S & H Tax Accountants

Author: Bizink

  • 4 Ways to Make the Most of Business Down Time

    4 Ways to Make the Most of Business Down Time

    Every business experiences slow periods when the market for their goods or services lessens and sales drop. Business owners might be tempted to view down times as unproductive or wasted, but there are ways you can make the most of your business during these seasons.

    Here are four ways to ensure this time isn’t wasted.

    Man Clicking Icon House 1134 149

    Take a good look at your business

    When things are busy it gets easy to fall into a habit of taking care of day-to-day tasks and forgetting about your overall business picture. Slower times are a great opportunity to step back from the daily grind and ask yourself if your business is still moving towards its goals, what opportunities or challenges are on the horizon, and whether it’s time to try something new.

    Examine various aspects of your business, such as your marketing and sales, to see if they’re all working together or if they need revising. Is your social media account information still accurate? Do you have unanswered emails to respond to? When was the last time you posted on your blog? Should your website be updated?

    This is a great time to take care of those tasks that have been put off for far too long.

    Get bold with your marketingWhen business is booming, entrepreneurs often prioritize tasks that are directly related to profits, and other activities—such as marketing—take a back seat. Rather than using downtimes to catch up, use them to experiment with new tactics. Have you tried creating marketing videos? Used Instagram Live? Sent out direct mail?

    Write blog and social media posts ahead of time. Strategize your next marketing campaign and commit to posting on social media every day. If you have time, build up a backlog of posts so when things get busy again you have pre-written content.

    You can also use this time to learn tactics and tricks you may not fully understand. If you like writing your own marketing materials but don’t understand search engine optimization (SEO) or Google Analytics this is a good time to learn about them. Professional development now can help you in the future.

    Implement new policies and procedures

    If there are changes you want to make in your business, slower times are often a good opportunity to try them. That way, you have the chance to review the modifications and whether they work well for you before they cause a massive headache.

    Are you considering switching shipping companies? Do you want a new web hosting service? Are you looking to automate some client-facing activities? Make these changes during a slow period to get a good feel for how well they work. At least then you can address challenges that arise before things get busy and you’re left dealing with a lot of upset customers.

    Connect with your community

    Quieter periods are a perfect time to get more involved with your community and do some good. Find a local organization that you care about—or that’s related to the work your business does—and partner with them. You could sponsor an event or a seminar, or even run a fundraising drive.

    Not only will you have something to talk about on your social media, you’ll engage customers that care about purchasing from companies that do good. These days, that’s important to a lot of consumers. According to Forbes, 88% of consumers will be more loyal to a company that supports social or environmental issues, and 87% will have a more positive image of a company that supports social or environmental issues.

    Final thoughts

    Remember that business won’t always be slow, so don’t panic when things get quiet. Take the opportunity to reflect on your business, make necessary changes, try new marketing tactics and connect with your community. Doing so can help you make the most of your downtime so your business can rebound more effectively.

  • 10 more quick growth tips for small business owners

    10 more quick growth tips for small business owners

    Help grow your business through collaboration, expansion, improved marketing and some of the following quick tips.

    (more…)

  • How to build a business you can sell

    Many entrepreneurs start their business with the goal of earning an income for themselves, but they often think of the business only in terms of them running it.

    In truth, there is a huge benefit to starting a business either with the goal of selling it or at least setting it up so it can be sold at some point in the future. You don’t have to plan on making a fortune off the sale, but the efforts that go into creating a sellable company will also increase the chances your company thrives while you’re in charge.

    Here are some things you can do to increase the chances your business can successfully be sold.

    1. Put effort into it

    Whether you plan on staying in your business for a long time or are looking to sell as soon as possible, you need to run your company as though you’ll be around for a long time. A sellable business is one that is thriving, which takes time and energy. Don’t start up a business to sell if you think you can give it a fraction of your attention before you walk away. That could lead to a scenario in which no one wants to buy your company.

    Invest effort in your company and you’re more likely to be rewarded with a business that people want to buy, and pay top dollar for.

    2. Keep your arrangements simple

    Complicated financial arrangements make selling a business more difficult. If there are too many investors who have different ideas about how the business should be managed, or when it can be sold, you may find yourself unable to sell even if you truly want to.

    If you are involved in partnerships, make sure you are all on the same page about the circumstances that will lead to a sale. Ensure that your financial ties and arrangements are transparent, so buyers aren’t surprised when they complete their due diligence.

    3. Develop standard operating procedures

    You may like to take care of everything yourself, but that’s not practical if you want a business that thrives—and one that can be sold. To sell your business, you need procedures that can be done by anyone, regardless of whether you’re in the picture or not.

    Developing and writing out standard operating procedures helps your current team run the business in your absence and makes your business more attractive to potential buyers.

    4. Consider the conditions that would make you want to sell

    Even if you don’t intend to sell your business, life can get in the way. A variety of circumstances can make it so you need or want to sell your company. Rather than making an emotional decision in the heat of the moment—which could result in you getting far less than you should—think about the circumstances and conditions that could lead to you selling your business.

    What life circumstances would cause you to sell? Divorce? Illness? Retirement? What about the financial circumstances? Is there a minimum amount you want to get out of your business if you do sell? Would you sell right away if someone walked through the door and offered you X amount of dollars? Would you sell if the business were no longer making you happy? If so, what does that look like for you? What are the indicators you’re no longer satisfied with owning your company?

    Keeping these circumstances in mind makes it less likely you’ll make an emotional decision and more likely you’ll make a rational one.

    Final thoughts

    Regardless of whether or not you plan to sell your business, running your company as though you will one day helps create a successful, thriving organization that is much easier to find buyers for.

    That’s important because you never know what the future will bring.

    Contact us to find out how we can help you build and sell a valuable business.

  • Important Change for Employers: Superannuation Guarantee increasing to 10% on 1 July 2021

    A Quick Overview

    The Superannuation Guarantee (SG) is scheduled to increase to 10% from 1 July 2021. If you have employees, you need to be ready for this legislated increase.

    What is Superannuation Guarantee?

    The Superannuation Guarantee is the minimum super an employer must pay to their employees super fund. The current SG percentage rate is 9.5% of employees Ordinary Time Earnings, but this is changing.

    Ordinary Time Earnings or OTE, is generally what your employees earn for their ordinary hours of work. It includes commission, loadings and allowances but does not include overtime or reimbursements. The ATO’s checklist will help you categorise OTE, but you can ask us if you have questions.

    What is changing?

    The Superannuation Guarantee rate is increasing to 10% from 1 July 2021. It will continue to increase by half a percent each year until it reaches 12% on 1 July 2025.

    What do you need to do?

    • Firstly, you should speak to your payroll software provider to make sure they are on top of this rate change. Your accountant or bookkeeper may also be able to help.
    • Review any individual agreements with an SG rate of more than 9.5%, but less than 10%.
    • Notify your employees as they may need to review their Salary Sacrifice or after-tax contributions arrangements.
    • Update Remuneration Packages as it could mean a pay decrease for employees.
    • This is also a good opportunity to do some housekeeping to ensure your super obligations have been met (including super payments and calculations).

    Why is this important?

    As an employer, it’s important to ensure you pay super at the new minimum rate. There are financial penalties applied for not meeting your SG obligations.

    The Superannuation Guarantee Charge (SGC) is the penalty charged when employers don’t pay :

    • the required super guarantee contributions for eligible employees,
    • super contributions by the payment cut off date or
    • super to each employee’s chosen super fund.

    More changes expected from the 2021 Budget

    Treasurer Josh Frydenberg announced future super changes in the 2021 Federal Budget. Under the current superannuation arrangements, if an employee earns less than $450 per month from one employer, they are not entitled to receive the superannuation guarantee. The $450 threshold is set to be scrapped so employees will be entitled to employer-paid superannuation, regardless of how much money they earn.

    This Government has indicated they expect this to come in before July 2022. We will keep you updated.

    Got a question?

    Get in touch with us if you need any help or have any questions.

  • Federal Budget 2022: What it means for you

    Federal Budget 2022: What it means for you

    Treasurer Josh Frydenberg has released the 2021-22 Federal Budget and confirmed Australia’s economy is performing more strongly than was expected six months ago. This article has a summary of the “Winners and Losers” of the Budget and we’ve compiled a recap of the key points below. Get in touch with us if you have any questions. 

    A Quick Overview

    • This budget assumes our international borders won’t reopen until mid-2022.
    • $1.9 billion has been allocated for our vaccine strategy over the next 5 years, with money set aside for production of mRNA vaccine in Australia. 
    • The Low and Middle Income Tax Offset has been extended for another year. 
    • The instant asset write-off has been extended for eligible businesses. 
    • Superannuation changes planned including repealing the work test for voluntary contributions and expanding the First Home Super Saver Scheme.
    • $17.7 billion in funding for aged care including home care packages and a Basic Daily Fee.
    • More than a billion dollars will go towards the Childcare Subsidy Scheme. 
    • There is funding for women’s health programs including cervical and breast cancer screening, depression services for new mothers, endometriosis education and programs to reduce domestic and family violence.
    • The JobTrainer program and apprentice and trainee wage subsidy programs have been expanded.
    • Billions will be invested in Mental Health programs including early intervention and aftercare.
    • Farmers to benefit from the asset write-off, biosecurity measures and National Soil Strategy rebates.
    • Funding for startups, particularly medical startups, has been announced. This is designed to make Australia an attractive place to start and grow a business. 
    • The budget includes tax relief for small brewers and distillers.

    The Virus

    As expected, the government has expanded funding for our vaccine strategy, with $1.9 billion set aside for the next five years. A pool of money is also allocated to invest in mRNA vaccine production in Australia. There is also an additional $1.5 billion for COVID-related health services like testing and contact tracing.

    Tax Offset Extended

    The “Low and Middle Income Tax Offset” will remain in place for another year. The tax rebate, which is received after completing your tax returns, depends on your income group. Read more about the offset here, or get in touch with us for more details.

    Asset write-off extension for businesses

    Last year’s asset write-offs are being extended by another 12 months. This means businesses with a turnover of up to $5 billion will be able to write off the full value of any eligible asset. This might be a work vehicle or piece of equipment you’ve bought between the last October budget and June 30, 2023.

    The extension also means any losses incurred up to June 2023 can be offset against prior profits made going back to the 2018-19 financial year.

    Super

    Relaxed residency changes for SMSFs

    This budget confirms the Government will relax residency requirements for SMSFs and small APRA-regulated funds by extending the central control and management test safe harbour from two to five years. The active member test will also be removed, allowing members who are temporarily absent to continue to contribute to their SMSF.

    Removing the work test for voluntary contributions

    Individuals aged 67 to 74 will be able to make non-concessional or salary sacrifice contributions without meeting the work test, subject to existing contribution caps and existing total superannuation balance limits. This change is designed to boost the balances of those who haven’t had the long-term benefits of compulsory superannuation.

    Age for downsizer scheme reduced

    The minimum age for those eligible for the downsizer scheme will be reduced from 65 to 60. The scheme allows a person to make a $300,000 contribution to their superannuation fund after the sale of their home, if they have lived there for 10 years. It is intended to encourage older people to sell family homes, freeing up property for younger generations.

    Changes to threshold for superannuation guarantee eligibility

    Australians earning less than $450 a month will receive superannuation payments following the removal of the income threshold.

    First Home Super Saver Scheme

    First home buyers will be able to access up to $50,000 of additional voluntary concession and non-concessional contributions from their superannuation funds, which is up from $30,000. 

    The First Home Super Saver Scheme is designed to help first home buyers raise a deposit quicker. 

    Pension Loans Scheme

    Funding has been allocated to improve uptake of the pension loans scheme. This scheme is a voluntary, reverse-mortgage type loan to assist older Australians to unlock equity in their houses and boost their retirement income. 

    Aged Care

    The Royal Commission into aged care made it very clear that Australia’s aged care system needs improvement. In response, the Government has put a significant amount ($17.7 billion) towards aged care over the next five years. The money will be spent on 80,000 new home care packages and there’ll be a government-funded “Basic Daily Fee” supplement of $10 per resident a day for providers to improve care and services. 

    There is also money allocated to make it easier for seniors to navigate the aged care system, including funding for a new star rating system to make the performance of aged care providers clearer.

    Childcare

    Another “winner” here with $1.7 billion over the next three years for the childcare industry. This will go toward changes to the Childcare Subsidy Scheme (starting July 2022). If you have one child in childcare, the subsidy stays at 65 per cent but if you have two or more, it’s 95 per cent for each child. 

    International Tourism

    The last budget in October was based on assumptions that international borders would begin gradually reopening towards the end of 2021. Given the slow vaccine rollout and ongoing outbreaks overseas, the government is now saying the border won’t open until at least mid-2022. 

    This is bad news for tourism operators who rely on international visitors. Last year’s budget included $60 million to help some tourism businesses diversify their markets, but there’s little extra support this year.

    Women’s Health

    The Federal Government is allocating $354 million for women’s health which will cover a variety of initiatives including improving cervical and breast cancer screening programs, depression services for pregnant women and new mothers, screening of embryos during IVF, reducing pre-term birth rates, especially among Indigenous communities, reducing eating disorders and other health initiatives including endometriosis education and pain management programs. 

    There is also $998 million for reducing domestic and family violence, supporting survivors and a trial program has been announced which gives women fleeing violent relationships up to $5,000 in assistance, split into a $1,500 payment and $3,500 in expenses like rent, legal fees and furniture.

    To help women when it comes to retirement, the government is now introducing a scheme where employees who earn less than $450 a month will be paid the superannuation guarantee. More details on the Women’s Health funding can be found here. 

    Youth and employment schemes

    An additional $500 million over two years will be directed to the JobTrainer program to create around 163,000 places and reduce the youth unemployment rate. The JobTrainer scheme unveiled last year is a government plan to drive job creation by up-skilling school leavers or people who are unemployed through free or low-fee courses.

    The supporting apprentices and trainees wage subsidy scheme is also being extended. This program reimburses employers 50 per cent of an apprentice’s or trainee’s wage for the first year, up to a cap of $7000 per quarter.

    Mental Health

    An additional $2.3 billion will be invested into the National Mental Health and Suicide Prevention Plan. There’s funding set aside for early intervention, including a new digital platform to provide online counselling. $298 million will go directly towards suicide prevention with federal government aiming to with the states and territories to fund aftercare for every person discharged from hospital after a suicide attempt. The majority of the funding will go to treatment though, with a new national network of mental health treatment centres for adults, youth and kids to be set up.

    There is also money allocated to increase the workforce, offering scholarships and clinical placements for nurses, psychologists and allied health practitioners in the mental health space.

    Support for Farmers

    Our farmers can benefit from the asset write-off (extended until June 2023) but there’s also $200 million allocated for a National Soil Strategy which includes rebates for farmers that share soil testing results. The government will also waive almost $15 million of debt owed by more than 5,000 farmers receiving the Farm Household Allowance from Centrelink.

    Medical Start Ups

    A new tax program has been announced which is aimed at encouraging medical and biotech companies to stay in Australia while they develop and then sell their ideas. The “patent box tax regime” will tax any income from a company’s patent at a concessional rate of 17 per cent starting from July 1, 2022.This is compared to 30 per cent tax rate for large businesses and 25 per cent for small-medium businesses. 

    The government is focusing on start up businesses with $500 million in other new measures to make Australia an ideal place for businesses, including reducing red tape and encouraging employee share schemes.

    Tax relief for small brewers and distillers

    A win for the little guys here with small brewers and distillers getting more help this year. From July 1 2021 anyone who is eligible will be handed back up to $350,000 worth of taxes.

    Gaming

    A 30% refundable Digital Games Tax Offset has been announced to attract more of the global game market to Australia. To get the offset, eligible businesses have to spend at least $500,000 on certain games expenditure. The finer details are still being decided.

     

    There are a few more measures announced which we haven’t covered off here. Feel free to read more in this article.

    Please get in touch with us if you have any questions. 

  • Federal Budget 2021: What it means for you

    Federal Budget 2021: What it means for you

    Treasurer Josh Frydenberg has released the 2021 Federal Budget and confirmed Australia’s economy is performing more strongly than was expected six months ago. This article has a summary of the “Winners and Losers” of the Budget and we’ve compiled a recap of the key points below. Get in touch with us if you have any questions.

    Entrepreneur Working With Bills 1098 20001

      A Quick Overview

    • This budget assumes our international borders won’t reopen until mid-2022.
    • $1.9 billion has been allocated for our vaccine strategy over the next 5 years, with money set aside for production of mRNA vaccine in Australia.
    • The Low and Middle Income Tax Offset has been extended for another year.
    • The instant asset write-off has been extended for eligible businesses.
    • Superannuation changes planned including repealing the work test for voluntary contributions and expanding the First Home Super Saver Scheme.
    • $17.7 billion in funding for aged care including home care packages and a Basic Daily Fee.
    • More than a billion dollars will go towards the Childcare Subsidy Scheme.
    • There is funding for women’s health programs including cervical and breast cancer screening, depression services for new mothers, endometriosis education and programs to reduce domestic and family violence.
    • The JobTrainer program and apprentice and trainee wage subsidy programs have been expanded.
    • Billions will be invested in Mental Health programs including early intervention and aftercare.
    • Farmers to benefit from the asset write-off, biosecurity measures and National Soil Strategy rebates.
    • Funding for startups, particularly medical startups, has been announced. This is designed to make Australia an attractive place to start and grow a business.
    • The budget includes tax relief for small brewers and distillers.

    The Virus

    As expected, the government has expanded funding for our vaccine strategy, with $1.9 billion set aside for the next five years. A pool of money is also allocated to invest in mRNA vaccine production in Australia. There is also an additional $1.5 billion for COVID-related health services like testing and contact tracing.

    Tax Offset Extended

    The “Low and Middle Income Tax Offset” will remain in place for another year. The tax rebate, which is received after completing your tax returns, depends on your income group. Read more about the offset here, or get in touch with us for more details.

    Asset write-off extension for businesses

    Last year’s asset write-offs are being extended by another 12 months. This means businesses with a turnover of up to $5 billion will be able to write off the full value of any eligible asset. This might be a work vehicle or piece of equipment you’ve bought between the last October budget and June 30, 2023.

    The extension also means any losses incurred up to June 2023 can be offset against prior profits made going back to the 2018-19 financial year.

    Super

    Relaxed residency changes for SMSFs

    This budget confirms the Government will relax residency requirements for SMSFs and small APRA-regulated funds by extending the central control and management test safe harbour from two to five years. The active member test will also be removed, allowing members who are temporarily absent to continue to contribute to their SMSF.

    Removing the work test for voluntary contributions

    Individuals aged 67 to 74 will be able to make non-concessional or salary sacrifice contributions without meeting the work test, subject to existing contribution caps and existing total superannuation balance limits. This change is designed to boost the balances of those who haven’t had the long-term benefits of compulsory superannuation.

    Age for downsizer scheme reduced

    The minimum age for those eligible for the downsizer scheme will be reduced from 65 to 60. The scheme allows a person to make a $300,000 contribution to their superannuation fund after the sale of their home, if they have lived there for 10 years. It is intended to encourage older people to sell family homes, freeing up property for younger generations.

    Changes to threshold for superannuation guarantee eligibility

    Australians earning less than $450 a month will receive superannuation payments following the removal of the income threshold.

    First Home Super Saver Scheme

    First home buyers will be able to access up to $50,000 of additional voluntary concession and non-concessional contributions from their superannuation funds, which is up from $30,000.

    The First Home Super Saver Scheme is designed to help first home buyers raise a deposit quicker.

    Pension Loans Scheme

    Funding has been allocated to improve uptake of the pension loans scheme. This scheme is a voluntary, reverse-mortgage type loan to assist older Australians to unlock equity in their houses and boost their retirement income.

    Aged Care

    The Royal Commission into aged care made it very clear that Australia’s aged care system needs improvement. In response, the Government has put a significant amount ($17.7 billion) towards aged care over the next five years. The money will be spent on 80,000 new home care packages and there’ll be a government-funded “Basic Daily Fee” supplement of $10 per resident a day for providers to improve care and services.

    There is also money allocated to make it easier for seniors to navigate the aged care system, including funding for a new star rating system to make the performance of aged care providers clearer.

    Childcare

    Another “winner” here with $1.7 billion over the next three years for the childcare industry. This will go toward changes to the Childcare Subsidy Scheme (starting July 2022). If you have one child in childcare, the subsidy stays at 65 per cent but if you have two or more, it’s 95 per cent for each child.

    International Tourism

    The last budget in October was based on assumptions that international borders would begin gradually reopening towards the end of 2021. Given the slow vaccine rollout and ongoing outbreaks overseas, the government is now saying the border won’t open until at least mid-2022.

    This is bad news for tourism operators who rely on international visitors. Last year’s budget included $60 million to help some tourism businesses diversify their markets, but there’s little extra support this year.

    Women’s Health

    The Federal Government is allocating $354 million for women’s health which will cover a variety of initiatives including improving cervical and breast cancer screening programs, depression services for pregnant women and new mothers, screening of embryos during IVF, reducing pre-term birth rates, especially among Indigenous communities, reducing eating disorders and other health initiatives including endometriosis education and pain management programs.

    There is also $998 million for reducing domestic and family violence, supporting survivors and a trial program has been announced which gives women fleeing violent relationships up to $5,000 in assistance, split into a $1,500 payment and $3,500 in expenses like rent, legal fees and furniture.

    To help women when it comes to retirement, the government is now introducing a scheme where employees who earn less than $450 a month will be paid the superannuation guarantee. More details on the Women’s Health funding can be found here.

    Youth and employment schemes

    An additional $500 million over two years will be directed to the JobTrainer program to create around 163,000 places and reduce the youth unemployment rate. The JobTrainer scheme unveiled last year is a government plan to drive job creation by up-skilling school leavers or people who are unemployed through free or low-fee courses.

    The supporting apprentices and trainees wage subsidy scheme is also being extended. This program reimburses employers 50 per cent of an apprentice’s or trainee’s wage for the first year, up to a cap of $7000 per quarter.

    Mental Health

    An additional $2.3 billion will be invested into the National Mental Health and Suicide Prevention Plan. There’s funding set aside for early intervention, including a new digital platform to provide online counselling. $298 million will go directly towards suicide prevention with the federal government aiming to with the states and territories to fund aftercare for every person discharged from hospital after a suicide attempt. The majority of the funding will go to treatment though, with a new national network of mental health treatment centres for adults, youth and kids to be set up.

    There is also money allocated to increase the workforce, offering scholarships and clinical placements for nurses, psychologists and allied health practitioners in the mental health space.

    Support for Farmers

    Our farmers can benefit from the asset write-off (extended until June 2023) but there’s also $200 million allocated for a National Soil Strategy which includes rebates for farmers that share soil testing results. The government will also waive almost $15 million of debt owed by more than 5,000 farmers receiving the Farm Household Allowance from Centrelink.

    Start Ups

    A new tax program has been announced which is aimed at encouraging medical and biotech companies to stay in Australia while they develop and then sell their ideas. The “patent box tax regime” will tax any income from a company’s patent at a concessional rate of 17 per cent starting from July 1, 2022. This is compared to 30 per cent tax rate for large businesses and 25 per cent for small-medium businesses.

    The government is focusing on start up businesses with $500 million in other new measures to make Australia an ideal place for businesses, including reducing red tape and encouraging employee share schemes.

    Tax relief for small brewers and distillers

    A win for the little guys here with small brewers and distillers getting more help this year. From July 1 2021 anyone who is eligible will be handed back up to $350,000 worth of taxes.

    Gaming

    A 30% refundable Digital Games Tax Offset has been announced to attract more of the global game market to Australia. To get the offset, eligible businesses have to spend at least $500,000 on certain games expenditure. The finer details are still being decided.

    There are a few more measures announced which we haven’t covered off here. Feel free to read more in this article.

    Get in touch

    Please get in touch with us if you have any questions.

  • Business Update – 12 May 2021

    Business Update – 12 May 2021

    Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward.

    Australia to Reopen Doors to India

    Australia will lift a ban on its citizens returning from COVID-ravaged India next week, as state officials reported that an outbreak in Sydney appeared to be contained. The Prime Minister stood by his decision to impose a biosecurity order last month barring all travel to and from India, a policy that drew heavy criticism.

    Travellers will need to provide a negative Covid-19 test, and will be required to undertake the standard 14-day hotel quarantine imposed on incoming travellers.

    Victoria on Alert After First COVID-19 Case in Two Months

    Victoria reported a locally acquired COVID-19 case for the first time in more than two months on Tuesday. Authorities are now searching for the source of the infection. Meanwhile NSW reported no new locally acquired COVID-19 cases for a fifth straight day on Tuesday.

    New Zealand COVID-19 Travel Bubble With NSW Resumed

    New Zealand reinstated its COVID-19 travel bubble with New South Wales starting last Sunday, after temporarily pausing quarantine-free travel last week amid reports of two COVID-19 cases in Sydney. Quarantine-free travel to New Zealand from Australia was introduced in April, following the relative success of both countries containing COVID-19.

    Federal Budget 2021: Highlights

    Treasurer Josh Frydenberg has released the 2021 Federal Budget and confirmed Australia’s economy is performing more strongly than was expected six months ago. This article has a summary of the “Winners and Losers” of the Budget and we’ve compiled a recap of the key points below.

    • $1.9 billion has been allocated for our vaccine strategy over the next 5 years, with money set aside for production of mRNA vaccine in Australia.
    • The Low and Middle Income Tax Offset has been extended for another year.
    • The instant asset write-off has been extended for eligible businesses.
    • Superannuation changes planned including repealing the work test for voluntary contributions and expanding the First Home Super Saver Scheme.
    • $17.7 billion in funding for aged care including home care packages and a Basic Daily Fee.
    • More than a billion dollars will go towards the Childcare Subsidy Scheme.
    • There is funding for women’s health programs including cervical and breast cancer screening, depression services for new mothers, endometriosis education and programs to reduce domestic and family violence.
    • The JobTrainer program and apprentice and trainee wage subsidy programs have been expanded.
    • Billions will be invested in Mental Health programs including early intervention and aftercare.
    • Farmers to benefit from the asset write-off, biosecurity measures and National Soil Strategy rebates.
    • Funding for startups, particularly medical startups, has been announced. This is designed to make Australia an attractive place to start and grow a business.
    • The budget includes tax relief for small brewers and distillers.

    Get in touch with us if you have any questions.

    Federal Budget 2021 Suggests International Borders Won’t Reopen Until Mid-Next Year

    The international border is expected to remain closed until mid-2022 and a quarantine program will remain in place, limiting overseas arrivals. The assumptions laid out in the federal budget expect a “gradual return of temporary and permanent migrants”, but also points to the potential for international students to travel sooner.

    Australia April Business Conditions Hit New High

    Australian retail sales increased by 1.3% in March, led by sales at cafes and restaurants, hitting a new record high, according to the Australian Bureau of Statistics. Separately, the National Australia Bank’s index of business conditions climbed by 8 points to a record +32 in April, showing strength across most sectors and regions. The measure of confidence also hit a record of +26, after jumping 9 points.

    WA Small Business Lockdown Assistance Grants Program

    The Western Australian Government has announced targeted grants to help small businesses affected by the recent lockdown in the Perth and Peel regions. The program will provide grants of $2000 to small businesses in industry sectors most severely impacted.

    The intention is to help small businesses offset some of the direct costs of the lockdown and business closure, such as perishable goods.

    You can learn more about the eligibility criteria here.

    New AgMove Support to Boost Harvest Workforce

    A new AgMove support will be launched to accommodate short, but intense, harvesting seasons and provide the right incentives to get job seekers to give agricultural work a go.

    Under AgMove, the government is introducing more flexible incentives which will see Australians eligible for up to $2,000 in relocation assistance (or $650 for temporary visa holders) when they complete just 40 hours of agricultural work over a two-week period.

    If they continue with the agricultural work and complete 120 hours across a period of at least four weeks, they will hit the second eligibility point where they will be able to access reimbursement of up to $6,000 for Australian workers and up to $2,000 for temporary visa holders.

    Providing Health Care Remotely During COVID-19

    From 13 March to 30 June 2021, new temporary MBS (Medicare Benefits Schedule) telehealth items have been made available to help reduce the risk of community transmission of COVID-19. You can find the temporary Medicare items that will help health care practitioners deliver telehealth services via phone or video conferencing here.

    $2000 Upfront Cash if the Unemployed Move for Work

    Starting in May, job seekers will get up to $2000 upfront if they move to a new location for ongoing work. Job seekers will get help relocating for jobs offering at least 20 hours a week, instead of the existing threshold of 30 hours.

    Wage Subsidy Scheme for Apprentices to Be Expanded

    The government will spend $1.2 billion to expand its wage subsidy scheme for apprentices, as JobKeeper ended last month.

    Under the apprentice scheme, the government will pay half the wages of apprentices up to a maximum of $7,000 each quarter for 12 months. It will run until September 2022. Ask us if you have any questions.

    Upcoming Key Dates

    Upcoming key lodgment and payment dates for businesses:

    15 May

    • Lodge 2020 tax returns for all entities that did not have to lodge earlier and are not eligible for the 5 June concession.

    21 May

    • Lodge and pay April 2021 monthly business activity statement.
    • Final date to add new FBT clients to your client list to ensure they receive the lodgment and payment concessions for their fringe benefits tax returns.

    26 May

    • Lodge and pay eligible quarter 3, 2020–21 activity statements if you or your client have elected to receive and lodge electronically.

    28 May

    • Lodge and pay quarter 3, 2020–21 Superannuation guarantee charge statement – quarterly (NAT 9599) if the employer did not pay enough contributions on time. Employers who lodge a Superannuation guarantee charge statement – quarterly can choose to offset contributions they paid late to a fund against their super guarantee charge for the quarter. They still have to pay the remaining super guarantee charge.

    Contact us if you have any questions.

    Government-backed COVID-19 Loans Extended

    The government is extending its small business COVID-19 loans scheme until June 2021. If you need help to access these loans or you want to find out if you are eligible, don’t hesitate to drop us a message.

    Strategies for Lowering Your Startup Costs

    Starting a business can be expensive, even if you’re just working with something small and lean. This Forbes article shares some strategies to ease the financial burden that you might face upon entering the world of entrepreneurship:

    • Consider buying used equipment, machinery, or vehicles
    • Lease instead of buying expensive equipment
    • Reduce overhead expenses such as by reducing the size of your workspace
    • Hire only who you need– at least at first
    • Secure a floating line of credit
    • Invest in insurance for financial protection in a number of areas
    • Form mutually beneficial partnerships with other entrepreneurs

    The earliest stage of your business development is going to be the hardest financially. So if you need more toughest advice, get in touch with us for a one-on-one consultation.

    Get in touch

    Contact us if you have any questions or want to discuss the next steps for your business.

    Contact us

  • Why Bookkeeping is Crucial to Your Success

    Why Bookkeeping is Crucial to Your Success

    Keeping track of sales, earnings, expenses, and purchases is fundamental to the overall health and sustainability of your business. Effective bookkeeping produces the data you need to evaluate your current practices, anticipate challenges, and set attainable future goals.

    But despite their proven importance, many business owners dread and avoid accounting tasks. In fact, 40% of surveyed entrepreneurs claim that bookkeeping is one the worst parts of running a business!

    Wondering if it’s really worth the aggravation?

    Here are four reminders of how effective bookkeeping is the cornerstone of small business success.

    Keeping track of reimbursable expenses

    A reliable system for tracking reimbursable expenses ensures you reap all the benefits you’re entitled to when filing your taxes. Expenditures sorted into categories, such as “food”, “travel”, and “office supplies,” can be catalogued quite simply with online bookkeeping software.

    Using a dedicated credit card for business expenses, and updating your records on a monthly basis, will put money back in your pocket come tax time.

    Measuring profitability and planning for the future

    In order to grow your business, you must be able to track and compare its finances from one year to the next.

    In addition to reconciling the books and bank statements every month, effective bookkeeping generates records you can use to gain a comprehensive overview of your business. This data can help you:

    • measure year over year profits;
    • identify opportunities to cut costs;
    • plan for major expenses (such as new office space, equipment, or staff); and
    • develop data-based strategies for expansion.

    Preparing for tax season

    Few things are more stressful for business owners than scrambling to get poorly maintained financial records ready for tax season. In addition to the panic of last-minute filing, inaccurate or incomplete documentation can lead to serious penalties, fines, and even an audit.

    In the United States alone, 40% of small businesses pay an average penalty of $845 per year for late or incorrect filings!

    Save money and get peace of mind with sound bookkeeping. You’ll be assured of compliance with regulations, and will receive a reliable estimate of amounts owing long before your tax bill is due.

    Final tip: ask for help

    Most entrepreneurs are passionate about developing new business ideas – not crunching numbers. Employing a professional bookkeeper, even on a part-time or as-needed basis, can help optimize your accounting and increase overall profitability.

    There’s a good reason 71% of small businesses outsource at least one accounting function to help manage tasks like payroll, closing the books each month, and managing accounts receivable.

    It’s well worth it. Invest in effective bookkeeping and you’ll build a solid foundation for a resilient, forward-moving small business.

    Need assistance with bookkeeping, S & H Accounting can assist you as we also offer bookkeeping services. As mentioned above that bookkeeping services are essential for not just businesses but also for individuals. Our team also consists well-qualified, vastly experienced and extremely professional. We aim to provide our clients with the best level of service possible, as we prioritise our clients growth. Book an appointment today with S & H Accountants, call us on 03 8759 5532 or you can email us on info@sahtax.com.au.

  • COVID-19 Business Update – 5 May 2021

    COVID-19 Business Update – 5 May 2021

    Pandemic

    Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward.

    Perth Dodges New Lockdown

    West Australian Premier Mark McGowan announced on Sunday that there will be no second snap-lockdown in Perth, but COVID-19 restrictions will still be imposed after reports that a hotel quarantine security guard and two of his housemates tested positive for the virus.

    Nightclubs will be closed immediately until after midnight on 8 May, restrictions will still be in place, and the use of masks will be required.

    New South Wales Reports First COVID-19 Case in More Than a Month

    NSW reported its first locally acquired COVID-19 case in more than a month.

    A man in his 50s who tested positive for COVID-19 had visited a movie theatre, restaurants, a service station, and a meat store in Sydney’s eastern suburbs while unknowingly infectious. He has not travelled overseas in recent times and doesn’t work in any high-risk facility such as a quarantine hotel or hospital.

    Authorities are working to trace the source of the virus.

    Australian Citizens in India Barred From Returning Home

    Australian citizens are barred from re-entering the country if they are coming from India. Prime Minister Scott Morrison defended the decision saying that strict regulations are necessary to keep the country Covid-free.

    The ban is currently set to be lifted on 15 May.

    WA Small Business Lockdown Assistance Grants Program

    The Western Australian Government has announced targeted grants to help small businesses affected by the recent lockdown in the Perth and Peel regions. The program will provide grants of $2000 to small businesses in industry sectors most severely impacted.

    The intention is to help small businesses offset some of the direct costs of the lockdown and business closure, such as perishable goods.

    A full list of eligibility criteria will be published in the coming weeks.

    Federal Budget 2021 to be Announced on 11 May

    The Federal Government will hand down its 2021-22 Budget on 11 May. From JobKeeper to JobSeeker and all the associated costs related to the COVID-19 pandemic, many expect this year’s Budget to be modest.

    The government has already revealed its expenditure plans on the two most pressing issues– child care and aged care, with annual costing at $1.7 billion and $2.5 billion, respectively. The planned expenditure on these two key issues appears low relative to estimates from independent studies.

    Stay tuned next week for a comprehensive coverage of the Federal Budget 2021.

    $600 M for New Resilience Agency to Combat Threat of Natural Disasters

    The government will establish a national recovery and resilience agency and create a new climate service to help manage the risk of natural disasters.

    Around $600 million will be allocated to the agency to fund resilience projects such as bushfire and cyclone-proofing houses, building levees for flood control, and improving the resilience of telecommunications and essential supplies.

    New AgMove Support to Boost Harvest Workforce

    A new AgMove support will be launched to accommodate short, but intense, harvesting seasons and provide the right incentives to get job seekers to give agricultural work a go.

    Under AgMove, the government is introducing more flexible incentives which will see Australians eligible for up to $2,000 in relocation assistance (or $650 for temporary visa holders) when they complete just 40 hours of agricultural work over a two-week period.

    If they continue with the agricultural work and complete 120 hours across a period of at least four weeks, they will hit the second eligibility point where they will be able to access reimbursement of up to $6,000 for Australian workers and up to $2,000 for temporary visa holders.

    Reinsurance Pool to Cover Cyclone Damage in Northern Australia

    The government has announced a reinsurance pool backed by a $10 billion government guarantee. This will subsidise the cost of insurance coverage for cyclones and related flood damage, making insurance premiums cheaper for people living in vulnerable areas of northern Australia from July next year.

    The government expects this will reduce premiums by more than $1.5 billion for households, strata and small businesses north of the Tropic of Capricorn over 10 years.

    Providing Health Care Remotely During COVID-19

    From 13 March to 30 June 2021, new temporary MBS (Medicare Benefits Schedule) telehealth items have been made available to help reduce the risk of community transmission of COVID-19. You can find the temporary Medicare items that will help health care practitioners deliver telehealth services via phone or video conferencing here.

    $6.9 M Cyber Security Assistance Boost for Businesses

    Nearly 600,000 small- and medium-sized businesses across the country will soon have access to free advice and assistance to improve their cyber security.

    The Cyber Security Business Connect and Protect Program is providing $6.9 million in funding to 14 trusted organisations that will work directly with businesses to identify security risks and help them take active steps to secure their systems.

    $2000 Upfront Cash if the Unemployed Move for Work

    Starting in May, job seekers will get up to $2000 upfront if they move to a new location for ongoing work. Job seekers will get help relocating for jobs offering at least 20 hours a week, instead of the existing threshold of 30 hours.

    Wage Subsidy Scheme for Apprentices to Be Expanded

    The government will spend $1.2 billion to expand its wage subsidy scheme for apprentices, as JobKeeper ended last month.

    Under the apprentice scheme, the government will pay half the wages of apprentices up to a maximum of $7,000 each quarter for 12 months. It will run until September 2022. Ask us if you have any questions.

    Upcoming Key Dates

    Upcoming key lodgment and payment dates for businesses:

    15 May

    • Lodge 2020 tax returns for all entities that did not have to lodge earlier and are not eligible for the 5 June concession.

    21 May

    • Lodge and pay April 2021 monthly business activity statement.
    • Final date to add new FBT clients to your client list to ensure they receive the lodgment and payment concessions for their fringe benefits tax returns.

    26 May

    • Lodge and pay eligible quarter 3, 2020–21 activity statements if you or your client have elected to receive and lodge electronically.

    28 May

    • Lodge and pay quarter 3, 2020–21 Superannuation guarantee charge statement – quarterly (NAT 9599) if the employer did not pay enough contributions on time. Employers who lodge a Superannuation guarantee charge statement – quarterly can choose to offset contributions they paid late to a fund against their super guarantee charge for the quarter. They still have to pay the remaining super guarantee charge.

    Contact us if you have any questions.

    Government-backed COVID-19 Loans Extended

    The government is extending its small business COVID-19 loans scheme until June 2021. If you need help to access these loans or you want to find out if you are eligible, don’t hesitate to drop us a message.

    Tasks Business Owners Should Be Delegating

    It doesn’t matter what your big plans are or how well-designed your road map for growth is– the future success of your business will be limited if you don’t work on the right things. This Forbes article discusses the tasks that business owners should delegate to accelerate their business’ growth.

    • Low-value admin tasks– Your time is of high value and it’s finite. So instead of spending your time on tasks that anyone with the right tools can do with little instruction, it’s best to focus on the core activities that drive business growth.
    • High-value tasks you’re NOT an expert in– If you haven’t been working in accounting, marketing, or any other area of specialisation for the past 10 years, find a professional who has. While you can teach yourself how to do all these, your performance won’t likely match the skill of an expert with years of experience, not to mention that you’ll be slower in completing the task.
    • High-value tasks you ARE an expert in– While this may come at a later stage in your business journey, it’s important to train people to perform in the same areas you’re an expert in. This will make your business more resilient to challenges, changes, or unexpected circumstances that will inevitably come.

    Need help with the finance-side of your business? Get in touch with us today and ease your burden by delegating your accounting with us.

    Get in touch

    Contact us if you have any questions or want to discuss the next steps for your business.

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  • Ways to Make a Difference While Making Money

    Ways to Make a Difference While Making Money

    Gone are the days when an entrepreneur was expected to be entirely focused on making a profit. Obviously, earning money is important to being sustainable and therefore staying in business, but it’s possible to both earn a profit and make a positive difference in the world around you, too.

    Business Man Counting Dollar Banknote Online Business Concept 1150 6406

    There are great reasons for doing so. Making a positive difference contributes to the greater good. It can also boost employee morale for people to know they work for a company that gives back. Consumers like to shop at businesses that give back, too. According to a Nielsen study, up to 66% of global consumers are willing to pay more to purchase from companies that are dedicated to making a positive difference.

    It’s called social entrepreneurship, which means running a business that has a charitable component.

    So, how can you have a positive impact while making money?

    Start by building your business model around it

    The first step is to look at your business, its mission, and values, and determine the best ways for you to contribute. Any type of business can give back—those that sell products can contribute those products to local or international organisations that need them. Some businesses can contribute financially or with infrastructure aid. Others find ways to donate their time or expertise.

    Whatever you choose to do, it needs to fit and be sustainable within your business. Don’t contribute so much that your business suffers.

    Here are some ways your business can make a difference:

    1. Contribute financially

    Not every business sells a physical product that can be donated, but that doesn’t mean you can’t help. Choose a cause that’s important to you and partner with an organisation to give them a portion of the proceeds from every transaction, or certain types of transactions. You can do this on an ongoing basis or as part of a limited time engagement.

    2. Encourage your clients to contribute financially

    You could have an even bigger impact by hosting a fundraising drive in which your business matches all proceeds donated by your clients. Email your clients with a link to donate through and tell them you’ll match them—or contribute a certain percentage for each dollar they donate. Doing so can drastically increase the amount of money raised.

    3. Contribute your time

    Not everyone can afford your services, but that doesn’t mean they couldn’t benefit from your advice or knowledge. If you have specialised expertise in an area, consider partnering with a local organisation to host free workshops for people in need. You could give a workshop on financial literacy or ways to pay down debt more quickly, for example.

    If you already host workshops and charge participants to join, consider offering a free spot or two to a relevant organisation so they can choose to have someone attend. You’ll be doing good and helping them at the same time.

    4. Pay your employees to contribute their time

    Your employees may want to help out but don’t have the time or financial ability to do so. Consider giving your employees a paid day off to contribute their time, or pay them to host workshops. You’ll not only be helping a worthwhile cause, you’ll be showing your employees you support them, too.

    Final thoughts

    Making a difference doesn’t have to interfere with earning a profit. The two can even go hand-in-hand. What’s important is that you choose causes that are important to you and your employees, and you build a charitable vision that makes sense for your company.

    Just remember that it’s okay to make money while you’re doing good. Your business needs to be sustainable, so make decisions about giving back that work with your business.

  • Business Update – 5 May 2021

    Business Update – 5 May 2021

    Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward.

    Perth Dodges New Lockdown

    West Australian Premier Mark McGowan announced on Sunday that there will be no second snap-lockdown in Perth, but COVID-19 restrictions will still be imposed after reports that a hotel quarantine security guard and two of his housemates tested positive for the virus.

    Nightclubs will be closed immediately until after midnight on 8 May, restrictions will still be in place, and the use of masks will be required.

    New South Wales Reports First COVID-19 Case in More Than a Month

    NSW reported its first locally acquired COVID-19 case in more than a month.

    A man in his 50s who tested positive for COVID-19 had visited a movie theatre, restaurants, a service station, and a meat store in Sydney’s eastern suburbs while unknowingly infectious. He has not travelled overseas in recent times and doesn’t work in any high-risk facility such as a quarantine hotel or hospital.

    Authorities are working to trace the source of the virus.

    Australian Citizens in India Barred From Returning Home

    Australian citizens are barred from reentering the country if they are coming from India. Prime Minister Scott Morrison defended the decision saying that strict regulations are necessary to keep the country Covid-free.

    The ban is currently set to be lifted on 15 May.

    WA Small Business Lockdown Assistance Grants Program

    The Western Australian Government has announced targeted grants to help small businesses affected by the recent lockdown in the Perth and Peel regions. The program will provide grants of $2000 to small businesses in industry sectors most severely impacted.

    The intention is to help small businesses offset some of the direct costs of the lockdown and business closure, such as perishable goods.

    A full list of eligibility criteria will be published in the coming weeks.

    Federal Budget 2021 to be Announced on 11 May

    The Federal Government will hand down its 2021-22 Budget on 11 May. From JobKeeper to JobSeeker and all the associated costs related to the COVID-19 pandemic, many expect this year’s Budget to be modest.

    The government has already revealed its expenditure plans on the two most pressing issues– child care and aged care, with annual costing at $1.7 billion and $2.5 billion, respectively. The planned expenditure on these two key issues appears low relative to estimates from independent studies.

    Stay tuned next week for a comprehensive coverage of the Federal Budget 2021.

    $600 M for New Resilience Agency to Combat Threat of Natural Disasters

    The government will establish a national recovery and resilience agency and create a new climate service to help manage the risk of natural disasters.

    Around $600 million will be allocated to the agency to fund resilience projects such as bushfire and cyclone-proofing houses, building levees for flood control, and improving the resilience of telecommunications and essential supplies.

    New AgMove Support to Boost Harvest Workforce

    A new AgMove support will be launched to accommodate short, but intense, harvesting seasons and provide the right incentives to get job seekers to give agricultural work a go.

    Under AgMove, the government is introducing more flexible incentives which will see Australians eligible for up to $2,000 in relocation assistance (or $650 for temporary visa holders) when they complete just 40 hours of agricultural work over a two-week period.

    If they continue with the agricultural work and complete 120 hours across a period of at least four weeks, they will hit the second eligibility point where they will be able to access reimbursement of up to $6,000 for Australian workers and up to $2,000 for temporary visa holders.

    Reinsurance Pool to Cover Cyclone Damage in Northern Australia

    The government has announced a reinsurance pool backed by a $10 billion government guarantee. This will subsidise the cost of insurance coverage for cyclones and related flood damage, making insurance premiums cheaper for people living in vulnerable areas of northern Australia from July next year.

    The government expects this will reduce premiums by more than $1.5 billion for households, strata and small businesses north of the Tropic of Capricorn over 10 years.

    Providing Health Care Remotely During COVID-19

    From 13 March to 30 June 2021, new temporary MBS (Medicare Benefits Schedule) telehealth items have been made available to help reduce the risk of community transmission of COVID-19. You can find the temporary Medicare items that will help health care practitioners deliver telehealth services via phone or video conferencing here.

    $6.9 M Cyber Security Assistance Boost for Businesses

    Nearly 600,000 small- and medium-sized businesses across the country will soon have access to free advice and assistance to improve their cyber security.

    The Cyber Security Business Connect and Protect Program is providing $6.9 million in funding to 14 trusted organisations that will work directly with businesses to identify security risks and help them take active steps to secure their systems.

    $2000 Upfront Cash if the Unemployed Move for Work

    Starting in May, job seekers will get up to $2000 upfront if they move to a new location for ongoing work. Job seekers will get help relocating for jobs offering at least 20 hours a week, instead of the existing threshold of 30 hours.

    Wage Subsidy Scheme for Apprentices to Be Expanded

    The government will spend $1.2 billion to expand its wage subsidy scheme for apprentices, as JobKeeper ended last month.

    Under the apprentice scheme, the government will pay half the wages of apprentices up to a maximum of $7,000 each quarter for 12 months. It will run until September 2022. Ask us if you have any questions.

    Upcoming Key Dates

    Upcoming key lodgment and payment dates for businesses:

    15 May

    • Lodge 2020 tax returns for all entities that did not have to lodge earlier and are not eligible for the 5 June concession.

    21 May

    • Lodge and pay April 2021 monthly business activity statement.
    • Final date to add new FBT clients to your client list to ensure they receive the lodgment and payment concessions for their fringe benefits tax returns.

    26 May

    • Lodge and pay eligible quarter 3, 2020–21 activity statements if you or your client have elected to receive and lodge electronically.

    28 May

    • Lodge and pay quarter 3, 2020–21 Superannuation guarantee charge statement – quarterly (NAT 9599) if the employer did not pay enough contributions on time. Employers who lodge a Superannuation guarantee charge statement – quarterly can choose to offset contributions they paid late to a fund against their super guarantee charge for the quarter. They still have to pay the remaining super guarantee charge.

    Contact us if you have any questions.

    Government-backed COVID-19 Loans Extended

    The government is extending its small business COVID-19 loans scheme until June 2021. If you need help to access these loans or you want to find out if you are eligible, don’t hesitate to drop us a message.

    Tasks Business Owners Should Be Delegating

    It doesn’t matter what your big plans are or how well-designed your road map for growth is– the future success of your business will be limited if you don’t work on the right things. This Forbes article discusses the tasks that business owners should delegate to accelerate their business’ growth.

    • Low-value admin tasks– Your time is of high value and it’s finite. So instead of spending your time on tasks that anyone with the right tools can do with little instruction, it’s best to focus on the core activities that drive business growth.
    • High-value tasks you’re NOT an expert in– If you haven’t been working in accounting, marketing, or any other area of specialisation for the past 10 years, find a professional who has. While you can teach yourself how to do all these, your performance won’t likely match the skill of an expert with years of experience, not to mention that you’ll be slower in completing the task.
    • High-value tasks you ARE an expert in– While this may come at a later stage in your business journey, it’s important to train people to perform in the same areas you’re an expert in. This will make your business more resilient to challenges, changes, or unexpected circumstances that will inevitably come.

    Need help with the finance-side of your business? Get in touch with us today and ease your burden by delegating your accounting with us.

    Get in touch

    Contact us if you have any questions or want to discuss the next steps for your business.

    Contact us

  • How Accounting Software Can Increase Profits

    How Accounting Software Can Increase Profits

    Most small business owners who use accounting software quickly master the basics. They automate processes like invoicing and payroll, track expenses and view real time financial reports to manage cash flow and make better business decisions.

    But what many business owners don’t take advantage of are key insights that can improve customer care and increase sales. Here are some smart ways you can use your accounting software to help boost your bottom line.

    Gain insights that increase sales

    If you’re not tapping into your accounting software analytics to better understand your customers, you’re missing a major opportunity to close more sales.

    Most accounting software can highlight your biggest spenders and buying trends. How would knowing who your best customers are, your biggest selling products and how much each customer spends impact your marketing decisions – not to mention help you fine tune your sales strategies?

    By the same token, when you know which products and services aren’t selling, you’ll be able to make more profitable purchasing decisions. Most accounting software offers inventory tracking to help you decide what to keep on the shelves, which products to sell off at a discount and which items to phase out altogether.

    Improve customer care and boost profits

    Accounting software can offer peace of mind when you know your financials are accurate and up to date. But another major advantage of an online accounting solution is how much time you’ll save by automating processes like invoicing and payroll – giving you more time to follow up with clients and seek out new prospects.

    We all know how important the personal touch is when it comes to sales. So why not use your accounting software customer data to help remember your customers’ birthdays or thank them when they’ve hit a milestone – spending more than $5,000 on your products, for example?

    With enhanced customer data at your fingertips, your business will earn a reputation for personalized service. You’ll be able to respond quickly when a customer calls with a question about a product or an order. And you’ll be able to suggest substitutions and offer valuable add-ons based on their buying preferences, so upselling becomes a snap.

    How will you use accounting software to grow your small business?

    Savvy business owners take the first step toward better profitability when they stop thinking of accounting software as simply a financial management solution and start thinking of it as a comprehensive tool for business growth.

    You may be surprised at the many ways accounting software can help you better serve your customers or improve your sales strategies when you look at its true potential.

    Now that you have a handful of ideas for making better use of your accounting software, what will you do differently to enhance customer care, improve your profits and continue to grow your business?

     

    Accounting software can be very helpful in a business, as not only efficient but assists in making sure that everything is organised. This then helps create more customers due to excellent customer service. S & H Tax Accountants are aware that sometimes using softwares can be a little difficult, that is why we also provide the bookkeeping services. Our accountants are well qualified and vastly experienced thus, we provide you with the best possible level of service. Book an appointment now with S & H Tax Accountants, email us at info@sahtax.com.au or call us at 03 8759 5532.

  • New payment methods to consider in 2018

    New payment methods to consider in 2018

    A new year is a perfect time for business owners to set goals to improve profitability.

    If you aren’t yet familiar with digital wallets and the latest mobile payment technologies, you might be interested in the benefits they afford small businesses, such as:

    • instant access to funds and real-time financial data
    • cost savings on third party transaction fees and POS systems
    • competitive edge—making it easy for customers to pay quickly and securely on any device.

    Here’s a quick look at a few emerging payment options you may want to consider integrating with your business in 2018. 

    Apple Pay

    What makes Apple Pay so appealing to consumers and business owners alike is its ease of use, speed, and security. Anyone with a smartphone or Apple watch can make a purchase instantly by simply holding their device at a wireless payment terminal set up for Apple Pay.

    Apple Pay can also be used to make secure purchases within apps or on the web.

    If you run a business where completing transactions quickly is crucial—for instance, a coffee shop or fast food outlet—the speedier your service, the happier everyone will be. Your patrons won’t have to wait, and you’ll make more sales.

    If your business already accepts major credit cards (e.g. Visa, Mastercard, American Express, or Discover), or Interac contactless payments, the good news is you should be able to set up Apple Pay without making any changes.

    Even better news: Apple doesn’t charge additional fees for businesses that accept Apple Pay.

    Apple Pay has been growing in popularity since its launch in 2014 and is currently used around the world (the full list is available here). For more info to get you started, visit the Apple Pay website.

    Download (1)

    Cryptocurrencies

    If cryptocurrencies, like Bitcoin, have been on the periphery of your awareness, lookout. These alternate currencies are fast becoming mainstream payment options for small and big businesses alike.

    Large companies including Microsoft, Tesla, and Shopify now accept Bitcoin. For businesses trading in large sums, the pros of accepting cryptocurrency can be very attractive, such as:

    • no transaction fees
    • instant payments
    • no exchange rates or conversion fees
    • encryption technology (e.g. blockchain) ensures secure transactions.

    The ease and affordability of using Bitcoin for global business transactions are a major reason small business owners looking to expand into foreign markets adopt this cryptocurrency.

    Of course, any new financial technology comes with its risks. Some worry about cryptocurrency’s potential volatility, and the risk of loss in an unregulated system.

    The best advice before investing in any cryptocurrency is to make sure you understand exactly how it works—then weigh all the pros and cons for your business.

    To learn more, take a look at Inc’s list of cryptocurrencies to watch in 2018.

    106928219 1629130755312 Gettyimages 1234311531 Sindeyev Notitle210729 Np12k

    Next steps
    As digital technologies bring us closer to paperless financial systems, it’s important you offer your customers a range of convenient payment options, so they aren’t tempted to shop somewhere else.

    Ensuring your customers can buy from you using their preferred payment options, whether cash, check, debit card, credit card, mobile payment options, or EFT, will help you stay competitive, long-term.

  • How to rebuild trust after a bad online review

    How to rebuild trust after a bad online review

    Online reviews are an important marketing tool for many small businesses. They give potential customers and clients a chance to see how effective your goods or services are, how responsive you are to your clients, and what other people’s experiences of your business have been. The vast majority of people check online reviews before making a purchasing decision.

    When reviews are great, that’s a fantastic thing. It’s when you get negative reviews that you have to adjust. Unfortunately, negative reviews are part of business. You simply can’t please all customers all the time.

    Business Working People Plan Concept 53876 128044

    Here’s the thing: a negative review can actually be a positive for your business. So how do you rebuild trust after a client has vented their frustrations online?

    Leave the negative review up

    A negative review doesn’t have to be the end of the world. Although customers like to see five-star reviews, they understand that perfection is almost impossible—and probably a sign that something is “too good to be true.” In that sense, having a customer or two provide negative feedback gives more credibility to the positive reviews. Customers expect to see a couple of negative reviews. As long as they’re in amongst positive feedback, the negatives likely won’t hurt you much and may even increase your legitimacy, if they’re handled well.

    Respond to the review honestly

    Customer complaints are a way for you to build trust with your potential clients by giving you an opportunity to respond honestly and professionally. Did something go wrong that was out of your hands? Offer an apology and explain what happened. Was there a misunderstanding? Take the opportunity to clear it up. Has the reviewer requested additional information or a solution? Respond online to show what you’ve done to address the situation. Did the reviewer misunderstand a policy? Explain your policy and invite them to contact you if they have further questions.

    Doing so shows readers that you take their concerns seriously and are willing to take responsibility when things go wrong.

    Learn from negative reviews

    If you see the same concerns repeatedly in the online feedback, it may be time to review your services. Negative reviews give you insight into areas where your customers feel your business could make changes, so take the time to consider what you’re being told. It may be that you can improve on your offerings or you need to communicate better with clients to manage their expectations.

    Thank them for their feedback, let them know you’re taking their concerns seriously, and explain what your next steps will be.

    Final thoughts

    Don’t panic. A bad review or two isn’t likely to ruin your reputation. In fact, a few negative reviews can help you build trust with potential clients. You can use the situation to build trust in your business by being responsive, transparent, and honest.

    If possible, make sure your responses include an apology, a statement about your commitment to your clients, and a way to continue the conversation offline, if further communication is needed. Doing so will show potential customers and clients that you care about their feedback and are willing to take responsibility, but it also allows you to move the conversation to a more private forum if the reviewer isn’t happy with your response.

     

  • COVID-19 Business Update – 28 April 2021

    COVID-19 Business Update – 28 April 2021

    Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward.

    Flights Between NZ and Western Australia Resumes

    New Zealand has reopened quarantine-free travel with Western Australia from midday Wednesday. This comes after it was revealed a traveller from Perth was able to enter New Zealand despite the Australian city being locked down.

    Travelers who have been identified as contacts to cases across the Tasman will have to test negative and self-isolate for 14 days before they depart for NZ.

    Report: Huge Government Debt Sustainable

    In a report by the independent Parliamentary Budget Office, it was indicated that the blowout in government debt in response to funding support for Australians during the pandemic is sustainable. Support measures such as the JobKeeper and JobSeeker scheme saw government debt as a proportion of the economy expand from 28% of GDP to an expected 40% in 2020/21 and to more than 2022/23. It could be a decade before it starts to steadily decline.

    Providing Health Care Remotely During COVID-19

    From 13 March to 30 June 2021, new temporary MBS (Medicare Benefits Schedule) telehealth items have been made available to help reduce the risk of community transmission of COVID-19. You can find the temporary Medicare items that will help health care practitioners deliver teleheatlh services via phone or video conferencing here.

    Study: 83% of Australian Entrepreneurs Confident About Recovery

    In a study conducted by market research company Frost & Sullivan and NetSuite, Australian and New Zealand entrepreneurs have emerged from the COVID-19 pandemic in good shape and are confident about recovery. The report showed 83% of Australian entrepreneurs feeling confident about their businesses and next stage of growth.

    Further, the study found many entrepreneurs were able to pivot to online sales over brick and mortar amid the lockdowns.

    $6.9 M Cyber Security Assistance Boost for Businesses

    Nearly 600,000 small- and medium-sized businesses across the country will soon have access to free advice and assistance to improve their cyber security.

    The Cyber Security Business Connect and Protect Program is providing $6.9 million in funding to 14 trusted organisations that will work directly with businesses to identify security risks and help them take active steps to secure their systems.

    $2000 Upfront Cash So Unemployed Move for Work

    Starting in May, job seekers will get up to $2000 upfront if they move to a new location for ongoing work. Job seekers will get help relocating for jobs offering at least 20 hours a week, instead of the existing threshold of 30 hours.

    Upcoming Key Dates

    Upcoming key lodgment and payment dates for businesses:

    30 April

    • Lodge TFN report for closely held trusts if any beneficiary quoted their TFN to a trustee in quarter 3, 2020–21.
    • Lodge lost members report for the period 1 July 2020 to 31 December 2020.

    Contact us if you have any questions.

    Government-backed COVID-19 Loans Extended

    The government is extending its small business COVID-19 loans scheme until June 2021. If you need help to access these loans or you want to find out if you are eligible, don’t hesitate to drop us a message.

    Here’s How Small Businesses Can Bring Shoppers Back Into Stores

    With vaccination availability increasing in the country, small business owners can start to refocus their efforts on encouraging in-person visitors. This Forbes article shared some tips to effectively boost in-store traffic in the next months.

    • Focus on personalisation– It is about relationship-building and appealing to consumers’ desire to invest in a company’s products and its values. With consumers having unlimited choices at their fingertips, you can stand out by providing a personalised experience that strengthens brand loyalty.
    • Prioritise authenticity– Research shows 86% of shoppers value authenticity. Don’t just preach authenticity through customer emails and digital ads, you need to bring that same energy to in-person interactions.
    • Align innovation with intent– Pair in-person with digital approaches to improve interactions with customers and ease the transition back into stores.
    • Tap into senses and sensibilities– After a year of limited contact, customers are happy to get in front of people. Create in-person experiences that engage multiple senses and cultivate an immersive in-store vibe.
    • Add mobile to the in-store journey– Review your mobile engagement to make sure it reflects current products and services, while showing you’re ready to reconnect with consumers.

    Need more focused business advice on how to attract in-person visitors? Book a one-on-one consultation with us today and let’s work out a plan!

    Get in touch

    Contact us if you have any questions or want to discuss the next steps for your business.

    Contact us

  • How to Hire the Right Bookkeeper for your Business

    How to Hire the Right Bookkeeper for your Business

    “Outsource your weaknesses.” So says start-up guru, Sujan Patel, when advising small business owners to get outside help for tasks like payroll and bookkeeping. And when you consider that 70% of businesses fail due to poor in-house financial management, Patel’s advice seems spot on.

    Unfortunately, many small business owners seek to keep costs low by doing everything themselves— unwittingly sabotaging the financial stability of their own company. If numbers aren’t your strength and you would rather focus on building your business, it’s time to hire a bookkeeper. Here are four ways to ensure you find the right fit.

    Choose a bookkeeper with experience in your industry

    The nuances of bookkeeping vary from one corner of the market to another. When assessing candidates, it’s important to look not only at total years of experience, but also at the relevance of that experience.  For example, if your business is fashion, a bookkeeper who has primarily worked in the auto industry won’t have the insights into your industry that can really add value to your work together. 

    Look for membership in a professional association

    In addition to a degree or diploma from a recognized institution, your bookkeeping candidate should belong to a professional bookkeepers association. Most associations test applicants to verify their technical skills and theoretical knowledge, with the goal of protecting and furthering industry standards.

    Many associations require members to earn a credential, prove a high standard of proficiency, and continue to improve their skills through ongoing professional development.

    Put a high premium on communication skills

    It’s imperative for small business owners to have open, effective communication with their bookkeeper. You will need to sit together each month to review key financial reports, such as the profit and loss statement, balance sheet, and cash flow statement. An effective bookkeeper should be adept at explaining and breaking down complex accounting concepts in accessible ways, so you always have a clear understanding of your financial position.

    During the interview process, ask your candidate to explain a few key concepts, like gross and net profit, job costing, or deferral transactions. Strong communicators can make the abstract easily digestible –exactly what you need in a prospective bookkeeper.

    Evaluate honesty and reliability

    When you hire someone to look after your books, you place a considerable amount of trust in their personal integrity and trustworthiness. But how does one evaluate these character traits during an interview?

    The best approach is to ask open-ended questions that get your candidate talking about ethical challenges they’ve faced in the workplace, such as:

    • Tell me about a time when you committed an error. How did you handle the situation and what did you learn from it?
    • What would you do if someone else took credit for your work?
    • How would you respond to uncovering an unethical or fraudulent accounting practice in the workplace?

    The bottom line is that hiring a bookkeeper is about much more than finding an able number-cruncher. The candidate you choose will be an integral part of your business success. Look holistically at your applicants’ technical skills and character to find your ideal match, and you’ll gain a valuable professional ally for years to come.

  • COVID-19 Business Update – 21 April 2021

    COVID-19 Business Update – 21 April 2021

    Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward.

    Australia- New Zealand Travel Bubble Now Open

    The long-anticipated travel bubble between Australia and New Zealand started on Monday, marking the first step towards the gradual reopening to the rest of the world. Since October, Australia allows New Zealanders to arrive without going into quarantine, but New Zealand has taken a more cautious approach.

    The start of this travel bubble comes ahead of the New Zealand ski season and is welcome news for many tourist towns, including the ski resort of Queenstown.

    Australia to Speed Up COVID-19 Vaccine Rollout to Over-50s

    Australia is planning to accelerate its COVID-19 vaccine rollout to those over 50 years old after advising under-50s not to get the AstraZeneca vaccine due to blood clot side effects.

    State leaders agreed to bring forward vaccinating over-50s, going beyond frontline workers, the elderly, the disabled and people with underlying medical conditions. So far, 1.59 million shots have been given out of the 25 million population.

    Besides the concerns about the AstraZeneca vaccine, the vaccination programme has also stalled due to supply hold-ups in Europe.

    Australian Government Disaster Recovery Payment and Disaster Recovery Allowance Expanded for WA Cyclone

    The federal government had expanded the Australian Government Disaster Recovery Payment (AGDRP) and Disaster Recovery Allowance (DRA) to cover more local government areas. Carnamah, Chapman Valley, Greater Geraldton, Mingenew, Morawa, Perejonori and Three Springs will now have access to the emergency grants which have seen more than $300,000 paid out so far.

    The AGDRP is a one-off $1000 payment for adults and $400 for children who have been either seriously injured or had their homes damaged. Meanwhile, DRA is up to 13 weeks of income support for people who cannot get to work or whose place of work has been affected.

    You can find out more and check your eligibility here.

    $2000 Upfront Cash So Unemployed Move for Work

    Starting in May, job seekers will get up to $2000 upfront if they move to a new location for ongoing work. Job seekers will get help relocating for jobs offering at least 20 hours a week, instead of the existing threshold of 30 hours.

    Government Extends Energy Bill Support to June

    The Federal Government has extended the COVID-19 energy support measures for consumers and small businesses until the end of June.

    This means energy suppliers must work out and rearrange payment plans with customers who are experiencing financial hardship. This may include payment plans that mean no payments will be required for some period of time.

    Energy companies will also not be allowed to cut the power to customers for unpaid bills as long as the customer is working with the supplier to find a suitable payment solution.

    Wage Subsidy Scheme for Apprentices to Be Expanded

    The government will spend $1.2 billion on the wage subsidy scheme for apprentices, as JobKeeper ended last month.

    Under the apprentice scheme, the government will pay half the wages of apprentices up to a maximum of $7,000 each quarter for 12 months. It will run until September 2022. Ask us if you have any questions.

    Claiming the JobMaker Hiring Credit

    The JobMaker Hiring Credit is available for eligible employers who create new positions for eligible young people between 7 October 2020 and 6 October 2021.

    To receive JobMaker Hiring Credit payments, you don’t need to satisfy a fall in turnover test. All you need to do is complete three steps:

    • Register – via ATO online services, Online services for business or the Business portal, or through your registered tax or BAS agent.
    • Nominate your eligible additional employees – by running payroll events through your Single Touch Payroll (STP) enabled software by 27 April 2021.
    • Claim payments – using ATO online services, Online services for business or the Business portal, or through your registered tax or BAS agent.

    You can register at any time until the scheme ends. Ask us if you have any questions.

    Upcoming Key Dates

    Upcoming key lodgment and payment dates for businesses:

    28 April

    • Lodge and pay quarter 3, 2020–21 activity statement if electing to receive and lodge by paper and not an active STP reporter.
    • Pay quarter 3, 2020–21 instalment notice (form R, S or T). Lodge the notice only if you are varying the instalment amount.
    • Make super guarantee contributions for quarter 3, 2020–21 to the funds by this date.

    30 April

    • Lodge TFN report for closely held trusts if any beneficiary quoted their TFN to a trustee in quarter 3, 2020–21.
    • Lodge lost members report for the period 1 July 2020 to 31 December 2020.

    Contact us if you have any questions.

    Government-backed COVID-19 Loans Extended

    The government is extending its small business COVID-19 loans scheme until June 2021. If you need help to access these loans or you want to find out if you are eligible, don’t hesitate to drop us a message.

    What Does It Take to Grow Profitably?

    When you ask entrepreneurs what their business goals are, one of the most common answers will be something to do with growth. However, the real challenge is achieving both growth and profitability.

    This Forbes article discussed how to grow profitably based on the model by Daniel Marcos of The Growth Institute. According to this model, different strategies are required depending on where a business is at in its development.

    Startup stage (1-5 employees)– Focus on total revenue. Prove the business model and reach breakeven first. Learn who your more profitable customers are and build systems around delivering your products and services.

    Grow up stage (6-15 employees)– Add the right revenue. Conduct an analysis of your gross profit to determine the customers you want to build processes around. It may be a difficult mind shift, but learn to say no to the customers that are not a good fit for your business.

    Scale-up (16-100 employees)– Concentrate on the cash flow aspect of your business. Many companies grow too fast and flame out. So in order to not outrun your cash flow, you should know the cost of acquiring a new customer.

    Ideally, you’d want the revenue generated by new customers to offset the cost of acquiring them. You want to have net cash flow from growth that you can fund through your operating profit.

    Besides working on your cash flow, you must also continue refining the processes you started in earlier stages, growing your people, and adding talent with new skills that can help you in scaling up.

    Need personalised business advice? Get in touch with us and tell us more about your business.

    Get in touch

    Contact us if you have any questions or want to discuss the next steps for your business.

    Contact us

  • 5 Common Bookkeeping Pitfalls — and How to Avoid Them

    5 Common Bookkeeping Pitfalls — and How to Avoid Them

    Although most entrepreneurs recognize the importance of careful financial management, few want to spend their time dealing with numbers. Unfortunately, not keeping a close eye on your income and expenses can be very costly for a business.

    Here are five of the most common bookkeeping pitfalls, and some simple tips for getting back on track.

    1. Mixing business and personal

    All too often, entrepreneurs adopt a “buy now, sort later” approach to expenses, using the same credit card for personal and professional purchases. At the end of the month, they’re left poring over statements, trying to sort things out. Mixing business and personal expenses costs extra hours of bookkeeping each month, and muddies your overall financial picture.

    Avoid this pitfall by using a separate credit card and bank account for business, and being disciplined about separating expenditures.

    1. Neglecting to track reimbursable expenses

    Receipt-tracking is a necessary part of business ownership. You need to keep track of receipts to understand spending patterns and effectively manage your company’s finances. And if you want to claim deductions at tax time, you’ll need to submit receipts along with your tax return.

    But far too many business owners take a haphazard approach to collecting and organizing receipts—especially while on-the-go, where a whopping 50% of their expenses are generated. Get the deductions you deserve and simplify tax prep by using an expense-tracking app.  Options like Expensify and BizXpenseTracker can record mileage, billable hours, and other expenditures, as well as generate expense reports. Plus, many of these apps sync seamlessly with your business bank account and accounting software.

    1. Not taking advantage of technology

    Are you still relying on manual accounting methods? While basic spreadsheet tools can get the job done, they leave the door wide open for human error. Mortgage loan giant, Fannie Mae, once uncovered a $1.1 billion error on their Excel spreadsheet, citing “honest mistake” as the cause.

    What’s more, manual methods simply can’t match the technological benefits offered by software like QuickBooks or Xero. These systems track invoicing, link with your credit card and business account, organize expenses, and generate insightful financial reports.

    1. Not keeping accounts up to date

    Let’s be frank. Most business owners don’t look forward to that weekly appointment with “the books.”  In fact, many entrepreneurs cite bookkeeping as their most dreaded responsibility and will find a host of reasons to avoid it.

    1. Doing it all yourself

    It is completely understandable for budget-conscious entrepreneurs to try to cut costs by handling bookkeeping on their own. However, taking advantage of professional help—even on a part time basis—can generate substantial savings of time and money over the long term.

    Time to get savvy about bookkeeping. The biggest pay off? Saving time with these bookkeeping tips will allow you to invest your talents and energy where they will be most profitable.

  • Tips for Buying Your First Investment Property

    There are many people who believe that when it comes to investing, nothing beats real estate. This may be true, but you still have to be smart when making your real estate investment decisions. Although investment properties can be a savvy financial move, there is plenty that can go wrong if you don’t fully understand the market, the types of investment properties, and your current financial situation.

    1. Know your financial situation

    You probably want an investment property as a way of bringing in extra money, but how much do you need and what do you want that money for? Is the investment property to fund your retirement? To create a little extra cash flow for your current lifestyle? Do you have enough assets and income to cover for the down payment? If you’re investing in residential real estate, can you afford the mortgage payments during periods no one resides in the house? Can you cover maintenance costs?

    Take a hard look at your current financial situation and your goals. Will buying the income property help you reach those goals or are there better investment options, depending on your overall needs? Consider talking to a financial advisor, who can explain the options available to you and what works best based on your current situation and your goals.

    2. Know the types of real estate investments

    Typically, the first type of investment to come to mind is residential property, which can be a great investment property. Such investments are easy to understand and fairly straightforward—you buy property such as an apartment, house, or vacation home—and then rent it out, often under a lease agreement. Since there are always people who need a place to live but aren’t in a position to buy, there is always a need for rental properties.

    Residential real estate isn’t the only type of investment property, however. You could look into commercial real estate—such as office space or professional units—which tends to be more stable than residential because it comes with longer leases. Retail real estate is similar to commercial, but is for retail businesses such as restaurants or consumer goods stores. Retail real estate may provide you with additional income above the rent because landlords often sign agreements with the business where the landlord receives a share of business profits. Additionally, such agreements tend to be for longer terms than residential real estate so they offer more stable income.

    Other types of investment properties include vacant land, although that only provides income if you develop the land or sell it, and industrial real estate.

    3. Understand the market

    Before you invest, it’s vital that you understand the real estate market you intend to invest in. Real estate prices fluctuate and are affected by a variety of factors. A large industrial business closing can lower real estate prices drastically, just as changes to government policy can affect the value of your investment. You’ll need to understand the region you want to buy in, any anticipated changes to that area, where the real estate is the most valuable—or the most stable—and other factors that affect real estate prices in that area.

    Final thoughts

    Investment properties are a great way to enhance your income, but it can take a while before you start noticing changes to your bank account. The best thing you can do before investing in real estate is research. Make sure you know and understand the real estate market, the types of investment properties available to you and which work best for your needs, and what your financial situation and goals are. Doing so will help you make the best property investment decisions for you.

    Get in touch with us if you’d like tailored advice for your situation.

  • COVID-19 Business Update – 14 April 2021

    COVID-19 Business Update – 14 April 2021

    Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward.

    Australia Drops COVID-19 Vaccine Target

    Prime Minister Scott Morrison said he won’t set a new target date for Australians to get vaccinated, as concerns about the AstraZeneca vaccine and European export restrictions delay the rollout of the programme.

    Despite this, Australia is still ahead of some nations including Canada, France, and Japan in terms of vaccinations. About 1.2 million people out of 25.8 million have already received a first dose.

    Business Conditions Hit Record High

    The National Australia Bank’s report showed business conditions, which involve hiring, sales, and profits, hit a record high despite the end of the JobKeeper wage subsidy.

    The index jumped to 25 points in March from 17 a month earlier, signifying strong recovery. This is a positive sign but please get in touch with us if you have any concerns about the future of your business.

    $2000 Upfront Cash So Unemployed Move for Work

    Starting in May, job seekers will get up to $2000 upfront if they move to a new location for ongoing work. Job seekers will get help relocating for jobs offering at least 20 hours a week, instead of the existing threshold of 30 hours.

    Emergency Funding for Those Affected by Cyclone Seroja

    Tropical cyclone Seroja has left a trail of damage across a 1,000 km stretch in Western Australia, as it made landfall near Kalbarri on Sunday with 170 km/h winds.

    Emergency funding is now being offered to affected residents through the Australian Government Disaster Recovery Payment. Under this scheme, payments of $1,000 for adults and $400 for children will be provided. You can check your eligibility here.

    RBA Left Cash Rate Unchanged in April

    The Reserve Bank of Australia has left its cash rate unchanged at 0.1%. It has been at this level since November. RBA said they won’t increase the cash rate until inflation was sustainably within the 2% to 3% inflation target and wages growth was higher.

    Government Extends Energy Bill Support to June

    The Federal Government has extended the COVID-19 energy support measures for consumers and small businesses until the end of June.

    This means energy suppliers must work out and rearrange payment plans with customers who are experiencing financial hardship. This may include payment plans that mean no payments will be required for some period of time.

    Energy companies will also not be allowed to cut the power to customers for unpaid bills as long as the customer is working with the supplier to find a suitable payment solution.

    Wage Subsidy Scheme for Apprentices to Be Expanded

    The government will spend $1.2 billion on the wage subsidy scheme for apprentices, as JobKeeper ended last month.

    Under the apprentice scheme, the government will pay half the wages of apprentices up to a maximum of $7,000 each quarter for 12 months. It will run until September 2022. Ask us if you have any questions.

    Claiming the JobMaker Hiring Credit

    The JobMaker Hiring Credit is available for eligible employers who create new positions for eligible young people between 7 October 2020 and 6 October 2021.

    To receive JobMaker Hiring Credit payments, you don’t need to satisfy a fall in turnover test. All you need to do is complete three steps:

    • Register – via ATO online services, Online services for business or the Business portal, or through your registered tax or BAS agent.
    • Nominate your eligible additional employees – by running payroll events through your Single Touch Payroll (STP) enabled software by 27 April 2021.
    • Claim payments – using ATO online services, Online services for business or the Business portal, or through your registered tax or BAS agent.

    You can register at any time until the scheme ends. Ask us if you have any questions.

    Upcoming Key Dates

    Upcoming key lodgment and payment dates for businesses:

    21 April

    • Lodge and pay March 2021 monthly business activity statement.
    • Lodge and pay quarter 3,(January–March 2020–21) PAYG instalment activity statement for head companies of consolidated groups

    28 April

    • Lodge and pay quarter 3, 2020–21 activity statement if electing to receive and lodge by paper and not an active STP reporter.
    • Pay quarter 3, 2020–21 instalment notice (form R, S or T). Lodge the notice only if you are varying the instalment amount.
    • Make super guarantee contributions for quarter 3, 2020–21 to the funds by this date.

    30 April

    • Lodge TFN report for closely held trusts if any beneficiary quoted their TFN to a trustee in quarter 3, 2020–21.
    • Lodge lost members report for the period 1 July 2020 to 31 December 2020.

    Contact us if you have any questions.

    Government-backed COVID-19 Loans Extended

    The government is extending its small business COVID-19 loans scheme until June 2021. If you need help to access these loans or you want to find out if you are eligible, don’t hesitate to drop us a message.

    What Causes Your Profit Problem?

    Do you ever feel stuck in your business? After all the time and effort you’ve put into it, your revenue seems to have plateaued or maybe has even decreased. If you’re having a profit problem, it can be a sign of a deeper issue that needs to be fixed.

    Below are the three key areas that you should look into:

    • Products or services– Are your customers happy with what you’re offering? Listen to what they have to say and make the necessary improvements.
    • Systems and structure in place– Next, evaluate if you’ve put a good structure and systems in place. As your business grows, some systems you created in the beginning may no longer work. Also ask your staff for their opinions as they may draw insights on issues you didn’t know existed.
    • People and company culture– Did you hire the right people for the job? Are you lacking key talent that could potentially boost your business performance? Also, take a good look at the company culture you’ve created. You may be surprised to find out that you have fostered an unsustainable working environment full of inefficiencies, disarray, or burnout.

    While some business challenges are out of your control, it’s important to first cross out possible issues that are within your control. The good thing about finding out that the cause of your profit problem is something internal is that it also means that you have the power to fix it.

    Need tailored business advice? Get in touch with us and let’s talk about your specific situation.

    Get in touch

    Contact us if you have any questions or want to discuss the next steps for your business.