S & H Tax Accountants

Blog

  • Business Update – 19 January 2022

    Business Update – 19 January 2022

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

    Should You Mix or Match Your Booster Dose?

    In Australia, Pfizer and Moderna COVID-19 vaccines are recommended as booster shots, regardless of which vaccine you had for your first two doses. Some research has indicated that “mixing and matching” vaccines could give your immune system a bigger boost.

    Eligibility Criteria for Tourism, Hospitality and Gym Grant in SA Extended

    The South Australian government has announced the eligibility criteria for its Tourism, Hospitality and Gym Grant will be extended to include newer businesses that began operating after December 2020.

    The payment will be:

    • $3,000 (for employing businesses) or $1,000 (for non-employing businesses);
    • Additional $1,000 for CBD businesses;
    • Additional $7,000 for tourism, hospitality and other eligible businesses with turnover above $2 million;
    • Additional top-up equivalent to automatic payment for businesses that did not receive the automatic payment.

    The grant is automatically paid to businesses that have received a COVID-19 Tourism and Hospitality Support Grant or those that received an additional COVID-19 Business Support Grant. You can check for more available grants here.

    Support for Small Businesses

    If your business is struggling, the ATO offers a wide range of support for those affected by the pandemic, natural disasters, mental health issues, or financial difficulties.

    Learn more about the available support, and the small business debt helpline for free, independent advice.

    Update Your ABN Details

    Make your ABN details even more detailed by adding up to 4 additional business activities on top of the main business activity currently stored. By reflecting the full range of your operations, government agencies will be able to provide you with the right support and access to stimulus measures.

    You can update your ABN details using myGovID and Relationship Authorisation Manager (RAM) to log in.

    Webinars to Help You Become More Efficient with Tax and Super

    The ATO will be offering two webinars this January and February to help you streamline processes and manage your tax and super online.

    These sessions will teach you the ins and outs of GST, pay as you go withholding, pay as you go instalments, how to lodge your tax returns, and more. Need expert help with your tax and super? Get in touch with us today!

    Pandemic Leave Disaster Payment

    People who are forced out of work to isolate due to being infected or being a close contact are eligible for the Pandemic Leave Disaster Payment.

    You are also eligible if you are caring for a child under 16 years old who is a close contact or infected, or someone with a disability or a severe medical condition who is a close contact of someone with COVID-19.

    The payment was initially given in the form of a $750 lump sum payment for seven days. However, this changed slightly from 18 January into a tiered system. While it remains a lump sum payment, those who lose over 20 hours of work will receive the full $750, but if you lose between 8 and 20 hours, you will only receive $450.

    A financial hardship test has also been introduced, which means anyone with $10,000 available and accessible to them will not get the payment.

    You can find more information about Pandemic Leave Disaster Payment conditions specific to your state or territory here.

    Visa Fee Refund Offered to Students and Backpackers to Fill Worker Shortage

    The federal government will provide a fee rebate, which is around $600, for international students who arrive anytime in the next eight weeks and for backpackers on working holiday-maker visas who arrive within the next 12 weeks. This is an attempt to help prop up industries struggling with worker shortages.

    COVID-19 Vaccination Info Kiosks

    COVID-19 vaccination information kiosks are now open in shopping centres and at events in New South Wales, Queensland, South Australia and Western Australia to help you book a vaccination appointment.

    Grants for South Australian Businesses

    The South Australian government has announced a $40 million support package for businesses affected by COVID-19 restrictions. Initial automatic cash grants of up to $11,000 will be paid to eligible tourism and hospitality businesses, as well as gyms.

    A second cash grant will be available on application for businesses who suffered a 30% reduction in turnover in the two weeks starting from 27 December. Other businesses who have had a 50% reduction in turnover during the same period will be eligible for grants of up to $8,000.

    Meanwhile, a grant of up to $100,000 will be available for major events that had to be cancelled or delayed between 27 December and 27 January.

    Business Adoption of eInvoicing

    More than 1.2 billion invoices are exchanged in Australia every year, with around 90% of invoice processing still partly or fully manual. Replacing a paper or email invoice with an eInvoice will lead to up to around $20 in cost savings.

    The government has taken a series of actions to support the business adoption of eInvoicing.

    In the 2020-21 Budget, as part of the JobMaker Digital Business Plan, the government invested $3.6 million to facilitate eInvoicing adoption across the public sector.
    In the 2021-22 Budget, as part of the Digital Economy Strategy, the Government invested a further $15.3 million to improve business awareness and accelerate eInvoicing adoption.

    The government is now seeking stakeholder views on further ways to support business adoption of eInvoicing, including by consulting on the idea of a Business eInvoicing Right (BER). You can submit responses to this consultation up until 25 February 2022. You can view the submission guidelines here.

    Get in touch

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

  • Business Update – 12 January 2022

    Business Update – 12 January 2022

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

    Pandemic Leave Disaster Payment

    People who are forced out of work to isolate due to being infected or being a close contact are eligible for the Pandemic Leave Disaster Payment.

    You are also eligible if you are caring for a child under 16 years old who is a close contact or infected, or someone with a disability or a severe medical condition who is a close contact of someone with COVID-19.

    The payment is currently given in the form of a $750 lump sum payment for seven days. However, this will change slightly from 18 January into a tiered system. While it will remain a lump sum payment, those who lose over 20 hours of work will receive the full $750, but if you lose between 8 and 20 hours, you will only receive $450.

    A financial hardship test will also be introduced next week, which will mean anyone with $10,000 available and accessible to them will not get the payment.

    You can find more information about Pandemic Leave Disaster Payment conditions specific to your state or territory here.

    NSW Introduced Restrictions Due to Omicron Variant

    NSW introduced restrictions on socialising, as the government tries to ease pressure on its health system due to the increasing cases of COVID-19.

    Singing and dancing at clubs and bars is banned from 8 January to 27 January, while residents are being encouraged to limit large indoor and outdoor gatherings, and to remain seated while drinking in hospitality venues. This comes as mask mandates and density limits in hospitality settings were reintroduced last month.

    Consumer Confidence Relatively Stable

    Consumer confidence took a smaller-than-expected decline of 2.2% in December, according to the results of ANZ-Roy Morgan’s consumer confidence survey. However, economists warn that Omicron and supply shortages could still adversely impact the economy.

    Confidence metrics used by the bank registered mixed results. Consumer confidence in current economic conditions declined by 8.7%, confidence in their current financial conditions increased 1.4%, and confidence in future financial conditions improved by 0.7%.

    ServiceWA App Launched

    The WA Government has launched the free ServiceWA app to help Western Australians with WA’s Safe Transition. This app allows people to show proof of their COVID-19 vaccination, check in at businesses and venues with SafeWA, and access their G2G Pass for interstate travel – all in one convenient place.

    You can also use this to access important information such as where to get tested or vaccinated, how to prepare a household for COVID-19, and check exposure location sites. The app is safe and secure, as it requires the user to use a Digital Identity to create an account to prove who they are online.

    You can find more information here.

    Retail Sales Hit Record Before Omicron Outbreak

    Retail sales surged to a record $33 billion in November before the Omicron outbreak. As the economy reopened, pent-up consumer demand was unleashed in the pre-Christmas and Black Friday sales period.

    Retail sales jumped 7.3% in November, confirming the economy was rebounding strongly before being subdued by the pullback in consumer spending and staff shortages in the new year due to the Omicron variant.

    Record sales in clothing, footwear and personal accessories (up 38.2%), household goods (up 11.6%), and department stores (up 26.0%) were hit in November.

    COVID-19 Vaccination Info Kiosks

    COVID-19 vaccination information kiosks are now open in shopping centres and at events in New South Wales, Queensland, South Australia and Western Australia to help you book a vaccination appointment.

    Grants for South Australian Businesses

    The South Australian government has announced a $40 million support package for businesses affected by COVID-19 restrictions. Initial automatic cash grants of up to $11,000 will be paid to eligible tourism and hospitality businesses, as well as gyms.

    A second cash grant will be available on application for businesses who suffered a 30% reduction in turnover in the two weeks starting from 27 December. Other businesses who have had a 50% reduction in turnover during the same period will be eligible for grants of up to $8,000.

    Meanwhile, a grant of up to $100,000 will be available for major events that had to be cancelled or delayed between 27 December and 27 January.

    WA Border Reopening

    Western Australia will reopen its borders at 12.01am on 5 February. For domestic travel, you can find information about state-by-state travel restrictions here. Meanwhile, for international travel, you need to check the official advisory of the country you’re visiting.

    Depending on the location, you may need to obtain a PCR test, show proof of vaccination, quarantine, or purchase insurance. Australia has a travel bubble with Singapore, which means West Australians can travel to the country without having to quarantine.

    Business Adoption of eInvoicing

    More than 1.2 billion invoices are exchanged in Australia every year, with around 90% of invoice processing still partly or fully manual. Replacing a paper or email invoice with an eInvoice will lead to up to around $20 in cost savings.

    The government has taken a series of actions to support the business adoption of eInvoicing.

    In the 2020-21 Budget, as part of the JobMaker Digital Business Plan, the government invested $3.6 million to facilitate eInvoicing adoption across the public sector.
    In the 2021-22 Budget, as part of the Digital Economy Strategy, the Government invested a further $15.3 million to improve business awareness and accelerate eInvoicing adoption.

    The government is now seeking stakeholder views on further ways to support business adoption of eInvoicing, including by consulting on the idea of a Business eInvoicing Right (BER). You can submit responses to this consultation up until 25 February 2022. You can view the submission guidelines here.

    Get in touch

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

  • Business Update – 5 January 2022

    Business Update – 5 January 2022

    Welcome back to our Weekly Digest. We hope you and your family have all had a great time during the festivities! Read on for the latest updates and some ideas to help you have a great start into the new year.

    COVID-19 Vaccination Info Kiosks

    COVID-19 vaccination information kiosks are now open in shopping centres and at events in New South Wales, Queensland, South Australia and Western Australia to help you book a vaccination appointment.

    Australia to Push Ahead with Reopening

    The government said the milder impact of the Omicron variant of COVID-19 meant Australia could push ahead with plans to reopen the economy even as new cases hit a record of over 37,000. According to Prime Minister Scott Morrison, it’s important to manage our own health, ensure that symptoms are monitored, live with the virus, and keep the economy going.

    Grants for South Australian Businesses

    The South Australian government has announced a $40 million support package for businesses affected by COVID-19 restrictions. Initial automatic cash grants of up to $11,000 will be paid to eligible tourism and hospitality businesses, as well as gyms.

    A second cash grant will be available on application for businesses who suffered a 30% reduction in turnover in the two weeks starting from 27 December. Other businesses who have had a 50% reduction in turnover during the same period will be eligible for grants of up to $8,000.

    Meanwhile, a grant of up to $100,000 will be available for major events that had to be cancelled or delayed between 27 December and 27 January.

    WA Border Reopening

    Western Australia will reopen its borders at 12.01am on 5 February. For domestic travel, you can find information about state-by-state travel restrictions here. Meanwhile, for international travel, you need to check the official advisory of the country you’re visiting.

    Depending on the location, you may need to obtain a PCR test, show proof of vaccination, quarantine, or purchase insurance. Australia has a travel bubble with Singapore, which means West Australians can travel to the country without having to quarantine.

    Business Adoption of eInvoicing

    More than 1.2 billion invoices are exchanged in Australia every year, with around 90% of invoice processing still partly or fully manual. Replacing a paper or email invoice with an eInvoice will lead to up to around $20 in cost savings.

    The government has taken a series of actions to support the business adoption of eInvoicing.

    • In the 2020-21 Budget, as part of the JobMaker Digital Business Plan, the government invested $3.6 million to facilitate eInvoicing adoption across the public sector.
    • In the 2021-22 Budget, as part of the Digital Economy Strategy, the Government invested a further $15.3 million to improve business awareness and accelerate eInvoicing adoption.

    The government is now seeking stakeholder views on further ways to support business adoption of eInvoicing, including by consulting on the idea of a Business eInvoicing Right (BER). You can submit responses to this consultation up until 25 February 2022. You can view the submission guidelines here.

    5 Ways to Beat Inflation

    Business owners will encounter a lot of opportunities and face hurdles in 2022. One of the greatest challenges is likely to be inflation due to the increase in national debt, among other factors. This Forbes article shares some tips on how entrepreneurs can fight back.

    1. Do more with less. Many have improved their financial discipline due to the pandemic. Continue to cut waste and find more ways to do more with less. After cutting waste, focus on building high-margin products and services.
    2. Seek more low-cost financing and cut financing costs. Government financing can be a great source of cheap financing for business.
    3. Raise more internal financing. Improve your cash flow.
    4. Use smart driver-focused sales. One of the biggest problems in business is getting sales and spending too much to get it. Learn how to sell more with less.
    5. Make your strategy finance-smart. Evaluate the financial impact of your business strategy and adjust if necessary.

    Need more personalised business advice? Get in touch with us today so we can discuss your specific concerns.

    Get in touch

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

  • FBT Implications of Christmas Parties

    FBT Implications of Christmas Parties

    It’s that time of the year again! As we approach the end of 2021, many businesses host Christmas parties and give gifts to their employees as appreciation for a year of hard work. However, some business leaders don’t understand the fringe benefits tax (FBT) implications of such.

    In order to avoid significant costs to your business, read this article and learn more about your obligations.

    What is Fringe Benefits Tax (FBT)?

    A fringe benefit is a type of payment that employees receive separately from their salary or wage. Fringe Benefits Tax is paid by employers on certain benefits they provide their employees or other associates. It applies even if the fringe benefit is provided by a third party through an arrangement with the employer.

    It is important to note that FBT is separate from income tax and is computed based on the taxable value of the benefit. You can claim an income tax reduction for the cost of providing fringe benefits and for the FBT you pay. Also, you can claim GST credits for items provided as fringe benefits.

    How FBT affects Christmas parties

    There’s no separate FBT category for Christmas parties. However, to avoid getting into trouble with the ATO, here are some guidelines.

    Exempt property benefits

    The costs associated with Christmas parties are exempt from FBT if provided on a working day, on your business premises, and consumed by current employees. The property benefit is not available for associates.

    Exempt benefits – minor benefits

    A Christmas party is considered a minor benefit and exempt if the cost of the party is less than $300 per employee and certain conditions are met. The benefit provided to an associate of your employee may also be a minor benefit and exempt if the cost for each associate is less than $300.

    Christmas gifts to employees

    A Christmas gift to an employee is considered a minor benefit that is an exempt benefit when the gift is worth less than $300.

    FBT Returns Lodgment

    If you have a liability, you need to lodge an FBT return during an FBT year (1 April to 31 March). If you are preparing your own FBT return, you can lodge up to 25 June without any penalty. The due date for the payment is 21 May.

    With a tax agent, the due date to lodge and pay is 21 May. On the other hand, if you’re registered for FBT but don’t have to lodge a return, you can complete a Fringe Benefits Tax- notice of non-lodgment form.

    With a tax agent, the due date to lodge and pay is 21 May. If you’re registered for FBT but don’t need to lodge a return for the year, you can complete a Fringe benefits tax – notice of non-lodgment form.

    Need help with your FBT returns? Get in touch with us today to ease your burden and have some peace of mind.

  • E-invoicing: A Huge Cashflow Win for Australian Businesses

    E-invoicing: A Huge Cashflow Win for Australian Businesses

    The Australian government has made some important announcements over the past few months with regard to e-invoicing. In the 2021-22 Budget, the government committed $15.3 million to increase the adoption of e-invoicing, which guarantees accelerated payment terms.

    In this article, we will look deeper into what e-invoicing is and how any type of business can benefit from it.

    What is e-invoicing?

    Over 1.2 billion Business to Business (B2B) and Business to Government (B2G) invoices are exchanged every year– most of which are sent as paper invoices or PDF invoices attached to emails. According to the ATO, the average invoice processing cost for a paper invoice is $30.87, while the processing cost for a PDF invoice is $27.67 on average. These methods are costly because they require manual data entry and validation.

    Young Woman Checking Her Budget Doing Taxes 273609 12843

    Through e-invoicing, processes can be automated, and invoice data can be quickly exchanged between the systems of the buyers and suppliers. E-invoicing can reduce the cost of processing to $9.18– 66% cheaper than the cost of processing a PDF invoice.

    Australia has adopted the Peppol framework (Pan-European Public Procurement Online), which is a globally recognized standard and process for exchanging e-invoices and e-orders that is currently being used in 39 countries across the world. Suppliers and buyers must send their invoices through their systems to a certified Peppol Access Point, which will verify the data and then send it on to the receivers’ certified Access Point and into their system.

    In other words, data will be shared almost instantly, eliminating the need for manual data entry or manipulation.

    How businesses can benefit from e-invoicing

    The Australian government believes that e-invoicing can help the economy save $28 billion over 10 years. Sounds awesome, but what does this mean for businesses? The following are some of the key benefits of e-invoices.

    Automatically connects you to other buyers and suppliers

    Using e-invoicing allows you to become automatically connected with every other buyer and supplier in the network. This allows you to automate invoice processing.

    Highly secure and prevents the risk of invoice fraud

    PDF invoices can be easily intercepted and manipulated. With e-invoicing, the sender and bank account details are validated before transmitting the data. The network is highly secure and only accredited Peppol Access Points providers can exchange documents. They follow strict security protocols to prevent intrusion and implement multi-factor authentication and data encryption.

    Improves cash flow management

    Late payments can negatively affect businesses. Meanwhile, buyers can miss out on early payment discounts due to lost or slow processing of invoices. Through e-invoicing, the whole process will be accelerated, bringing significant benefits for both parties. In Australia, the federal government and other government agencies guarantee 5-day payment terms for e-invoices.

    Are you ready to transition to e-invoicing? Get in touch with us today for professional guidance.

  • Business Update – 22 December 2021

    Business Update – 22 December 2021

    Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward. This is the last weekly digest for the year. We hope you have a relaxing holiday break and we’ll be back with more updates in the New Year.

    Government Rules Out Lockdowns Despite Omicron Surge

    Prime Minister Scott Morrison said Australia must move past “the heavy hand of government” and authorities must stop shutting down people’s lives with lockdowns. This comes amid the surge of COVID-19 cases due to the Omicron variant. The government is now aiming to ramp up the rollout of booster shots.

    Australia- UK Free Trade Agreement

    The UK and Australia have signed a Free Trade Agreement, eliminating all tariffs on UK exports and making Australian products more accessible for the UK market. The deal will also allow British nationals 18 to 35 years old to work and travel in Australia for up to three years at a time, eliminating previous visa conditions.

    Australia and Vietnam Deepen Trade Ties

    The governments of Australia and Vietnam announced their enhanced economic engagement strategy to boost bilateral trade and investment ties. This will provide mutually beneficial opportunities especially in key areas such as education, resources, agriculture, manufacturing, and the digital economy.

    Over the past two decades, two-way trade has expanded by 8.6%– this is much higher than the average growth rate of 5.8% between Australia and other ASEAN countries.

    Australia-India Travel Bubble Pact

    Australia joined the list of countries that have a travel bubble agreement with India. Qantas has recently started flights between Sydney and New Delhi. It is also set to start flights between New Delhi and Melbourne before Christmas.

    Record Monthly Increase in Jobs Number

    Australia added 366,000 jobs in November, representing the single largest monthly increase in employment in history. This drove the jobless rate down to 4.6%, a level not expected until mid-2022. The latest figure surpassed market expectations of 220,000 new jobs.

    NSW: Emergency Surge Support Program Launched

    The government is now offering a one-off emergency surge support program to supply Rapid Antigen Testing kits for residential aged care facilities in New South Wales. You can find the list of eligible Local Government Areas here.

    $276 Million to Support Health Scientists

    The government is providing $276.4 million through 12 research grant opportunities to support Australian health and medical research. Researchers can apply for grants in various areas including chronic respiratory conditions, Indigenous health, and chronic neurological conditions.

    Aviation Recovery Plan Launched

    The federal government is investing an additional $78 million to help Australia’s aviation sector recover from the COVID-19 pandemic. The framework includes support to rebuild the workforce, boost general aviation, drive emerging technologies, modernize regulation, and reduce red tape.

    WA Border Reopening

    Western Australia will reopen its borders at 12.01 am on 5 February. For domestic travel, you can find information about state-by-state travel restrictions here. Meanwhile, for international travel, you need to check the official advisory of the country you’re visiting.

    Depending on the location, you may need to obtain a PCR test, show proof of vaccination, quarantine, or purchase insurance. Australia has a travel bubble with Singapore, which means West Australians can travel to the country without having to quarantine.

    Business Adoption of eInvoicing

    More than 1.2 billion invoices are exchanged in Australia every year, with around 90% of invoice processing still partly or fully manual. Replacing a paper or email invoice with an invoice will lead to up to around $20 in cost savings.

    The government has taken a series of actions to support the business adoption of eInvoicing.

    • In the 2020-21 Budget, as part of the JobMaker Digital Business Plan, the government invested $3.6 million to facilitate eInvoicing adoption across the public sector.
    • In the 2021-22 Budget, as part of the Digital Economy Strategy, the Government invested a further $15.3 million to improve business awareness and accelerate eInvoicing adoption.

    The government is now seeking stakeholder views on further ways to support business adoption of eInvoicing, including by consulting on the idea of a Business eInvoicing Right (BER). You can submit responses to this consultation up until 25 February 2022. You can view the submission guidelines here.

    FBT Implications of Christmas Parties

    As the end of the year is fast approaching, businesses are getting ready for their Christmas party and are organizing gifts for their staff. With this, it’s important to be aware of the fringe benefits tax (FBT) implications of these.

    Because there is no separate FBT category for Christmas parties, here are some ATO guidelines to keep you on track:

    • Exempt property benefits– The costs associated with such events are exempt from FBT if they are provided on a working day, on your business premises, and consumed by your employees.
    • Exempt minor benefits– It can be regarded as a minor benefit and exempt if the cost of the party is less than $300 per employee and certain conditions are met.
    • Christmas gifts– Christmas gifts to employees may be a minor benefit that is an exempt benefit when the value is less than $300.

    If you need help with your FBT, get in touch with us today to avoid running into problems with the ATO.

    Get in touch

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

  • 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.

    Spreadsheet Document Information Financial Startup Concept 53876 124145

    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?

    If you need assistance with managing your accounts, such as recording your information in an accounting software, please feel free to contact S & H Tax Accountants. We have wonderful staff members who are qualified and always ready to help. Book an appointment today at S & H Tax Accountants, call us at 03 87590 5532 or email us at info@sahtax.com.au

  • Business Update – 15 December 2021

    Business Update – 15 December 2021

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

    Moderna and Australian Government Partnered to Bring Manufacturing to Australia

    Moderna, Inc. announced an agreement with the Australian Government to build a state-of-the-art messenger RNA (mRNA) vaccine manufacturing facility in Victoria, including access to Moderna’s mRNA development engine. Up to 100 million mRNA vaccine doses could be produced in Australia each year.

    This collaboration will support Australia with direct access to rapid pandemic response capabilities.

    Visa Holders Now Allowed to Enter Without Exemption

    From 15 December, visa holders will be allowed to enter the country. This means skilled workers and international students will be allowed to come into Australia without needing a travel exemption.

    The resumption also signals that a travel bubble with Japan and South Korea can also begin. An estimated 235,000 visa holders and 133,000 international students would be eligible to enter Australia.

    WA Border Reopening

    Western Australia will reopen its borders at 12.01am on 5 February. For domestic travel, you can find information about state-by-state travel restrictions here. Meanwhile, for international travel, you need to check the official advisory of the country you’re visiting.

    Depending on the location, you may need to obtain a PCR test, show proof of vaccination, quarantine, or purchase insurance. Australia has a travel bubble with Singapore, which means West Australians can travel to the country without having to quarantine.

    Queensland Opens Its Borders

    Queensland has reopened its road borders to all interstate travellers since it has passed the 80% mark for COVID-19 double vaccination.

    Before being allowed to enter Queensland, you need to provide a negative COVID-19 test result received within the previous 72 hours. In order to be considered fully vaccinated, you must wait until at least a week after receiving your second dose.

    Also, you will still need to complete a Queensland Entry Pass whether you plan to enter by air, road, rail, or sea, including from non-hotspot areas and the border zone. A Queensland Entry Pass is valid for 14 days.

    Four Northern Territory Communities Enter Lockdown

    Four remote communities in the Northern Territory have entered a lockdown after two local cases of COVID-19 were detected. The lockdown in Kalkarindji, Daguragu, Timber Creek, and Gilwi is effective until 2pm on Friday.

    Changes in NSW COVID-19 Restrictions

    More COVID-19 restrictions in NSW are being eased today, regardless of vaccination status. So what has changed?

    • Rules around masks, QR codes, and requirements for close contacts to isolate for 7 days have been relaxed
    • No limit to the number of people allowed in your home, hospitality venues, and outdoor gatherings
    • Personal services such as hairdressers and beauty salons will have no density limits
    • Indoor recreations, gyms, and sporting facilities will no longer have density limits
    • Community sports events with over 1,000 attendees won’t be required to have a COVID-19 safety plan
    • No travel restriction for people in Greater Sydney or in regional NSW
    • Carpooling is now permitted for unvaccinated people

    You can learn more about the restrictions here.

    Business Conditions Improve in November

    A measure of business conditions improved further in November, amid the easing of COVID-19 restrictions in Sydney and Melbourne. According to the survey from National Australia Bank, its index of business conditions rose 2 points in November to +12, comfortably above its long-run average.

    This increase was driven by a 5-point jump in employment to a historically strong +11, while the sales index added 1 point to +16 and profitability held at +8.

    Meanwhile, its measure of confidence eased 8 points to +12, but still remained well above the long-run average. The decline followed an 11-point increase in the previous month.

    These results show that a strong recovery is underway.

    Business Adoption of eInvoicing

    More than 1.2 billion invoices are exchanged in Australia every year, with around 90% of invoice processing still partly or fully manual. Replacing a paper or email invoice with an eInvoice will lead to up to around $20 in cost savings.

    The government has taken a series of actions to support the business adoption of eInvoicing.

    • In the 2020-21 Budget, as part of the JobMaker Digital Business Plan, the government invested $3.6 million to facilitate eInvoicing adoption across the public sector.
    • In the 2021-22 Budget, as part of the Digital Economy Strategy, the Government invested a further $15.3 million to improve business awareness and accelerate eInvoicing adoption.

    The government is now seeking stakeholder views on further ways to support business adoption of eInvoicing, including by consulting on the idea of a Business eInvoicing Right (BER). You can submit responses to this consultation up until 25 February 2022. You can view the submission guidelines here.

    Permanent Telehealth to Boost Universal Medicare

    The government is investing $308.6 million to strengthen Australia’s primary health care system. Telehealth, which has been transformational to health care delivery, will become a permanent feature. The government is providing $106 million over four years to support telehealth services.

    Since early March 2020, more than 86.3 million COVID-19 MBS telehealth services have been delivered to 16.1 million patients, with $4.4 billion in Medicare benefits paid.

    $540 Million to Expand COVID-19 Response

    The government has invested an additional $540 million in response to the COVID-19 pandemic, including significant funding to keep Australians safe and for COVID-19 testing.

    The existing Refundable Accommodation Deposit (RAD) Support Loan Program will also be extended to continue to support the residential aged care sector.

    Support for Farmers to Increase Soil Carbon

    The government is working with Australian farmers to help lower emissions and realise new commercial opportunities through soil carbon projects.

    According to Minister for Industry, Energy and Emissions Reduction Angus Taylor, a new Emissions Reduction Fund (ERF) method will make it easier for farmers to generate income from increasing soil carbon.

    This could create a new revenue stream of more than $2.4 billion annually for farmers and land managers. The Long Term Emissions Reduction Plan also shows increasing soil carbon could reduce our emissions by between 4 and 16%.

    FBT Implications of Christmas Parties

    As the end of the year is fast approaching, businesses are getting ready for their Christmas party and are organising gifts for their staff. With this, it’s important to be aware of the fringe benefits tax (FBT) implications of these.

    Because there is no separate FBT category for Christmas parties, here are some ATO guidelines to keep you on track:

    • Exempt property benefits– The costs associated with such events are exempt from FBT if they are provided on a working day, on your business premises, and consumed by your employees.
    • Exempt minor benefits– It can be regarded as a minor benefit and exempt if the cost of the party is less than $300 per employee and certain conditions are met.
    • Christmas gifts– Christmas gifts to employees may be a minor benefit that is an exempt benefit when the value is less than $300.

    If you need help with your FBT, get in touch with us today to avoid running into problems with the ATO.

    Upcoming Key Dates for December 2021

    Here are the upcoming key dates for the month of December:

    21 December

    • November monthly BAS due

    Get in touch

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

  • Business Update – 8 December 2021

    Business Update – 8 December 2021

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

    Queensland Border Reopening Requirements

    The Queensland border will open at 1 am on 13 December, earlier than expected. Fully vaccinated people from declared “hotspots” – that includes NSW, Victoria and South Australia- will be able to enter by road or air.

    Those crossing into Queensland from a declared hotspot require evidence of a negative PCR test in the 72 hours prior to crossing the border. After arriving, those from hotspots must also take a second test after five days. Meanwhile, international arrivals will still have to quarantine.

    Rules will come into effect on 17 December to allow only vaccinated people into some public spaces.

    Pfizer Vaccine Approved for Children 5 to 11 Years Old

    The Therapeutic Goods Administration has provisionally approved the Pfizer COVID-19 vaccine for children between the ages of 5 and 11. According to the Health Minister, the rollout could begin from 10 January.

    International Students Return to Australia

    The first group of 250 international students is in quarantine after flying into Sydney under a COVID-19 pilot scheme to boost the education sector.

    Onboard the flight from Singapore were nationals from more than 15 countries who will be placed in quarantine.

    $540 Million to Expand COVID-19 Response

    The government has invested an additional $540 million in response to the COVID-19 pandemic, including significant funding to keep Australians safe and for COVID-19 testing.

    The existing Refundable Accommodation Deposit (RAD) Support Loan Program will also be extended to continue to support the residential aged care sector.

    Less Than 6% of $4.2 Billion Received in Jobkeeper Repaid

    Australian companies listed on the stock exchange repaid just 5.73% of the $4.2 billion in Jobkeeper they received over the past two years, according to data released by the Australian Securities and Investments Commission.

    They repaid just $26.8 million in 2020, but amid rebounding profits and political pressures, this increased dramatically to reach $241 million in 2021.

    Support for Farmers to Increase Soil Carbon

    The government is working with Australian farmers to help lower emissions and realize new commercial opportunities through soil carbon projects.

    According to Minister for Industry, Energy and Emissions Reduction Angus Taylor, a new Emissions Reduction Fund (ERF) method will make it easier for farmers to generate income from increasing soil carbon.

    This could create a new revenue stream of more than $2.4 billion annually for farmers and land managers. The Long Term Emissions Reduction Plan also shows increasing soil carbon could reduce our emissions by between 4 and 16%.

    FBT Implications of Christmas Parties

    As the end of the year is fast approaching, businesses are getting ready for their Christmas party and are organizing gifts for their staff. With this, it’s important to be aware of the fringe benefits tax (FBT) implications of these.

    Because there is no separate FBT category for Christmas parties, here are some ATO guidelines to keep you on track:

    • Exempt property benefits– The costs associated with such events are exempt from FBT if they are provided on a working day, on your business premises, and consumed by your employees.
    • Exempt minor benefits– It can be regarded as a minor benefit and exempt if the cost of the party is less than $300 per employee and certain conditions are met.
    • Christmas gifts– Christmas gifts to employees may be a minor benefit that is an exempt benefit when the value is less than $300.

    If you need help with your FBT, get in touch with us today to avoid running into problems with the ATO.

    Upcoming Key Dates for December 2021

    Here are the upcoming key dates for the month of December:

    21 December

    • November monthly BAS due

    Support for Apprentices to be Expanded

    The $3.9 billion Boosting Apprenticeship Commencements program will extend support into the second and third year of an eligible Australian Apprenticeship through the $716 million Completing Apprenticeship Commencements program.

    From October, eligible employers will receive a 10% wage subsidy in the second year of an eligible apprenticeship, and 5% in the third year. The government’s investment is expected to continue to support the 270,000 anticipated commencements under the Boosting Apprenticeship Commencements program from October 2020 to March 2022.

    Get in touch

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

  • 4 Benefits to Hiring a Bookkeeper for Your Business

    Bookkeepers can be highly beneficial for businesses of any size. They offer expertise and insight into areas that you may not have experience in. They can also take some tasks off your to-do list, freeing up your time and energy to focus on other matters.

    Here are 4 benefits to hiring bookkeepers to help you manage your business.

    Expertise

    A bookkeeper is an expert at managing, sorting and recording your business’s financial transactions. They’ve spent time developing their skills and experience. During that time, they’ve also seen and resolved bookkeeping-related issues that you may come up against. Their expertise makes them more efficient at managing those issues.

    Beyond that, they understand business trends and challenges others in your industry face, and can help you move through those as well. They also know what questions to ask to help you make important decisions and can share best practices with you.

    Guidance

    Your bookkeeper not only helps you maintain accurate records, they understand your financial circumstances. They help you assess how to make important business decisions, such as whether now is a good time to grow or when you should hold back. They can also identify trends in your industry and help you take advantage of those opportunities.

    Finally, they can assist you with budgeting, and sticking to your budget. They’ll help you come up with a realistic financial plan that enables your business to grow while achieving short- and long-term goals.

    Time savings

    As a business owner, you likely have many activities to focus on. In bookkeeping alone there are numerous tasks to be responsible for, such as:

    • Collecting and recording transaction data
    • Sorting receipts
    • Classifying expenses
    • Invoicing customers
    • Paying vendors
    • Managing payroll.

    Bookkeepers take on those tasks so you don’t have to. It’s not just about the energy you put into them, it’s about the fact that unless you’re an expert at bookkeeping, it’ll likely take you longer to complete these activities than it would take a bookkeeper.

    Think of the time you spend during an average week managing your books, then think of the time you spend during a high-pressure week, such as during tax season. That can add up to a lot of extra hours.

    By hiring a bookkeeper, you save yourself that valuable time for other activities such as marketing, perfecting your products or even spending time with family.

    Money savings

    There’s a time cost to doing your own books, but there’s also a potential money cost in the form of missed opportunities. The time you spend doing your own books is time you could potentially be out creating or taking advantage of new opportunities for your business. Your bookkeeper frees you up so you have the time and energy to identify potential opportunities. They can also advise you on whether you’re in a fiscal position to jump on those possibilities.

    Additionally, the expertise bookkeepers bring to their activities means they’re likely to save you from costly mistakes that could affect your finances.

    Final Thoughts

    Hiring a bookkeeper is a sound business decision as it gives you access to expertise and guidance you might not otherwise have, and it frees up your time and money to take advantage of other business opportunities. Talk to S & H Bookkeepers for you business bookkeeping needs. S & H Tax Accountants offer servicess in Cranbourne and surrounding suburbs.

  • Business Update – 1 December 2021

    Business Update – 1 December 2021

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

    International Border Reopening for Skilled Workers and Students Delayed

    Plans to reopen international borders to skilled workers and students have been halted due to concerns over the COVID-19 Omicron variant.

    The 1 December opening will be delayed by at least two weeks, including the plan to open the border to visitors from Japan and South Korea.

    Travel Guidance for International Arrivals

    In an effort to prevent the spread of the Omicron variant, Australia has tightened its travel rules for international arrivals coming from southern African countries.

    Those entering from South Africa, Lesotho, Botswana, Zimbabwe, Mozambique, Namibia, Eswatini, Malawi and the Seychelles must undergo 14 days’ quarantine, regardless of their vaccination status.

    Travellers from other countries into NSW, Victoria, and ACT are now also required to go to their place of residence or accommodation immediately and isolate for 72 hours pending further advice.

    PM Urges State Leaders to Stick to Reopening Plans

    Despite increasing concerns about the Omicron variant, Prime Minister Scott Morrison urged state and territory leaders to stick to their reopening plans. Meanwhile, health authorities will continue to gather more information about the new strain of the coronavirus.

    Q3 Economic Decline Not as Bad as Feared

    As the Delta variant put half the population under lockdown, latest data showed Q3 GDP declined by 1.9%. However, this figure was still better than forecasts of a 2.7% decline, and relatively moderate compared to the 6.8% quarterly fall last year when the pandemic first struck.

    From 9.6% in Q2, the annual pace of growth slowed to 3.9%. Yet, this again beat forecasts of 3.0%.

    Manufacturing Industry Rebounded in November

    After several months of flat results due to the Delta variant, the manufacturing industry recovered in November. The Australian Industry Group performance of manufacturing index rose by 4.4 points to 54.8.

    However, there are still some concerns about the reliability of supply inputs and the worsening labour shortages.

    Support for Farmers to Increase Soil Carbon

    The government is working with Australian farmers to help lower emissions and realise new commercial opportunities through soil carbon projects.

    According to Minister for Industry, Energy and Emissions Reduction Angus Taylor, a new Emissions Reduction Fund (ERF) method will make it easier for farmers to generate income from increasing soil carbon.

    This could create a new revenue stream of more than $2.4 billion annually for farmers and land managers. The Long Term Emissions Reduction Plan also shows increasing soil carbon could reduce our emissions by between 4 and 16%.

    FBT Implications of Christmas Parties

    As the end of the year is fast approaching, businesses are getting ready for their Christmas party and are organising gifts for their staff. With this, it’s important to be aware of the fringe benefits tax (FBT) implications of these.

    Because there is no separate FBT category for Christmas parties, here are some ATO guidelines to keep you on track:

    • Exempt property benefits– The costs associated with such events are exempt from FBT if they are provided on a working day, on your business premises, and consumed by your employees.
    • Exempt minor benefits– It can be regarded as a minor benefit and exempt if the cost of the party is less than $300 per employee and certain conditions are met.
    • Christmas gifts– Christmas gifts to employees may be a minor benefit that is an exempt benefit when the value is less than $300.

    If you need help with your FBT, get in touch with us today to avoid running into problems with the ATO.

    Upcoming Key Dates for December 2021

    Here are the upcoming key dates for the month of December:

    21 December

    • November monthly BAS due

    Support for Apprentices to be Expanded

    The $3.9 billion Boosting Apprenticeship Commencements program will extend support into the second and third year of an eligible Australian Apprenticeship through the $716 million Completing Apprenticeship Commencements program.

    From October, eligible employers will receive a 10% wage subsidy in the second year of an eligible apprenticeship, and 5% in the third year. The government’s investment is expected to continue to support the 270,000 anticipated commencements under the Boosting Apprenticeship Commencements program from October 2020 to March 2022.

    Get in touch

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

  • Business Update – 24 November 2021

    Business Update – 24 November 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 to Foreign Visa Holders

    Australia will allow foreign visa holders to enter the country from the start of December in a bid to revive the economy. International borders have been shut since May 2020 and allowed only restricted numbers of citizens and permanent residents to enter to prevent the spread of the coronavirus.

    Prime Minister Scott Morrison said starting 1 December, vaccinated students, business visa holders, and refugees will also be allowed to enter. The return of foreign students, who are worth about $35 billion a year to the economy, will be a major boost for the education sector.

    South Australia Reopens Borders

    South Australia has reopened its borders to fully vaccinated travellers from Victoria, NSW, and the ACT. The borders have been closed for months, and the 23 November deadline was announced last month as part of South Australia’s COVID-Ready roadmap back to normality.

    Almost 30,000 travellers from NSW, Victoria and the ACT have been approved to enter, but many will need to undergo COVID-19 tests and monitor for symptoms. All travellers must register via the EntryCheck SA website, prove they have been double-vaccinated, and come from a council area with an 80% fully vaccinated rate.

    Katherine Lockdown Extended

    The restrictions in Katherine are likely to remain until at least 4 December, although the government said they could ease to lockout conditions for fully vaccinated residents before that date.

    Katherine and nearby communities have been in lockdown since 15 November, and 40 positive cases have been identified since the outbreak emerged.

    COVID-19 Travel Insurance

    Major companies including NIB and Qantas are starting to sell travel insurance again, which offers limited protection for medical and travel expenses if people get COVID-19 while overseas. There are no policies that cover people for general lockdowns or border closures outside Australia or New Zealand.
    First International Students Arrive Under Singapore Travel Bubble

    After almost two years, two planeloads of passengers from Singapore have arrived in Sydney and Melbourne as part of the two-way quarantine-free travel bubble between Australia and Singapore. They will be joined on 7 December by about 500 others as part of a NSW government initiative.

    FBT Implications of Christmas Parties

    As the end of the year is fast approaching, businesses are getting ready for their Christmas party and are organising gifts for their staff. With this, it’s important to be aware of the fringe benefits tax (FBT) implications of these.

    Because there is no separate FBT category for Christmas parties, here are some ATO guidelines to keep you on track:

    • Exempt property benefits– The costs associated with such events are exempt from FBT if they are provided on a working day, on your business premises, and consumed by your employees.
    • Exempt minor benefits– It can be regarded as a minor benefit and exempt if the cost of the party is less than $300 per employee and certain conditions are met.
    • Christmas gifts– Christmas gifts to employees may be a minor benefit that is an exempt benefit when the value is less than $300.

    If you need help with your FBT, get in touch with us today to avoid running into problems with the ATO.

    Upcoming Key Dates for November 2021

    Here are the upcoming key dates for the month of November:

    29 Nov 2021

    • September quarter SG charge statement due

    Change in Super Rules from 1 November for Your New Employees

    There’s a change that involves an extra step to comply with ‘choice of fund’ rules when a new employee starts working for you. Currently, if new hires don’t choose their own Super fund, the employer can pay Super contributions for them to your default fund.

    Starting 1 November, employers will need to request their ‘stapled super fund’ details from the ATO. A stapled super fund is an existing account which is linked to an employee, and this change in rules aim to minimise the number of additional Super accounts opened each time an individual starts a new job.

    You can use online services for business to request for your new hires’ stapled super fund details. If you need help with your tax and super, get in touch with us!

    Changes for Directors starting in November: Identification Number Needed

    All directors of a company will need a director identification number (director ID) from November.

    The director identification number is a unique identifier that allows shareholders, creditors, employees, and consumers to know certain details about the directors of a company. All directors are required by law to verify their identity with the Australian Business Registry Services before receiving a director ID.

    All directors need to apply for their own ID so while we can’t apply for this on your behalf, we can help you if you have any questions.

    You can also follow the steps for application here.

    Support for Apprentices to be Expanded

    The $3.9 billion Boosting Apprenticeship Commencements program will extend support into the second and third year of an eligible Australian Apprenticeship through the $716 million Completing Apprenticeship Commencements program.

    From October, eligible employers will receive a 10% wage subsidy in the second year of an eligible apprenticeship, and 5% in the third year. The government’s investment is expected to continue to support the 270,000 anticipated commencements under the Boosting Apprenticeship Commencements program from October 2020 to March 2022.

    Get in touch

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

  • 4 Reasons Your Business Should Consider Digital Receipts

    4 Reasons Your Business Should Consider Digital Receipts

    Receipts are vital to successfully running a business. You need receipts to track your purchases and expenses. Your clients need receipts for their tax purposes and to manage their finances. Paper receipts have been around a long time, so many people are used to them and may even be resistant to moving away from them.

    Thanks to technology, paper receipts are becoming more a thing of the past. There are environmental reasons for the move. Paper receipts require millions of trees and billions of gallons of water to produce, and they emit carbon dioxide (CO2), so going paperless can be a good thing for the environment.

    Woman Thumbup Checking Report With Pos Device Besides

    Here are more reasons why your business should consider eliminating paper receipts.

    1. Decreased costs

    Receipts eat into your profits. It costs money to buy the paper and the ink–more than it costs to have an email receipt emailed to clients. Your business saves money by not printing receipts for every customer and instead having the receipts emailed.

    On a per-unit basis, receipts might not seem like a big cost, but over the course of a year or a few years, they can add up to thousands of dollars.

    2. Increased efficiency

    It takes time to print out the receipts, change the printer paper and otherwise ensure the receipt printer is working properly. Meanwhile, your customers and clients are waiting for their receipt to be printed out as the line behind them grows longer.

    Beyond that, how often does a client contact you because they’ve lost their receipt and need a copy? Emailing receipts allows the customer to store the receipt in their email, rather than searching for a piece of paper they might have lost or filed in the wrong spot. Your team saves time by not having to reprint those missing receipts.

    Additionally, with digital receipts your online system efficiently generates better, more accurate reports. Consider how easy it would be for employees to take a photo of their expenses on their smartphone and have their expense report auto populated, rather than filling it out manually. Or have the system automatically tell you how much you’ve spent so far this year on office supplies, without you adding up each receipt.

    Shredding receipts also takes up an enormous amount of time that could be better spent in other tasks. Having your receipts online saves you the time and hassle of shredding, and keeps client information confidential.

    3. Digital receipts are easier to share

    If you have someone doing your bookkeeping or accounting for you, it’s easy to email your digital receipts to that person, rather than having to store them and then mail them or deliver them in person. There’s also no risk that the receipt will be crumpled, torn or otherwise unreadable.

    4. Additional marketing opportunities

    Although you can include some marketing with a printed receipt–maybe a coupon or a link to your website–digital receipts give many more marketing opportunities. An e-receipt gives you the chance to share individualised product recommendations or new promotions. They also enable you to grow your email list and accumulate customer data, allowing you to follow up with clients and customers.

    Final Thoughts

    Even though many people are used to paper receipts, there are many good reasons for your business to switch to digital receipts. There are environmental benefits and practical reasons that can have a positive impact on your business.

  • Is your home loan protected?

    Is your home loan protected?

    Buying a property is a big investment. It’s often one of the most important investments people make in their lives. When it comes to getting a mortgage, many buyers focus solely on the immediate steps they have to take and fail to consider the right protections.

    Coins Key Sheet Mortgage Application

    What insurances can protect your home loan?

    First, let’s take a look at the three key types of insurance that will protect your mortgage. They are Lenders mortgage insurance, Mortgage protection insurance and Income protection insurance.

    It pays to understand the insurance options you have available for your mortgage in order to protect yourself and your loan if you are unable to meet loan repayments.

    Lenders mortgage insurance

    Often referred to as LMI, Lenders mortgage insurance is a one-off premium that’s payable if you want to buy a home, but your deposit is less than 20% of the value of the property. LMI protects the lender if you’re unable to repay your loan. This amount is added to your total home loan amount, which means you’ll pay more interest over the term of the loan. Paying extra interest is one of the main downsides of LMI, but it does help people enter the property market sooner.

    Mortgage protection insurance

    This insurance protects you if you’re no longer able to make loan repayments due to serious illness, injury or death. Each policy varies depending on the insurance provider but they generally offer trauma, death and terminal illness and special injury benefits, usually paid in a lump sum.

    Income protection insurance

    Income protection insurance pays part of your lost income if you’re unable to work because of a disability, caused by illness or injury. This insurance can pay up to 85% of your gross income if you’re unable to work due to partial or total disability. Each policy will have its own definition of disability and the level of cover provided will vary.

    Do you need insurance for your mortgage?

    If you don’t invest in protecting yourself and your home loan, you could end up in a costly financial situation. Many people look at the extra costs as they start to add up but these far outweigh the risk of being unable to meet your financial obligations or support your family if you can’t repay your mortgage.

    What’s right for you?

    Many people have insurances attached to their superannuation or health insurance provider, so make sure to double-check the cover you already have before making any decisions.

    Please reach out if you’d like to discuss the protection that’s right for your situation.

  • Top 3 reasons start-ups fail and how to avoid them

    Top 3 reasons start-ups fail and how to avoid them

    The start of a business is an exciting time. You’ve got a great idea for a business and are enthusiastic to get started.

    It’s important to plan ahead to give your business the best chances for success. Planning ahead means anticipating challenges and developing ways to successfully address them, so they don’t upend your start-up.

    Here are three reasons why start-ups fail and ways you can avoid them

    Lack of market demand

    You need to have a market to make money. That means there needs to be enough people who need your product or service and are willing to pay money to buy or use it. Without that, you won’t be able to cover your costs or earn enough to survive. Before you spend your time, money and energy starting a business, make sure there’s a need for it.

    Some ways you can identify need:
    Look for competition. If no one else is offering the service, there’s a chance there’s no market for it. That might not initially stop you from moving forward, but if no one already offers your product or service—or anything close to it—you’ll have to do more to prove there’s a market.

    Conduct market research.
    Studies and interviews help determine whether people in your target market agree with you that there is a need for your offering and that they would pay for it.

    Happy Young Asian Businessmen And Businesswomen Meeting Brainsto

    Lack of expertise

    Entrepreneurs might be tempted to partner with or hire their friends or family—people they genuinely like and would work well with. That doesn’t always translate to success, however. For your business to be successful, you need specific expertise, and you need people whose skills complement yours.
    You also need people who are willing to discuss your decisions with you, and make sure there’s a business case to be made for each decision you make. Someone with a differing perspective provides a vital way to double check whether your decisions are best in the long-term for your business, or whether other options are available.

    Ensure you hire people with balanced competencies. If your business relies on software, you might need a technical expert to ensure the technology runs smoothly. You’ll likely also need a financial expert to help you with bookkeeping and possibly a manager to oversee employees. Likewise, if you open a restaurant, someone on your team should have restaurant experience, ideally a few people in managerial roles will have relevant experience.

    It’s fine to hire people you like, but make sure your team also has the skills to successfully manage your business.

    Lack of finances

    You need money to produce your goods and services and ensure all employees are paid. It’s not enough to know how much money you need month-to-month, you need to forecast your development cycle, how inventory moves through your supply chain, and variations in seasonal income.

    If your business doesn’t earn as much in the first few months as you predicted, you’ll need to bring in more money quickly to save your business.

    Consider alternative sources of funding, to diversify your options and improve cash flow. Don’t rely just on yourself and friends or family, consider angel investors, business incubators, venture capitalists and business grants.

    Final Thoughts

    By planning ahead, being strategic with who you hire, ensuring there’s a market for your offerings and considering alternative sources of funding, you can significantly improve your odds of success.

    Get in touch with us to arrange a chat.

  • Business Update – 17 November 2021

    Business Update – 17 November 2021

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

    Australia Hits 90% Single-Dose Mark

    Australia has hit a new milestone, with 90% of those who are 16 years old and above having received at least one dose of a COVID-19 vaccine. This makes every state and territory on track to hit 80% fully vaccinated by the end of 2021.

    Australia Aims to Vaccinate Children Under 12 Years Old

    Australia will likely start administering the shots for children under 12 years old in January. According to Health Minister Greg Hunt, medical regulators are still reviewing the health and safety data for the vaccinations and are unlikely to decide this year.

    Just this month, the US Centres for Disease Control and Prevention recommended the Pfizer-BioNTech shot for use in the five to 11 age group, after it was authorised by the Food and Drug Administration.

    Potential Travel Bubbles with South Korea and Japan

    Australia had a two-way travel bubble with New Zealand earlier this year until Delta broke out in Sydney. A similar arrangement with Singapore is in place from 21 November.

    On Wednesday, Prime Minister Scott Morrison said he hopes South Korea and Japan would formalise arrangements in the coming weeks.

    Parts of Northern Territory Shut Down

    Federal Health Minister Greg Hunt has announced additional measures to contain the COVID-19 outbreak in the Northern Territory.

    Under these new rules, parts of the territory will be shut down until 6 pm on 18 November. This move comes after the Northern Territory recorded nine new cases on Tuesday.

    FBT Implications of Christmas Parties

    As the end of the year is fast approaching, businesses are getting ready for their Christmas party and are organising gifts for their staff. With this, it’s important to be aware of the fringe benefits tax (FBT) implications of these.

    Because there is no separate FBT category for Christmas parties, here are some ATO guidelines to keep you on track:

    • Exempt property benefits– The costs associated with such events are exempt from FBT if they are provided on a working day, on your business premises, and consumed by your employees.
    • Exempt minor benefits– It can be regarded as a minor benefit and exempt if the cost of the party is less than $300 per employee and certain conditions are met.
    • Christmas gifts– Christmas gifts to employees may be a minor benefit that is an exempt benefit when the value is less than $300.

    If you need help with your FBT, get in touch with us today to avoid running into problems with the ATO.

    Google to Invest $1 billion in Australia

    Google has announced that it will invest $1 billion in Australia over the next five years to build a research hub, increase its cloud computing capacity, and fund partnerships with local organisations.

    The Digital Future Initiative is expected to create 6,000 jobs and support 28,000 overall.

    JobMaker Hiring Credit Payments for 3rd Period

    JobMaker Hiring Credit payments can be claimed by 31 October 2021 for additional eligible employees hired between 7 April 2021 and 6 July 2021. Eligible businesses can claim for up to a year for each additional eligible employee hired between 7 October 2020 and 6 October 2021. Get in touch with us for assistance in your claim.

    Single Touch Payroll (STP) Quarterly Reporting Due Dates

    From 1 July 2021, small employers must report any closely held payees through STP. Reports can be done every pay day or quarterly. Also, STP quarterly reporting concessions for micro employers are only available to those who meet certain eligibility requirements, including the need for exceptional circumstances to exist.

    We can help you apply for this concession on your behalf. Those who haven’t started reporting through STP and don’t have a deferral or exemption must start reporting now.

    Upcoming Key Dates for November 2021

    Here are the upcoming key dates for the month of November:

    22 Nov 2021

    • October monthly BAS due

    29 Nov 2021

    • September quarter SG charge statement due

    Change in Super Rules from 1 November for Your New Employees

    There’s a change that involves an extra step to comply with ‘choice of fund’ rules when a new employee starts working for you. Currently, if new hires don’t choose their own Super fund, the employer can pay Super contributions for them to your default fund.

    Starting 1 November, employers will need to request their ‘stapled super fund’ details from the ATO. A stapled super fund is an existing account which is linked to an employee, and this change in rules aim to minimise the number of additional Super accounts opened each time an individual starts a new job.

    You can use online services for business to request for your new hires’ stapled super fund details. If you need help with your tax and super, get in touch with us!

    Changes for Directors starting in November: Identification Number Needed

    All directors of a company will need a director identification number (director ID) from November.

    The director identification number is a unique identifier that allows shareholders, creditors, employees, and consumers to know certain details about the directors of a company. All directors are required by law to verify their identity with the Australian Business Registry Services before receiving a director ID.

    All directors need to apply for their own ID so while we can’t apply for this on your behalf, we can help you if you have any questions.

    You can also follow the steps for application here.

    Support for Apprentices to be Expanded

    The $3.9 billion Boosting Apprenticeship Commencements program will extend support into the second and third year of an eligible Australian Apprenticeship through the $716 million Completing Apprenticeship Commencements program.

    From October, eligible employers will receive a 10% wage subsidy in the second year of an eligible apprenticeship, and 5% in the third year. The government’s investment is expected to continue to support the 270,000 anticipated commencements under the Boosting Apprenticeship Commencements program from October 2020 to March 2022.

    COVID-19 Government Support By State and Industry

    Small businesses that are currently suffering from lockdowns can get financial assistance to help them get through the pandemic. You can find the latest government support schemes for each state or territory here.

    The impacts of the COVID-19 restrictions vary from one industry to another. Here, you’ll find the latest government financial assistance available for particular industries.

    Get in touch

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

  • 4 Tips for Encouraging Repeat Customers

    4 Tips for Encouraging Repeat Customers

    There’s a lot of data supporting the idea that it’s less costly, easier and more efficient to encourage repeat customers than bring in new ones. Among the stats Hubspot lists are that a 5% increase in customer retention is responsible for more than 25% increase in profit; repeat customers are 9 times more likely to convert than first-time visitors; and a 2% increase in customer retention has a similar impact to your bottom line as reducing costs by 10%. Link:

    That’s a lot of motivation to encourage repeat customers. Here are 4 tips to encourage your customers to keep coming back.

    1. Build relationships with customers

    Take time to learn more about your customers.

    Do they mention family members? Ask about their loved-ones. Do they frequently buy the same products? Keep track of when that customer comes in and have some items set aside for them. Do they always order the same meal? Mention similar dishes to try. Go the extra mile to show your customers they’re important to you.

    Ask for their input, as well. They’ll get to know your products and services, and can offer insights into what’s working and what could be improved. If you engage them–and make changes based on their feedback–you’ll develop a loyal customer base.
    The more special your customers feel, the more likely they are to come back. They’ll appreciate that you remember them and value their input.

    2. Make it personal

    Your loyal customers deserve communications that are more personal and less formal. It’s fine to use impersonal emails for your larger email list, but use more personal communications with your best customers.

    If you want to let them know about an important business-related matter, phone them or suggest an in-person meeting. Keep track of important dates, as well. You can send gifts or cards to mark important occasions, or just to reach out.

    Make your best customers feel as though they stand out from the rest by being more personal with them.

    3. Share relevant information

    Newsletters are a great way to stay in touch with your customers and let them know what you’re up to, but if you get to know your customers really well, you can pass along articles, books, or other information that might interest them, even if it isn’t related to your business. It shows them you understand and you care.

    4. Remember your loyal customers

    Businesses sometimes focus their attention exclusively on new customers, forgetting about loyal and repeat customers. You need new customers to keep your business thriving; however, excluding long-term customers results in customer churn.

    It’s great to offer new customers rewards and incentives, but that leaves existing customers feeling ignored. Offer your long-term customers bonuses for their loyalty.

    Final thoughts

    Encouraging repeat customers makes solid business sense. To be successful, you need a balance of new and long-term clients. This means building relationships with people, personalizing your attention, sharing relevant information and remembering your loyal customers.

     

    Beautiful Young Woman Home Office Working From Home Teleworking Concept 144627 46780

    A great product or service at a reasonable price might bring your customers in, but outstanding customer service that gives them a positive, memorable experience will keep them coming back.

  • Business Update – 10 November 2021

    Business Update – 10 November 2021

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

    $44 Million Recovery Package for Melbourne

    The Melbourne Money scheme is returning to the CBD, with the state government and City of Melbourne launching a $200m “revitalisation fund”.

    From 15 November, those dining in the CBD between Monday and Thursday can claim a 30% discount – of up to $150 – off their restaurant bill. Previously, the Melbourne Money scheme launched over the winter had a cap of $100.

    Last Sunday, funding was also announced to include a $15.7 million boost to Christmas events and pop-up attractions. An expanded Christmas Festival will also start on 12 November, two weeks earlier than usual.

    Greater Darwin Lockout Ended

    The Greater Darwin lockout ended at midnight on Tuesday, despite the Northern Territory recording one new case of COVID-19. A mask mandate will remain in place in Greater Darwin until 5pm on Friday.

    Sydney Further Eased COVID-19 Restrictions

    Sydney further eased social distancing curbs on Monday, as close to 90% of the population have been fully vaccinated.

    Although limited to people who got both doses of vaccine, the relaxation in New South Wales lifts limits on house guests or outdoor gatherings, among other measures.

    The state would transit to its booster programme phase, focusing first on the state’s most vulnerable population.

    Business Confidence at 6-month High

    Business conditions rebounded in October, after most of the COVID-19 restrictions were lifted. According to the National Australia Bank’s survey of business conditions, which measures profits, sales, and employment, figures jumped to 11 last month from 5 in September, mostly driven by the reopening of New South Wales (NSW) on 11 October.

    Meanwhile, business confidence surged to 21 in October, the highest since April. Victoria showed the biggest improvement, followed by Queensland and South Australia.

    COVID-19 Disaster Payment Changes in Victoria

    Now that 80% of the population in Victoria have been fully vaccinated, changes to the COVID-19 Disaster Payment will come into effect.

    Aside from the decrease in payment rate over a two-week period before it stops, people would need to apply each week to ensure they remain eligible.

    In the first week after a state or territory reaches the 80% milestone, people can apply for:

    • $450 if they’ve lost 8 hours or a full day’s work or more
    • $100 if they’re getting a Centrelink or Department of Veterans’ Affairs (DVA) income support payment and have lost work.

    In the second and final week after reaching 80% the payment:

    • rate decreases to $320 for those who have lost 8 hours or a full day’s work or more
    • stops for people getting a Centrelink or DVA income support payment.

    JobMaker Hiring Credit Payments for 3rd Period

    JobMaker Hiring Credit payments can be claimed by 31 October 2021 for additional eligible employees hired between 7 April 2021 and 6 July 2021. Eligible businesses can claim for up to a year for each additional eligible employee hired between 7 October 2020 and 6 October 2021. Get in touch with us for assistance in your claim.

    Single Touch Payroll (STP) Quarterly Reporting Due Dates

    From 1 July 2021, small employers must report any closely held payees through STP. Reports can be done every pay day or quarterly. Also, STP quarterly reporting concessions for micro employers are only available to those who meet certain eligibility requirements, including the need for exceptional circumstances to exist.

    We can help you apply for this concession on your behalf. Those who haven’t started reporting through STP and don’t have a deferral or exemption must start reporting now.

    Upcoming Key Dates for November 2021

    Here are the upcoming key dates for the month of November:

    22 Nov 2021

    • October monthly BAS due

    29 Nov 2021

    • September quarter SG charge statement due

    Change in Super Rules from 1 November for Your New Employees

    There’s a change that involves an extra step to comply with ‘choice of fund’ rules when a new employee starts working for you. Currently, if new hires don’t choose their own Super fund, the employer can pay Super contributions for them to your default fund.

    Starting 1 November, employers will need to request their ‘stapled super fund’ details from the ATO. A stapled super fund is an existing account which is linked to an employee, and this change in rules aim to minimise the number of additional Super accounts opened each time an individual starts a new job.

    You can use online services for business to request for your new hires’ stapled super fund details. If you need help with your tax and super, get in touch with us!

    Changes for Directors starting in November: Identification Number Needed

    All directors of a company will need a director identification number (director ID) from November.

    The director identification number is a unique identifier that allows shareholders, creditors, employees, and consumers to know certain details about the directors of a company. All directors are required by law to verify their identity with the Australian Business Registry Services before receiving a director ID.

    All directors need to apply for their own ID so while we can’t apply for this on your behalf, we can help you if you have any questions.

    You can also follow the steps for application here.

    Support for Apprentices to be Expanded

    The $3.9 billion Boosting Apprenticeship Commencements program will extend support into the second and third year of an eligible Australian Apprenticeship through the $716 million Completing Apprenticeship Commencements program.

    From October, eligible employers will receive a 10% wage subsidy in the second year of an eligible apprenticeship, and 5% in the third year. The government’s investment is expected to continue to support the 270,000 anticipated commencements under the Boosting Apprenticeship Commencements program from October 2020 to March 2022.

    COVID-19 Government Support By State and Industry

    Small businesses that are currently suffering from lockdowns can get financial assistance to help them get through the pandemic. You can find the latest government support schemes for each state or territory here.

    The impacts of the COVID-19 restrictions vary from one industry to another. Here, you’ll find the latest government financial assistance available for particular industries.

    Get in touch

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

  • Business Update – 3 November 2021

    Business Update – 3 November 2021

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

    Borders are reopening!

    After closing its international borders for nearly 600 days, Australia is now open to foreign visitors starting on Monday, as restrictions gradually lift.

    Fully vaccinated travelers from New Zealand who test negative in pre-departure tests can now enter and avoid quarantine in NSW.

    The next set of foreign travelers who can visit Australia will be those from Singapore. From 21 November, fully vaccinated travelers can enter NSW and Victoria without quarantine, but would have to test negative in pre-departure COVID-19 tests.

    Sydney to Ease COVID-19 Restrictions Ahead of Schedule

    Sydney will lift more COVID-19 restrictions for vaccinated residents ahead of schedule next week.

    From 8 November, vaccinated individuals will be allowed unlimited numbers of guests in their homes. Pubs and clubs will also be able to accommodate more guests– earlier than the initial plan of 1 December.

    However, unvaccinated people will remain under tough restrictions until 15 December or when NSW’s double vaccination rates hit 95%. Currently, around 88% of the state’s population has been fully vaccinated.

    Spending Increases as Lockdowns are Lifted

    As COVID-19 restrictions ease across the country, spending tracked 20% higher than the corresponding week of 2019, according to the weekly credit and debit card spending data from the Commonwealth Bank.

    National spending is on track to hit the growth levels seen earlier in 2021, which averaged at 22% above pre-pandemic figures in late April and early May 2019.

    Job ads increase 6.2% in October

    Job advertisements increased sharply in October as Sydney and Melbourne started to lift lockdowns. The latest figures from Australia and New Zealand Banking Group showed total job ads climbed 6.2% in October from September, when they fell 2.8%.

    The official jobless rate has declined by more than expected this year to hit 4.6% in September.

    COVID-19 Disaster Payment Changes in Victoria

    Now that 80% of the population in Victoria have been fully vaccinated, changes to the COVID-19 Disaster Payment will come into effect.

    Aside from the decrease in payment rate over a two-week period before it stops, people would need to apply each week to ensure they remain eligible.

    In the first week after a state or territory reaches the 80% milestone, people can apply for:

    • $450 if they’ve lost 8 hours or a full day’s work or more
    • $100 if they’re getting a Centrelink or Department of Veterans’ Affairs (DVA) income support payment and have lost work.

    In the second and final week after reaching 80% the payment:

    • rate decreases to $320 for those who have lost 8 hours or a full day’s work or more
    • stops for people getting a Centrelink or DVA income support payment.

    Australia Ratifies Asia Free Trade Deal

    Australia has ratified a massive free trade deal with Asia Pacific countries. The Regional Comprehensive Economic Partnership that involves Australia, New Zealand and 13 other countries will be the world’s biggest trade agreement, covering 2.2 billion people and 29 per cent of global economic output.

    Australia’s businesses will have access to the deal, which will bring nine of the nation’s top 15 trading partners into a single economic framework, from 1 January 2022.

    Federal Budget Set for a Post-Lockdown Bounce

    Australia’s federal budget is set for a post-lockdown increase before settling into deficits of $60 billion a year because of higher spending in social services and defence.

    According to Deloitte Access Economics’ budget monitor, cumulative deficits are projected to be $45 billion lower than expected over the next four years. However, in 2024-25 the deficit will be at least $36 billion on announced policies and it’s tipped to reach $60 billion including $25bn of new spending not yet announced.

    The report also says ongoing shortfall in future budgets could only be wiped out by raising GST to 17% or increasing marginal income tax by 5.5%.

    Exports to China Increasing Despite Trade War

    Australia’s exports to China have increased by 24% from the previous year to hit over $180 billion as of the latest August data, according to research firm Oxford Economics.

    Relations between the two countries have been affected since last year after Australia supported a call for a global inquiry into China’s handling of its initial COVID-19 outbreak. Tensions have then filtered into Chinese sanctions on Australian goods.

    Despite this, exports to China have held up remarkably well. Australia is one of the few developed countries that enjoys a trade surplus with China, its largest trading partner.

    JobMaker Hiring Credit Payments for 3rd Period

    JobMaker Hiring Credit payments can be claimed by 31 October 2021 for additional eligible employees hired between 7 April 2021 and 6 July 2021. Eligible businesses can claim for up to a year for each additional eligible employee hired between 7 October 2020 and 6 October 2021. Get in touch with us for assistance in your claim.

    Single Touch Payroll (STP) Quarterly Reporting Due Dates

    From 1 July 2021, small employers must report any closely held payees through STP. Reports can be done every pay day or quarterly. Also, STP quarterly reporting concessions for micro employers are only available to those who meet certain eligibility requirements, including the need for exceptional circumstances to exist.

    We can help you apply for this concession on your behalf. Those who haven’t started reporting through STP and don’t have a deferral or exemption must start reporting now.

    Upcoming Key Dates for November 2021

    Here are the upcoming key dates for the month of November:

    22 Nov 2021

    • October monthly BAS due

    29 Nov 2021

    • September quarter SG charge statement due

    Change in Super Rules from 1 November for Your New Employees

    There’s a change that involves an extra step to comply with ‘choice of fund’ rules when a new employee starts working for you. Currently, if new hires don’t choose their own Super fund, the employer can pay Super contributions for them to your default fund.

    Starting 1 November, employers will need to request their ‘stapled super fund’ details from the ATO. A stapled super fund is an existing account which is linked to an employee, and this change in rules aim to minimise the number of additional Super accounts opened each time an individual starts a new job.

    You can use online services for business to request for your new hires’ stapled super fund details. If you need help with your tax and super, get in touch with us!

    Changes for Directors starting in November: Identification Number Needed

    All directors of a company will need a director identification number (director ID) from November.

    The director identification number is a unique identifier that allows shareholders, creditors, employees, and consumers to know certain details about the directors of a company. All directors are required by law to verify their identity with the Australian Business Registry Services before receiving a director ID.

    All directors need to apply for their own ID so while we can’t apply for this on your behalf, we can help you if you have any questions.

    You can also follow the steps for application here.

    Support for Apprentices to be Expanded

    The $3.9 billion Boosting Apprenticeship Commencements program will extend support into the second and third year of an eligible Australian Apprenticeship through the $716 million Completing Apprenticeship Commencements program.

    From October, eligible employers will receive a 10% wage subsidy in the second year of an eligible apprenticeship, and 5% in the third year. The government’s investment is expected to continue to support the 270,000 anticipated commencements under the Boosting Apprenticeship Commencements program from October 2020 to March 2022.

    COVID-19 Government Support By State and Industry

    Small businesses that are currently suffering from lockdowns can get financial assistance to help them get through the pandemic. You can find the latest government support schemes for each state or territory here.

    The impacts of the COVID-19 restrictions vary from one industry to another. Here, you’ll find the latest government financial assistance available for particular industries.

    Get in touch

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

  • Questions to Prepare for When Pitching to Investors

    Questions to Prepare for When Pitching to Investors

    If you’re looking for people to invest in your business, be prepared to answer some important questions. Investors look for smart investment opportunities—that means they want to find out as much as they can about you and your business before they make a decision about whether or not to invest with you.

    It’s vital to have well thought-out answers to investors’ questions. Give them evidence you’ve thoroughly examined your business to make them feel comfortable investing with you.

    Group Diverse People Having Business Meeting

    Here are four questions to be prepared for when you pitch your idea to investors.

    1. Why does your business need to exist?

    Businesses exist to solve a problem. Show investors there is an issue people need solved, and you have the solution.

    You’ll have to prove there’s a big enough need for your business to warrant an investment. Identify your target market and why you’re helping them. If it’s not a large group, maybe it’s an exclusive one that you can sell your product or service to at a higher price point.

    Show investors the pain point you’ve identified, how your solution addresses that pain point, and how your solution ultimately helps customers, by saving them time or money, for example. Data helps you. Find hard facts and examples to back up why your business is necessary.

    2. Why are you uniquely qualified to run this business?

    It’s not enough that you’ve identified a problem and a solution, you need to show why you are the person to run this business. Investors want to see how your knowledge or experience gives you an advantage over the competition.

    Most investors wouldn’t put their money behind a restaurant that wasn’t owned or managed by someone with restaurant experience, for example. When you pitch to investors, show them what gives you the qualifications to run the business and beat the competition. Maybe you have education that enables you to manage a business, or maybe you have in-depth experience with the issue you’re solving.

    Whatever case you make, investors should come away knowing you are the exact right person to run the business.

    3. How will you use the funds?

    Highlight for investors your plan for using their money, otherwise they won’t want to give it to you. They also won’t want to hear that their money will go to pay for your big salary or a fancy car. It has to go to costs directly linked to making your business successful.

    Have a solid and strategic plan for how their investment will be used. The money can be used for customer acquisition, to fund research and development, or to pay suppliers for start-up costs, for example.

    Don’t just say that the money will be used for marketing—show a marketing plan with goals and milestones in place so they know you have a strategy.

    4. Who are your competitors?

    Contrary to what you may think, it’s not good to tell investors there are no competitors, because this suggests there’s no market for your business. Even if there aren’t direct competitors, show investors other businesses that are similar to yours, then focus on what makes you different.

    Final thoughts

    If you want to pitch successfully to investors, you’ll need to be prepared to answer hard questions. By doing some research, setting out strategies and anticipating the investors’ concerns, you can give them the answers they need to feel comfortable investing in your business.