: Categorise your expenses properly (rent, marketing, supplies etc.) to understand where your money goes.

4. Winging it when filing your taxes – Taxation is complicated and it’s easy to make costly mistakes if you’re not prepared and organised. Don't wait until tax season to sort everything out and make sure you’re aware of all your business tax liabilities.

Solution: Set aside funds for taxes throughout the year, and consider consulting an accountant or tax adviser to ensure you're filing correctly and taking advantage of all potential government deductions and tax incentives.

5. Failing to get proper accounting advice – if managing your finances becomes overwhelming, don't be a hero. Cloud accounting software can automate some of the key tasks, and a bookkeeper can handle day-to-day record-keeping.

Solution: think about outsourcing and partnering with an experienced accounting firm to get real peace of mind and improved financial management.

Talk to us about outsourcing your key accounting tasks

You didn’t start your business to spend hours working on your bookkeeping and accounts. Why not outsource your key accounting tasks to us, and put those hours back into your business.

As your accounting partner, we can:

Show you how to clearly separate your personal and business finances
Set up your bookkeeping to be as streamlined, automated and efficient as possible
Show you the best software tools and processes for managing your expenses
Become your tax agent and take care of all the complex tax filing tasks
Provide reporting, management information and advice to guide your decision-making

Get in touch to talk about outsourcing your finance tasks.

How deep financial data helps you make better business decisions

Fri, 26 Jul 2024 01:48:28 GMT

There’s a goldmine of financial data buried in your cloud accounting ledgers. We’ve dug out five of the key ways that real-time financial data can help to drive your business decisions.

As a business owner, you want to make the best possible decisions for your business. The choices you make regarding strategy, spending, revenue generation and cashflow management can all have a major impact on the long-term future of the company.

So, how do you give yourself that competitive edge when it comes to decision-making?

The answer is to make the most of your financial data and to use the outputs from today’s cloud accounting tools and finance apps to inform and guide your choices as a leader.

Five major benefits of having financial real-time data

Cloud accounting has revolutionised the ways that small business owners manage their business accounts and broader financial management.

With the right tech stack and cloud accounting software, it’s possible to have genuine real-time information about your business finances. That instant access to your financial performance numbers is a game-changer, for a number of reasons.

Here are five ways that deep financial data can help to drive your business success...

Real-time data gives you:

1. Informed decision-making – with access to the most up-to-date financial data, you’re no longer flying blind! Real-time data empowers you to make strategic decisions based on the most current business information. You can see how marketing budgets are performing, analyse your sales trends and identify areas for cost-cutting – with a dashboard that provides a real-time snapshot of your overall financial health. You’re informed, on the ball and can react like lightning to any pressing business opportunities, or unplanned threats to your funding and operating cashflow.

2. Improved cashflow management – cash is king, so it’s crucial that you have the best possible insights into your cashflow position, planning and management. Real-time cash data helps you plan for upcoming expenses, predict potential shortfalls and make informed decisions about borrowing or investment strategies. This real-time visibility ensures you always have sufficient funds to cover your operational costs, dodging the cashflow pitfalls that could otherwise hinder your business growth.

3. Enhanced budgeting and forecasting – you can ditch the static spreadsheets and embrace a more dynamic, real-time way to run your budgeting and forecasting. Track your progress towards financial goals, identify variances and deviations from key budgets, and adjust your plans and strategy accordingly. Accurate historic and real-time data also means more accurate forecasts, leading to better resource allocation and improved financial planning for the future.

4. Increased potential to turn a profit – with access to real-time data, finding the prime areas for cost reduction and revenue optimisation is made easy. You can quickly hone in on the products that are bringing in the biggest sales revenues, or the operational expenses that are costing you money but failing to deliver a healthy return on investment (ROI). If the majority of your sales income is coming from one product, by tracking key metrics like customer acquisition costs and conversion rates, you can identify and refine marketing strategies to maximise return on investment. Additionally, real-time sales data allows you to react quickly to customer trends and adjust pricing strategies to improve profitability.

5. Greater confidence in your business potential – modern accounting tech puts all this real-time data right at your fingertips, so you always feel in control of your finances. That’s a major boost to your confidence as a business owner, giving you the overview and insights you need to keep a tight grip on your financial health. Having this transparency makes it possible to share key metrics with your key stakeholders, like investors or partners. It also demonstrates your commitment to keeping good records and focusing on your financial management – a trait that investors, lenders and banks will see as a good sign of the viability of your business.

Talk to us about accessing your finance data goldmine

If you’re currently only tracking the most basic of finance metrics, now’s the time to dive deeper into your pool of valuable financial data. The more detailed and refined your finance dashboard becomes, the more you’re in control of the next steps of your business.

We can help you set up a tailored business dashboard and management reporting tools to track all the most valuable finance metrics for your business.

Get in touch to start exploring your real-time data.

Keeping your employees and customers safe

Thu, 06 Jun 2024 03:25:00 GMT

Are you keeping your staff and customers safe? We’ve got three top tips for getting on top of your health & safety procedures as a business owner.

Worldwide, there are around 340 million occupational accidents and 160 million victims of work-related illnesses annually. Those are worrying statistics for business owners. As an employer and an owner, you have a responsibility to keep your people safe – and the potential fallout from failing to do this can be significant.

If an employee or customer were to be injured while on your premises, the outcome is not great.

The company could well face:

Expensive and time-consuming legal cases,
Costly compensation payments to the injured party
Negative reputational impact from the media and social media reporting re the accident.

And of course, there’s the ethical implications of not having taken care of your stakeholders – and the upset, worry, stress and long-term health implications for the person that’s injured.

Your duty of care to your employees:

As a business owner or director, you have a duty of care to your employees to keep them safe and healthy at work. This includes providing a safe work environment, providing adequate training and monitoring their safety and well-being on an ongoing basis.

Specific examples of your duty of care to your employees include providing:

Safe and well-maintained machinery and equipment
A safe and healthy work environment, free from hazards
Adequate training on how to use machinery and equipment safely
Training on health and safety procedures
Monitoring the health and safety of your employees
Support to employees who have been injured or become ill at work
Taking out the relevant liability insurance in case of staff injuries.

Your duty of care to your customers:

You also have a duty of care to your customers to keep them safe when they visit your physical shops and office spaces. This includes providing a safe environment, thinking about accessibility and making sure your premises are reviewed for safety on a regular basis.

These customer concerns can include:

Providing safe premises that are hazard-free and maintained to a high standard
Taking steps to prevent crime, such as installing CCTV and hiring security guards
Ensuring that differently abled people can access the premises safely
Providing adequate training to staff on how to deal with emergencies
Taking out the relevant public liability insurance in case of customer injuries

Your duty to provide relevant staff training and a continuity plan:

Staff should get relevant training on health and safety procedures, so they’re on the ball with safety procedures and can do everything in their power to keep customers safe and free from danger. It’s also vital to have continuity plans in place in case of staff/customer injuries, criminal activity or unexpected emergencies and natural disasters.

To be on the ball with your training safety plans:

Conduct regular risk assessments to identify and assess potential hazards
Develop strategies and business procedures to mitigate any risks.
Implement and maintain a health and safety management system.
Provide your staff with the resources and support they need to work safely.
Communicate your health and safety policies and procedures to all staff and customers.
Monitor and improve the effectiveness of your health and safety measures..

Get your health & safety up to speed:

By having a real focus on health & safety, you do the right thing for your staff, your customers, your suppliers and everyone involved in your business. You protect your stakeholders, and also protect the reputation and trust that people place in your brand.

To find out more about keeping your workplace safer, take a look at this government guide

More advice on health & safety in the workplace .

DIY accounting vs hiring an accountant: make the right choice for your business

Thu, 06 Jun 2024 03:07:33 GMT

DIY accounting might sound like a good economy, but investing in an accountant could be the best financial decision you make as a business owner.

When you’re starting out as a small business owner, the temptation is to go DIY with your accounting. Hiring a professional accountant or tax adviser costs money and that’s an overhead that you can remove by doing all the financial management yourself, right?

But is DIY accounting the most sensible option for your business? And why might partnering with an experienced accountant be a valuable investment in your future?

The 5 big challenges of managing your own accounts

At the initial stages of founding your business, you might think that raising a few invoices, paying a few supplier bills and making sure there’s cash in the bank is well within your abilities.

However, as the business grows, and you take on more customers and employees, your finances are likely to get far more complicated – not to mention far more time-consuming. So, should you still be managing your accounts solo at this important stage of your growth?

Here are five of the common challenges of going down the DIY accounting route:

The knowledge gap – grasping the finer points of accounting principles and tax regulations is complex. If you try to navigate these financial complexities without the right knowledge and experience, you greatly increase the risk of errors, missed deductions, poor record-keeping and non-compliance with company tax law for your territory.

The drain on your time – Managing bookkeeping, payroll, day-to-day accounting and tax filings takes a lot of time out of your week. For example, recent stats show that Aussie business owners spend an average of 6 hours and 19 minutes per week on financial administration. If you’re spending a large chunk of your week working on finance admin, that’s time you’re NOT spending on growing the business. As an ambitious owner, you should be concentrating on business development and the other strategic tasks that will push your growth – not doing the books!

Staying up to date with the regulations – Company tax laws and accounting regulations change frequently. If you’re not on the ball with the latest regulatory changes, there’s every chance that you’ll fail to meet your compliance duties. And, you may also miss out on the latest government incentives and tax reliefs too – financial perks that could well be the key to funding the next stage in your business expansion plans.

Anxiety about a company audit – going through a company audit from an external auditor can be stressful. Depending on the status of your business, you may well have to comply with the rules for regular auditing. But with no accountant, your record-keeping may be haphazard, making the job more difficult, time-consuming and disruptive.

A lack of strategic insight – If you’ve never run a business before, it’s likely you’ll lack the awareness of how good financial management drives your strategic insight. The better your accounts, the higher the quality of your finance data, reporting and management information. And this data and reporting can be a goldmine of information when making big strategic decisions, setting budgets and forecasting cashflow etc.

How working with an accountant turns these challenges into business benefits

Having full responsibility for your own business finances is a major drain on your time as an owner and business leader. But the good news is that partnering with an accountant can very quickly lighten this load and get you back to focusing on your business.

By engaging an accountant to take on your financial management, you get:

The knowledge of an experienced finance professional – when you hire an accountant, you add a financial expert to your team. They'll help you navigate the complexity of accounting, will keep your records accurate and will make sure you comply with all relevant tax regulations. This minimises errors and maximises your deductions.

More time to focus on the business – by delegating your bookkeeping, payroll, accounting and tax filings to an accountant, you free up valuable time. This gives you more time in the day to talk to customers, develop growth strategies and build relationships with clients, partners, lenders and investors.

Stay ahead of the regulatory curve – a professional accountant knows exactly which legislative and regulatory changes are planned and will make sure you’re always ticking the right compliance boxes. They’ll also be aware of any new government tax deductions or funding incentives that may open up extra cash for your business plans.

Peace of mind when it comes to an audit – with an accountant managing your accounts, you can rest assured that you have the best possible record-keeping, reporting and financial compliance. This is a major bonus when you face an external audit process. Your accountant can even represent you during the audit process, cutting down the potential stress and keeping you focused on running the business.

Expert strategic guidance – accountants do way more than just crunching numbers. Your accountant will work with you to analyse your financial data, manage your cashflow, identify patterns and trends and provide the valuable insights you need to inform your decision-making. An accountant is a key part of your management and strategic team, helping you drive the success, efficiency and profitability of your business.

Talk to us about outsourcing your financial management

Hiring a great accountant is definitely a better investment in your business than opting for DIY accounting. Instead of getting bogged down in bookkeeping, or going red in the face with record-keeping, just hand over the financial management workload to the experts.

We’re here to lighten the load, sort out your accounts and put you back in complete control of your finances and strategic decision-making.

Get in touch to discuss taking on your accounting tasks

How to embrace neurodiversity in your team

Thu, 06 Jun 2024 03:07:25 GMT

Diverse business teams deliver 60% better results. And, this applies to neurodiversity too. When you embrace the diversity of your team, you create a more innovative and creative workplace.

People come in all shapes and sizes – and this applies equally to how our brains work.

Research in neurodiversity has shown that we all think in different ways, and that there’s no single ‘hard-wired’ way for our brains to work. This diversity can be a major asset, but it also has an impact on how you manage your team and the ways your employees will choose to work.

What neurodiversity means for you as a people manager

Neurodiversity is the description of the variations that exist in the workings of the human brain and mind from person to person. Some of us have brains that work in a more standard or ‘neurotypical’ way. Others of us have more neurodivergent brain types, where the way our brain functions differs from the neurotypical blueprint. Neither is ‘better’. They are just different and this is key to grasping the varied ways that your team members may approach a problem, or choose to work.

A rough guide to the various types of neurodiversity

Employees who identify as neurodiverse are not all the same, and will have specific needs, superskills or work preferences that define how you can maximise their input in your workforce.

Let’s take a look at some of the more well-known types:

Autism spectrum disorder (ASD) – ASD is a developmental condition that affects someone’s communication and behaviour. People with ASD may have difficulty with social interaction, communication and may exhibit repetitive behaviours. Some people with ASD can have restricted interests, for example, having an intense interest in a particular topic, activity or hobby. People with ASD sit on a spectrum, with some being high functioning, and others facing bigger challenges with their ASD.
Attention deficit hyperactivity disorder (ADHD) – people with ADHD may have difficulty staying focused, controlling their impulses, or sitting still. The condition falls into three main types: hyperactive/impulsive ADHD, inattentive ADHD and combined ADHD (where people show signs of both types). Depending on the individual, this can result in hyperactivity, difficulty in controlling impulses and problems with concentration.
Dyslexia – dyslexia is a learning difference that affects reading. People with dyslexia may have difficulty decoding words, comprehending reading material, or reading fluently. This can result in reversing letters or words, skipping words, or adding or omitting letters. People with dyslexia may take longer to read written materials, but can develop their own strategies for learning, working with ideas and tackling certain tasks.
Dyspraxia – dyspraxia is also known as developmental coordination disorder (DCD). It’s motor skill disorder that affects coordination and movement. People with dyspraxia may have difficulty with tasks such as handwriting, catching things or riding a bike, for example. Someone with dyspraxia may have issues with planning and executing movements, such as bumping into things or having difficulty with tasks that require multiple steps.
Other neurodivergent types to be aware of – there’s a wide range of other neurodiverse types to factor in as a people manager. These can include conditions like Down Syndrome, colour blindness, Tourette's syndrome and even post traumatic stress disorder (PTSD).

The pros and cons of having a neurodivergent team

Each type of neurodiversity has its own unique strengths and challenges. For example, people with ASD may have difficulty with social interaction but can be exceptionally good at problem solving. People with ADHD may have difficulty with focus and concentration but may be very creative, energetic and full of incredible ideas.

It is important to understand the different brain types and how they affect the way we work. This helps you become a more effective and empathetic manager, while also creating a more inclusive workplace where everyone in your team feels comfortable and happy.

Flex your people management to accommodate neurodiversity

Different people need different management strategies. This is true of neurotypical employees as much as neurodiverse workers. But there’s a real imperative to flex your management style when working with neurodivergent people. A process, task or approach that works for YOU may be totally wrong for a person living with ASD, ADHD or any of the many different neurodiverse conditions.

Here are some tips for getting the very best from your neurodivergent employees:

Be clear and concise in your communication – avoid using jargon or technical language that your employees may not understand. Explain tasks, briefs and requests in the simple terms and use plain English wherever you can.
Provide written instructions whenever possible – written instructions will help your employees remember the tasks and what’s required of them. Factor in that people with dyslexia will prefer a non-written option, or an alternative strategy.
Break down complex tasks into smaller steps – a lack of focus and concentration can make complicated tasks a potential hurdle. Set out each step that’s needed in the process, but keep this outline simple and easy to understand.
Offer regular feedback and support – neurodivergent people want to get their work done the same as anyone else. When you offer support, this helps to reduce the hurdles and smooth out any anxieties the person might be having.
Create a quiet and distraction-free environment – some people will need a ‘quiet space’ to work in. Ensure that your workspaces have options, so people who need silence have somewhere to work, while others can be noisy and energetic.
Embrace your people’s skills – people with ASD may be your technical superstars, understanding your product inside out and solving incredibly complex problems. Employees with ADHD may well be your creative thinkers, firing out sales and marketing ideas that no-one else has thought of. Know each person’s skills and play to their strengths, to create real diversity and flexibility in your team.
Be understanding and accommodating of individual needs – empathy is a vital trait for a people manager. Try your best to understand the diversity in your team, and how there are many different ways for an employee to complete the same goal. Being an empathetic and understanding people manager will get the very best out of everyone on the team, making you stronger as a diverse unit.

Diverse business teams deliver 60% better results and make better decisions in 87% of cases. With a better grasp of how different minds work, you make your employees feel more valued, and create a team that uses its skills in the most productive ways.

When you embrace the diversity of your team, you create a more innovative and creative workplace – and the key to this is getting on board with everyone’s core strengths.

Not For Profits Have A New Reporting Obligation

Sat, 01 Jun 2024 22:36:45 GMT

From the 2023-24 income year, non-charitable NFPs with an active ABN are required to lodge an annual NFP self-review return.

If you run a NFP, such as a club or team, you may need to lodge the new NFP self-review return to self-assess income tax exemption under one of eight categories.

The first NFP self- review return is due by 31 October 2024 , or after the end of your client's reporting year if they have an approved substituted accounting period.

You should get ready now by:

conducting an early review of your eligibility by using the ATO's guide
ensuring your ABN registration details are up to date, including authorised associates, contacts and addresses. We can provide a paper form if required.
reviewing your purpose and governing documents to understand the type of NFP you are
obtaining a myGovID for your authorised associate and linking it to your organisation's ABN using Relationship Authorisation Manager.

For more information is available on the ATO's website .

If you would like us to lodge the review on behalf of your organisation, please Contact Us .

Quickbooks Online Prices are changing

Sat, 01 Jun 2024 22:27:49 GMT

Quickbooks is changing it's pricing in Australia from 7 August 2024.

What are the new prices?

For all purchases of QuickBooks products on and from 7 August 2024, the monthly prices will be as set out in the table below.

On a customer’s first billing date from 23 October 2024, the monthly price of all QuickBooks products purchased before 7 August 2024, will increase as set out in the table below.

When does the new pricing come into effect?

The new prices will apply to all new QuickBooks Online subscriptions - QuickBooks Self-Employed, Simple Start, Essentials, Plus, and Payroll that are purchased on and from 7 August 2024, from the date of purchase.

For subscriptions purchased before 7 August 2024, the new prices will take effect on customers’ first billing date after 23 October 2024.

Where we hold the subscription for Quickbooks on your behalf, we will automatically apply the new pricing once the appropriate date has been reached.

Clients who pay us via Agreed Price Service Plan will continue to receive a 10% discount on new plans.

What’s new in QuickBooks Online Accountant and QuickBooks Online?

Intuit's commitment to providing exceptional value remains unwavering. They're investing heavily in the QuickBooks platform and training events, making it easier to get started with QuickBooks, and also improving the quality of support. Check out the New Features in QuickBooks page to learn about the latest features and updates.

If you have questions about the new Quickbooks prices, please contact us .

Digging deeper into cloud accounting

Wed, 22 May 2024 00:26:03 GMT

Using your cloud accounting software to just do the bookkeeping barely scratches the surface. Here are four important ways to get more from the cloud with a bespoke tech stack.

If you’re managing a small business, the chances are that you’re using one of the current crop of cloud accounting platforms. Whether your chosen software is Xero , QuickBooks or MYOB , these online accounting tools are now the standard for business accounting.

But are you exploring the full benefits of your cloud system?

The basic benefits of running your finances in the cloud

Not so long ago, business owners were reliant on paper ledgers and manual accounts to understand their financial performance and cashflow position. Thankfully, accounting technology has moved on in leaps and bounds in the past two decades.

The average business owner will almost certainly be using some form of cloud accounting to manage their finances. And the advantages of the cloud don’t just lie in the convenience and easy access of being able to do your bookkeeping in the online space.

Whatever cloud platform you’re using, you get:

A simple, straightforward way to record all your transactions – every sale, purchase and expense is recorded in your cloud accounting software, with some of this record-keeping process even happening automatically, using tools like Dext Prepare .

A real-time view of your finances – instead of your accounts being weeks, or even months out of date (as in previous decades), you now have an almost instantaneous view of your profit and loss (P&L), cashflow position and expenses.

An easy way to collaborate with your advisers – it couldn’t be easier to invite your accountant, tax adviser or business coach into your accounts. In the cloud, you can all access the same numbers and have one point of truth for all your financial metrics.

Going beyond the basics of your cloud accounting platform

Managing your bookkeeping and accounts with cloud accounting software gets the job done. But the reality is that you could be doing so much more besides. If you’re just using your cloud accounting to do the accounts, you may just be scratching the surface of the potential value.

Here are just a few of the deeper benefits:

A growing ecosystem of add-on apps – Most of the big players in the accounting space have sizable app stores, where you can choose from hundreds of different ‘add-on apps’ and integrations. These apps add different functionality to your basic accounting system, allowing you to add automated bookkeeping like Auto Entry , debtor chasing with Chaser or an expenses management app like Expensify .

Extensive forecasting and scenario-planning – there are plenty of sophisticated forecasting tools that integrate with your cloud accounting. Tools like Spotlight Reporting , Float and Fathom all allow you to extrapolate your cash numbers forward in time. And because these forecasts and projections are based on your own historic and real-time data, you can be sure that they’re based on solid information that’s a sound basis for your future planning, cash management and business decision-making.

Job management and industry specific apps – a helping hand with your operations and project management is always going to be welcome. Most app stores will have a wide selection of industry specific apps, that help you manage the operations in your specific business sector. This might be Tradify for tradies and contractors, Re-Leased for property managers, or Dentally for dental practices.

A fully integrated tech stack to manage your whole business – by picking and choosing the most helpful and relevant apps from your platform’s ecosystem, you can quickly build up an entire tech stack that becomes the operational heart of your business. Whatever your industry, you can create a bespoke business system that does far more than just keeping your bookkeeping in check. With an evolving tech stack, you’re ready to streamline and automate each process and operation, so you end up with a lithe and agile business that’s ready to scale as your business prospers.

Talk to us about maximising your business tech stack

Getting your accounts and compliance done and dusted in the cloud is a great start. But we’d advise digging a little deeper into your cloud accounting platform to really get the best value.

We’ll help you find the most useful apps to add to your tech stack. We’ll also help you get integrated, automated and connected – putting you in complete control of your business.

Embracing humour in your marketing and brand identity

Wed, 22 May 2024 00:25:54 GMT

Customers like it when brands are funny. But are you doing enough to use humour in your company’s marketing? Here are some top hacks for being funny as a marketer.

As a brand, you want to be seen as professional, trustworthy and capable. But there’s also a strong argument for letting down the professional facade occasionally to use a little humour in your marketing, your communications and the company’s brand personality.

Are we joking? Making gags in professional marketing? We’re totally sincere about this. In fact, humour is actually what your customers want, according to the latest consumer research .

So, how do you get the balance right between tickling customers funny bones and maintaining the professional reputation of your company’s brand?

Consumers want humour: but business leaders are wary of being funny

91% of people globally prefer brands to be funny. But 95% of business leaders are worried about using humour in their brand’s consumer interactions, according to [The Happiness Report] (https://www.prnewswire.com/news-releases/global-report-45-of-people-have-not-felt-true-happiness-for-more-than-two-years-301568258.html) from Oracle and author-podcaster Gretchin Rubin.

The stats from this report are pretty conclusive. The average customer likes a chuckle, but businesses are still acting rather ‘buttoned down’ and serious:

90% of people are more likely to remember ads that are funny
72% of people would choose a humorous brand over the competition
But only 20% of brands report having used humour in offline ads, and 18% of brands report using the tactic in online ads.
So, what can your brand do to liven things up with a bit of humour? We’ve shone the light on three core pillars for raising a smile, without damaging your reputation.

Use humour to reveal the true personality of your brand - When you use it effectively, humour helps make your brand more relatable, approachable and likeable. Cracking a funny helps differentiate your brand from your rather dour competitors. It also leaves potential customers with a smile on their face – and happy customers are more likely to spend more and become advocates for your brand.

To add humour to your brand personality:

Be genuine with your humour – your humour should be honest and come from the heart. Don’t fake it. Be yourself and use your authentic voice.
Be relatable to your audience – use humour that your target audience will understand and appreciate. And be careful with your reference points.
Be respectful - Avoid being offensive, discriminatory or crass. Brand humour is likely to be gentle, playful or slightly nerdy in its delivery, but always inclusive.

Avoid the temptation to be zany or too wacky - Don’t fall into the trap of being too zany or ‘off the wall’ with your humour. If you’re trying too hard to be funny, you can actually end up alienating your intended audience. Also, be careful about creating ‘wackaging’, as this can get up people’s noses and can end up destroying your brand loyalty.

To keep your humour on track

Use humour that’s subtle but raises a chuckle – a well-placed joke or a witty tagline can be much more effective than a loud, over-the-top approach.
Keep your jokes simple – don't over-complicate your jokes or try too hard to be funny (it shows).
Keep gags relevant for your audience – make sure your humour is relevant for your target audience. It might make you laugh, but will your customers also laugh?

Know when humour is appropriate, and how far you can go

Not all situations call for humour, and being funny in an inappropriate way can occasionally backfire. So, be sure that what you’re saying hits the mark and won’t cause a problem. Remember, your aim is to raise a laugh from your customers and boost that warm, fuzzy feeling they have for your brand. Keep this in mind whenever you’re introducing humour.

Here are some tips to keep you on track:Use your judgement – there are no hard and fast rules. But remember that a joke has to raise a giggle, not cause offence.

Be respectful – avoid humour that’s offensive or discriminatory in any way. This means avoiding any stereotypes that will reflect badly on your judgement as a brand. Always punch up, and not down, with your jokes and keep your target audience in mind.
Test your material – if you’re worried whether a particular joke is appropriate (or not), test it out on a small group of people before airing it in a public forum.

Use fresh humour to create a unique brand personality

It’s important to keep your humour original. If you start using outdated or overused humour, your customers are likely to see your brand as unoriginal and uninspired. So, be sure to keep your jokes fresh and funny.

If adding a touch of humour to a marketing campaign or a blog post feels right, embrace that and let your true brand personality shine through.

Be honest, be funny and show your humorous side to your customers. You won’t regret it.

The ABCs of Bookkeeping

Wed, 22 May 2024 00:25:42 GMT

Why is good bookkeeping so vital for your financial management? We’ve got some top hacks for maximising your bookkeeping, and the options for outsourcing this job to the professionals.

In today's digital times, you're probably used to having unrivalled access to your financial numbers, key performance indicators (KPIs) and cashflow metrics. Without good bookkeeping, the speed and quality of your reporting can quickly fall down.

So, why is fast and accurate bookkeeping so important? And what are the main bookkeeping tasks that your business should be getting right?

The financial importance of good bookkeeping

Bookkeeping is a fundamental part of your financial process as a business. Without it, your accounting software has no financial data to work with, your FD doesn’t have the most current numbers, and your accountant can’t see the current financial health of the business.

Inputting your financial transaction into some form of record-keeping system is also a mandatory commitment if you’re a registered business and paying goods and services or value-added tax. Bookkeeping is what provides you with a historic breadcrumb trail of your finances – allowing you to track your cashflow, revenues and profits over a given period.

How to maximise your bookkeeping

So, bookkeeping is a vital part of your financial management. And the key to having your transactions recorded, available for reporting and accessible whenever you need them.

But how should the bookkeeping process work, in an ideal world? Let’s walk through the core bookkeeping steps and how you can get the most from this financial admin task.

To keep on top of your bookkeeping:

Scan all financial paperwork – the initial part of the bookkeeping process is to scan and record all receipts, invoices and remittances. This gives you a digital copy of the paperwork that relates to your income and expenses – important when you get around to filing tax returns and expense claims etc.
Record all transactions immediately – getting your transaction recorded and in the books ASAP is vital. This includes recording both your income and expenses, as soon as they occur, and matching them with the scanned paperwork. This not only helps you stay organised but also means your financial data is always up-to-date and can provide real-time reporting and numbers. This can be a huge help when running the business.
Categorise transactions accurately – when recording transactions, make sure you’re accurate and categorise each item correctly. Not only does this remove the potential for errors and miss-keying in your books, it also helps you track your spending and income more accurately, so your reports are an honest reflection of your financial health.
Reconcile your accounts regularly – reconciliation is the process of matching your transactions (both income and expenses) against your bank statement and other financial statements. It’s a key part of your bookkeeping and should be done regularly, to ensure that your balances are correct and that your records are totally up to date.
Use a cloud-based accounting system – bookkeeping doesn’t involve books (ledgers, in accounting-speak) anymore. In the digital world, you can use cloud-based accounting software, like Xero, to record your transactions and access your financial data in the cloud from anywhere, at any time. This makes it easier to keep on top of your numbers when out of the office (and Xero will even automate the reconciliation process too).
Outsource your bookkeeping to a professional – yes, you can do your own bookkeeping. But there’s a LOT of value to delegating all the hard work to a professional bookkeeper. If you don't have the time or expertise to manage your bookkeeping yourself, outsourcing is a smart move. A bookkeeper will make sure your books are always accurate and under control. Plus, they can produce cashflow statements, revenue forecasts and other reports to help your business decision-making.

Talk to us about bookkeeping today!

The art of networking: techniques for becoming a great networker

Wed, 22 May 2024 00:25:36 GMT

Networking is a great way to connect with your industry peers and become an asset to your local business community. We’ve got some top hacks for getting the most from your networking.

Leading a business can be hard work. But the good news is that you're not the only founder, owner-manager or CEO who's treading this path. Networking with your peers is a great way to make connections with other entrepreneurs, while also looking for new business opportunities.

5 ways to improve your networking skills

Being part of a wide network of entrepreneurs and business leaders is about being part of the business community. It’s about giving to the community, as well as being supported by it – and knowing that you’re surrounded by other entrepreneurs who share very similar goals.

So, networking is a valuable thing to take part in, whether you’re a brand new founder, or a seasoned business owner who’s been around the track a few times. But how do you get GOOD at networking? There’s no simple answer to this, but we’ve highlighted five key things you can do to get more from your networking and to give more back to your community.

To become a better networker:

Be authentic and relational – if you’re going to make a success of networking, it naturally makes sense to appeal to people. Being genuine and interested in getting to know your peers will help a lot. Be yourself, be friendly and take the time to learn about the people you meet. Ask questions about their work, their interests, their goals and what generally makes them tick. This isn’t just about ‘doing business’, remember; it’s about getting to know people as people, and being part of this community.
Be a good listener and ask thoughtful questions – in networking, listening is just as important as talking. When you're talking to someone, listen intently, look people in the eye and pay real attention. Resist the temptation to interrupt or start thinking about what you're going to say next. Instead, focus on understanding their perspective and asking thoughtful questions. Ultimately, you want to make it clear that you’re interested in what this person has to say, and that you’ve found some common ground together.
Be helpful and offer your expertise – one of the best ways to build relationships is to be an asset to your industry community. Look for ways to use your experience and skills, and offer ideas, advice and help (if people are looking for assistance). This could mean sharing your industry knowledge, providing resources, or making introductions to other people in your network. When you help others, you help the community, underline that you’re a valuable resource and that you’re interested in building relationships.
Be an asset to your niche/sector/industry – share new ideas, drive innovation and be a voice that stands out in the network. If you want to make an impact, it’s important to stand out from the crowd. A good approach is to be someone who’s known for their expertise, creativity and thought leadership. Get involved in industry discussions, and write articles and blog posts about the big issues in your sector. The more you contribute to your niche/sector/industry, the faster your star will rise.
Follow up after networking events – getting the networking right is one thing, but it’s important to also get your follow-ups right too. Get people’s business cards, phone numbers or emails and get in touch after the event to touch base. A quick email or LinkedIn message could well be the start of a blossoming new business relationship or friendship. It’s also a good idea to connect on social media and to comment, share and repost your new contact’s posts.

What are the best places for networking?

Industry-specific events and conferences – industry events are great places to rub shoulders with other professionals in your field. You can get involved in discussions, learn about the latest trends and developments and even present your own sessions.
Social media platforms – you’re spoilt for choice when it comes to social media sites to help your industry networking. LinkedIn, X(Twitter), Facebook, Threads and BlueSky all help you connect with the people you’ve met through your networking, and build on those relationships to share your insights and ideas more widely.
Local meetups and workshops – most cities and towns will have regular business meetups and workshops that you can dip into. Business breakfast events and evening get-togethers are a great way to meet local business owners and to find out what’s going on in your local community.

If you’re looking to raise your profile and improve your networking, we’d love to lend a helping hand. We’re connected to hundreds of different business owners and leaders – and we’re more than happy to introduce you. Get in touch!

Our advice is to put yourself out there in your industry community, track down your local business peers and get busy with your content marketing and social media posts.

Xero Plans & Pricing Are Changing

Wed, 01 May 2024 09:32:43 GMT

Xero is chaning is product lineup and pricing in Australia from 1 July 2024.

What's Changing?

Xero is launching three new streamlined business plans (Xero Ignite, Xero Grow and Xero Comprehensive), and enhancing the Ultimate plan in Australia. The new plans will replace Xero’s Payroll Cashbook, GST Cashbook, Payroll Only, Starter, Standard and Premium plans which will no longer be sold from 1 July 2024.

The company says that this will mean easier access to tools (including cash coding in all of the new business plans), more bundled features, and fewer plans and add-ons to navigate.

Existing add-ons will no longer be available for separate purchase from this date. Any new subscriptions from 1 July 2024 can only be added to a new plan. Enhancements to Ultimate plans will also begin from this date, which include Xero Expenses and Xero Projects for 10, instead of the current 5.

Where we hold the subscription for Xero on your behalf, we will automatically apply the new pricing once your plan is converted.

Clients who pay us via Agreed Price Service Plan will continue to receive 10% discount on new plans.

When Will Your Plan Change?

From 1 July 2024:

Xero will begin moving subscribers to the new plans in phases, taking into account the subscriber’s current plan (and any add-ons).
This move will start with Premium 10–100 plans which will convert to the equivalent tier Ultimate plan at the new Ultimate pricing on 1 July 2024
Xero says that they intend to move subscribers to new plans by March 2025
Alternatively, you can choose to move to new plans before this automatic conversiontakes place if you wish
If you want to upgrade, downgrade, remove an add-on from your plan, or transfer a subscription after 1 July 2024, one of Xero's new plans will need to be chosen
Once you have moved to a new plan, the previous plan will no longer be available

If you have questions about the new Xero plans or the conversion process, please contact us .

Key ways to access funding for your business

Wed, 24 Apr 2024 04:14:58 GMT

Funding is essential for hitting your business goals – but do you know which routes to finance are the best for your company? We’ve got the lowdown on funding.

If you’re planning to found a new business, you’ll need enough startup capital to get this venture off the ground. And once you’re up and running, you’ll need additional business finance and investment at each stage of your growth and expansion along the business journey.

But where does this business funding come from? And what are the best routes for accessing the finance you need to bring your business plans to life?

Five way to access the right funding

There are multiple routes to funding, and many specialist types of finance that cater to a specific industry or a particular business type. However, it’s always a good idea to understand the funding fundamentals and the options they offer for your business.

We’ve summarised five different funding routes that are worth considering:

1.Bank loans and overdrafts – traditionally, your bank was the go-to place for business funding. Taking out a business loan allows you to pay back the loan over an agreed period, and in easy instalments. Extending your business overdraft can give you more credit to play with. But in recent times, banks have become more reticent to lend and will need cast-iron evidence of your ability to repay any agreed loan or overdraft.

Pros: Large sums of money can be borrowed
Cons: Strict lending criteria and may require collateral

2. Private investors – getting high-net-worth individuals to invest in businesses is another well-worn path to funding. Private investors can be a great source of funding if your business is unable to qualify for a bank loan or needs a large amount of funding quickly. However, investors will usually expect shares in the business and some form of control over the direction and running of the company. Shrewd investors will also want a guaranteed return on their investment (ROI).

Pros: Can provide large sums of funding and more flexible criteria than banks
Cons: Can be difficult to find private investors and they will expect good ROI

3. Business loan providers and niche industry lenders – There are many lenders that specialise in providing loans to businesses in specific sectors, or at particular points in the business journey. These lenders may have less stringent lending criteria than the main high street banks and can offer more flexible repayment terms. If you’re trading in a niche and need money quickly, these lenders are well worth adding to the mix.

Pros: Less stringent lending criteria than banks and flexible repayments
Cons: Interest rates may be higher than bank loans and collateral may be needed against your loan

4. R&D tax credits – R&D tax credits are government incentives that can help you offset the cost of your company’s research and development activities. R&D tax credits can be a valuable source of funding for businesses that are developing new products or services and will help to cut your corporation tax bill – savings that can then be reinvested back into the business.

Pros: Offsets the cost of R&D activities and can be claimed retrospectively
Cons: The application process can be complex and time-consuming

5. Government loans and tax incentives – there are a huge range of government loans, enterprise incentives, grants and tax incentives available to your businesses. These funding options can be used for a variety of purposes, such as starting a new business, expanding an existing business or creating jobs. Each country and territory will have its own specific government incentives, so it’s worth doing your own research, or working closely with your advisers to find the most suitable loans, grants and incentives in your particular area.

Pros: Provides a valuable source of funding, and (if you meet the criteria) some grants may not require repayment
Cons: Criteria must be met in full and the application process can sometimes be complex and time-consuming

Talk to us about setting up your funding strategy

Whatever point you’re at in the business journey, there’s real value in having a clear funding strategy set up and agreed for your business. The right routes to funding will depend on your business goals, your ability to make repayments and whether your sector is classed as high or low risk. But having a funding strategy in place really is an essential element of your planning.

As your adviser, we can run you through the funding options available to you, with industry-specific advice on the most practical and effective routes to finance.

How to prepare your business for an audit

Wed, 24 Apr 2024 03:52:33 GMT

For companies of a certain size, a regular audit is a mandatory requirement. Here’s how to get your finances ready for an audit, so it’s as stress-free as possible.

Getting ready for an audit is unlikely to be one of your favourite things to do as a business owner. But being prepared, organised and ready can take some of the pain out of an audit.

Planning for your audit helps your auditor get their job done more quickly, and also means there’s minimal disruption to your staff and business during the process.

Let's take a look at five key ways to be ready for an audit.

Carrying out an audit of your business finances is a mandatory requirement for many companies. The rules and regulations will vary depending on the territory you trade in, but once you’re over a certain threshold for turnover or number of employees, an audit is likely to become a legal requirement. So, what can you do to make this process less of a hassle?

In advance of the audit date, be sure to:

Gather all the relevant documentation – this documentation will include financial statements, bank statements, expenses, management information and any other documentation that your auditor is likely to ask you for.
Organise your documentation in a logical way – the whole audit will be far easier to complete if your financial data and documentation is well-organised. Make it simple for the auditors to find what they need, and ensure there’s easy access to all information.
Identify any potential financial issues – the last thing you want is a giant problem coming up in the middle of your audit. So, it’s a good idea to check for any financial issues or irregularities that the auditor may flag up. Doing this well in advance gives you enough time to address any issues and resolve them before the audit begins.
Be prepared to answer questions – it’s likely your auditor will want to ask some probing questions about your business and financial records. Make sure you’re up to speed with your accounts and be prepared to answer these questions honestly.
Cooperate with your auditor – the auditor’s job is to ensure that your financial statements are accurate and that your business is in compliance with all applicable regulations. This will be much easier to do if you cooperate with them, answer their questions with good grace and quickly provide them with any information they need.

Talk to us about getting audit-ready

If you’re thinking that your company finances might not be quite ‘audit-ready’, you’re definitely not alone. Many businesses are not quite as organised with their financial management as they’d like to be. But don’t worry, help is at hand!

If you’d like some assistance with reviewing the health and organisation of your financial processes, we can help you get in control of your finances

Get in touch to review your financial management.

How to move your online business to a bricks and mortar retail space

Wed, 24 Apr 2024 03:52:29 GMT

Are you thinking about making the switch from online to a bricks-and-mortar store? We can help with some of the big questions to ask yourself before you open your retail space.

Running an online business has become a reality for a huge number of business owners in recent years. There are an estimated 12 million-24 million eCommerce sites across the globe and those numbers have risen sharply since the pandemic. But although online shopping may be convenient, there’s still a real desire for physical shops and in-person retail.

So, if you’ve been running a successful eCommerce business or online side hustle, should you be thinking about getting yourself a brick-and-mortar retail space?

Let’s take a look at the core reasons why a physical space might be right for you.

Why move from online to bricks and mortar?

In short, it’s about one key thing: face-to-face selling to your customers. Yes, people can buy your products online, but in a retail space they can see the products with their own eyes, pick them up, get hands-on demo and generally get to know the things you produce.

There’s also the invaluable relationship-building advantage of having you and your team members on hand to ask questions. People buy from people, and you’ll build a much stronger seller/consumer bond when you’re both in the same room at the same time.

So, having that retail space has many tangible advantages over online. But there are also several key differences to running an online shop and a physical store.

Seven ways to successfully turn your online business into a physical store

One of the big attractions of running an online business are the simplicity, minimal hardware and low operating costs involved. Opening a physical retail store is a very different story and will mean you reassessing your strategy, promotion and operational budgets.

So, what are the big considerations before you take on that new retail space? And what can you do to make this transition as smooth as possible?

To get started:

- Define your core audience – it’s important to know your audience and how these existing customers might be transitioned over into a real-world audience. Look at your sales stats and CRM data to work out where your customers live, how much you can expect to sell in a quarter and where the best locations for a store might be.

- Know what your customers want – think about surveying your existing customer base to ask if a) they are interested in a physical store b) what products they’d love you to sell in the store and c) what they would want from their in-store customer experience.

- Decide on a retail location – location is vital, so think hard about where you open your first store. It’s sensible to locate your retail space in a town where you already have an existing online customer base and where footfall is good. But you also need a location where rent/rates are cost-effective enough for you to run the store with a profit.

- Define your in-store product range – the limitations of physical retail space won’t allow you to sell every item in your online store. Instead, you’ll need to decide on a core product range for the store, one that highlights all your best-loved items. Remember, this is a literal shop window for selling your business, so think carefully about what you stock.

- Rent or buy a property – in most cases, leasing an existing retail space and becoming a business tenant is your best bet when starting out. This will kickstart your real-world presence, but it’s sensible to aim for ownership of a property at some point in your journey. Ownership gives you the freedom to redesign and rebuild the space as you want, and the property will also become an asset on your balance sheet.

- Work out your costs and budget – as we’ve already mentioned, running a physical retail space can be much more expensive than going the eCommerce route. It’s vital to work out all your monthly overheads and to forecast your predicted sales and revenue. This allows you to work out if you can run the store in a profitable way, and where slimming down your costs and overheads will keep you on budget.

- Consider all expenses – don't forget to include essential expenses in your costings and budget. Remember to include costs like business rates on the store, utility bills like electricity, gas, phone and internet and the extra public liability insurance you’ll need to run a physical shop and keep your customers safe.

Talk to us about setting up your bricks-and-mortar store

Making the switch from online retailer to real-world retailer is a BIG step.

There are plenty more operational areas to think about and your costs and overheads will become a lot more complex. But, opening your first store could well be the start of a brand new chapter in the growth and success of your business.

If you’re looking to make the jump into a bricks-and-mortar store, do come and talk to us

GoCardless is now available in QuickBooks

Wed, 24 Apr 2024 03:52:14 GMT

Automatically collect recurring payments with GoCardless, now available within QuickBooks. GoCardless can help you create a smooth payment experience for customers, whilst cutting down accounting admin.

The easy way to get paid

Hassle-free recurring payments

Save time and money by automating your recurring payment collection.

Get paid on time

Reduce late payments with GoCardless by automatically collecting payments directly from customers' bank accounts when they are due and let Success+ retry any that do fail.

Reduce admin

Cut down on admin time and free yourself from chasing overdue invoices. It's simple to automate and reconcile using the GoCardless integration for QuickBooks.

Dealing With ATO Debts

Wed, 24 Apr 2024 03:52:08 GMT

The ATO has recently embarked on an agressive debt collection strategy. We are here to help.

With the economy largely returned to normal following the COVID-19 pandemic, the ATO has launched an agressive debt collection campaign which includes measures such as:

Re-raising old debts which were previously deemed uneconomicial to persue;
Issuing of Director's Penalty Notices;
Garnishing cash held by banks and debtors; and
Outsourcing debt collection to agressive third-party agencies

Being pursued by the ATO for tax debts can be stressful and emotionally trying. It can also hamper the continued operations of your small business.

There are a number of things we can do to assist you in dealing with ATO debts, including:

Catching up outstanding lodgements so that your tax file is viewed more favorably by the ATO;
Reviewing previous lodgements to ensure no tax credits have gone unclaimed;
Setting up ATO Payment Plans, to give you breathing room;
Negotiating for the ATO to remove penalties and interest for late lodgement and payment; and
Helping you talk to insolvency experts about restructure, administration and bankruptcy if appropriate.

If you need help to manage your ATO debt, book an appointment with us and we can help find the best mix of strategies to get you back on track.

Tax planning helps you do more with your money

Wed, 13 Mar 2024 03:19:56 GMT

Tax may be boring, but smart use of tax planning is a superb way to help your company do more with your money.

Tax planning is a strategic approach to managing your business’ financial affairs, with the aim of legally minimising your tax liability. In other words, you plan ahead to make sure you pay the taxes you should be paying, but not a penny more.

Working with your tax adviser, you can look for deductions, credits, exemptions and tax-saving strategies that will help to optimise your company’s overall tax position.

How does tax planning affect your business?

The primary goal of tax planning is to reduce the amount of taxes your business owes. But it’s also about making sure you stay compliant with all the tax laws and regulations applicable to your business.

But what are the main advantages? Let’s take a look at five of the big benefits of careful, strategic tax planning.

By planning your tax across the year, you can:

- Maximise your profits – strategic tax planning helps your company find the best available tax incentives, deductions and credits. This reduces your overall tax liability, cuts your annual tax costs and increases your overall profitability as a business.

- Boost your cashflow – tax planning is a great way to open up more liquid cash and achieve a better cashflow position for the business. When you cut down the company’s tax payments, that frees up cash and helps you achieve a positive cashflow position.

- Stay compliant and mitigate your risk – being proactive with your tax planning keeps the company compliant with the relevant tax laws and regulations. It’s a sensible way to tick the compliance boxes and reduce the risk of costly penalties and legal issues.

- Drive your strategic growth – smart use of tax planning helps you reduce your tax costs and reassign those funds to your strategic business goals. It’s a golden opportunity to invest in areas that promote long-term growth and competitiveness.

- Give your business a competitive edge – if managed well, efficient tax planning leads to lower operational costs for the business. This gives you a competitive edge when it comes to pricing, innovation, sales and revenue generation.

How can our firm help you with tax planning?

Getting strategic with your tax planning has many advantages for your financial stability as a business. But to maximise your planning, it’s important to work with an experienced adviser.

As your tax adviser, we’ll help you look ahead across the whole financial year, looking for the opportunities to reduce your tax liability and find the best tax deductions and incentives.

If you’d like to know more about the impact of tax planning, we’ll be happy to explain.

Get in touch to talk about tax planning.

Free Small Business Success Courses

Wed, 13 Mar 2024 03:19:42 GMT

Take any of the ATO's 21 free small businees short courses.

Want to improve your skills in business planning, finances, record keeping and registration, tax and super management?

Essentials to strengthen your small business is a new free, online learning platform where you can upskill in those critical areas. It includes 21 short, free courses in record keeping, cash flow, deductions, GST, super and more.

Review your business expenses – and save

Wed, 13 Mar 2024 03:19:32 GMT

Need to cut your business expenses? We’ll review your current costs, find the expenses that could be cut, and will provide a proactive spend management programme to reduce your spending.

Running a business costs money. 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.

Excessive spending eats into your cashflow, reduces your profit margins and stops you from achieving the profits that you’re 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 spend and slim down your company expenses?

Here are some key ways to reduce expenses:

- Reduce your overheads – your overheads are the unavoidable costs of running your business, producing your products or supplying your services. If you have bricks and mortar premises, these overheads will include rental payments, utility bills and the cost of paying your staff. Drill down into the numbers and see where there are opportunities to reduce these overhead costs. That could mean moving to smaller premises, or reducing the size of your workforce, to reduce payroll expenditure.

- Put limits on staff expenses – if your employees can claim expenses, or buy raw materials and equipment with the company’s money, these costs can soon start to rack up. It’s a good idea to put a spending limit in place, so each staff member can only spend up to an agreed amount. Having a clear expenses policy helps, as will training up your staff in good spend management techniques. Expenses cards or expense managment software will allow you to quickly set spend limits, track expenses and pull your expenses data through to your cloud accounting platform for processing.

- Look for cheaper suppliers – if you can reduce your supplier costs, this will go a long way to bringing down your overall spend. If you’ve been with certain key suppliers for years, look around for new quotes, look at current market prices and see if you can negotiate better deals. And if your old suppliers aren’t flexible enough, try swapping to newer, more eager suppliers who will be willing to meet you in the middle on price.

- Make your operations leaner – the bigger your operational costs are, the less margin you’ll make on your end products and services. One way to resolve this is to aim for a ‘lean approach’, paring back your staff, resources and operational complexity to the bare minimum. By making the business as lean as possible, whilst still delivering the same output, you keep your revenue stable, but reduce the spend level that’s eating into your cost of goods sold (COGS). The smaller your COGS, the more profit you make on each unit or sale – and that means better cashflow, more working capital and bigger profits.

- Explore tax reliefs – you might assume that tax costs are an unavoidable expense when running your business, but it’s worth exploring which tax reliefs, grants or other business benefits you may benefit from. For example, research and development (R&D) tax credits that help cut your corporation tax expenses if you can demonstrate that you’re involved in innovation and groundbreaking R&D within your industry or specialism.

Talk to us about improving your spend management

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

Meeting the environmental expectations of your customers

Wed, 13 Mar 2024 03:19:22 GMT

Consumers are becoming increasingly green in their purchasing habits. So, we’ve pulled out five ways to make your business more green, sustainable, and eco-friendly.

As environmental consciousness rises, small businesses in 2023 face increasing pressure to adopt sustainable practices and reduce their carbon footprint.

But going green means being able to balance your desire to run a sustainable, environmentally conscious business with the pressing need to remain economically and strategically viable.

Meeting the environmental expectations of your core customer base

Globally, 85% of consumers have become ‘greener’ in their purchasing in recent years, driving a green sea-change in how companies large and small run their business operations.

Most consumers want to buy sustainable products and packaging. It’s a change that will take a concerted effort and strategy, but the end results will be better for the planet and your customers.

To become more sustainable:

- Carry out a company-wide environmental audit – do you know what your environmental impact is as a business? Carrying out an environmental audit helps you identify the areas where you can improve your energy consumption and waste reduction.

- Look out for green partnerships – there will be plenty of other business owners wanting to become more green. So, why not collaborate with eco-friendly suppliers, vendors and partners to align your business with green, sustainable values.

- Offer eco-friendly products/services – offering environmentally responsible products or services helps you attract environmentally conscious consumers. It’s good for your brand and drives a greener reputation for your company in the marketplace.

- Be more transparent about your eco credentials – talking about sustainability and green values is important. By communicating your sustainability efforts, and being seen to drive change, you build trust and loyalty with environmentally aware customers.

- Tie sustainable choices into cost-effective solutions – choosing to implement sustainable practices can also lead to cost savings, by reducing waste and operating in a more lean way. So, the planet wins, and so does the company’s cashflow. It’s a win-win scenario.

With climate change ever more visible, there’s a real imperative for businesses of all sizes to play their part and become better, greener and more sustainable enterprises.

We’ll help you review your operational practices to find the best opportunities for choosing green products, cutting back unnecessary waste and reducing your carbon footprint.

Get in touch to talk about your green strategy.

How does an accountant save you money?

Thu, 22 Feb 2024 05:11:53 GMT

Want to cut unnecessary costs, optimise the most profitable parts of the business, and increase your overall return on investment?

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’s going out of the business, as well as what’s 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’re not fully in control of your financial management, it’s very difficult to know WHERE you’re spending money, and WHY you’re 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?

- Tax advice and planning – tax costs can be one of your biggest outgoings as a business, so we’ll focus on getting your tax planning under control, applying for all the relevant tax incentives and ensuring you minimise the taxes on your profits. By paying only what you’re legally required to pay – and making use of any reliefs – we can significantly cut your tax spend in the business.

- Cashflow management and advice – ‘Cash is King’ may be a cliche, but it’s true. Unless you can balance the cash inflows and outflows from your business, you’ll never have the liquid cash to pay your bills, cover your payroll costs or cover your operational expenses. We’ll show you where money is going out, and coming in, so you achieve the ideal positive cashflow position.

- Cost control and spend management – to improve your cashflow, you need to reduce your cash outflows. An important way to do this is to focus on cost control and spend management, reducing your expenditure, removing unnecessary costs and negotiating better deals with your suppliers. The more you cut costs back, the better your cashflow will be and the easier it will be to thrive, grow and become more profitable.

- Forecasting and financial modelling – when we understand the key financial drivers in your business, we can build you a full financial model. This allows us to change the variables, run different scenarios and forecast the various future paths of your business. Being able to project these numbers forward gives you a clearer view of the path ahead – and that’s invaluable in the challenging economic times that we all face at present.

- Better management reporting and information – your decision-making stands or falls on the information you have available to you. We provide detailed management accounts, breakdowns of key metrics and forecasts of your cashflow, spending, aged debt and revenue – all of which helps you to save money, make sound decisions and keep the revenues flowing into your business.

Talk to us about cutting costs and boosting profit

Rather than running your business on a wing and prayer, by working with an accountant you get a clear picture on your business financials. We’ll help you 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.

Finding and retaining the key talent for your business

Thu, 22 Feb 2024 05:11:04 GMT

4 in 5 employers, globally, report difficulty finding the skilled talent they require. So, how do you find the people your business needs? Here are five ways to beat the global talent shortage.

The job market has been through plenty of ups and downs in recent years. But in 2023, the real challenge is attracting and retaining the top talent you need to grow the business

Finding the skilled employees you need, and keeping them in the business, is vital for driving innovation and growth over the coming years. So, how do you locate the best talent?

Nearly 4 in 5 employers, globally, report difficulty finding the skilled talent they need, according to statistics from Manpower Group . This scarcity of talent can be a real stumbling block when your growth strategy relies on expanding your workforce and bringing the brightest minds into the business. So, how do you overcome the current talent problem?

Here are five ways to find the talent you need:

- Work on your branding as an employer – employees are attracted to a company that looks like a great place to work. So, there’s value in developing a compelling employer brand that highlights your company culture, values and employee ratings.

- Offer competitive salaries, rewards and benefits – a job is about more than just the salary, but offering a competitive salary and reward package goes a long way to attracting the skilled workers and professionals you need in your team.

- Make professional development a core value – offering the best opportunities for growth and advancement is a great way to retain your existing staff. By working staff development into your company’s DNA, your team can grow along with the business.

- Get on board with remote and hybrid working – many employees have enjoyed the benefits of remote and hybrid working. Embracing flexible working arrangements is one way to appeal to new and existing talent, helping you build an agile, hybrid team.

- Recognise the star talent in the business – acknowledging and rewarding your employees' contributions is an excellent way to boost morale and job satisfaction. Happy employees are far more likely to remain in the business, keeping your team more stable.

Having the best people, talent and skills gives your business the foundations it needs to evolve, grow and diversify. So, overcoming the talent shortage isn’t just a ‘nice to have’. It’s actually fundamental to resourcing your plans and hitting your goals for the year ahead. Contact us with any queries!

How to ride the wave of technological advancements

Thu, 22 Feb 2024 05:10:59 GMT

Technology is changing how we do business. But how do you start this digital transformation? We’ve highlighted five of the big challenges to plan for and overcome.

The rapid technological advancements we're seeing are a double-edged sword for many business owners, presenting both great opportunities and potential challenges.

Adopting and integrating these new technologies is essential if you want to remain competitive, but it requires careful navigation and a clear strategic plan for your tech stack.

5 key steps for transforming your use of business tech

There are solutions for enhancing your bookkeeping, accounting, forecasting, inventory management, project management and a host of other key operational areas. These apps slot perfectly into a custom tech stack that can be tailored and integrated to meet the exact needs of both your industry and your individual business.

But if you’re at a loss as to where to start, it’s a good idea to step back and think in more detail about your digital strategy – and the best ways for you to grab the best tech opportunities.

Here are five important steps to help you start your tech transformation:

- Assess your need for the right technologies – it’s important to think about the relevance and impact of emerging technologies on your business operations. Choose software solutions that meet a genuine need within your business model, and don’t be tempted to jump onto a tech bandwagon just because it’s ‘the latest thing’.

- Train and upskill your staff – you’ll only get the best from new software if your team knows how to use it. Invest in upskilling your employees so they feel comfortable with these new tools and can use them effectively. It’s about reducing any 'tech fear' that some employees may feel and showing them how it makes their job easier.

- Tighten your cybersecurity and reduce risk – the more software tools you use, the more data you’ll hold in the business. Because of this, it’s vital to protect your sensitive customer data and information from cyber threats. This means putting robust security measures in place and keeping up with all the latest security protocols.

- Scale up your IT infrastructure – it’s crucial to check that your proposed tech infrastructure can grow with the business. Any apps you use must be able to scale up as the business expands and volume and demand ramp up. With a properly thought-out tech stack, your systems can grow and scale with you as the business expands.

- Focus on the customer experience (CX) – one of the biggest benefits of going digital is the positive impact this can have on your customer experience. Digital tools help you to personalise the customer journey, interact seamlessly with your customers and use highly targeted marketing and promotional activity to reach the right audience.

Most digital transformations don’t take place overnight. It takes time to switch each area of the business over to a software solution, and this can be an organic process as you find the right tools for the job. However, it does pay to have a sound strategy behind this transformation.

We can help you review your planned tech strategy and advise you on the best apps and tools to combine into your ideal business tech stack.

New QuickBooks Payroll Hub

Wed, 07 Feb 2024 00:33:34 GMT

QuickBooks has launched a new Payroll Hub. Check it out now.

Following the changeover from KeyPay to Employment Hero as QuickBook's built-in payroll solution, QuickBooks has launched a brand new payroll hub with lots of resources to help you get your pays correct.

Knowing the difference between 'responding' and 'reacting' in marketing

Wed, 24 Jan 2024 04:18:15 GMT

Is your business marketing responding to the market? Or are you just reacting to passing trends? We’ll help you understand the benefits of responding smartly to the market.

Marketing moves fast, especially in the digital arena, where the latest trend, app or meme can suddenly become the flavour of the day. But is it always best to jump on the latest bandwagon?

When you’re coming up with strategies and tactics for marketing your business, it’s important to know the difference between responding to the market and merely reacting to the latest big trend, viral social media hashtag or marketing success story.

Let’s take a look at how ‘responding’ and ‘reacting’ differ in marketing – and which strategy is usually the more reliable, long-term approach to take in your business marketing.

How do you respond to your market and customer needs?

Responding to the market is all about understanding the needs and wants of your customers, and then creating products and services that meet those very specific, real-world needs. You're listening to feedback, keeping a close eye on your industry market, analysising your sales data and taking onboard customer requests – while tailoring your company’s offering to the exact needs of this market. The real focus here is to know how your market is evolving, to pay attention to your customers needs and to make sure you’re evolving and flexing your offerings and marketing.

How is reacting to trends different to responding to the market?

Reacting to the latest trend or fad, on the other hand, means creating products/services that are popular at the moment, even if they’re NOT something that your customers actually want or need. You’re following the trend, but at the expense of actually listening to your customers.

This is reactive marketing, and it’s generally a far less effective way to drive your business strategy and promotional activity. When the Barbie movie launched, anything Barbie-related became incredibly topical and popular. Jumping on that hashtag, or tying in your product with the pink and sparkly Barbie theme may have given businesses some short-term attention. But it’s unlikely it drove long-term customers and stable sales and relationships.

Put the customer at the centre of your marketing strategy

Responding to the market is likely to be a far more sustainable approach to your business marketing than simply reacting to the latest trend, fad or viral meme.

Responding is based on sound research, evidence and feedback, and caters to the evolution of the market and the needs of your satisfied customers.

Reacting is just a case of ‘keeping up with the latest hip trend’, without thinking through how it impacts on customers or your long-term strategy.

By getting granular with the needs and wants of your customers, and creating products and services that meet those needs, you can build a loyal customer base who love what you do. That’s far more important than short-term, transitory gains, in the long run.

Get in touch to learn more or have your queries answered!

Can an AI assistant streamline your business?

Wed, 24 Jan 2024 03:45:28 GMT

Does your company need an AI assistant? Our guide to business AI assistants shows you five ways that artificial intelligence (AI) can boost your business efficiency.

A business AI assistant is an artificial intelligence-powered software tool that’s designed to support and enhance different areas of your business administration and management.

These AI assistants (sometimes known as virtual assistants or chatbots) use natural language processing (NLP), machine learning and automation to interact with you, your team and your customers. They can give answers to simple questions and FAQs, perform efficient automated tasks and carry out detailed reviews and analysis of your business data.

How do AI assistants affect your business?

In a busy business environment, having a helping hand to reduce your workload is a huge bonus. AI assistants help you extend your capabilities and productivity, without the need to expand your team. Assistants pick up your key admin, operational and customer service tasks, freeing up your time to focus on high-value customer and business development jobs.

Tailored AI assistants can help in various areas of your business, taking on the heavy lifting while you do what you do best – talking to customers and growing the business.

For example, AI can:

Provide AI customer support – voice AI assistants use NLP tech to talk to your customers. An assistant like Alex from Curious Thing can answer your business phone, offer customer service support, resolve customer queries and answer common FAQs.
Streamline your bookkeeping – tools like Xero and Dext use a mix of optical character recognition (OCR), AI and machine learning to automate the digitalisation of your receipts and the matching and reconciliation of your transactions and bank statements.
Automate your content writing – AI chatbots like ChatGPT and Google Bard help you write professional-sounding marketing and communications materials. With quality prompts, you can generate blogs, emails and advertising content.
Record and transcribe meetings – AI transcription assistants like Otter.ai listen to your business meetings and provide a transcript in an instant. The AI can pull out important action points, summarise the key points and provide a record of the conversation.
Manage your inventory – AI inventory optimisation tools like Remi can help you monitor your stock levels, track sales trends and forecast which products and times you should order in. This keeps your business well-stocked at all times, automatically.

We can help you review your business processes, software systems and productivity goals, to find the ideal places where AI automation could make a difference.

Get in touch , we are here to help.

A business budget will help with your financial decision making

brock@haslam.com.au (Brock Haslam) — Wed, 24 Jan 2024 03:45:25 GMT

Having control over your spending and expenses is a key part of good budgeting. Talk to us about your business plans.

Budgeting is about estimating your revenues, projecting your expenses and detailing the allocation of funds, so you stick to (and don’t overrun) your agreed budget ceiling.

How does budgeting affect your business?

Having a clear, agreed budget gives you a structured framework for your financial decision-making. It’s a practical way to control your costs, monitor performance and adapt your strategic and financial decisions to meet changing economic conditions.

Using budgeting helps your business in a number of ways:

Better control over your finances – budgeting gives you a clear roadmap for managing your company’s finances. Sticking to that budget helps you maintain control over expenses, reduce wastage and make the very best of your resources.
Achieving your financial and strategic goals – your budget helps you to set and track financial goals, making it easier to align your business strategies with your desired goals and outcomes. It’s a great way to boost growth, profitability and debt reduction.
Improved control over your cashflow – effective budgeting helps you anticipate any cashflow fluctuations. That’s a bonus that helps you plan for both lean and prosperous periods, making sure you have the funds to cover expenses and seize opportunities.
Allocating your resources – budgets are useful for guiding how and where you allocate your resources. From your one pot of cash, you can decide whether to prioritize investments, marketing efforts, operational improvements or business growth.
Keep track of your performance – comparing your actual financial results to your budgeted results helps you quickly assess your performance as a business. You can look for variances, make timely adjustments to stay on track toward your goals.

How can our firm help you with budgeting?

Being in control of your expenses, spending and predicted revenues sits at the heart of your financial management, giving you a framework and set budgetary goals to aim for, track against and (hopefully) achieve.

As your adviser, we’ll help you set up budgets for your strategic business plans, with clear tracking and reporting to keep you on the ball and meeting those targets.

Get in touch to chat about budgeting.

Setting goals for you and your business in 2024

Wed, 24 Jan 2024 03:45:19 GMT

If you are reflecting on where you are at and thinking about your business goals for the year ahead, we can help you establish measurable goals for your business in 2024.

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.

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 : Celebrating 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.

Your December quarter activity statement is due soon!

Wed, 24 Jan 2024 03:45:12 GMT

We can help prepare your BAS or review your business accounting systems to make your activity statement lodgement easy, accurate and efficient.

Your December quarter activity statement is due soon.

Make sure you have checked off the following:

- Have you allocated all bank transactions to the correct accounts?

- Have you verified that the bank balance listed in your accounting software matches the balance in your bank account?

- Do you have tax invoices and receipts for all business-related transactions?

- Have you checked the GST tax codes for all transactions?

- Have you checked tricky transactions like agency arrangements, insurance or overseas purchases for GST tax code accuracy?

- Have you got paperwork for asset purchases or new finance arrangements?

- Do you need to include figures for PAYG instalment, fringe benefits tax, or fuel tax credits?

- If you have to report PAYG withholding for employees, you also need to check that your payroll categories and tax calculations are correct for the quarter, (or last month for employers who lodge a monthly IAS).

Checking the figures at each of the BAS reporting labels means your statements are more likely to be accurate and less likely to need GST or PAYGW adjustments at the end of the financial year. Plus, you’ll have a more accurate picture of your liabilities throughout the year and be able to plan accordingly.

Need help?

Talk to us today. We can help you prepare your activity statements or review your business accounting systems to make it easy, accurate and efficient.

Plain English guide to profit and loss

Wed, 20 Dec 2023 05:57:46 GMT

When you’re in control of your profit and loss (P&L), you have a tighter hold on the reins of your profitability. Read our Plain English guide to P&L and learn how to boost your profits.

Here's our Plain English guide to profit and loss and what this report reveals about your finances.

What is profit and loss?

Your profit and loss statement is commonly called your ‘P&L’. It’s also sometimes referred to as your income statement or statement of earnings.

Your P&L is a breakdown of your company’s revenue (money coming into the company as sales and other income) and your expenditure (direct costs, overheads, expenses and other costs).

As a business, you obviously want to turn a profit and make money. Keeping a close eye on your P&L allows you to track your revenues and expenses over a set period, and look for ways to boost your profitability as a business.

How does profit and loss affect your business?

Being in control of your financial management is hugely important for any business. Your P&L is one of the main ways to track and analyse this financial performance.

To manage your P&L effectively, it’s important to focus on:

Revenue management – to keep your revenue (income) healthy, you need to be proactive about generating sales and monitoring your revenue streams. This helps keep your income steady and stable, while also identifying areas for growth and improvement.
Expense control – tracking and monitoring your operating expenses helps you spot where spending efficiencies could be made. Whether it’s overhead costs or inventory overspending, your P&L helps you spot unnecessary costs and boost profits.
Cost analysis – analysing your business costs can help you spot the opportunities for saving money. Whether it’s agreeing a discount for buying in bulk, or switching to a new supplier with cheaper rates, there are plenty of ways to cut costs and be more profitable.
Monitoring gross margin – reviewing the company’s gross margins helps you assess the profitability of each product or service. By pushing up prices, or cutting your production costs, you can boost those margins to drive up profits.
Financial reporting – preparing regular profit and loss statements is key to good financial management. Reviewing your P&L helps you assess the overall financial performance of the company and make better-informed decisions.

How can our firm help you with managing your P&L?

When you’re in control of your P&L, you have a tighter hold on the reins of your profitability.

As your adviser, we’ll help you run regular P&L reports as part of a monthly or quarterly package of management information. We can help you track, review and analyse your revenue and expenses to spot the best opportunities for boosting the company’s profits.

If you’d like to know more about the impact of profit and loss, we’ll be happy to explain.

Get in touch to chat about managing your P&L.

Our guide to business credit scores

Wed, 20 Dec 2023 05:57:43 GMT

Is your business credit score holding you back? Our guide to business credit scores shows you five important ways to get your credit score back on track

Do you know what your business credit score is, and how it can impact your finances?

Your business credit score is a numerical representation of the company's creditworthiness. In other words, how financially reliable the big credit agencies believe your company to be.

In essence your credit score is a measure of your risk to lenders. It's calculated based on your company’s credit history, payment patterns, outstanding debts and other financial data. A higher business credit score indicates lower credit risk, making it more likely for the company to secure favourable financing terms, loans and partnerships.

How does a business credit score affect your business?

Lenders, suppliers and potential business partners use your credit score to assess your company’s financial stability. The higher your credit score, the more likely it is that you’ll be able to meet your financial obligations, honour your credit and repay any loans.

So, having a good credit score isn’t just an arbitrary financial metric – it actually helps you borrow money, fund your growth and find the best customers and suppliers.

To improve your business credit score:

Pay your bills on time – paying your bills and debts punctually demonstrates that you’re reliable and improves your creditworthiness in the eyes of lenders and creditors.
Don’t use all your credit – keeping your credit utilisation low (ideally 30% or below) showcases that you’re responsible with your business finances.
Don’t use multiple credits lines – taking out multiple credit cards and loans can be a red flag for credit agencies and lenders and could underline your credit score
Monitor and correct errors – if you spot any inaccuracies (like incorrect industry SIC or ANZSIC codes), rectify these as quickly as possible to improve your overall credit score.
Maintain long-standing credit relationships – having a longer credit history often demonstrates stability and can help to boost your overall business credit score.

How can our firm help you with your business credit score?

Being proactive about improving your business credit score has multiple benefits. Lenders will be more willing to fund your growth, potential suppliers will be more willing to offer trade credit and your bank will be able to see your financial stability and offer better overdrafts etc.

As your adviser, we’ll be happy to review your current credit report and help you find straightforward ways to enhance your existing business credit score. Get in touch today!

Taking care of data regulation and ticking the right compliance boxes

Wed, 20 Dec 2023 05:57:41 GMT

Your organisation collects huge amounts of customer data - but how do you keep this data safe? We’ve got the lowdown on meeting your data compliance requirements

Your business faces an increasingly complex regulatory landscape when it comes to data privacy, consumer protection and industry-specific compliance requirements.

Keeping on top of these compliance requirements is a complex task. Failing to meet your requirements can have serious implications, with non-compliance (whether intentional or accidental) resulting in legal repercussions and possible reputational damage for the company.

Taking excellent care of your customer data

We live in a digital world, where your organisation collects huge amounts of data from your customers. This includes contact details, financial information, credit card details and detailed breakdowns of their spending habits and buying preferences.

In an effort to protect this data and preserve customer privacy, there are various data regulations that you must comply with.

A sample of these global data privacy laws include:

General Data Protection Regulation (GDPR) in the EU
The Data Protection Act 2018 in the UK
The Privacy Act 2020 in Australia
The Privacy Act 2020 in New Zealand
The Federal Trade Commission (FTC) Act in the USA

Depending on your organisation's home territory, and where you trade, there may well be international, national and local data regulations to comply with. That’s a lot to get your head around, especially if you’re new to business and not familiar with the legal framework.

So, what can you do to make your compliance journey simpler and as effective as possible?

Here are five simple steps to enhance your compliance:

Work closely with legal advisers – compliance can get complicated if you’re not a legal expert. It’s sensible to seek advice from legal professionals, so you understand the specific compliance obligations for your industry and region.
Run regular compliance audits – it’s important to conduct regular risk assessments of your in-house data compliance. This helps your organisation comply with all the relevant regulations and industry standards and stay updated with changes to compliance law.
Protect your customer data – your customers expect you to take good care of their data , both personal and financial. Secure your customer and business data through end-to-end encryption and use of the best data privacy practices.
Deliver regular training and keep your employees up to speed – your team needs to know the latest rules around compliance and what’s required of them. This means running frequent compliance training, so there’s a culture of compliance awareness.
Use the latest data storage solutions – with so much customer data being generated, it’s important to use up-to-date documentation management and data storage software. This keeps the records and data you need safe, organised and easy to access.

Getting a grip on data compliance is a team effort. It’s important to work with legal, IT and data security professionals to ensure your organisation is ticking all the correct compliance boxes.

As your business adviser, we can connect you with experts in all the relevant compliance areas, so you get the advice, support and training you need as an organisation. Get in touch today!

Preparing your business for sale

Wed, 20 Dec 2023 05:57:37 GMT

Hoping to sell your business in the next five years? We’ll help you get your business in order and come up with a sale plan that delivers the best possible sale price.

Selling your business is a big move for any owner. You’ve built this company up, scaled it and put years of hard work into making the business a success story. So, when the time comes to sell, you’ll want to know that you’re getting the best price, and the best future for your legacy.

We’ve outlined five ways to maximise the value of your business, with practical steps for making your company the most attractive prospect on the market.

5 steps to prepare you for a sale

The first thing to underline is that selling a business is rarely a fast process. Most owners will begin planning their sale years in advance, working to an exit strategy that sets out all the key milestones. Your aim is to leave the business in great shape, with stable finances, a solid team and a customer base that will continue to provide solid revenues for years to come.

So, how do you achieve these goals?

Assess your reasons for selling and your desired timeline – what’s the key motivation for selling your business? Are you retiring, looking to move on to other opportunities or hoping to unlock your equity? Once you know your reasons, you can decide on some core goals for the sale, and set a realistic timeline for the sale.
Get your financial house in order – ‘doing your financial housekeeping’ will mean preparing financial statements, submitting outstanding tax returns and making sure you have access to any other documentation that potential buyers will want to see. You may also want to work with an M&A expert to discover the company’s true market value.
Make your business attractive to buyers – any buyer wants to know they’re taking on an attractive business proposition. Making the business feel more attractive means improving your marketing and sales strategies, beefing up your operations and ensuring you have a positive cashflow position. You should also think about creating a transition plan for the buyer, so the handover is as smooth as possible .
Find the right buyer – it’s important to feel like you’re handing your legacy over to the right owner – and getting the price you need. This may involve working with a business broker or marketing your business yourself. Make sure you vet potential buyers carefully to ensure that they are a good fit for your business and your existing team.
Negotiate the sale terms – achieving your desired price could involve a fair amount of negotiation. You’ll need to sit down with your buyer to discuss purchase price, payment terms and other conditions of the sale. Be prepared to compromise and be willing to walk away from a deal if the terms are not right for you.

Talk to us about getting your business ready for a sale

If you’re intending to sell your business in the next five years, it’s important to start planning now. Coming up with a sale plan and a robust exit strategy takes time, as does sorting out the business housekeeping and finding the best possible buyer for the company.

As experienced advisers in many business sales, we’ll help you:

Get organised, locate the relevant documents and improve your record-keeping.
Clean up your business and address any legal or financial issues
Come up with a detailed sale plan and help you market the business
Expand your business network, to find the best buyer for the company

Following these steps will greatly increase the market value and price of your business.

Get in touch to talk about your sale plan.

Happy Holidays!

Wed, 13 Dec 2023 03:19:20 GMT

Happy Holidays to our valued clients. We wish you health, happiness, and new beginnings for the year ahead.

We wish you a very happy Holiday and well deserved end-of-year break.

We are grateful for the opportunity to work with you and be a part of your continued prosperity.

It has been another year of hard work for our clients. We hope you will be able to take some time over the Holidays to connect with family and friends to recharge and relax.

Our office will be closing at 1pm on Friday 15 December and reopening 9am on Monday 8 January .

From your partners at Haslam Consulting & Accounting.

Writing a business plan? Read our guide

Mon, 20 Nov 2023 02:12:15 GMT

A business without a plan is like a ship without a rudder. Read our guide to writing a business plan and find out the major benefits of having a detailed roadmap to follow.

Your business plan is the sat-nav that keeps the company moving in the right direction.

Having that guidance can be a massive benefit to your success as a business. But what elements should you include, and what are the main considerations to think about?

A detailed business plan will generally include

A clear direction for the business – a well-crafted business plan gives you a defined path to follow, outlining the company’s purpose, goals and strategies. This helps everyone understand the business's mission, so you’re pulling in the same direction.
An overview of your financial strategy – your plan will include revenue projections, expense forecasts and funding requirements. This financial guidance gives you the foundations for mapping out your budgeting, cashflow and securing investments.
An overview of threats and opportunities – a robust plan will identify the potential challenges and risks faced by the business. This helps you develop contingency plans for overcoming these challenges, reducing your risk and keeping the company on track.
A summary of your sales and marketing strategy – outlining your sales and marketing strategy helps you target the right audience and differentiate your business in the market. This is vital for winning customers and driving your sales revenue.
Attract the right investors and lenders – a solid business plan enhances your credibility when you’re approaching investors or lenders. A good plan will demonstrate your commitment to the business, your understanding of the market and your ability to achieve long-term success. This is essential for securing investment and funding.

7 steps to creating a plan for your business

There’s no ‘one size fits all’ business plan. Your business plan should clearly outline your goals and how you intend to reach them. As a starting point, this should include how you intend to set up, finance, manage and run your business.

Use the following seven headings to kick-start your planning process. We can help you work through the numbers and strategic thinking to support your goals:

Describe your business idea – what’s the idea and how does it work? Try to have an ‘elevator pitch’ that quickly and simply describes the potential of your idea.
Set out your business goals – what are your objectives for the business? Set out your vision for the business and what your core mission will be.
Outline your ideal customer – do the research to provide an overview of your target market (the people or organisations you’ll sell to).
Do some competitive analysis – who are your competitors? Consider all the possibilities. They may not be in your precise sector but still compete for the same consumer dollar. What is your competitive advantage (the reason they pick you over your competition)?
Perform a business financial analysis – How will you fund your business and can you demonstrate the financial viability of the business idea?
Sketch out your sales and marketing plans – show how you’ll win customers and generate revenue. Consider the 4 Ps of marketing (Product, Price, Place, Promotion). Plan your budget and work out what your return on investment (ROI) will be.
Outline your business structure – give an overview of your organisational structure and your strategic and operational roles as directors.

A well-structured business plan is an essential document, whether you’re a new founder that’s just starting out, or a seasoned business owner looking to grow and diversify.

Your business plan is never written in stone. It’s a dynamic and evolving document that changes as the business progresses. Revising your business plan on a regular basis helps you improve your goals, refine your strategy and adapt to meet changing circumstances and markets.

How can our firm help you with your business plan?

Having a solid business plan is what gives your company direction, structure and meaningful objectives as an enterprise. As your adviser, we’ll help you understand your business goals and vision, and will help you translate this into a watertight business plan. We’ll also help you track your performance against this plan, and will work with you to update the strategy as the business evolves.

If you’d like to know more about business planning, we’ll be happy to explain. Get in touch to discuss your business plan.

Can business automation streamline your business?

Mon, 20 Nov 2023 02:09:29 GMT

Don’t know your automation from your elbow? Our guide shows you how automating your systems is the key to scaling up your business.

How can business automation streamline your business? Business automation uses technology to streamline and simplify all the repetitive manual tasks, processes and workflows that are part of the everyday running of your business.

Instead of spending hours of business time doing everything manually, automated systems can take on most of the heavy lifting. You can automate the data-entry of your bookkeeping, the sending of recurring invoices or the coding of transactions when doing your bank reconciliation – basically, any task that’s repetitive, rule-based and taking up your time.

Automation makes your processes faster, more accurate and more efficient. This frees up your time to focus on other important strategic and customer-facing tasks. It also means you can get more work done in less time, making the business more productive and profitable.

How does business automation affect your business?

Smart use of automation can give your small business a major boost. Instead of having to hire more people, you can grow the business and significantly reduce the admin workload for your existing human team. It’s the easiest way to set the foundations for scaling up the company.

By automating key areas of your operation, you can:

Streamline your workflows – business automation optimises your processes by automating tasks like data entry, payment collection and approval workflows. This reduces the manual effort that’s involved and boosts your operational efficiency.
Improve your process accuracy – automation cuts down on human errors by applying rules consistently and precisely. This means your financial calculations are more accurate, data is of a higher quality and the company has better compliance standards.
Save time and resources – all those tedious, repetitive manual tasks are now automated. This frees up valuable time for you and your team to focus on strategic activities, innovation and working more closely with your customers.
Become more cost-efficient – automation cuts back the labour costs that usually go hand-in-hand with manual tasks. You’re more productive, your operational costs are reduced and you don’t need any additional staff to grow the business.
Scale your business with ease – as your small business expands, automated systems are the special sauce that helps you scale up as quickly as possible. You can effortlessly meet the increased workload, grow your systems and stay agile and adaptable – two of the key skills for any ambitious business that’s looking for fast growth.

How can our firm help you with business automation?

Working automation into your business strategy is the fastest way to achieve your key goals.

With your main tasks and processes automated, you have a sleek, systemised business to drive your growth. And we’re always here to help you maximise this use of automation. We’ll help you review your operations to look for the automation opportunities – and can suggest the most effective software automation tools to add into your tech stack.

If you’d like to know more about the benefits of automation, get in touch here .

10 hot questions to ask yourself as a business owner

Mon, 20 Nov 2023 02:09:23 GMT

Want to push your business to the next level? We’ve shared 10 hot questions to ask yourself as a business owner, with advice on how they will drive your growth and success.

Running a busy and successful business means you often don’t have the time to step back and work ON the business. This can be a challenge if your aim is to grow and scale the company.

As experienced professional business advisers, we know the value of taking the time to ask yourself some pertinent questions. Holding yourself and the business to account is something we can help with. And there's never a bad time to pose a few questions and gauge where you're at with your planning, strategy, financial management and personal goals as an entrepreneur.

We've pulled together 10 hot questions to ask yourself as a business owner.

1. Can you explain why a customer should choose your brand over another?

Knowing your value to a customer is vital if you’re going to market your offering in the most effective way. Think about why your brand stands out in the marketplace, and what opportunities and threats exist. This is the fastest way to tailor your brand to meet customer expectations.

We can help you by running a SWOT-based analysis of your business.

2. How happy is your workforce?

Your people are such a vital asset, but they won’t work well if they’re dissatisfied and disengaged from your business values. Ask yourself, are your employees motivated and engaged by your mission? Is there anything you can do to boost this engagement?

We can review your people strategy and the staff benefits you offer to your employees.

3. Are you meeting your cashflow goals?

Are there specific costs or inefficiencies that are holding you back from achieving a positive cashflow position? Ask yourself if your financial management is up to scratch. Identify your failings and tighten up your cash process.

We can review your cash management and look for efficiencies and cost-saving opportunities.

4. What keeps you awake at night?

It’s a stressful role being the boss, and there’s likely to be a lot playing on your mind. Consider whether there are any recurring business issues that are holding you back, or unexpected pitfalls that have appeared along the course of the business journey.

We can offer you seasoned advice whatever the issue, with resolutions to ease your worries.

5. Are you embracing everything that tech and AI has to offer?

Technology is moving fast with AI solutions and digital systems now an integral part of many business models. But are you doing enough to bring your business into the digital age? Are there tasks could you automate, or processes you could streamline?

We can suggest a suite of apps, software tools and digital solutions to boost your business.

6. Is growth part of your business strategy?

Not all businesses are focused on growth, but outlining your key goals around growth is an essential part of your business strategy. Ask yourself whether you want to scale at speed, or grow organically. Or whether you’re happy to be a boutique business that keeps things small.

We’ll help you define your growth goals and build a strategy that aims for success.

7. Do you have the numbers you need at your fingertips?

So much of what you do as a business is driven by data. But are you getting the overview you need of your important business metrics and key financial numbers? Think about where you need detailed data and metrics, and how this could put you in better control of the company.

We can help you expand your reporting and management information, so you have a better eye on performance, spending, cashflow and sales targets etc.

8. Have you identified your ideal customer?

Identifying your ideal customer is something every startup and new business should do. But when was the last time you updated your ideal customer outline? Think about who you’re selling to, how this audience has evolved and whether they are still the right customer to target.

We can run detailed customer profiles to help you pinpoint the best customers to target.

9. Have you thought about where your business will be in five years?

When the business is busy, the temptation is to focus on the now and to put your energy into fighting the most pressing fires. But without a forward-looking focus, you can lack direction. Ask yourself where you want to be in five years and how you plan to achieve these goals.

We'll help you create a detailed five-year plan, to give your journey more impetus and direction.

10. Are you planning for your own financial future?

You obviously spend a lot of your time thinking about your business – but how much time have you spent considering your personal financial future? Think about your life goals and how you plan to fund them, and where this money is likely to come from.

We can advise you on wealth planning, tax planning and the advantages of good all-year-round financial management.

Talk to us about running a health check for your business

If these questions have got you thinking about your business efficiency and growth plans, that’s a good thing. If you’d like to take this process further, we’d advise running a detailed health check for your business and your personal finances.

Book a meeting with us to talk through your goals, aspirations, challenges and strategy, so we can help you take the next step in your journey to entrepreneurial success.

Get in touch to book a health check.

How much should you pay yourself?

Mon, 20 Nov 2023 02:09:16 GMT

As a business owner, how much should you pay yourself? It depends on how much your business can afford, market pay rates, and whether reinvestment could pay dividends.

Being the boss means you get to make all the big decisions about your business – including how much to pay yourself in wages, salary or drawings.

As the owner, you might need to underpay yourself in the early stages of building your business, so you can reinvest the profits. But your time is valuable – and you need enough money to pay the bills. So how can you find the right level of pay? It has to be enough to keep the mortgage paid, while also building a thriving business.

If you’re trying to decide how much to pay yourself, here are a few questions to ask yourself:

What can the business afford? - You need to leave enough cash in the business to keep it ticking along, pay your basic costs, and meet your tax obligations. Once you’ve considered all those outgoings, how much does that leave you as a potential salary? We can help you work out what that number is, so you can establish a sustainable rate of pay.
What’s the market rate for your role? - What would you have to pay someone to do the work you’re undertaking in this business? Maybe you wouldn’t actually be able to find anyone to work the same long hours, but if you were hiring someone with your experience, to do the same sort of work for 40 hours a week, what would they expect to be paid? That number is a good starting point for thinking about your own salary or drawings. If you’re being underpaid, it’s time to think about ways to grow your profits. If you’re being overpaid, congratulations on building a highly profitable business!
Could reinvesting profits grow your income faster? - You can take all the profits out of your business, which should give you a strong and sustainable income. Or, could you reinvest your profits and grow the business faster, leading to a higher income in the long-term? You might choose to spend some of your profits on advertising, a better website, or developing a new offering, for example. Or you could pay for assistance in some area of the business. If the investment leads to higher growth, it might be well worthwhile.

We’ll help you run the numbers

We can help you figure out how much your business can afford to pay you, analyse the potential gains of a business investment, or weigh up the pros and cons of hiring someone to help you.

Get in touch , we’d love to hear from you.

Should you buy a building for your business?

Mon, 20 Nov 2023 02:08:47 GMT

Should you buy a commercial premises for your business and say goodbye to your landlord? Or is the flexibility of leasing more valuable? We consider the pros and cons.

Tired of paying rent for your commercial premises and considering buying a premises for your business?

Owning a building works best if your business is well-established, you have money to invest, and you’re taking a long-term approach – it can take many years for this decision to pay for itself.

The advantages of owning a commercial property

You no longer need to worry about dealing with a landlord. You’re the landlord now, so your lease won’t end and you get to make all the decisions about how the premises is used. If you want to make changes to the fitout, it’s up to you.
You don’t have to worry about rising rent. Eventually, owning a premises will be cheaper than leasing. When you continue leasing, you can expect the rent to keep going up – sometimes the jump may be substantial.
If your business moves or closes, you still own the building. This can be a highly valuable long-term asset, depending on the type of building and the potential tenants.

The advantages of leasing your business premises

Leasing gives you more flexibility. You can move if your business gets too big for the space, or downsize if more people are working from home.
You don’t have to worry about paying building expenses like rates, warrants of fitness, and insurance.
Your rent is likely to be lower than the servicing costs for a commercial property loan, boosting cashflow so you have more to invest in the growth of the business.
The landlord will take care of repairs and maintenance on your building – when there’s a leak, for example, it’s not your problem.
Commercial buildings are typically expensive and financing is costly, so you’ll need to do plenty of research before you decide to make a purchase.

We can run a cost-benefit analysis

Could buying a building be the right choice for your business? We can work with you to analyse the costs and benefits of each option, to help you make an informed decision about which one will put you on track to achieve your goals.

Get in touch today, we’d love to hear from you.

How can small businesses compete with the big chains?

Thu, 19 Oct 2023 02:42:17 GMT

How can your small business compete with the big multinationals? Here’s how to maximise your boutique appeal to retain existing customers and draw in new ones.

In tough economic times, small businesses can struggle. Big multinational chains often have the scale to undercut local competitors and survive even when times get tough.

What can small businesses do to retain and attract customers in a competitive market?

Identify your business’s advantages

Think about what your business can offer that a multinational operator cannot. For example, you might have the edge on:

Local knowledge
Close relationships with customers
Personalised service
Easier parking
Specific products and services
Immediate availability of products
An excellent loyalty scheme
Community support
Local events

If you’re not sure what your big selling points are, ask your customers.

Show off your advantages online

Leverage your business’s selling points through your online presence. While it might be prohibitively expensive to build a whole new office or store frontage, your online shop-front can be impressive at a fraction of the price.

Step up your social media activity, paying particular attention to sites where local people are active. Invest in outstanding photography, too.

Invest in reviews

Can you find a way to nudge your best customers into providing online feedback? Positive reviews are a vital tool for small businesses to grow their customer base.

Make it easy for people to leave reviews – send them an email reminder with a link included.
Address negative reviews immediately and professionally.
Consider an incentive to provide a review, such as a free extra item immediately or a $5 discount code off their next order. Alternatively they could go in the draw to win a bigger prize. This may also encourage them to shop with you again.

Be boutique

Lean into being small. Customers are willing to pay more for businesses that employ great people, provide quality service and a high-end experience. Invest in providing a polished experience for all your customers.

Appeal to ethical customers

Many shoppers are happy to pay more for sustainable, ethical products and services. Have measurable sustainability credentials and show them off whenever you can.

Small Business Instant Asset Write-Off This Financial Year

Thu, 19 Oct 2023 02:42:09 GMT

Are you looking to purchase assets for your business? Eligible businesses can spend up to $20k per asset and immediately claim the tax deduction and GST.

If your business is eligible, it may benefit you to claim an immediate deduction for business assets bought and used this financial year. This means you claim the entire expense of the asset rather than depreciating it and apportioning the cost over a number of years.

In the May 2023 budget for the 2024 financial year, the proposed instant asset write-off threshold was announced as $20,000. While the measure is not yet law, we don’t anticipate any problems with this law passing.

The $20,000 threshold applies to each asset so you could claim a tax deduction for multiple assets in the same financial year.

Can You Claim the Instant Asset Write Off?

If your business has an aggregated turnover of less than $10 million, you can claim the total cost of eligible assets. Assets must be installed and ready for use between 1 July 2023 and 30 June 2024. The payment for the asset may be in a different tax year.

Whether you are on a cash or accrual basis for your BAS will govern which period you claim applicable GST within.

Some businesses and types of assets can't be claimed immediately – talk to us if you’ve got lease arrangements for assets you’ve bought, horticultural plants such as grapevines, research and development assets, or you're in the building and construction industry. Some types of software and improvements to assets are also excluded. Assets costing more than $20,000 are treated differently.

And remember – you can only claim a business deduction for business use of assets – if you use an asset for both personal and business, you’ll need to apportion the percentage of usage between the two.

Keep your Records!

Remember to keep all your business records for at least five years, including all asset purchase and installation documents.

Talk to us about purchasing assets for your business – should you purchase now or later? With existing funds or through a loan? We’ll help you plan the best strategy to look after your cash flow.

Plain English Guide to Cashflow

Thu, 19 Oct 2023 02:42:06 GMT

Positive cashflow is the beating heart of your business. Dive into our Plain English guide to cashflow and find out how to get in complete control of your cash position.

Why is cashflow so central to good financial management? Here's our plain english guide.

What is cashflow?

Cashflow refers to the movement of money into and out of your business over a specific period.

In the most basic terms, cashflow is the process of cash moving out of the business (cash outflows), and cash coming into the business (cash inflows). The ideal scenario is to be in a ‘positive cashflow position’. This means that your inflows outweigh your outflows – i.e. that more cash is coming into the business than is going out.

When you’re cashflow positive, the main benefit is that you have the liquid cash available to fund your daily operations and debt payments etc.

On the flip side, if you’re in a negative cashflow position, this can be a red flag that the business is facing some financial challenges – and that some serious cost-cutting and/or revenue generation is needed.

How does cashflow affect your business?

Not having enough liquid cash is one of the biggest reasons for companies failing. So it’s absolutely vital that you keep on top of your company’s cashflow position.

Five key cashflow areas to focus on will include:

Monitoring your cash inflows and outflows – this means regularly tracking your cash inflows from sales, loans and investments, as well as managing your cash outflows from expenses, purchases and debt repayments.
Managing your account receivables and payables – efficiently managing your customer receipts and supplier payments helps smooth out your inflows and outflows – and delivers stable cashflow that’s easier to predict and manage.
Getting proactive with your budgeting and forecasting – creating realistic cashflow budgets and forecasts helps you predict your future cash position. By anticipating your future cash needs, you can actively plan for potential shortfalls or surpluses.
Being in control of your stock inventory – having excess stock in your warehouse ties up cash. So, it’s a good idea to optimise your inventory levels and to only manufacture/order the items you need on a day-to-day basis.
Investing in your cash reserves – with emergency cash reserves in the bank, you know you have the funds to handle unforeseen cashflow issues or sustain your operations during lean periods. This makes your whole cashflow position more stable.

How can our firm help you with cashflow management?

Positive cashflow is the beating heart of your business. Working with a good adviser helps you keep that cashflow healthy, stable and driving your key goals as a company.

We’ll help you keep accurate records, track your inflows and outflows and deliver the best possible cashflow position for the business.

Get in touch to chat about improving your cashflow.

5 vital things to set up before you pass away

Thu, 19 Oct 2023 02:41:58 GMT

Thinking about end-of-life planning might sound morbid. But by planning ahead, you remove the worry and hassle for your loved ones and secure your long-term legacy.

No-one wants to spend too much time thinking about their own mortality. But the reality is that forward planning removes a lot of the uncertainty for your loved ones in the event of your death. The following guidance may also be useful to help you guide others.

Passing on without any clear legal instructions regarding your finances, assets and estate can leave your nearest and dearest in a very difficult position. It’s far better to make plans well in advance and to have these documents safely stored away, should they be needed.

Here’s our five-point checklist of things to consider as part of your end-of-life planning.

Having a clear outline of your end-of-life wishes and planning

Yes, it may seem morbid to think about your own death. But with your affairs in order, and all the required legal documents in place, you can be confident that your end-of-life wishes will be carried out correctly and that your loved ones and dependents will be provided for.

Here are five vital elements to include in your end-of-life planning:

Make sure you have a last will and testament – it’s crucial to create a last will and testament. This legal document will state your wishes regarding the distribution of your finances and assets and will also appoint an executor. This executor will ensure your wishes are carried out accurately and efficiently and will manage your estate plan to deliver on your instructions re charitable donation, gifts and your legacy.
Set up power of attorney and health directives – you can choose to grant a trusted individual (or individuals) with the power of attorney (PoA). This PoA allows them to handle your financial matters and make decisions on your behalf. It’s also a good idea to establish health directives, such as a living will or medical power of attorney, to ensure your medical preferences are followed.
Create a funeral plan to cover these costs – funerals can be expensive and a financial burden for those you leave behind. You can ease this burden by arranging a funeral plan in advance, and setting up an insurance policy that sets funds aside to cover the costs. Preparing for funeral costs in advance alleviates the financial strain on your family and allows them to grieve without worrying about payment of the funeral.
Get your taxes in order – it’s important to organize your tax records and consult with a tax professional to make sure your tax affairs are in order. Setting aside funds to cover any potential tax liabilities is also sensible. This will prevent complications for your loved ones during the settlement of your estate and tax liabilities.
Think about digital legacy planning – in a world where so much of our life is lived online, it’s vital to have a digital legacy plan. This comprehensive plan will provide information and guidance regarding your digital assets, including compiling a list of online passwords and account information. It’s a good idea to name a digital executor in your will to manage and transfer your digital presence. This will help with social media accounts, but also software subscriptions or any online accounts you hold.

Talk to us about getting your end-of-life planning in order

When it comes to end-of-life planning, there’s no time like the present. The future can often be uncertain, so it’s good practice to have your will, estate plan, powers of attorney and digital legacy plan set up and safely stored away, should they be required.

As your adviser, we can help you review your financial and tax planning considerations and can put you in touch with the relevant legal advisers to create a comprehensive end-of-life plan.

Understanding Your Profit and Loss Statement

Tue, 26 Sep 2023 01:34:31 GMT

Would you like to know more about the relationship between costs and revenue to make better business decisions? Book a session today to examine your financial reports with our experienced business advisors.

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.

Income or Revenue

Income primarily includes main business activities such as sale of goods or services. Other income such as interest received, capital gains or income from secondary business activities is also reported.

2. Expenses

Expenses are usually divided into two sections: direct costs, or cost of goods sold, and expenses. Cost of goods are those that are directly linked to the provision of services or sale of goods. For example, if you buy widgets from a wholesaler and sell them at a marked-up value, the cost of the widgets is a direct cost, not an overhead expense.

Other types of direct costs might be importing and freight costs, contractor costs or certain equipment. Some direct costs are fixed, that is, they are the same from month to month, or they could be a fixed percentage of sales; others vary in value but are still related to the income producing activities.

Overhead expenses are all the other expenses required to run the business, regardless of the level of income: for example, rent, utilities, bank fees, bookkeeping fees, professional development costs, vehicle costs and staff costs. Many of these costs form the basis of working out your break-even point, or how much it costs just to open the doors for business.

There are some expenses which may be reported as a direct cost in one business but an indirect cost in another type of business, for example, merchant fees or contractor costs.

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

What does your P&L tell you about relationships and ratios between sales and expenses, seasonal changes and annual trends?
Have all your direct costs been allocated correctly?
Have you recouped all billable expenses from customers?

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.

Strategic business partnerships: the benefits of working together

Tue, 26 Sep 2023 01:34:25 GMT

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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 your 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 serve a shared customer base

Strategic partnerships 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 complimentary way of meeting their needs, that creates a broader, more connected way of growing both companies.

Finding a company that’s interested in forming a strategic alliance

Find partners in complementary sectors – if you’re an accounting firm, like us, it makes sense to partner with solicitors, lawyers and other professional services providers who can help your clients. If you're a maker of shoes it makes sense to partner with a clothing manufacturer that shares your same sense of style and purpose. The key here is to find a shared audience or customer need, and to create some real synergy between your two businesses.
Take part in business networking and events – to get a wider understanding of your local, or industry specific, business network, it’s worth taking part in plenty of online and offline business events. You’ll meet new people, hear about new brands and will find it easier to find your ideal strategic partner. The wider your business network, the more choices you have for an alliance.
Look at crossover between your target audiences – once you’ve found a potential strategic partner, it’s important to take a detailed look at the crossover between your partner’s audience and your audience. Do they shop through the same channels? Do they fit a certain age group or social demographic? Are these customers local, or are they part of a national or global online customer base? How large is their database?
Cross-reference your customer databases – by sharing and comparing your client relationship management (CRM) data, you can cross-reference both sets of customer data and see where there’s overlap, or where you may already share some of the same customers. The better you understand each other’s customers, the more likely it is that you’ll find some common ground for shared marketing and promotion.
Run joint events and promotions – presenting joint webinars with your strategic partner, or running joint promotions. By finding a common theme, you bring both audiences together and reinforce the alliance between your two brands. You also reduce the expenditure by sharing the costs and reach a wider audience.
Combine your R&D efforts – to move your alliance forward, you can also try combining your research and development (R&D) activity, to find new products, new services and new ways of keeping your joint customers happy. By sharing the time, costs and effort of developing new offerings, both companies will benefit – and you keep your businesses at the cutting edge of their respective sectors or specialisms.

Get in touch for more tips and advice surrounding business partnerships.

3 cloud accounting tips to save your business time and money

Tue, 26 Sep 2023 01:34:20 GMT

Accounting tasks don’t have to eat into your business time. With the right cloud accounting software, you can save time and money – while also getting tighter control over your finances.

Keeping on top of your accounts is a big part of running a successful and profitable business. But you don’t want to spend ALL your time dealing with accounting tasks, especially when that time could be spent building customer relationships, or developing new products etc.

So, how do you keep your finances in check, while also spending less time on your accounts?

1. Bringing your accounting into the digital age

Switching to cloud accounting can be a revolutionary step for many business owners, especially when you look at the ways you can streamline and automate the basic accounting tasks. By using accounting platforms like Xero, QuickBooks, MYOB or Sage, you get all the basics of small business financial management, but with the benefits of smart automation.

With most modern cloud accounting software, you can:

Automate the scanning and digitisation of your expenses and receipts
Automatically reconcile your bank transactions with your invoices and bills
Connect your accounts to other time-saving apps for mileage claims or staff expenses.

2. Getting paid faster and with less admin

With a cloud accounting platform driving your business, you also make it easier to send out e-invoices and get paid faster and more effectively. Improving your payment times and cash collection can make a huge difference to your cashflow position, and also sets the right expectations with your customers – making it clear that you require to be made on time.

Using the invoicing function in your business software, you can:

Quickly send out electronic invoices as soon as a job is completed
Set up automated invoices to be sent out at pre-agreed points in a project
Include payment buttons on your invoice, so customers can pay via PayPal or card
Remove the barriers to payment and speed up payment times.

3. Getting a better overview of your important numbers

Using cloud accounting isn’t just about automating the time-consuming financial admin tasks. By recording and tracking all the financial and non-financial data flowing through your system, your accounting platform can actually provide you with a goldmine of useful real-time information.

With cloud accounting providing your reporting, you can:

Access totally up-to-date real-time information, to improve your decision-making
Track your performance against targets to see how well the business is performing
Monitor spending and budgets to keep your cashflow under control
Understand your return on investment when it comes to sales and marketing activity
See how promotion has driven sales but reduced your profit, due to discounting.

Talk to us about setting up a more productive kind of accounting

If you want complete control of your finances and business decision-making, updating your accounting software and processes will be key to achieving that goal.

We can help you decide which accounting software is most suited to your business, and how to maximise the benefits you get from automation and real-time data.

Get in touch to talk through updating your accounting.

Which business expenses can you claim against tax?

Tue, 26 Sep 2023 01:33:47 GMT

Want to cut your business costs? We’ve highlighted the business expenses that can (and cannot) be claimed against your ATO tax bill.

Incurring expenses is an unavoidable fact of running a business. But which expenses can you claim tax deductions against and which don’t meet the tax-free criteria?

Here’s our lowdown on which expenses you can claim against tax.

Which business expenses can you claim deductions against?

If your business expense is directly related to earning your assessable income then you should be able to claim a tax deduction against this particular cost.

For example, everyday business expenses that you may be eligible include:

Your day-to-day operating expenses
The purchases of products or services you’ve made for your business
Certain capital expenses, such as the cost of depreciating assets like machinery and equipment used in your business.

The amount of a deduction (and when you can claim it) will vary, based on the type of expenses you’re claiming. You can find out more on the Australian Tax Office (ATO) website here .

There are three basic rules for checking the your expense claim is a valid business deduction – and that it won’t be challenged by the ATO.

The expense must have been for your business, available as an allowable deduction and not for private use.
If the expense is for a mix of business and private use, you can only claim the portion that is used for your business.
You must have records to prove that the expense was incurred.

Which business expenses can you NOT claim?

As we’ve explained, you can claim a deduction against most business expenses that are incurred as part of your day-to-day revenue-generation activities. But there are some business expenses you cannot claim against tax.

These non-tax-deductible expenses include:

traffic fines you receive
private or domestic expenses, such as childcare fees or clothes for your family
expenses relating to earning income that is not assessable
Non-compliant payments – payments for which you have not met your PAYG withholding or reporting obligations -
the GST component of a purchase if you can claim it as a GST credit on your business activity statement.
Generally you cannot claim a deduction for the cost of capital assets that are dealt with under the capital gains tax rules, although there are some exceptions.
Your deductions may be limited for expenses incurred in relation to personal services income (PSI) if the PSI rules apply to that income.

Talk to us about reducing your business expenses

This isn’t an exhaustive list of tax-deductible expenses. There will be various ways to claim your operational expenses against the relevant reliefs and incentives offered by the ATO.

If you’re looking to cut back your costs and improve your tax efficiency, we can help. Talk to us about your regular operational expenses and tax costs and we’ll work with you to find the important reliefs, incentives and allowances that can be claimed.

Get in touch to start reducing your expenses.

5 questions to ask when you are buying a business

Mon, 04 Sep 2023 05:16:03 GMT

Thinking of acquiring a company? Whether you’re a new entrepreneur, or a seasoned business owner, we’ve got the key questions you need to ask prior to the purchase

Purchasing an existing company is a great way to expand your business empire. You can buy out a close competitor, or dip a toe into a new industry and expand your reach as a business group. But whatever the reason for the acquisition, you need to ensure you’re not buying a lemon!

Doing your research is a crucial part of the purchase process. As is asking some probing and insightful questions to help you determine if this acquisition is a good (or bad) idea.

Questions to ask before you make an offer

Buying another company is a major business decision. It’s a large outlay of capital and a big responsibility to take on. If you’re going to take the leap, it’s important to make sure the company in question is stable, well-managed and has a good future ahead of it.

Here are five vital questions to ask before entering into a purchase:

Why is the business for sale? There are many reasons why an owner might want to offload a company, not all of them good. Their sales may be dropping, they may have rising debts, there may be internal problems with staff or the market for their product/services may be coming to an end. Find out why, so you don't buy a clanger.
Is this a good industry to step into? Do your research on the industry, competitors, and marketplace that the business currently trades in. It's important that you step into an industry sector that has potential for sales, growth, stable revenues and potential profits. With volatile markets post-pandemic, looking at predictions and forecasts for your chosen industry niche makes good sense and helps you make an informed decision.
Have you done your due diligence into the business? Do your due diligence to make sure there are no financial, legal or HR skeletons in the cupboard that may jump out to surprise you. Is there an unpaid tax bill? Are there loans that are being defaulted on? Are there any legal cases being brought against the company? Has the business filed all its returns and accounts? As the new owner, any of these issues become your responsibility, so you want to check out the company’s records and history in as much detail as possible. This will prevent some major headaches further down the line.
Does it have an existing business plan? You'll need a business plan that takes the company forwards and gives you a pathway for your next steps as the owner. Is there a business plan you can use? When was the plan last updated? How well are they tracking against the milestones in that original plan? No business plan is written in stone, so you’ll almost certainly need to review, update and refine this strategy post-acquisition.
Are your management team and staff up to scratch? When you buy the business, you'll usually also be inheriting the team behind that company. Do you have a management team with the skills, experience and motivation that's needed? Are your employees engaged and do you have a big enough team to meet your own goals for the business? This team will be vital to your future success, so you want the best possible people and talent behind you as you steer a new course for the company.

Talk to us if you’re considering buying a company

Purchasing a company can be a complex and protracted process, even once you’ve completed all your due diligence and background checks. If you’re in the market for a business acquisition, do come and talk to us, so we can help you sort the top deals from the big risks.

We’ll help you complete the relevant checks and will work with you to create a new business plan and strategy that’s designed to turn your new purchase into a business success.

Fringe Benefits Tax and Business

Tue, 22 Aug 2023 03:19:45 GMT

Do you offer your employees benefits in addition to salary and wages? If so, you may need to report FBT. Fringe benefits can help employees reduce their taxable income but you need to take care of the admin. Get in contact to learn more.

Benefits provided to employees or their associates in addition to salary or wages are known as fringe benefits. These benefits are paid for by the employer from pre-tax earnings, making the provision of benefits attractive to employees as it may reduce their taxable income while receiving payment in other forms.

Fringe benefits tax (FBT) may apply based on the type of benefit provided.

Tax is payable because the benefits are a different form of payment by an employer instead of salary and wages. The tax is calculated on the taxable value of the benefit, which reflects the grossed-up salary the employee would have had to earn to pay for the benefits from post-tax earnings.

Employers can generally claim a tax deduction for the benefits and related FBT payable.

Types of Benefits

There are many different types of fringe benefits employers may provide to employees. These include:

Vehicle owned by the business provided for private use
Vehicle lease arrangements
Car parking
Entertainment, such as golf club membership or tickets to major events
Expense payments, such as credit cards or health insurance
Other types include debt waiver, living away from home allowance, or property benefits.

Some benefits provided to employees don't attract FBT. If you pay for expenses that an employee would otherwise have been able to claim as a work-related tax deduction, FBT won't apply. For example, if you pay for employees to attend a professional development course, there won't be any FBT liability on this benefit.

FBT Administration

The fringe benefits tax year runs from 1 April to 31 March. You must then include the reportable amount for each employee on their Single Touch Payroll finalisation by 14 July, so it flows through to their annual income statement.

As with all business transactions, keeping accurate records is essential to determining whether FBT applies or not and how much needs to be included on the employee's income statement, if any.

If you're interested in seeing how fringe benefits might apply to your business, talk to us about FBT registration and administration. We can advise on the types of benefits available, how much tax is payable or how to reduce the FBT liability. We'll also get your bookkeeping software set up to make record keeping easy.

The vaule of a good UX: user experience

Tue, 22 Aug 2023 03:14:53 GMT

Is your user experience (UX) in need of a refresh? We’ve summarised four of the core areas to focus on and how reviewing them will lead to a far better UX for your customers.

Your end users are the life and blood of your business. They’re the drivers of your relationships, sales, income and end profit. So, having a good user experience (UX) isn’t just a ‘nice to have’, it’s actually a critical requirement for any ambitious business to aspire to.

Understanding what your ‘UX’ is, and how it can be improved, is vital business knowledge. So, let’s dive in and find the important UX areas you should be focusing on.

4 ways to enhance your UX

Your ‘user experience’, or UX for short, refers to the ways your customers and prospects interact with your products and services. It’s about how they engage with your website. How easy it is to order an item and navigate your online store. And it’s the ways your end users interact and communicate with your people during post-sales support stages too.

In short, a business with a good UX will design its interface, processes and support teams to make the buying process as simple as possible. Your end users want to be able to find your products and/or services easily, understand the value they offer and buy these goods, hassle-free.

In the spirit of improving your UX, it’s vital to constantly review and assess the way your business works. This helps you meet new customer needs and keep your UX fresh.

Areas of your UX to focus on can include:

Researching your users’ needs – think about conducting detailed user research to help you understand your target audience's needs and preferences. With plenty of information and data about your users’ needs, you can make sure your UX design aligns as closely as possible with their expectations.
Streamlining your navigation – if you streamline your online navigation and minimise the complexity, you make your end user’s life easier. By using intuitive interface design, clear information architecture and logical user flows you help to simplify the user’s journey. This gets them to the products and services they’re interested in, and does it fast, with minimal user interface (UI) frustrations, hassle and time-wasting
Optimising your digital performance – getting the optimum performance from your website, solutions and apps is vital. Users want fast loading times and responsive interactions when browsing and using your digital services. By making loading times and responses as fast as possible, you create a frustration-free user experience – and that makes it far more likely that customers will buy your goods and services.
Gathering constant user feedback – it’s important to know what your end users think about your current UX. Good practice means continuously gathering user feedback and analysing metrics for user performance and satisfaction levels. Armed with this goldmine of user data, you can upgrade your existing UX design and bring about a process of continual improvement. It also helps you to tailor your UX precisely to the needs of your audience, creating upgrades and new functionality that keeps customers happy.

Talk to us about improving your current UX

An external pair of eyes is helpful to improve your user experience. We can help you look for the opportunities to review, analyse and enhance your UX for future success.

The true cost of a new employee

Tue, 22 Aug 2023 03:02:49 GMT

Not paying enough can be surprisingly expensive – the cost of replacing an employee can be much higher than providing a reasonable salary boost.

When you’re calculating pay rises, it’s important to think about more than just how much you can afford. You also need to consider the true cost of replacing that employee.

Low pay rises can be unexpectedly expensive

It’s surprisingly common for businesses to offer low pay rises, only for workers to feel undervalued and resign. The employer is left with all the upfront costs of replacing them, plus paying the salary, plus training the new employee and lost productivity as they learn the ropes.

Some estimates put the cost of a new employee at around 40% of their salary and a 2021 Australasian survey put the price at an average of $23,860 per worker.

Overall, that low pay rise could cost your business a lot more than you bargained for.

Not paying enough might just cost you an employee

If you run the numbers you’ll see the impact that an insufficient pay rise can have. Let’s say you employ Ashley, an office manager who is paid $60,000. You offer Ashley a 4% pay rise, which will cost you around $2,400 more each year. With inflation running at over 7%, Ashley feels this isn’t enough and finds a job paying $68,000 almost immediately.

If you had provided Ashley with a 10% pay rise, it would have cost you around $6,000 more each year and you would still have your employee. Finding a new employee could cost you $20,000 or more.

Running the numbers

Make sure you understand salaries in your industry, and think about inflation, when you calculate pay rises. Also consider how easy it would be to replace the person and how much value they bring to your business. And think about extra benefits you could offer a valuable team member: do they want more flexibility or a four-day week?

We can run the numbers for you before your remuneration reviews or if you are looking to hire. This online calculator from Business.govt.nz might be helpful to give you an estimate.

If you have any questions about pay rises or hiring this year, get in touch – we’d love to hear from you.

5 challenges for small business - and how to beat them!

Thu, 17 Aug 2023 03:40:26 GMT

Want to know how to beat the most common business challenges? We’ve highlighted five common challenges and the simple ways to overcome them.

Founding, building and growing your own small business is a hugely rewarding experience for many entrepreneurs. But the road ahead isn't always smooth.

There are common challenges that crop up and ongoing issues that need to be factored into your business plan, your strategy and your own personal thinking.

So, what can you do to beat these challenges and make the journey as frictionless as possible?

5 proactive ways to overcome your business challenges

We’d all love to know what lies around the corner when it comes to the future path of your business. The truth is that every business journey is unique. But there are common challenges that every owner-manager or CEO will be faced with – and being prepared for these hurdles is the best way to leap over them and take each challenge in your stride.

We’ve highlighted five common challenges and the simple ways to overcome them:

Uncertainty : No-one has a crystal ball to know exactly what's coming around the corner. But there are ways to be prepared for some unknown circumstances. You can't fully predict the main external threats like government policy, economic conditions or freak weather conditions. But you CAN use forecasting and scenario-planning tools to build up contingency plans so you have a Plan A, Plan B and even a Plan C. With forecasts of your business data, finances and industry trends, you can be ready to react, pivot and take positive action.

Competition: Small businesses often face stiff competition from larger, more established companies. To stay ahead of the curve, it's important to be nimble and agile. It's also vital to find your niche and to know precisely why your customers value your offering. By ploughing a unique furrow and keeping your customers happy, you can give yourself an edge over larger, slower-moving corporate-size competitors.

Access to capital: It can be a struggle to secure funding as a startup, particularly if you have limited financial resources or a poor credit history. Having a detailed funding strategy is a crucial way to overcome this problem. Keep your finances in order and make sure you have in-depth financial reports to show banks, lenders and investors. It's also helpful to focus on paying suppliers on time, keeping debt levels under control and ensuring your cashflow is in a positive position. These are all excellent ways to improve your business credit rating and show you're a stable, risk-free prospect for lenders.

Hiring and retaining employees: Attracting and retaining talented employees is difficult, especially during the ongoing talent shortage. Offering competitive salaries or benefits packages can be one way to attract people. But it's also important to think about your brand reputation, your sustainability credentials and your CSR policy – all things that Millenial and Gen Z workers value alongside decent pay and benefits packages. Employees want to be proud of where they work, so make your company a progressive, satisfying and rewarding place to work.

Keeping up with technology: Business technology is evolving at a rapid pace. It can be daunting keeping up with all the available apps, tools and software solutions that are aimed at your business. The trick is to be informed but selective about the apps you use. Start with the operational and financial needs of the business and look for apps that can automate, improve efficiency or provide improved data and management information. Talk to other business owners and your profressional network to find out what the essential apps are in your industry. And do your research and homework before you choose any software solution to add to your app stack.

Talk to us about being an agile small business

Looking to the horizon for the upcoming pitfalls is essential as an ambitious and informed business owner. As your adviser, we can help you generate the most informative management information, to keep you agile and ready for what lies around the corner.

We’re also on hand to discuss your ongoing strategy, how to react to upcoming risks and the best ways to access capital and manage your company’s finances.

Get in touch and let’s see what the future may bring for your business.

Tax Tips for Small Businesses 2023

brock@haslam.com.au (Brock Haslam) — Mon, 24 Jul 2023 05:27:47 GMT

Are you claiming business tax deductions correctly? We’ll check eligibility for concessions, offsets, incentives, rebates, and verify taxable income and expenses – so you won’t pay more tax than you need to! Talk to us and we’ll help make tax time easy.

Common Tax Deductions for Small Business

Are you claiming all the business tax deductions that you are entitled to?

There are many expenses common to most small business, and there are other expenses that are specific to the nature of each industry and the goods or services that your business provides.

Operating expenses include accounting, administration, advertising and marketing, office premises, office running expenses, trading stock, legal fees, repairs and maintenance, insurance and vehicle expenses.
Employment expenses include salary and wages, fringe benefits, superannuation and training costs.
Other operating expenses may include things specific to your business, for example point of sale systems, freight, professional membership fees, professional education, protective equipment, tools or specialised software.
Capital expenses include machinery and equipment, vehicles, furniture and computers. Depreciation for these assets may also be deductible if the expense was not claimed immediately.

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 some entertainment. Super and PAYGW are tax deductible when they are paid on time – but not if paid late!

There may be some expenses you want to check with us such as private usage of business vehicles or other equipment, prepaid expenses, bad debts, loss of stock and borrowing expenses. We’ll make sure to include all the deductions you’re entitled to.

What’s on the ATO Radar for Business Tax Returns?

Businesses whose benchmarks fall significantly outside the ATO’s small business benchmarks.
Work-related travel expenses – travel fares, accommodation, meals. The travel should be directly related to income producing activities and you need records to verify the travel claims.
Motor vehicle expenses – keep records for fuel, repairs and servicing, finance arrangements, insurance and registration. Keep a logbook to record private travel.
Fringe benefits – have you reported all benefits provided to employees?
Superannuation – have you paid the superannuation guarantee on time to employees’ super funds? The ATO will examine your Single Touch Payroll records including superannuation payments.
Instant asset write-off – the threshold remains at $150,000 this year, but there are rules about eligibility so talk to us to see if the asset deduction claims apply to your business.

Maximise Your Business Deductions

Remember to keep all your business records for at least five years, and payroll records for at least seven years. Companies must keep all records including director meeting minutes for at least seven years.

We’ll make sure you have time to plan for a tax bill, or if you are due a refund, you’ll get it within ten days of us lodging your tax return.

We’ll also 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! Get in touch with us!

Tax Tips for Individuals 2023

Mon, 24 Jul 2023 05:18:38 GMT

Are you making the most of allowable tax deductions? Individuals can claim for general work-related expenses as well as occupation-specific expenses and working from home. Book a time to prepare for your 2023 tax. We’ll help maximise your return.

Although your tax return is not due for a few months yet, the end of the financial year is near. Get ahead now by preparing all the documents required for your 2023 tax return so you can get your tax done quickly and get any refund due to you in your bank!

Income

The Australian 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, (even if it’s just a small amount), from other sources on your tax return as well. You’ll also need documents such as statements, invoices and reports to show all earnings.

Wages, salaries, allowances or bonuses from all employers.
Pensions, annuities or other government payments.
Investment income including interest earned and dividends received.
Business and hobby income, if you have a side-business as well as a job.
Foreign income.
Crowdfunding income.
Sharing economy income such as Uber or Airbnb.
Income from overseas sources.
Income such as hobbies, prize money, compensation or insurance payments may be tax free but check with us.

Work-Related Expenses

Employees are entitled to claim work-related expenses as a tax deduction. To claim a 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

Vehicle and travel expenses – use a travel diary to record details of trips taken for your employment.
Clothing, laundry and dry-cleaning expenses – you can claim for occupation specific clothing, uniforms and protective gear.
Self-education expenses – some education expenses that relate to your current employment are claimable.
Tools and equipment – if you buy gear to help you in your job, this may be claimable. Small tools of trade, protective items, professional references and laptops are some examples of equipment you may be able to claim.
Superannuation contributions you have made separate to your employer’s contributions.
Occupation and industry specific requirements – check the ATO fact sheets for your industry.
Working from home – new rules apply this year that make claiming expenses for working from home easier. Check the ATO information for details.

Contact us now to prepare for your tax return and we’ll make tax time easy for you – and get any refund that might be due to you processed quickly!

Tax Tips for Property Investors 2023

Mon, 24 Jul 2023 05:15:14 GMT

Are you making the most out of your investment property? Getting the income and allowable tax deductions right can be complex. We’ll help sort out the details so you’re claiming all you can. Talk to us today to maximise your 2023 tax return.

If you have income from investment properties, now is the time to start gathering your records and reviewing your expenses for the 2023 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.

Rent received, whether paid directly to you or through an agent or through an online management platform. Rent includes recurring regular amounts as well as any lump sum amounts paid in advance.
Rental bonds returned for example if the tenant caused damage or defaulted on rent payment.
Insurance payouts received as compensation.
Expenses reimbursed by the tenant, for example if they have caused damage and you have paid for the cost of fixing the damages, or if they have reimbursed you for water.
Extra fees received, for example letting or booking fees.
Government rebates, for example for installation of solar utilities.

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’s important to check what you can claim.

Expenses You May be Able to Claim This Year

Advertising for tenants
Body corporate fees
Council rates
Water supply charges
Land tax
Cleaning, gardening, pest control and property maintenance
Insurance
Agent fees
Repairs and maintenance
Some legal expenses
Loan interest

Other Expenses

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 Property Records

Tax matters for property investors can be complex. The ATO keeps a close eye on tax returns that involve property investment, as it’s 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’d love to help ensure you are claiming the right deductions to make the most out of your investment property this year and beyond.

Book a time now for your 2023 tax return.

Tax Tips for Trusts 2023

Mon, 24 Jul 2023 05:10:43 GMT

Do you operate a trust for investment or business purposes? Trust management can be complex but worthwhile to protect assets, streamline the tax return process and maximise allowable deductions. Talk to us about how we can help manage your trust.

Whether you have a trust set up for investment or business purposes, there are some common elements to getting ready for the trust’s tax return.

Contrary to popular opinion, a trust is not actually a legal entity; rather, it is a formal relationship between other entities, where one entity holds property for the benefit of another entity, which could be a business or individual.

Because a trust is not a person or business entity, its income is usually taxed differently, although this depends on the setup and type of the trust. But even though the tax return is different, many other administrative aspects are the same as for any taxpaying entity.

Trust Administration

One of the most important administrative tasks to attend to is to hold a formal meeting before midnight on 30 June each year to document the basis of distributions to beneficiaries.

If you haven’t already done this for the 2023 financial year, talk to us as soon as possible so we can check your accounts and advise you on the best arrangements for beneficiary distributions.

Record Keeping

The other essential element of trust administration is record keeping. Although a trust may not be a legal taxpaying entity in the same way a person or business is, all records related to income and expenses must be kept for five years after lodgement of the income tax return.

Particularly important are records for any property owned by the trust. If a trust owns multiple properties, you’ll need to separate income and expenses according to each property.

If the trust earns income from overseas interests or investments, all these records must also be kept.

Capital gains, interest earned, and dividends received must also be documented.

The trustee must keep records of the trust deed, trustee contact details, trustee resolutions, statements of assets and liabilities, all business contracts, and for employing trusts, all records relating to wages and superannuation.

Trust Management

Trust management can be complex but well worth the time spent keeping good records to maintain asset protection, streamline the tax return process, and maximise the allowable tax deductions.

We'll help with record keeping, managing investments, checking trust deed compliance, and simplifying the administration. And remember, the ATO has changed the rules around distributions, so we’ll advise you about the best way to allocate income to beneficiaries.

Talk to us now and start preparing for your next trust tax return.

Tax tips for self-managed superannuation funds 2023

Mon, 24 Jul 2023 05:03:50 GMT

Are you spending too much time on SMSF management? It’s not easy to get all the details right, especially if your fund has changed operations over time. Talk to us about managing your SMSF investments, assets, compliance, administration and reporting.

Having a self-managed superannuation fund (SMSF) gives you control and flexibility over how you make investments and prepare for retirement.

It’s 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.

Operating expenses, such as management and administration fees, audit fees and ASIC annual fees.
Investment-related expenses, such as interest, investment advice fees, costs of servicing and managing investments, property fees and brokerage fees.
Tax-related expenses, such as preparing the SMSF annual return.
Legal expenses including amending trust deeds.
SMSF statutory fees and levies.
Insurance premiums for death, total and permanent disability, terminal illness and income protection.

The rules for tax deductibility for SMSFs are different to those for individuals and business. 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 its 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.

Keep all transaction, tax, accounting and financial reporting records for at least five years.
Keep all records relating to trustee meetings, minutes, investment strategies and appointments or changes of trustees for at least ten years.

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.

Get Your Business Records Ready for Your Tax Return 2023

brock@haslam.com.au (Brock Haslam) — Mon, 24 Jul 2023 04:58:46 GMT

Organising your end-of-financial year documents now means you can get your tax completed earlier and maximise your return. Book a your tax return appointment now and rest easy knowing it’s under control.

Getting your business records up to date and accurate will allow us to work with you proactively to plan for the coming year.

What Records do you Need to Have Ready for the Tax Agent?

Have you bought or sold assets? If so, you need full details of acquisitions and disposals.
Have you taken out a new loan or other finance? You must have details of the finance arrangements and statements of monies owing at 30 June.
Check that any bonds or deposits paid or received have been allocated correctly.
Have you prepaid for insurance or other large business expenses that need to be apportioned to the following financial year? Make note of the portion applicable to the current financial year.
Do you carry stock? If so, you need to perform a full stocktake at 30 June (unless you qualify for the simplified trading stock rules).
List any doubtful or bad debts to be written off.
Review your debtors and creditors (accounts payable and receivable). Is the list current and correct?
Do you have loans with related entities? Reconcile the loans to and from each entity to ensure the same value is reported in the accounts of both entities.
Ensure that all payments to company directors have been correctly captured. Talk to us now if you want to make director payments before 30 June.
Provide records of any government grants received during the year.
If contact details of business owners and key personnel have changed let us know.

We will let you know if there are other matters to discuss with us before completing your tax return, such as cryptocurrency transactions, capital gains, vehicle usage, private usage apportionment or superannuation. This year, there may also be new elements to discuss if you have received grants, 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 2023 financial year, make an appointment with us to schedule in your tax return for prompt lodgement.

Small Business Energy Incentive

Wed, 07 Jun 2023 23:04:51 GMT

The Australian Government has announced it will provide businesses an additional 20% deduction on spending between 1 July 2023 and 30 June 2024 that supports electrification and more efficient use of energy.

Eligible assets or upgrades will need to be first used or installed ready for use between 1 July 2023 and 30 June 2024. This measure is not yet law.

The measure will help small businesses make investments like:

electrifying their heating and cooling systems
upgrading to more efficient fridges and induction cooktops
installing batteries and heat pumps.

Up to $100,000 of total expenditure will be eligible for the incentive, with the maximum bonus tax deduction being $20,000 per business.

For more information, see the Hon Dr Jim Chalmers MP joint media release Small Business Energy Incentive , 30 April 2023.

This measure is not yet law.

Does your business have a CSR strategy?

Sun, 28 May 2023 02:38:44 GMT

Does your business have a corporate social responsibility (CSR) strategy? We’ve got the lowdown on how to set up a positive CSR strategy for your company.

Having a 'corporate social responsibility (CSR)' strategy was something that used to be the sole preserve of giant corporations.

But with the social and environmental impacts of business evermore transparent, it's good practice for every business – both large and small – to have a CSR policy that reflects your core values and goals as an organisation.

1. What is a corporate social responsibility (CSR) strategy?

CSR is a form of self regulation. Your CSR strategy measures the impact your business has on the local community and environment, and will help you focus your efforts on providing charitable support, community interactions and other ways of improving your positive impact.

2. How do you improve your social and environmental impact as a business?

Your CSR strategy helps you proactively improve your company’s social and environmental impacts – so you carry out positive work and make your business into a good global citizen.

This could mean cutting your emissions and carbon footprint as a business. It could mean hiring more local people to boost the economy. Or it could mean working with nearby charities, not-for-profit organisations or social enterprises to support good work in your community.

3. Why should your CSR strategy mirror your organisation's core values?

As a business, you almost certainly have a set of core values that define how you do business. Your CSR strategy should reflect those core values. This helps you demonstrate the ways that your values, beliefs and long-term goals are ingrained in your long-term business plan.

For example, if ‘thinking greener’ is one of your core values, you need evidence that your CSR strategy is focused on making your operations more sustainable. If ‘community minded’ is a core value, you must be able to show how you’re reaching out to your local community to offer charitable help, funding and support etc.

4. How do you measure your CSR performance?

The key to measuring your CSR performance is to set clear targets for each area of your CSR strategy. By setting clear goals and timelines, you can track the business against these aims and measure your performance over time.

Including your CSR aims and performance in your annual report is a great way to hold yourself to account, while also being transparent and public about your performance.

5. What's the best way to promote your CSR strategy?

Talking about your CSR goals and performance is an important part of being transparent about the good work you’re doing. But be careful about your wording and resist the temptation to make this a case of self-promotion.

If you run an event with a local charity, blog about it, or post a video from the day, and make sure you give the charity plenty of space to talk. If you’re doing work to help cut your use of single-use plastics, include a short update in your next newsletter, or ask staff for their ideas on how to meet this goal more effectively.

Start thinking about your corporate social responsibility strategy

Having a transparent CSR strategy should be an important goal for any business. Consumers and business clients want to know what their favourite companies are doing to improve the company’s impacts on the outside world.

Key numbers to focus on in your business now

Sun, 28 May 2023 02:37:32 GMT

What are the key reports to focus on in your business? We'll show you how to track performance, take action and prepare your company for surviving the new business normal.

As a business owner, it’s never been more important to have a good grasp on your finances.

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

To track, monitor and drive your financial performance in this new business world, 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 these reserves is vitally important for the survival and long-term health of businesses.

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.

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

Budget – your budget is the financial plan that's tied in with 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) Your P&L gives you an overview of the company’s revenues, costs and expenses over a given historic period of time. Whereas 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).

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 prepare your company for surviving the new business normal.

Is your business focused enough on cyber-security?

Sun, 28 May 2023 02:36:02 GMT

Keeping your data safe can be a big worry for Australia's digital businesses. Now’s the ideal time to get your cyber security reviewed, updated and tightened – before there's a breach!

We live in a digital world where our company’s data and (crucially) our customers’ data is under constant attack. Hackers are always looking for new ways to break into your systems and databases – and this has resulted in many significant data breaches in recent years.

When your security is breached, and your data is compromised, this isn’t just an IT issue, however. It’s a breach of trust between you, your customers and your suppliers – one that can be hugely damaging for your brand reputation and consumer’s perception of the company.

So, why are so few companies taking cyber security seriously? And what can you do to enhance your cybersecurity and protect your valuable data?

In the 21st century, your data = your business

It’s the customer information in your CRM system, the supplier details in your invoicing system and the financial data in your accounting software. It’s your bank account details, your confidential client information and your company’s secret intellectual property or hard-won R&D findings.

If you lose your data, you damage the business too. So protecting the safety and security of your data and systems has to be a top priority for any business owner.

To boost your cyber security:

Make cyber security a company-wide concern – if a data breach occurs, there’s no use blaming the IT department after the fact. Cyber security has to be a concern for the whole business and something where you have clear advice, processes and training in place for. The better your people are prepared for protecting the company’s valuable data, the less chance there will be of a security error or accidental data breach.
Keep devices and computing hardware secure – where your employees are using laptops and work mobile devices, it’s vital that they keep this hardware safe. Don’t leave computers unattended in laptop bags in a coffee shop or bar, and don’t leave your phone unsupervised on a hot desk. Offer secure lockers and desk drawers where laptops and devices can be secured and always think about the security implications of leaving your hardware anywhere other than in the office.
Use a secure network connection – when connecting to work applications, databases and shared folders, always use the company network or an approved virtual private network (VPN). By using a secure network connection, you greatly reduce the chances of your data being intercepted and stolen, with VPNs allowing employees to log in securely when off-site or working at a client’s premises.
Save important data in the right place – you should have clear protocols regarding what kinds of data can be saved, and where this information should be stored. If employees are storing spreadsheets full of confidential client information on their laptop hard drives, you are only one lost laptop away from a security breach. Set up clear guidelines on which drives and folders to use, and make sure only the right people have access to any confidential folders and content.
Use proper authentication and encryption – use two-factor authentication or even multi-factor authentication for access to all your cloud and SaaS tools. And make sure you have proper data encryption of any confidential information that’s shared. By putting the best possible security steps in place, you greatly reduce the risk of a slip-up.
Factor in the added security threat of WFH – with so many employees now working from home (WFH), there are extra threats to factor in. Good cyber security at home means using a secure VPN, keeping laptops safely stored, always using the latest versions of applications and not sharing passwords with family or flatmates etc.
Log all security breaches – if the worst-case scenario does happen, make sure to log every single security or data breach – and be transparent about what’s happened when communicating with customers, suppliers or employees who may have been affected. The sooner all your stakeholders are aware of the issue, the sooner you can work to resolve the problem and limit the potential damage.

Speak to IT security experts and protect your data

Keeping your data safe and secure is now a foundational need for any business. If you want to reduce your security worries, it’s sensible to speak to a cyber security expert. They will be able to review your current systems, networks and security practices and advise you on the key actions that are needed to tighten up your security.

Read more from the Australian Cyber Security Centre.

GST on Business Purchases from Overseas

Sun, 28 May 2023 02:32:06 GMT

Does your business buy products and services from overseas suppliers? If so, you may be charged GST, but not always! We can review your accounts and software tax codes to make sure GST claims on overseas purchases are correct.

Does your business buy products and services from overseas suppliers?

If so, you may be charged GST – but not always! Overseas businesses must register for GST in Australia if they have a turnover of more than $75,000 for sales connected with Australia.

Many large online retailers are registered and charge GST, and you can claim this GST on your BAS.

However, many smaller or independent online businesses are not required to be registered for GST in Australia; therefore, they do not need to include it in their invoices. A common error we see is that business owners claim GST on the BAS on all purchases, even overseas purchases that don’t charge GST.

Sometimes the invoices are not clear if GST applies or not. If you’re buying from a new supplier and unsure if GST applies, check their registration at ABN Lookup . If the business has an ABN, the lookup will tell you if it is registered to charge GST. Check their invoice to see if GST has been included. If not, this is a GST free purchase on your BAS. If the business doesn’t have an ABN and isn’t registered for GST, you won't find them on the ABN Lookup.

If you’re buying business purchases from overseas suppliers, getting your BAS reviewed could be a good idea to check that your GST claims are correct. We’ll also check that your accounting software is set up correctly to make automatic coding of purchases accurate.

Talk to us today to organise a review of your business accounts before you finalise your next BAS and tax return.

ATO Debt Recovery and Director Penalty Notices

Sun, 28 May 2023 02:27:31 GMT

The ATO is resuming debt recovery action and issuing director penalty notices. If you’ve received a DPN letter about personal liability for business debt, talk to us so we can help manage your finances and your business ops can continue uninterrupted.

The ATO has increased its activity around recovering unpaid business debts. During the pandemic, it paused debt recovery, but has now resumed its pursuit of debts.

Since April 2022, the ATO has sent tens of thousands of letters to directors notifying them about impending action.

Director penalty notices (DPNs) have been issued to directors who have not replied to the ATO letters and have not otherwise engaged with the ATO about their debts.

DPN law means that if a company did not pay ATO obligations on time, company directors could become personally liable for the amount owing, in addition to penalties.

DPNs can be issued for unpaid PAYG withholding, superannuation guarantee, GST, WET and LCT.

If you received a letter about ATO debt recovery, talk to us so we can look at the available options with you.

Talk to Us About Your Business Liabilities

Are you clear about what you owe the ATO?
Are you aware of the extent and financial implications of your personal liability?
Have you given director guarantees to any suppliers that might increase your individual liability?
Are your ASIC details correct? If a notice is issued to an incorrect address listed on ASIC, legal recovery will go ahead whether the director receives the notice or not, if contact is not made within 21 days of the letter’s date.

If you are considering taking on a new position for an existing company, check the status of the financial obligations of that company before accepting the position, as new directors may become liable for existing debts. Equally, if you resigned from the position of directorship don’t ignore it as the notice may relate to the time you were a director.

QuickBooks to Get Upgraded Invoicing

Thu, 25 May 2023 10:30:34 GMT

An exciting update is coming to QuickBooks Online

QuickBooks Online will soon have a brand new invocing and quotes experience. The update has been designed from the ground up to make it easier to create, send and manage custom quotes and invoices

The new feature allows users to customise quotes and invoices on the spot with no templates needed. QuickBooks say it will allow you to get quotes approved faster, with easy responses from customers. It also cleverly autosaves quotes and invoices created whilst using the mobile app.

The rollout will start in June for a small number of QuickBooks users, with wider availability and additional features added in the weeks and months that follow.

When to Register Your Business for GST

brock@haslam.com.au (Brock Haslam) — Thu, 23 Mar 2023 23:00:03 GMT

Do you know when your business should register for GST? If you're not charging GST, check your income to know when to register with the ATO. Most businesses must register at $75k, but there are special rules for some. Talk to us to get set up.

Should you register your business for GST? Many business owners register their businesses from day one, regardless of income. Others, for example, many sole traders, choose not to register for GST until it is mandatory.

However, it is common that new businesses don’t realise they have exceeded the income threshold at which they must register! This can result in having to pay GST on sales to the ATO even if you haven’t included it in your prices – so you could lose one-eleventh of your income.

When is GST Registration Compulsory?

Your business must register for GST when it makes $75,000 income within a financial year. If you’re regularly making $6,250 or more each month, it’s time to check whether you should register for GST.

It’s good practice to check your turnover every quarter, and when you are getting close to the threshold, check every month. If you’re not yet using online accounting software, talk to us about your options, as this will make reporting and preparing for GST registration much easier.

You must register for GST within 21 days of reaching the threshold.

Special Rules

You can voluntarily register even if your turnover is less than $75,000. This means you can complete an annual BAS if you prefer.
If you’re making money through a ride-sharing platform like Uber, you must register for GST immediately. All commercial driving income, regardless of turnover, is subject to GST registration.
If you want to claim fuel tax credits, you must register.
If your business is a not for profit, the registration threshold is $150,000 per financial year.
If you’re not an Australian resident business, the rules for working out GST turnover are different, so talk to us before registering.

Need Help?

When starting a new business, there are many decisions to make, and GST registration is just one of them. Get in contact about the benefits of registering, and we'll help you get set up on appropriate accounting software to help you on your way to business success.

Keeping your business cash liquid – the difference between cashflow and profit

brock@haslam.com.au (Brock Haslam) — Thu, 23 Mar 2023 22:56:36 GMT

Do you know the difference between profits and cash flow? We’ll help you understand why cash is king and how to improve your cash flow management AND profitability #businessadvice #cashflow

The foundational goal of any business is to make a profit. As a business owner, that’s one of your key financial aims – to make enough sales, at a big enough margin, to generate profit from your enterprise. But how does profit differ from cashflow? And why is cash king?

How do profit and cashflow differ?

To really understand the difference between generating profit and managing cashflow, we need to look at what both these terms mean. You might think that delving into the accounts is a job for your adviser, but being in control of your profit and cashflow is an invaluable business skill.

Let’s take a look at the differences:

What is profit? – Profit is the surplus that’s left from your income once you’ve paid your expenses, supplier bills and tax etc. It's driven by creating a profit margin and generating value from your products and/or services.
What is cashflow? – Cashflow is the ongoing process of ensuring that the business has the available cash (or ‘liquid’ cash) needed to operate. This provides the money needed to trade, to pay suppliers, to cover wages or to buy raw materials etc.

Why is positive cashflow so important?

‘Cash is king!’ may be a cliche these days, but it’s a maxim which underpins any successful business model. Yes, it’s great to make a profit at year-end, but if you don’t look after your cashflow then the business may not survive as long as the end of the year.

What’s needed is good cashflow management to enhance your financial health. And without a careful eye on your cash numbers, things can quickly go awry.

A business can generate high revenues and big profits, but still be cashflow poor. In other words, it can have profits at the end of the period, but have very little liquid cash to fund it's day-to-day operations over the course of the period.

Talk to us about improving your cashflow management

Good cashflow management is all about being in control of your cash inflows (income you’re generating) and your cash outflows (what you’re spending). To achieve ‘positive cashflow’ you need to proactively work to keep your inflows higher than your outflows.

As your adviser, we’ll help you set up detailed cashflow reporting and forecasting, so you can keep the business in that ideal positive cashflow position. And we’ll also look at key steps for keeping your revenues high, margins profitable and meeting your financial targets.

Get in touch to talk through your cashflow management.

Fringe Benefits Tax and Business

brock@haslam.com.au (Brock Haslam) — Thu, 23 Mar 2023 22:55:01 GMT

Do you offer your employees benefits in addition to salary and wages? If so, you may need to report FBT. Fringe benefits can help employees reduce their taxable income but you need to take care of the admin. Get in contact to learn more.

Fringe benefits tax (FBT) may apply based on the type of benefit provided.

Employers can generally claim a tax deduction for the benefits and related FBT payable.

Types of Benefits

There are many different types of fringe benefits employers may provide to employees. These include:

Vehicle owned by the business provided for private use
Vehicle lease arrangements
Car parking
Entertainment, such as golf club membership or tickets to major events
Expense payments, such as credit cards or health insurance
Other types include debt waiver, living away from home allowance, or property benefits.

FBT Administration

As with all business transactions, keeping accurate records is essential to determining whether FBT applies or not and how much needs to be included on the employee's income statement, if any.

Big Rise in ATO Compliance Action on Unpaid Super

Thu, 23 Mar 2023 22:19:20 GMT

The ATO are chasing unpaid and late super hard right now. Protect yourself in two easy steps.

The Australian Taxation Office (ATO) are now using Single Touch Payroll (STP) data to match superannuation obligations against SuperStream payment details and quickly find employers who are not paying or late paying super.

In recent months, we've seen the ATO initiate a number of Superannuation Guarantee Audits against employers who've failed to pay super on time.

What do you need to do?

Superannuation Guarantee is a mandatory 10.5% (increasing to 11% on 1 July 2023) superannuation payment on most types of wages. It needs to be paid no later than 28 days following the end of each quarter into a complying superannuation fund, using an approved payment gateway.

How Can You Protect Yourself?

Making sure you stay compliant is pretty easy. Here's the two important steps:

1. Make sure that your payroll system is set up to calculate super at the correct rate on the correct payment types. If you need help, consider asking us to undertake a review of your payroll system.

2. Use the inbuilt super reporting system in your payroll software to lodge and pay on time, or ask us to lodge your super for you each quarter to be sure it's done on time.

Need More Info?

If you need more information about superannuation, you can visit the ATO's Super for employers hub , or book a time to talk to us .

Xero STP2 Deadline Approaches

Thu, 23 Mar 2023 22:18:56 GMT

Xero users must enrol in STP2 by 31 March 2022.

The mandatory start date for Single Touch Payroll (STP) Phase 2 reporting was 1 January 2022. Xero secured an extention for its software users, but that deadline is now approaching.

If you're paying your employees using Xero, you have one week left to complete the setup steps and enrol in STP2.

Xero has a great guide on how to get compliant with the new compliance requirements and there's a lot of information available on the ATO website .

If you still need more help with your STP2 setup, book a payroll file review from us or give us a call .

How much is our work taxed in Australia compared to other countries?

Wed, 14 Dec 2022 06:55:36 GMT

How much tax do Aussie employees pay compared to employees in other countries? We take a look at the latest OECD report – and find out how Australia compares to the OECD average.

The OECD recently released its latest Taxing Wages 2022 report, and it’s interesting to see where Australia falls compared to other developed nations when it comes to tax. One of the purposes of this particular paper was to look at the impact of Covid-19 on how workers were taxed across 38 different nations – and it makes for interesting reading!

Australia's ‘tax wedge’ falls just below the OECD average

The ‘tax wedge’ is the gap between what the employer pays for labour and what the worker takes home, and there’s an enormous range between nations. In Belgium, workers lose 52.6% of their income to taxes, while in Colombia it’s zero.

Here in Australia, the tax wedge in 2021 was 27.1%. That’s considerably lower than the OECD average of 34.6% but not quite as low as our Kiwi friends across the ditch, whose tax wedge was an inviting 19.4%. The Aussie wedge compares well with other developed nations, dipping just below the USA’s figure of 28.4 and undercutting the main European results. Germany and France have figures in the high 40s and even the UK’s score of 31.3% looks less healthy than the Aussie wedge.

Here are a few other countries’ tax wedge numbers, to put things in perspective.

2021 tax wedge by country

Belgium - 52.6%
France - 47%
Netherlands - 35.3%
OECD average - 34.6%
United Kingdom - 31.3%
United States - 28.4%
Australia - 27.1%
New Zealand - 19.4%
Colombia - 0%

You can see the full table here .

Starting a family cuts your Aussie tax bill

Across all 38 nations analysed, families with children pay a lower tax wedge than single earners without children. The average was 24.6% for single-earner families with children, compared to 28.8% for double-earner families with children and 34.6% for individuals without children.

In Australia, there’s a clear advantage to starting a family. The single-earner family tax wedge was 19.1%, while the double-earner family was 24.9% and the single person tax wedge was 27.1%.

Are you paying the right amount of tax?

If you think that you may not be paying the right amount of tax, give us a call or send us an email. We can talk to you about how you structure your business and personal assets, and ways to help you only pay the tax you need to pay.

Get in touch , we’d love to hear from you.

Understanding Your Balance Sheet

Wed, 14 Dec 2022 06:52:58 GMT

Are you confident in understanding the financial snapshot of your balance sheet? Book a session now to analyse your reports with an experienced business advisor.

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 owed 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 50k, 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 your assets at a given date. This 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.

Need more information?

Talk to us . Get the complete picture of your business performance and financial position, regardless of what stage of business you are at.

Understanding Your Statement of Cash Flows

Wed, 14 Dec 2022 06:50:19 GMT

Do you fully understand the impact of your business activities on your cash flow? Your cash flow statement can give you great insight into business operations. Book a session today to examine your financial reports.

The statement of cash flows, (also known as the cash flow statement), shows how your business has generated and used cash (and cash equivalents) within a specific time 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.

Operating activities - all business income, expenses, assets and liabilities (except for those assets and liabilities reported in investing and financing activities).
Investing activities - the purchase and sale of long-term investments, property, plant and equipment as well as security deposits paid to suppliers or received from customers and dividends received.
Financing activities - the changes in balances of equity accounts, for example, issuing and repurchase of stocks and bonds and payment of company dividends if applicable. Loans are also included in financing activities.

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 gives 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 relationships 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 gives you vital information on your business.

How strong is your cash position?
What is the long-term outlook for your business?
What activities generate the most cash flow?
What is the relationship between your net income and your operating activities?

If you’d like to understand your financial statements, cash position and future outlook in more depth, arrange an advisory session today . We’ll help you identify and appreciate the strengths of your business.

5 quicks wins for a greener business

brock@haslam.com.au (Brock Haslam) — Wed, 14 Dec 2022 06:46:20 GMT

How green is your business? You’ve got to be sustainable if you want to keep up with changing consumer trends – so here are 5 quick ways to get started.

Consumers are driving the trend towards sustainable business practices, voting with their dollars to support greener companies. The Global Sustainability Study 2021 found that:

63% of consumers have shifted their spending toward being more sustainable in the past five years, particularly younger consumers.
Half of consumers rank sustainability as a top 5 value driver.
34% of consumers are willing to pay more for sustainability, with a higher share of Millennials and Gen Z prepared to pay more.

“Consumers send a clear signal: sustainability will continue to become the expectation, rather than the exception,” notes the study. “Companies must transform their businesses now in order to stay relevant for the future.”

Transforming your business might ultimately require investing in new systems, packaging or products. But in the meantime, here are 5 quick wins to help set you on the right path.

1. Reduce plastic waste

Is your business still buying single-use plastics? Whether it’s pallet wrap, disposable cups or those coffee pods, there’s a quick and easy sustainable swap that you can make right now.

2. Recycle your old electronics

Old printers, phones and laptops can often be found lying around the office – along with a huge tangle of cables. Tidy up your space and help the environment by finding your local e-cycling centre and making the best of your outdated electronics.

3. Offset your carbon footprint

You can use an online calculator to estimate your business’s carbon emissions, then buy carbon credits to the same value to offset your emissions.

4. Use less paper

Embrace digital technology to cut your use of paper; switch to an electronic signing service so you no longer need to print and scan contracts or financial documents. If you must print something out, use both sides of the paper for internal documents. Buy recycled paper and recycle the paper waste your business creates.

5. Choose sustainable client gifts

Instead of sending hampers, consider a charitable donation – you could let the client choose from a list to get them engaged. Or send a potted plant, adopt an endangered animal, or pick an eco-friendly gift basket.

For more ideas, we can help

If you’re looking for more significant ways to invest in a greener business, we can help. Get in touch , we’d love to talk to you about sustainability in your industry and how to get the most out of every dollar you invest.

Keeping your data safe as a remote worker

Wed, 14 Dec 2022 06:38:41 GMT

We’ve all been doing a lot more remote working in recent times. But have you thought about the security implications of using your device on a public network? #internetsecurity #cybersecurity

Using public WiFi in cafes, hotels and coffee shops is something we all do. It’s convenient and gives you the benefits of working online wherever you happen to be. But are you aware of the data security issues of working from a public network?

In an age where remote and hybrid working are now the norm for so many employees and self-employed people, it’s important to know the key ways to keep your data safe.

Secure ways to work from a public network

Remote working is a flexible approach to work that’s increased in popularity hugely over the past few years. A recent study from Buffer found that 97% of people would like to continue working remotely, at least some of the time, for the rest of their career.

Working remotely is here to stay, it would seem. But what can you do to make sure you’re applying the best possible security protocols? And what are the key dangers to look out for?

We’ve highlighted the important elements of cyber safety to be aware of:

Unencrypted public networks and their flaws – a public network isn’t a safe environment when working. When you use your home network, only you and your family have access to the WiFi. If you log into a public network, literally anyone can join the network – and this can lead to all kinds of security issues and concerns.
Malware and other suspicious activity – hackers and those with malicious intent will see a public network as a potential backdoor to your data. Malware (malicious software), Trojan horses and other hostile programmes can be easily uploaded to your device, allowing hackers to access your programmes, hard drive and data.
Using a personal VPN to access the internet – if you’re using a public network to work, the chances are that you have access to confidential information and customer data via your device. To protect your device, it’s important to use a VPN (virtual private network). This creates a secure network for you, so you can safely share and access your important data, with fewer worries about hackers and malware etc.
Having proper security software on your device – it’s a good idea to also have cyber security software installed on your computer or smart device. Providers like Norton, McAfee and Kaspersky all offer complete internet security suites that include firewalls, regular scans of your drive and other tools to keep your data safe and sound.
Keeping up to date with the latest threats – no security system is 100% safe. But you can do a lot to improve your internet security by being aware of the current threats. Keep an eye out for news stories about cyber breaches and read the updates and social posts from your internet security provider. The more you’re in the loop about present dangers, the more you can do to update your security arrangements and keep your devices safe.

Start improving your internet security

We’ve all enjoyed the additional flexibility and time-saving benefits of working from somewhere other than the office. But as remote working becomes a standard working practice, it’s vital to improve your internet security and be more aware of the potential threats to your data. Get in touch if you need more help.

Ways to Maximise Your Super

Wed, 14 Dec 2022 06:24:59 GMT

Take advantage of options available to you to maximise your super balance so you can enjoy the benefits of compound interest. There are also tax benefits. Get advice about what type of contribution is best for you to help make the most of your super.

A little goes a long way with compound earnings. The earlier in your working life you start paying attention to your super, the better off you will be at retirement. However, it’s never too late to take an interest in your super fund’s performance and take action to grow your super!

While the best strategy is to get familiar with superannuation contribution options as soon as you start earning money, you can take strategic action to increase your super balance at any stage.

Your strategy will necessarily change over time as your work and financial situation evolve. When you're not earning much at the start of a career, you may be unable to contribute extra. However, as soon as you earn more than you need to live off, start making extra contributions and reap the benefits of compound growth.

Compound Growth

Compounding happens when you contribute a specific amount to an interest-earning fund and leave the interest in the same account. This way, you keep earning interest on your interest. Check out this table for an example of compound interest earnings . This example clearly shows the advantage of starting to build your super early!

The compound earnings will naturally accumulate as you and your employer continue to contribute to the super fund.

Tips for Growing your Super Balance

Consolidate super into one fund so you are not paying more fees than you need. If you're unsure which fund you have accounts with, search for lost super in case you have multiple accounts that you can consolidate.
Make contributions from your after-tax earnings – this may be a good option if you receive unexpected extra income such as a bonus. The government will also make a co-contribution of up to $500 for eligible low to middle income earners.
Talk to your employer about sacrificing part of your salary into your super fund, which will reduce your taxable income and make it easier to commit to regular contributions that increase your super balance.
Check options available for your spouse – it could benefit both of you if you’re able to contribute to their fund as well as your own.
Take advantage of the bring-forward rules if you haven't contributed the maximum amount of super in recent years.
Make downsizer contributions from the proceeds of the sale of your home.
Sole traders should consider making personal contributions as a tax deduction – this will require the ATO Notice of Intent form to be submitted to the super fund.
Check whether your super fund is paying for any insurance – review and adjust or cancel if the insurance is not required.

Get Advice for Your Super Strategies

It’s important to get financial or tax advice before making any large payments to your super fund, to ensure you’re getting the most tax benefits from your contributions. There are limits to how much you can add to your super fund in a financial year and other thresholds that apply to different types of contributions. Contact us here for help.

Business tips: Finding the best routes to finance

Wed, 14 Dec 2022 06:18:13 GMT

Do you need extra funding to take the next step in your business strategy? We’ll help you review the lenders and finance products – so you have the best possible routes to finance.

Every business needs finance to get the initial enterprise off the ground. You may well have entered into finance arrangements to fund the initial stages of the business, taking out loans to purchase equipment, lease premises or take on staff.

But when was the last time you reviewed the arrangements or looked at the options for accessing other routes to funding? Are your finance facilities still offering the best interest rates and repayment terms, or are there better deals out there?

Other finance options may be available to help you fund your continuing growth, so taking a look at the current finance market is well worth thinking about.

Refinance your existing loans

It’s possible that you already have business loans in place, that’s you’re gradually repaying over the course of the loan period. Sourcing that initial capital is such an important part of the startup process, and a vital stepping stone in getting your business idea operational. But when was the last time you reviewed these finance arrangements? Could you, in fact, be getting a better deal?

The finance market is always evolving. New challengers will enter the market, new specialist finance products will be introduced and interest rates and repayment schedules will fluctuate and change. You may well have got a great deal on the business loans you took out five years ago – but refinancing these existing loans is likely to have multiple benefits.

You could:

Consolidate your existing loans into one finance facility
Lower the interest rate you’re currently paying on the loan
Pay off your loan more quickly, to reduce the debt in the business
Improve your cashflow position by cutting your repayment expenses

The key point here is that your business finance shouldn’t sit still. A loan is not a static debt. You can revisit and refinance your debt so it works in the best interest of the business.

Look for alternative routes to finance

Traditionally, businesses went to their bank manager when additional funds were needed. But the dynamic in the funding market has changed dramatically in recent years. Due to economic pressures, and the impact of the pandemic, the big banks have scaled back their lending to small businesses. Your high street bank is no longer the first port of call when finance is needed.

On the flipside of this, there are a growing number of alternative lenders, smaller challenger banks and specialist finance providers to choose from. And this has created a wide choice of different finance products to fit the needs of your growth plan.

If you need new equipment, asset finance is available.
When you have a short-term cashflow crisis, invoice finance is a good option.
If larger premises are needed, there are commercial mortgages to consider or bridging loans to make the initial purchase while you source the full capital that’s needed.

Check out the available government funding and grants

During the pandemic, many businesses made use of the emergency funding that the government made available. But don’t forget that government funding isn’t just something that’s available during an emergency.

The state will generally offer all kinds of different enterprise schemes to encourage investment in new and growing companies. This could mean having access to funding schemes, government-secured loans or even government grants. Unlike a loan, grants generally don’t need to be repaid, so making use of local government grants is a great way to boost your capital without having a negative impact on the company’s debt position.

Explore the tax reliefs that are open to your business

Another element of government-back financial support is the use of tax reliefs. One of your major expenses as a business will be paying your corporation tax (CT) bill. But there are usually various tax reliefs available to help you reduce your CT bill and reinvest that saved money back into the business. Careful use of these reliefs can make a big difference to your finances.

For example, many countries offer some form of research and development (R&D) tax relief scheme. To encourage businesses to innovate and invest in R&D, the government will offer a relief against the company’s expenditure on operational R&D costs. This will usually mean either reducing your CT liability, or giving you a cash payment against your R&D expenses.

Choosing the right routes to funding and finance will be vital to your long-term success as a business – so work closely with your advisers and think carefully about your choices. Contact us here .

Scam Awareness Week 2022

Tue, 08 Nov 2022 21:05:07 GMT

Scams Awareness Week is an annual campaign dedicated to raising awareness of scams, with this year's Scams Awareness Week being held from 7 to 11 November.

As at 31 August 2022, Scamwatch received 146,700 reports, with losses over $381.2 million so far this year (a 100% increase in losses compared to the same period last year).

Investment scams, such as those involving promises of big payouts, quick money or guaranteed returns, cause the most financial loss in Australia. According to Scamwatch, over $267 million has been lost so far this year.

Cryptocurrency scams are the most popular type of investment scams and the most common contact modes are phone, SMS and email. It is very difficult to identify legitimate cryptocurrency investments from scams. Scammers take advantage of the hype and the less regulated environment to ‘invest’ in Bitcoin or another cryptocurrency on a victim's behalf.

Before investing, individuals should ask themselves if they are willing to lose some or all of the money they have invested and know that, if they go ahead, they are investing with little or no protections behind them.

Some other simple steps you can take to protect yourself and your business are:

Never give any personal information to someone who has contacted you.
Don’t click on hyperlinks in text/social media messages or emails, even if it appears to come from a trusted source.
Go directly to a website through your browser. For example, to reach the MyGov website type ‘my.gov.au’ into your browser.
Never respond to unsolicited messages and calls that ask for personal or financial details, even if they claim to be from a reputable organisation or government authority — just press delete or hang up.
Never provide a stranger remote access to your computer, even if they claim to be from a company you use.
To verify the legitimacy of a contact, find them through an independent source such as an online search or past bill.
Hang up and verify the identity of the person contacting you by calling the relevant organisation directly — find them through an independent source such as a phone book, past bill or online search.
Search for reviews before purchasing from unfamiliar online traders.
Be wary of sellers requesting unusual payment methods such as upfront payment via money order, wire transfer, international funds transfer, preloaded card or electronic currency, like Bitcoin.
Verify any request to change bank details by contacting the supplier directly using trusted contact details you have previously used.
Consider a multi-factor approval process for transactions over a certain dollar amount.
Keep the security on your network and devices up-to-date, and have a good firewall to protect your data.

2022/23 Federal Budget

Wed, 26 Oct 2022 01:10:18 GMT

Treasurer Jim Chalmers handed down his first federal budget on 25 October 2022. Here's the highlights that affect our clients.

Family Support

Boosting Paid Parental Leave

The Government has announced it will introduce reforms from 1 July 2023 to make the Paid Parental Leave Scheme flexible for families so that either parent is able to claim the payment and both birth parents and non-birth parents are allowed to receive the payment if they meet the eligibility criteria.

Parents will also be able to claim weeks of the payment concurrently so they can take leave at the same time.

From 1 July 2024, the Government will start expanding the scheme by two additional weeks a year until it reaches a full 26 weeks from 1 July 2026.

Both parents will be able to share the leave entitlement, with a proportion maintained on a ‘use it or lose it’ basis, to encourage and facilitate both parents to access the scheme and to share the caring responsibilities more equally. Sole parents will be able to access the full 26 weeks.

Increasing Child Care Subsidy

From July 2023, Child Care Subsidy rates will lift from 85 per cent to 90 per cent for families earning less than $80,000. Subsidy rates will then taper down one percentage point for each additional $5,000 in income until it reaches zero per cent for families earning $530,000. Currently families lose eligibility for CCS once their income exceeds $350,000, so this will be attractive to those with higher incomes. The current higher CCS rates for families with multiple children aged 5 or under in child care will be maintained, with higher CCS rates to cease 26 weeks after the older child’s last session of care, or when the child turns 6 years old.

Cheaper medications

One significant change which will affect a wide range of people is the decrease in the general patient co-payment for treatments on the Pharmaceutical Benefits Scheme from $42.50 to $30.00 on 1 January 2023. This effectively reduces the out of pocket cost for PBS medicines.

Superannuation

Expanding the eligibility for downsizer contributions

The Government will allow more people to make downsizer contributions to their superannuation, by reducing the minimum eligibility age from 60 to 55 years of age. The measure will have effect from the start of the first quarter after Royal Assent of the enabling legislation.

The downsizer contribution allows people to make a one-off post-tax contribution to their superannuation of up to $300,000 per person from the proceeds of selling their home. Both members of a couple can contribute and contributions do not count towards non-concessional contribution caps.

Sustainability

Electric cars FBT exemption

From 1 July 2022, the measure will exempt battery, hydrogen fuel cell and plug-in hybrid electric cars from fringe benefits tax and import tariffs if they have a first retail price below the luxury car tax threshold for fuel-efficient cars. The car must not have been held or used before 1 July 2022. Employers will need to include exempt electric car fringe benefits in an employee’s reportable fringe benefits amount.

Energy Efficiency Grants for small and medium sized enterprises

The Government will provide funding to support small to medium enterprises to fund energy efficient equipment upgrades. The funding will support studies, planning, equipment and facility upgrade projects that will improve energy efficiency, reduce emissions or improve the management of power demand.

Weighing up a big investment in your business

brock@haslam.com.au (Brock Haslam) — Tue, 25 Oct 2022 01:34:10 GMT

It’s expensive to invest in a new website, payment platform, project management software or automation. Should you take the plunge? We can help you weigh up the costs and benefits.

Are you considering investing in a new way to make your business more productive or streamlined? With a tight labour market, everyone’s time is at a premium – so finding ways to maximise productivity has never been more important.

But it can take considerable funds to pay for a new website, ecommerce platform, software system or automations. Here are a few questions to ask yourself when you’re weighing up the costs and potential benefits of a significant investment.

What are the upfront costs – and the ongoing expenses?

A website, for example, has a large upfront cost for the design, content creation and build. You might think that the costs are then done, but it must be updated and maintained. You can do that in-house, in which case someone needs to be assigned to that work, or you can outsource it.

Always take into account the ongoing costs, because these are a vital consideration when you decide whether to make an important investment.

Which of your current costs will disappear?

Some of the costs you currently incur may vanish with a new system. It might be as simple as no longer paying the cost of an old subscription. Or it might be time saved that is spent manually entering data, processing payments, or dealing with customer issues that arise from an outdated system.

Financial costs are relatively easy to add to the calculations. It’s trickier with time, but try to put a value and quantity on what time might be saved if you can.

How will this change your costs in the long run?

Think about how your business will operate five years from now. Will this new investment allow you to increase your profitability without growing your team? Will you be able to spend more time finding outstanding high-value clients and less time on processes?

Any large investment should make your company run more smoothly, allow you to boost your output, and easily pay for itself.

When will this investment pay for itself?

Once you have all these numbers in hand, you can formulate some idea of when the investment will pay for itself. We can help you estimate a likely timeframe, and some best- and worst-case scenarios. You don’t have to make big choices all on your own – let us help you analyse the costs and benefits to give you more confidence in your decisions.

Business tips: Getting in control of your spending

brock@haslam.com.au (Brock Haslam) — Tue, 25 Oct 2022 01:31:02 GMT

A few simple steps can help to cut down your business expenses. We’ll help you spot the areas where costs can be cut and use the latest tech to manage the numbers.

Keeping the business in a positive cashflow position is vital. But you can only do this if your cash inflows (sales revenues and other income) outweigh your cash outflows (overheads, supplier costs and other liabilities like tax costs or loan repayments).

One way to re-balance the cashflow scales is to get in better control of your spending. This process of ‘spend management’ is all about reviewing your expenses, negotiating better deals with suppliers and getting a razor-sharp focus on reducing your cash outflows.

Review your current suppliers

Once you have a reliable supply chain set up, it’s very easy to fall back on using the same suppliers time and time again. But the reality is that there’s real value in reviewing the suppliers you’re using, so you don’t miss out on any better deals.

Prices will go up and down in the marketplace and new suppliers will appear in the market. So it’s worth regularly checking for alternative providers that can offer cheaper rates, better value prices or longer payment terms etc.

Negotiate better prices with your trusted suppliers

You may be happy with the supplier relationships you have, but still want to cut down on your spending. In this scenario, it’s well worth negotiating. Very few suppliers will want to lose a valued customer, especially if you’re a long-term client who’s bringing in reliable revenues. If the relationship is strong enough they’ll be open to negotiating a deal that works for both of you.

See if you can push the prices down, or get discounts for buying in bulk etc. And, if possible, see if you can get them to agree to a trade credit agreement, where you can pay for the goods and services over a longer period of time, to boost your cashflow.

Rein in your expenses

It may sound obvious, but one of the easiest ways to cut your overall expenditure is to be a bit more frugal with your overall spending. Don’t overspend on stock, raw materials or services. Just buy what you need to stay operational, and keep a close eye on when new orders will be needed, rather than overspending and using up your available cash.

Where day-to-day spending has got out of hand, you can make a big difference to your expenditure by making small changes to your outgoings. If you look at your spending with a fine-tooth comb, you’ll soon find costs and expenses that can be cut back or stopped entirely. Other cash-saving options could include putting a limit on staff expense cards or cancelling unnecessary software and magazine subscriptions etc.

Use a purchase order number system

A purchase order number system makes it easier to keep track of your spending. In essence, any purchase made by the business needs a purchase order (PO) number assigned to it, prior to a member of staff buying anything. This allows you to allocate a budget and track the spending against this particular purchase or project.

Having a PO number also makes it easier to track incoming invoices. Suppliers can quote the PO number on their invoice, so you can match the bill to the allocated job and budget.

Use tech to get in control of the numbers

In an ideal world, you want as much oversight over your spending as possible. And with today’s cloud accounting software, expenses apps and inventory tools, it’s easier than ever to manage your expenses and stay in control of the main numbers.

If you want to streamline your spending, come and talk to us . We’ll help you spot the areas where costs can be cut and use the latest tech to manage the numbers.

Do You Know What Reimbursements Your Employees are Claiming For?

brock@haslam.com.au (Brock Haslam) — Tue, 25 Oct 2022 01:24:37 GMT

Are you across all your employees’ reimbursements? While mistakes in expense claims happen, so does deliberate fraud. Having a proper system in place to manage expenses will minimise errors.

It's unfortunate, but employee expense claims are a common form of business fraud. Are you across all your employees' claims for reimbursement?

The best thing you can do to minimise expense claim fraud is to implement a process for reviewing and authorising expenses and reimbursements. Many business owners simply trust people to do the right thing and be honest.

While most employees are reliable, having good systems in place will mean that the dishonest actions of a minority do not jeopardise your business.

Examples of Expense Claim Fraud

Fictitious expenses based on faked or altered documents or even booking confirmations that were never actually paid for.
Asking for reimbursement for the made-up cost of goods or services provided for free.
Collusion with someone in another business who can provide falsified documents to show purchase and payment.
Personal expenses labelled as business expenses.
Duplicated claims, for example, an employee might claim for legitimate travel expenses in one month and then claim the same expenses two months later.
Purchasing an item using the business credit card and providing a personal card to receive the refund when goods are returned.
Inflating legitimate expenses, such as meals or meeting costs, paid for in cash.

Steps to Proactive Expense Management

Get a policy in place that includes limits on categories such as travel, office supplies or business meetings, and a clear authorisation process.
Randomly check all expenses to ensure no staff members are collaborating.
Get digital credit cards for employees who need to purchase items on behalf of the business regularly. Some solutions allow you to set monthly budgets and limits for specific categories.
Make it easy for employees. Using a phone app means there is no excuse not to get a photo of the invoice or receipt, and the authorisation process is built into the app.

Mistakes in claims happen, and not all expense claim errors are fraudulent. But by having a procedure in place, you'll soon pick up an innocent mistake compared to deliberate fraud.

Talk to us if you’d like to know more about apps that provide a systematic process for proactive expense management.

Do Your Independent Contractor Agreements Measure Up?

brock@haslam.com.au (Brock Haslam) — Tue, 25 Oct 2022 01:20:51 GMT

Now is a great time to review contractor agreements to clearly define the working relationship, rights and obligations. Ask us about getting lawful contracts for all your independent contractors so you can trust the terms of the engagement.

Business owners need to classify workers correctly to minimise the risk of being penalised later for wrongly classifying workers as contractors when they should be employees.

It’s a common area of concern for business owners who engage contractors. Many Fair Work Ombudsman cases have resulted in severe penalties and back payments imposed for engaging someone as a contractor when they should have been paid as an employee.

What’s Required in Contractor Agreements?

You should have a comprehensive agreement with every independent contractor.

The contract should include:

Details of the nature of the working relationship to demonstrate that a genuine contractor relationship exists.
All rights and obligations of both the contractor and the business.
Terms and conditions of the agreement.
Whether superannuation applies.
The main factors used to assess the worker as a contractor such as independence, ability to delegate work, the basis of payment, the use of tools and equipment, the degree of control or the ability to take on other work.
The date of the next review of the contract.

Many factors are involved in assessing whether a worker is deemed to be an employee or contractor, and the relationship can change over time. There is no single overriding factor in deciding if a worker is truly an independent contractor. Therefore, each working relationship must be assessed separately and individually.

Time to Upgrade Contractor Agreements

If a lawful agreement clarifies the terms of engagement and addresses all aspects of the working relationship, this will reduce the risk of later being penalised because of wrongly classifying a worker. But for the contract to be relied upon in court, it must address all aspects of the working relationship in enough detail that there is no room for misinterpretation of terms.

Now is a great time to review and upgrade any agreements you have in place with contractors. Do they measure up?

Talk to us about getting reliable agreements in place for all your independent contractors so you can trust in the terms of the engagement.

The importance of business development

brock@haslam.com.au (Brock Haslam) — Tue, 25 Oct 2022 01:17:00 GMT

Want to expand your business development activity, but don’t know how? We’ll help you highlight the opportunities and draw up the best possible plan for your Business Development activities.

Business development is one of the most important areas of focus for any ambitious business.

If you want your business to grow, that’s going to mean having a razor-sharp focus on new opportunities and strategies. That could mean exploring new markets, or nurturing new partnerships. It might mean diversifying to create new revenue streams, or coming up with new ideas to boost your profitability. But, ultimately, good business development comes down to having good ideas – ideas that broaden your reach, sales, revenues and external relationships.

As the founder or CEO, it's important to put business development at the top of your to-do list.

Put time aside for business development

Business opportunities don’t just appear out of thin air (sadly). To come up with an opportunity for a business partnership, or to bring in a big new client, you’re going to have to do some serious work. So, it’s a good idea to put business development (BD) time aside in your diary.

By blocking out time to devote to BD, you can step away from the everyday operational tasks and get into a more creative and objective mindset. Where do you want the business to be in 6 months? What do you need to do to achieve this goal? Are there relationships you could build to bring this plan to life? Asking these questions and getting a more concrete idea of the answers will form the basis for your BD plan – and that’s the route map you can then follow.

Work on your BD plan and strategy

Once you have some positive BD ideas to work with, it’s important to get your goals and your strategy down into some form of plan. As with any kind of growth initiative, your BD activity needs to be well planned, so you have a clear idea of what you want to achieve.

Give each new strategic idea a clear timeline and assign jobs, activities and roles to the relevant people in the team. Cost out each project too, and assign a budget so you can be sure that you’re getting the best return on your investment (both financially and from a time perspective).

Most importantly, though, track your progress against your BD goals. Agree on a target, set a date and measure your progress and performance against that timeline.

Build relationships with potential partners and customers

Relationships lie at the heart of your BD activity. You might be getting to know the executive team at a possible new partner’s company. Or you may be reaching out to a new customer audience with a brand-new product. Getting to understand what makes these people tick is so important to warming them up as a potential partner, customer or supplier.

Trust is the real key here. People are more likely to engage with your business when they trust you as people and as a brand. So, spending time nurturing relationships and networking with other businesspeople and targets is time well spent.

Record, track and analyse your BD performance

With your goals, targets and timelines locked in, you’re ready to start putting this BD plan into action. But to know if you’re making headway, it’s a good idea to track your performance.

If you’re using project management software or a client relationship management (CRM) app, it’s easy to add notes, record your progress and tick off the key actions in the project. You can put the financial reporting tools in your accounting software to good use. Track cashflow for the project, increases in revenue and monitor your sales and marketing expenses etc.

Get ambitious with your BD ideas

No business stands still. Your aims and goals as the owner will change. Your market will evolve and new competitors will appear. Economic conditions and business opportunities will change. To keep your business at the cutting edge, it’s vital to keep your BD focus alive and well.

Remember to:

Define your goals and make it clear what you want the business to achieve
Align your BD activity with the company’s main growth plan
Log your ideas and potential opportunities and add them to your BD plan
Warm up your targets and potential partners and keep notes on your progress
Track your BD performance against your targets, budgets, revenues and timelines
Keep revisiting your plan and flexing your BD activity to the current market.

If you want to expand your business development activity, get in touch with us. We’ll help you highlight the opportunities and draw up the best possible plan for your BD activities.

Getting the best return from trade shows

brock@haslam.com.au (Brock Haslam) — Thu, 25 Aug 2022 03:30:32 GMT

Thinking of attending a trade show? Do your preparation so you maximise the marketing opportunity and get the very best return on your investment.

Covid-19 restrictions put a hold on trade shows for a couple of years but many industries are putting them back on the calendar.

Trade shows can be a great place to showcase what you do, reach new audiences and get some valuable face to face time with your customers. They can also provide opportunities to network with others in the industry.

But they can involve a lot of work, time away from the business and expense, so you’ll want to make sure you get the most out of them.

Will it deliver value?

Before you commit, think about what you want to achieve. The event should deliver value on two levels:

Value for your audience - Ideally this is the beginning of new or stronger relationships. Put yourself in your customer's shoes and think about what they will want to know. Make sure you demonstrate the compelling benefit you offer or problem you solve.
Value for you - Will the event bring you new customers, help increase your sales, build brand awareness, successfully launch a new product etc?

What to do before, during and after the event

Before the event:

Promote - Let people know you'll be there via your social media pages, website or emails. Consider giving away some tickets.
Use the hashtag - Most events will publish a hashtag to group the discussions. Use this in all your posts and tweets to reach a wider audience.
Grow your audience - Some events have ‘thought leading’ speakers who already have a big following on their social pages. Connect with them online by sharing and engaging as your page.
Get your marketing material ready - Expo stands, brochures, giveways etc. Aim for clear and compelling messaging that tells attendees why they should talk to you.
How will you attract attendees? - Such as a free sample or trial, an environmental giveaway, a guide, or an entry into a competition.
Prepare your sales spiel - Spend time with the team to practise your sales messages and run through a demo. If there is an app to scan attendees, make sure you have this ready to go before you arrive.

At the event:

Get on your social channels - Events are great sources for posts and tweets. Share photos and video. Invite people to your booth to find out more, or collect your giveaway. Remember to include your booth number.
Scan your attendees' details - Without their details, you can’t follow up!

After the event:

Follow up - get in touch with a friendly email with your new contacts as quickly as possible while you are top-of-mind.
Use the event in your marketing - Connect with new contacts, write a blog about the themes or trends, post on your social channels, or create a newsletter.
Analyse your results - Don't forget to measure the return on investment so you know what to change or do more of next time.

Do get in touch if you have any other questions.

Employees Leaving? Here’s What You Need to Know About Final Payments

brock@haslam.com.au (Brock Haslam) — Thu, 25 Aug 2022 03:29:45 GMT

Employees leaving your business? While some termination payments are simple, many are complex, and it's essential to get the payroll and tax correct so you don’t disadvantage employees or make costly errors. Talk to us before you make final payments.

Most small businesses in Australia employ people. One of the most common payroll errors is incorrect processing of termination payments when employees leave.

With the introduction of Single Touch Payroll Phase 2, getting payroll correct is more important than ever, as the data is reported directly to other government agencies. If the payroll detail is not accurate, it could affect employees' benefits or income tax.

Final Payments

Final payments for employees can range from very simple to highly complex. It depends on the circumstances of the termination, the industry, the modern award or registered agreement, age and other factors.

Before you pay an employee who is leaving your business, you’ll need to gather information to ensure accuracy.

Final date worked and reason for termination – resignation, retirement, abandonment of work, dismissal, redundancy, end of contract or medical invalidity.
Check termination provisions in the relevant award.
Check the National Employment Standards for the minimum notice period and redundancy pay if applicable.
If you usually pay annual leave loading, this is also paid on termination.
Amount of leave owing, and if there are any accrued rostered days off or time in lieu.

A termination payment can be made up of several elements:

Final ordinary hours.
Unused annual leave, loading and long service leave.
Redundancy payment.
Pay in lieu of notice.
Unused rostered days off.
Superannuation.
Ex gratia payment.
Other payments made in case of death, invalidity, or compensation or as required by certain awards.

Taxation of Termination Payments

Taxation can also be complex for final payments. Some payments are taxed at marginal rates and others at a flat rate. Special codes must be included in some termination pays to notify the ATO of payment types. For some payments, there are thresholds that must be observed that will affect the termination payment's tax rates and taxable amount.

Getting Help

The best general authorities for learning more about termination payments are the Fair Work Ombudsman and the Australian Taxation Office. For more complex payroll and termination payments, our payroll specialist can help, or we can refer you to an employment law expert if needed.

Fixing termination payroll errors can be costly and time-consuming, not to mention problematic for the employee if categories or taxes are incorrect.

Talk to us before paying employees, so you get it right the first time.

Business tips: Getting your operations up and running

brock@haslam.com.au (Brock Haslam) — Thu, 25 Aug 2022 03:28:43 GMT

Do you have all the operational foundations of your startup ready to roll? Talk to us about kicking off your new business and being ready for your first sale.

If you are ‘pressing go’ on your new business, what are the key elements to have in place before you begin trading?

The complexity of your operational model will vary greatly, depending on the kind of business you’re setting up. A small two-person design agency will have a simpler operational set-up than a wholesale food production business, for obvious reasons. So, this stage of the journey is about pinning down those key operational needs and getting an effective strategy together for how this business is going to work, in the real world.

Find your premises or workspace

Every business needs some kind of workspace, whether it’s your own home, an office or a factory space. This is the place where the actual work will be done and the central hub of your operations, so put some careful thought into what space will be needed. In terms of location, the type of business will also dictate whether you can be based where you are, or should you be where your customers are.

Buy your equipment and tech

You’ll have set aside some of your initial funding to buy the basic equipment and technology needed for the business. This will include all the machinery, plant, office furniture, IT, computing and telecommunications equipment required to run the business, plus any vehicles you’ll need.

Once you have your premises ready to roll, you can start moving your equipment in and actually ‘setting up shop’ in your brand new workspace.

Source your key suppliers

Most businesses will rely on some form of supply chain to keep the business ticking over. The design agency will probably need paper, printer ink and (no doubt) a lot of coffee to stay operational. And our food production business will need raw ingredients, cardboard boxes and product packaging to be able to produce their key products.

Your next step is to source the suppliers you need and set up contracts with these external companies. You may have pre-existing contacts in the industry, or you may be starting with a clean slate. EIther way, it’s important to build up a trusted supply network, where you’ve negotiated a good price and decent payment terms. Ultimately, your business can sink or swim based on the stability of your supply chain, so these relationships will be crucial to your success.

Get the logistics and delivery elements in place

Getting the finished product/service to your end customer is the main goal of any business, so the final piece of your operational puzzle will be sorting out your logistics and delivery systems.

For a small service-based startup, like the design agency, the end offering is likely to be either wholly digital or a mix of print and digital. The end delivery process is relatively straightforward and will mostly consist of getting the final signed-off assets to the customer. For a complex manufacturing or production startup, like the food business, the delivery systems will be a vital part of their offering. As a food business, you’ve got to meet all relevant food hygiene timescales and standards, and get your fresh, high-quality food products safely to your customers.

A delivery system should be customised to each company’s specific needs, so it’s sensible to put plenty of thought into making this sysem efficient, cost-effective and productive.

If you’re at the early stages of planning out your business idea, please do get in touch. We’ll help you get your operations in order and properly aligned with your business model.

Talk to us about your startup plans.

Retail’s online boom: Are you getting a slice of the action?

brock@haslam.com.au (Brock Haslam) — Thu, 25 Aug 2022 03:27:47 GMT

Online shopping is hitting new records, growing dramatically and gaining new users. Is your business getting its slice of the online pie or do you need to invest more in your online presence?

In 2021, retail e-commerce sales amounted to approximately 4.9 trillion U.S. dollars worldwide, according to research by Statistica. At the same time spending at physical stores has dropped.

While that was strongly influenced by Covid restrictions and distancing measures, the trend is clear: online shopping is gathering steam.

You should be getting a piece of the online pie

Whether your business sells goods, services, or both, your customers are searching for you online. Your website is more than simply an online storefront or basic business card. It can be a tool for marketing, customer acquisition, sales and compliance.

It’s common to see businesses underinvesting in their website and social media branding – not spending time or money on staying up-to-date and in touch with customers, or providing a subpar customer experience. These days, it’s highly likely that your website or social media channels are your customer’s first experience with your brand.

Does your business provide a great user experience for your online customers?

To capture as much online business as possible, your website should be easy to navigate, mobile adaptable, and have a simple shopping cart and smooth transactions so customers can pay you with ease. Your social media presence will depend very much on meeting your customers where they spend time online, so it will vary by industry and target market, but it should reflect your business’s values and drive engagement and sales.

These are some absolute basics, so if your online presence isn’t clearing these low hurdles, you should talk to an expert about how to improve it.

How much should you spend?

Although we’re far from being website or social media experts, we can help you figure out an appropriate budget to invest in your company’s online presence. We’ll take into account factors like how much growth you might see, how much time you’re spending on it now, and how much money your business can afford to allocate.

Do get in touch , we’re here to help.

Coping with the skyrocketing cost of living

brock@haslam.com.au (Brock Haslam) — Fri, 22 Jul 2022 00:04:37 GMT

Household living costs are skyrocketing and seem set to keep rising throughout the year. Here are our 12 top tips for coping with the rapidly increasing cost of living – ways to earn more, spend less, and invest in your future.

Whether it’s refilling your petrol tank or paying at the supermarket checkout, the higher cost of living is hitting every household hard.

Across the world, everyday essentials are surging in price, up 7.2% year on year across the OECD. Unfortunately, experts predict that prices will keep rising for at least the rest of the year.

What can you do to try to keep up with the increasing cost of living? Here are our 12 top tips:

Look for ways to earn more

Grow your business’s profitability (talk to us about improving your profits) or ask for a pay rise.
Take in a boarder or flatmate.
Sell your unwanted items online.

Cut back where you can

Prepare more meals at home and spend less at cafés and restaurants.
Create a budget and keep your spending under control.
Reduce the amount of meat you buy.
Find ways to use your car less.
Cancel your credit cards and your buy now pay later accounts.
Review all your ongoing expenses like utilities, insurance and subscriptions – cancel, switch providers or get better deals.

Invest in your future

Think about investing in ways that are likely to outperform inflation – both shares and the property market have historically provided returns higher than inflation.
Start a new business, launch a new product or service, or try a side hustle.
Teach yourself about money and finances using free tools online and books from the library. Better money management will help you make the most of what you’ve got.

If prices rise by 7% this year, it won’t be easy to increase your income by the same amount. But if you can increase your income by 5%, then make up the rest through savings, while also investing for the future, you can still come out on top once inflation settles down and prices stabilise.

Worried about money? Talk to us . We have years of experience through many economic cycles, including previous periods of high inflation – and we’re always here to help.

Tax Tips for Property Investors 2022

brock@haslam.com.au (Brock Haslam) — Thu, 21 Jul 2022 23:43:32 GMT

Are you making the most out of your investment property? Getting the income and allowable tax deductions right can be complex. We’ll help sort out the details so you’re claiming all you can.

If you have income from investment properties, now is the time to start gathering your records and reviewing your expenses for the 2022 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.

Rent received, whether paid directly to you or through an agent or through an online management platform. Rent includes recurring regular amounts as well as any lump sum amounts paid in advance.
Rental bonds returned for example if the tenant caused damage or defaulted on rent payment.
Insurance payouts received as compensation.
Expenses reimbursed by the tenant, for example if they have caused damage and you have paid for the cost of fixing the damages, or if they have reimbursed you for water.
Extra fees received, for example letting or booking fees.
Government rebates, for example for installation of solar utilities.

You will need statements or recipient created tax invoices from agents or management platforms and documents for all other payments received.

Tax Deductions

Expenses You May be Able to Claim This Year

Advertising for tenants
Body corporate fees
Council rates
Water supply charges
Land tax
Cleaning, gardening, pest control and property maintenance
Insurance
Agent fees
Repairs and maintenance
Some legal expenses
Loan interest

Other Expenses

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 Property Records

We’d love to help ensure you are claiming the right deductions to make the most out of your investment property this year and beyond. Get in touch for your 2022 tax return.

How an accountant supports your business development

brock@haslam.com.au (Brock Haslam) — Thu, 21 Jul 2022 23:40:54 GMT

Accountants don't just look after the financial side of your business. With our expertise behind your business development, we can help you turn your strategic ideas into real success stories.

So, how can we help you achieve this?

Talk to you about your strategic goals

Help you create a clear BD strategy and plan

Having a defined set of BD goals is a good starting point. But to put this all into action in a productive way, you’re going to need a comprehensive plan for your BD projects.

Introduce you to a broader network of business partners

Provide better routes to funding and investment

Help you track and measure your BD performance

If you want to get more from your BD, please do get in touch . We’ll partner with you to put some real drive, experience and impetus behind your BD strategies.

Changes to Super Guarantee for 2022

brock@haslam.com.au (Brock Haslam) — Thu, 21 Jul 2022 22:58:19 GMT

Super Gurantee business changes

From 1 July 2022, there were two important super guarantee (SG) changes that will apply to your business.

These are:

the rate of SG is increasing from 10% to 10.5%
the $450 per month eligibility threshold for when SG is paid is being removed.

What this means for you

These changes mean that from 1 July 2022 :

you'll need to make SG contributions at the new rate of 10.5%
employees can be eligible for SG, regardless of how much they earn. You may have to pay SG for the first time for some or all of your employees.

We're working with digital service providers (DSPs) to make sure payroll software is updated in time. If you use a tax agent, they'll also be aware of these changes and able to assist you.

Our updated online tools and calculators will be available to help you from 1 July 2022.

What you need to do

Check that your software is updated to correctly calculate your employees' SG entitlement from 1 July 2022.

If the removal of the $450 threshold means you'll be paying SG for one or more employees for the first time, you'll need to give them a Standard Choice Form .

If your employee does not provide you with a choice of super fund, review the Stapled Super Fund information on our website for guidance on what you need to do next. A stapled super fund is an existing super account linked to an individual employee.

If you need any more advice, please contact us .

Why You Should Check Supplier ABNs

brock@haslam.com.au (Brock Haslam) — Thu, 21 Jul 2022 22:55:35 GMT

Do you check your supplier ABNs? Correct tax codes are essential for getting GST on the BAS right. Now is a good time to review supplier ABNs and GST status. Get in contact, and we’ll make sure you’re not paying more GST than you need to.

Are you in the habit of checking your suppliers’ Australian Business Numbers?

When you make business purchases, you should receive a valid tax invoice from the supplier to prove that your purchase is a business expense. The ABN holds certain information, including contact details, business structure and GST registration.

Many business owners don’t routinely check the ABN of suppliers, resulting in incorrect GST claims – either claiming too much or not enough.

How to Check a Supplier ABN

Go to the ABN Lookup website.
Enter the supplier ABN provided on their bill.
Review the current details, including the GST registration date. This will show whether a business is registered and, if so, from what date.
The entry will also show if an ABN has been cancelled.
Print or save the PDF extract and attach it to the supplier record in your accounting software.
You can search multiple ABNs by uploading an Excel spreadsheet template.

When to Check Supplier ABNs

It’s good practice to check the ABNs of all new and major suppliers and any large or unusual payments. Always check the ABNs of suppliers you know to be new to business.

Check your accounting software – there may be add-ons that will automatically check the ABNs for you. Or, you may choose to audit ABNs once per quarter or even once per year for smaller businesses. If you do an annual check, make sure you do it in the March quarter so you can make any GST adjustments in the June BAS if needed.

Better yet – check the ABN of every new supplier and save the details in your software, so you always have the correct information and tax codes.

What if it’s Wrong?

It's not uncommon that suppliers (especially those new to business) charge GST on their invoices when they are not yet registered for GST. Some suppliers may also provide the ABN of another business. For example, one person may conduct business under both a sole trader ABN and a company ABN and provide you with an invoice from the wrong entity.

If you conduct a review of your suppliers’ ABNs and find that some have been charging GST in error, notify the supplier and ask for a refund of the GST or a credit to the value of GST incorrectly charged. Ask the supplier to reissue correct tax invoices.

Another common error is to claim GST on purchases made from small overseas businesses that are not registered for GST in Australia.

Need Help with BAS Adjustments?

Once you have corrected the entries in your software, you will need to make a GST adjustment on your next BAS.

If you have made significant changes over multiple BAS periods, it may be challenging to correct the GST.

Get in touch if you’d like to conduct an audit of supplier details and pick up the necessary adjustments to GST. Amending prior BASs might result in further GST payable, but it could just as easily result in a refund!

Is Your ABN Still Active?

brock@haslam.com.au (Brock Haslam) — Thu, 21 Jul 2022 22:54:34 GMT

Are your ABN details up to date? The ATO may automatically cancel your ABN if they think the business has stopped trading. Talk to us. We can make sure the ATO has current information.

Is your ABN still active?

The ATO has brought in an automated cancellation notification service for potentially inactive Australian Business Numbers (ABNs).

If you haven’t had any business activity or are behind in getting your activity statements lodged, the ATO will review your ABN and send a message asking you or your registered agent to confirm if the ABN is still required.

If your business has reduced or paused activity, you still need to lodge an activity statement, even if the amount reported is little or nil.

If your business has stopped trading, the ABN should be cancelled. If the ATO contacts you or your agent, you don’t need to do anything – the ATO will cancel the ABN.

If your ABN has been automatically cancelled in error and you plan to continue business activity, you’ll need to reactivate the ABN.

It’s good to review your ABN details annually to make sure your contact details are up to date so that you receive the ATO’s ABN cancellation notifications before they act.

It's important to have the correct address, phone, email and authorised contact details because government emergency services use this data to contact people during natural disasters.

Get in touch today if you’d like us to check or update your ABN details on the Australian Business Register or reactivate a cancelled ABN.

Business tips: Outlining your ideal customer

brock@haslam.com.au (Brock Haslam) — Thu, 21 Jul 2022 22:52:10 GMT

Do you know who your startup’s ideal customer should be? We’ll work with you to define your customer audience and how it impacts your business strategy.

Customers form the beating heart of your startup. Without a stable customer base, you can’t generate sales, bring in income or create a viable business model. So, it's vital for your new business to have a very clear and fleshed-out idea of your 'ideal customer'.

Your perfect customer may well evolve and change over the life of the business, but it’s important to define your initial customer audience right from the outset.

Who is the end customer for your products and/or services?

Whenever you create a new product or service, you should have a very specific idea of who your target customer will be. Understanding that customer profile is incredibly important.

Is your ideal customer a high-street consumer, or a procurement manager in a business? Will your audience be younger or older, at the top end of the economic spectrum, or someone with limited cash to spend. Think about the full demographic breakdown of this perfect customer and make as detailed an outline as possible, so you know exactly who you’re targeting.

What are the key needs of this demographic

A good business model provides a solution to a given customer need. Understanding that need in forensic detail is what gives you the power to customise and tailor your offering.

Put yourself in your ideal customer’s shoes and imagine their daily lives. What are the challenges they face? What are the problems holding them back? What are their dreams and aspirations? What kinds of people do they want to become? The more information you can glean on their everyday requirements, the more primed you’ll be to target those self-same needs.

How does your product/service meet these needs?

Knowing your customers’ key needs is only half of the conundrum. What you have to do now is offer a product or service that actually MEETS these needs, at a price the customer will pay.

Ask yourself, ‘what does the customer want, and how can we provide it?’. If you can design the right solution, you’re already halfway to creating a new customer. For example, eating enough fresh fruit and vegetables is something we all struggle with. A business that delivers fresh fruit & veg smoothies to people’s home or work addresses, makes it easier to eat a healthy diet. The ‘needs’ there are healthy eating, convenience and price. Get it right, and you’ve filled that customer niche.

How do you intend to reach this customer audience?

To sell your products, customers must be aware of your brand. So, an important part of your customer research will be understanding which marketing and promotional channels to use.

Knowing where your customers hang out – both online and in the real world – is a critical piece of information when it comes to promotion. In the digital age, there’s a baffling mix of different online channels and social media platforms to navigate. But by doing your research carefully, you soon start working out whether your target audience are Facebook fans, or Twitter lovers. The more detailed you can be about these customer preferences, the better you’ll get at choosing the right promotional and marketing routes.

Bringing it all together into a customer profile

By combining all the information you’ve gathered into one concise customer profile, you give your sales and marketing team a very clear picture of who to target.

This would be the customer profile in our food delivery example:

Customer profile : busy, time-poor professionals in the 25-45 age bracket, with an interest in healthy eating and nutrition
Customer need : finding the time to eat their 5-a-day fresh fruit and veg
Our solution : Fresh fruit & veg smoothies delivered to their home or work address
Marketing channels : train station advertising, Instagram adverts and ads in city gyms.

If you’re at the early stages of planning your customer audience, we can help you define your business strategy accordingly.

Get in touch about your startup plans.

Minimum Wage Increase 5.2% from July 1

Wed, 15 Jun 2022 04:40:23 GMT

On 15 June 2022, the Fiar Work Commission (FWC) anncouned a $40 increase to the national minimum wage; this amounts to a 5.2% increase.

The Fair Work Commission decided to increase modern award minimum wages by 4.6% subject to a minimum increase for adult award classifications of $40 per week.

These increases will generally take effect from 1 July 2022. However, the FWC determined that a delay in the operative date was warranted for modern awards in the aviation, tourism and hospitality sectors. This means that the wage increases will operate from 1 October 2022 for the following awards:

Aircraft Cabin Crew Award 2020

Airline Operations-Ground Staff Award 2020

Air Pilots Award 2020

Airport Employees Award 2020

Airservices Australia Enterprise Award 2016

Alpine Resorts Award 2020

Hospitality Industry (General) Award 2020

Marine Tourism and Charter Vessels Award 2020

Registered and Licensed Clubs Award 2020

Restaurant Industry Award 2020

If you have employees who are covered by a Modern Award, review their salaries/wages to ensure they are being paid at least equal to the new minimum award rate. You are not obliged to increase an employee’s salary or wage if they are being paid in excess of the award minimum wage.

Some penalty rates and allowances in Modern Awards are linked to the minimum wage rate so employers should check to see what allowances/penalty rates need to be increased based on the minimum wage increase.

Should you wish to discuss your specific obligations as a result of the minimum wage increase or require any advice on a workplace issue please contact us for advice.

Protect Yourself with Audit Shield

Thu, 26 May 2022 22:27:09 GMT

Subscribe yourself to our Audit Shiled product to avoid costly accounting fees if the ATO checks up on you.

Audit Shield is an optional service we are now providing to protect you from incurring unexpected costs as a result of an audit, inquiry, investigation, review or examination (audit activity) of lodged returns or financial compliance obligations instigated by the Australian Taxation Office (ATO) and other government revenue authorities. Specific levels of cover are available for individuals, businesses and Self Managed Superannuation Funds (SMSFs).

Our recommendations to combat the increase in audit activity

1. Be in the know

Gain a better understanding of your financial position and tax particulars by talking with your accountant. Your accountant can also conduct a risk assessment, and in doing so you could both discover a better way to structure your affairs.

2. Seek expert advice

In the event that you are contacted by the ATO or other government revenue authorities, the best action for you to take is to advise them that you would firstly like to talk to your accountant. As your accountant, we have the experience in dealing with these matters and will be more likely to reduce the time and cost required to attend to the audit activity in question.

3. Consider Audit Shield

We proudly offer our Audit Shield service as a mechanism to protect you against unplanned professional fees that can arise as a result of government revenue authority initiated audit activity. With the government’s focus on increasing gross revenue, taxpayers will be scrutinised – increasing your chances of an audit, inquiry, investigation, review or examination. Even if no adjustments are required to your lodged returns, significant costs can still be incurred in order to satisfy the requests of the ATO or other government revenue authorities responsible for the instigation.

Interested in Audit Shield? Contact us today for a quote.

Super Guarantee Rate Rises in July to 10.5%

brock@haslam.com.au (Brock Haslam) — Thu, 26 May 2022 22:07:14 GMT

The super guarantee rate will rise in July this year to 10.5%. Have you calculated the extra cost to your business? This rate increase may also affect salary packages. Talk to us now to start preparing for the changes, so you don't get caught out.

The superannuation guarantee statutory rate has remained at 9.5% since July 2014. However, plans have been in place for some years now, to increase the rate to 12% incrementally.

In July 2022, the rate will rise to 10.5%. From then on, the rate will increase by 0.5% each year until July 2025 when it will reach the legislated 12%.

Prepare Now for the July Rate Rise

Review your current superannuation costs for all employees, both hourly and salaried.
Review any salary packaging arrangements. Is the agreement inclusive of superannuation or is super paid on top of the agreed salary?
For salary packages inclusive of super, you will need to check the contract's wording to make sure you apply the changes correctly. This change may also impact annualised salary arrangements.
Calculate your revised payroll costs from July, showing the current wages and superannuation expense compared to the new rate from July 2022. Highlight the increased amount per month or quarter, so you know precisely what the impact will be.
Discuss the super rate increase with your employees now. Let them know that there will be an increase of 0.5% each year from now until July 2025 when the statutory rate will reach 12% and remain there.
Remember – short payment or late payment of super can incur hefty penalties – plan now for higher payroll expenses from July, so you don't get caught short.

If you’d like help reviewing payroll costs and employee agreements, get in touch now, and we'll make sure you have accurate reports to make planning for the rate rise easy.

Getting organised now means that you'll be well prepared for your business's increased costs when the first payment is due later this year.

New Family Trust Tax Rules – Will the Changes Impact You?

brock@haslam.com.au (Brock Haslam) — Thu, 26 May 2022 22:03:54 GMT

The ATO’s new directives on the taxation of trust distributions mean it's essential to review arrangements before the new rules start on 1 July 2022. Book a planning session to ensure you've got the best beneficiary arrangement for your family.

If your trust pays adult-child beneficiaries, then you’ll need to know how the new ATO tax guidance rules could alter your beneficiary arrangements. The proposed changes won't affect every small business operating through a trust arrangement, but it's important to check that existing provisions meet the new requirements.

The ATO has released several related documents as a draft package that outlines specific taxpayer arrangements it is examining. It is interested in agreements where parents benefit from trust income allocated to their children or other family members, particularly where tax avoidance could be an issue, and family member beneficiaries are unaware of the provisions.

Another area of focus is the application of Division 7A rules to trusts that pay private companies, especially with related business entities and where the trust and company are part of the same family group.

Do Your Trust Distribution Arrangements Need to Change?

Trust beneficiary arrangements can be complex, and we want to make sure your trust arrangements meet the ATO guidelines so you don’t get penalised. We’ll examine your situation in detail against the new information and advise you if any changes to trust arrangements are required.

With the ATO’s stronger position on the taxation of trust distributions, it's essential to review arrangements before the end of this financial year. The new rules are set to apply from 1 July 2022.

Get in contact with us today, so we can make sure you’ve got the best beneficiary arrangement for your business and family.

Understanding the Basics of Business Taxes

brock@haslam.com.au (Brock Haslam) — Thu, 26 May 2022 22:01:42 GMT

Thinking about starting or changing a business? We'll make sure you have the appropriate tax registrations. We'll help you manage and plan for the relevant taxes your business will need to pay and we’ll claim the right tax concessions.

Different business structures pay taxes in different ways. Although there are many taxes that a business might be affected by, the main ones are goods and services tax, income tax, pay as you go withholding tax for employees, payroll tax and excise tax. Other taxes that a business could encounter are fringe benefits, capital gains, property, vehicle and other duties and levies administered by state or local governments.

Taxes Paid on the Business Activity Statement

Once your business is registered for the relevant taxes, several are reported and paid as part of the monthly or quarterly activity statement.

GST is collected from customers and paid to suppliers, and you pay the difference between GST on sales and purchases.
PAYG Withholding for employees or suppliers that don’t provide an Australian Business Number.
PAYG Instalments contribute towards an expected income tax bill.
Other taxes paid on the BAS (if applicable) are fringe benefits instalments, fuel tax credits, wine equalisation tax and luxury car tax.

Taxes and Other Fees Paid to State Revenue OfficesSome business taxes are paid directly to the state revenue office, such as land tax for property purchases and payroll tax once the state threshold of reportable wages is reached. Other common government duties include stamp duty on property transfers and land tax.

Income Tax for Businesses

Income tax is calculated after the end of the financial year, taking into account any PAYG instalments already paid. Tax deductions for business expenses reduce your taxable income and, therefore, your tax bill.If financial gain is made on the disposal of assets, such as property or shares, capital gains tax is paid on the amount of financial gain and is paid as part of income tax.Income tax for business is calculated differently according to the type of entity.

Small Business Tax Concessions

Your tax agent can make sure you are claiming all the small business tax benefits that you are allowed through concessions that reduce the amount of tax liability. For example, there are specific concessions for asset write-off, primary producers, fringe benefits or start-up expenses. Concessions also apply in some situations to reduce the amount of capital gains tax payable.

Thinking of Starting or Changing a Business?

Talk to us about adding or cancelling tax registrations, concessions and planning for the various taxes your business will need to manage.

Understanding the Basics of Personal Income Tax

brock@haslam.com.au (Brock Haslam) — Thu, 26 May 2022 21:59:15 GMT

Do you understand your personal income tax, what you have to declare, and how much you can claim? We can help get your taxable income correct, maximise allowable deductions and get the best tax return.

Australian residents pay income tax on all forms of income, after a tax-free threshold of $18,200. Tax is calculated at four different rates according to how much income you earn each year, and the tax rate increases the more you make. The highest tax bracket applies to those with a taxable income of more than $180,001.

Foreign residents, children and working holiday makers are taxed differently.

Income tax is the most significant type of tax collected by the ATO, making up around half of all taxes received.

Types of Taxable Income

Tax is calculated on various forms of income, including employment, government support, investment and business income.

Employment income includes wages, salary, allowances, bonus payments, termination payments, some lump sum payments, fringe benefits and superannuation contributions.
Government support includes all pension payments, allowances, carer support and COVID-19 support payments. Some government support, such as disaster recovery payments, are tax exempt.
Investment income includes interest paid by financial institutions, share dividends, rent from investment properties, managed investment trusts and capital gains from profit on selling assets. Cryptocurrency gains are also included.
Business income for sole traders is assessed as personal income, while business income for other entities such as companies is taxed separately to the individuals running the business entity.

Annual Tax Return

You have to declare all types of income, Australian and foreign. Any income received in foreign currency needs to be converted to Australian dollar value.

Most people need to lodge a tax return with the Australian Taxation Office each year by 31 October. If you have a tax agent lodging on your behalf, you’ll get an extension.

Your employer withholds tax from your wages or salary each pay period and pays the ATO on your behalf. If you’ve earned more money from other sources, such as investments or a side hustle, you might end up with a tax bill in addition to what has been withheld from your pay. When we calculate your taxable income, we’ll let you know in plenty of time if you have to pay more.

Make the Most of Allowable Deductions

Allowable deductions vary significantly according to the type of income you have earned. You can’t claim private expenses or anything that an employer has reimbursed.

Common deductions include home office, tools and equipment, accounting fees, donations, personal super contributions and vehicle expenses. However, it’s best to check with us as you may be able to claim other expenses such as education, cleaning or professional memberships.

When preparing your tax return, we will include any allowable offsets, rebates or concessions that may apply to your situation to reduce your tax bill. We’ll also check that you’ve included all allowable deductions for your situation.

5 tips goal-setting tips for the year

brock@haslam.com.au (Brock Haslam) — Thu, 26 May 2022 21:56:05 GMT

Effective goal setting will help you get the very best out of the year. Our 5 goal-setting tips will help small business owners reach new highs.

Wouldn’t it be great to have your best year ever, this year? Whether you want to grow your business or take more time for yourself, these goal-setting tips can help you achieve your long-term plans.

Think big! - What do you want from your life – and how can your business help you achieve that? Think about next year and beyond; what does your business look like in five or 10 years? When you know what end point you’re aiming for, it’s easier to set goals that move you in the right direction.
Pick something you can measure - Vague goals aren’t as helpful as those you can measure and monitor. Think about what you already measure in your business and how you’d like to see those metrics change. For example:

A 3% increase in net profit year-on-year
A 2% reduction in expenses
1 new customer per month
Reduce average payment time to under 50 days
4 weeks of holiday during which you don’t go into the office at all

Make a plan to achieve each goal - Once you’ve picked a few goals, come up with ways to achieve them. It could just be back-of-the-envelope thinking, or have a brainstorming session with your team or your advisers (give us a call!). When you have a plan in place, do your best to follow through and make it happen.
Keep monitoring your progress - Check in each month to see how you’re tracking with your goals. Set yourself reminders on your calendar or make it part of your invoicing cycle. If you’re not quite on track, you can make tweaks or come up with some fresh ideas to help you reach your targets.
Plan a celebration! - Give yourself a good reason to keep striving for your goals. It might be a long lunch, a trip to the movies, a manicure, or a beer advent calendar next December. Something you’ll enjoy that’s not going to blow the budget.

We can help

Not sure what your goals should be or how to monitor them? We can show you where to find the information you need, how to check on it, or keep an eye on it for you.

Our team also has some fantastic ideas for how to reach your goals and build your business – get in touch !

Business tips: Writing a mission statement

brock@haslam.com.au (Brock Haslam) — Thu, 26 May 2022 21:30:20 GMT

Do you know WHY your business does what it does? A mission statement can set the best possible foundations for your business.

You've had your initial business idea and written a plan. But do you know WHY you're creating this business, or HOW you’ll deliver your end product/service? What will the company's underlying purpose be and how will your core values drive the business?

To get these crucial elements ironed out, it’s a good idea to write a ‘mission statement’ for your startup – a short summary of the aims and values of your business.

WHAT does your business do?

The first thing to pin down is what the business actually does – i.e. at the most basic level, what is the output of your new business idea, and what is its purpose.

Defining this ‘WHAT’ element might sound simple, but describing it in a clear and concise way will help you to begin the process of completing your mission statement. A bicycle manufacturer might define their WHAT as ‘making quality bikes at great prices, for adults and kids to enjoy’. Whereas a creative agency might define their WHAT as ‘delivering creative solutions to our business clients’ design problems’.

HOW does your company do what it does?

Next, have a think about HOW you achieve what you do. How do you deliver your product or service to customers, what operations are involved and what makes your way different?

The bicycle manufacturer might have a big focus on making hand-made bikes, so their HOW could be ‘We make our bikes by hand, and to order, using our 25 years’ experience in the industry to deliver the best possible quality’. While the creative agency might say ‘We use the latest design approaches, coupled with cutting-edge design software, to bring our clients’ design to life’. Both of these statements explain the underlying operational processes in the business, and how each business delivers its product/service to the end customer.

WHY does your company do what it does?

Most businesses are great at defining the WHAT and HOW elements of their business model. ‘I make Product A using Process B’. But it can be a lot harder to define WHY you’re doing this.

Ultimately, the WHY is the most important element of your mission statement. In essence, you’re describing what drives you to do what you do. What are your big aspirations for the business, and what do you want to achieve? For the bicycle manufacturer, the WHY statement may be ‘We want to encourage our community to get on their bikes, become more sustainable and stay healthy’. And the agency may define their WHY as ‘We want to build innovation into everything we do, bringing fresh ideas to our clients’ design’.

What are the core values driving your enterprise?

Your personal values as a founder might not sound like a crucial element to think about. But any new startup is a reflection of the ideas, ambition, drive and values of its founders.

The ways in which you behave, the vision you provide for your team and the ways in which you interact with your first customers will all underline the foundation values of your new business. Think about what drives you. Is it profit and money? Or do you want to change the world in positive ways? Or provide employment and opportunities for your local community?

Bring it all together into your mission statement

If you’ve answered those four questions, then you have everything you need to create a comprehensive and useful mission statement for the business.

For example, for the bicycle manufacturer, it may look like this:

Happy Spokes Bicycles Ltd:

What we do: We make quality, sustainable bikes at great prices, building a range of city bikes for adults and kids aged 9 to 90 to enjoy.
How we do it: We make our bikes by hand, and to order, using sustainable processes and our 25 years’ experience in the industry to deliver the best possible quality.
Why we do it: We believe that cycling is the future. We want to encourage our community to get on their bikes, become more sustainable and stay healthy.
Our core values: Our 5 core value pillars are:
Sustainability – we strive to limit our impact on the planet and environment
Health – we aim to make our customers healthier and fitter
Craftsmanship – we believe in keeping hand-made production alive and well
Value – we want our bikes to be affordable to all
Fun – we aim to make Happy Spokes a fun community to be part of.

With your mission statement written, and a business plan under your belt, you have the best possible foundations on which to build your business enterprise.

Your mission statement can set the foundations for your company’s future.

Talk to us about your startup plans.

What’s your net worth?

brock@haslam.com.au (Brock Haslam) — Thu, 26 May 2022 21:26:17 GMT

What’s your net worth? What should it be? Here’s how to quickly calculate your net worth so you can track your financial progress and check that you’re going in the right direction.

Calculating your net worth can be a quick and easy way to get an outline of your financial position. By working out your net worth each year, you can get a sense of whether your finances are going in the right direction.

Tracking your net worth can also help you focus on the big picture during those times when it seems like you’re going backwards at a rapid rate – when your car or an appliance breaks down or you dip into your savings to cover an essential but unexpected expense.

How to calculate your net worth

Net worth is assets minus liabilities. The simplest way to work out your net worth is to jot down the value of your assets and then all your debts. Subtract the total value of the debts from the total value of the assets and that’s your net worth.

What should your net worth be?

Net worth tends to increase over time, and there are various formulas saying what you ‘should’ be worth for your age. For example, one estimate says that by age 30 your net worth should be half of your annual income; by 40 your net worth should be double your annual income; by 50 it should be four times your income; and by 60 it should be six times your annual income.

But rather than comparing yourself to a formula, net worth is more useful as a way to monitor your progress. If it’s increasing steadily over time, you’re doing something right.

Want to talk about hitting your financial targets?

If you’d like to talk about reaching your financial goals, either personally or in your business, get in touch . We’ve got lots of ideas and strategies for maximising your income and minimising your costs, and we’d love to hear from you.

High inflation: What does it mean for your business?

brock@haslam.com.au (Brock Haslam) — Thu, 26 May 2022 21:24:10 GMT

Inflation is hitting hard – what does it mean for your business? The downsides, a couple of potential positives, and how to get in touch to figure out how much you should raise your prices.

High inflation is hitting businesses and households hard in 2022. Across the world, inflation is running high, thanks to factors like pandemic disruptions, monetary stimulus and supply-chain issues.

You’ll see the effects of inflation at the supermarket and the fuel pump – and in your business.

Eroding each dollar’s buying power

Inflation increases prices, which eats away at the buying power of your dollar. For business owners, that means you’ll encounter higher costs from your suppliers. Materials are more expensive, transport has become far more costly, and basics from office supplies to utilities are all rising in price.

In addition, your staff are probably asking for pay rises. For you and your employees to keep up with inflation, your income needs to increase by at least the same amount as inflation. To achieve that could mean a seriously large wage bill increase for your business.

Rising interest rates

Central banks try to keep inflation at a sustainable level. They react to high inflation by raising their interest rates, which slows the economy and puts a handbrake on inflation. As a business owner, you’ll see this reflected in a higher cost of borrowing, and the same will apply to your home loan.

Inflation does have some side-effects that could be positive for your business. First, it tends to push up the value of big-ticket assets that your business might own, like property or plant. Second, it makes debts seem smaller – your debt amount stays the same but hopefully your income rises.

It’s time to raise your prices

With inflation causing you to spend more, your business will also need to raise prices. This is always a sensitive topic to tackle with clients and customers, but at least the way has been paved for you by prices rising across almost every single sector and industry.

If you’re wondering how much you need to increase prices in order to keep up with inflation or maintain your margins, do get in touch . We can run the numbers, test out scenarios and figure out a sweet spot that will work for your business. We’d love to help.

Are You Providing Employee Benefits Due to COVID-19? Look Out for FBT

brock@haslam.com.au (Brock Haslam) — Thu, 26 May 2022 21:21:40 GMT

Are you providing employee benefits other than salary due to COVID-19? If so, you could be up for fringe benefits tax. FBT is complex, but we can assess whether exemptions apply to your business or assess any liability. Book a time with us.

Are you providing rapid antigen tests and other COVID-19 related benefits to employees?

Business owners providing benefits in addition to salary or wages because of COVID-19 need to check if fringe benefits tax could apply.

Although you may be providing various benefits to create a safe workplace and support employees, you may be inadvertently liable for fringe benefits tax.

Track COVID-related benefits paid for by the business

COVID-19 PCR and RAT testing
Work from home equipment
Work vehicles that are garaged at employees’ homes
Vaccination incentives
Travel or accommodation costs
Protective gear
Emergency health care

If you pay for COVID-related services for employees, you’ll need to track them in your accounting system to make it easy to determine if you have an FBT liability and if you should report any amounts on employees’ end of year income statements.

The minor benefits FBT exemption may apply for many or all of the benefits you have provided to employees. Still, we'll need to review your records to ensure that you’re not going to get a surprise bill from the ATO down the track!

Unsure if FBT applies to your business?

FBT is a complex area of tax law, and there are specific tests that must be satisfied to be exempt from FBT.

Book an appointment with us to go through the benefits you have provided to employees. We can look at the minor benefits and otherwise deductible rules to ensure you’re not paying more tax than you need to. If you’re not already registered for fringe benefits tax, we will look at whether FBT applies and register your business if needed.

We’ll also notify you of any amounts that need to be reported on employees’ income statements at the end of the payroll year.

The fringe benefits tax year finishes on 31 March, so now is an excellent time to get ahead and assess whether your business could be up for an FBT bill.

Cash or Accrual Accounting – What’s the Difference?

brock@haslam.com.au (Brock Haslam) — Thu, 26 May 2022 21:16:43 GMT

Cash or accrual – what's the difference? It's all in the timing! Small businesses often use the cash basis for the BAS and accrual for income tax returns. We can help you decide what's right for you.

There are two methods of calculating the amounts stated in business financial reports, and the difference is all in the timing.

Cash reporting – income is recorded when cash is received in your bank, and expenses are recorded when money is paid out of your bank.

In cash reporting, the income and expenses are reported in the financial period that the cash transaction occurred.

Most small businesses report on a cash basis (although they can opt for accruals), but those with a turnover of more than $10 million must report on an accruals basis. Businesses that get paid immediately may find cash flow easier to manage on a cash basis.

Cash reporting is generally simpler and an easy option for the BAS, although it's not always as accurate as the accrual system is.

Accrual reporting – income is recorded when a customer is invoiced, and expenses are recorded when suppliers issue bills.

In accrual reporting, the income and expenses are reported in the financial period that the transaction was created, regardless of whether a payment was received or made.

Businesses that don’t get paid immediately may have a more accurate picture of their financial position using an accrual basis, although it requires more detailed bookkeeping. While cash reporting gives a short-term picture of your accounts, accrual reporting gives a longer-term view and is more accurate for planning and decision making.

BAS and Tax Returns

Many small businesses are registered for cash reporting for the business activity statement, but the tax agent generally reports the income tax return on an accrual basis. The accrual system gives a more accurate financial picture for income tax calculation.

Sometimes it isn't always clear! We're here to help make it simpler, so get in touch if you'd like to understand more about your financial reporting for BAS and tax.

Making sure your new business finances are in order

Thu, 26 May 2022 21:12:55 GMT

Do you know your P&L from your balance sheet? If not, we’ll get your startup up to speed on all the basics of company accounting.

Getting your head around the basics of bookkeeping, accounting and good financial practice may not come naturally to all business owners. But the better you understand the numbers, the more control you'll have over your business and your decision-making.

To get you started, here’s a rundown of some of the main financial terms and how they apply to the financial management of your startup.

Revenue and money coming into the business

Most of us understand that revenue is the income you generate through your sales. If you multiply your average sale price by the number of units sold, this is the top level number you get. It’s a gross figure (i.e. before any deductions) and gives you a clear idea of how much money the business is generating through its sales activity.

Revenue can come from various sources, and each income source is known as a ‘revenue stream’. Revenue streams could include product sales, income from services you provide, income from intellectual property you own (like patents) or income from assets the business owns, like property you rent out at a profit.

Having several revenue streams is a good idea, as it spreads your income generation across multiple areas and reduces the risk of one revenue stream drying up.

Expenditure and money going out of the business

Expenditure refers to any payments you make (either in cash or credit) against the purchase of goods and/or services. In a nutshell, expenditure is the money that’s going OUT of the business, so it’s important to have a good grip on these costs and to make sure you’re not spending any more money than you need to.

Costs that would fall under expenses include your supplier bills, your payroll expenses, your operational overheads and the costs of any raw materials and goods you buy to keep the business running. The less you pay out in these expenses and overheads, the more of your revenue will end up as profit – as we’ll see in the next section.

Profit and loss (P&L)

Your profit and loss statement (usually referred to as your P&L) is an incredibly important financial report to get your head around. The P&L summarises your revenues and expenditure over the course of a period – usually for the month, quarter or year that’s just ended – and gives you a breakdown of the profits and losses the business made during that period.

If you make more in sales revenues than you spend in outgoing expenses, you make a profit (and that’s vital to your success). For any business to be financially viable, your financial model MUST be able to generate profit. Without profits, the business can’t make money, you can’t reinvest back into the company to drive growth, and you (personally) won’t get paid anything.

Cashflow statements and positive cashflow

Your cashflow statement is another vital tool in your accounting toolbox. To keep the lights on in the business, you need enough available cash to cover your everyday expenses. Your cashflow statement shows you the cash inflows (money coming into the business from revenues etc.) alongside the cash outflows (payments to suppliers, or operational overheads etc).

For the business to have enough cash in the pot, your cash inflows MUST outweigh your cash outflows. This is called being in a ‘positive cashflow position’ and it’s a level of financial health that every startup should aim for. By tracking inflows and outflows, and projecting them forwards in time to create forecasts, you can make sure there’s always available cash in the business.

Improving your understanding of the numbers

It takes time to pick up the financial jargon and accounting terms that will help you understand your accounts. But don’t despair: as your startup journey evolves you’ll gradually begin to get your head around the important numbers, metrics and reports.

Other important finance terms to understand include

Turnover = the total sales revenue made in a period. It’s also sometimes called ‘gross revenue’, as it’s the number prior to any deductions being made.
Assets = the things you own in the business, like equipment, property or cash etc.
Liabilities = the things you owe to other people, like bills, debts and loan repayments.
Balance sheet = a snapshot of your assets and liabilities on a given date.
Working capital = your current assets minus your liabilities. In common usage, it’s the capital (money) you have in the business to keep the company operational and trading.
Funding = bringing additional capital into the business, usually in the form of business finance products like loans, or through private investment from outside sources.
Credit score = a rating given to the financial health and risk level of the business. The bigger the score, the lower the risk – and the better your access to funding.

If you’re planning for your business, please do get in touch . We’ll help you set up the ideal accounting system, so you’re in complete control of your finances.

New Receipt Capture for QuickBooks Mobile

Thu, 26 May 2022 21:04:15 GMT

If you're using the QuickBooks mobile app, you can now capture receipts direct from our device.

Upload or email receipts to your books in seconds with QuickBooks Online. Simply snap or email your receipts and QuickBooks extracts the info, matches it to a transaction and categorises it for you. No more shoeboxes.

Give it a whirl today. We hope it makes your life that little bit easier.

Snap a receipt from your Mobile

Install the QuickBooks Online app
Open the app, then tap the Menu ≡
Tap Receipt snap
Tap the Receipt Camera and snap a photo of your receipt.
Tap Use this photo, then Done

Want to learn more about how QuickBooks can make your business easier? Contact us for a free demo.

Small Business Basics Grants Program Round 3

Tue, 26 Apr 2022 05:31:48 GMT

The Queensland Government provides specific support for the small business sector through the Big Plans for Small Business Strategy. The Business Basics grants program (Program) provides support to businesses to increase core skills and adopt best practice.

The Program is competitive, meaning that applications are competitively assessed against the assessment criteria and not all applications will be funded.

Applicants can apply for funding for grant funded activities in one of five priorities:

1. Training and coaching

2. Website build/upgrades

3. Professional business advice

4. Strategic marketing services

5. Business continuity and succession

The Department of Employment, Small Business and Training (DESBT) manage the grants.

Round 3 will open at 9:00 am 4th May 2022.

Program outcomes

The expected outcomes of the grants program are to:

• increase confidence for business owners across core skills;

• boost turnover, profit, and employment; and

• improve business survivability and resilience.

What funding is available?

For this round, there are two funding streams based on what Local Government Area (LGA) eligible businesses are headquartered. These LGAs are grouped into either South East Queensland or regional Queensland. If successful, applicants will receive upfront fixed grant funding of $5,000 (excluding GST). Successful applicants do not have to co-contribute to this grant; however successful applicants must pay for any related expenses in excess of the $5,000

grant funding.

Who can apply, and what are the eligibility criteria?

To be eligible to apply for this grant, the business must:

• have fewer than 20 employees (by headcount);

• be operating and have an active Australian Business Number (ABN)*

• be registered for GST*

• have a Queensland headquarters and an operating address in the relevant funding stream*

• have an expected turnover of $300,000 or less for the current financial year

• not have been approved for funding under an earlier round of Business Basics

• have owners/directors that are not undischarged bankrupt* and be solvent*

*The business must maintain their eligibility for the duration of the grant funded activity where reasonably possible.

South East Queensland businesses

When applying for round 3, you are a South East Queensland (SEQ) business if your principal place of business is located in 1 of the following local government areas:

Brisbane City Council
City of Gold Coast
Ipswich City Council
Lockyer Valley Regional Council
Logan City Council
Moreton Bay Regional Council
Noosa Shire Council
Redlands City Council
Scenic Rim Regional Council
Somerset Regional Council
Sunshine Coast Council
Toowoomba Regional Council.

Regional businesses

You are a 'regional business' if your principal place of business is any other local government areas within Queensland that is not identified as a SEQ location.

Use the eligibility tool to find out if your business is in SEQ or a regional local government area.

What can I spend the grant funding on?

DESBT will fund the following eligible activities:

Grant funding will ONLY BE APPROVED for the following eligible activities:

1. Training and coaching

• Business development, marketing, human resources,or business planning topics

• Training/coaching of up to 4 months in duration

2. Website build/upgrades

• Website build or upgrade (including website refresh)

• Adding ecommerce

• Developing new website content

3. Professional business advice

• Business plans

4. Strategic marketing services

• Strategic marketing plans including search engine optimisation advice

5. Business continuity and succession

• Business continuity or succession plans

• Cybersafety training and tools

What can’t I spend the grant funding on?

DESBT will not fund activities with:

• a total cost of less than $5,000 (excluding GST),

• payments made on any activity undertaken before Grant approval

DESBT will not fund the following activities:

• activities bought using crypto-currencies,barter, or services in-kind

• general business operating costs (e.g.,bookkeeping/accounting, tax returns)

• real estate/property, hire, lease, or rental fees

• goods, services, or fees from related parties*

• travel

• franchise fees

• purchase of stock

• GST, registration, and fees

• maintenance of existing digital technologies

• salaries

• fleet vehicles

• computer hardware (e.g., computer servers, PCs, tablets\iPad, mobile phones)

• other hardware / devices / equipment (e.g.,televisions, EFTPOS, card and chip readers)

• activities bought via direct selling (e.g., by party plan or network marketing)

• delivery, credit card and transaction fees

• memberships and joining fees

• website hosting

• implementation of marketing tactics such as advertising, direct marketing or campaign delivery (e.g. Google AdWords, Facebook advertising or similar expenses)

*Related parties include companies with common shareholdings or directors, employees, or immediate family.

What are the timeframes?

It is intended that the grant funded activity be started, completed, and expected benefits determined by six months.

DESBT is unable to provide estimates on the duration of the application process, assessment or releasing outcomes.

When and how can you apply?

Opens: 9am, 4 May 2022

Closes: When DESBT receives enough applications for a competitive assessment DESBT gave notice of the grant opening date and supplied supporting documents on 13 April 2022.

Apply at https://www.business.qld.gov.au/businessbasics on the opening date and time.

The grant may be in high demand, so please monitor the application tracker. The grant round can close at any time, even mid-application. Please ensure you have all documentation correct and ready prior to the grant launch.

In addition, you must complete the application and validate any input errors before submitting it

What us to help?

If you'd like our assistance to complete the grant application, provide your details below and we'll be in touch:

Federal Budget 2022-23

Tue, 29 Mar 2022 09:53:58 GMT

The federal budget 2022-23 has been announced. Here are the highlights.

Bigger Tax Refunds This Year (The Lamington Offset)

The Low and Middle Income Tax Offset (LMITO), which was supposed to end in 2020, will instead be increased by $420 for the 2021/22 tax year, taking the maximum amount from $1,080 to $1,500. The offset will then be ended as previously planned and will not be available in future years.

Temporary Fuel Price Cut

The fuel tax excise will be lowered from $0.44/L to $0.22/L from midnight tonight for the next six months.

Extra Payment For Welfare Recipients

Pensioners, carers, veterans, job seekers and other eligible concession card holders, plus some self-funded retirees, will receive a one-off payment of $250.

Small Business Tax Boosts For Technology and Training

From 29 March 2022, small businesses can claim a tax deduction of 120% of the amount spent on eligible technology and training.

The Technology Investment Boost allows businesses to claim the bonus 20% deduction for the cost of portable payment devices, cyber security systems, cloud computing, e-invoicing and web design. An annual cap of $100,000 will apply to eligible technology expenditure, with the initiative set to last until 30 June 2023.

The Skills and Training Boost allows businesses to claim the bonus 20% deduction for the cost of training staff, so long as it is run by an external education provider registered in Australia. The courses can be provided in person (only in Australia) or online and there’s no limit on spending, but in-house and on-the-job training are not eligible, nor is money spent training people who are not employees of the business. The boost will last until 30 June 2024.

Parental Leave

The two currently separate payments (2 weeks of "Dad and Partner Pay" and 18 weeks of "Parental Leave Pay") will be combined into a single payment, meaning parents can choose to split the leave in whatever way they’d like. It also means that single parents will now be entitled to the full 20 weeks. The household income test to access parental leave will be adjusted to $350,000 per year.

Apprentices

The current Boosting Apprenticeship Commencement Scheme will end on 30 June, replaced by a new Australian Apprenticeships Incentive Program. It will offer lower wage subsidies — 10% for first and second-year apprentices and 5% for third-years — and it's restricted to a list of "priority" occupations, which hasn’t been made available yet. If you're hiring someone for a "non-priority" occupation, you can get a one-off payment of $3,500.

In good news, apprentices on the priority list will get $5,000 in direct cash payments over their first two years.

From July 2024, the wage subsidies will be scrapped and replaced with a $4,000 hiring incentive for employers and $3,000 for apprentices, but only if they're on the priority list.

Stage 3 Tax Cuts

Stage 3 of the income tax cuts is still on the cards for the 2024/25 financial year, meaning around 12 million taxpayers will pay lower taxes. The tax cuts are worth up to $2,565 per individual, but will only benefit higher income earners.

Childcare Subsidy

Childcare subsidy increases will be brought forward from 1 July 2022 to 7 March 2022, and the annual cap will be removed.

Health Measures

$58 million will be spent over the next four years toward helping women with endometriosis.

Trodelvy, a medication used to treat a rare form of breast cancer, was added to the Pharmaceutical Benefits Scheme.

Genetic testing for a number of conditions for couples who are planning to get pregnant will become free to access.

Tests for conditions including cystic fibrosis, spinal muscular atrophy and fragile X syndrome will be free under Medicare (in most circumstances) from November 2023.

Half a billion dollars will be invested over the next five years to pay for the next stage of the National Mental Health and Suicide Prevention Plan, including $42.3 million over four years for Lifeline and $14.8 million over five years for Headspace.

Australians on a mental health plan will again receive an additional 10 partially-Medicare subsidised visits to a psychologist, a measure first announced in the coronavirus pandemic.

There's also extra mental health support for people in flood-affected regions.

Domestic Violence

$1.3 billion in funding will be provided over the next six years for a broad range of measures and programs identified in the National Plan to End Violence Against Women and Children.

Climate Change

Carbon farming income can be treated like other primary production income for tax purposes in future, meaning farmers who make money by selling carbon credits can receive the same tax treatment and concessions as other forms of farming.

The $250 million Recycling Modernisation Fund, which is designed to find new and innovative ways to make recycling more efficient, includes $60 million to fund better technology to recycle soft plastics like bread bags and chip packets. It’s hoped this will help the government reach its target of having 70% of plastic packaging in Australia recycled or composted by 2025.

As previously announced by the government, there’s $1 billion set aside for the Great Barrier Reef. The majority of the funding will go toward improving water quality, with the rest set aside for reef management and research. The money will be spent over nine years and administered through the Department of Agriculture, Water and the Environment along with the Great Barrier Reef Marine Park Authority, and delivered through local communities, industries and traditional owners.

Defence

Australian Signals Directorate (ASD) will receive $9.9 billion over the next 10 years for the REDSPICE (Resilience, Effects, Defence, Space, Intelligence, Cyber and Enablers) package. It will mean an extra 1,900 jobs created at ASD, including positions such as data analysts, computer programmers, and software engineers.

In the budget, the government makes it clear the investment is to better equip Australia to defend itself and some of our critical infrastructure from cyber attacks and counteract them. The government has warned about the possibility of cyber attacks from both China and Russia, going so far as to urge businesses to update their systems to better defend against any future attacks.

How to improve your procurement spending

brock@haslam.com.au (Brock Haslam) — Thu, 10 Mar 2022 22:26:59 GMT

Want to get in control of your procurement spending? We’ve got 5 key ways to improve your procurement processes and cut down on the costs. #sharpenthepencil #businessadvice

One of your biggest areas of business expenditure will be buying the goods and services that are needed for the company to operate. Whether these are raw materials, wholesale goods or cloud services, you need someone to be in control of this procurement process.

Managing your procurement spending is a vital part of keeping the business cost-effective and competitive in the market. If you’re overspending on materials, or paying over the odds to your delivery partner, this can start to have a significant impact on your bottom line.

How, then, do you get on top of this procurement spending and start becoming more efficient?

5 key ways to enhance your procurement spending

Managing cashflow is all about balancing out your cash inflows against your cash outflows. If your procurement costs are high, it will be very difficult to maintain a positive cash position, so reducing your costs and agreeing better terms is all part of the procurement process.

In short, the less cash that’s burnt up in procurement costs, the better the company’s overall financial position will be. So, how do you go about reducing these costs?

Here are 5 key ideas to focus on:

Reduce your base cost per item – where you’re buying in goods, one of the most important costs to consider is your basic cost per unit. This price is probably the most difficult cost to alter, but there are ways to reduce it. Get quotes from a variety of suppliers and look for the supplier that offers the best mix of value, quality and reliability, at an economical price. Negotiating with competing suppliers can help to knock the price down further, helping you cut that initial base cost and reduce your everyday spending.
Cut your logistics and delivery costs – when dealing with physical goods, these items will need to be transported to your premises and/or delivered to your end customers. These transport costs are unavoidable, but can be reduced as part of the procurement process. Look for well-priced carriers and logistics providers and see if their base prices can be negotiated down. Ask about discounts for faster payment, or options for joining a preferred customer program to help reduce prices. If you can offer a long-term relationship with the carrier, this can result in greater trust and openness over time, and more potential for negotiating price reductions.
Nurture the best supplier relationships – the foundation for good procurement management is building solid relationships with your suppliers. The more stable your supply chain is, and the deeper the trust between you and your supplier partners, the easier it will be to negotiate good terms, beneficial prices and flexible contracts. Nurture these relationships, pay on time and set a good reputation with these suppliers. When renegotiating prices to cut costs, this will be far easier to do with solid foundations supporting your business relationship.
Reduce tax and duty costs – depending on which goods and services you’re selling, there will be certain territory-specific taxes and duties to pay when buying and transporting goods. If you engage a tax adviser with industry-specific knowledge, they’ll be able to check that you’re paying the right taxes on your goods/services and that they’re correctly categorised for taxes like VAT or GST. Working with a customs broker can also help to organise and streamline the customs process, and ensures that you’re paying the correct duty on all your imports and exports.
Using tech to get in control of procurement – in the modern digital world, there are plenty of cloud-based procurement solutions to help enhance the management of your processes. Having all your procurement information in one place, accessible 24/7 in the cloud, has huge advantages. You can streamline your internal processes, manage risk more effectively and regularly check your spending against budgets, cashflow and expected expenditure. Where there are big variances, or instances of overspending, you can quickly take action to reduce the problem – by putting caps on spending, or switching to new suppliers that offer a more cost-effective option.

Talk to us about your procurement management

When you’re in control of your procurement spending, that’s good news for your cashflow, your end profits and the long-term health of your supplier relationships.

Getting in control of your budgets, expenditure and overall spend management is a big part of the procurement process, and an area where we can help guide you in the right direction.

Come and talk to us about your current procurement issues to see where we can lend a hand.

E-invoicing protects you against invoice fraud

brock@haslam.com.au (Brock Haslam) — Thu, 10 Mar 2022 22:22:41 GMT

Invoice fraud is on the rise, but you don’t need to leave yourself vulnerable to scammers, E-invoicing is the secure way to send and receive invoices, backed by a government platform.

Is your business using e-invoicing? It’s a fantastic way to protect yourself and your customers from invoice scams, and it can help you get paid faster. E-invoices replace emailed PDF invoices or links to online invoices. Instead, e-invoices are delivered securely to your clients, even across different accounting systems.

Preventing invoice fraud

Invoice scams are surprisingly common, and can be quite sophisticated. For example, with intercepted invoices everything looks exactly right, but the bank account number has been altered. When it happens to you, your client thinks they’ve paid you, but the money has actually gone to a scammer. Notifications from suppliers that their bank account number has changed – but it’s not actually your supplier, it’s fake, and your money is going to a scammer. In the event of an invoice scam, it can be very difficult to get your money back.

E-invoicing prevents these types of scams because the invoices travel directly from one accounting or payment system to another. By directly connecting suppliers with their clients, there’s no opportunity for scammers to intercept the invoices.

Start sending and receiving e-invoices

We can help you set up your accounting software to send and receive e-invoices immediately. You can learn how to set up e-invoicing in Xero at this link, or just get in touch and we can help. You can also use e-invoicing if you don’t use an online accounting platform with one of the free e-invoicing enabled software providers.

It only takes a little bit of time to learn how to use e-invoicing, and once you have the hang of it you’re protected from invoice fraud – so it’s well worth the effort! Talk to us today about how e-invoicing can help you.

Understanding the Basics of Tax on Superannuation

brock@haslam.com.au (Brock Haslam) — Thu, 10 Mar 2022 22:18:37 GMT

Understanding tax on super can be complicated. We can help you get your ducks in a row! Minimise your tax and make the most of super with simple strategies. Talk to us today about getting your super sorted.

Do you know how much tax you pay on superannuation contributions and withdrawals?

The amount of tax depends on several factors, and it's possible to minimise the amount you pay by understanding how the tax on super works. Tax on super is generally a lower rate than the tax on your income, and by using a few smart strategies, you can both minimise your tax bill and maximise your super investment.

The tax on super rules are the same for all super funds, whether self-managed, an industry fund, a default employer fund or another regulated fund.

Tax on Contributions

Contributions made to your super fund before tax are taxed at a flat rate of 15% and called concessional contributions. This applies to employer super guarantee contributions, salary sacrifice and sole trader contributions.As your super investments grow, you’ll also pay 15% tax on the earnings.After-tax contributions are not taxed again. If you, your spouse or your employer make contributions from your after-tax income, or you make other contributions not classed as a tax deduction, these amounts won’t be taxed in the super fund.

Carry Forward Provisions to Minimise Tax

There are limits to how much you can contribute to your super fund each year. You could get an excess contributions tax bill if you contribute over the threshold.

However, from 2020, new rules allow you to make extra concessional contributions in some situations without having to pay additional tax. The carry forward rule means that you may be able to contribute more than the concessional contribution cap if eligible, without extra tax charges.

Tax on Withdrawals

Your preservation age, how the funds are paid to you, the type of income stream and other factors affect the tax on super withdrawals. Some withdrawals may be taxed, and others are tax-free.For example, after-tax contributions are tax-free when you withdraw funds, but concessional contributions are taxable.

Want to Make the Most of Your Super?

Tax on super can be complicated! We’d love to review your super and discuss ways to minimise the tax on super contributions and withdrawals. You can receive great tax benefits by making extra contributions while still working and utilising the carry forward provisions.

Whether you’re starting in the workforce, nearing retirement or actively withdrawing from your super fund, we can help you make the most of your super. Talk to us today about your super.

Are You Suffering from Business Burnout?

brock@haslam.com.au (Brock Haslam) — Thu, 10 Mar 2022 22:15:58 GMT

Are you feeling burned out from your business? There are some simple strategies to regain enthusiasm. Talk to us about how we can relieve the stress by managing systems, tech, payroll or other financial administration. We'll back your recovery.

The last two years have been demanding and exhausting for many business owners. Are you one of them?

The challenges have been relentless, and we know many small business owners have had to navigate unprecedented demands because of the pandemic and related government regulations.

Burnout results from long-term stress and can manifest in emotional and physical exhaustion, which may affect your enthusiasm for running the business you once loved.

So, What Can You Do About it?

We understand that as a business owner, you have many responsibilities, and often you do everything on your own. So we know how hard it can sometimes be to keep on top of all your legal obligations.

The most important step is to acknowledge you feel burned out and need a break.

Take a break as soon as you can. Plan ahead for time away from the business. However, while getting some rest in the short-term will help, long-term stress will take commitment to recover from.

Strategies to Help Recover from Burnout

What can you do differently to avoid prolonging or retriggering the burnout?

Delegate - Look at the low-value tasks you spend time on and pay someone to do them for you. This will free up time and energy.
Re-energise - If you're struggling with a lack of enthusiasm or purpose, talk to colleagues or a business coach for support. If possible, connect with people in the same industry so you can share among others who may be facing similar challenges.
Stand back - Take an objective look at how much you are working and how effective you are. For example, is it time to streamline your work activities and put boundaries around working hours?
Reassess your goals - Do you have clear business goals for the short-term and long-term? Either set some realistic goals or revise them if they are too difficult right now.
Commit to some regular self-care actions - Think about what you love doing outside your business that is nourishing. Regular exercise? Time in nature? Going on a retreat? Learning something for fun? Improving your diet? Get an app on your phone that reminds you to take mini breaks throughout each day. Whether that is movement, mindfulness or music, use technology to help.
Celebrate milestones and achievements - When overwhelmed with stress or exhaustion, it's easy to forget the positives. Remind yourself of just how much you have done in the last year!

Need Some Support?

You’ll be better able to face challenges, run your business well and assist others if you are looking after yourself well.

We’d love to help support you back to passionate engagement with your business. If you’re feeling burned out and need help in managing systems, technology, payroll or other financial and administrative management, talk to us today, and we'll back your recovery.

2022 Flood Disaster Recovery Assistance

Mon, 07 Mar 2022 08:48:52 GMT

Disaster Recovery Allowance

The Disaster Recovery Allowance (DRA) is a short-term income support payment to assist individuals who can demonstrate that their income has been affected as a direct result of a disaster.

The DRA assists employees, small business persons and farmers who experience a loss of income as a direct result of a major disaster.

You might be eligible for a maximum of 13 weeks payment from the date you have or will have a loss of income as a direct result of a disaster. The DRA is taxable.

Find out more here .

February 2022 SEQ Flood Disaster Recovery

The Australian Government Disaster Recovery Payment can help if you’ve been significantly affected by a disaster. It’s a lump sum payment to help you if you’re in a Local Government Area that’s been declared for a disaster.

You have until 1 September 2022 to make a claim for the following Local Government Areas (LGAs): Brisbane, Bundaberg, Fraser Coast, Gladstone, Gold Coast, Goondiwindi, Gympie, Ipswich, Lockyer Valley, Logan, Moreton Bay, Noosa, North Burnett, Redland, Scenic Rim, Somerset, South Burnett, Southern Downs, Sunshine Coast, Toowoomba, Western Downs.

Find out more here .

QLD Government Emergency Hardship

The Emergency Hardship Assistance Grant is available as a contribution to support people directly impacted by a disaster to who are unable to meet their immediate essential needs for food, clothing, medical supplies or temporary accommodation.

If deemed eligible, applicants may receive $180 per person up to $900 for a family of 5 or more. The grant is initially available to claim for 7 days following the activation of the grant in your area.

Find out more here .

QLD Personal Hardship Assistance

As Australia’s COVID-19 vaccination coverage increases and restrictions start easing, industries and businesses are opening again. This means that many employers and employees are planning their return to work or to the workplace.

Please follow the link to find more information and guidance on returning to the workplace and managing any workplace issues that might arise.

Find out more here .

QLD Structural Assistance Grant

If you are uninsured, or unable to claim insurance, you may be eligible for financial assistance to provide a contribution towards replacing or repairing essential household contents, such as beds, linen and whitegoods, that have been lost or damaged in a disaster.

Grants of up to $1,765 for single adults and up to $5,300 for couples/families are available.

Find out more here .

QLD Essential Services & Safety

If you’re uninsured, or unable to claim insurance, you may be eligible for a grant to help you reconnect essential services that were damaged by a disaster.

There are 2 parts to the grant:

Inspection: up to $200 towards a safety inspection for each essential service needing reconnection (electricity, gas, water and sewerage or septic system)
Repair: up to $4200 towards repair work to enable essential services to be reconnected (for example, electrical rewiring).

Find out more here .

Local Government Resources

Goondiwindi Regional Council

Disaster Dashboard

https://dashboard.grc.qld.gov.au/

Lockyer Valley Regional Council

Disaster Dashboard

https://disaster.lvrc.qld.gov.au/

Southern Downs Regional Council

Disaster Dashboard

http://disasterdashboard.sdrc.qld.gov.au/

Toowoomba Regional Council

Disaster Dashboard

http://disaster.tr.qld.gov.au/

Western Downs Regional Council

Disaster Dashboard

https://disaster.wdrc.qld.gov.au/

QuickBooks Introduces Tagging Functionality

Wed, 23 Feb 2022 04:54:17 GMT

Check out Tags: Customisable labels that let you track your money however you want.

QuickBooks now allows users to create Tags and Tag Groups, which you can use to categorise transactions for reporting within the software.

Tags allow you to sort and display your data using any criteria you can imagine. If you'd like some help to set up and use tags, book a time to talk to us .

What's your unique selling point?

brock@haslam.com.au (Brock Haslam) — Tue, 22 Feb 2022 22:26:25 GMT

Why should your customers choose you over your competitors? Establishing your unique selling point (USP) is about understanding the real benefit you offer customers.

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’s why it’s 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 effectively 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’s as simple to use and integrate as possible.

To make your USP work for you:

Define your USP using your products/services – think about your products and/or service offerings and consider where you’re adding value that’s specific and unique to your business. You might be more ecologically sustainable, more budget-friendly, or easier to use than your competition. Own this difference, feed it into your development and think about the end benefit for customers.Tip: ‘People don’t buy products, they buy solutions’ - Put yourself in your ideal customer’s shoes to understand their needs and how you meet them.
Market the company around this USP – understand where you add value as a business and condense it down to one selling point. While you may be able to list many benefits, boiling it down to one thing will be more compelling. Make sure it’s short, simple and straightforward to communicate, so you and your customers quickly understand this USP. For example, the USP of M&Ms is that ‘the milk chocolate melts in your mouth, not in your hand’. ABUS Locks have dominated security solutions with 'security built on quality' and this position has enabled them to broaden their product range beyond padlocks. A USP doesn't have to be a tagline but when it clearly caputures your point of difference it can become one, such as the Bunnings Warehouse tagline: 'Our policy - lowest prices are just the beginning'.
Ensure your competitors aren’t catching up – to be a true USP, your differentiator has to be unique. The business world doesn’t stand still, so if competitors now offer the same customer benefits as you, it’s important to review, reassess and adapt your USP. Keep innovating and developing your product/services, so you offer a genuine USP and keep the competitors from nipping at your heels.

If you’re 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.

If you'd like help to develop your USP into a business plan, contact us .

Your business exit strategy in 9 steps

brock@haslam.com.au (Brock Haslam) — Tue, 22 Feb 2022 22:20:53 GMT

Looking to sell up? Need a plan? Talk to us about creating a workable exit strategy, with a clear focus on driving value and delivering a solid return on your investment.

If you are looking to exit your business or have a future plan to do so, you need a strategy. 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

The more attractive the business looks in the market, the better the price you’ll achieve, or the better the yield you’ll see on selling your company shares.

To drive that value:

Work on the business, not in it – so you’re no longer a fundamental part of the day-to-day operations, and can focus on the higher-level strategic elements. We can help you restructure the operations so that your business stands up to a potential buyer, when you are no longer in it.
Invest in adding value – keep profits in the business, reduce your personal drawings and plough that money back into growth and investment.
Improve your financial health – by taking control of your finances and building a strong balance sheet, positive cashflow and attractive profit forecasts. A buyer will want to see how your business has performed over the last two years.
Have a buiness manual – that describes the processes and tasks in your business so a new owner can hit the ground running.

Talk to us about exiting your business

If you’re 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.

Recovering costs from employees

brock@haslam.com.au (Brock Haslam) — Tue, 22 Feb 2022 22:04:55 GMT

Employers can only make deductions from an employee's pay in very limited circumstances. This article looks at the ins and outs of recovering costs from employees.

At times, as an employer, you may feel justified in reclaiming money from an employee because they’ve lost company property, damaged equipment, or resigned at short notice and never returned.

But before you make a deduction from their pay, stop and remember that any deduction must be lawful and reasonable.

Under the Fair Work Act 2009, an employer can only make a deduction from an employee's pay in very limited circumstances, e.g. the deduction is required by law for tax or superannuation, ordered by a court, is for the employee’s benefit (and the person agrees), or is allowed under the employee’s award or agreement.

Even with a deductions clause in the employment contract, employers still have no right to make any deduction without a separate written agreement. Employees can’t be forced to agree to a deduction; it must be genuine.

An employee leaves without working out notice

If an employee leaves your company and doesn’t give the right amount of notice under their award, you can legally deduct up to 1 week's wages (check the award for terms). Otherwise, if a person departs early from the business, you can’t legally make deductions or withhold wages or leave unless you get their written consent.

Deductions for private use, loss, damage, or shortfalls

You can reasonably make a deduction to recover costs when an employee privately uses company’s property, e.g. makes personal calls on a work mobile.

Deductions for loss or damage by employees are more problematic, because what one person considers reasonable another might not. It’s best to have a policy or specific deductions clause that covers losses or damage to company property, but again, it's important to obtain the employee’s agreement in writing.

Overpayment

If by mistake, you overpay wages, again, you need the person’s written consent before you can deduct money from their pay. First, propose the deduction and negotiate a payment arrangement with them. If they refuse to pay the money back, seek expert advice.

In all instances, genuine consultation with the person is vital. This article has more useful advice on recovering costs from employees.

More Help

If you need more help with payroll and deductions, get in touch with us and we'll help you get it sorted.

Does your business need an app?

brock@haslam.com.au (Brock Haslam) — Tue, 22 Feb 2022 22:00:15 GMT

Does your business need an app? We’ll help you assess the pros and cons of developing your own branded app, and the impact this could have on your finances.

Mobile apps have revolutionised how we live, organise and track our lives. The average smartphone user now has 35 different apps on their device, showing not just the variety of different apps out there, but also the average consumer’s reliance on mobile technology.

So, if apps are a key part of the digital economy, does your business need to invest in one? And, if you do, what are the core benefits of this branded app likely to be?

Weighing up the benefits of a branded app

Apps offer us convenience – that’s their main purpose. They help us plan our day, search for information, keep ourselves entertained or make purchases straight from our phone.

57% of shoppers prefer mobile apps to other channels, according to recent research. From a business perspective, this makes a branded app an extremely immediate way to engage with, sell to and interact with your core customer base. You can quickly convert an audience, track their habits and send out notifications straight to the customer’s phone.

But the real question here is a simple one: ‘Do you really NEED an app?’

Here are some questions to consider:

Do you have a clear idea of what your app would do? Your app needs to have a very clear purpose and reason for being. It’s important to know exactly what your core audience will get from downloading and using the app. Can customers buy your products or services directly via the app? Are there additional services or perks that are exclusive to app users? Are there helpful tools or calculators on offer?
Do you have the funds to develop the app? Developing your own bespoke app is not a cheap thing to do. You’re looking at development costs of between 60k to 200k , depending on the complexity of the app and whether you want the whole process to live on mobile. For most small businesses, finding this kind of cash won’t be easy, so developing an app needs to be a key part of your growth strategy and something that can be funded from your existing growth budget.
Do you know how you’d market the app? There are millions of apps available through the existing Apple and Google app stores, so making your brand-new app stand out in these incredibly busy marketplaces is going to require some serious marketing. You can obviously promote the app to your existing customer base, but how will you engage new prospects and warm targets? And what are the best marketing channels to use when it comes to raising awareness and converting this into engaged app users?
Could the app open up new markets? If your app offers enhanced services and features, or helps you pivot into a new sector, it does have the potential to generate new markets, new revenues and greater financial stability for the business. By investing wisely in a well-thought-out app, you can increase your audience, futureproof your business model and create improved income for the company. But to do this, you have to do enough research, homework and development to guarantee a successful launch.

Talk to us about your app plans

Having a shiny new app with your company’s name and branding all over it does sound like an enticing prospect. But, ultimately, this app needs to stand on its own merits and provide some meaningful value – both to your customers and to the business as a whole.

Need an app?

If you're interested in developing an app for your business, talk to us about meeting with our app partner.

Do Your Employees Want to Cash Out Annual Leave? Here's the lowdown.

brock@haslam.com.au (Brock Haslam) — Tue, 22 Feb 2022 21:56:12 GMT

Not sure about the guidelines for cashing out annual leave? You need to know some essential rules before paying out annual leave so that employees are not disadvantaged. Talk to us, and we'll help review your payroll and leave obligations.

Are your staff asking to cash out annual leave? There are some important rules to remember before paying out annual leave.

Firstly, you must review the employee’s modern award to check that cashing out leave is explicitly allowed.

Most awards do allow for excess annual leave to be paid out, and we give you the general rules here – but you need to check the relevant award for special regulations before agreeing to cash out leave.

Common Rules for Cashing Out Leave

The leave must be paid at the same rate as if the employee takes the leave. That means you must pay leave loading if it applies, and super is always payable on cashed out annual leave.
The employee must have at least four weeks of leave left available after paying out any excess amount.
You can’t pay out more than two weeks of leave per year.
While leave accrues as usual when an employee takes leave, you don’t need to accrue leave on cashed out leave.
You need to have a written agreement with the employee, stating the number of hours being paid, the total amount and when you will pay it.
Remember to check the employee’s award first and keep all records and calculations!

You Can Direct Employees to Take Excess Leave

You can't force an employee to cash out leave, but you can ask an employee to take leave in some circumstances. If you have employees accruing a lot of leave, check the award for guidance. For example, some awards allow an employer to direct an employee to take one week or more of leave if they have more than eight weeks accrued, give at least six weeks’ notice, and leave at least six weeks of leave available.

Need Help?

Remember, annual leave is paid out when an employee leaves your business, so it’s good to keep an eye on how much is owing and not let too much accrue. Also, employees should be taking leave regularly for their health and wellbeing.

If you need help, talk to us , and we can review your payroll, leave accruals and modern awards to help manage employees’ annual leave.

Are you considering an SMSF?

Thu, 16 Dec 2021 07:16:50 GMT

Is a self-managed super fund something you’re thinking about? Learn about the responsibilities that come with being a trustee. #SMSF #RetirementPlanning

It’s always a good idea to think about your retirement. Many people in Australia use a Super Fund to manage their retirement savings. But some people opt to do something a little different, and set up a self-managed super fund (SMSF).

What is an SMSF?

At a basic level, setting up an SMSF means creating a trust which has either individual or corporate trustees. These trustees manage the fund assets, and look after legal compliance, including auditing and reporting obligations.

For people who are prepared to look after the legal and financial elements of running a fund, entering into an SMSF can mean more control over how funds are invested, over fees paid and over what insurance is taken out.

What is an SMSF for?

Any SMSF must have the same purpose. That is, to provide retirement benefits for fund members and their dependants. Any decisions made by trustees must be in line with this aim. Using the funds of an SMSF for anything else isn’t just unethical but is actually illegal.

An SMSF isn’t for:

Early access to superannuation
Investing in art or collectible for decorative purposes or personal use.
Buying holiday homes.

Single Touch Payroll Phase 2 Starts in 2022

Thu, 09 Dec 2021 07:15:27 GMT

Single Touch Payroll Phase 2 has been postponed to January 2022. Changes will include more payroll detail and make it easier for employees to interact with Services Australia. Get in touch to discuss better payroll systems before STP Phase 2.

All employers have to report payments made to employees and closely held payees to the ATO using Single Touch Payroll reporting from July 2021.

Single Touch Payroll (STP) Phase 2 was initially planned for 1 July 2021 to align with the mandatory reporting for all employers, but it has been postponed to 1 January 2022. The ATO will allow employers until 31 March 2022 to start reporting if they don’t have an STP reporting solution in place yet. Some payroll software providers already have deferrals in place to allow a longer time for the transition to Phase 2 reporting.

The planned STP expansion has been extended because of COVID-19 impacts on business and accounting and payroll software providers.

STP Phase 2 will require additional information to be reported with each STP pay event.

Accounting and payroll software products will be upgraded to include broader reporting parameters and categories in line with the ATO requirements for Phase 2.

The Phase 2 expansion will allow employers to report information to multiple government agencies in the STP report. Standardised categorisation of income components will make it easier for employees to interact with Services Australia.

The changes will also include detailed income types, lump-sum payments, itemised allowances, child support and the ability to lodge tax file number declarations from within STP reporting. Employment separation certificates upon the termination of employment will no longer be needed, as Phase 2 reporting will include the reason an employee ceased employment.

If you'd like to review your payroll software and systems before STP Phase 2 starts, talk to us today.

Otherwise, there is nothing you need to change right now – we’ll keep you updated when the implementation is closer.

Gifts for your customers and team.

Thu, 02 Dec 2021 07:14:19 GMT

It’s time to start thinking about Holiday gifts – how should you reward your team and thank your top customers? We've got some ideas and can help you run the numbers for your Holiday budget.

The Holidays are nearly here, and it’s a great time to let your customers and team members know how much you appreciate them. But this has been a tough year – it’s not easy to know how much to spend or whether it’s appropriate to throw a party.

Gifts, cards and donations

The traditional professional Holiday gift tends to be food-related: hams; hampers; bottles of wine or spirits. Those can be ordered online and sent out, although it’s best to avoid anything that will spoil considering current delivery delays and people who may not be working in the office.

For customers or clients who you know really well, something tailored to their personal interests can show you’ve been paying attention. And for both customers and staff, a handwritten card is a lovely touch and costs very little.

Another option is a donation on behalf. Many people really appreciate an email or card that lets them know you’ve donated money to a charity on their behalf, particularly if you can include details like, “The local foodbank will use this donation to feed families over the Holidays.”

If lockdowns allow, a coffee or lunch for higher value clients is an excellent way to build stronger relationships as well as making the most of the Holiday season. You might spend more this way, but for your best clients this can be far more memorable than a gift.

For your team, a hamper is probably a less popular choice. A Holiday bonus might be appreciated, but do run the numbers first. A supermarket voucher retains its full value, while a cash bonus must be taxed. Talk to your team – they may prefer a paid day off rather than any gift.

How much should you spend?

You might like to create categories based on how much your clients spend with you and how valuable they are to you. The top customers might all receive a larger gift, while the smaller customers might get a something more modest.

Holiday budgeting

Wondering how much each client or customer has spent? Not sure what you can afford to budget for Holiday gifts? We can help.

Get in touch and we’ll run the numbers to give you the insights you need.

JobMaker: Fourth claim period now open

Thu, 02 Dec 2021 07:12:50 GMT

We can help you claim the JobMaker Hiring Credit. Get in touch for assistance with your claim and STP reporting obligations.

The JobMaker Hiring Credit scheme is an incentive for businesses to employ additional young job seekers aged 16–35 years. The fourth claim period for the JobMaker Hiring Credit ends 31 January 2022.

If your business is eligible:

register – use ATO online services, Online services for business or a registered tax or BAS agent
nominate your additional eligible employees – run payroll events through your Single Touch Payroll-enabled software
claim – use ATO online services, Online services for business, or a registered tax or BAS agent. Talk to us about your claim.

Eligible businesses can claim the JobMaker Hiring Credit for up to a year for each additional eligible employee hired between 7 October 2020 and 6 October 2021.

Key things to note:

Employees hired on or after 7 October 2021 are not eligible employees.
You cannot claim JobKeeper and the JobMaker Hiring Credit payment at the same time.
You and your additional employees must meet the eligibility criteria for each JobMaker period you want to claim for.

STP Reporting

Your STP reporting is due three days before the end of the claim period for the JobMaker period you are making a claim for. For example, to make a claim for JobMaker period 4 (7 July 2021 – 6 October 2021), your STP reporting should be up to date by 28 January 2022, three days before the end of the claim period on 31 January 2022. This will enable the relevant information to be pre-filled in the claim form.

We are here to help

We can help you claim the JobMaker Hiring Credit. Get in touch for assistance with your claim and STP reporting obligations.

What is bank reconciliation and why should you automate this.

Thu, 25 Nov 2021 07:12:01 GMT

Are you spending hours of precious business time completing your bank reconciliations? We’ll show you how to switch to cloud accounting and automate these bank recs. #businessadvice

Good bookkeeping is all about recording and matching your financial transactions. Over the course of a usual week of trading, you’ll have a range of payments being deposited into your bank account and a host of operational expenses being withdrawn from that same account.

To keep on top of this, you must match each line on your bank statement with the transactions recorded in your accounting software. This process of matching the incoming (or outgoing) transaction with the relevant receipt, invoice or supplier bill is called bank reconciliation.

Why is bank reconciliation so labour intensive?

Bank reconciliation (or bank recs) is not the most thrilling part of the accounting process. But it’s essential if you’re going to have an accurate overview of your current accounting balance, and the balance that’s in your business bank account.

Traditionally, to complete the bank recs, you would need to:

Get a copy of your bank statement for the period
Check the deposits (cash coming in) and withdrawals (cash going out) on the statement
Look at the related credits and debits in your accounting software
Match these transactions to the relevant receipts, invoices or supplier bills
Reconcile your balance in the bank with the balance in your accounting software.

It’s a necessary process – and something you have to keep on top of. But it’s also a laborious and time-consuming task that eats into your admin time. So, is there an alternative?

How can automation help to lighten the workload?

Accounting software has evolved in leaps and bounds over the past decade. And many of the innovations that are now available focus on alleviating the time-intensive tasks, like bank recs.

Modern cloud accounting packages offer a range of ways to not only lighten the financial workload, but also to improve speed, accuracy and efficiency.

For example:

Live bank feeds – these software integrations pull all the data from your online banking into the accounting software, giving you a live feed of your bank transactions.
Automated matching – artificial intelligence (AI) and machine learning are used to automatically match the right invoices and bills with your bank transactions.
One-click matching – in a platform like Xero, you just need to review the automated matches and then click OK to match the transaction and complete the bank rec process.
Reduced human error – with an algorithm doing the matching, there are fewer errors in the bank rec process, and the whole process is completed in seconds, rather than hours.
Real-time bank and accounting balances – with live bank feeds and real-time data in your accounting software, you have the most current overview of your balances.

Talk to us about automating your bank reconciliation process

If your current accounting platform doesn’t allow for automated bank recs, now’s the time to upgrade. Cutting out the manual processes gives you more time to focus on higher-value financial tasks, and keeps the reconciliation process ticking away silently in the background.

Get in touch to discuss switching to a new accounting platform.

Managing projects in a remote team

Thu, 25 Nov 2021 07:09:21 GMT

Are you planning to expand remote working and carry out more projects online? Make sure you have good communication and collaboration tools to support your team. #businessadvice #remoteworking #projectmanagement

We’re living in a world where remote and hybrid working are now the norm. Driven by lockdowns and the pandemic, businesses have been forced to adopt a ‘working from home’ approach. And this ability to work remotely has driven productivity and efficiency for some companies but can create its own challenges.

Designing your workflows for remote working

When a whole team, or even a percentage of a team, are no longer sitting in the same office space, there are some very specific considerations to bear in mind. How do they access the systems they need? Where is all the company and customer data stored? How can people collaborate? What’s the best way to communicate?

If you’re going to make it easy to manage a project with a remote or hybrid team, you absolutely need to think through these questions and come up with some practical answers.

For example:

Video-based meetings and project kick-offs – the obvious problem of not being in the same room is that the project team can’t see or hear each other. And over the course of the pandemic, we’ve seen video meetings and platforms like Zoom and Microsoft Teams come into their own. Having your kick-off meeting and regular team catch-ups via video calls helps everyone to feel involved, and helps to create more of a ‘team spirit’ between a group of people who may be hundreds, or even thousands, of miles apart.
Capturing actions and briefs – during meetings, you need good ways of taking down notes, capturing actions or summarising what’s been discussed with the client or the team. Using a cloud-based document system, like Microsoft 365 , Google Docs or Evernote allows you to capture these ideas as rough notes. Or you could use an AI transcription tool, like Otter.ai , to transcribe the audio from the meeting as it happens and provide you with a full written breakdown of the call.
Job management and tracking tools – once the project is underway, it’s important to monitor progress, record which tasks have been completed and stay in control of a disparate group of people all working in different places. Project management solutions like Asana or Trello can be great tools for tracking the progress of a project and keeping everyone on top of things. When these tools are cloud-based, everyone has access 24/7 from any internet-enabled location, so that makes it far easier for everyone to be kept in the loop – and for people managers to see how each person is tracking.
Collaborating together as a team – working together from a distance is another hurdle for a dispersed team to overcome. But with cloud-based collaboration tools, like Monday , Slack or Teams , you can quickly create an online space for the team to share documents, have online chats, upload different document versions and generally boost the collaborative process. The easier you make it to communicate and share files/info, the fewer challenges you’ll face as the project develops.
Integrating project finances with your accounts – whatever the project, there are going to be certain costs, expenses and budgetary considerations to cope with. And staying in control of that with a team of remote workers can be a challenge – both for the project manager and the company’s finance team. The answer is to use a project management tool that integrates with your main cloud accounting software. Many of the top project management and invoicing solutions can connect directly to platforms such as Xero , QuickBooks , MYOB or Sage . Apps like DiviPay or Pleo also provide ways to manage your remote team expenses when employees are making ad hoc payments, racking up project expenses or have control over their own budgets etc.

As the benefits and flexibility of remote working become more widely felt, we’re likely to see even more projects being run remotely – with employees no longer clustered in the same office 5 days per week. So, if you want to keep your competitive advantage, you need to be ready.

The benefits of engaging a BAS Agent for your business

Thu, 18 Nov 2021 07:08:11 GMT

Do you spend too much time on your accounts? It could be time to engage the services of a BAS agent to help you with bookkeeping and ATO reporting. We’d love to talk about how we can help save you time and money. Let's talk.

Working with a BAS agent can benefit your business more than you may realise!

Many business owners starting out try to save on costs by doing their own bookkeeping, but this is one of the first tasks you can outsource to give yourself time and save money. If you can work on your business to generate more sales, why spend that valuable time on administration and accounts management?

A BAS agent is a registered tax professional who can provide a greater variety of services than a bookkeeper. BAS agents are trained in the complexities of GST and other laws – meaning you don't have to become an expert in areas that are not your passion or skillset.

What a BAS Agent can do for your business

Once the agent has become familiar with your business operations, they can not only take care of the transactional recording, financial reporting and compliance requirements, but they can assist you in better understanding your day-to-day business performance. A BAS agent can become a trusted member of your management team along with your tax agent, providing accurate and timely financial advice and insights to help you make better business decisions and plan for long-term success.

BAS Services

A BAS agent can ascertain and advise the business owner on correct liability amounts and submit statutory reports to the ATO and other agencies on behalf of the owner. BAS provisions include determining GST liabilities, PAYG withholding obligations, employee superannuation contributions, and submitting taxable payments reports and Single Touch Payroll.

What makes a great BAS Agent?

Professional BAS agents keep up with ongoing education and development, use industry best practices, take the time to ask questions and understand your organisation, and do their best to assist and advise your business. They will work proactively to support the business by ensuring the integrity of the accounts and providing accurate financial reports. They will be able to discuss your business’s financial health, assess operations and systems, and give you valuable advice.

If you think it’s time to engage a professional BAS agent, get in touch and let’s talk about how this can benefit your business and save you time and money.

Company Director? You'll need a Director Identification Number

Thu, 11 Nov 2021 07:07:02 GMT

New laws mean company directors need to get a unique director ID number. Start gathering your identification documents now in preparation for applying in November. Talk to us if you have any questions about the new registration requirement.

The government has initiated a new system that attaches a unique identifying number to an individual who is a company director. If you are a company director you will need a director identification number. You can apply for a director ID from November 2021.

What is a Director Identification Number?

A director has one number permanently attached to them, and this is used for identification purposes for any or all companies they are a director of. The new Australian Business Registry Services (ABRS) will administer the director ID register, which will gradually integrate all government business registers into one easily accessible register with greater security. The director ID numbers will mean better transparency of appointed directors of companies but also increased privacy protections.

What Do You Need To Do?

When you must apply for your director ID depends on the date you become a director.

Existing directors have until November 2022 to register for a director ID number.
New directors appointed between 1 November 2021 and 4 April 2022 must apply within 28 days of being appointed as a director.
New directors appointed from 5 April 2022 must obtain a director ID number before a director appointment.
Prospective directors can apply for a director ID up to 12 months ahead of the appointment.

Application Process

The easiest and fastest way to apply is online via ABRS.

You’ll need a myGovID account to apply for your director ID number online. This creates an authenticated digital identity you can use when accessing government services online.
Apply through Australian Business Registry Services, (ABRS) . You’ll need proof of identity documents such as tax file number, ATO notice of assessment or bank details.
You’ll then need to complete the application process from the ABRS webpage, which will link your myGovID account to the application. If the application is verified successfully, you’ll receive your director ID straight away.

Directors – you will have to complete this process yourself as you must verify your identity as part of the application – nobody else can apply on your behalf.

You can also apply via paper form or telephone.

What Next?

Start gathering your identification documents now in preparation for applying in November. Set up your myGovID, if you haven’t already, and take note of when you need to get your ID number. There's no reason not to get your ID number now – be proactive! This is also a great time to update your ABN details and ASIC details.

Talk to us if you’d like to know more about director ID numbers and company director obligations.

The value of cashflow forecasting during a crisis

Thu, 11 Nov 2021 02:13:27 GMT

A business cash flow forecast will give you vital business intelligence to help you scenario-plan, search for cost-savings and look for strategies that will preserve your cashflow position. Let's talk.

Projecting your cashflow pipeline forwards during a crisis is vital.

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

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

Run regular forecasts – The financial landscape is changing on a daily basis at present. A cashflow forecast is not a document that remains static. Variables and external drivers are literally changing each day, so it’s vital that you run frequent forecasts and react swiftly to any projected cash issues as they become apparent.
Use the latest cashflow forecasting apps – cashflow forecasting apps, like Fluidly, Float, or Futrli, integrate with your Xero accounts, giving a drilled-down view of how your cash inflows and outflows will pan out over the coming months – information that will inform and justify the decisions you make during these extremely challenging times.
Explore the right revenue streams – most sectors will have seen their face-to-face sales drop to absolute zero since quarantine restrictions came into place. To overcome this, there’s a real imperative to explore revenue streams and new opportunities for income. An example of this is coffee shops that now sell roasted beans online (this will depend on lockdown restrictions). The idea is to find ways to increase the money that’s coming in the door and balance out your unavoidable expenses.
Get proactive with cost-cutting – if you can reduce cash outflows to a minimum, that will have a real impact on the health of your future cashflow. Pare back your operations and aim to reduce things like unnecessary software subscriptions, or over-ordering of basic supplies. Negotiating cheaper rates with suppliers, if possible, will also help.
Review your staffing needs – now’s not the time to make anyone redundant, but you can look at ways to reduce the costs of staffing and resourcing. Reducing working hours or redeploying staff in different roles are all options that reduce payroll costs, while also looking after your staff’s welfare.
Run a variety of scenarios – changing the financial drivers in your forecast model allows you to scenario-plan different strategies and options. Many of these will be in a long-term plan when restrictions ease. Scenario-planning lets you answer questions and will give you some hard evidence on which to base your decision-making and strategic outlook over the coming months.
Look at various ways to access funding – if forecasts show a giant cashflow hole coming up, you’re going to need additional funding to get through this crisis. We can assist your business to investigate funding opportunities from grants, banks, loan providers, alternative lenders and crowd-sourcing funders.

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.

How’s your work-life balance?

Thu, 04 Nov 2021 02:11:48 GMT

Lockdowns have changed our priorities and work-life balance is more important than ever. It’s extra-tough if you’re a business owner who works long hours – so how can you reclaim some of your time?

It’s great to be the boss – you can work any hours you like, right?

Unfortunately, for many business owners, that means long hours, plenty of stress, and very few breaks and holidays.

A survey done by Statistics NZ found that:

21% of employers work 60 hours per week or more
Only 45% employers said they were satisfied with their work-life balance, compared with 76% overall.

After lockdowns and restrictions due to COVID-19, you might find yourself thinking about your priorities – at least, that’s been the case for a lot of business owners. This year work-life balance overtook salary as the main consideration for job-seekers, in this survey.

Running a business and having a life

Delegating – don’t try to do everything yourself
Saying no – not every project is worth taking on
Investing in systems – to reduce time on admin or paperwork
Taking all your leave – find ways to have breaks and holidays

Working towards a balance

Also, any business that doesn’t allow the owner to step away is very hard to sell and worth far less than one that can run independently!

We might have some ideas

Whether you want to improve your work-life balance now, or build your business to achieve it in future, we have ideas.

We’ve worked with plenty of clients who need to reclaim their time, and we know it can be done. Give us a call, drop us a note or come in for a chat – we’re here to help.

Understanding the Basics of Capital Gains Tax

brock@haslam.com.au (Brock Haslam) — Thu, 28 Oct 2021 01:41:23 GMT

Want to make sure you’re not paying too much capital gains tax? Keep all your asset records to make tax calculations easy. We'll make sure you receive any exemptions, discounts, or small business concessions allowed and check for special circumstances.

A capital gain (or loss) occurs when an asset is sold. The difference between the purchase price and the sale price is the gain or loss. Capital gains tax (CGT) applies to money you have made from selling an eligible asset.

Capital gains tax events occur when an asset is sold, or other triggers arise, such as the loss, theft, or destruction of an asset, or creating contractual or other rights to an asset.

Not all assets are subject to CGT. Common exemptions include the main residence or family home, granny flats, cars and motorcycles, personal use assets such as boats, furniture, household items or loans to family and friends. Many types of lump sum payments are also not subject to CGT, and business sales may also be exempt depending on the circumstances.

Most property is subject to CGT, including land, commercial premises, rental properties, holiday houses and hobby farms. CGT also applies to shares, investments, cryptocurrency, many collectables, foreign currency and intangible assets.

Visit the ATO for a list of CGT assets and exemptions here.

There are special rules for some specific situations, for example, inheriting assets, relationship breakdown, foreign residents, insurance or compensation payments.

How is the Tax Calculated?

Tax is calculated on the net gain of an asset sale. Tax is payable on the difference between the purchase price and sale price, less any discount allowed.

The type of CGT event affects how and when capital gains tax is calculated. For example, if an asset is destroyed in an accident, the CGT event occurs when the insurance payout is received.

Good record keeping is key to working out capital gains tax accurately. Make sure you keep all documents related to asset purchases, including contracts, expenses valuations and disposal.

CGT is calculated at the time of completing your individual, business or self-managed super fund tax return and is included in the income tax assessment.

Talk to us to ensure you’re claiming all you’re entitled to and not paying more tax than you should. We’ll make sure you’re receiving any exemptions, discounts or small business concessions allowed.

Direct Debits & Online Payments Set Up For Your Business?

Thu, 21 Oct 2021 01:38:12 GMT

Do you have direct debits and online payments set up to make it easy for your customers to pay you? Talk to us today about implementing online payment systems to reduce admin time, improve the accuracy of your accounts and get paid quicker.

If you’re already using online accounting software, check the add-on solutions and choose one that integrates with your accounts. This means that the payment platform information feeds directly into your accounting software to be easily matched to customer transactions.

Make it Easy

You probably already have bank transfer information set up, but adding several other methods such as PayPal, debit cards, and credit cards allows customers to choose the method most convenient for them at the time. Many customers appreciate the automation and simplicity of direct debits. Make sure your payment terms and conditions are clear on your website and invoices and don't forget to include all your chosen payment methods for customers!

Worried About Costly Fees?

You have the option to choose whether you will absorb the cost of the payment gateway processing fees or whether you will add the cost to your invoice and charge the clients extra. Your accounting software will then allocate the funds accordingly to invoice payment and fees received.

Better Transaction Recording

Not Sure Where to Start?

If you’d like to make it easier for customers to pay you, talk to us about which solutions are best for your business. We can discuss which platforms have the best and most secure integrations with the accounting software you use. We’ll help streamline your payment systems.The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

Are you telling the right customer stories?

Thu, 14 Oct 2021 01:36:37 GMT

When you tell the right stories, you create an awareness of more than just your products and services. You bring people inside your brand and tell them what it’s like to be a customer.

With so many different marketing and sales channels to pursue in the digital world, it's easy to think that your prospects and target customers know exactly what your business does.

But are you getting the right messaging out there? And are you using the right channels to talk about your customer service and customer feedback? People buy from people, so it's important to not underestimate the value of satisfied customers and personal recommendations.

Telling the right stories

We all love a good tale, don’t we? And being able to tell an engaging customer story is still one of the best ways to get a prospective customer hooked on your brand.

When you can use real customer quotes, or refer to testimonials from satisfied clients, this brings with it a level of authenticity and honesty that’s hard to argue with. This isn’t about marketing blurb or PR spin – these are real stories, from real people. And they’re worth their weight in gold when it comes to expressing how, and why, you do business.

Think about using:

Personal recommendations – recommendations can be peer-to-peer recommendations from existing users or testimonials from your satisfied customers. Working quotes and testimonials from these brand advocates into your content and marketing helps to add authenticity – showing what you’re really about.
Case studies – customer case study posts or videos show the real experience of what it’s like working with you. Choose customers who you know share your vision and who believe strongly in your brand. Then interview them, have a chat and find out what they really like about your business. It can often be an illuminating experience.
Consumer/customer feedback – in the digital world, your online reviews are an essential part of gauging how well you’re meeting customer expectations. Solutions like TrustPilot help to measure customer ratings, and feedback from your social channels and selling platforms, like Amazon and Google ratings, all provide extremely useful and quotable content for your marketing. If someone says they love your new updated product on Twitter, share that love and get the message out there as widely as you can.
Follow-up surveys and questionnaires – another route to genuine feedback is asking your existing clients to take a survey. By targeting your questions carefully, you can get extremely detailed responses to your field of interest. That might be views on your new product, feedback on your customers’ experiences, or simply just asking customers why they use your brand. It’s all incredibly useful information to have in your data bank.

Start telling the right stories about your business and customers

When you tell the right stories, you create an awareness not just of your products and services. You start to reveal the underlying vision behind your business, the atmosphere in your team and what it’s like to be your customer. That’s a powerful tool to have in your marketing toolbox.

Super choice rules will change from 1 November

brock@haslam.com.au (Brock Haslam) — Thu, 30 Sep 2021 01:35:37 GMT

Important update for employers

You’ll have an extra step to take if you have new employees who start from 1 November 2021 and they don’t choose a super fund.

You may now need to request their ‘stapled super fund’ details from the ATO.

A stapled super fund is an existing super account of an employee that follows them as they change jobs.

This change aims to stop your new employees paying extra account fees for unintended super accounts set up when they start a new job.

What you need to know

You may need to request stapled super fund details when:

your new employee starts on or after 1 November 2021
you need to make super guarantee payments for that employee, and
your employee is eligible to choose a super fund but doesn’t

You may still need to request stapled super fund details for some employees even though you don’t need to offer them a choice of super fund. This includes if your employees are temporary residents or they’re covered by an Enterprise Agreement or Workplace Determination made before 1 January 2021.

You can request stapled super fund details for your employees if you have full access to Online services for business . You need to review and update these accesses to protect the privacy and safety of your employees’ personal information.

You must meet your choice of super fund requirements and any stapled super fund obligations by the quarterly due date or you may face penalties.

What you need to do from 1 November 2021

Step 1: Offer your eligible employees a choice of super fund

You need to give your eligible new employees a Super standard choice form and pay their super into the account they tell you on the form. Most employees are eligible to choose what fund their super goes into.

There is no change to this step of your super obligations.

Step 2: Request stapled super fund details

If your employee doesn’t choose a super fund, you may need to log into ATO Online services and go to ‘Employee Super Accounts’ to request their stapled super fund details. If you don't have Online services set up, contact us to help you.

The ATO will provide your employee’s stapled super fund details after they have confirmed that you are the employer.

If they provide a stapled super fund result for your employee, you must pay your employee’s super using the stapled super fund details we provide you.

Step 3: Pay super into a default fund

You can pay into a default fund, or another fund that meets the choice of fund obligations if:

your employee doesn’t choose a super fund, and
we have advised you that they don’t have a stapled super fund.

2021 QLD Covid-19 Business Support Grants

Mon, 02 Aug 2021 23:52:58 GMT

2021 COVID-19 Business Support Grants for lockdown impacted businesses in Queensland

Your business may be eligible for financial support through the 2021 COVID-19 Business Support Grants. $5,000 grants will be made available to small and medium businesses across Queensland affected by the COVID-19 lockdown that commenced on Saturday 31 July 2021 and lockdowns in other states.

The Queensland Government recognises the short interval between lockdowns in South East Queensland, and the unique circumstances faced by regional economies who are impacted by multiple border closures. These $5,000 grants will provide cash flow support for businesses to help them adapt to evolving circumstances.

Available funding

You may be eligible to receive a grant of $5,000 (excluding GST). This grant may be used for business expenses.

Eligibility criteria

The grant provides support to employing small and medium businesses across Queensland impacted by the South East Queensland lockdown that commenced on 31 July 2021. Your business doesn't have to be located in South East Queensland, but you must have experienced at least a 30% reduction in turnover as a result of the lockdown.

Grants are also available for large businesses in the hospitality and tourism sector operating in the 11 local government areas in the lockdown, subject to meeting eligibility criteria.

Small and medium businesses are defined as having:

a turnover of more than $75,000 per annum
an annual payroll in Queensland of up to $10 million.

Local government areas subject to lockdown restrictions are:

Brisbane City Council
Gold Coast City Council
Ipswich City Council
Lockyer Valley Regional Council
Logan City Council
Moreton Bay Regional Council
Noosa Shire Council
Redland City Council
Scenic Rim Regional Council
Somerset Regional Council
Sunshine Coast Regional Council.

More information on eligibility criteria will be available in the coming days.

How to apply

Applications will open in mid-August.

You will need to apply online with supporting evidence via business.qld.gov.au

Grants will be processed in the order we receive them.

You will be paid the grant funds within 2 weeks of being notified that your application has been approved.

More information on how to apply, including the opening date for applications, will be available in the coming days via the following link: https://www.business.qld.gov.au/starting-business/advice-support/grants/covid19-support-grants

Queensland Business Boost Grant

Thu, 29 Jul 2021 06:53:00 GMT

Business Boost Grants Program

The Business Boost grants program provides support to businesses to advance improvements in their efficiency and productivity.

This support includes funded activities in 3 project areas:

Future planning
Specialised and automated software
Staff management, development and planning

The program is administered by the Department of Employment, Small Business and Training (DESBT).

Key Details

Eligible business size : Small businesses

Opening date : 9am, 30 July 2021

Closing date : When funds are exhausted

Eligibility criteria

To be eligible for this grant, your business must:

have fewer than 20 employees at the time of applying for the grant
have an active Australian Business Number (ABN) and registered for GST
have a Queensland headquarters
have a turnover of between $300,000 (minimum) and $600,000 (maximum) in the last financial year (2020–21)
have a publicly reachable web presence to identify business operations (e.g. business website and/or social media pages)
not be insolvent or have owners/directors that are an undischarged bankrupt.

Check your eligibility to find out if your business can apply for the program.

Available funding

You may be eligible to receive a grant payment of $15,000 (excluding GST) on completing your proposed project.

Successful applicants must co-contribute at least 30% of the total project costs.

Grant funding will be paid only after compliant acquittal documentation is received.

We will not fund projects with:

a total cost of less than $10,715 (excluding GST)
or
payments made before the approval date (you must be approved before you pay for grant-funded project activities).

For more information visit:

https://www.business.qld.gov.au/starting-business/advice-support/grants/business-boost

What’s the Difference Between PAYGI and PAYGW?

Wed, 21 Jul 2021 23:59:44 GMT

Many people new to running a business and employing people are unsure about the difference between PAYGI and PAYGW. They are not the same thing!

PAYG stands for ‘pay as you go’. This is the means the ATO uses to obtain tax payments from both employees and business owners. Paying tax ‘as you go’ throughout the year means you don’t have to pay it all in one lump sum at the end of the tax year.

PAYG Withholding for Employees Income Tax

PAYG withholding refers to the income tax an employer withholds from employees’ gross wages to meet their personal income tax liabilities. Employers are required to remit the employees’ withheld tax to the ATO each month or quarter, with the business activity statement (BAS) or the monthly instalment activity statement (IAS).

PAYG withholding applies to payments employers make to employees, directors, office holders and labour-hire workers. PAYG can also be withheld from non-employees: contractors with a voluntary withholding agreement, some payments to foreign residents and payments to suppliers where an ABN has not been quoted.

PAYG Instalments for Business Income Tax

If you run your own business, you'll need to plan for income tax payments once you make more than the taxable threshold. PAYG instalments allow you to pay an amount towards an expected tax bill. Amounts are based on business or investment income from the previous tax year. Once you complete your tax return, the amounts already paid are offset against the total amount of tax due. You will then receive either a bill for extra tax or if you have paid too much, you will receive a refund.

Usually, when you start in business, you don't pay any tax instalments until you have completed the first year’s tax return. However, if you’re new to business, you can voluntarily enter into the PAYG instalment system to start contributing towards your next tax bill. This is worth considering if you have done better than expected in your first year!

You can pay PAYG instalments by using the ATO determined amount based on information in the last tax return (instalment amount) or using the ATO defined percentage rate applied to your income (instalment rate). The first method is the simplest; however, if your income varies a lot from one quarter to another, it may be better to use the instalment rate so you know you have put aside the correct amount based on your actual income.

PAYG Planning for Cash Flow

If you’re new to business or considering employing people soon, you’ll need to plan for PAYG instalments and possibly PAYG withholding so you can meet your ATO tax reporting and paying obligations. Planning ahead means you’ll never be caught short with cash flow difficulties.

Talk to us to learn more about income tax responsibilities as an employer and business owner.

Taxable Payments Annual Report (TPAR) for 2021

Thu, 15 Jul 2021 00:11:17 GMT

The taxable payments annual report (TPAR) reports to the ATO information about payments made to contractors for certain services.

TPAR for the building and construction industry has been in place for some years. In recent years, cleaning services, courier services and some government entities have been added to the system.

Last year, taxable payments reporting was expanded to include three new industries: road freight services, information technology services, and investigation or surveillance services.

Has Your Business Made Deliveries to Customers?

Many businesses started making deliveries during the 2021 financial year for the first time. Other businesses may have found that their deliveries increased dramatically. If your business has earned substantial income from making deliveries, you may need to submit a taxable payments annual report for the first time.

If more than 10% of your turnover has been earned from deliveries (or any other taxable payments reporting industry), you’ll need to submit a TPAR by 28 August 2021.

Essential Information Included in the TPAR

Contractor ABN
Contractor name
Contractor address
Total for invoices relating to services only or a combination of services and materials
Total GST included
Business to business transactions only
TPAR is based on invoices paid from 1 July to 30 June (do not include unpaid invoices)
If the business provides mixed services, then if payments to contractors total 10% or more of GST turnover in any of the required industries, the business is required to report

Contractors include subcontractors, consultants and any other independent contractor who is not an employee.

Unsure if You Should Complete a TPAR?

If your business offers services in any reporting industry, either as the primary type of income or part of your business mix, talk to us about the contractors you pay.

Check the ATO taxable payments annual report webpage for full details of all TPAR industries and all the services that must be included in the report.

Most accounting software programs include a means of preparing the TPAR from within the software once all the required details about contractors paid throughout the year have been entered.

Need help in working out if you have to report this year? Talk to us .

We can also set up your software for correct reporting of contractors for TPAR and review the report before submitting it to the ATO on your behalf.

Is it time to fire a client?

Thu, 08 Jul 2021 01:24:35 GMT

The best clients make being in business all worthwhile. They value your expertise, appreciate your hard work, they’re friendly to work with and they pay their invoices. You’ll always go the extra mile for those clients – they drive your success.

Then there are the clients who aren’t quite as enjoyable to work with. The ones who want everything in a hurry, at a rock-bottom price, and then complain about the invoice. Should you consider getting rid of your worst clients?

Rate your clients

Make a list of your clients and think about how you might rank them. One way is to put them into grades from A to D. You might like to consider how much revenue they bring in, how pleasant they are to deal with, how promptly they pay and how many other clients they have referred.

'A' clients are good on all measures, 'B' clients might be good on most, and 'C' clients might be a bit difficult but worth the effort. The lowest-ranked 'D' clients are those who take up a lot of time, for very little money, and generally cause you far more stress than they’re worth. This exercise is also valuable for giving you an understanding of the client profile you need to attract more of.

Why would you fire a client?

It might seem crazy to get rid of a client when it can be tough to attract new business. But if a D client is consuming far too much time for only a tiny amount of revenue, that’s time you could spend finding a new A or B client to replace them. Or you have time to improve your service for your A clients, increasing their spend or allowing you to raise your prices.

Need some help?

We have experience with business owners who have turned clients away, and we can talk to you about the pros and cons of shedding your worst-performing clients. And that’s only one of the ways we can help you grow your business – give us a call and let’s talk.

Regain Control

Wed, 30 Jun 2021 02:23:55 GMT

Regain control of your business with the three essential tools.

Business owners often feel like they're not in control of their business. The number of hours they're working starts creeping up, they start experiencing more stress, and it starts affecting their personal life.

So, how do you regain that much needed control? How do we gain more financial, time and mind freedom?

There are three essential tools all businesses must have:

An annual Business Plan.
An annual forecast.
Ongoing reporting and accountability.

The annual Business Plan

Your Business Plan shouldn’t be a lengthy document living in a 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’ll identify Key Performance Indicators (KPIs) to monitor, vulnerabilities to manage, and opportunities to act upon. You’ll set 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 highlights 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’ll uncover the root causes of problems in your business and empower you to do better. Most importantly, they’ll hold you accountable to getting the important stuff done.

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

Get in touch to discuss how we can work together - to help you gain control of your business and ensure your business delivers on your vision.

“Dreams x Goals x Plans x Actions = Your success.” - Brad Sugars

Payroll Updates

Tue, 22 Jun 2021 01:46:40 GMT

Payroll Updates - Minimum Wage, Super Increase and STP Finalisation Date

Navigating Payroll? We can help keep you up to date on changes this year, including new rules for casuals.

Minimum Wage Increase - 1 July 2021

The national minimum wage increases on 1 July by 2.5% to $20.33 per hour (or $772.60 per week).

The minimum wage increase applies to employees if an award or national minimum wage defines their pay rate.

This year, the Fair Work Ombudsman (FWO) has implemented minimum wage increases to awards in a staggered approach. Most awards increase on 1 July; however, the Retail Award will increase from 1 September, and a few awards will increase on 1 November.

For full details of award increases, visit Fair Work Ombudsman Annual Wage Review 2021 .

Changes to Casual Employment

The Fair Work Act has been amended to include a Casual Employment Information Statement (CEIS), a formal definition of casual employment, and a pathway for casual employees to become permanent employees.Employers must now provide the CEIS to all casual workers upon starting with the employer, along with the National Employment Standards and Fair Work Information Statement. Visit the FWO Casual Employment Information Statement webpage for details and to download the form for your employees. For more information about casual employment definition and the options for becoming a permanent employee, visit FWO Changes to Casual Employment to check if you have to offer permanent positions to your employees.

Superannuation Increase from 1 July 2021

The superannuation guarantee statutory rate increases to 10% from 1 July. Your payroll software should automatically capture the changes, but check the rate is correct when you do your first pay runs in July. Review any agreements or annualised salary arrangements you have with employees that may be inclusive of superannuation.

Single Touch Payroll Finalisation

Remember that this year you need to finalise all STP data by 14 July.

Employers with a mixture of employees and closely held payees have until 30 September 2021 to make the declaration.

Small employers (fewer than 19 employees) that only pay closely held payees have until the payee’s income tax return due date.

Review Your Payroll Systems

The start of the financial year is the best time to review your payroll setup, policies and costs. Talk to us if you need to implement payroll policies, review payroll costs or update your casual worker details. And we can help you get the STP finalisation done on time – getting it right the first time means your employees will have accurate information for their tax returns. We can also review your pay setup and make sure it’s right for the start of the new financial year.

Let's make a time!

Reporting Cryptocurrency

Thu, 17 Jun 2021 01:52:46 GMT

Reporting Cryptocurrency Transactions at Tax Time

Have you dived into the world of cryptocurrency exchanges?

Cryptocurrency is used to describe encrypted virtual currencies which exist as digital tokens. This digital currency operates outside of government via decentralised ledgers or digital wallets but can be exchanged for online goods and services.

The ATO treats cryptocurrency as a form of barter exchange. There is no problem with exchanging goods and services so long as the transactions are recorded and valued correctly.

Business or Personal?

Whether it’s business or personal, crypto exchanges (buying, selling or holding crypto assets) are subject to the same income tax and GST treatment as cash or credit transactions.

If you use cryptocurrency in your business, you'll need to account for cryptocurrency just as you would for other business transactions. If you’ve used it for personal investment, you’ll need to include details in your income tax return.

The ATO uses data supplied by Australian cryptocurrency exchanges, state revenue offices and shares data to cross-reference the crypto gains and losses information in your tax returns.

Crypto Transaction Records

Keep records of all transactions, including dates, AUD value, the nature of the transactions, exchange receipts, legal costs and other parties involved (even a crypto address is enough) in the sale or purchase of cryptocurrency.

Cryptocurrency and the ATO

The ATO has taken a lenient approach to pursue taxation of crypto assets. However, now that cryptocurrency is attracting more mainstream investors and there is a lot more data available, the ATO checks the taxation obligations of individuals and businesses with crypto assets.

There are different rules for using cryptocurrency in business and for personal expenses or investment. Business transactions use the trading stock rules, while private exchanges involve capital gains tax rules.

Talk to us. We’ll check that all your crypto transactions are recorded correctly for your tax return. Don’t get caught out by the ATO spotlight on cryptocurrency at tax time!

Buying or selling shares?

Mon, 14 Jun 2021 01:39:04 GMT

Buying or selling shares? Remember to include details in your Tax Return.

With the increased availability of share trading apps, making it cheaper and easier to buy and sell shares, more people are entering into share trading for the first time.

You must declare all income from investments in your tax return, including dividend payments from shares, whether you have traded through a broker, an online platform or a phone app.

Dividend income could be received as bonus shares instead of cash payment, and some dividends have franking credits attached, which may reduce your tax liability.

All payments and credits for dividends and non-cash dividend payments need to be reported. The ATO matches shares data from your tax return to the shares trading details held by the Australian Securities and Investment Commission.

Records for Your Tax Return

You need to include details of all purchases and sales of shares this financial year – not just payments received.

Each company you buy shares from will issue dividend or distribution statements that provide details of the amount and nature of the payment and whether franking credits apply. If you have not supplied your tax file number to the company, the statement will also show the amount of withholding tax.

Always keep all documents provided by the companies you hold shares with. And remember to keep your shares records for at least five years after you have completed your tax return.

Need Help?

Once you enter the share market, your tax return can become more complex. For example, some shares transactions will result in capital gains tax or a capital loss, affecting your tax return. In addition, certain expenses incurred in earning your dividend income are claimable – but different rules apply to different types of payments and credits.

We’d love to help you streamline your shares information and make sure you are claiming the offsets and expenses you are allowed to claim, to maximise your tax return.

ACL Changes

Tue, 08 Jun 2021 02:00:24 GMT

Australian Consumer Law Changes.

Changes to the Australian Consumer Law (ACL) from July 2021 – do they affect your business?

The financial threshold definition of a consumer within this law will increase from $40,000 to $100,000.

The law change means that businesses that sell goods or services with a value up to $100,000 must comply with the consumer guarantees provided by the ACL.

Certain ACL guarantees automatically protect consumers if they purchase goods up to the new threshold, regardless of warranties provided or purchased as an extra. The law will now apply to a broader range of goods and services because of the increased threshold. Even if you offer or sell warranties, the ACL guarantees will still apply in addition to any company warranties.

The guarantees apply to aspects such as safety, quality of products, expectations of function, description, being fit for purpose and having spare parts available. There are exceptions to guarantees that protect the supplier, for example, if a customer changed their mind or misused a product.

Businesses must guarantee products and services they sell, hire or lease. If a business fails to deliver guarantees, consumers have the right to pursue the supplier for repair, replacement, refund, cancellation or compensation.

It’s important to understand the Australian Consumer Law and how it impacts your business so you don’t get caught out by the changes. If you’re not sure what it means for your business, we can help you understand so you can focus on looking after your customers.

Keeping your cashflow strong!

Tue, 01 Jun 2021 02:15:21 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’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 terms and help you alleviate cashflow worries.

Tax Tips for small businesses

Sat, 15 May 2021 13:32:49 GMT

Need help with maximising your business deductions? This year it’s important to get your records and tax return correct because of the unusual business circumstances and JobKeeper. We can help make tax time easy.

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?

Operating expenses include accounting, administration, advertising and marketing, office premises, office running expenses, trading stock, legal fees, insurance and vehicle expenses.
Employment expenses include salary and wages, fringe benefits, superannuation and training costs.
Other operating expenses may include things specific to your business, for example point of sale systems, freight, professional membership fees, professional education, protective equipment, tools or specialised software.
Capital expenses include machinery and equipment, vehicles, furniture and computers. Depreciation for these assets may also be deductible if the expense was not written off immediately.
Repairs and maintenance to assets and business premises.
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?

Travel expenses – travel fares, accommodation, meals. The travel should be directly related to income producing activities.
Motor vehicle expenses – keep records for fuel, repairs and servicing, finance arrangements, insurance and registration. Keep a logbook to record private travel.
Home office expenses – this year there is a shortcut calculation for people who have temporarily had to work from home due to COVID-19. This allows for a flat rate of 80 cents per hour for work time. For people who usually work from home, check the ATO home office expenses calculator to maximise the allowable deduction.
Fringe benefits – have you captured all benefits provided to employees? Vehicle and entertainment benefits are usually scrutinised.
JobKeeper – if you have claimed JobKeeper for eligible business participants and/or employees, the ATO will look closely at your payroll records.

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’d like advice about whether it’s 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.

Keep records for all business transactions (income and expenses), activity statements and financial reports for at least five years.
Keep all records relating to employees, contractors and payroll for at least seven years.
If your business is a company, keep all records for at least seven years, including director meeting minutes.

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’s 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.

Tax Tips for Individuals

Sat, 15 May 2021 13:31:39 GMT

Are you making the most of your allowable tax deductions? Individuals can claim for general work-related expenses as well as occupation-specific expenses and working from home.

Tax time is just a few weeks away. Take the chance to make sure you're ready to go when the time comes.

Income

The Australian 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.
Pensions, annuities or government payments such as JobSeeker or JobKeeper.
Investment income including interest earned and dividends paid.
Business or hobby income.
Foreign income.
Crowdfunding income.
Sharing economy income such as Uber or Airbnb.
Any other income such as prize money, compensation or insurance payments.

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:

bank statements that show interest income;
proof of earnings from other sources such as crowdfunding or share economy platforms;
records of business or hobby income;
records of government payments received;
and records of any other payments received from overseas sources, prize winnings, insurance or investments.

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

Vehicle and travel expenses – make sure you have a travel diary to record details of trips taken for your employment.
Clothing, laundry and dry-cleaning expenses – you can claim for occupation specific clothing, uniforms and protective gear.
Home office expenses – there are special rules this year for employees working from home because of COVID-19. You will need records of the hours you have worked from home to claim the ATO special rate.
Self-education expenses – some education expenses that relate to your current employment are claimable.
Tools and equipment – if you buy gear to help you in your job, these may be claimable. Small tools of trade, protective items, professional references and laptops are some examples of equipment 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 fact 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 your tax return and we’ll make sure you maximise your allowable tax deductions this year.

Summary of Superannuation Changes

Sat, 15 May 2021 13:30:55 GMT

A few of the superannuation rules and rates are changing. Here's a quick summary.

Changes from 1 July 2021

Compulsory employer Superannuation Guarantee changes from 9.5% to 10%
The Concessional Contributions Cap changes from $25,000 to $27,500
The Non-Concessional Contributions Cap changes from $100,000 to $110,000
The 'work test' for those aged 67 - 74 will be removed*
The age limit for accessing the Downsizer Scheme will be changed from 65 to 60*

Changes form 1 July 2022

Compulsory employer Superannuation Guarantee changes from 10% to 10.5%
The $450/month minimum wages threshhold for Superannuation Guarantee is removed*
The First Home Super Saver Scheme amount increases from $30,000 to $50,000*

* Subject to legislation passage

Federal Budget 21-22

Wed, 12 May 2021 23:03:19 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

Temporary full expensing measures extended until 30 June 2023 – eligible businesses can claim an immediate deduction for the total cost of depreciating assets.
Temporary loss carry-back rules extended – eligible companies can carry back tax losses from the 2023 financial year to offset tax bills from 2019 onwards.
Administrative Appeals Tribunal given the power to pause or modify ATO Debt recovery action – reducing the legal fees and red tape for small business.
Tax cuts – small to medium company tax rates will reduce to 25% from 1 July as planned.
Recognition of occupational licences – reduced regulatory burden for people who work across multiple states.
Digital Economy Strategy whole of government plan – funding for digital cadetships, innovation investment incentives, e-invoicing, cyber security, overhaul of myGov and building small to medium business digital capacity.

Budget Highlights for Individuals

Personal income tax cuts – the low and middle income tax offset continues for another year.
Medicare levy - low-income thresholds increase.
Self-education expenses – full cost of eligible self-education can be claimed.

Superannuation Highlights

Changes to work test – no longer required for non-concessional contributions and salary sacrifice, but still required for those aged 67-74 who want to make personal contributions.
Downsizer contributions - now allowed for people over 60.
SMSF and residency – rules relaxed to allow concessional tax treatment for more people temporarily away from Australia.
$450 monthly minimum for SGC - proposal to remove threshold for casual employees.

Other funding announcements include guaranteeing essential services, COVID-19 vaccine rollout, industry-specific measures, investment in employee training and mental health support measures.

For full details, visit Budget 2021-22 .

Talk to us about how you or your business can benefit from the budget announcements.

Should I focus on profits or cashflow?

Tue, 27 Apr 2021 11:54:32 GMT

Worried about your cashflow and the profitability of your business? Let us review your finances and highlight key ways to improve your cash position while keeping the profits rolling in.

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

Cashflow is the beating heart of your business. Without an even and predictable flow of cash into the company, you can't cover your overheads, you can't pay your employees and you can't 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’re 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:

Profit is a by-product of a successful business – as the owner, you want to make profits, but profitability isn’t the only goal. A business can easily be profitable, but also be highly unstable in the longer term. What you want is stability and consistent revenues.
Cashflow is the blood that keeps your business alive – good revenues (income) serve to bring cash into the business. Without cash to cover your operating expenses, you have no means to keep the lights on in the business. So cash really is king!
Know your cost base and overheads – the flipside of your cashflow position is your costs. In an ideal world, you want more cash inflows than cash outflows, so it’s important to know your expenses and costs and to manage them carefully.
Be proactive about spend management and easing expenditure – if you can take action that reduces your spending, that is hugely positive for your cashflow position. Choose cheaper suppliers, negotiate better deals and bring that cost base down.
Drive more revenue, through increased sales and marketing activity – if you can increase your revenues, you also boost your cashflow. So it’s important to be proactive about running targeted sales and marketing campaigns to increase your sales.
Keep the cash flowing and the profits take care of themselves – if you achieve the ideal cashflow position, the company sits on solid financial foundations, the cash is there for investment and the business can grow. It’s that simple.

Talk to us about improving your cashflow management

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

We’ll review your finances, delve down into your cashflow and will come up 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.

The Five A’s of Change - achieving continuous improvement

Tue, 27 Apr 2021 11:51:04 GMT

How can we consciously use the process of change to continuously improve our business?

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’s important to pause and reflect on the changes you’ve 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's likely there are other opportunities (or changes) 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 need awareness 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's likely you're craving some stability; however progress requires change. Change is a lot more positive when it’s a result of proactive (not reactive) thinking.

3. Action.

Once we have a plan, we must actually implement it. Now that you're 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 fool proof 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've 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’re 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? Contact us to find out how we can help you with planning and accountability.

Government to Extend LMI Tax Offset

Tue, 27 Apr 2021 11:46:15 GMT

Workers to keep $1,080 tax rebate for another year.

The AFR has reported that the govenment plans to extend the Low and Middle Income Tax Offset (LMITO) when the federal budget is handed down in two weeks time.

The LMITO provides a tax rebate of up to $1,080 for singles and $2,160 for dual-income couples depending on their income. It was initially introduced as a temporary measure, implemented as part of the Morrison Government’s Stage 1 tax cuts.

However with the economic pressure of COVID-19, the government will extend the offset in an effort to create tax refunds and stimulate spending. The budget cost of the extended rebate is around $7 billion.

You can now use myGovID to sign in to myGov

Tue, 27 Apr 2021 11:43:28 GMT

Connect your myGovID to myGov

You can now use your myGovID to sign in to myGov, expanding the use of myGovID to both business and personal matters.

Connecting myGovID to your existing myGov account makes signing in:

Simple – set up once and use it to unlock government online services.
Flexible – you can still use your existing myGov sign in option as well as myGovID, helping you avoid losing access to your account when using SMS codes.
Secure – your personal information is encrypted and verified against existing government records, making it the most secure way to sign in to myGov.
Streamlined – access multiple government online services, for both personal and business matters.

How to connect your myGovID to your myGov account

If you don't have an existing myGov account, you will need to create one to connect your myGovID.

Sign in to my.gov.au using your myGov username or email, and password.
Go to Account settings.
Select Digital Identity and follow the prompts to connect your myGovID.

Once connected, you can continue to use your myGovID to sign in to myGov. myGovID provides you with a flexible sign in option that doesn't lock you into one device or phone number.

ATO Small Business Review Service Now Permanent

Tue, 27 Apr 2021 11:39:43 GMT

Following its successful three-year trial program, the ATO’s independent review service is to become permanently available to small businesses.

The ATO on Friday announced that it will permanently instate its independent review service following a successful, three-year pilot program which scored the approval of its participants, whether they got the outcome they wanted or not.

“Small businesses who participated in our pilot told us they found the process to be fair and independent, irrespective of the independent review outcome, so this is a great result, and is a big part of why we are locking this service in permanently,” said Jeremy Geale, deputy commissioner at the ATO.

The service will be available to eligible businesses with an annual turnover of less than $10 million in relation to disputes about income tax, GST, excise, luxury car tax, wine equalisation tax, and fuel tax credits, but won’t cover superannuation or fringe benefits tax.

Before the ATO rolled out its small business pilot program in 2018, the independent review process was only available to businesses with a turnover of more than $250 million. Originally the small business pilot program was only to last 12 months, but was later extended in February last year following a strong approval rating.

Since the pilot program’s inception, more than 1,200 small businesses have been offered the service, and more than 180 have actively used it.

It was designed to empower small businesses with an avenue to dispute auditing decisions made against them by the ATO, in a quick, cost-effective way. Mr Geale said that it’s critical that small businesses are afforded to do so, and are able to pursue a fair resolution with the ATO.

“Independence is critical when handling a dispute, so we ensure each and every independent review is done by an officer from a different part of the ATO who was not involved in the original audit.”

Mr Geale said that taxpayers will be able to request in-house facilitation at any stage of a dispute with the ATO. He also said that an independent review would take place prior to any amended assessment, and any resulting debt that’s raised.

Australian Small Business and Family Enterprise Ombudsman, Bruce Billson, welcomed the ATO’s decision to offer the service to small business owners on a permanent basis, in line with his office’s advice to the Tax Office.

“I congratulate the ATO for taking a proactive approach with this commitment to help resolve small business tax disputes,” Mr Billson said. “The ATO has acted quickly to implement a key recommendation in our recently released report, A tax system that works for small business, which will help support small businesses when they disagree with an ATO audit position.”

It’s a position shared by Mr Billson’s predecessor, Kate Carnell, who in 2018 said she was pleased to see the ATO recognise that a service made available to large businesses could be helpful for small businesses dealing with tax, too.

“The fact that small business will now have an independent area of the ATO to consider matters afresh is an important step,” she said, “and one that we will watch to see whether it provides for informal discussion of issues in a way that avoids formal legal routes.”

Australians give accountants vote of confidence

Wed, 17 Mar 2021 23:28:10 GMT

Crippling workloads and intense pressure from clients throughout the pandemic had little impact on service levels from accountants, with trust in the profession remaining exceptionally high, according to new findings from the Tax Practitioners Board.

The Tax Practitioners Board’s biannual survey of 12,000 consumers has found that 88 per cent of respondents continue to have a high trust level in their tax practitioner, on par with figures from the year before.

The survey, which was conducted in November last year, also found that two out of three rated their experience with their tax practitioner as excellent.

CPA Australia senior manager of tax policy Elinor Kasapidis said the results were an affirmation of the professionalism and standards of practitioners in a turbulent year marked by bushfires, floods and the COVID-19 pandemic.

“Tax practitioners should take great pride in these results,” Ms Kasapidis said. “They are a strong acknowledgment of the critical, frontline role they — and, indeed, many professional accountants — played and continue to play in supporting individuals and businesses during the pandemic.

“During the most difficult of years, when practitioners managed sky-rocketing workloads while helping increasingly financially and emotionally distressed clients, consumers’ trust and confidence remained very high. This shows that practitioners maintained excellent service levels despite the pressures they were under.

“With around 12,000 consumers surveyed each time, this research gives a really clear picture of what people think about tax practitioners. And the answer is, they hold them in very high esteem.”

The TPB’s biannual survey first commenced in September 2019, with consumers randomly selected for a voluntary response.

Tax practitioners are also surveyed as part of the research, with 5 per cent of the entire tax practitioner population selected every six months. The TPB notes that a tax practitioner may expect to receive a survey once every 10 years, on average.

Findings from practitioners reveal that four out of five understand the role of the TPB, while 85 per cent believe the regulator is effective at ensuring that tax practitioners are registered.

Super Contribution Caps To Increase

Mon, 08 Mar 2021 22:34:04 GMT

From 1 July 2021 superannuation contribution caps will increase for the first time since they were set in 2017.

The concessional contribution cap, originally set at $25,000 from 1 July 2017, is indexed by average weekly ordinary time earnings (AWOTE) in increments of $2,500.

With the announcement of the AWOTE figure for the December 2020 quarter, the concessional contribution cap is set to increase from $25,000 p.a. to $27,500 pa from 1 July 2021.

The non-concessional cap in 2021–22 will see the standard cap increased from $100,000 to $110,000 from this date.

In addition, the maximum amount a member who was under 65 at the start of the year can contribute under the non-concessional contribution cap bring-forward rule is also set to increase from $300,000 to $330,000 from 1 July 2021.

It is important to note that the proposal announced in the 2019 federal budget to extend access to the bring-forward rule to people under age 67 at the start of the first financial year is not yet law.

Therefore, only members who are aged under 65 at the beginning of the financial year will be eligible to trigger the bring-forward rule.

It is also important to consider the $1.6 million non-concessional cap threshold is changing due to the indexation of the general transfer balance cap on 1 July 2021 to $1.7 million.

Xero Price Increase

Thu, 04 Mar 2021 01:22:00 GMT

From 1 April 2021

From 1 April 2021, Xero is increasing the cost of data files by $2 per month.

Traditionally, accounting software providers increase their prices on 1 April each year. Due to the COVID-19 pandemic, QuickBooks did not increase their prices in April 2020, giving users an extra 12 months at historical pricing.

Discounts For Haslam Clients

As we have done in previous years, where we hold a Xero subscrition on your behalf and you are on an Agreed Price Service Plan, we will not pass on any price increase until your renewal on 1 July 2021. That's an extra three month discount !

If you're currently paying your own Xero subscription but would like to take advange of this saving, talk to us about transferring your subscription to us.New Paragraph

QuickBooks Price Increase

Thu, 04 Mar 2021 01:21:56 GMT

From 1 April 2021

From 1 April 2021, QuickBooks is increasing the cost of data files by $2 per month. They will also be charging $5 per month per employee for payroll.

Discounts For Haslam Clients

As we have done in previous years, where we hold a QuickBooks subscrition on your behalf and you are on an Agreed Price Service Plan, we will not pass on any price increase until your renewal on 1 July 2021. That's an extra three month discount !

We are also helping out our clients by only charging $4 per month per employee for payroll, rather than the full $5 per month per employee retail cost. That's a saving of 20% !

If you're currently paying your own QuickBooks subscription but would like to take advange of these savings, talk to us about transferring your subscription to us.

Planning for seasonal dips in income

Thu, 04 Mar 2021 01:21:53 GMT

Talk to us about planning for seasonality

Seasonal dips in income can be highly challenging when you’re 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’re 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 your business is seasonal such as pool supplies, or a ski gear specialist, you’ll 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?

Forecast your seasonality – it’s vital to know WHEN you’re most likely to experience any seasonal dips. Looking at benchmarking reports for your industry is one way to predict the seasonality in your niche or sector. But you can also use your own accounting data to great effect. Look back through your profit & loss reports and spot where the peaks and troughs have occurred over preceding years.
Charge a premium in peak time – one straightforward approach is to apply premium pricing for your products/services during the busy season. By increasing your pricing, you boost your overall revenue, giving you more working capital to see you through the leaner months when sales and income are at their lowest.
Offer additional peak-time services – offering added extras and other additional service lines during peak time is another way to maximise the season. In the months where customers are most engaged, look to upsell these premium services and offer more value. Satisfied clients will be more inclined to pay for added extras, giving you an increased revenue stream from the same number of customers.
Target other market s – exploring other related markets is another useful tactic. When you’re experiencing downtime, look for other ways to monetise your existing assets, products or services. For example, if you’re a hotel where sales peak in summertime, offer discounted conference space in the winter months to boost revenue.
Diversify your products/services – if one product/service has a known seasonal dip, look at adding an additional product or service to offset this downtime. For example, a a ski resort could promote bike-riding or hiking breaks during the warmer summer months to keep revenue constant. Likewise a pool maintenance firm could establish an outdoor fireplace business for the colder months.
Have a regional e-commerce strategy – If you’re dependent on a small local market, broadening your marketing and e-commerce strategies can help to attract a wider customer base – and bolster sales. Paid advertising through Facebook, LinkedIn or Twitter can easily target new geographical markets, bringing in new customers and giving your revenue a much-needed uplift during seasonal troughs.

If your business is struggling with seasonal dips, and the resulting impact on cashflow, come and talk to us. We’ll 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.

Contractor or Employee?

Thu, 04 Mar 2021 01:21:50 GMT

Contractor or employee? How to get it right

When is a worker an independent contractor or an employee? Plenty of people ask this question as it can expose businesses and individuals to significant risk and costs under tax and employment law.

Sometimes, a person might seek a contracting relationship for perceived tax benefits or the company might want to keep employment flexible. However, by law, it is the nature of the employment relationship that defines whether someone is a contractor or an actual employee. No one can opt out of basic employment standards and entitlements or their statutory tax and superannuation requirements.

So what are the differences between a contractor and an employee? Let’s break it down.

Employees

People working in a contract “of service”, serving the employer under a relevant award, agreement, or employment contract.
Considered part of the business and (generally) told how, where, and when they work.
Dedicate their time and effort primarily to one organisation.
Take no commercial risks and the business is legally responsible for the work done.
Employer provides all or most equipment and systems for doing the work.
Must apply for time off.
Paid by payroll system, with PAYG and any fringe benefits deducted. Eligible for superannuation.
Have all minimum rights under employment laws.

Contractors

People working in a contract “for service”, serving themselves by delivering outcomes to their client(s).
Self-employed, running their own independent business.
Can work freely for a number of organisations (or sub-contract the work out).
Dictate their own time off and may or may not be available for work.
Take commercial risks and are legally responsible for their work.
Use all or most of their own equipment and processes.
Invoice for their work.
Have most workplace rights but different tax, insurance, and superannuation responsibilities.

The ATO has a handy tool you can use to figure out whether someone is an employee or a contractor.

The nature of the employment situation is usually obvious, although project work of fixed duration or finite funding can be complicated. If you’re still not sure or would like to discuss your HR solutions further please contact us .

Why accurate leave management is so important

Wed, 10 Feb 2021 04:49:07 GMT

Managing employee leave might seem like quite a basic task for many businesses - especially smaller ones with only a few employees - and it can be tempting to take a relaxed approach.

But unless you diligently track, manage, and pay leave for every single employee, your company could be at serious risk of making costly errors. Recent, high-profile cases of large Australian employers not staying on top of leave entitlements and payments - including Qantas and Westpac - have highlighted just how expensive mistakes can be. And that’s not to mention the effect poor leave management can have on your operational efficiency.

So let’s look at the prime reasons why you should accurately manage employee leave.

Meet your legal obligations - Under the Fair Work Act 2009, all Australian employers must keep accurate records of the daily hours every employee works and their pay for those hours, as well as the leave accrued, entitled leave, and leave taken. Failure to do so can mean being fined by the Fair Work Ombudsman and/or having to pay backdated leave.
Better leave and holiday planning - managing absences in advance means you won’t be regularly caught short without suitable cover or have to overload your existing team, so the business can continue to meet its obligations and deadlines smoothly.
Reduced costs - paid time-off and accrued leave can have a significant impact on your bottom line and contractors or temps can be expensive. Good leave management systems also make handling leave easier and more accurate, so you can spend that time on more important tasks.
Increased employee confidence - team members who know they’re getting their proper leave entitlements have more confidence and trust in the business, which boosts engagement and motivation.
Reduced absenteeism and presenteeism - taking leave improves people’s work-life balance and promotes good physical and mental health, which helps lower stress, improves focus, and reduces unscheduled days off.

If you need help to setup or review your employee leave, contact us or book an appointment .

Online Services for Business

Tue, 09 Feb 2021 06:05:30 GMT

ATO Business Portal is being replaced with a newer, better service.

Online services for business is made with you, for you. It has been co-designed with business and makes it easier for you to interact with the ATO online to manage your tax and super obligations.

It offers a range of new features such as:

making a payment plan
obtaining copies of income tax returns
quickly navigating between the ABNs you manage using Switch ABN
viewing your communication history with the ATO.
Online services for business can be accessed on multiple devices, including a smart device like your phone or tablet.

The new service is in 'public beta testing', which means you can provide feedback on it. Complete the ‘Give us your feedback’ form located at the bottom of every page within the service.

To log in to Online services for business, use myGovID. If you are new to our online services, you will need to set up your myGovID and link it to your business using Relationship Authorisation Manager.

We understand many businesses are still impacted by the events of 2020 and we want to support you through this time of change.

The Business Portal will be available until later in the year to give you time to change over to Online services for business.

Update your myGovID email address

Tue, 09 Feb 2021 05:49:14 GMT

ATO login app has been improved

If you have the latest version of the myGovID app, you can now update your myGovID email address . Remember this is your personal digital identity, so you should use a personal email address.

JobMaker Hiring Credit: Second JobMaker period now open

Tue, 09 Feb 2021 05:26:14 GMT

Have you hired a new employee?

We are now in the second JobMaker period (7 January to 6 April 2021). Claims for eligible employees taken on during this period, can be made when the second claim period opens on 1 May 2021. Remember, both the employer and their additional employees must meet the eligibility criteria for the period the claim is for.

The JobMaker hiring credit is a wage subsidy paid to employers at a fixed rate. Business owners will receive $200 per week to hire workers between 16 to 29, or $100 a week for workers between 30 to 35. This will be paid in quarterly arrears by the ATO.

Workers will only be eligible if they’re already receiving JobSeeker, Youth Allowance (Other), or the Parenting Payment for at least one of the three months prior to their date of employment.

They also have to work at least 20 hours of paid work to be eligible and is only eligible with one employer at a time.

But employers will have to increase their headcount and payroll to qualify for the scheme, meaning new people must be hired and workers who are already employed at a business don’t qualify.

For more information on the scheme please contact us today and book an appointment or alternatively you can complete your details here .

80¢ per hour work-from-home deduction method extended

Tue, 12 Jan 2021 03:56:46 GMT

The 80¢ per hour shortcut method, introduced in April 2020 in response to COVID-19, will now be in place until 30 June 2021.

This is the third time the Tax Office has chosen to extend the shortcut method, after it was first due to expire at the end of the last financial year, then September 2020, and more recently, at the end of December 2020.

Conversely, the ATO’s updated Practical Compliance Guideline 2020/3 no longer states whether further consideration will be given to extend the latest end date.

The new extension comes as NSW continues to contain an outbreak of COVID-19 infections that began on the Northern Beaches a week before Christmas.

Victoria has since recorded new community transmission cases, with the state government now moving to push back plans for workers to return to the office from next Monday to a week later.

The temporary shortcut method will continue to be supplementary to the 52¢ fixed-rate method and the actual cost method of calculating running expenses, with taxpayers able to choose the appropriate method for their circumstances.

ATO extends JobKeeper deadlines ahead of Christmas, New Year

Mon, 07 Dec 2020 21:57:14 GMT

Employers given longer to enrol, pay and report over holidays

JobKeeper deadlines for the second extension period have now been extended by the ATO ahead of the festive season.

Completion of the December business monthly declaration, for employers to be reimbursed for payments between 23 November 2020 to 3 January 2021, has also been extended from the usual 14th of each month to 28 January 2021.

To account for the New Year weekend, the Tax Office will also allow employers to meet the wage condition for payments between 21 December and 3 January 2021 by 4 January 2021.

From 4 January, the second extension period for JobKeeper will kick in, reducing payment rates to $1,000 per fortnight for those on the Tier 1 rate, and $650 per fortnight for those on Tier 2.

Entities will be required to demonstrate that their actual GST turnover has declined by the requisite shortfall for the December 2020 quarter, with the ATO to make the new decline in turnover form available on its systems from 4 January.

New employers enrolling for the first time, and existing employers, will be required to submit the decline in turnover form by 31 January.

Employers will also be given until 31 January 2021 to meet the wage condition for fortnights starting on 4 January and 18 January 2021.

JobKeeper figures

The new dates come as statistics released by the government show that 450,000 businesses stopped accessing JobKeeper after eligibility was tightened at the end of September.

The number of Australian workers on JobKeeper also fell from 3.6 million recipients at the height of the program to 1.5 million by the end of November.

Around 86 per cent of workers are now on the Tier 1 payment of $1,200 per fortnight, with around 14 per cent on the Tier 2 payment of $750 per fortnight.

Treasurer Josh Frydenberg said the lower-than-forecast take-up of JobKeeper was evidence that economic recovery was well underway in Australia.

JobMaker Scheme Gets Green Light

Wed, 18 Nov 2020 00:11:31 GMT

Receive up-to $200 per week for new employees

The JobMaker hiring credit scheme has officially passed Parliament, giving Australian employers greater incentive to hire younger workers.

JobMaker is designed to boost the employment prospects of 16 to 35 year olds, with the Government estimating it will support around 450,000 jobs.

Like JobKeeper, the JobMaker hiring credit is a wage subsidy paid to employers at a fixed rate. Business owners will receive $200 per week to hire workers between 16 to 29, or $100 a week for workers between 30 to 35. This will be paid in quarterly arrears by the ATO.

Workers will only be eligible if they’re already receiving JobSeeker, Youth Allowance (Other), or the Parenting Payment for at least one of the three months prior to their date of employment.

They also have to work at least 20 hours of paid work to be eligible and is only eligible with one employer at a time.

But employers will have to increase their headcount and payroll to qualify for the scheme, meaning new people must be hired and workers who are already employed at a business don’t qualify.

Treasurer Josh Frydenberg announced the new wage subsidy had passed.

“Youth unemployment was particularly impacted by restrictions imposed as part of the health response to the Covid-19 pandemic, with the JobMaker Hiring Credit specifically designed to encourage businesses to take on additional young employees and increase in employment,” Frydenberg said in a statement.

“The JobMaker Hiring Credit will ensure hard-working Australians and businesses have the support to get back to work and is part of the Government’s Economic Recovery Plan to create jobs, rebuild the economy and secure Australia’s future.”

The scheme will apply for workers hired from 7 October, but employers will have to wait until February 2021 to get the subsidy.

For more information on the scheme please contact us today and book an appointment or alternatively you can complete your details here .

Queensland Small Business Commissioner

Tue, 17 Nov 2020 04:46:48 GMT

The Queensland Small Business Commissioner can help with information, advice, advocacy and mediation

The Queensland Small Business Commissioner (QSBC) is a statutory office holder, temporarily established under the COVID-19 Emergency Response Act 2020. The Commissioner aims to advocate, enable and empower small businesses to help drive economic growth in Queensland.

The QSBC offer a range of services including:

Providing information and advisory serivces to small businesses in Queensland
Assisting with informal dispute resolution to help tenants and landlords resolve commercial lease disputes
Free commercial lease dispute mediation services for eligible leases
Advocating for small businesses across all levels of govenment.

You can find out more about the QSBC on the Queensland Govenment Website .

Small Business Insolvency Reforms

Tue, 17 Nov 2020 04:46:40 GMT

Goverment to make legislative changes, assisting insolvent small businesses.

The Federal Government announced on 24 September 2020 that more insolvency changes will be implemented from 1 January 2021. These reforms include:

a new debt restructuring process to give viable small businesses a better chance of survival;
a new, simplified liquidation process to reduce the cost and time of the winding up process where that is the only option for small business; and
a series of complementary measures, including use of technology and relaxing registration requirements for insolvency practitioners involved in small business restructuring and liquidations.

These reforms are due to commence on 1 January 2021 following expiry of the current COVID-19 insolvency relief measures on 31 December 2020. The changes will impact incorporated businesses with liabilities of less than $1 million and will enable a company to continue to trade under the control of its directors while a debt restructuring plan is developed and voted on by creditors. In short, the new process will involve the following:

a company will appoint an insolvency practitioner as its “small business restructuring practitioner”;
once appointed, unsecured and some secured creditors will be prohibited from taking actions against the company and any personal guarantee/s cannot be enforced against a director or one of their relatives (i.e. a moratorium similar to the current situation involving voluntary administrations);
the company and the ‘small business restructuring practitioner’ will work over a 20 business-day period to develop a plan to restructure the business’s debts and provide supporting documents for creditor consideration. The plan will likely involve a proposal to pay $x in the dollar to unsecured creditors);
during the 20 business-day period, the company will continue to trade (i.e. the small business restructuring practitioner does not take control of the company and the control is not removed from the director);
once a plan is developed, the ‘small business restructuring practitioner’ will circulate the plan and supporting documents to creditors for their approval;
creditors will have 15 days to vote on the plan. If more than 50% of creditors by value endorse the plan, it will be approved and will bind all unsecured creditors; and
if approved, the business will continue to trade and the ‘small business restructuring practitioner’ will administer the plan. If the plan is not approved, the company may then be placed into liquidation or voluntary administration.

The draft legislation has not yet been released and will need to be considered in more detail when that occurs.

In the meantime if you have concerns around the viability of your small business, please contact us .

Tax Cuts - Change Withholding Amounts

Thu, 15 Oct 2020 23:31:44 GMT

The Australian Government has introduced personal income tax cuts that apply from 1 July 2020.

Updated tax tables are now available for you to reflect the tax cuts in employee’s take-home pay.

You must make sure you are withholding the correct amount from salary or wages paid to your employees for pay runs processed in your system from 16th November 2020 onwards.

Payroll software providers will be updating software to implement these tax rate changes. Some payroll software providers may take longer to update their software. Your software provider will keep you updated on these changes.

You don't need to make any other adjustments or refunds.

Any ‘over-withholding’ that occurred prior to updating your payroll software or processes will be included in your employee’s income tax assessment at the end of the year.

You can access the tax tables by going to the ATO website HERE

Budget Boost For Small Businesses

Wed, 14 Oct 2020 23:18:42 GMT

Measures announced as part of 2020-21 Federal Budget that will boost small businesses include:

JobMaker Plan – temporary full expensing to support investment and jobs.
Increase to the small business entity threshold.

The JobMaker Plan: eligible businesses with an aggregated turnover under $5 billion will get an immediate tax deduction for the full cost of new eligible depreciable assets acquired, start to use or installed ready for use between 7:30pm AEDT on 6 October 2020 and 30 June 2022.

For small and medium sized businesses (with aggregated turnover under $50 million), full expensing also applies to eligible second-hand assets.

The existing enhanced instant asset write-off incentive has been extended for 6 months to 30 June 2021 and is available for assets first used or installed ready for use before that date.

Small businesses (with aggregated turnover under $10 million) can deduct the balance of their simplified depreciation pool at the end of the income year while full expensing applies.

The provisions that prevent small businesses from re-entering the simplified depreciation regime for five years if they opt out of the regime will continue to be suspended.

Small Business Entity Threshold: The increase in the small business entity turnover threshold from $10 million to $50 million per annum will expand access to several small business tax concessions.

The increased access to concessions will apply from different start dates so make sure you are aware of when each concession starts for your business.

Pending legislation, from 1 July 2020 newly eligible businesses can immediately deduct:

certain start-up expenses – for example, professional expenses and legal and accounting advice
certain prepaid expenditure where the payment covers a period of 12 months or less and ends in the next income year.

The fringe benefits tax related exemptions for eligible businesses will start from 1 April 2021

The ATO will provide further information on tax concessions applicable from 1 July 2021, as soon as it's available and we will keep you updated viab

Remember, as a registered tax agent, we are here to help you with your tax planning needs.

2020-21 Federal Budget Snapshot

Thu, 08 Oct 2020 23:44:04 GMT

The 20/21 Budget is focused on rebuilding the economy and creating employment by increasing infrastructure spending, bringing forward individual tax cuts, allowing unprecedented tax deductions for eligible capital expenditure and increasing R&D incentives.

The Haslam team has reviewed the budget papers and prepared this snapshot of the major 20/21 Budget announcements.

Personal Tax Cuts

Capital Expenditure

Loss Carry Back

Jobs - Hiring Credit

Jobs - Apprentices & Trainees

Health

Small Business

Welfare Payments

R&D (Research & Development)

FBT (Fringe Benefits Tax)

Superannuation

Infrastructure

The information provided in this article is for general advice only and does not represent, nor intend to be advice. We recommend that prior to taking any action or making any decision, that you consult with an advisor to ensure that individual circumstances are taken into account.

Liability limited by a scheme approved under Professional Standards Legislation.

JobKeeper 2.0 Is Here

Thu, 24 Sep 2020 02:13:42 GMT

The rules for JobKeeper extension have fianally been set. So how do they work?

JobKeeper extension 1

This extension period will run from 28 September 2020 to 3 January 2021.

You will need to show that your actual GST turnover has declined in the September 2020 quarter relative to a comparable period (generally the corresponding quarter in 2019).

NOTE: You can be eligible for JobKeeper extension 1 even if you were not originally eligible for JobKeeper.

If we are already completing JobKeeper reporting for you, we will automatically check if you pass the actual decline in turnover test once your September data is complete. You should attempt to finalise your coding for September as soon as possible after the end of the month.

If you are completing your own JobKeeper reporting or you think you may be eligible for JobKeeper for the first time, use our JobKeeper form to request our help .

The rates of the JobKeeper payment in this extension period are:

Tier 1: $1,200 per fortnight (before tax)

Tier 2: $750 per fortnight (before tax).

Tier 1 applies to employees who pass the 80-hour threshold. Employees who don't pass this, will only paid at the Tier 2 rate.

JobKeeper extension 2

This extension period will run from 4 January 2021 to 28 March 2021.

You will need to show that your actual GST turnover has declined in the December 2020 quarter relative to a comparable period (generally the corresponding quarter in 2019).

NOTE: You can be eligible for JobKeeper extension 2 even if you were not eligible for JobKeeper extension 1.

If you are completing your own JobKeeper reporting or you think you may be eligible for JobKeeper for the first time, use our JobKeeper form to request our help .

The rates of the JobKeeper payment in this extension period are:

Tier 1: $1,000 per fortnight (before tax)

Tier 2: $650 per fortnight (before tax).

Tier 1 applies to employees who pass the 80-hour threshold. Employees who don't pass this, will only paid at the Tier 2 rate.

Actual decline in turnover test

The actual decline in turnover test is a new concept for the JobKeeper extensions and is not the same as the original decline in turnover test. The differences are:

it must be done for specific quarters only
you must use actual sales made in the relevant quarter, not projected sales, when working out your GST turnover
you must allocate sales to the relevant quarter in the same way you would report those sales to a particular business activity statement if you were registered for GST.

The 80-hour threshold

The 80-hour threshold is another new concept for the JobKeeper extensions. Your employee will satisfy the 80-hour threshold if, in their 28-day reference period, the total of the following is 80 hours or more:

actual hours they worked
hours they were on paid leave
hours they were paid for absence on a public holiday.

If your eligible employee satisfies the 80-hour threshold, you can claim the tier 1 (higher) payment rate for them. If they do not meet the 80-hour threshold, you can only claim the tier 2 (lower) payment rate for them.

There are different options for the 28-day reference period that you must use to test whether your employee satisfies the 80-hour threshold.

Your 28-day reference period or periods are based on when your pay cycle ends and therefore won’t be the same for all employers or employees.

Use either:

the pre-March period which is the 28 days which finish on the last day of the last pay cycle that ended before 1 March 2020, or
the pre-July period which is the 28 days which finish on the last day of the last pay cycle that ended before 1 July 2020.

Your pay cycle for an employee may not be the same as the period between the dates you actually pay them. For example, the amount you pay an employee each Friday may be for the hours they worked in a week ended on the previous Wednesday. In this case your employee's pay cycle is the week ended on Wednesday.

Your employee only needs to satisfy the 80-hour threshold in one of the 28-day reference periods. If they satisfy it in one reference period, you do not need to determine if they satisfy it in other reference periods.

If your pay cycle is longer than 28-days for your employees (for example monthly), you will need to perform a pro-rata calculation.

If you have a monthly pay cycle for your employees, your employees will meet the 80-hour threshold if their hours worked, hours of paid leave and hours of paid absence on public holidays are at least the following:

I f you have any further questions about JobKeeper, please use our JobKeeper form to request our help .

Upload Your Tax Documents

Wed, 23 Sep 2020 02:16:22 GMT

Use our Tax Time Upload Portal to save time and avoid contact.

This year, we introduced a new upload feature to allow you to submit your tax time documents to us without the need for a face-to-face appointment.

We're pleased to report that a number of clients have used this option and are very satisfied with the process.

While we love to meet with everyone each year, these are exceptional times and minimising contact is a priority for everyone. So if you'd like to get your tax done quickly, easily and without the need to visit us, give our Upload Portal a try .

Of course if you really can't resist coming to see us, we are still happy to facilitate appointments at our office.

Centrelink Gets Payroll Data From ATO

Mon, 21 Sep 2020 00:41:18 GMT

A new data-matching program will see 460 million pay events shared with Centrelink this year

Up to 12 million Australians on Centrelink will now have their real-time salary and wage data shared between the ATO and Services Australia under a new data-matching program.

The ATO has now commenced the sharing of Single Touch Payroll (STP) data with Services Australia, formerly the Department of Human Services.

According to a gazette notice published this week, the data will help Services Australia identify where there is a significant difference between STP income and the income estimate the person has provided to Services Australia.

It will also bolster Services Australia’s debt recovery process by re-establishing contact with customers it has since lost contact with.

The new data-matching program will also help Services Australia prefill employer data on its online services, and support the timely confirmation of employment and establishment of child support employer withholdings.

The exchange of information between the ATO and Services Australia is set to cover approximately 10 million to 12 million Australians until the end of June 2021, when the program will be reviewed by both agencies.

These individuals will be identified by Services Australia providing information about its customers to the ATO, and the ATO matching that information against ATO records to locate a customer match.

Individuals receiving Centrelink payments — including JobSeeker, family assistance payments and child support payments — will be among those whose information will be shared with the ATO.

Where there is a match with the ATO’s records, the Tax Office will then provide Services Australia with STP data including year-to-date salary and wage details, including pay period details.

The exchange of information will take place on a daily basis, with 460 million pay events to be shared over the 2021 financial year.

According to Services Australia, it will not solely rely on the ATO’s STP data to make decisions affecting customers’ eligibility, entitlements or child support assessments, and will instead reach out to individuals or a reliable secondary source of data for confirmation.

Services Australia will notify the ATO when an individual is no longer a client of interest, and the ATO will cease sharing STP data for that individual, according to the protocols dictating the data-matching program.

The latest data-matching program comes after both the ATO and Services Australia embarked on a similar program earlier this year to verify individuals’ eligibility criteria for JobKeeper payments, the cash-flow boost and the early access to superannuation.

Wage theft now a crime in Queensland

Wed, 09 Sep 2020 06:16:09 GMT

Employers deliberately underpaying staff now face criminal prosecution

Employers found to be deliberately stealing from their workers will now face jail time under new laws passed in Parliament today.

Under the new laws, the maximum penalty for stealing by an employer will be the same as the current maximum penalty for ‘stealing as a clerk or servant’, which is 10 years’ imprisonment.

The laws follow a parliamentary inquiry which found that wage theft affects as many as one in four Queenslanders and costs workers $2.2b per year in unpaid wages and super.

If you belieive your employer is underpaying you, you can contact us for assistance.

If you have employees and want to make sure your pay rates are right, check out our Payroll Review service.

Celebrating 35 Years

Sat, 05 Sep 2020 05:44:23 GMT

2020 is tough, but Haslam Consulting & Accounting are proud to be celebrating 35 years in business.

Our firm came from humble beginnings, starting as a sole practitioner office in downtown Toowoomba in 1985.

In those days accounting was a completed without the aid of any computers. Ledger books, cheque butts, pencils and calculators were the order of the day. Even assessment notices sent back from the ATO were hand-written.

Our founder, Sheryl Haslam worked hard to build a client base by focusing on careful attention to detail and fostering personal relationships with each and every client.

Over the three and a half decades later, technology and the taxation system have undergone massive transformation. Today, the compliance burden is larger than its ever been, but luckily we now have computers to help!

While the tools we use to do accounting today are vastly different, our focus on our clients and the quality of our work has never changed.

Borrow Up To $250,000 with no repayments for 6 Months

Mon, 31 Aug 2020 23:18:29 GMT

Get Back To Business with Reckon Loans

Until the end of September, the team at Reckon Loans powered by Prospa, are offering a helping hand for your business to get back to business with a loans of up to $250,000.

With no repayments for the first 6 months and terms of up to 24 months on the following Back to Business products, they'll get some breathing space so they can focus on getting back to business.

Back to Business Loan up to $250,000

A lump sum of up to $250,000 to cover one-off cash flow needs.

Back to Business Line of Credit up to $250,000

Ongoing access to funds up to $250,000 to manage cash flow.

JobKeeper Now Available For New Employees

Mon, 17 Aug 2020 05:14:39 GMT

A legislative instrument was registered on 14 August 2020 amending the JobKeeper rules to allow businesses to claim the subsidy in respect of new employees. The changes apply to JobKeeper fortnights beginning on or after 3 August 2020.

Under the changes, the reference date for assessing which employees are eligible for the JobKeeper payment is now 1 July 2020.

Another very positive change relates to the ability for an employee to re-nominate with a new employer (which was previously not allowed). Broadly, if an individual was a 1 March 2020 employee of another entity but is not employed by that entity at any time from the start of 1 July 2020, then the individual is now permitted to give a nomination notice to a new employer. The same applies for eligible business participants, as applicable.

The ATO has also confirmed that for fortnights commencing on 3 August and 17 August 2020, employers will have until 31 August 2020 to meet the wage condition for all new eligible employees who are now included in the JobKeeper scheme under the 1 July 2020 eligibility test.

For further information, please refer to:

Coronavirus Economic Response Package (Payments and Benefits) Amendment Rules (No. 7) 2020

ATO – JobKeeper key dates

TPAR Includes New Industries for 2020

Mon, 10 Aug 2020 09:29:45 GMT

If your business provides road freight, IT or security and surveillance services, you need to submit a TPAR.

The taxable payments annual report (TPAR) reports to the ATO information about payments made to contractors for certain services.

TPAR for the building and construction industry has been in place for some years. In recent years, cleaning services, courier services and some government entities have been added to the system.

This year, taxable payments reporting was expanded to include three new industries: road freight services, information technology services, and investigation or surveillance services.

Contractors include subcontractors, consultants and any other independent contractor who is not an employee.

Essential Information Included in the TPAR

Contractor ABN
Contractor name
Contractor address
Total for invoices relating to services only or a combination of services and materials
Total GST included
Business to business transactions only
TPAR is based on invoices paid from 1 July to 30 June (do not include unpaid invoices)
If the business provides mixed services, then if payments to contractors total 10% or more of GST turnover in any of the required industries the business is required to report.

Road Freight Services

Road freight includes transportation of goods by road, renting of trucks with drivers, vehicle towing, furniture removals, log haulage and truck hire (with driver) services.

Note that if the business provides services including road freight and courier services and if the total of both services equals 10% or more of GST turnover, the business must submit a TPAR. Road freight and courier services are treated as one grouping for TPAR.

Information Technology Services

Information technology (IT) services includes a large range within this industry, including software development, computer facilities management, designing computer or network systems, programming, installation software support and more.

Security, Investigation or Surveillance Services

There is also a wide range of services within the security industry that must be reported, including patrolling, protecting, guarding, investigation, surveillance, crowd control, alarm monitoring and armoured car services.

First Report This Year

This is the first year that businesses in these newly included industries are required to submit a TPAR. Most accounting software programs include a means of preparing the TPAR from within the software, once all the required details about contractors paid throughout the year have been entered.

The first report for the new industries is due by 28 August, the same due date for existing industries already required to submit a TPAR.

Unsure if You Should Complete a TPAR?

If your business offers road freight, IT or security services, either as the main type of income or as part of your business mix, talk to us about the contractors you pay.

Check the ATO taxable payments annual report webpage for full details of new and existing industries and all the services that must be reported.

We can assist in setting up your software for correct reporting of contractors for TPAR and review the report before submitting to the ATO.

Tax Time Tips for Individuals

Mon, 10 Aug 2020 09:29:44 GMT

Are you making the most of your allowable tax deductions?

Are you capturing all your work-related deductible expenses to make the most of your tax return? Individuals can claim for general work-related expenses as well as occupation-specific expenses and working from home. Book a time now - we’ll help maximise your return.

Income

Wages and salaries from employment

Pensions, annuities or government payments such as JobSeeker or JobKeeper.
Investment income including interest earned and dividends paid.
Business or hobby income.
Foreign income.
Crowdfunding income.
Sharing economy income such as Uber or Airbnb.
Any other income such as prize money, compensation or insurance payments.

You will need:

bank statements that show interest income;
proof of earnings from other sources such as crowdfunding or share economy platforms;
records of business or hobby income;
records of government payments received;
and records of any other payments received from overseas sources, prize winnings, insurance or investments.

Tax Deductions

Expenses you may be able to claim

Vehicle and travel expenses – make sure you have a travel diary to record details of trips taken for your employment.
Clothing, laundry and dry-cleaning expenses – you can claim for occupation specific clothing, uniforms and protective gear.
Home office expenses – there are special rules this year for employees working from home because of COVID-19. You will need records of the hours you have worked from home to claim the ATO special rate.
Self-education expenses – some education expenses that relate to your current employment are claimable.
Tools and equipment – if you buy gear to help you in your job, these may be claimable. Small tools of trade, protective items, professional references and laptops are some examples of equipment 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 fact 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 talk about tax and we’ll make sure you maximise your allowable tax deductions this year.

JobKeeper 2.0 Update

Mon, 10 Aug 2020 09:29:42 GMT

Government to ease JobKeeper criteria

The new guidelines for the JobKeeper extension will begin on September 28 with more businesses and workers will now qualify for the government payments with these updates.

Treasurer Josh Frydenberg has announced businesses will only need to show that their GST turnover had fallen over one quarter, instead of multiple, to be eligible for the scheme's extension.

Workers will also qualify if they were employed on July 1, rather than March 1.

The initial JobKeeper will finish on September 28, with businesses and employees needing to apply for the extension.

The Government initially outlined the JobKeeper extension guidelines on July 21, but says it needs to extend its criteria after the Victoria Government implemented stricter lockdowns across the state.

Under the previous guidelines, a business needed to record a loss in the June and September quarters.

Mr Frydenberg has blamed the stage 4 restrictions in Melbourne, and the wider restrictions across Victoria, for the Federal Government changing the scheme's extension.

"The combined effect of the economic deterioration in Victoria, which will see more firms needing to rely on JobKeeper, and the changes we are making to the program, will see the cost of JobKeeper increase by around $15.6 billion," he said.

"The introduction of stage 4 restrictions by the Victorian Government will have a severe economic impact on the Victorian and Australian economy."

The changes will also affect businesses who will apply for the second extension of JobKeeper. The second extension will begin on January 4 next year.

Under the previous guidelines, a business would have needed to record an actual GST turnover loss for the June, September and December quarters of this year.

Mr Frydenberg said a business would now need to show a loss for only the December quarter to qualify for the scheme in January.

These guidelines also affect non-profit organisations.

Shadow Treasurer Jim Chalmers said the changes were a "step in the right direction".

"To the extent that they've relaxed some of the eligibility criteria, that's a welcome step. But there are other things which trouble us in the changes that the Government announced," he said.

"And we still remain concerned that a lot of people are still left out of JobKeeper."

Prime Minister Scott Morrison described the revised guidelines as "doing whatever it takes".

"Our response is to get the right support to all those Australian families, workers and businesses that need us, as these circumstances change," Mr Morrison said.

"This means more support for more workers and more businesses for longer, as we battle this latest Victorian wave."

Employee eligibility will also be extended, with a worker qualifying for payments if they have been with their workplace since at least July 1, instead of the March 1 deadline initially slated.

New employees will be eligible for JobKeeper payments dating back to August 3.

If you received an email from us in recent weeks about eligibility under the original JobKeeper 2.0 criteria, the contents may now be incorrect. We will contact all of our clients who are receiving JobKeeper support in coming weeks to update them about ongling eligibility.

ATO Warning letters this week

Mon, 10 Aug 2020 09:29:39 GMT

ATO to send 860,000 warning letters this week

Australia’s businesses have until 7 September 2020 to pay previously unpaid superannuation or face harsh penalties, the Australian Tax Office is warning.

Around 860,000 businesses are expected to receive letters from the tax man this week reminding them of their superannuation obligations to both current and former staff.

If they choose to take up the amnesty, they will need to pay all of the previously unpaid super or agree to a payment plan. The ATO estimates workers are owed $2.3 billion in unpaid super.

“Super is a form of deferred wages and every bit as important to be paid, and paid in full,” said Assistant Minister for Superannuation Jane Hume.

“The super guarantee amnesty allows employers a one-off opportunity to come forward, pay or put a plan in place to pay, and set things right without facing financial penalties from the tax office.

“If you are in any doubt, it is vitally important that you talk to your tax agent or the ATO today; the amnesty expires in a month and it will take time to verify the amount of any unpaid super and pay it or put a payment plan in place.”

Businesses that don’t take up the amnesty will still need to pay the entire amount with 10 per cent interest, along with a $20 administration fee per employee per quarter, and they are also unable to deduct any of the payments. On top of that, they face a maximum penalty of up to 200 per cent of the amount owed.

“To qualify for the amnesty, employers have to come forward voluntarily, without direct prompting from the ATO and agree to pay all employee entitlements plus interest,” Australian Small Business Ombudsman Kate Carnell said.

“Most small businesses already do the right thing, with 95 per cent complying.”

According to Industry Super Australia, one-in-three workers, or around 2.85 million Australians are being ripped off by nearly $6 billion in super.

Industry Super said it’s easy for workers to miss superannuation payments as they’re only required to be paid every quarter.

“The only way to stop a third of Australia’s workforce having their super stolen is for the Parliament to change the law and make super payable on payday,” Industry Super chief executive Bernie Dean said last year.

“Australians rightly expect to be paid their legal super entitlement. The fact that one in three workers are being robbed of their super each year in this day and age is extraordinary and must be fixed.”

Pandemic Leave Payment

Mon, 10 Aug 2020 09:29:37 GMT

New payment for people who have to self-isolate

Prime Minister Scott Morrison has announced a $1,500 pandemic leave disaster payment for those who have to isolate for 14 days but have no more sick leave available to them.

The government will provide these payments to those who are ineligible for JobKeeper or JobSeeker, including those on short-term visas who are ineligible for Commonwealth payments.

The pandemic leave payment will only be made available to Victoria at this stage because it has been declared a state of disaster.

“If another state were to be in a position, and God forbid they were, that there was a disaster of the scale that we’re seeing in Victoria, then a disaster payment of this nature, of pandemic leave, would be entered into, but that would be done on the same basis of what’s been, will be established with Victoria,” Mr Morrison said.

“We will make sure that everyone else who finds themselves in this situation and they don’t have that leave available to them through their sick leave because it’s been exhausted will get a $1,500 payment for that fortnight.”

Government extends COVID-19 early access to super

Fri, 24 Jul 2020 06:11:26 GMT

Australians adversely financially affected by COVID-19 will now be given more time to apply for the early release of superannuation.

The government’s economic and fiscal update last week has revealed that applications for the COVID-19 early release of super scheme will now be extended to 31 December.

Eligible citizens and permanent residents of Australia and New Zealand previously had up to 24 September to submit an application through ATO online services in myGov.

The scheme has been in place since 20 April, allowing eligible applicants to withdraw up to $10,000 in the first tranche of payments up to 30 June, followed by a further $10,000 from 1 July.

While early access to super has always been a feature for those experiencing severe financial hardship or accessing on compassionate grounds, the COVID-19 measure allowed individuals to apply as long as they experienced a reduction of working hours by 20 per cent or more.

Interest in the scheme has been strong, with $25.3 billion in super withdrawn since inception of the scheme in April.

A total of 2.8 million applications to withdraw funds for the first time have since been received.

Repeat applications to access super from 1 July have also continued to show strong take-up, with 818,000 applications put forward in the two weeks to 12 July.

The average payment made since inception sits at $7,718, and rises to $8,755 when considering repeat applications only.

The ATO has since warned that it will take a closer look at applications to ensure the integrity of the scheme is upheld.

It has now acquired the data of 3 million Australians from Services Australia to verify individuals’ eligibility criteria for the early release of super, JobKeeper payments and the cash-flow boost.

Behaviours that will attract the Tax Office’s attention include applying where there is no change to the applicant’s regular salary and wage or employment information, artificially arranging their affairs to meet the eligibility criteria, and withdrawing and recontributing super for a tax advantage.

The ATO will also take a dim view of those who apply for the early release of super in order to obtain a tax benefit — such as withdrawing and recontributing super to claim a tax deduction — and may look to apply Part IVA where necessary.

JobKeeper 2.0 payments, eligibility revealed

Fri, 24 Jul 2020 05:56:49 GMT

JobKeeper payments continue beyond September, with rates reduced and eligibility tightened.

Prime Minister Scott Morrison and Treasurer Josh Frydenberg have announced that the current $1,500 per fortnight JobKeeper payment will be reduced to $1,200 per fortnight from 28 September, and $750 per fortnight for employees working less than 20 hours a week.

From 4 January, the rate will again fall to $1,000 per fortnight, and $650 for people working less than 20 hours a week.

The program will run to 28 March 2021, at a further cost of $16 billion, taking the entire JobKeeper program to $86 billion.

The announcement comes after Treasury released a snapshot of its JobKeeper review findings earlier, revealing that up to one in four of the 3.5 million workers currently covered under the program were earning $550 more than they would ordinarily.

New eligibility tests

Treasury had also argued for a fresh eligibility test for businesses looking to remain on JobKeeper beyond September.

Businesses will still be required to demonstrate the required reduction in turnover- 30 per cent for businesses with turnovers of $1 billion or less, 50 per cent for those with turnover of more than $1 billion, and 15 per cent for ACNC-registered charities.

However, the government will now require businesses to reapply the tests for the June and September quarters to be eligible for JobKeeper 2.0 beyond September.

“Employers will need to demonstrate that they've met the relevant decline in turnover in both the June and September quarters to be eligible for the JobKeeeper payment in the December quarter,” said Mr Frydenberg.

“Employers will need to demonstrate that they have met the relevant decline in each of the previous three quarters ending on 31 December 2020 to remain eligible for the payment in the March quarter 2021.”

While there are currently 3.5 million workers covered under JobKeeper, Treasury expects the new eligibility rules to see the figure fall to just 1.4 million workers for the December 2020 quarter, before dropping to 1 million workers in the March 2021 quarter.

For our clients currently on JobKeeper

You do not need to do anything at this stage. We will check whether you meet the June decline in turnover test when we do your next lot of monthly reporting.

If you meet the June decline in turnover test we will advise you, and will re-check your turnover in September.

If you do not meet the June decline in turnover test we will advise you that your JobKeeper will end on 28 September.

Please Don't Send Us Your Income Statements

Fri, 24 Jul 2020 05:36:09 GMT

There's no need to send your income statements to us. We will get them directly from the ATO.

As most people are now aware, the way employers report to employees is changing. The new Single Touch Payroll (STP) regieme means that Income Satements on myGov have replaced PAYG Payment Summaries given out by employers.

Some clients have been printing these Income Statements from myGov to send to us. There is no need to do this. We can access your Income Statments directly from the ATO.

Importantly, your Income Statement contains your Tax File Number (TFN) when printed. TFNs should never be sent via email for security reasons.

Instead, just check myGov to be sure that your Income Statement is finalised, then let us know your tax is ready to be done. We will get your Income Statement directly from the ATO.

You can read more about Income Statements on the ATO's website .

You can read more about keeping your TFN safe on the ATO's website .

Finalise Your Payroll With STP

Mon, 29 Jun 2020 23:12:01 GMT

STP changes the way you finalise your reporting

Reporting through Single Touch Payroll (STP) requires changes to your end-of-financial-year (EOFY) processes.

You'll no longer need to provide payment summaries to your employees or lodge a payment summary annual report for information you've already reported and finalised through STP.

Advise your employees you won’t be giving them a payment summary because they will now get their new income statement in their ATO online account via myGov or through their tax professional.

Encourage your employees to check their personal details with you and in ATO online via myGov. Out-of-date or incorrect details may prevent their information from appearing in their ATO online account.

You must make a finalisation declaration for each employee after your last payment for the financial year. For the 2019–20 financial year the finalisation declaration deadline is:

31 July if you employ 19 or fewer employees
14 July for businesses with 20 or more employees.

The sooner you finalise, the sooner the income statement will display as 'tax ready' in your employees’ ATO online accounts and be ready to use in their tax returns.

If you have ‘closely held (related) payees’, you may have a later due date for those payees.

Before you finalise, be sure that all pays are completed and your Payroll Clearing or Wages Payable liabilities are zero.

Annual Award Increases

Tue, 23 Jun 2020 06:20:28 GMT

Minimum wages increased 1.75%, but not everyone on 1 July

The Fair Work Commission has conducted its annual review and announced a 1.75% increase to minimum wages, however not all employees will receive the new ammount from 1 July.

Generally wage increases take effect from 1 July each year, however due to the impact of COVID-19, the Fair Work Commission has staggered the starting dates for increased wages this year.

Group 1 will see a wage increase as at 1 July 2020. These include workers covered by an award that has been the least affected by the pandemic such as the Aged Care, Nurses and Children’s Services Awards.

Group 2’s wage increase will commence from 1 November 2020, which include workers from the building and construction industries.

Group 3 includes workers covered by an award who have been significantly affected by the pandemic. These include the hair and beauty, restaurant and hospitality awards. The wage increase for Group 3 will apply from 1 February 2021.

You can see the full list of awards and start dates on the Fair Work Website .

IPA Member Awards 2020

Mon, 22 Jun 2020 23:27:45 GMT

We have been nominated for IPA Member of the Year and Practice Of The Year. Now we need you!

Each year, the Institute of Public Accountants (IPA) recognises outstanding service with its Member of the Year and Practice of the Year titles.

It's an honour to be nominated in both categories for 2020.

Please help us to achieve these titles by endorsing our nominations:

Small Business Adaption Grant Program Round 2

Tue, 16 Jun 2020 01:34:36 GMT

The Queensland Government is extending the Small Business COVID-19 Adaption Grant Program. As part of Stage 2 of Queensland's Economic Recovery Strategy – Unite and Recover for Queensland Jobs, up to $100 million is being made available to deliver a second round of grants, with half of this funding specifically earmarked for regional small businesses located outside of South East Queensland.

Round 2 will open on 1 July 2020.

The objective of this program is to support small businesses subject to closure or highly impacted by the coronavirus (COVID-19) shutdown restrictions announced by the Queensland Government, to adapt and sustain their operations, and build resilience.

The program aims to see small and micro businesses:

prepare for the safe resumption of trading in the post COVID-19 recovery
continue to meet operating costs
access digital technologies to rebuild business operations and transition to a new way of doing business
respond to online opportunities, where possible, to sustain employment and maintain potential for longer-term growth
upskill and reskill business owners and staff to benefit from new technologies or business models
embrace business diversification to adapt and sustain operations
create or retain employment.

Regional and SEQ funding available

The program is available to eligible businesses throughout Queensland. For round 2, funding is being equally divided between regional Queensland and South East Queensland (SEQ).

South East Queensland businesses

When applying for round 2, you are a South East Queensland (SEQ) business if your principal place of business is located in 1 of the following local government areas:

Brisbane City Council
City of Gold Coast
Ipswich City Council
Lockyer Valley Regional Council
Logan City Council
Moreton Bay Regional Council
Noosa Shire Council
Redlands City Council
Scenic Rim Regional Council
Somerset Regional Council
Sunshine Coast Council
Toowoomba Regional Council.

Regional businesses

You are a 'regional business' if your principal place of business is any other local government areas within Queensland that is not identified as a SEQ location.

Use the eligibility tool to find out if your business is in SEQ or a regional local government area.

Eligibility Criteria

To be eligible, your business must:

have been subject to closure or otherwise highly impacted by current shutdown restrictions announced by Queensland's Chief Health Officer on 23 March 2020
demonstrate you have experienced a minimum 30% decline since 23 March 2020, over a minimum 1-month period due to the onset and management of COVID-19
employ staff and have fewer than 20 employees at the time of applying for the grant (employees must be on your payroll and does not include the business owner(s))
have a valid Australian Business Number (ABN) active as at 23 March 2020
be registered for GST
have a Queensland headquarters
have an annual turnover over $75,000 for the 2018–19 or 2019–20 financial year, or you can provide financial records that show this will be met for recently started small businesses
have a payroll of less than $1.3 million
not be insolvent or have owners or directors that are an undischarged bankrupt.

Only 1 application per round will be accepted from an individual ABN or a financial beneficiary of a business.

Successful applicants from round 1 of this program cannot apply for funding under round 2.

If you have submitted a round 1 application but haven't heard back yet, you are eligible to apply for round 2.

Use the eligibility tool to find out if your business is eligible to apply.

Read the frequently asked questions for more information regarding eligibility.

What will be funded

The available grant amount is a minimum of $2,000 and up to a maximum of $10,000 per eligible small or micro business.

In recognition of the significant impacts of COVID-19 on small businesses, the funding can be used towards the following:

financial, legal or other professional advice to support business sustainability and diversification
continuing to meet business operational costs including utilities, council rates, rent, telecommunication charges, insurance fees, licensing or franchise fees
strategic planning, financial counselling or business coaching aligned to business development and diversification
building the business through marketing and communications activities (e.g. content development – web pages, mobile apps, visual and audio media etc.)
digital/technological strategy development
digital training or re-training and up-skilling employees to adapt to new business models
capital costs associated with meeting COVID-19 safety requirements
specialised digital equipment or business specific software to move business operations online (e.g. logistics program for online ordering).

Note: Grant funds can be used towards any of the above activities occurring from 23 March 2020 onwards , keeping in mind the project must be completed within a maximum of 6 months from the date of approval.

What won't be funded

Non-eligible activities

These activities will not be funded under this program:

applications with a total cost less than $2,000 – all your proposed activities or quotes and invoices must be eligible and be a total of $2,000 or more
business costs otherwise supported by other Queensland and Commonwealth Government financial assistance measures
salaries or wage expenses for your employees, including superannuation or WorkCover
services delivered in-kind (grant funding will only cover services paid for via a financial transaction)
purchase of business assets such as stock or fleet vehicles/machinery
fees for services and/or goods provided by related parties (such as companies with common shareholdings or directorship with the applicant, and employees or immediate family of the applicant)
direct-selling businesses (where sales of another business' goods or services are made in the customer's home, work or other meeting place through methods such as party plan and network marketing)
goods or services purchased, or any payments made, prior to 23 March 2020.

All invoices or quotes from suppliers will be checked to determine if they are genuine (e.g. supplier has as active ABN and the invoices or quotes have not been altered in any way).

Applying small and micro businesses must meet the eligibility and assessment criteria to be considered for funding.

How to apply

Round 2 will open on 1 July 2020

This funding round may only be open for a short period due to demand and will close when the funding allocation is anticipated to be exhausted.

Regional Queensland and South East Queensland will have independent funding allocations and may close at different times.

Get ready to apply by completing the following steps.

Check your eligibility to:

find out if you are eligible to apply for round 2
confirm your business location
subscribe to be alerted when round 2 opens.

Read the application guidelines, frequently asked questions (FAQs) and application tips.
Prepare your application and supporting documentation ready to submit when round 2 opens.
After round 2 opens, return here to lodge an online application (only available after the round opens).

Assessment Process

In addition to meeting the eligibility criteria, applications will be assessed against the following:

funding availability – applications will be processed on a 'first come, first served' basis, and therefore not all applications will be successful
submission of a complete application form, with all requested supporting documentation included
value for money, as determined by the Queensland Government.

Grant payments

Funding will be paid upon approval of your grant application. Applicants will have 6 months to complete their projects and must acquit the total amount of funding received.

Grant recipients may be subjected to a random audit by the Queensland Government (or its representatives) to ensure that the information provided is true and correct. Where it is found that false or misleading information has been provided, penalties may apply, including refunding some or all of the grant funding.

Further information

For more information about the program and application process, phone the QLD State Goverment on 1300 654 687 or email adapt@desbt.qld.gov.au .

View the 2019–20 Small business grants schedule to help plan your applications for grant rounds.

Article Source: Business.qld.gov.au

What us to help?

If you'd like our assistance to complete the grant application, provide your details below and we'll be in touch:

PAYGI & GST Indexation Frozen

Mon, 15 Jun 2020 06:16:40 GMT

PAYGI & GST Instalments will not be indexed in 20/21

To assist cashflow for business and individuals, the government has moved to legislate the suspension of indexation of tax instalments, which will affect an estimated 2.2 million taxpayers paying PAYG income tax instalments, and around 81,000 taxpayers paying GST instalments in 2020–21.

Historical gross domestic product (GDP) outcomes are normally used to index a range of instalment amounts annually to reflect anticipated income growth. However, the GDP adjustment factor for the 2020–21 income year will be reduced to nil.

The GDP adjustment factor is applied by the commissioner to work out the amount of PAYG instalments payable by a taxpayer in certain circumstances.

The reduced GDP adjustment factor will also be used to work out the GST instalments payable by small-business entities in the 2021 income year.

Extension to $150,000 Instant Asset Write-off

Mon, 15 Jun 2020 03:40:32 GMT

Legislation introduced to extend deadline to 31 December 2020

Treasury Laws Amendment (2020 Measures No. 3) Bill 2020 has now been tabled before the House of Representatives and includes retrospective amendments to the Boosting Cash Flow for Employers (Corona virus Economic Response Package) Act 2020.

The bill includes the extension of the $150,000 instant asset write-off threshold for a further six months until 31 December 2020, as announced by the government last week.

The extension will allow businesses with an aggregated turnover of less than $500 million to claim an immediate deduction for depreciating assets that cost less than $150,000 and are first used or installed ready for use for a taxable purpose on or after 12 March 2020 and by 31 December 2020.

In addition, the bill also extends the temporary suspension of the five-year lock-out rules which can apply when a small-business entity chooses not to use the simplified depreciation rules. The suspension of these rules will be extended to 30 June 2021.

Take A Moment - Feel Good Friday

Fri, 12 Jun 2020 04:35:59 GMT

How to Meditate

Meditation is a simple practice available to all, which can reduce stress, increase calmness and clarity and promote happiness. Learning how to meditate is straightforward, and the benefits can come quickly. Here, we offer basic tips to get you started on a path toward greater equanimity, acceptance and joy. Take a deep breath, and get ready to relax.

The Basics

Setting aside time for formal meditation is an important way to establish a routine and get comfortable with the practice. Even just a few minutes a day can make a big difference.

“Some people complain about taking time out of their day,” said Atman Smith, who teaches meditation to underserved communities in Baltimore. “Practice is important though. It’s a tool you can use to bring yourself back to the present in stressful situations.”

But we shouldn’t stop being mindful when we stop meditating. “The purpose of mindfulness meditation is to become mindful throughout all parts of our life, so that we’re awake, present and openhearted in everything we do,” said Tara Brach, a popular meditation teacher based near Washington, D.C. “Not just when we’re sitting on the cushion.”

Mindfulness meditation isn’t about letting your thoughts wander. But it isn’t about trying to empty your mind, either. Instead, the practice involves paying close attention to the present moment — especially our own thoughts, emotions and sensations — whatever it is that’s happening.

Mindfulness Meditation Practices

You can practice mindfulness meditation on your own anytime and anywhere. But listening to basic guided meditations can also be helpful, especially when getting started. Instructions from an experienced teacher can help remind us to come back to the present moment, let go of distracting thoughts and not be so hard on ourselves.

Here are four guided meditations you can listen to that will help you remain in the present moment. Choose the one that’s the right length for you: One minute is a great place to start but also good if you simply don’t have a lot of time. If you’re more experienced or ready for an extended mindfulness session, try the 4 & 10 minute sessions. You can download these tracks and listen to them when you’re ready to meditate.

Source: NY Times By David Gelles

Hardship Payments for workers with COVID-19

Thu, 11 Jun 2020 00:28:59 GMT

$1,500 payment available to workers who contract COVID-19

Support is now available for Queensland workers who test positive for COVID-19 and have no access to paid sick leave.

The Premier said while many Queenslanders have access to paid sick leave or pandemic leave there were still many Queenslanders who are left out, particularly those in casual employment.

“Unfortunately, there are many casually employed Queenslanders whose jobs are vulnerable to the COVID-19 pandemic,” Ms Palaszczuk said.

“If a casually employed Queenslander who is not eligible for the Federal Government’s JobKeeper payment contracts COVID-19, they will have no access to an income during their time away from work.

“Today I am announcing a Hardship Payment to help these Queenslanders.

“This will also be available to any employee who has exhausted their sick leave or pandemic leave entitlements, and tests positive to COVID-19.

“This initiative is all about keeping Queenslanders safe and healthy – ensuring workers are supported to stay home when required and keep their customers and work colleagues safe and healthy.

“This payment will provide affected workers with a one off $1500 payment to cover their unpaid sick leave.”

Minister Fentiman said to be eligible for this payment you must have be employed, test positive to COVID – 19 and have no access to paid sick leave or pandemic leave.

“We are trying to ensure that Queenslanders aren’t out of pocket while they quarantine themselves. This will help keep all Queenslanders safe,” Ms Fentiman said.

“While contraction rates are currently low, should there be a further outbreak, this payment will be in place.”

The Department of Employment, Small Business and Training will work closely with Queensland Health to ensure when these Queenslanders’ are tested positive for COVID-19 that they are referred to the Department for this assistance.

Online Training for Small Business

Tue, 09 Jun 2020 02:44:30 GMT

FREE Small Business Skills Hub

If your business has been impacted by the coronavirus (COVID-19) pandemic, you can access a free online library of course tailored to small business.

Course areas include:

Foundation business skills
Leading a successful business
Connecting businesses and customers
Adaption and digital skills.

The online training is being provided through GO1 and its online learning platform, in partnership with the Queensland Government, to support you and your employees recover from COVID-19 and enable future growth.

Access is free to The Small Business Skills Hub and available to any COVID-19 impacted Queensland small business with less than 20 staff with a registered ABN.

Registration is required, including details to verify your business.

Prior to accessing the GO1 hub, it is important that you carefully review the Department of Employment, Small Business and Training's disclaimer below, outlining the terms of access to, and the use of, the GO1 hub and its content, which is owned and operated by a third party provider, GO1. Your access to, and use of, the GO1 hub is subject to the terms of this disclaimer in addition to GO1's terms of use. By registering, and by continuing to access and use the GO1 hub, you agree you have read and understood the terms of the disclaimer.

Be Careful With Casuals

Wed, 03 Jun 2020 04:45:31 GMT

Casuals working regular hours entitled to leave

Last month the Federal Court handed down a decision (Workpac v Rossato) which allowed a "casual" employee to claim backpay for personal leave, compassionate leave, and public holiday pay. The decision also said that any casual loading already paid to such workers would not offset the back pay and that the worker is not obliged to repay the loading.

The decision re-confirms a 2018 ruling against the same employer (WorkPac Pty Ltd v Skene) with the same findings.

While there's strong advocacy from industry to try and get legislative change around the issue, we encourage all employers to review their own casual arrangements. Where your employees are working regular and systematic hours it may no longer be sufficient to call them casual and rely on the award provisions.

If you'd like us to conduct a compehensive review of your payment arrangements with employees, please contact us .

JobKeeper Update

Wed, 20 May 2020 06:30:24 GMT

Almost 5 million Australians are on JobKeeper and payments have started to flow, however the system is not without its problems.

Have You Enrolled?

If you're in business and/or have employees, you might be eligible. You can read the full detials about eligibility on the ATO website , or complete our JobKeeper Form and we'll check for you.

To be backpaid to the start of the sceme, you must enrol by 31 May 2020 so if you think you might be eligible, now is the time to act!

If you haven't been eligible so far but your turnover falls in future months, you can join the sceme at a later stage.

Have You Received Your Payment?

Most of our clients have reported receiving their reimbursement for April, however the system is definitely not without issues. If you've completed your April reporting (or we've done this on your behalf) and you haven't seen the deposit in your bank, there can be several reasons:

Suspension By ATO - In seveal cases we have seen the ATO suspent JobKeeper pending further information. In some instances the ATO has made contact to collect that information, but in some instances they have not.
Form Error By ATO - We have seen instances where the data on ATO systems does not match the data that has been lodged on the portal. This can include incorrect employees or incorrect start months.
Incorrect Entity - Some clients have enrolled the incorrect entity for JobKeeper. If you completed your own enrolment, please ensure that you have enrolled the correct ABN.

The JobKeeper payment doesn't show on your Business Portal and you don't get a notification when it's paid, however it's easy to spot in your bank account because the naration says "ATO" and the amount will be a multiple of $1,500.

If you haven't received your payment and you beleive you should have, you can call the ATO or ask us to investigate for you.

How Do You Code The Payment?

When you receive your JobKeeper money, it should be coded to an 'other income' type account with a GST code of Out Of Scope/BAS Excluded.

Will JobKeeper Last 6 Months?

At this stage, we don't know. It was always a part of the JobKeeper enactment that the scheme would be reveiewed in June. At that time, the scheme could be wound back or eligibility narrowed or re-tested. In recent weeks, the Prime Minister has refused to confirm one way or the other, saying we must wait for the review.

Small Business Adaption Grant Program

Tue, 19 May 2020 04:35:36 GMT

The Queensland Government has intoduced a grant for small businesses to help where they have been subject to closure or highly impacted by the COVID-19 shutdown restrictions. The program is designed to help businesses adapt and sustain their operations, and build resilience.

The program aims to see small and micro businesses:

prepare for the safe resumption of trading in the post COVID-19 recovery
access digital technologies to rebuild business operations and transition to a new way of doing business
respond to online opportunities, where possible, to sustain employment and maintain potential for longer-term growth
upskill and reskill business owners and staff to benefit from new technologies or business models
embrace business diversification to adapt and sustain operations
create or retain employment.

Available Funding

The available grant amount is up to a maximum of $10,000 per eligible small or micro business.

In recognition of the significant impacts of COVID-19 on small businesses, the funding can be used towards the following:

financial, legal or other professional advice to support business sustainability and diversification
strategic planning, financial counselling or business coaching aligned to business development and diversification
building the business through marketing and communications activities, for example, content development (web pages, mobile apps, visual and audio media etc.)
digital/technological strategy development
digital training or re-training to adapt to new business models
capital costs associated with meeting COVID-19 safe requirements
specialised digital equipment or business specific software to move business operations online (e.g. logistics program for online ordering)
meeting business costs, including utilities, rent.

Note: Grant funds can also be used towards any of the above activities occurring from 23 March 2020 onwards, keeping in mind the project must be completed within a maximum of 6 months from the date of approval.

Once the program budget has been fully allocated, applications for the program will close. It is estimated that approximately 10,000 small businesses will be supported through this program.

Applying small and micro businesses must meet the eligibility and assessment crit eria to be considered for funding.

Eligibility Criteria

To be eligible, the business must:

have been subject to closure or otherwise highly impacted by current shutdown restrictions announced by Queensland’s Chief Health Officer on 23 March 2020
demonstrate that business revenue has been significantly impacted since 23 March 2020 over a minimum 1-month period due to the onset and management of COVID-19
employ staff and have fewer than 20 employees at the time of applying for the grant
have a valid Australian Business Number (ABN) active as at 23 March 2020
be registered for GST
have a Queensland headquarters
have an annual turnover over $75,000 for the last financial year
have a payroll of less than $1.3 million
not be insolvent or have owners/directors that are an undischarged bankrupt.

Only 1 application will be accepted from an individual ABN or a financial beneficiary of a business.

Successful applicants cannot reapply for funding under this grant program.

Applying

To apply, complete the following steps:

read the eligibility criteria
read the application guidelines and terms and conditions
apply using the SmartyGrants link:

Assessment Process

In addition to meeting the eligibility criteria, applications will be assessed against the following:

funding availability - applications will be processed on a first come, first serve basis, and therefore not all applications will be successful
submission of a complete application form, with all requested supporting documentation included (i.e. your application must contain the requested supporting documentation, otherwise you will be contacted to provide appropriate evidence and this may delay your application's progress)
value for money, as determined by DESBT.

Grant payments

Funding will be paid upon approval of your grant application.

Within 1 month of completing the project, applicants must:

complete and submit an acquittal report through SmartyGrants
submit copies of supplier invoices and proof of purchase for the total project cost.

Grant recipients may be subjected to a random audit by DESBT to ensure that the information provided is true and correct. Where it is found that false or misleading information has been provided, penalties may apply, including refunding to DESBT some or all of the grant funding.

Further information

For more information about the program and application process, phone the QLD State Goverment on 1300 654 687 or email adapt@desbt.qld.gov.au .

View the 2019–20 Small business grants schedule to help plan your applications for grant rounds.

Article Source: Business.qld.gov.au

Need help?

If you'd like our assistance to complete the grant application, provide your details below and we'll be in touch:

Modern Award Changes

Fri, 15 May 2020 03:40:10 GMT

Future changes as part of the 4-yearly review

In February this year, we publish a news article on changes to the Modern Awards that had been subject to language and layout variations as a part of the Fair Work Commission’s 4-yearly review of Modern Awards. ( Find the article here ) These changes came into operation on 4th February, 13th April and 4th May 2020. You can access the new versions of these awards on the Modern awards list on the Fair Work Commission's website here .

A number of awards have been varied as part of the third tranche of awards, with the changes due to take effect on 29th May and 18th June 2020. Similar to the previous variations under the first and second tranche, the greatest changes will be to the layout and language used in the awards, in an attempt to make them simpler and easier to understand.

The awards changing on 29th May are:

Clerks—Private Sector Award 2010 [MA000002]
Contract Call Centres Award 2010 [MA000023]
Educational Services (Schools) General Staff Award 2010 [MA000076]
Local Government Industry Award 2010 [MA000112]
Manufacturing and Associated Industries and Occupations Award 2010 [MA000010]
Rail Industry Award 2010 [MA000015]
Vehicle Manufacturing, Repair, Services and Retail Award 2010 [MA000089]

The awards changing on 18th June are:

Aircraft Cabin Crew Award 2010 [MA000047]
Amusement, Events and Recreation Award 2010 [MA000080]
Business Equipment Award 2010 [MA000021]
Dredging Industry Award 2010 [MA000085]
Health Professionals and Support Services Award 2010 [MA000027]
Horse and Greyhound Training Award 2010 [MA000008]
Journalists Published Media Award 2010 [MA000067]
Marine Tourism and Charter Vessels Award 2010 [MA000093]
Marine Towage Award 2010 [MA000050]
Miscellaneous Award 2010 [MA000104]
Pest Control Industry Award 2010 [MA000097]
Ports, Harbours and Enclosed Water Vessels Award 2010 [MA000052]
Professional Employees Award 2010 [MA000065]
Seagoing Industry Award 2010 [MA000122]
Security Services Industry Award 2010 [MA000016]
Sugar Industry Award 2010 [MA000087]
Supported Employment Services Award 2010 [MA000103]

To access the new versions of these awards before they come into operation, click on the link in the Future Awards column here .

If you have any questions regarding the changes or modern awards, please contact us to discuss.

Tax Scams - The Tell-tale Signs

Tue, 05 May 2020 04:29:07 GMT

Tax Scams On The Rise!

Life's busier than ever for small business owners at the moment. Scammers hope you’re too busy to check what they’re saying so you’ll hand over your personal or financial information.

While you are being supported through the COVID-19 environment, scammers are trying to steal your money or identity while you’re most vulnerable.

Look out for these tell-tale signs of tax scams if you get a suspicious call, message or request.

The ATO will never:

send an email or SMS with a hyperlink to online services such as myGov
request personal identifying information via a return email unless you've agreed to engage with ATO this way
threaten you with immediate arrest and insist you stay on the line until you make a payment
prevent you from discussing your tax affairs with your registered tax professional
request payment of a debt via iTunes, Google Play cards or other vouchers, cryptocurrency, cardless cash transfer, offshore wire transfer or into a bank account not held by the Reserve Bank of Australia
ask you to pay a fee to receive a refund.

The ATO is aware of a significant increase in Australians being targeted with COVID-19 scams, fraud attempts and deceptive email and SMS schemes.

The ATO will communicate with you via SMS and email if you have applied for the JobKeeper payment, or early release of superannuation. However, if you’re unsure whether an ATO interaction is genuine, do not reply. If you receive an SMS or email claiming to be from the ATO, check with the ATO first to confirm it's genuine.

The ATO are working with other government agencies to combat COVID-themed scams and minimise harm to the community.

During this time of heightened scam activity, individuals and businesses are encouraged to:

run the latest software updates to ensure operating systems security is current
update antivirus software
always exercise caution when clicking on links and providing personal identifying information.
always avoid accessing online government services via a hyperlink in an email or SMS – only via an independent search
call the ATO on an independently sourced number to verify an interaction if in doubt
educate your staff on scam awareness.

If you’re ever unsure about an ATO communication, do not reply. Phone the ATO scam hotline on 1800 008 540, visit ato.gov.au/scams , or give us a call to discuss.

Bridging Funding for JobKeeper

Thu, 30 Apr 2020 02:42:44 GMT

Australia's Major Banks Open Dedicated Hotlines

Australian banks are playing a vitally important role in bridging the finance that businesses need to pay their staff ahead of receiving the first JobKeeper Payment in the first week of May.

It is an integrity measure that businesses pay their staff before receiving the JobKeeper Payment.

On 23 April 2020, the Treasurer announced the Commonwealth Bank of Australia (CBA), National Australia Bank (NAB), Westpac and ANZ banks agreed to establish dedicated hotlines for their customers to call to receive the bridging finance necessary to pay their staff ahead of receiving the JobKeeper Payment.

The hotlines are as follows:

CBA: 13 26 07

ANZ: 1800 571 123

NAB: 1800 JOBKEEPER ( 1800 562 533 )

Westpac: 1300 731 073 and Westpac’s subsidiaries;

St George: 1300 730 196

Bank of Melbourne: 1300 784 873

Bank SA: 1300 669 472

The banks have also agreed to bring to the front of the queue all bridging finance applications.

This means any business that is eligible for the JobKeeper Payment can now ring the dedicated hotline for the bank and ask for the bridging finance necessary to pay their staff. The banks know their customers. They know these businesses. The banks need to stand by these businesses in their time of greatest need and that is now.

The ATO have also set out detailed guidance on eligibility and enrollment for the JobKeeper Payment.

Please visit: https://www.ato.gov.au/General/JobKeeper-Payment/

JobKeeper Update

Thu, 30 Apr 2020 02:25:00 GMT

There's a few changes to JobKeeper

There have been some minor changes announced to the JobKeeper Payment.

Here's what you need to know:

Previously anyone wanting to claim JobKeeper for the month of April needed to be enrolled by 30 April. This deadline has been extended to 31 May.
Employers who need to make back-pay top-up payments for April now have until 8 May to do so.
Businesses which employ their staff through a service entity have been added to the eligibility list.
Full-time students younger than 17 years who are not financially independent are not eligible employees.
Sole traders who have a full-time or part-time job cannot claim JobKeeper under their own ABN.
Charities can now exclude Government payments from their turnover when checking eligibility.

The ATO also released its Legislative Instrument to give affect to Alternative Tests. This means that if you can't pass the basic test to meet eligibility, one of these tests might still let you qualify. They are for people who:

Have been in business less than a year
Had a low turnover in the prior year due to natural disaster
Had a low turnover in the prior year because they were sick
Bought or sold part of their business which changed their turnover
Restructured their business which changed their turnover
Have a large variance in turnover or irregular income

To find out more about JobKeeper, visit our dedicated page here .

New Service - ProcessPlan

Thu, 30 Apr 2020 02:22:13 GMT

Announcing Our Latest Software Partnership

Haslam Consulting & Accounting are now proud partners of ProcessPlan, the market-leading business proces manager.

ProcessPlan allows you to streamline and automate the administrative tasks within your business to make jobs of any type easier and faster.

We have been using ProcessPlan in our office for a year now and love the results we've achieved. We're excited to be able to share this with our clients and help them better their businesses too.

Read more abour ProcessPlan on our ProcessPlan page . Or if you'd like to see how ProcessPlan can work to improve your business, get in touch with us .

Audit Shield Service Update

Tue, 28 Apr 2020 22:35:30 GMT

JobKeeper payment audits and reviews are
covered by our Audit Shield service.

Covid-19 has challenged nearly every aspect of our lives, both personally and in business. The government has taken unprecedented steps to try and manage the issues of a health crisis and an economic crisis at the same time. The support packages are being announced in concept with the specific details being built two to three steps behind the concept and announcement. This is not a criticism, but more of a statement with respect to a show of dynamic and action driven responses in a time where that is required by both Federal and State governments.

Although our Audit Shield service excludes any matter in relation to application, assessment or review of government benefits or entitlements, we are pleased to announce that we have been working closely with our service provider and they now have an inclusion in place for JobKeeper payment audits and reviews only. This means that JobKeeper payment audits and reviews are covered by our Audit Shield service. Our Audit Shield service will provide for the payment of our professional fees otherwise payable by you when incurred as a result of our accounting firm

being required to respond to a JobKeeper payment audit or review on your behalf.

What you should know about this new inclusion:

You do not need to do anything to have this included in your current Audit Shield service offering if you are currently participating.
It only covers JobKeeper payments. All audits and reviews of other Covid-19 support packages are not covered unless they form part of an audit of a lodged return (i.e. BAS audit, Payroll Tax audit etc.).
It only covers post payment audits and reviews so any issues or queries with the JobKeeper payment application process are not covered.
This is being added at no additional cost to you.

Want to know more if you are not currently participating in our Audit Shield service?

If you would like to know more about our Audit Shield service, please contact us .

A New Small Business Commissioner for Queensland

Tue, 28 Apr 2020 22:18:36 GMT

Queensland's first small business commissioner

The appointment of Queensland’s first small business commissioner will be beneficial to help with dispute resolution, especially in the months to come said the Chamber of Commerce and Industry Queensland (CCIQ).

CCIQ’s general manager of advocacy and policy, Amanda Rohan, said with the current uncertainty surrounding tenancies and landlord agreements, the aim of this new role to effectively and efficiently resolve disputes, without resorting to costly court proceedings, is welcomed.

“We have previously called on the State Government to provide a dispute resolution mechanism for small businesses," Ms Rohan said.

“While there are resources relevant to a dispute resolution process across different government agencies, they are not consolidated or relevant to small business.

“Often, agencies cannot make specific recommendations, as there is a gap in information for industry which will be rectified through this new commissioner role.

“We see the long-term benefit as supporting the provision of a competitive and fair operating environment, and we look forward to working with the new commissioner to benefit Queensland’s small business community,” Ms Rohan said.

Source: CCIQ Media Release

JobKeeper Eligibility Report in QuickBooks

Sun, 19 Apr 2020 00:03:07 GMT

How to quickly see your turnover reduction

For businesses to be eligible for JobKeeper payments they must demonstrate a reduction in GST turnover.

QuickBooks have now launched a Customised Profit and Loss Statement which shows net revenue change.

To access this you will need to login to the relevant QuickBooks file first, then click on the below link or copy/paste in the address bar of the browser.

https://intuit.me/3bgZpDB

Note: Do not bookmark the URL after you click on the link, as the URL gets customized for the company which you are logged into.

This is currently available for Essentials and Plus only. Once loaded in the client account, you can save as a customised report so that you can access it on the Reports page. QuickBooks are working on adding an access point for Simple Start as well.

JobKeeper & Your Payroll Software

Sun, 19 Apr 2020 00:00:28 GMT

If you are a JobKeeper registered employer, you must report extra data to the ATO in your payroll software. This involves setting up some new items, and including them in pay runs.

This data will feed into your JobKeeper claim form each month, to save you re-entering data to make the claim for reimbursement of wages.

New items for payroll

The new allowance items you need to create are:

JOBKEEPER-START-FNXX - This item corresponds to the fortnight the employee became eligible for JobKeeper

JOBKEEPER-TOPUP - This item corresponds to the amount of any JobKeeper top-up payment

JOBKEEPER-FINISH-FNXX - This item corresponds to the fortnight the employee ceased being eligible for JobKeeper

We will discuss each item in turn below:

JOBKEEPER-START-FNXX

This pay item should be created as an allowance , where XX is replaced by the correct start fortnight from the table below.

If you have different employees with different start fortnights, you will need to create multiple allowance codes.

JOBKEEPER-TOPUP

This pay item should be created as an allowance, this is where the amount of any JobKeeper payment will be entered.

Only the amount above the employee's worked hours (the top up portion) should be included in this item.

JOBKEEPER-FINISH-FNXX

This pay item should be created as an allowance, where XX is replaced by the correct end fortnight from the table below.

If you have different employees with different end fortnights, you will need to create multiple allowance codes.

JobSeeker Fortnight Codes

Processing pays

When you pay employees who are eligible for JobKeeper, you need to add any allowance codes which applies to the payment (from the above).

If your employees are eligible for JobKeeper from the start of the scheme, you should include the JOBKEEPER-START-FN01 item in that pay run for each employee. The amount entered for this allowance code should be $0.00 or $0.01 depending on your software (some payroll software does not allow for zero amounts).

If your payment to an employee includes any top-up amount, that amount should be included using the JOBKEEPER-TOPUP allowance. The amount entered for this allowance should be the top-up amount, i.e. the difference between any normal pay the employee receives and the $1,500 minimum under the JobKeeper scheme.

If your employee is no longer eligible or leaves your employment, a JOBKEEPER-FINISH-FNXX allowance should be included in that pay run, where XX is replaced with the correct fortnight from the above table.

If you have already submitted your Single Touch Payroll data to the ATO for any JobKeeper payruns, they will need to be corrected and submitted again.

Your particular software

Intuit QuickBooks

Set up and manage JobKeeper Payments by QuickBooks

Managing the JobKeeper Payment by YourPayroll (QuickBooks Payroll)

MYOB

No guidance has been released yet for MYOB, however there is a dedicated COVID-19 section in their community where this setup is widely discussed.

Reckon Accounts

How to set up pay items

How to process a pay run

Reckon One

How to set up pay items

How to process a pay run

Xero

Blog Post - JobKeeper now live in Xero Payroll

Set up or update JobKeeper pay items in Xero

Xero are hosting a webinar about what Gov assistance is available at a federal level to small business in Australia, you can register for one of the sessions by going HERE

If you need help

We have a dedicated form on our main JobKeeper page for people who require assistance with getting their JobKeeper claims correct.

Queensland Land Tax Relief Measures

Sat, 18 Apr 2020 23:39:31 GMT

Landlords and tenants to benefit in Qld

On 9 April 2020 the Queensland Government announced its support package for landlords and tenants, both commercial and residential, impacted by the COVID-19 disaster.

The announced package includes:

3-month deferral of land tax liabilities for the 2020-21 assessment year.
waiver of the 2% land tax foreign surcharge for foreign entities for the 2019-20 assessment year.
land tax rebate of 25% of the 2019-2020 land tax year for eligible landlords, which is to be passed through to its tenants.
a set of leasing principles a landlord must agree to as a condition of applying for the land tax rebate.
temporary legislative changes to protect eligible tenants, including eviction moratoriums and rent freezes.
a crisis payment of $500 per week for up to four weeks in rent relief for residential tenants who are homeless, or at imminent risk of becoming homeless and have exhausted other options

Land tax relief applications are being managed by the Office of State Revenue. To apply visit qld.gov.au/landtax .

Automatic partial relief for foreign entities

The Queensland Office of State Revenue (“OSR”) advises that there is no need to make an application for the foreign surcharge waiver – the OSR will reassess land tax to apply the waiver and provide a refund where the assessment amount has already been paid. On the face of it, there does not appear to be any requirement at this stage to “prove” COVID-19 impacts have affected the property owner.

Automatic 3 month deferral of payment of the 2020-2021 land tax assessments

It appears the deferral of payment of the assessment for the 2020-2021 land tax year will take place automatically as well, with the OSR advising there is no need to make an application. Because there is no need to make an application it would seem that there is no requirement to establish COVID-19 impacts have affected the property owner.

Applications required for the 25% rebate of 2019-2020 land tax

The OSR advises that it will be necessary to make an application for the land tax 25% rebate for the 2019-20 assessment year. Eligible landlords must apply for the 25% rebate BEFORE 30 June 2020.

Commercial and residential landlords are eligible to apply for the 25% rebate for the 2019-2020 land tax assessment if either :

1. The landlord leases all or part of a property to one or more tenants and all the following apply:

(a) the ability of one or more tenants to pay their normal rent is affected by the COVID-19 pandemic; and

(b) the landlord agrees to provide rent relief to the affected tenant(s) of an amount at least commensurate with the land tax relief; and

(c) the landlord agrees that it will comply with the leasing principles (see below) even if the relevant lease is not regulated.

2. The affected landlord:

(a) has all or part of its property is available for lease; and

(b) the landlord’s ability to secure a tenant(s) has been affected by the COVID-19 pandemic; and

(d) the landlord agrees to comply with the leasing principles even if the relevant lease is not regulated.

If a landlord is eligible for the land tax rebate under both the above circumstances (i.e. eligible landlords have some property leased and some property vacant), the OSR expects the landlord to apply the rebate paid firstly to provide rent relief to the landlord’s tenants. Landlords are then able to apply any remaining rebate to their own financial obligations (e.g. in relation to debt and other expenses).

The land tax rebate will only apply to each property that meets the above eligibility requirements and conditions, rather than the rebate applying to a property owner’s entire taxable landholdings.

Where there are multiple tenants for a single property, including mixed-use developments, if the eligibility requirements and conditions are met for at least one tenancy, then the whole property is eligible for the land tax rebate.

The OSR advises that the land tax rebate does not need to be repaid if the eligibility requirements and conditions are met.

Leasing Principles

To be eligible for the 25% land tax rebate a landowner must commit to comply with the leasing principles set out below. As there is no need to make an application for either the deferral of the 2020-2021 land tax payment or the waiver of the 2% foreign surcharge it is hard to see how the announced leasing principles can be intended to be a pre-requirement for those forms of land tax relief.

The leasing principles are to be introduced into Queensland law – this cannot happen until Parliament resumes sitting on 28 April 2020, so clarification on the grey areas may take some time!

The announced principles for residential landlords are:

You will negotiate in good faith with your tenant to seek a mutually agreeable resolution if their ability to pay is impacted by COVID-19;
You will not evict your tenant if they are in financial distress and unable to meet their commitments due to the impact of COVID-19;
You will not end a tenancy for any reason other than on an approved ground; this does not include the tenant’s inability to pay rent or the end of a fixed term lease;
You will not charge break lease fees for tenants who need to end a fixed term tenancy early due to the financial, health or personal safety impacts of COVID-19; and
You will allow a tenant to refuse entry for non-essential reasons, including routine repairs and inspections, particularly if a member of the household has a higher risk profile if exposed to COVID-19.

The announced principles for commercial landlords are:

You will negotiate in good faith with your tenant to seek a mutually agreeable resolution if their ability to pay is impacted by COVID-19;
You will not evict your tenant if they are in financial distress and unable to meet their commitments due to the impact of COVID-19;
You will not increase rent, except where rent is linked to increased turnover;
You will not penalise a tenant who stops trading or reduces opening hours;
You will not charge any interest on unpaid or deferred rent; and
You will not make a claim on a bank guarantee or security deposit for non-payment of rent.

There has already been strong concerns raised by the property industry and the real estate sales industry about aspects of the announced principles. With enabling legislation still to be passed strong lobbying by these peak bodies can be expected.

Relief for Commercial and Residential Tenants

These announced measures are still subject to legislation being introduced and passed by the Queensland Government.

No Extension For Super Amnesty

Sat, 18 Apr 2020 23:36:13 GMT

Act now to take advantage

We understand you may wish to apply for the superannuation guarantee (SG) amnesty but are concerned that, because of COVID-19, you will not be able to pay your liability.

You can read more on how to apply for the amnesty on the ATO website HERE

By law, the ATO must receive your SG amnesty application forms by 11:59pm Monday 7 September 2020 for you to be eligible. To remain eligible for the amnesty, you must pay the SG shortfalls, as well as interest charges. However, if you apply for the amnesty and are eligible for its benefits, the ATO can work with you to establish a payment plan which is flexible to help you to continue making payments.

These arrangements include:

flexible payment terms and amounts which the ATO will adjust if your circumstances change
the ability to extend the payment plan to beyond 7 September 2020 – the end of the amnesty period. However, only payments made by 7 September 2020 will be deductible.

If you disclosed unpaid super between 24 May 2018 and 6 March 2020, you don't need to apply or lodge again. The ATO is identifying eligible disclosures and amending assessments as quickly as possible.

For some people, this will result in them receiving a refund for the previously paid administration charges. You will need to ensure the financial institution account details are correct and provide the ATO updated details if required. This will allow them to issue any refund in a timely manner.

JobKeeper Enrolment Form

Sat, 18 Apr 2020 23:32:48 GMT

JobKeeper enrolment form

After loggin in to the ATO Business Portal , you will be able to access the enrolment form, click on Enrol to start.

Example Image:

Completing the form

The form requires you to:

Confirm which month you became eligible - find out how to work that out HERE
Confirm you have already paid your employees the minimum $1,500 per fortnight in April
Declare if you're enrolling as an eligible business participant - this is for self employed people
Provide your bank details

Example Image:

Save your confirmation

Once you submit the form, click on Printer Friendly Version, then save a PDF copy for your records. If you are a client of Haslam Consulting & Accounting, please also forward a copy of the confirmation to us.

Example Image:

Need help?

If you require assistance to determine your eligibility, get logged into the Business Portal, or you would like us to complete the enrollment on your behalf, please fill out our JobKeeper Assistance Form .

COVID-19 Time Capsule

Fri, 17 Apr 2020 03:21:45 GMT

Something To Keep The Kids Busy!

This week we came across an amazing resource made available for FREE by LONG Creations . Head over to Facebook and give Long Creations page some love. ( https://www.facebook.com/LongCreations )

"We are all living through history and something I have said I wanted to do from the beginning is make a keepsake of this moment for us to look back on. I have saved newspapers and art work done by my kids, taken photos of all our days and kept a diary. BUT I have also been working on a "time capsule" work sheet for my daughter, son and I to fill out. This will be available as a FREE resource for any of my fans."

- Natalie Long of LONG Creations

Down below you can download a copy of the time capsule to print out.

COVID-19 Time Capsule Includes:

Page To Draw Family Picture
All About Me
How I'm Feeling
My Community
What I Am Doing At Home
Handprint Page
Special Occasion Page
Letter To Myself Sheet
Interview For The Parents
Letter From The Parent

How To Use:

The workbook file is saved in PDF format. To use it you can download and open with a PDF program, and then print them. Some web browsers will let you do this directly from the browser.

DOWNLOAD HERE

Easter Office Hours

Wed, 08 Apr 2020 07:41:11 GMT

Over the easter break our office hours will be:

Thursday 9th April 2020: Open - Regular Hours
Friday 10th April 2020: Closed
Saturday 11th April 2020: Closed
Sunday 12th April 2020: Closed
Monday 13th April 2020: Closed
Tuesday 14th April 2020: Open - Regular Hours

From all the team at Haslam Consulting & Accounting, we hope that your Easter is filled with smiles, gratitude and bliss. Enjoy your Easter! #StayAtHome #StaySafe

New Working From Home Deduction Shortcut

Wed, 08 Apr 2020 01:03:49 GMT

The ATO has introduced a simplified method to claim working from home deductions from 1 March

The ATO is introducing a new method which will allow people to claim 80 cents per hour for all their running expenses, rather than needing to calculate costs for specific running expenses.

The change will apply from March 1 to June 30, after which the ATO will review the arrangement for the next financial year as the COVID-19 situation progresses.

If you choose to use this shortcut method, all you need to do is keep a record of the hours you worked from home as evidence of your claim. For many people it is a record of their time sheets. For others it may be an Outlook calendar or keep a diary.

Multiple people living in the same house will be able to claim the new rate. And the requirement to have a dedicated work-from-home area has also been removed.

The new arrangement does not prohibit people from making a working-from-home claim under existing arrangements , where you calculate all or part of your running expenses.

Claims for working-from-home expenses prior to March 1, 2020 cannot be calculated using the shortcut method and must use the pre-existing working from home approach and requirements.

If the Federal Government announces a prolonged lockdown extending into the next financial year the ATO is likely to extend the new claiming method.

People still have the option to use the old claiming method to claim for specific items, but that may prove tricker to calculate.

This is known as the 52 cents per work hour method for claiming items such as heating, cooling, lighting, cleaning and the decline in value of office furniture.

Taxpayers can also use this old method to calculate the work-related portion of phone and internet expenses, computer consumables, stationery and the decline in value of a computer, laptop or similar device.

But under the 52 cents method taxpayers will need to apportion their use between what is personal and what is work-related, and must do so on "a reasonable basis".

To help you make a claim under the old method, we've developed a handy online form.

Extended Appointment Hours

Mon, 06 Apr 2020 23:49:43 GMT

We have extended our available appointment times.

We know that some people's lives are a little bit more strained than usual right now. To ease the burden of finding time to talk with an accountant, we have extended our available appointment times.

You can now book a video or phone appointment with us 7 days a week between 9:00 am and 7:00 pm

You can book your appointment HERE

If you're not sure how long you will need or which time will best suit your needs, please complete the below from and one of our team will contact you to discuss and book a time.

Fair Work Announces Pandemic Leave & Half-Pay Anual Leave

Thu, 02 Apr 2020 06:52:24 GMT

New Options For Employers Who Close

The Fair Work Australia recently issued a statement of its intent to amend 104 modern awards to allow employees to take unpaid pandemic leave and annual leave at half pay in response to the Covid-10 outbreak. These updates to modern awards are intended to provide a quick response to the current crisis.

This is in addition to certain awards which have already been adusted to allow for flexibility and work-from-home measures. You can keep up with all the latest at the Fair Work Ombudsman website .

Free Childcare For Parents Still In Work

Thu, 02 Apr 2020 06:41:37 GMT

6-Months Free Childcare For Working Parents

Free childcare will be offered to nurses, doctors, hospital cleaners and any worker who still has a job amid current lockdowns for six months, under new COVID-19 childcare reforms.

Prime Minister Scott Morrison made the announcement on Thursday, pledging care would be free from Sunday night (April 5).

The free childcare will be offered to essential workers, regardless of their family income.

“We will be ensuring for those parents who are still in that position where they are needing that childcare, it will be free,” he said.

“We will be putting in place support arrangements to the childcare facilities, some 13,000 of them, to ensure they remain open and be there for their parents to ensure they can do what they need to do each day.”

Education Minister Dan Tehan said centres would be asked to prioritise essential workers and vulnerable children who might not be safe at home.

“It will be a system that will mean parents will get their children cared for for free,” Mr Tehan said.

“What we will be doing is turning off the old system and going to a new system, which will provide that relief to parents.

“Can I say to all those parents, what we want to do by doing this is ensure that your childcare centre will remain open, so that you know where you normally take your child to get care, that that will be there for you, so you are not looking to have to go to a new centre.

“You do not have the worry and the concern about trying to look for new care for your children.”

Under the $1.6 billion coronavirus-driven bailout for the sector, the Morrison government will also guarantee a portion of childcare subsidies that would otherwise have flowed before parents started withdrawing their children.

“The way it will work is that we will look at what 50 per cent of the fees up to the rate cap were in the fortnight before 2nd March and we will pay you that amount on a fortnightly basis,” he said.

“Now, there are some conditions that we are asking if the sector are to receive these payments. The centre must remain open. It must provide care for those parents who need their children cared for. They must also seek to re-enrol those parents who might have dropped off.

“If they need care, they can get that care as well. To help and assist with that, we are backdating to 23rd March the requirement that the sector must pursue from parents a fee. So we are waiving the gap fee for parents going back to the 23rd March.

“The hope is that now all parents who need it will get the care they want and those who have sought to disengage from the childcare sector will re-engage with the sector.”

Meet The Team

Thu, 02 Apr 2020 06:36:35 GMT

Our "Underwater Audit Team" Finally Have Names!

Please meet the newest members of the Haslam Consulting & Accounting office; Dollar, Prophet, Larry and Tang.

Our aquatic workmates are surviving lockdown well, but they can't wait to see everyone once our office re-opens.

Congratulations to our four fans who named these little guys. Your prize pack is on the way!

Thank you to everyone who entered this competition. We received an overwhelming response to this and are so humble that members of our community have joined in to help name our fish.

Stay tuned to this space, we will be running more competitions soon. Subscribe to our newsletter and keep an eye on our Facebook page.

Fish Number: 1

Name: Dollar

Species: Shubunkin

Named By: Sue L

Joined the Team: Jan 2020

Fish Number: 2

Name: Prophet

Species: Shubunkin

Named By: Loretta C

Joined the Team: Jan 2020

Fish Number: 3

Name: Larry

Species: Comet

Named By: Madison B

Joined the Team: Jan 2020

Fish Number: 4

Name: Tang

Species: Comet

Named By: Vanda M

Joined The Team: Jan 2020

4 Weeks Rent Paid While Waiting For Centelink

Thu, 02 Apr 2020 06:35:18 GMT

The Queensland Government Will Pay Your Rent

If you've lost your job and applied for Jobseeker from Centrelink, a one-off payment of up to 4 weeks rent (maximum of $2000) is available from the queensland government.

The grant is paid directly to your lessor and it is available to anyone who meets the following criteria:

you live in Queensland
you have, or will shortly have, a bond registered with the Residential Tenancies Authority
you are an Australian citizen, permanent resident, or have a temporary or permanent protection visa or possess a bridging visa
you do not have more than $10,000 in cash and savings
you can provide evidence of attempts to negotiate a payment plan with your lessor
you have lost your job and have applied to Centrelink for income support
you are waiting for your application with Centrelink to be approved.

If you meet the criteria and would like to apply for the payment, click here to access the application form .

To find out what other support might be available, visit our COVID-19 Page or Book An Appointment .

New Job-Keeper Payment Announced

Mon, 30 Mar 2020 05:22:31 GMT

The government will pay employers to keep employees with a new Job-Keeper Payment

The federal government has announced a new $1,500 per fortnight payment for employees of businesses who are suffering a downturn.

Any small business whose turnover has fallen by 30% or more will be eligible. Eligible employees include:

Full time workers
Part time workers
Casuals over 12 months
Sole traders

The payments will be made by the ATO to employers to pass on to their employees. Any employee who was on the books as at 1 March 2020. Payments will flow from 1 May 2020 and be backdated to 30 March 2020. Employees who have previously been stood down will still be eligible.

CLICK HERE TO REGISTER WITH THE ATO

Employers must be using the Single Touch Payroll (STP) system to be eligible. If you are not yet using STP, get in touch with us to get registered today.

Centrelink: Spouse's Income Test Increased

Mon, 30 Mar 2020 05:16:14 GMT

More people will now be able to access the increased Jobseeker payment.

The federal government has announced that the spouse's income limit will be increased to $76,762 per year, allowing more people to access the Jobseeker payment.

Applications OPEN for the Queensland Government’s COVID-19 Jobs Support Loan scheme

Fri, 27 Mar 2020 03:41:37 GMT

$500 million COVID-19 Jobs Support Loans - Applications open

Applications are now open for the Queensland Government’s $500 million COVID-19 Jobs Support Loans.

These loans are available to assist Queensland businesses and non-profit organisations financially affected by COVID-19 to retain employees and maintain their operations.

Eligible business types include sole traders, partnerships, private and public companies and Trusts. Loans may be used to help meet a business’s working capital expenses such as paying employee wages, sundry creditors, rent and rates and other eligible carry-on expenses.

Loan features

Maximum loan up to $250,000
No repayments or interest charged for the first year
Plus two years interest only
2.5 % fixed interest rate
10-year term of loan
Open until 25 September 2020 or when funding is fully committed

Read Guidelines and FAQs

More information about the loan and full eligibility criteria is available in the Guidelines and Frequently Asked Questions .

Get ready to apply

To make applying online for this loan easier, it’s helpful to have the following documents ready before you apply:
Business Financial Statements for 2017-18 and 2018-19
Personal Taxation Returns for 2017-18 and 2018-19
Bank Account Information
Australian Tax Office (ATO) Integrated Client Account Statement
Aged list of debtors and creditors at time of application
Applicant Identification Information.

This scheme is administered by the Queensland Rural and Industry Development Authority on behalf of the Queensland Government.

Learn More

Apply Now

Exactly How To Apply For Centrelink

Thu, 26 Mar 2020 05:41:49 GMT

Using Centrelink for the first time? Here's how to apply for the Jobseeker Payment (formerly Newstart)

If you've lost your job, been stood down or suddenly find your business without customers due to the coronavirus pandemic, you might be tackling Centrelink for the first time, or the first time in a long time.

Centrelink is not known for being easy to navigate at the best of times. In this climate — facing increased demand, just days after a long-planned change saw the Newstart Allowance become the Jobseeker Payment, and as staff rush to implement new coronavirus stimulus packages — it's going to be harder than ever.

So the first thing to know is the process probably won't be easy and it will likely get frustrating. And there may be some kinks and hiccups (or major malfunctions) in the system along the way. But here's some guidance that may help reduce the stress a little bit.

How to apply for Jobseeker Payment (formerly Newstart Allowance)

Don't ring the hotline, don't go into a service centre, try to do as much as you can online. Click on the links in this step-by-step guide for more information.

Step one:

Go online and log in to your existing MyGov account or create a new one .

Once you have a myGov account, you can register your intent to claim , even if you're not ready to do the rest of the steps yet.

Step two:

Create a Centrelink account. If you've ever received Centrelink payments in the past, including as a young person or while studying, you may already have one. If so, jump to step three.

If you don't have an online Centrelink account, but you've received payments in the past, try to track down any old concession cards, letters or emails from Centrelink to find your Customer Reference Number (CRN) or Customer Access Number (CAN).

If you can't find this information, you can call Centrelink and they'll ask you some questions to get your CRN .

If you've never received money from Centrelink, you'll need to set up an account for the first time.

This normally involves proving your identity by showing three original documents to prove your identity to Centrelink (they do not accept certified copies).

This is usually done in person at a service centre, but it is now done over the phone instead.

Centrelink staff will then give you a validation over the phone, meaning you can go online and register through MyGov without the need to provide proof of identity documents in person.

Step three:

Log in to your MyGov account and 'link' it to your Centrelink account . Once this is done, you'll be able to log into the MyGov portal and click through to your Centrelink account.

Step four:

If you're still working but there's a reduction in your hours, you'll need a letter from your employer confirming this .

In the past when someone lost their job, they needed to fill in an employment separation certificate for every employer they'd worked for in the past 12 months — but this requirement will be waived from April 27.

You will need to upload other documents throughout the claims process, but we're not going to tell you which ones because everyone's circumstances are different.

You'll find out which ones you need as you complete your claim. But from April 27, Centrelink will also waive the requirement to provide proof of rental arrangements or verification of relationship status.

Step five:

It's time to make a claim. Log in to MyGov and go to Centrelink .

Select Payments and Claims from the menu, then Claims , then Make a claim .

Choose the category that best describes your circumstance and click Get started .

You'll have to submit any required documents online now, but you'll have 14 days to submit any supplementary documents .

Step six:

As part of the claim, you'll need to book a phone appointment. Some people have reported problems with the website at this point (among others).

You'll need to make a note of your appointment time and make sure your phone is with you. They'll call from a private number. Answer it!

Step seven:

Wait. Centrelink will let you know if your claim has been approved.

If it is, they'll tell you when you need to report. This may come through your MyGov inbox or the Express Plus Centrelink app (if you've downloaded it) or by post.

Reporting just means letting Centrelink know how much money you earned over the past 14 days and confirming you've stuck to the mutual obligations laid out in your job plan (more on this in the next section).

You'll have to report every two weeks. If you don't report, you won't get paid. If you're late reporting, your payment will be late. You can report online or over the phone.

Do I have to apply for work to get Centrelink payments during coronavirus?

In order to keep getting the JobSeeker Payment and Youth Allowance for jobseekers, there are things you must do, like apply for jobs or undergo training. These are called mutual obligation requirements. But for the six months starting April 27, 2020, the Government has introduced some new rules because of coronavirus.

It means sole traders and self-employed people who now earn less than $1,075 a fortnight will meet their mutual obligation requirements just by continuing to operate their business. They won't have to apply for other jobs. Neither will people who are caring for someone who is infected or in isolation due to coronavirus.

For those who have lost their jobs, or had their shifts cut, they will still need to look for work, but the requirements have been reduced to four job searches a month (one per week) to reflect the softening labour market. In some circumstances, you might get permission to do training or volunteer work to meet your mutual obligation requirements.

The new rules also allow you to seek an exemption from your mutual obligation requirements without a doctor's certificate if you have caring responsibilities or need to self-isolate due to coronavirus. You may also be exempt if your child's school or childcare centre has closed, or you're caring for an adult with a disability or special needs whose day service or supported workplace premise has closed.

During your exemption period, you won't need to attend appointments, look for work or do any of the activities in your job plan. But you will need to call Centrelink to get an exemption (which might be a big job on its own).

These instructions adapted from those compiled by ABC News

Use myGov to register intent for Centrelink NOW

Thu, 26 Mar 2020 05:17:58 GMT

If you can't get through to Centrelink or aren't ready to lodge your full application, do this instead

Centrelink introduced a new function which allows you to log in to MyGov and register your intent to claim.

The only information you need for this is a MyGov login, which you may already have if you use the portal to access the tax office or Medicare.

Your payments will be backdated to the date you lodged your intent to claim — even if it takes you a few days to get your application done.

Another Round Of Stimulus For Queensland

Tue, 24 Mar 2020 10:15:46 GMT

Queensland Government Announces Further Support

The Queensland Government today announced a $2.5B range of business support measures which will go a long way towards helping many of our small and medium businesses cope with coronavirus impacts over coming months incorporating:

immediate payroll tax refunds for business, meaning no SME will pay payroll tax this year
support for displaced workers and direct industry assistance measures
rent relief for businesses in government premises
liquor licensing waivers in 2020/21

The full details will be posted to our COVID-19 Support Centre as they become available and pass into legislation.

Boosting Cash Flow for Employers

Tue, 24 Mar 2020 10:15:33 GMT

Exactly how the cashflow support works

This is the largest part of the federal government's economic stimulus package. It was first announced on 12 March, expanded on 22 March and legislated on 23 March. With the rapid changes and rollout, people are understandably confused.

Am I eligible?

To get the payment, you must be an employer. The payments will only be available to active eligible employers established prior to 12 March 2020.

How much do I get?

The calculation is based on tax withheld from employees and is a little bit complex. Generally speaking:

If you pay your PAYGW quarterly, the amount you receive will be

100% of your January - March 2020 PAYGW when you lodge your January to March 2020 Activity Statment. Minimum of $10,000 even if your PAYGW is zero. Maximum of $50,000.
50% of that amount again when you lodge your April to June 2020 Activity Statement (if your entity is still active)
50% of that amount again when you lodge your July to September 2020 Activity Statement (if your entity is still active)

If you pay your PAYGW monthly, the amount you receive will be

300% of your March 2020 PAYGW when you lodge your March 2020 Activity Statment. Minimum of $10,000 even if your PAYGW is zero. Maximum of $50,000.
25% of that amount again when you lodge your April 2020 Activity Statement (if your entity is still active)
25% of that amount again when you lodge your May 2020 Activity Statement (if your entity is still active)
25% of that amount again when you lodge your June 2020 Activity Statement (if your entity is still active)
25% of that amount again when you lodge your July 2020 Activity Statement (if your entity is still active)

How is it paid?

The amounts will be applied as credits in your Activity Statement acocunt with the ATO. If there is remaining credits, they will be refunded in cash.

When do I get it?

The government has indicated that the amounts will be applied following the due date for each Activity Statement

Do I need to register?

No, the payments are automatic.

Can I increase my wages so I get more?

No . The government has introduced a specific integrity rule that is designed to stamp out artificial or contrived arrangements that are implemented to obtain access to this measure. In particular, if an employer or an associate enters into a scheme with the sole or dominant purpose of obtaining or increasing any of the above payments for a particular employer, for a period, the employer will not be eligible for any such payments for the relevant period .

Working From Home? Track Those Deductions!

Tue, 24 Mar 2020 09:52:47 GMT

Tax deductions for home office expenses

If you're an employee who regularly works from home, you may be able to claim a deduction for expenses relating to that work. These are generally home office running expenses, and phone and internet expenses.

Where home is your principal workplace (for example you while you cannot attend your office), you can also claim occupancy costs.

Click here to submit your expenses to us using our purpose-built form

Expenses you can claim

Check out the table below for the expenses you can claim as well as the three ways you can work at home:

Table only available on tablet and desktop view

Running expenses

If you work from home, you can claim the work-related proportion of your running expenses. These include:

home office equipment including computers, printers, telephones and furniture and furnishings.
heating, cooling and lighting.
cleaning costs.
other running expenses including computer consumables (for example, printer paper and ink) and stationery.

Calculating running expenses

There are two ways to calculate your running expenses:

you can claim a fixed rate of 52 cents per hour; or
you can calculate your actual expenses.

Fixed rate

Instead of recording all of your actual expenses for heating, cooling, lighting, cleaning and the decline in value of furniture, you can claim a deduction of 52 cents for each hour you work from home.

This rate is based on average energy costs and the value of common furniture items used in home business areas.

To claim using this method keep records of your actual hours spent working at home for the year, or keep a diary for a representative four-week period to show your usual pattern of working at home.

You need to separately work out all other home work area expenses, such as:

phone and internet expenses
computer consumables and stationery
decline in value on computers or other equipment.

Actual expenses

To calculate actual expenses if you have a dedicated work area, you:

keep a record of the number of actual hours you work from home for the year, or keep a diary for a representative four-week period to show your usual pattern of working at home
work out the cost of your cleaning expenses by adding together your receipts and multiply it by the floor area of your dedicated work area (floor area of the dedicated work area divided by the whole area of the house as a percentage). Your claim should be apportioned for any private use of your home office and any use that other family members make of the home office
work out the cost of your heating, cooling and lighting by working out the following

the cost per unit of power used - refer to your utility bill for this information
the average units used per hour - this is the power consumption per kilowatt hour for each appliance, equipment or light used
the total annual hours used for work-related purposes - refer to your record of hours worked or your diary for this information.

You must also take into account the use of this area by other members of your household, if applicable and apportion your expenses accordingly.

If you don't have a dedicated work area, your expenses for heating, cooling and electricity should be calculated by determining the actual cost of running each unit you used per hour and multiplying that by the hours you worked from home. The amount of the additional expense is generally small. This will particularly be so where there are other people using the area at the same time you are working. In those circumstances there is no additional cost for lighting, heating or cooling.

Occupancy expenses

You can only claim the work-related proportion of your occupancy expenses if:

the space in the home is a place of business, and not suitable for domestic use – for example, a doctor or dentist surgery or a hairdresser studio in the home; or
no other work location is provided to an employee by an employer and the employee is required to dedicate part of their home to their employer's business as an office – you can claim the portion of these costs that relate to a clearly identified place of business.

Occupancy costs include:

rent
mortgage interest
property insurance
land taxes
rates.

Warning To Homeowners

If you claim occupancy expenses, you don't qualify for the capital gains tax (CGT) main residence exemption for the part of your home that you use for work. If you use your home as a place of business there may be CGT implications when you sell it.

Calculating occupancy expenses

If you are eligible to claim occupancy expenses, you can work them out by calculating the:

Total expenses × floor area × percentage of year that part of your home was used exclusively for work

(e.g. If the area you use for work takes up 15% of your home and you used it for work for the whole of the year, you can claim 15% of your occupancy expenses.)

Phone and internet expenses

You can claim a deduction for work-related proportion of your phone and internet expenses. You must have paid for these costs and have records to support your claims.

There are two ways to calculate your phone and internet expenses:

you can claim up to $50 with limited documentation
you can calculate your actual expenses.

You need to keep records for a four week representative period in each income year to claim a deduction of more than $50.

Calculating phone and internet expenses

Claim up to $50

If your work use is incidental and you are not claiming a deduction of more than $50 in total, you may make a claim based on the following, without having to analyse your bills. The rates you can use to work out the cost for your work calls are:

25 cents for calls made from your landline
75 cents for calls made from your mobile
10 cents for text messages sent from your mobile.

Actual expenses

If you have a phone or internet plan where you received an itemised bill, you need to determine your percentage of work use over a four-week representative period that you can then apply to the full year.

You need to work out the percentage using a reasonable basis. This could include:

the number of work calls made as a percentage of total calls
the amount of time spent on work calls as a percentage of your total calls
the time you spent, or data used for work purposes compared to your private usage and that of all members of your household.

If you have a bundled or non-itemised plan, you need to identify your work use for each service over a four-week representative period during the income year that you can then apply to the full year.

Records you must keep

You must keep records of your expenses, such as:

a diary you have created to work out how much you used your equipment, home office and phone for business purposes over a representative four-week period
receipts or other written evidence, including for depreciating assets you have purchased
diary entries to record your small expenses ($10 or less) totalling no more than $200, or expenses you can't get any kind of evidence for
itemised phone accounts from where you can identify work-related calls, or other records, such as diary entries if you don't get an itemised bill.

Use our claim form to submit to us

To make things easy for you, just fill out our Home Office Expenses form and we'll work out exactly what you're entitled to.

Temporary Early Access To Super

Tue, 24 Mar 2020 09:33:45 GMT

As part of the federal government's COVID-19 econcomic stimulus package , early access to super is now available in some circumstances.

How Do You Access Super?

You can get the full rundown from the government's fact sheet , but here's the main points:

You can access $10,000 before 1 July and $10,000 after
You can only get access if you are unemployed, have been made redundant, receive certain centelink payments, or have lost at least 20% of your income since 1 January 2020.
Applications will open mid-April and will only remain open for six months
You will need to apply on myGov. If you don't have a myGov account get one now, just in case!

Should You Access Super?

Access to super is designed as a means of last resort. Further, markets around the world have crashed and withdrawing super may mean crystalising significant losses. As such, you should think very seriously before accessing super.

We strongly urge anyone thinking of withdrawing super to seek independent financial advice before doing so.

We work with a number of financial planners who can give this advice:

Edward Pullen, Byron Capital Investors , (07) 4631 9600
Kent Bond, South Queensland Investment Solutions, (07) 4637 9000
Scott Butler, Edge Specialist Advice Network , (07) 4633 9888
Stuart Southey, Auslife Financial Planning, (07) 4638 0877

RBA enacts emergency rate cut

Fri, 20 Mar 2020 04:22:28 GMT

Second Cut for March To Fight Economic Slowdown

The Reserve Bank has cut rates for a second time this month as efforts continue to contain the economic impact of the coronavirus.

Recognising that the virus has caused major disruptions to economic activity across the world, the RBA announced on Thursday it is slashing rates to 0.25 per cent.

“At some point, the virus will be contained and the Australian economy will recover. In the interim, a priority for the Reserve Bank is to support jobs, incomes and businesses, so that when the health crisis recedes, the country is well placed to recover strongly,” the RBA Governor Philip Lowe said in announcing the decision.

The RBA has also set a target for the yield on 3-year Australian Government bonds of around 0.25 per cent, which will be achieved through purchases of government bonds in the secondary market, starting today.

Mr Lowe confirmed that the RBA will work closely with the Australian Office of Financial Management (AOFM) and state government borrowing authorities to ensure the efficacy of its actions.

The Governor reiterated that Australia's financial system is resilient and well placed to deal with the effects of the coronavirus.

“The banking system is well capitalised and is in a strong liquidity position. Substantial financial buffers are available to be drawn down if required to support the economy. The Reserve Bank is working closely with the other financial regulators and the Australian government to help ensure that Australia's financial markets continue to operate effectively and that credit is available to households and businesses,” he concluded.

Temporary Office Closure

Sat, 14 Mar 2020 03:09:38 GMT

Our COVID-19 Plan

The health and safety of our clients and staff is of top importance to us. As such, we've made the decision to temporarily close our office from Tuesday 17 March as a precaution and to help limit the spread of COVID-19. We will reassess the situation as things progress and hope to re-open after the Easter long weekend.

Rest assured that business will continue as usual, with all our staff available via phone, email or vido conference during this closure. For urgent appointments, special arrangements can be made at our office or at your home or business.

Tax Planning Meetings

As in previous years, we will try and have individual meetings with all of our business clients upon the completion of their March BAS. Where appropriate, we may hold these meetings via telephone or video conference instead of face-to-face.

Govenment Stimulus Measures

The recently announced stimulus package will create extra work for us. We anticipate helping many clients to apply for apprenticeship funding and will re-assess all client's tax situations in light of the new accelerated depreciation measures. If you are thinking of buying new capital assets to take advantage of the increase to the Instant Asset Writeoff, let us know so that we can give you the appropriate advice.

Small Businesses to get cash and tax breaks in stimulus package

Thu, 12 Mar 2020 02:43:23 GMT

Coronavirus support package: cash payments and tax relief for small business

The Government has announced a $15 billion stimulus package targeted at giving an immediate boost to the economy and small business are the big winners.

The instant asset writeoff will be raised from $30,000 to $150,000, and the threshold for access will be increased from $50 million to $500 million. For assets over the $150,000 theshhold, accelerated depreciation will apply.
Small and medium businesses with employees will receive cash payments between $2,000 and $25,000 depending on the size of their payroll. Businesses will receive payments of 50 per cent of their Business Activity Statements or Instalment Activity Statement from 28 April with refunds to then be paid within 14 days.
Small businesses with apprentices or trainees can apply for a wage subsidy of 50 per cent of their wage for up to 9 months from 1 January 2020 to 30 September 2020. Payments will be from 31 March 2020 on a progressive basis, with over 90 per cent of payments expected to be made by mid-April.

The package also includes one-off payments of $750 to pensioners, social security, veteran and other income support recipients and eligible concession card holders.

The Government is also offering administrative relief for certain tax obligations, including deferring tax payments up to four months for businesses directly affected by the coronavirus.

The bulk of the stimulus measures will need to be approved by the federal parliament, which next sits on March 23.

This stimulus plan follows the announcement of $2.4 billion for health measures to combat the coronavirus.

Aussie Cash Rate Hits New All-Time Low

Tue, 03 Mar 2020 05:29:48 GMT

RBA cuts the cash rate to 0.5%

The Reserve Bank of Australia (RBA) has announced its decision on the official cash rate for March amid speculation the fallout from COVID-19 would force the bank to ease monetary policy.

The RBA has announced its fourth rate cut in the past 12 months, slashing an already historically low interest rate to 0.5 per cent.

Today’s announcement follows a reduction to 1.25 per cent in June, 1 per cent in July and 0.75 per cent in October, with the central bank looking to restore market confidence following a 12 per cent reduction in Australian equities in the last seven days.

Before the rate announcement, comparison site Finder surveyed 39 leading economists with 90 per cent believing a rate cut would happen in 2020.

One of the economists who predicted today’s cut, AMP Capital’s Dr Shane Oliver, believes back-to-back disasters are hurting the Australian economy.

“The coronavirus outbreak coming on the back of the bushfires is likely to see the economy go backwards this quarter which in turn is likely to push unemployment up further after the rise to 5.3 per cent seen in January.”

“Growth should rebound in the March quarter but given the uncertainty around Covid-19 and its impact globally there is much uncertainty around that and given we are so far from full employment and the inflation target the RBA is likely to take cut the cash rate again in the months ahead,” Dr Oliver explained.

Today’s cut has brought the official cash rate to 0.50 per cent, just one cut from the point where the RBA would consider instituting a quantitative easing program.

The RBA’s reduction is in line with market expectations internationally with it being widely expected for central banks around the world to ease monetary policy.

Bill Nelson, chief economist at the Bank Policy Institute and a former Fed economist, said the Fed and other major central banks, possibly including China’s, could announce coordinated rate cuts by Wednesday morning. The cut would at least be a half-point and perhaps even three-quarters, he said.

“The only way to get a positive market reaction is to deliver more than expected,” he said.

Large Cash Transactions A Step Closer To Being Outlawed

Mon, 02 Mar 2020 10:23:01 GMT

Government given the green light over $10k cash limit bill

A Senate inquiry has recommended that a controversial bill that will criminalise business cash payments above $10,000 be passed with the proviso that the start date be pushed back, among other recommendations.

The Senate Economics Legislation Committee has recommended that the Currency (Restrictions on the Use of Cash) Bill 2019 be passed, contingent on several recommendations, including a review of existing powers and penalty provisions to ensure that the bill is the “most effective response” to the black economy.

The bill, which proposes to make cash payments above $10,000 a criminal offence with imprisonment of two years and a fine, was originally set to commence from 1 January 2020, but Assistant Treasurer Michael Sukkar has now confirmed that it will not be retrospective in nature and that a new commencement date will be determined in due course.

The measure has been touted to quell black economy behaviour and money laundering by ensuring that entities cannot avoid scrutiny by making large payments in cash.

The Senate committee received 2,659 submissions in its inquiry, with a large number objecting on the basis that the legislated amount of $10,000 may be reduced by future governments, and that Australia may soon find itself in a negative interest rate environment.

However, it dismissed these as “hypothetical scenarios” and only rejected the “the conspiracy inherent in some of the contributions on the bill”.

While accepting concerns around the effect of inflation around a set $10,000 limit, the committee did not believe that an inflation-indexed cash payment limit would be practical to implement.

The inquiry acknowledged concerns from CPA Australia on the necessity of the bill, with the accounting body noting that existing powers were sufficient to address the black economy.

However, it also accepted the viewpoint of Chartered Accountants Australia and New Zealand (CA ANZ) that argued that a $10,000 cash limit would help level the playing field in certain industries, such as building and construction, where cash transactions are common and encouraged.

“Based on the evidence provided, the committee agrees that non-cash payment methods create clearer records; are usually more convenient for consumers and businesses; and increasingly involve lower costs, as they simplify record keeping and avoid the security, insurance and other costs associated with handling and holding cash,” the Senate committee said.

“The committee also acknowledges the importance of cash as legal tender both for transactions and as a store of value. It is important that the government strikes the correct balance in this regard.

“The committee reiterates that, contrary to a number of inquiry participants’ claims, cash will remain legal tender within Australia if the cash payment limit comes into effect, and individuals and businesses will continue to be able to withdraw money, in any denomination, from their bank accounts and hold it outside the financial system.”

It recommended that the government implement a “comprehensive communications strategy to inform the public and business of their responsibilities”, noting that there remains confusion with how the cash payment limit would work at a practical level.

‘Cure worse than the disease’

In a dissenting report by Greens Senator Peter Whish-Wilson, he called for the bill to be dropped, arguing that it chipped away at personal liberties.

“This bill is a classic case of the cure being worse than the disease,” Senator Whish-Wilson said.

“By criminalising the use of legal tender, and by taking a rose-coloured view of a world without cash, this government is blithe to the fundamental freedoms provided by hard currency, and is instead laying down a path towards surveillance capitalism and negative interest rates.”

Instead, he called on the government to show its commitment to fighting tax avoidance by targeting the “big end of town” through revealing the details of settlements between the ATO and companies challenging their tax bill and put an end to high-income earners reducing their tax liabilities by income splitting through discretionary trusts.

Senator Whish-Wilson also called for the government to combat money laundering by closing the exemption for real estate agents, accountants and lawyers from having to report under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.

“AUSTRAC estimates that $1 billion in suspicious transactions flowed through the Australian property market from just one country, China, in just one year, 2016. But AUSTRAC is hamstrung because it has little oversight of the three professions that most facilitate this activity,” he said.

Award Changes in 2020

Fri, 28 Feb 2020 05:48:00 GMT

Employers take note of these new rules

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:

• Banking, Finance and Insurance Award 2010

• Broadcasting and Recorded Entertainment Award 2010

• Clerks – Private Sector Award 2010

• Contract Call Centres Award 2010

• Health Professionals Award 2010

• Hydrocarbons Industry (Upstream) Award 2010

• Horticulture Award

• Hospitality Industry (General) Award 2010

• Legal Services Award 2010

• Local Government Industry Award 2010

• Marine Towage Award 2010

• Manufacturing and Associated Industries and Occupations Award 2010

• Mining Industry Award 2010

• Oil Refining and Manufacturing Award 2010

• Pastoral Award 2010

• Pharmacy Industry Award 2010

• Rail Industry Award 2010

• Restaurant Industry Award 2010

• Salt Industry Award 2010

• Telecommunications Services Award 2010

• Water Industry Award 2010

• Wool Storage, Sampling and Testing Award 2010

Almost all employers employ clerical and administrative employees. Therefore, given that the Clerks – Private Sector Award 2010 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:

• which provisions of the modern award that apply to them will be satisfied by payment of an annualised wage

• the mathematical method by which the annualised wage has been calculated, including specification of each separate component of the annualised wage and any overtime or penalty assumptions used in the calculation

• the outer limit number of ordinary hours which would attract the payment of a penalty rate under the award and the outer limit number of overtime hours which the employee may be required to work in a pay period or roster cycle without being entitled to an amount in excess of the annualised wage under the award

• any excess hours of work that will not be covered by the annualised wage for which separate payments under the award would apply.

Employers are required by the new clauses to implement payroll and HR practices to ensure employees are at all times adequately compensated by the annual wage, including:

• Annual calculations of what the employee would have been paid under the award compared with the annualised wage actually paid, and perform reconciliations and back-pay any shortfalls within 14 days

• Keep a record of the starting and finishing times of work, and any unpaid breaks taken, of each employee subject to an annualised wage arrangement in order to perform the calculations and reconciliations

• Records must be signed by employees or acknowledged as correct in writing (including by electronic means) each pay period or roster cycle

Why have the changes been introduced?

It is common practice for employers to pay an overall annual remuneration to award covered employees which is intended to “set-off” and absorb all modern award monetary entitlements such as minimum wages, overtime rates, penalty rates and loadings that are otherwise separately payable under an award. Few employers audit these annual salaries on an annual basis to ensure the overall remuneration does in fact compensate employees for each individual award entitlement that falls due.

The new award obligations introduced by the Fair Work Commission are aimed at ensuring that award covered employees are properly compensated for the work they perform by ensuring annual remuneration received is adequately calculated and monitored to capture the full range of monetary benefits applicable under modern awards for the particular work performed.

How to comply?

The first step to ensure compliance is to understand which modern awards apply to your workplace, including the new changes, and whether employees are currently paid correctly for the work they perform.

Secondly, amendments to employment contracts and adjustments to HR and payroll practices are highly likely to be the most practical and efficient way to comply with the obligations imposed with effect from 1 March 2020.

Enterprise agreements

The new provisions in the modern awards will set the “base line” for the “better off overall test” in determining if an enterprise agreement should be approved by the Fair Work Commission and as such, will need to be considered in the context of bargaining for new enterprise agreements.

Failure to comply

From 1 March 2020, a failure to comply will amount to a breach of a modern award—colloquially referred to by the media as “wage theft”— and will attract civil penalties under the Fair Work Act 2009 (Cth).

Need help?

Get in touch with us for a payroll review to ensure all your employees are being paid correctly.

It's Time To Fix Unpaid Super

Fri, 28 Feb 2020 05:37:12 GMT

Unpaid super amnesty bill passes Parliament

The Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill 2019 gives a one-off amnesty to employers, offering them an opportunity to get up to date with outstanding super payments to current and past employees, without being slugged with the harsh penalties that usually apply.

"This policy is all about reuniting hardworking Australians with their super," Assistant Minister Jane Hume said. "We anticipate at least $160 million of super will be paid to Australian workers who would otherwise miss out."

Since the one-off amnesty was originally announced in 2018, over 7,000 employers have already come forward to voluntarily disclose historical unpaid super.

The Treasury now estimates an additional 7,000 employers will come forward in the next six months before the amnesty ends.

"Employers will not be off the hook. To use the amnesty, they must still pay all that is owing to their employees, including the high rate of interest. However, the amnesty will make it easier for workers to secure the super they are owed by not hitting employers with the penalties usually associated with late payment," Ms Hume reminded.

"If employers do not take advantage of the amnesty, they will now face significantly higher penalties when they are caught – in general, a minimum 100 per cent penalty on top of the SG shortfall they owe, and up to 200 per cent for the most serious cases."

In addition, throughout the amnesty period the ATO will still continue its usual audit and enforcement activity against employers for historical obligations they do not own up to voluntarily.

The amnesty will expire six months after the day the bill receives royal assent.

"We encourage employers to check they don’t owe outstanding super – and if they do, to take advantage of this once-only opportunity to set things right before much tougher penalties apply," Ms Hume concluded.

To take advantage of this opportunity and get your superannuation up to date for your workers, contact us .

Hubdoc is coming to Xero plans

Fri, 21 Feb 2020 01:13:03 GMT

Hubdoc will soon be in your Xero

From 18 March 2020, you can say goodbye to manual data entry and spend more time running your business because Hubdoc will be included in Xero Starter, Standard and Premium plans.

Getting started with Hubdoc will be easy

On 18 March, there will be a link to Hubdoc in your Xero organisation dropdown menu. Just sign in with your Xero login and follow the steps.

What is Hubdoc anyway?

Hubdoc is a data capture solution that gives your business the tools to easily capture bills and receipts. Once documents have been seamlessly uploaded to Hubdoc, the key data is extracted and synced to Xero as accurately coded transactions with the source documents attached. Hubdoc transactions are automatically matched to the corresponding transaction in the Xero bank feed, ready for one-click reconciliation.

What if I don't use Xero?

Want the benefits of Hubdoc but not using Xero? Never fear! Hubdoc can also integrate with Intuit QuickBooks Online. Talk to us today about getting Hubdoc set up and added to your QuickBooks subscription.

I like the sound of Hubdoc but need more help!

If you'd like to start using Hubdoc but aren't sure how, never fear. We're offering Hubdoc setup and training sessions. Simply get in touch with us to book in a time that's convenient for you.

Have you got your myGovID?

Fri, 21 Feb 2020 00:08:56 GMT

The New Business Portal Login

The ATO has confirmed that AUSkey and Manage ABN Connections will cease at midnight (AEDT) on Friday 27

March 2020.

The introduction of myGovID will enable business owners to be more agile with mobile solutions available at their

fingertips, easy access anytime, anywhere. myGovID is already appearing as the default option when logging in

to online services, though you will still be able to your AUSkey until it ceases on 27 March 2020.

myGovID is the Australian Government's new digital identity provider; essentially the digital version of the 100

point ID check. It is a portable way to prove your identity when using government services online, and once set

up this credential will be available on a tablet or mobile device.

RAM is a new Australian Government authorisation service that allows you to act on behalf of an entity with

participating government online services.

The government’s intention to replace AUSkey with myGovID was to overcome the limitations and mobility

issues experienced since its introduction in 2010, following years of complaints about the restrictions and failure

to keep up with changes in technology.

Over time, myGovID will extend to more government services, those who are already set up can start using it to

Business portal – for businesses to report and manage their tax and superannuation

Australian Business Register (ABR) – to update and manage authorisations at the ABR website

ATO Access Manager – for customising access and permissions for ATO online services

Employer support payment scheme – the online claim system for employers of defence reservists and

self-employed reservists

If you currently use an AUSkey, you will need to transition to myGovID prior to Friday 27 March 2020.

What do you need to do?

1. Ensure your ABN details are up to date in the Australian Business Register

Go to the ABR website and select ‘Update your ABN details’

2. Ensure AUSkey details are correct

If you have nominated other users to act on behalf of your business you should check if the issued AUSkeys are still correct.

3. Download the free myGovID app from the official app store

The myGovID app is compatible with most smart devices using: iOS 10 or later on Apple devices

Android 7.0 or later

Once downloaded, open the myGovID app on your phone and follow the prompts to complete your set

up. You’ll need to confirm your identity by providing details of identity documents.

4. Link your MyGovID with your ABN using RAM

To do this you’ll need to be the principal authority for the business or entity, such as:

A sole trader

An eligible individual associate (eg. director) listed on an Australian Business Number (ABN) in

the Australian Business Register (ABR)

A primary person (where there are no individuals listed in the ABR for example a Trust with a

corporate trustee that does not have an ABN or an Australian charity)

Using your myGovID, log in to RAM and link the ABN. Once linked, the principal authority can then set

up authorisations for employees and others to act on behalf of the business who will then accept the

authorisation in RAM.

5. Authorise employees and others in your Business

If you have employees or other individuals that access online services on behalf of your business, you

will need to authorise them and set their access level in RAM.

Your authorised users will also need a myGovID to log in to RAM and accept the authorisation.

More Information

If you need assistance with setting up your MyGovID contact us so we can assist with you individual situation.

It's time to move to Single Touch Payroll

Sun, 02 Feb 2020 17:27:29 GMT

It's time to move to Single Touch Payroll

It’s not too late to join the other 550,000 employers who are reporting through Single Touch Payroll (STP), but time is running out.

If you aren’t reporting through STP, we can start by:

finding a software solution that’s right for you.

asking for a concession. This could be reporting quarterly at the same time as your activity statement.

*Eligibility will depend on your circumstances.

asking for more time if you're not ready.

We understand that it takes time to transition to STP, but there are a range of options to assist your transition.

If you have been affected by a natural disaster, there is additional support available and we will help you sort out your tax affairs with the ATO

As a registered tax agent Haslam Consulting & Accounting can help you with your tax & payroll needs.

Beware It's Tax Scam Season

Tue, 17 Dec 2019 17:23:15 GMT

Beware It's Tax Scam Season

With over $2.1 million paid to scammers impersonating the ATO this year, the Tax Office is warning of yet another spike as tax payments deadlines draw near.

The latest ATO scam reports show that 622 taxpayers had paid over $2.1 million to scammers pretending to be from the Tax Office this year alone.

That amount was matched in just three months from November 2018 to January 2019, leading the ATO to issue a high alert.

ATO impersonation scams often increase at the end of the year because scammers take advantage of ATO deadlines during this period to make their claims seem more believable.

ATO assistant commissioner Karen Foat is wary of yet another spike in scams this year-end, warning that scammers often exploit key dates to make their threats more believable.

She says scams are becoming much more sophisticated and that anyone who is unsure about the legitimacy of a demand for payment should contact their tax agent.

Ms Foat also warned of the lengths scammers would go to in order to dupe taxpayers, deploying a wide variety of methods at their disposal.

“We see these ATO impersonation scams by phone, email, SMS and even through message apps such as WhatsApp,” Ms Foat said.

“We’ve also recently spotted scammers using the cardless cash feature offered by many banks. Through this feature, victims are sent codes to withdraw cash from an ATM, which they then read out to the scammer.”

“In October, we also saw a spike in email and SMS scams, often asking people to update their personal details. These scams usually contain links to fake online services to get personal information that enables scammers to steal your identity.”

Earlier this year, the Australian Consumer and Competition Commissioner projected scam losses to exceed $532 million by the end of the year, surpassing half a billion dollars for the first time.

In 2018, over $489 million was lost to scammers, with ATO impersonation scams contributing to over $2.8 million in losses.

A total of 114,625 ATO impersonation scams were reported in 2018, with over 21,000 potentially compromised personal identities.

Bushfire Affected?

Thu, 12 Dec 2019 17:11:31 GMT

Affected By Bushfire?

Affected By Bushfire? Tax Help Is Available.

The ATO offers a range of services to those affected by bushfires.

The help available includes:

• Extra time to pay a tax debt or lodge forms

• Assistance with finding lost TFNs

• Get copies of tax returns or activity statements re-issued

• Assistance with re-construction tax records that are lost or damaged

• Fast-tracked refunds

• Payment plans tailored to individual circumstances (including interest-free periods)

• Remission of penalties or interest charged curing the time you are affected by a bushfire.

The ATO has also granted automatic deferrals to taxpayers in the Toowoomba Region postcodes of 4314, 4350, 4352, 4353, 4354, 4355, 4356, 4357, 4358, 4359, 4360, 4361, 4363, 4364, 4365, 4400, 4401, 4402, 4403, 4404, 4405, 4407, 4614.

If you would like help to access any of the ATO’s bushfire services or would like more information, get in contact with us HERE

230 Dob-In Calls Per Day!

Sun, 08 Dec 2019 16:54:13 GMT

230 Dob-In Calls Per Day!

The Australian Taxation Office has revealed it received a record-breaking 15,000 tip-offs to its Tax Integrity Centre in the first quarter of this financial year as the agency continues its crackdown on the black economy.

That equates to a staggering 230 tip-offs per day from concerned informants keen to dob in tax dodgers who refuse to pay their fair share.

In one day in early August alone the ATO received almost 300 tip-offs.

According to the ATO, the most common tax rorts include not declaring income, not reporting sales, demanding cash from customers and paying workers “cash in hand” and having a lifestyle which does not match income.

The hospitality industry – which employs more than 800,000 people – is the biggest offender, followed by the hairdressing and beauty, building and construction, and cleaning industries.

Examples of tip-offs from concerned citizens include a man who built a new house and bought a new car despite “supposedly having $0 income” and a mobile hairdressing and makeup business owner who boasted about fancy holidays and “expensive designer clothes” and jewellery – while getting paid cash in hand with an ABN that didn’t match the business names.

Another was dobbed in for continually selling expensive items including cars on Facebook and Gumtree while not lodging a tax return in nearly a decade.

And earlier this year, a 31-year-old Indian national who was in Australia studying computer networking was sentenced to two years and three months in prison for his involvement in a tax fraud and crime scheme which was first reported via a tip-off from the community.

The black economy is estimated to be as large as $50 billion a year – or around three per cent of Gross Domestic Product.

ATO assistant commissioner Peter Holt recommends those who have made an honest mistake should talk to a tax professional and “immediately come forward” to make a voluntary disclosure.

He also said those intentionally doing the wrong thing were on borrowed time.

“A tip-off from the community could be the missing piece of the puzzle we need to successfully audit or prosecute someone who is illegally operating in the black economy, so we really value and rely on the community letting us know when something doesn’t add up,” he said.

A record 53 per cent of people who provided a tip-off in the first quarter of the financial year provided their contact details to the ATO, a significant increase from the previous period.

The ATO plans to visits 10,000 businesses this financial year as part of their strategy to deal with the black economy.

It’s Not Too Late To Get A Better Refund

Wed, 06 Nov 2019 21:37:40 GMT

It’s Not Too Late To Get A Better Refund

Following the announcement of the new Low and Middle Income Tax Offset and the hype that surrounded it at the start of the tax year, income tax lodgements through MyTax rose 11% this year, but average tax refunds rose only slightly and more returns have needed to be corrected.

Industry experts have suggested that the difficulty of using the deductions section of MyTax, the rush to lodge returns this year and confusion and fear about what can be claimed are responsible for the lacklustre refunds.

“It’s tied to the offset.” said one leading tax commentator “People rushed to lodge their returns, particularly through myTax and particularly in July, and a lot of people ended up simply not claiming things they could claim – and in some cases, they didn’t claim anything at all.”

But the good news is that people who missed out on claiming things they were entitled to have two years to amend their return from the date they lodged.

If you lodged your own return and would like it reviewed by an expert to see if there’s more deductions you’re entitled to, get in contact with us.

If the ATO then determines you are eligible for more cash, the extra amount will simply be paid into your account just like your regular refund is.

Come In To The Light

Wed, 09 Oct 2019 21:19:27 GMT

Come In To The Light

The ATO recently announced a new crackdown on the “black economy” to “close the tax gap” in small business, which they estimate is over $11 billion. This means that the ATO is actively looking for people who don’t lodge. If you’re one of them, it’s time to get caught up.

We regularly meet new clients who haven’t done their tax for some time. This can range from being a year to two behind, to being decades behind. People in this situation are generally afraid and uneasy. But we’re here to help.

People often fall behind on taxes because they’ve lost the data to do their returns or because they missed a lodgement and didn’t know how to catch it up. Often being one return behind can snowball into a bigger problem.

We can help you get sorted out. Whether it’s business taxation or personal taxation, there are a range of techniques and tools we can use to help fill in the blanks and get you back on track. If you’re worried about having a debt once you do lodge, we can help there too. We are able to help you negotiate payment terms and plans with the ATO that suit your cashflow.

We have helped many clients get caught up and the sentiment once they’re done is always one of relief at the end. So don’t worry and delay any longer, get in touch with us and let us help you into the light.

myGovID Is Coming

Tue, 08 Oct 2019 12:11:41 GMT

myGovID Is Coming

myGov ID is the new way to be verified and log into government services. It is not the same thing as myGov. It's something new.

myGov ID requires you to verify yourself to an app on your Apple or Android device and to use a code generated by that device to log into government portals, such as the ATO Business Portal.

myGov ID is already available on Apple devices and will soon be launched on Android devices. In 2020 myGov ID will completely replace Auskey and will be the only way to access the portal.

If you require assistance with getting your myGov ID set up, please contact us!