S & H Tax Accountants

Author: Bizink

Employee vs contractor – what you need to know in AU

Depending on the nature of your business, you may have workers who are employees or contractors, or you may have both. Each has their merits, but it’s important to review which are which in order to meet your tax and super obligations.

When you have an employee, you must withhold PAYG tax, pay super, and report and pay fringe benefits. Contractors generally look after their own tax obligations. However, you may still have to pay super depending on the nature of their work.

It’s against the law to treat an employee as a contractor. Significant penalties apply if you do, so it’s important to get it right.

The simplest way to remember is:

An employee works in your business and is part of your business.
A contractor is running their own business.

But how can you be sure that you’ve got an employee or a contractor on your hands?

Does there come a point that you should actually be hiring a worker as an employee, when you thought they were a contractor?

There are six factors to consider:

1. Ability to subcontract or delegate

An employee is not able to subcontract or delegate the work. They must perform the outlined tasks themselves. If they can’t do the work themselves for any reason, and someone else does it, this is substitution. Your business would then pay the other person.

A contractor can delegate the work as long as they’re not obligated to do it themselves as per the contract. If your contractor can’t work, they would organise for another qualified person to do it. You would pay your contractor as usual, who would then pay their subcontractor.

2. Basis of payment

An employee is paid a set amount per period of time. The most obvious example would be an annual salary or hourly wage.

Some employees are paid piece-work rates. They receive an amount per successful sale, or per the number of pieces produced. Commission basis would be a price per item structure.

A contractor, however, is paid an agreed-upon price in exchange for a predetermined result. Some contracts may specify the amount to be paid in increments as stages of the project are completed. But the key takeaway is that a contractor is paid when the agreed-upon result is achieved.

3. Equipment, tools, and other assets

If your business is responsible for providing the equipment, tools, and other assets required to perform the job, that’s characteristic of an employee.

If the worker is providing these items, they are likely a contractor.

4. Commercial risks

Employees do not bear commercial risk and they are not liable for correcting any defects in the work at their own expense. Instead, your business takes this responsibility. The worker will be paid for the time required to perform the task to completion.

A contractor does assume the commercial risk. They are responsible for fixing any mistakes on their own time. This extra work would fall under the umbrella of the terms set at the beginning of the project. Your business does not have to pay for any extra time taken or materials used. You only pay once the work is completed.

5. Control over the work

Employees have to complete the work the way the employer specifies. What work is done, where it’s done, how it’s done, and when it’s done are all up to you. The employee then completes the work as required.

Contractors are not subject to the same rules. They decide the way the work is done, so long as it meets the obligations laid out in the contract.

6. Independence

An employee works within a business. They complete tasks as required until they leave the job.

A contractor operates independently and may have any other number of contracts on the go with other companies. They can freely accept and refuse other work. Their obligation is complete when they deliver the specified outcome.

Final thoughts

It can be confusing to make the determination between an employee and contractor, but it’s important that you do so in order to meet your tax obligations and play by the rules. The ATO has a great tool to help you determine the status of your workers. If you are also in need of understanding your tax obligations please contact S & H Tax Accountants, our team of accountants are well-qualified, vastly experienced and extremely professional. Book an appointment today with S & H Tax Accountants, call us on 03 8759 5532 or you can email us on info@sahtax.com.au

14/11/2022
5 signs you need to start outsourcing tasks

When you start a small business, it’s usually only you behind the whole operation. You wear many hats, from CEO to clean-up crew. As you pour your heart and soul into your business and it begins to grow, the amount of work involved grows with it.

Because a small business is so focused on survival, you pay a lot of attention to the bottom line. This makes a lot of sense, but it also leads to being seriously overworked.

There will inevitably come a time when you have to consider letting go of some control and paying others to take some things off your plate. Here are five signs that it’s time for you to start outsourcing tasks:

You’re overwhelmed and stressed

This one’s a dead giveaway. If you find that there isn’t enough time in the day, you’re losing sleep, free time is a thing of the past, and you’re not your usual self — you’ve reached burnout. This is not a sustainable place to be, and you would be wise to start offloading some activities ASAP.

You’re spending time doing things you hate

Nobody goes into business hoping to spend their days completing tasks they despise. It starts with a dream, or an idea for how to make things better. Or even an idea for how to make more money. Whatever the reasons you had for starting your business, they likely did not include doing chores that are tedious or that you don’t enjoy.

When you decide to outsource, start with functions that are eating up your time in an unenjoyable way. Once you let these go, you’ll find your purpose renewed because you can focus on what you loved about your business to begin with.

Quality of work has gone down

When you’re working hard and trying to manage all aspects of your business, it can be easy to miss this sign that you’re not juggling it all as well as you thought. Many times, the first signs come from a client complaint–often along the lines of delivering a lower-quality product or missing something in your services.

When the quality of your work declines, it’s definitely time to hire some help. If you’re not satisfying your customers, your business will begin to suffer – and then you won’t need the extra help after all, because there won’t be a business to run.

No time to grow

If you want your business to grow, you need time to plan for it. If you’re just getting by and not able to plan your next steps, you need to outsource some tasks. When you find that you’re barely holding it together to get everything done and there’s not time for anything else, get help. No business gets to the next level by completing the bare minimum.

No personal time

When your work life is taking over your personal life, it’s time to enlist some help. It isn’t sustainable to work so hard that you have no time for family, friends, or enjoyable pursuits.

You might be saving a bit of money, but you will also exacerbate your stress and miss out on the enjoyable parts of life. Did you get into business so you could work 16 hours a day seven days a week? Probably not, but you may find yourself doing that for weeks and even months at a time.

If that’s the case, you’re going to burn out. It’s time to get some help.

Final thoughts

It’s a difficult mindset shift for an entrepreneur who has spent all their time so far trying to save and earn as much as possible. But needing to outsource your tasks is actually a sign of success. When you take the leap and hire someone to share the burden, you will be pleasantly surprised by the many ways that it pays off. Get in touch with S & H Tax Accountants Melbourne if you’d like to learn more about how we can help make outsourcing easy for your business. S & H Tax accountants Melbourne and small business Accountant Cranbourne offer outsourcing service to small businesses. Call your Accountant at 1300 724 829

22/10/2022
Time Blocking vs Time Boxing, other techniques, and how it all fits together

In a world with endless distractions, it’s no wonder that we find it difficult to complete tasks. Focus is hard to come by these days.

This is especially true when you’re working from home. Household tasks that would otherwise be out of sight and out of mind are suddenly in your workspace.

With that said, there are some proven methods to help you get things done. Time blocking and Time boxing are the two main techniques, though there are some others as well. Read on to find out what might work best for you.

Time Blocking

You’re probably most familiar with time blocking. Schools and factories are designed with this technique in mind. We work on a specific task for a set amount of time, and then we move on to the next thing when that time is up. Perhaps that time is punctuated by a bell or an alert, just like in school.

Enter Parkinson’s Law – the idea that work expands to take up the amount of time allowed. Have you ever noticed that if given three weeks for a project, it takes three weeks to do?

It’s no coincidence. You’ve likely subconsciously worked at a pace that caused it to take that long. And succumbed to all sorts of procrastination, perfectionism, and other useless pursuits in the process.

But it’s not all bad. Time blocking is an excellent way to get something started. Once you dedicate a bit of time to a project you’re stuck on, you’re going to identify sub-tasks that need completing. And those are useful for getting the most out of your time.

Time Boxing

Time Boxing flips time blocking on its head. It’s the preferred method of productivity for Bill Gates and Elon Musk. Instead of allocating an amount of time to work on a task, you allocate the amount of time it will take you to get it done.

It’s a mind shift where you decide when you will get something done. You then plan your day into boxes that are as small as 15-minute increments. And then you do what’s required in that amount of time.

If you find that you didn’t complete your task, you add more time to complete it the next time you’re time boxing.

Another key element of time boxing is the concept of working without distraction. Because you’re working against the clock to complete your task, you’re less likely to respond to a distraction. Once your time is up, it’s up. You can check your distractions later during the time box allocated to them.

Pomodoro

You’ve likely heard of the Pomodoro technique – the one with the cute little tomato-shaped kitchen timer.

It’s a type of time boxing where you allow 25 minutes for a task, and then take a 5 minute break. Repeat as necessary.

Task Batching

Here you allocate time to complete many low-value tasks at once, such as reading emails. It’s meant to keep your mind focused on activities that require similar thought patterns as opposed to jumping between tasks. Many people find it difficult to focus this way, because there’s not a ton of concentration required.

Day Theming

Some swear by keeping a theme to each day, such as “marketing” or “lead generation.” It’s another form of task batching, but with heavier tasks in mind. The idea is to keep everyone focused on the job at hand and to avoid having to switch gears.

The 80/20 Rule

This is the Pareto Principle – the idea that 80% of output comes about from only 20% of input. In other words, we should place a priority on the 20% of factors that will produce the greatest results.

But beware – this doesn’t mean that we ignore the other 80% of tasks. It means that you should give the most attention to the things that will create the best return.

Deep Work

This is the practice of eliminating distractions and creating an almost cave-like environment to work in. This way, you can really tune everything out and get to it. Research suggests 90-minute increments are best for deep work.

Final thoughts

There’s no right way to be productive. It’s a personal subject that’s different for everyone. However, eliminating distractions to get things done is universal. Try any combination of the techniques mentioned above to find what works best for you and your workplace. Get in touch with S & H Tax Accountants Melbourne if you’d like to learn more about how we can help . S & H Payroll accountants Melbourne and Payroll Accountant Cranbourne offer outsourcing service to small businesses. Call your Accountant at 1300 724 829

19/10/2022
5 common payroll implementation errors you can easily avoid

Upgrading or changing your payroll system comes with a ton of wonderful benefits. Saving time and money, making everyone’s lives easier, and better integration are all good reasons to consider a change.

But if the switch is mishandled, the results can be catastrophic and lead to long-lasting problems. Read on for some tips on how to avoid a disastrous payroll system migration.

1. Give the project the time it needs

It’s true that people may enjoy coming to work. But for most people, earning money is the main reason they seek out employment. Our jobs make the world go round, and support us and our families so that we can afford everything else in life.

Not getting paid, or getting paid incorrectly, is a massive problem for your employees. As a business owner, you want to make sure your employees are paid right and paid on time. This protects your business, but it also protects their happiness.

Changing payroll systems is a huge undertaking. There are many moving parts and people who will be affected. Make sure to give this project the time and attention it deserves.

Determine what will be necessary to make the transition, understand who it affects, and communicate with everyone involved. The planning process is critical. Treat it as the foundation to making the switch, and the rest will fall into place.

2. Map out integrations

All payroll software will do the basics, but that’s just the beginning of your new system. Learn about what other software will integrate with your new platform. Do your research for what add-ons you will need, and build accordingly.

Your new system will be able to connect with HR software, advanced accounting functions, time tracking tools, and so much more. Envision what your complete system looks like and understand how to get it to all work together.

When you have the full picture from the planning stage, it will make the transition a lot smoother.

3. Adjust the platform to your needs

The main motivation for implementing a new payroll system is to make things easier. Yet, many businesses overlook the ways that their new technology can help. It’s easy to lean on old methods for getting things done because they’re familiar, but that would be a mistake when switching to a new payroll system.

Make sure you know about and understand the features of your new platform. This is where the real time, money, and energy savings will come in. Automate anything you can. When these tools prove their worth, your team will understand the reason for switching.

4. Don’t bring over bad data

When implementing or switching to a new system, take the opportunity to go over your incoming data. Yes, all of it. Get rid of what you don’t need, while keeping in mind what you have to keep on hand according to any relevant tax agencies.

While payroll software is incredibly helpful, it can only do so much. If you put bad data in, it will spit bad data out. Go over the information you’re inputting with a fine toothed comb to get the best result.

5. Test, test, test

This phase is critical, and is often overlooked. Before you officially implement anything, make sure to test it out. There’s no quicker way to turn your staff off of something new than for it to work poorly or not at all right out of the gate. Take the time to test now and reap the benefits when you go live.

Final thoughts

Deciding to change your payroll system is a big undertaking. But with some planning and preparation, it can be a smooth and rewarding transition. Get in touch with S & H Tax Accountants Melbourne if you’d like to learn more about how we can help make payroll easier for you. S & H Payroll accountants Melbourne and Payroll Accountant Cranbourne offer outsourcing service to 20plus employee businesses. Call your Accountant at 1300 724 829

18/10/2022
Business Update – 27 September 2022

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

Permit and dining fees set to return to Melbourne

To ease the burden of the pandemic, the city allowed alfresco dining options at restaurants without having to pay a fee. Now that business is bouncing back, Melbourne is seeking to reestablish the permits traditionally required after waiving $2.36 million worth of fees since October 2020.

World stocks led down by Wall Street

The US Federal Reserve made it clear on Friday that it would continue to raise interest rates in an effort to stop inflation, even if it means causing a deeper recession.

Many iconic Aussie brands are being sold to foreign companies

There are many reasons why it seems like there has been a slew of foreign acquisitions of Australian companies lately, including the world opening back up for business after the pandemic. Some experts say the number of takeovers will only continue to rise.

It’s the right time to buy a mansion

As we ride the rollercoaster of the volatile housing market, one type of property has currently slid in value more than others. If you’re able to buy a mansion now you will likely snag a deal, as they gain more value during the good times than a modest house would. But buyer beware – they also lose the most value in the bad times, which is why now is a good time to buy.

Treasurer warns that owning a home is about to get even less affordable

For those of us who are unlikely to purchase a mansion anytime soon, Treasurer Jim Chalmers is warning Australians to “batten down the hatches.” With interest rates rising steadily in the US, he warns that the worst is yet to come in Australia.

Qantas restores vegetarian options after backlash

Australia’s national carrier was forced to backtrack on its decision that would have forced passengers to either eat meat or go hungry.

Did you notice our recent mining boom?

Believe it or not, Australia just experienced its greatest ever mining boom. Iron ore, copper, and coal all hit all-time price highs. The reason you likely didn’t notice is that it came with huge rises in gas export prices, so it actually made us poorer.

How to save money at the bowser

The temporary 22.1 cent fuel excise cut is set to end this week, just as the cost of living is as high as ever. Finder money expert Sarah Megginson shares two tricks that can help you save on your fuel costs.

Cryptocurrency investors falling victim to fake websites

A rising global cryptocurrency scam includes fake websites tricking investors into thinking they’re using a legitimate company.

Peeled mandarin orange for sale

Shoppers in Sydney were left gobsmacked last week when someone spotted a single mandarin orange for sale – peeled, sectioned, and presented in an environmentally-friendly cup. The asking price was a shocking $9.50.

Get in touch

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

30/09/2022
Important Things to Know about an Estate Plan

If putting together your estate plan isn’t at the top of your priority list, you’re not alone. It’s something that people typically don’t want to do–for a variety of reasons. It’s not fun to think about what happens after we’re gone, and we often believe we have a lot of time to get our affairs in order.

No matter how large or small your estate is, you need a plan to ensure your wishes are carried out and your loved ones are taken care of in the way you see fit. A will is an important part of your estate plan, but your estate plan is bigger than your will.

Here’s what you need to know about having an estate plan.

It’s for everyone

The term “estate plan” may make people think that it’s only for the incredibly wealthy, but an estate plan is for anyone who wants to ensure their assets–whatever those maybe–are available and accessible to their beneficiaries. Assets include bank accounts, investments, properties, vehicles, household furnishings, and anything else that you own or are owed.

Beyond that, an estate plan lays out where your money should go, who should be in charge of your estate, and who will take guardianship of your minor children.

Your priorities might change

Review your estate plan regularly, especially if you have a major shift in your circumstances. The will you wrote when you were 30 and newly married may no longer reflect your wishes now that you’re 55, and on your second marriage with three children, 2 step-children, and a grandchild.

Perhaps you’ve purchased a second property, now have a retirement plan, or have collected valuable artworks. These are all items that can change how your estate is divided. Any change in your circumstances should trigger a review of your estate plan.

This estate plan review should include who your beneficiaries are and if they’ve changed recently, how you want them to receive your assets, who you trust to make important medical or financial decisions if you become unable to, and how your bank and investment accounts are managed.

It’s not just for after your life

We associate estate planning with death, but it’s just as much about planning for disability or incapacitation. Your estate sets out who can access your money to ensure your medical needs are taken care of–and who will make important decisions on your behalf. Without an estate plan, someone in your family may have to petition the court to be allowed to make decisions for you, and you run the risk that the person granted that ability is someone you don’t trust.

If you don’t have a plan, decisions will be made for you

With an estate plan, you dictate how your assets are distributed. Without a plan, your assets are distributed according to the law where you live. Simply living with your significant other might not be enough to ensure they receive your estate in regions that don’t validate common-law marriages. In those areas, your estate goes to your biological family, not your unmarried partner, unless you have a will.

If you have a blended family, you may want your biological children to receive all of your estates or you may want it split with your current spouse and their children from a previous marriage. Without an estate plan, those wishes may not be carried out.

Final thoughts

An estate plan is a vital part of your financial planning. It sets out how you want your estate distributed, who you want to be in charge of, and who can make decisions for you if you’re not able to. If you’ve been putting off your estate planning, now is a great time to get started. Estate planning is important for you and your next generation. S & H Tax accountants cranbourne can help you in estate planning.

24/09/2022
Understanding different types of insurance

There are many types of insurance for individuals, and choosing the right ones for you can be overwhelming. These policies are distinct, yet they often overlap.

It’s smart to review your personal insurance policies any time you have a significant life event. This ensures that you and your loved ones are cared for should you find yourself unable to work.

Read on for a brief explanation of the different types of individual insurance.

Life Insurance

This is the main way to protect your family and dependents from financial hardship if you die. It is an agreement between you and an insurer, where you pay the insurer premiums and in exchange, they pay your estate a certain sum upon your death. The paid sum is called a death benefit.

If you have named a beneficiary, the money goes to that person instead of to your estate. The sum received by your beneficiaries can be used for anything, from funeral costs to everyday bills to putting a child through college.

There are a few different types of life insurance, so you’ll still have to do some research to determine which type makes the most sense for you.

It works to your advantage to get a life insurance policy early. Your health and age will be evaluated to determine the coverage you’re eligible for and how much it will cost.

There are some limitations to life insurance. For example, suicide within two years of purchasing the insurance is not covered. Often, death by extreme sports is also not covered.

Income Protection

Also known as disability insurance, income protection is a long-term policy designed to protect your income if you become unable to work. It lasts until you are either able to return to work or you retire.

Income protection insurance typically covers 50%-65% of your regular income. It acts as a safety net so that you are able to pay your bills and mortgage when you can’t work. It would cover instances of illness or injury, either short or long-term. The payments are ongoing and regular.

This insurance can be claimed as many times as necessary as long as the policy lasts. There is usually a deferred waiting period of several weeks before payments begin. It is distinctly different from illness or injury insurance, which instead pay out a lump sum.

Illness insurance

This insurance covers a critical illness, such as cancer, stroke, or heart attack, but exact coverage may vary depending on your policy.

The benefit received is paid like that of life insurance, in that it is a lump sum and can be used in whatever way you see fit. Often this payment will go to something related to your care or income replacement, but it doesn’t have to.

Injury insurance

Injury or accident insurance covers you if you experience an accident that prevents you from working. What qualifies as an accident varies from policy to policy, so make sure to go over what’s included.

These policies typically exclude injuries that occur while the covered person is intoxicated or committing an illegal act.

Long-term care insurance

The costs for long-term care can be enormous. Long-term care insurance would reduce that should you need care either in your home or in a facility.

These policies provide ongoing cash payments, but read the details to find out exactly how your policy would work.
Health insurance

A health insurance policy varies widely based on your country of residence. Typically you pay a premium in exchange for coverage of a wide range of health care needs. How this is structured depends on where you call home.

Imagining adversity that may come your way is not anyone’s idea of fun, but it’s responsible to take steps to protect yourself in case these things happen. Obtaining a set of personal insurance policies ensures your loved ones would be okay. The peace of mind is well worth the cost of the associated premiums.

15/09/2022
Business Update – 13 September 2022

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

All big four banks now aligned with Reserve Bank’s rate rise

After last week’s decision by the Reserve Bank to raise the official cash rate to 2.35 per cent, Westpac is the last of the big four banks to raise its interest rate to align.

Public holiday may hurt small businesses, critics say

Government announced that Australia will observe a public holiday on September 22 to mourn and honour Queen Elizabeth II. However, not everyone is enthused – critics say that a forced closure will be hard on already-suffering businesses.

Summit makes it clear that we need more women in the workforce

The Jobs and Skills Summit was held earlier this month, and was meant to address unemployment and labour shortage concerns. Some say it’s a start, but to see real improvement, we need more women in the workforce immediately.

Government seeks to ease housing crisis with new law

Labor is expected to introduce a new law this week that would seek to encourage pensioners to downsize, freeing up their large homes for younger families.

Aussies struggling with rental housing hikes

Renters in most areas are faced with an impossible situation. With the price of everything going up, landlords are telling renters to either pay more or get out once their leases are up. Some are reporting increases of hundreds of dollars per week.

Calls to extend fuel excise cut go unanswered

The fuel excise cut is set to expire on September 29, and the government has made it clear that it won’t be extended. Many are concerned about an economic ripple effect – people may stop spending in retail in restaurants if they can’t afford to drive anywhere.

How the government could help small businesses as inflation rates rise

Inflation is painful for small businesses, but there are ways to ease the sting. SmartCompany has rounded up three ways the government could help protect Australian businesses from inflation.

Construction growth falls in June quarter

While the Australian economy grew overall last quarter, the construction industry took a bit of a hit. Skills shortages, supply chain disruptions, and inflation-affected material costs combined to deliver the blow.

How China’s economy affects Australia

China’s economy has been under close watch as it adapts to evolving Covid-19 restrictions, property market fluctuations, and population changes. Find out why all this matters to Australia here.

Money will change eventually, but not anytime soon

With the death of Queen Elizabeth II on September 8, Commonwealth nations around the world began to wonder what will happen to the existing coins that bear the queen’s likeness.

Get in touch

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

14/09/2022
When to raise your prices

It’s an inevitability in every business – you have to raise your prices to continue making a profit. There are many factors that go into deciding how much to charge, all of which are dynamic. The rising cost of goods, inflation, and a changing market are just a few reasons why any small business has to reevaluate its rates regularly to stay competitive (and to stay in business).

While it may seem like you just set your prices or recently adjusted them, this is a task that should be done once a year at minimum – preferably more. Read on for some signs your business is ready to charge more.

1. You have a loyal customer base

Once you’ve been in business for a while, it’s likely that you’ve built up a loyal base. People will return to you when they know they will get a quality product. They’re also more likely to return when they get to know you personally.

If your business has a lot of customers who bargain shop because you offer rock-bottom prices, choosing to raise your rates likely won’t go well. Wait until you’ve established a base of loyal customers who will be happily willing to pay more knowing they’ll get fantastic, personal service from you.

People buy from those they know, like, and trust, so once they get to know, like, and trust you, they’re likely to keep coming back. Build relationships to foster that customer base.

2. It’s been a while since you raised your rates

The rate of inflation is reason enough to raise your prices, otherwise you’re operating at a loss. Keep track of the rate of inflation each year and adjust accordingly. People generally understand raising prices in times of high inflation–even if they don’t like it–since every business on earth must either keep up, or accept the loss to their bottom line. It’s just good business sense.

For decades, the average rate of inflation has hovered somewhere around the 3% mark, with some years worse than others. If you’ve paid attention to the news lately, you’ll know that things are a little different in 2022. Take into account what’s going on in the bigger picture, and then adjust your rates accordingly to avoid absorbing the hit.

3. You’ve added value

This doesn’t necessarily mean that you’re offering more literal services for the same price. Value can also come in the form of increased experience or new skills. When you and your staff have added value to what they’re able to offer, that can and should be passed along to your customer base. People are almost always willing to pay more for a superior product or service.

4. Your competitors are charging more than you

Be sure to take a look around to see what your direct competitors are charging. As your business evolves and becomes better with time, check to make sure that you’re comparing yourself against other businesses of the same class.

If you don’t keep up with regular rate increases, you may be surprised to find that competitors you initially considered to be equal to you have raised their rates significantly. You will then find yourself in a position where you have to raise your rates significantly in one go just to keep up. Keep on track by regularly checking what they’re doing.

5. Your close rate is over 80%

Some people like hard and fast numbers, so this is a good rule of thumb. You want to aim for your close rate to be between 75-80%. If it’s lower than that, you likely have an issue with perceived value. If it’s higher than that, you’re probably overworked and also attracting mostly bargain hunters – not a true loyal customer base.

If everyone is saying yes to your prices, you probably aren’t charging enough.

Final Thoughts

There is a lot to consider when raising your rates, and you don’t want to do too much too fast. Make a point to reevaluate your rates every six months, and you’ll find that you can keep your customer base while also keeping up with the increased cost of doing business.

If you need advice, on how setting new prices may effect your accounts and how this would then effect your costs, please contact S & H Tax Accountants. We have qualified staff that can help you in the best possible way. Book a consultation with one of our accountants today, call us at 03 8759 5532 or emails us at info@sahtax.com.au.

12/09/2022
Setting and Achieving Financial Goals

Financial security, whether that’s for a business or an individual, requires planning. You need to know where you want to be, where you are now, and how to cross the gap between the two places. Having goals and a plan makes it more likely that you’ll achieve financial security–whatever that means to you.

Here are some steps to setting your financial goals.

1. Be specific with what you want

It’s easy to say you want “financial security” but what does that mean to you? After all, financial security can mean different things to different people. Do you want money to cover your retirement? Do you want enough cash that you can handle emergencies? Do you want to live a lavish lifestyle or are you planning on downsizing?

Once you know your big goal, write out what that actually looks like to you. How much money do you feel you’ll need in retirement to cover your lifestyle? How much would make you comfortable? If you’re not sure what you’d need, talk to your financial advisor, who can ask you the questions and provide you with the guidance you need to determine how much money you should be planning for.

Remember that the most actionable goals are SMART (specific, measurable, attainable, realistic and timely). Know when you want to retire, for example, how much money you’ll need and how much you can realistically save by that time.

2. Write your list of goals and put each in a category

Some goals are short-term, some are medium-term and some are long-term. Planning for a vacation this year is a short-term goal, while retirement planning is long-term. Once you know what your goals are, put them in a category based on whether they are short-, medium-, or long-term goals. This will help you plan how much you need to set aside to achieve each, and what sort of timeline you’re looking at.

3. Determine your assets and debts

If you’re like most people, you likely have both assets and debts. Achieving your financial goals won’t be as simple as saving money. You’ll have debts you need to pay off. In the past, people often focused on paying off their debts, but that meant there wasn’t as much money set aside for the future.

Before you can map out a plan to achieve your goals, you need to know where you are currently. How much money do you have available to you? How much are you bringing in monthly? What are your expenses? What debts do you have and what are the interest rates?

Take stock of money flowing into and out of your accounts over a few months. Where do you spend the most money? Are there places you could cut back?

4. Build a plan to help you reach your financial goals

This can be a difficult step to take on your own because your own patterns and habits might influence how you plan. It’s worthwhile to talk with a financial advisor, who can review your information and help you set up a path forward. They can also keep you accountable for achieving your financial goals, and assist you in addressing any emergencies that may arise. They will also identify areas where you could cut back and how to make your money go further for you.

Final thoughts

By knowing what your goals are and having a plan to achieve them, you’re more likely to achieve financial security. Talking with an advisor can help you get your finances on track.

09/09/2022
The differences between wages, salary, commission, and bonuses

There are a few different methods that employers use to pay their employees, and while they may have similarities, they each also have their own implications for your business and its employees. On top of that, there may be a blended model at play, in which you offer two types of compensation at once, such as a wage and bonuses.

How you pay your employees will impact your finances and your reporting requirements.

Read on to learn the differences between the main ways of earning money in the workplace.

Wages

Most entry-level positions offer an hourly wage in exchange for work. An hourly wage might be $10. So if the employee works 8 hours that day, they would be compensated $80 for that day.

There are minimums set by law which vary depending on where the business operates. Typically, the minimum wage is directly related to the cost of living in that area.

Generally, there are a set number of hours that can be worked in a week, and working beyond that maximum entitles the employee to a higher rate of pay. There may be premiums associated with working undesirable shifts, or an even higher rate of pay that employees are entitled to for working on holidays.

Because of the number of hours worked, the specific days worked, and overtime, the amount an employee will potentially earn each year can vary widely when paid with hourly wages.

Salary

A salary is the standard compensation for management and upper-level positions. It is an agreed-upon annual total, where a certain number of hours worked per week is expected – typically 35 to 40. There will be other requirements outlined, such as how many days per week are expected.

Depending on the schedule, the total salary is divided into equal payments for each pay period. Often, a salary is agreed to as an annual figure, with each payment equally divided by the number of payments. If you pay an employee a salary of $60,000 a year once a month over 12 months, you would pay $5,000 each payment, not accounting for any deductions.

How a company manages its payment schedule will vary from company to company.

Any other pay, such as overtime worked, commissions earned, or bonuses, are separate from salary. Many companies don’t offer overtime pay for extra hours worked, but they may offer commissions or bonuses for performance.

Commission

This is a form of compensation that is based on performance. The amount an employee receives can vary drastically, depending on how well they perform in a pay period.

Commission is typically a calculated percentage of the value of goods or services sold. It is meant as an incentive to drive employees to make sales. For example, you may offer to pay $1,000 as a commission for each car sold. An employee who sells 10 cars in the pay period would receive $10,000 commission.

All earnings made by commission are counted as taxable income.

Some salaried or hourly positions offer a commission on top of regular earnings. However, some positions, especially those in sales, can be based solely upon commission. This means that if the employee doesn’t sell anything, they don’t get paid.

Bonuses

A bonus is a compensation type that is not guaranteed. It is usually tied to some kind of company goal, usually driven by sales or performance. A bonus might be awarded on an individual basis, or for a team or other work group.

The idea behind a bonus is to create an incentive to meet a specific goal. It is rewarded when the goal has been reached, or evaluated at specific times. Bonuses are offered on top of a wage, salary, or commission.

Because of the unofficial structure, bonuses are loved by some and loathed by others. It can be motivating to receive a bonus, as it’s completely separate from what an employee already earns. However, it can also leave employees feeling disgruntled if they feel they weren’t supported well enough to reach the goal and therefore missed out on the bonus. If the goals are unrealistic, employees may also struggle with motivation even if they are offered a bonus.

Final Thoughts

Whatever payment structure your company follows, make sure you are consistent and fair as an employer, and follow all applicable laws. Contact us to learn more about different forms of compensation and what they mean for your bottom line. S & H Accountants Melbourne offer payroll service for small businesses. Contact S & H Tax Accountants Melbourne to discuss your payroll needs.

05/09/2022
5 ways outsourcing payroll can help you

When you start a business, you’re typically your only employee and payroll is about as simple as it gets. But as you grow, you hopefully find yourself in the position of needing to take on more employees. Before you know it, what was once a very straightforward task becomes a giant undertaking that’s sucking up most of your time.

This is when it makes sense to outsource your payroll. While this is yet another cost to consider, it’s actually a great idea that easily pays for itself. Here are the ways outsourcing your payroll can help you:

1. Free up your time

In any small business, there is a lot of legwork that comes with running payroll. The percentage of time spent on it is quite large compared to the other aspects of your business. This is because it’s a complex task that needs to be done every single week – forever. You may feel that payroll is never done and that’s because it truly never is.

Outsourcing your payroll is one of the easiest ways to free up more of your time, which can then be put into other tasks that actually help your business thrive. Once you reclaim this huge chunk of time, you’ll wish you made the switch sooner.

2. Reduce errors

Yes, there are the actual hours worked that you need to account for. That’s complicated enough. But add in sick days, holiday pay, other types of leave, employees leaving early or arriving late, and other complications, and suddenly your payroll has become a daunting task that you would probably rather just ignore.

This is where the beauty of outsourced payroll comes in. Because you are paying a professional to worry about all of these little things, you no longer have to worry about all of the potential areas where you could make a mistake.

And the thing about a payroll mistake is that it typically takes even more time and energy to fix. Not to mention, you likely now have to assuage a disgruntled employee.

With outsourced payroll, this mammoth task is simply done for you, and done correctly. Every single time. And that’s good for you and good for your employees.

3. Reduce costs

While you may initially balk at the cost of outsourcing your payroll, it’s actually a money-saver. When you put a dollar amount on all of the time you spend struggling through, this is often enough in itself to pay for a pro to take it off your hands.

Not to mention, the cost of fines and penalties that can arise from mistakes. If you find yourself having to cough up money in these circumstances, you’ll wish you outsourced your payroll sooner.

4. Maintain compliance

We can’t all be tax or finance professionals. Chances are, if you’re running a business, you have an entirely different industry on your mind most of the time. So, it makes sense to hire someone who’s in the business of payroll to look after this for you.

Maintaining compliance with your region’s tax authorities is a challenge that has to be met every year. And tax laws and codes are always changing. The average person can’t be expected to stay on top of all of this information, so why not get someone who knows the ropes to take care of it for you? It could save you a lot of money come tax time.

5. Eliminate headaches

There is nothing more valuable than the feeling of being stress-free. When you hire a payroll professional, you can relax knowing that your business is in good hands, that your employees are getting paid correctly and on time, and that you’re doing everything right.

Final Thoughts

There are a lot of reasons why outsourcing your payroll to S & H Tax Accountants Cranbourne and S & H Tax Accountants Malvern East just makes it easy for you.. By letting go of this time-consuming, finicky task, you will likely find that you’re enjoying your business more. Not only that, but you’ll be able to put your energies into other things, meaning your business is likely to grow.

S & H Accountants have the experience and resources to manage large payroll services. If you have any questions contac us on 0387595532.

26/07/2022
Protect Business Reputation by Planning for Big Sales
A business plan is essential for business development. But even with a solid plan, there is some aspect of unpredictability. There is a multitude of variables that have to be taken into account, any of which could have a great impact on the prosperity of a small business.

Sales forecasting may well be the most difficult and complicated of all areas covered in a strategic business plan. To predict sales, a business has to consider numerous economic, demographic, and social variables. Because sales have a major impact on income stream, a business plan should include a continuity strategy for dealing with poor sales performance. But what happens if a business does better than expected?

Can Customer Service Handle Additional Requests?

A lot of small businesses fail to appreciate the impact sales have on customer service resources. Even quality products and services have mishaps, and when this happens customer service will be expected to resolve any issues. The more sales a business makes, the greater the number of product-related issues it will receive.

No business will ever complain about booming sales but it should be prepared for increased customer service issues. If a business finds itself unprepared, the following problems may result:
1. Customer service overload: The sheer volume of customer contact is too much for current resources to handle and calls and emails from customers go unanswered.
2. Reduction in service quality: In a rush to answer all customer issues, staff doesn’t take the time to fully deal with a problem or assure the customers the issue will be resolved. This leads to customer dissatisfaction and can have a negative impact on future sales.
3. Delayed resolutions: Greater pressure on customer service resources affects the time taken to resolve consumer issues. The delayed resolution will lead to increased refund requests and decreased business reputation.
4. Reduced production and sales: A business uses all available staff resources to deal with customer queries, in order to maintain a quality level of service, but this results in a slowdown of production and sales.
Customers Don’t Get What They Order

There are other key business processes affected by increased demand:
1. Production/stock
2. Packaging/delivery
Let’s look at the problem associated with each process one at a time. Starting with production and stock:

Production and stock

If goods are made to order: Increased demand instantly places pressure on production. Employees will have to work overtime or the business may have to employ additional staff to complete orders on time.

Product stock levels: Increased orders will eat away at stock levels. A business with pre-existing stock is initially in a better position to cope with increased demand. However, if demand remains high there will be increased pressure on production to fulfill orders and replenish stock levels.

In either situation, a business has to have plans in place to deal with a sudden rise in sales. If a business is unable to increase production to cope with demand, there will be a delay in order processing. This is damaging to both reputation and profitability.

Packaging and delivery

More sales mean more packaging material is required and a there will be a larger volume of orders to deliver. If a business handles packaging and delivery in-house, then the onus falls on the business to have adequate packaging materials and logistics to cope with a sudden spike in demand.

For the businesses that package goods in-house and use a postal service or courier to ship, the responsibility for delivery can still fall on the business. Customers don’t care about high-demand excuses and expect a business to have sourced a delivery solution that can process and deliver orders on time, regardless of order volume.

Prosperity Favours the Prepared

The focus has been on material products. However, all the examples given so far are transferable to digital products or services. Digital products also require production and delivery. A digital product can be affected by limited human resources. The effect of additional demand on supply can impact any product or service.

Businesses often make plans for less-than-perfect situations. Disaster recovery and continuation processes are a pessimistic, but necessary, business fail-safe. A start-up business always hopes its sales will achieve best-case forecasts but is unlikely to forecast a sales boom. The outcome of this is that not many small businesses factor in adverse effects of high sales into short-term strategy.

There is nothing foolhardy or unrealistic about planning potential solutions for increased demand. It’s better to have a plan and never need it than to have no plan and fail to meet demand. Making a plan will only cost some forethought and time. Failing to meet demand will wreak havoc on business reputation and prosperity.
23/07/2022
Is business insurance worthwhile?
If you’re like many small business owners, your business may not be adequately insured in the case of a fire, flood, natural disaster, theft, or personal injury.

Often home-based business owners assume they are covered under their homeowner’s policy. Other entrepreneurs, working long hours and pulled in too many directions, may never get around to talking to an insurance agent about their business.

If you’ve been procrastinating on business insurance, consider this: small businesses are much more likely than larger companies to be devastated in the event of an unforeseen loss, and business insurance needn’t be costly. You can save money on a bundled business insurance package, or lower your premiums by simply increasing your deductible.

Take a look at these 4 essential types of business insurance designed to protect businesses of any size.

General liability insurance
Protects business owners should they, an employee, product, or service cause personal injury or property damage to a third party.

Property insurance
Protects business owners who own a building or other valuable assets (e.g. equipment, computers, tools, or inventory) in case of fire, flood, vandalism, or theft.

Business interruption
Protects business owners from financial loss should business activity be suspended for a period of time (e.g. following a theft, flood, or other unforeseen loss).

Vehicle coverage
Protects business owners for damage and collisions when vehicles owned or leased by the business are used by staff to perform their jobs or transport products/equipment.

Save cash with a business owner’s policy

A number of factors come into play when determining business insurance premiums, including the type of business insured, location, gross revenue, and types of coverages required. A business owner’s policy (BOP) offers the most complete coverage in a customizable bundled package, and the best value. This type of policy typically includes:
- Liability insurance
- Property insurance
- Crime insurance
- Business interruption insurance and
- Vehicle coverage.
Insurance for home-based businesses

If you run a business out of your home, you may prefer an add-on or rider to your homeowner or renter insurance rather than a separate comprehensive policy. This can be a cost-efficient option for solopreneurs who don’t own a large amount of inventory or valuable equipment—in other words, a business owner for whom a fire, theft, or flood won’t greatly disrupt or devastate the business.

An in-home policy is another option for home-based business owners who need greater protection than a rider or add-on to an existing policy can offer. Generally speaking, this type of policy costs a bit more than a rider but protects the owner and up to three employees against theft, injury, and other risks to the business.

Final tips

When it comes to protecting your small business, your profit margins aren’t what should determine whether or not to get insurance. What matters is how great the impact would be to your business should something unexpected go wrong.

Get in touch with a reputable insurance company, or seek out an independent business insurance broker, to do a risk assessment for your business—then see exactly what kind of insurance you need.

If cost is a barrier to getting business insurance, take heart; your premiums may very well qualify as an end-of-the-year tax write off.
21/07/2022
Business Update – 19 July 2022

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

20-year comparison shows how drastically the housing market has changed

At the turn of the millennium, the median age of first-time homebuyers was 24.5 years, with mortgages generally taken out on 20-year terms. Today, the median age has risen by at least ten years and 30-year terms are commonplace.

China pleased by recent deal with Australia in its own currency

A ship of Australian iron ore arrived in China’s Shangdong province last week – and was paid for in Chinese yuan instead of in US dollars.

Rent reaches a new high

The rapid increase in rental rates across Australia has many wondering – if your landlord increases your rent, how long must they wait before they can do it again?

ANZ to acquire Suncorp’s bank

A deal between ANZ Banking Group and Suncorp worth $4.9 billion is expected to go through this week.

Money isn’t the only barrier to entering the housing market

Even after saving a deposit, getting into the housing market for first-time buyers typically takes several months due to ever-changing variables and other factors.

The surprising way people are making ends meet

With the cost of groceries skyrocketing, unexpected populations are turning to dumpster diving to fill their pantries. There are even Facebook groups dedicated to the practice.

Air travellers endure hectic travel weekend

The end of the school winter holidays paired with recent increases in COVID-19 cases led to absolute chaos at airports over the weekend.

Crypto company owes its users billions after crash

Celsius CEO and founder Alex Mashinsky said last week that its cryptocurrency lending platform Celsius Network owes its 1.7 million users billions of dollars.

Senior has to drive 250km to keep welfare benefits

A 63-year-old woman needs to make a 250km round trip to meet her mutual obligations and keep her benefits under the new Workforce Australia program. Others across the country have spoken out stating similar unreasonable requirements.

Aussie creativity on full display at tax time

Australians are always looking to save money on their taxes, and some get very bold and creative with their deductions. A round-up of recent deduction attempts can be found here.

Get in touch

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

19/07/2022
What is lifestyle planning and how does it affect my finances?

When you think of financial planning, you probably imagine ways to increase your wealth, such as making a budget, reviewing what’s coming in and going out, and creating a plan for how to make the most of your money.

You may think of investing in stocks or bonds, or of starting a retirement fund. Perhaps you think of saving for a major expense, like a home or education for your children.

And that all counts as financial planning. But lately, the concept of lifestyle planning is giving financial planning a run for its money.

What is lifestyle planning?

Lifestyle planning is the idea of using your money to get the most enjoyment out of your life.

It means maybe foregoing the maximum financial return in exchange for something you value more. You choose to budget your money in a way that makes you truly happy. In other words…

You plan to use your money in the ways that bring you the most joy.

If the idea seems scary to you, you’re not alone. Most of us were raised with the idea that you should always save for a rainy day, put away as much money as you can, and invest instead of spend.

But lifestyle planning doesn’t mean that you frivolously blow through your life savings.

It means taking the time to consider how you want to live the one life you get. And then, working off of that vision by creating a financial plan that makes those dreams come true.

Get started with your lifestyle plan

Sit down and do some soul searching. Write down exactly what you want your life to look like.

Where do you want to live? Who do you want to live with, if anyone? What kind of car do you want to drive? Where do you want to go to school? What clothes do you want to wear? How do you want to eat? Do you want to travel? If so, how often?

Get as specific and as detailed as possible. Sketch out your perfect life in your mind.

Think about the things that are most important to you.

Once you’re satisfied with your vision, take stock of where you stand today.

How much money do you earn now? What’s your future earning potential? Are you spending money on things that aren’t actually important to you?

When you start matching up your reality with the way that you want to live your life, the gaps will become obvious. You will then be able to make adjustments. Maybe it’s not as important to drive a luxury car or any car at all. Maybe a change in career is necessary.

It’s okay if expensive items actually are more important to you than you initially thought. You can now plan for that. Or maybe it has become clear that you actually need more freedom of mobility in your career if travel is a priority.
Whatever it is that you come up with, you can start making a roadmap for how to get there.

And that’s how lifestyle planning affects your financial planning. You can’t reach your goals if you don’t give yourself the means to do it.

Once you know what you want, you can make a specific plan for how to make it a reality. When you’re ready, enlisting the help of a professional accountant will allow you to make the best financial decisions.

Get in touch if you would like to learn more about how we can help you get started with a personal lifestyle plan. With a bit of strategy, you can start living the way you envision sooner.

18/07/2022
How to use your website to attract quality staff

Most companies need a website to conduct their business, but it’s also a critical piece of the puzzle in attracting amazing team members. Here are a few things you can do to make sure your website is always making a great impression, so you can attract great people to join your team.

1. Think of your website as your storefront

These days, your website is the online face of your business. It can be even more important than your physical office. Potential employees are going to check it out first to decide if you’re a good fit for them. They will decide whether a job is worth applying for solely based on the website of the company who posted it.

Consider your social media presence as well, which is important to younger workers. Folks want to get an idea of the general feeling that your company evokes — and to see if your values align with theirs. It’s critical to make this first impression count.

Check that everything links up, works well, and looks good. If you impress them with your online presence, especially your website, they’ll take the next step.

2. Define who you’re trying to attract

It’s difficult to show off what you have to offer if you’re not clear on exactly who you’re trying to impress. Take some time to think about what skill set, attitude, and qualifications you desire. Once you know who you’re looking for, it will be easier to figure out what sort of perks or features they would find appealing. Make sure to display these on your website.

3. Showcase what makes you different from the rest

Put yourself in the shoes of a career-hunter. When you’re looking around online for a prolonged amount of time, companies often start to blur together. This is why it’s so important to make yourself stand out.

When you’re sifting through a big stack of resumes, you need something to catch your eye to call that person for an interview. By the same token, job-seekers are also looking for something that makes them stop and take a longer look.

If you offer great benefits, say so. If you have a great volunteer program, show it off. If your office celebrates the end of every work week with drinks, mention it. Things that make you unique will help you to stand out in the mind of someone great.

4. Show your personality

It’s critical that you display your true personality on your website. If you’re giving off the impression of a stuffy, old-fashioned office… chances are you will attract candidates that feel stuffy or old-fashioned. Likewise, if your presence is too casual, you might attract staff that are also just a little bit too casual.

Your About page is the best place to do this. If you “hire and fire” based on your company values, it’s a good idea to showcase what they are. This way you can find great people who share them.

5. Show off your team

People want to get an idea of what their day-to-day life would feel like if they worked for you. If you have a team, showcase them. Be sure to include a bio with more information and insight into each person and their role.

If you’re performing regular employee feedback surveys, see if you have any shining testimonials to showcase on your careers page. Talented people are smart. They’re going to find out what your team (past and present) has to say about you one way or another. Why not show them the great things they have to say right up front?

6. Use video

Great photos are non-negotiable on any website, but another way to stand out is by using video. It’s a memorable way to give more insight into what your company is like. You can use it to showcase your office space or locations, or you can use it to drive home your values by including testimonials from clients or staff. Feel free to get creative, but make sure to hire a professional to help you make the best impression.

Final thoughts

Gone are the days of setting up a static website with your phone number and address. Today’s websites have to be beautiful, impressive, and dynamic. Fresh content is key. If you want to attract top talent, make sure your website is always ready to give a stellar first impression.

17/07/2022
Business Update – 12 July 2022

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

Many air travellers stranded as airports see busiest days since the beginning of the pandemic

A significant portion of the airline workforce is recovering from COVID-19 or the flu, making flight delays and cancellations increasingly common.

Doctors urge 4th shot as COVID-19 cases rise again

As a new Omicron wave makes its way across the country, doctors urge everyone eligible to get a 4th shot as soon as they can to stave off serious illness.

Twitter shares tumble amid broken deal

Twitter shares slid on Monday, after Elon Musk said that he was abandoning his $65.21 billion bid for the company. Twitter responded that they will challenge Musk in court over the broken deal.

Interest rate hikes threaten construction sector

Master Builders Australia is urging the Reserve Bank to ease off rate hikes. Many companies in the construction sector are facing financial ruin under the strain.

Rental and social housing crisis reaches the bush

Tamworth, which has not traditionally had a problem with access to affordable homes, is suddenly feeling the effects of the rental crisis and now needs more social housing.

ACMA code targets scam SMS messages

A new code registered by the Australian Communications and Media Authority requires mobile phone companies to trace, identify, and block SMS scam messages. They could face fines of up to $250,000 if they fail to comply.

Australia lagging in EV adoption, but could catch up with tax incentives

The research centre RACE for 2030 has released a report recommending tax reforms similar to those in Europe to encourage fleet managers to buy EVs, rather than traditional internal combustion engine vehicles.

Majority of Australians wonder why PM isn’t recommending masking again

Anthony Albanese’s approval rate is wavering, signalling that the honeymoon period is over. Most respondents in the most recent poll stated that they feel Australia should return to mask-wearing to curb the winter spread of COVID-19.

Food price increases affect every aisle in the supermarket

Researchers are calling on the federal government to help subsidise growers, claiming it’s costing some lower socioeconomic families 40% of their income to buy a week’s worth of healthy food.

Landlords warned to keep a “squeaky clean” record as tax season approaches

According to experts, the tax office is keeping an even closer eye on potentially dubious real estate claims in 2022. Some 2.2 million Australians have rental property deductions, and claim $50 billion in tax deductions annually.

Get in touch

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

12/07/2022
How to respond effectively to complaints

Complaints are an unfortunate part of running a business, but they do happen. No matter how hard you work to please your clients, eventually someone will have something negative to say. However, with the right approach, you can turn complaints into a useful tool to strengthen your business.

Here are 6 tips to effectively responding to complaints:

1. Remember that this is not an argument

The reason that a client complains is disappointment. It’s a symptom of a need that wasn’t met. They are not looking to fight with you. In fact, taking the time to complain signals that they wish to continue the relationship. Don’t muck it up by getting into a defensive, back and forth argument. Nobody wins in that scenario.

Your customer is actually giving you an opportunity to continue working together. It’s tough to keep cool when someone comes in hot with a complaint, but remember: feedback is a gift. It just may not feel like it in the moment.

2. Listen

The key here is to put explanations aside. Listen until the client has said everything on their mind. Don’t start thinking of how to respond while they are still speaking – they’ll see your eyes glaze over the moment you do, and that will make matters worse. If it’s a written complaint, read it over a few times to make sure you’re not inserting a tone or accusation that may not actually be there.

You want and need to understand the complaint. Without this information, you can’t move forward in any meaningful way. The moment for explanations and solutions will come. Take this time to really set everything else aside and just listen.

3. Repeat what you heard

It’s important to give the information back to the customer to make sure you’re on the same page. A lot can get lost in translation, so to let them know that you hear them. Make sure that you understand the complaint by saying it back in your own words.

This lets both of you know that you hear and understand the problem. Once they acknowledge that you’ve got it right, you’ll be able to get to a solution.

4. Acknowledge

Forget for a moment that you’re defending your business or firm. Try to imagine how it would feel to be the one making the complaint. You should be able to identify what need wasn’t met, or how you disappointed them.

When you put yourself in their shoes, it becomes clear what solution you would expect. You will also be able to see where you fell short, and how you can avoid doing that to others going forward.

5. Offer a solution

After the work you’ve done to understand the problem, finding a solution will be the easiest part. You know what you’d expect as a customer, and you know what you’re able to offer as a business. Putting this information together will create a solution that makes both parties feel good.

Let them know sincerely that you want to make it right. This is your business after all, and reviews spread a lot faster and further when they’re negative. But, when a business goes out of their way to fix a problem, people let others know about it with enthusiasm.

6. Follow up

This may be the most critical step, and it’s also often overlooked. After some time, follow up personally. This shows your client that you care about the ultimate outcome, and that you want to make sure that they’re doing well with the solution.

It doesn’t take long, but the effort goes a long way. They will remember the time and attention you put into making sure they were satisfied. They will also be likely to come back with more business and refer you to others.

Nobody likes to see a complaint come in at their business. We all work so hard to make sure we’re providing a valuable service that is truly helpful, and knowing that we let someone down can be hard. However, take it as an opportunity to become even better, and you’ll find that your business continues to grow.

11/07/2022
4 signs you’ve found the right financial advisor for you

Most people need some help when it comes to financial planning and investing. That’s when we turn to financial advisors. With many options available, it’s important to ensure you choose a financial advisor that you can trust and feel comfortable with.

So what are some signs that a financial advisor is a good fit for you? Here are some things to look for when deciding who is best for you to work with.

1.They have clients that are similar to you

Every client has their own unique needs, goals, and circumstances. But there are some commonalities among clients. Lawyers, doctors, teachers, and other professionals have different pension and retirement plans that affect how much they need to put away themselves. Their careers also alter the resources available to them.

The stage you’re at in your career affects your resources and needs as well. A younger person with a long investment horizon ahead of them may have a greater risk tolerance than someone a year or two away from retirement.

When looking for a financial advisor, find someone who helps clients in situations that are similar to yours. While they won’t be in an identical position, their needs will be similar enough that you can get an idea of how well that financial advisor can help you.

2.They come with a network of advisors

Just as your general practitioner will send you to a specialist to deal with specific healthcare concerns, a financial advisor will have a network of professionals they can refer you to for your financial needs. For example, they may have an estate lawyer who can help with drafting wills, an accountant for tax returns, and a bookkeeper for business dealings.

A strong financial advisor knows that they can’t take care of everything for you, and they will have cultivated a team of experts who can help you manage your finances.

3.They keep you focused on your goals

Financial advisors know that investing is stressful, and novice investors can become overwhelmed by dips in the market. This leads to impulsive decisions with disastrous consequences. Your advisor is a coach, who keeps you on track when investment issues arise.

They can show you the bigger picture–how a dip in the market doesn’t mean it’s time to cash everything in–and how the long-term trends affect your investments. Because they’re there to help you, they can take the emotion out of your investments and bring it back to the information available to you, so you can make smart decisions.

4.They take the time to get to know you

As mentioned before, every client is different. Even where there are similarities, your unique circumstances mean your goals, resources, and needs are different from other clients. The best financial advisors take the time to get to know and understand their clients. They ask about risk tolerance, future goals, what those goals look like, and how comfortable you are asking questions.

They take the time to explain everything to you, so you feel confident and comfortable with the decisions being made. They make it clear that they’re working with your best interests in mind, based on your circumstances. And they are available to talk through your concerns.

It’s in your best interests to work with a financial advisor who works well with you. That’s how you get access to the best, most knowledgeable, and most relevant advice. Talk to people to find out who they go to for their financial advice. Look up reviews and testimonials and don’t be afraid to ask questions. That’s how you get to know the people who will be helping you.

07/07/2022