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  • Creating your business to-do list

    When you’re an entrepreneur, your to-do list is often long and constantly growing longer. There are an overwhelming number of things you need to do, and it can feel like they’re all urgent. In such cases, it’s easy to push important tasks to the side and focus on less-vital activities, but that often means you miss deadlines, make mistakes or always feel as though you’re trying to catch up.

    Here are some ways for you to determine the most productive order to complete your tasks.

    1. Know all of your tasks

    It isn’t enough to have a running list of tasks in your head; you need to write them out so you can see them at a glance. Take the time to list all your tasks, and break down large tasks into smaller steps.

    Write a list of the activities you need to do for the week—or even the next two weeks—on Monday morning. Include information such as how urgent they are, how long they’ll take to complete and what their deadlines are.

    Now you know what you need to complete and you have an idea of when things need to be done.

    2. Determine what tasks are vital

    There are many methods for determining which tasks are the most vital. Here, we’ll go into two: the Eisenhower Decision Matrix and the ABCDE Method.

    In the Eisenhower Decision Matrix, you classify each task into one of four quadrants. These quadrants are based on whether the task is important, urgent, both or neither. Tasks that are both important and urgent should be done first, followed by those that are either important but not urgent or urgent but not important, and finally those that are neither important nor urgent. If possible, delegate tasks that aren’t both important and urgent to someone else.

    Another method is the ABCDE method, in which you assign each task on your list a letter from A through E based on its level of importance. Tasks with a level of A or B are the most important, while D and E are not at all important. Anything from C down can likely be rescheduled or delegated to someone else.

    3. Schedule your tasks

    Now that you know which tasks are the most important, schedule your to-do list in that order. Write yourself a daily list that puts the most important tasks at the start of your day. Don’t overschedule yourself, though. After all, there’s a good chance that in the course of your week, a new activity that is both important and urgent will arise and you’ll need the space in your calendar to address it.

    Give yourself deadlines in the day to get the work done, based on a reasonable assessment of how long the activity should take you. You can also chunk your work, in which you set aside specific, uninterrupted periods of time to do focused work and then schedule in breaks around that.

    Make sure you turn off distractions and let your colleagues know that you aren’t available during those times.

    Final thoughts

    By determining which of your tasks are the most important to you and your business and scheduling your day based on that criteria, you can ease the pressure caused when you have a long list of activities to take care of.

    Want to chat about your business? Get in touch with our advisors.

  • COVID-19 Business Update – 16 September 2020

    Welcome back to our Weekly Digest. We hope you and your family are safe and doing well. Read on for this week’s update.

    Melbourne’s Roadmap to ‘COVID Normal’

    A staged plan to ease Melbourne out of tight COVID-19 restrictions has been released. Stage 4 restrictions will remain in place for another two weeks with some minor changes, and will start to ease further from 28 September.

    The final step should be reached by late November if the city reaches a targeted decline in COVID-19 cases. Details about this roadmap to COVID Normal can be found here.

    Regional Victoria to Move to Step Three of Reopening Plan

    Regional Victoria will move to step three of the reopening plan from 11:59pm Wednesday night, which means that sitting in a restaurant, meeting up to 10 people outdoors, kids’ sport and travelling for a holiday will all be allowed.

    However, masks will still be mandatory and strict restrictions on the number of people who can visit your home remain in place. You can find a detailed guide on the changes that are coming here.

    Business Resilience Package for Victorian Businesses

    The Victorian government is investing $3 billion in cash grants, tax relief, and cashflow support to aid businesses hit by the tight restrictions and help them prepare for COVID Normal. The types of support included in this package are divided into three categories: Business Support, Business Adaptation, and Waivers and Deferrals.

    Included in Business Support is the third round of the Business Support Fund for small- and medium-sized business ($822 million), with applications opening on 18 September 2020.

    Meanwhile, Business Adaptation involves funding, tools, and resources to help businesses adapt to COVID Normal. Tax and cashflow support amounting to $1.8 billion will be provided by the government under the Waivers and Deferrals scheme.

    For a detailed rundown of the inclusions of the Business Resilience Package, click here. Let us help you assess your eligibility and gain access to government support! Get in touch with us so we can schedule a consultation.

    Missed the Superannuation Guarantee Amnesty Deadline?

    The Superannuation Guarantee Amnesty ended last week on 7 September. Businesses that failed to apply for the SG amnesty but still have unpaid or late paid super to disclose will need to lodge a Superannuation guarantee charge statement and pay the super guarantee charge (SGC).

    The ATO will notify you of the quarters that are not eligible for the amnesty and charge you with an administration component of $20 per employee per quarter. They will factor in the circumstances of your business in their decision of whether the Part 7 penalty should be remitted and will also work with you through the debt processes to collect the outstanding amount.

    If you have any superannuation concerns, feel free to contact us and let us sort it out for you.

    Xero Starter Plans have changed

    COVID-19 has seen a spike in new businesses started in Australia, with the vast majority being micro/small business. To help, the Xero Starter Plan has been upgraded to help micro and small businesses digitise their accounts.

    It’s still $25 per month, however the plan now includes:

    • The bank statement limit has been removed
    • 20 invoices p/m (approx. 1 per business day)
    • 5 Bills per month
    • Hubdoc included
    • 1 employee through payroll

    To celebrate, Xero’s offering all new Starter plans at $12.50 for the first 4 months. This applies to new subscriptions only and for a limited time. See xero.com/pricing or get in touch with us for more information.

    Second Round of Cash Flow Boost

    If you’ve received initial cash flow boosts, you will automatically get a second round of cash flow boost when you lodge your activity statements for each monthly or quarterly period from June to September 2020.

    If you lodge:

    • quarterly, you’ll receive 50% of your total initial cash flow boost for each activity statement
    • monthly, you’ll receive 25% of your total initial cash flow boost for each activity statement.

    If you receive some funds into your account from the ATO and aren’t sure what it relates to, feel free to get in touch with us and we can investigate.

    More details can be found in the ATO website.

    Bankruptcy Protection Rules Until End of 2020

    Australia will extend its temporary insolvency and bankruptcy protection rules until the end of this year, providing businesses a lifeline to recover from the impacts of COVID-19.

    The rules, which were first introduced in March and originally due to expire on 30 September 2020, indicate that creditors cannot issue bankruptcy notices to businesses for debts below A$20,000.

    The creditors’ notice period to act on debts could also be extended, allowing businesses to keep trading without paying rent, tax, and loans.

    Contact us if you have any questions and we’ll help create a plan for your business.

    JobKeeper 2.0 Bill Passed By Federal Parliament

    The JobKeeper Amendment Bill 2020 was passed by Federal Parliament this week. Below are the key changes to the scheme:

    Extending the period of operation– The JobKeeper scheme and the provisions that allow employers to temporarily vary the working arrangements (by way of JobKeeper enabling directions or agreements under Part 6-4C of the Fair Work Act 2009) will now end on 28 March 2021 instead of 28 September 2020.

    New payment rates– The current JobKeeper subsidy rate for full-time workers of $1,500 a fortnight will drop to $1,200 from 28 September 2020, and then to $1,000 a fortnight from January 2021. Meanwhile, those who worked less than 20 hours per week in the relevant reference period (being the four-week pay period before either 1 March 2020 or 1 July 2020) will receive $750 from 28 September 2020, and then to $650 a fortnight from January 2021.

    Legacy Employers– Employers who no longer qualify for JobKeeper after 28 September will be classified as legacy employers, and will have to satisfy a 10% decline in turnover to have access to modified JobKeeper enabling directions.

    Decline in Turnover Test Certificate– Employers will need to obtain a 10% decline in turnover test certificate from an eligible financial service provider, including a BAS or Tax agent.

    These modified directions include reducing an employee’s ordinary hours to a minimum of 60% of the employee’s ordinary hours as they were at 1 March 2020, but cannot result in the employee working less than two consecutive hours in a day.

    A dispute can be brought before the Fair Work Commission about whether an employer holds a 10% decline in turnover certificate for the relevant period, including a dispute about whether a certificate is valid.

    Penalty– A penalty of up to $13,320 for individuals and $66,600 for body corporates or employers will be imposed if an employer doesn’t meet the 10% decline in turnover test and knowingly or recklessly tries to use the provisions or fails to notify employees that a JobKeeper enabling direction or agreement is not continuing due to not having met the requirements.

    JobKeeper Turnover Test Requirements

    From the 28th of September 2020:

    • businesses looking to claim the JobKeeper payment will be required to demonstrate that they experienced a decline in turnover using actual GST turnover, rather than projected GST turnover.
    • businesses will be required to reassess their eligibility with reference to their actual GST turnover in the September 2020 quarter to be eligible for the JobKeeper Payment from 28 September 2020 to 3 January 2021 (the first extension period).

    From 4th January 2021:

    • businesses will need to further reassess their turnover to be eligible for the JobKeeper Payment. They will need to demonstrate that they suffered a decline with reference to their actual GST turnover in the December 2020 quarter to be eligible for the JobKeeper payment from 4 January 2021 to 28 March 2021 (the second extension period).

    The required decline in GST turnover percentages will remain the same:

    • 30% for an aggregated turnover of $1 billion or less
    • 50% for an aggregated turnover of more than $1 billion
    • 15% for ACNC-registered charities other than universities and schools.

    Government-backed COVID-19 Loans Extended

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

    Keeping Your Mental Health in Check and Supporting Others

    With the prolonged lockdowns and tight social restrictions, combined with the financial uncertainty that everyone is facing, it is important to keep our own mental health in check and look out for others. In this Forbes article, Psychiatrist Dr. Dawn Brown discussed some tips on how you can support those struggling with their mental health:

    • Allow for a conversation. As mental health can be a very sensitive matter, start slow and let them lead.
    • Treat them with respect and understanding. Watch your language, don’t judge, and be careful not to make assumptions.
    • Encourage seeking the support they need. Your support alone may not be enough, so encourage them to talk to a professional who is equipped with more resources to help them.
    • Be supportive of positive mental health and do your part to make your workplace better.

    Meanwhile, this article focuses on some weekend habits that can help you boost your happiness and productivity. Some ideas include:

    • Going for solo dates to renew your mind and experience something new. This exploration will give you fresh sources of creativity.
    • Do a weekly personal check-in. This will reorient your life if certain aspects are off track and help you assess your emotional well-being.
    • Connect with close friends and family. Stay in touch by scheduling video calls and starting meaningful conversations. Doing this will improve your connection and make you feel better.

    Government Launches Business Continuity Website to Support Businesses Amid COVID-19

    The Australian Government has launched the Australian Business Continuity website to support businesses with staff working remotely amid the pandemic.

    The site provides free practical tools for remote communications, collaboration, workforce management, and video conferencing, as well as advice on how to best use teleworking services.

    Get in touch

    Contact us if you have any questions. We offer tax and accounting services to small business in Cranbourne and surrounding suburbs. We are expreienced accountant in Clyde, Cranbourne.

  • Essential Tips to Grow Your Family Business

    Most family business owners have a similar goal in mind – to grow the business and pass it on to the next generation of their family.

    While keeping the business in the family and getting to work with your parents, siblings, or children who share common goals can be a fun and rewarding experience, running and growing a family-owned business isn’t without its challenges. Conflicting views on business and family matters such as succession of power, rivalry, favoritism, and disposition of assets often lead to tensions and even legal disputes.

    So if you want your business to thrive while keeping family control over multiple generations, it pays to plan ahead and be prepared to navigate these complexities. Below we’ve listed some ways to avoid the most common pitfalls when managing and scaling a family-owned business.

    Financial Planning for Your Family Business

    It is important for family businesses to build a financial strategy for the long-term to withstand external impacts such as economic downturns, changes in the industry landscape, and potential local or global crises. While ensuring that you turn a profit this quarter and the next is beneficial, proper financial planning that focuses more on the goals for the next generation is what establishes growth, smooth operations, and stability for future years.

    In order to grow your family business, your financial strategies should focus on putting the interests of customers and employees first, adapting to market uncertainties, accurate budgeting, managing risks in long-term investments, and promoting social responsibility.

    Business Management Planning

    One of the most critical drivers of growth and good bottom line performance for family businesses is strategic business management planning. An effective plan in this area includes:

    • A formally agreed business ownership structure
    • Determining management control and operational oversight
    • Hiring policies for family members
    • Compensation plan for family members who are active in the business (and those who are not)
    • Succession planning

    Managing Family Issues

    Family issues are unavoidable when running a multi-generational business. Disagreements on business matters such as mergers, sales, acquisitions, profit distributions, and compensation can be serious issues.

    When it comes to compensation and profit distribution, each family member who is a shareholder expects a share of sales proceeds and salaries. The best practice is to assess this based on comparable positions at similar companies.

    It is also important to note that not because someone is a member of the family, he or she must automatically be employed in the company. Only those who can perform well should be hired.

    Some of the criteria that should be considered include the family member’s skills and capabilities, education and other training, personal motivation to join, temperament, and the business’ ability and need to support the hire. Also, a well-defined job description and performance evaluation process should be a part of the system of employment for family members.

    To ensure that the core values, principles, and ethics are sustained across multiple generations, all family members employed in the business must do their part and cooperate. Failing to do so leads to mediocre quality of output, poor customer service and customer satisfaction, as well as tainted family business reputation.

    Succession Planning in Family Business

    Succession planning refers to determining company leadership and to whom shares of the company will be left.

    This process can be tricky when it comes to family businesses as it involves resolving conflicts about assets and management. While many fail to continue operating into the second generation, and even more fail to survive into the third and fourth generations, there are tips to sustain a family business and retain control over many years including:

    • Roles must be defined clearly even if they are held by close family members.
    • Strong company leadership and governance systems should be developed and put in place.
    • There should be fair and transparent procedures for conflict resolution.
    • Robust standards for business ethics and company culture must be established.
    • Vision and focus on long-term goals that span towards the next generations should be inculcated in the minds of everyone, particularly those in leadership roles.

    Although family businesses are typically rooted in shared goals and values, family ownership itself will not guarantee that you will be able to retain family control or the business will survive many decades. However, through the essential tips shared in this article, and our guidance, you will be able to face the unique challenges in running a family business head on.

    Got a question about your family business? Please don’t hesitate to get in touch.

  • COVID-19 Business Update – 9 September 2020

    COVID-19 Business Update – 9 September 2020

    Welcome back to our Weekly Digest. We hope you and your family are safe and doing well. Read on for this week’s update.

    Australia To Extend Bankruptcy Protection Rules Until End of 2020

    Australia will extend its temporary insolvency and bankruptcy protection rules until the end of this year, providing businesses a lifeline to recover from the impacts of COVID-19.

    The rules, which were first introduced in March and originally due to expire on 30 September 2020, indicate that creditors cannot issue bankruptcy notices to businesses for debts below A$20,000.

    The creditors’ notice period to act on debts could also be extended, allowing businesses to keep trading without paying rent, tax, and loans.

    Contact us if you have any questions and we’ll help create a plan for your business.

    Victoria to Deepen Contact Tracing

    Premier Daniel Andrews said on Monday that he would set up five suburban contact tracing teams to make it easier to target specific locations where people had been infected. This step is intended to further curb COVID-19 cases in the hot spot state.

    For information on state by state lockdown rules and restrictions, you can refer to this guide.

    Australia Strikes Deal to Roll Out 85 Million COVID-19 Vaccine Doses

    The government has reached a deal that would see Australian biotechnology giant CSL manufacture two separate vaccines.

    One is a vaccine being developed by AstraZeneca and Oxford University and trialled in Brazil, the UK, and South Africa, while the other is being developed in CSL’s own labs in partnership with the University of Queensland.

    If the trials become successful, CSL is expected to supply 30 million doses of the AstraZeneca/Oxford vaccine and 51 million doses of its own vaccine in early 2021.

    Businesses on JobKeeper – Pay employees by 13th Sep for fortnight 12

    For those businesses eligible for JobKeeper please ensure your wages are paid by 13th September in order to claim JobKeeper for the period started August 31st and ending September 13th.

    You can see JobKeeper Key Dates on the ATO’s website but please get in touch if you have any questions.

    JobKeeper 2.0 Bill Passed By Federal Parliament

    The JobKeeper Amendment Bill 2020 was passed by Federal Parliament this week. Below are the key changes to the scheme:

    Extending the period of operation– The JobKeeper scheme and the provisions that allow employers to temporarily vary the working arrangements (by way of JobKeeper enabling directions or agreements under Part 6-4C of the Fair Work Act 2009) will now end on 28 March 2021 instead of 28 September 2020.

    New payment rates– The current JobKeeper subsidy rate for full-time workers of $1,500 a fortnight will drop to $1,200 from 28 September 2020, and then to $1,000 a fortnight from January 2021. Meanwhile, those who worked less than 20 hours per week in the relevant reference period (being the four-week pay period before either 1 March 2020 or 1 July 2020) will receive $750 from 28 September 2020, and then to $650 a fortnight from January 2021.

    Legacy Employers– Employers who no longer qualify for JobKeeper after 28 September will be classified as legacy employers, and will have to satisfy a 10% decline in turnover to have access to modified JobKeeper enabling directions.

    Decline in Turnover Test Certificate– Employers will need to obtain a 10% decline in turnover test certificate from an eligible financial service provider, including a BAS or Tax agent.

    These modified directions include reducing an employee’s ordinary hours to a minimum of 60% of the employee’s ordinary hours as they were at 1 March 2020, but cannot result in the employee working less than two consecutive hours in a day.

    A dispute can be brought before the Fair Work Commission about whether an employer holds a 10% decline in turnover certificate for the relevant period, including a dispute about whether a certificate is valid.

    Penalty– A penalty of up to $13,320 for individuals and $66,600 for body corporates or employers will be imposed if an employer doesn’t meet the 10% decline in turnover test and knowingly or recklessly tries to use the provisions or fails to notify employees that a JobKeeper enabling direction or agreement is not continuing due to not having met the requirements.

    JobKeeper Turnover Test Requirements

    From the 28th of September 2020:

    • businesses looking to claim the JobKeeper payment will be required to demonstrate that they experienced a decline in turnover using actual GST turnover, rather than projected GST turnover.
    • businesses will be required to reassess their eligibility with reference to their actual GST turnover in the September 2020 quarter to be eligible for the JobKeeper Payment from 28 September 2020 to 3 January 2021 (the first extension period).

    From 4th January 2021:

    • businesses will need to further reassess their turnover to be eligible for the JobKeeper Payment. They will need to demonstrate that they suffered a decline with reference to their actual GST turnover in the December 2020 quarter to be eligible for the JobKeeper payment from 4 January 2021 to 28 March 2021 (the second extension period).

    The required decline in GST turnover percentages will remain the same:

    • 30% for an aggregated turnover of $1 billion or less
    • 50% for an aggregated turnover of more than $1 billion
    • 15% for ACNC-registered charities other than universities and schools.

    Government-backed COVID-19 Loans Extended

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

    How Much Debt Can Your Business Take On?

    During an economic downturn when business is slow, a cashflow boost in the form of debt might be necessary to maintain the smooth running of your business. While there are plenty of lending options to consider including government-backed funding schemes, you shouldn’t borrow what you can’t pay back.

    So the question is: How much debt is too much?

    This timely Forbes article teaches how to calculate three important metrics that will keep you honest about how much debt you can take on. However, if you need personalised advice based on your unique business situation or some help with loan applications, drop us a message.

    Helping Your Team Overcome the Trauma of the Pandemic

    When COVID-19 hit, we witnessed a significant change in our lives. While the immediate concerns involve worker safety, disrupted supply chains, and financial losses, the pandemic can also adversely impact our mental health.

    Although some people brush off the trauma that the crisis has caused, how you cope can affect your life and your work performance in ways you may not imagine. This Harvard Business Review article outlines the things business leaders can do to support their team members.

    • Build a culture of connection by intentionally checking in with your team on a regular basis.
    • Offer flexibility and be inclusive.
    • Communicate more than you think you need to.
    • Modify policies and practices to reduce stress for everyone.

    The best part about adopting these steps is that they won’t just allow you to help the sanity of your staff during and after this pandemic, it can also make you a more effective leader even without this crisis. If you need personalised guidance on improving the overall performance of your business as you recover from the impacts of COVID-19, feel free to get in touch.

    Government Launches Business Continuity Website to Support Businesses Amid COVID-19

    The Australian Government has launched the Australian Business Continuity website to support businesses with staff working remotely amid the pandemic.

    The site provides free practical tools for remote communications, collaboration, workforce management, and video conferencing, as well as advice on how to best use teleworking services.

    Get in touch

    Contact us if you have any questions.

  • Four great ways to get more leads for your business

    It’s very rare these days that people just happen to find your business and become a client or customer with no work on your part. Your business has to grab people’s attention, turn curious visitors into leads and then convert those leads into sales.

    This means that the more solid leads you have, the greater your chances of making a sale. Solid leads are those contacts who are engaged in your business, fit your buyer persona andare at least somewhat motivated to make a purchase.

    Here are four great ways to develop more solid leads for your business this year.

    1. Target your ideal clients

    You might want your business to be relevant to everybody but the reality is that there is a specific target client who is ideal for your business. Those clients are the ones who are most likely to be attracted to your products or services and therefore the most likely to purchase them.

    These are the people to aim your marketing at. Knowing who they are and what they like helps you develop the products and services they’ll use. It also saves you money on marketing because you can target your ideal clients, rather than marketing to everybody and hoping somebody shows some interest.

    Even more important, when you get to understand your ideal clients you can build connections with them more effectively, generating leads that can turn into sales.

    2. Know your unique value proposition

    Your unique value proposition is what makes you different from your competition. Every business has something that sets it apart and therefore attracts a specific market.

    Your products or services might be of a higher quality. You might have better loyalty programs or a more specialized staff. Even the size of your business can be a unique value proposition. Smaller business can claim more personal, attentive and efficient service for their clients. Large businesses may be able to handle larger or global accounts.

    Determine what makes your business different from your competition and use that uniqueness in your marketing.

    Attend networking events

    Networking events are a great way to get some face-to-face time with potential leads. Yes, in-person marketing takes time and energy, and you can only talk to so many people at a time. But hearing an entrepreneur speak passionately about their business can be very persuasive.

    Meeting people at events gives you a chance to talk to directly to your potential clients and hear what issues they need solved.

    Just make sure the networking events you attend are relevant to your business and are functions that your ideal clients attend. Otherwise, you’ll be wasting that valuable time and energy.

    4. Create high-value content.

    With so many people using the Internet to find companies and make purchasing decisions, you need to ensure your business is easily found. That means developing high-value, informative website content that is compelling and encourages page visitors to submit their contact information.

    Make sure you use engaging calls to action. Write blog posts that drive traffic to your website. Develop tip sheets that quickly address some of your clients’ issues and get people to sign-up to receive them. Create a newsletter that clients or customers can subscribe to. The people on your newsletter subscription list become leads.

    Make certain, however, that your content is timely, engaging and relevant to your clients and your business.

    Final thoughts

    Leads don’t just magically appear out of thin air. It takes time and work to develop solid contacts that turn into paying customers. By knowing who your ideal clients are, understanding your unique value proposition, putting in some face-to-face time and developing relevant content, you can easily increase your solid leads this year. Need help growing your business? Get in touch.

  • COVID-19 Business Update – 2 September 2020

    Welcome back to our Weekly Digest. We hope you and your family are safe and doing well. Read on for this week’s update.

    COVID-19 Cases in Victoria Fall to Seven-Week Low

    Victoria, the epicentre of Australia’s second wave of COVID-19 infections, has reported a significant drop in the number of new cases, reaching a near two-month low.

    This is good news as the total lockdown in Melbourne is set to end on 13 September. Details on how restrictions will be slowly eased will be released on Sunday.

    Meanwhile, here’s a list of COVID-19 hotspots in New South Wales for your guidance.

    Australia’s Q2 GDP Shrinks As COVID-19 Pushes Country Into Recession

    Australia suffered its worst economic downturn on record last quarter due to COVID-19.

    Data from the Australian Bureau of Statistics showed the country’s $2 trillion economy shrank 7% in the three months to end-June, representing the largest decline in quarterly gross domestic product since 1959.

    This comes as Victoria remains in lockdown to prevent the spread of the virus. Also, more than a million people have lost their jobs since March when the country had to shut down entire sectors of the economy, which affected demand and investments.

    If your business has been hit by the pandemic, chat to us today so we can help you get a plan to come back strong.

    Government Launches Business Continuity Website to Support Businesses Amid COVID-19

    The Australian Government has launched the Australian Business Continuity website to support businesses with staff working remotely amid the pandemic.

    The site provides free practical tools for remote communications, collaboration, workforce management, and video conferencing, as well as advice on how to best use teleworking services.

    JobKeeper 2.0 Bill Passed By Federal Parliament

    The JobKeeper Amendment Bill 2020 was passed by Federal Parliament this week. Below are the key changes to the scheme:

    Extending the period of operation– The JobKeeper scheme and the provisions that allow employers to temporarily vary the working arrangements (by way of JobKeeper enabling directions or agreements under Part 6-4C of the Fair Work Act 2009) will now end on 28 March 2021 instead of 28 September 2020.

    New payment rates– The current JobKeeper subsidy rate for full-time workers of $1,500 a fortnight will drop to $1,200 from 28 September 2020, and then to $1,000 a fortnight from January 2021. Meanwhile, those who worked less than 20 hours per week in the relevant reference period (being the four-week pay period before either 1 March 2020 or 1 July 2020) will receive $750 from 28 September 2020, and then to $650 a fortnight from January 2021.

    Legacy Employers– Employers who no longer qualify for JobKeeper after 28 September will be classified as legacy employers, and will have to satisfy a 10% decline in turnover to have access to modified JobKeeper enabling directions.

    Decline in Turnover Test Certificate– Employers will need to obtain a 10% decline in turnover test certificate from an eligible financial service provider, including a BAS or Tax agent.

    These modified directions include reducing an employee’s ordinary hours to a minimum of 60% of the employee’s ordinary hours as they were at 1 March 2020, but cannot result in the employee working less than two consecutive hours in a day.

    A dispute can be brought before the Fair Work Commission about whether an employer holds a 10% decline in turnover certificate for the relevant period, including a dispute about whether a certificate is valid.

    Penalty– A penalty of up to $13,320 for individuals and $66,600 for body corporates or employers will be imposed if an employer doesn’t meet the 10% decline in turnover test and knowingly or recklessly tries to use the provisions or fails to notify employees that a JobKeeper enabling direction or agreement is not continuing due to not having met the requirements.

    JobKeeper Turnover Test Requirements

    From the 28th of September 2020:

    • businesses looking to claim the JobKeeper payment will be required to demonstrate that they experienced a decline in turnover using actual GST turnover, rather than projected GST turnover.
    • businesses will be required to reassess their eligibility with reference to their actual GST turnover in the September 2020 quarter to be eligible for the JobKeeper Payment from 28 September 2020 to 3 January 2021 (the first extension period).

    From 4th January 2021:

    • businesses will need to further reassess their turnover to be eligible for the JobKeeper Payment. They will need to demonstrate that they suffered a decline with reference to their actual GST turnover in the December 2020 quarter to be eligible for the JobKeeper payment from 4 January 2021 to 28 March 2021 (the second extension period).

    The required decline in GST turnover percentages will remain the same:

    • 30% for an aggregated turnover of $1 billion or less
    • 50% for an aggregated turnover of more than $1 billion
    • 15% for ACNC-registered charities other than universities and schools.

    Shop Local to Kickstart Economic Recovery

    Local small businesses are a vital part of our economy and the communities they represent. While the government is trying its best to protect the economy, there are many ways people can do their part and support local small businesses. Here are ways you can help small businesses stay afloat during the COVID-19 crisis.

    • Purchase gift cards from your local stores.
    • Shop online, but keep it local.
    • Order takeaway food and drinks from your local restaurants.
    • Be a little more generous than usual when giving tips.
    • Leave positive reviews online and promote them on social media.
    • Postpone instead of cancelling.
    • Join online classes if local businesses offer this option to follow social restrictions.

    The coronavirus is one of the greatest challenges of our times. If you own a small business and are struggling, please get in touch.

    Government-backed COVID-19 Loans Extended

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

    How to Know Which New Product Ideas to Pursue

    Last week, we talked about ways to come up with fresh ideas to bring in more money into your business or identify a profitable niche for a new business.

    Now that you have a list of new product ideas, the next logical step is to determine which of these are worth pursuing. Check out this Forbes article that discusses ways to determine if your customers want your new product and how to make sure you’re investing your time wisely.

    If you need guidance in boosting your profitability, don’t hesitate to get in touch with us for expert business advice tailored specifically to your business

    Taking Time Off From Work During the Pandemic

    With the extended periods of lockdown and working from home, days become indistinguishable from one another and the line between work and life starts to blur. As people tend to work longer days, not to mention the fact that we are still in the middle of a pandemic, managing stress levels has become more important than ever.

    So what does taking some time off from work during a pandemic look like? This Forbes article shared some steps to take a work-free vacation, including:

    • Truly disconnect from work by setting an out of office message on your email and turning off notifications that will tempt you to work.
    • Prepare for your time off by figuring out what must be done ahead of time and which ones can wait until you get back.
    • Sometimes, you can only disconnect from work 90% of the time. So establish boundaries by setting a specific time frame you’ll allow yourself to address urgent issues and check in on critical projects during your vacation.
    • If you live in an area with strict social restrictions, you’ll need to get creative on how you’ll spend your time off. Staying at home doesn’t mean boring- spend quality time with your family, try out new activities, or meet with your friends virtually.

    Regardless of how you spend your vacation, the important thing is to use this time to rest, relax, and recharge your body and mind. Do this, and you’ll get back to work feeling refreshed.

    Get in touch

    Contact us if you have any questions.

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  • Adjustments to Employee Eligibility for JobKeeper

    Adjustments to Employee Eligibility for JobKeeper

    The ATO has released further guidance on the recent changes to the JobKeeper scheme in relation to the timing of an eligible employee.

    From JobKeeper fortnights commencing 3rd August, the key date for eligible employees has changed to 1 July. In the past, an employee had to be on the books as of the 1st of March in order to be eligible for the JobKeeper wage subsidy. This change is to allow for businesses that started opening up and taking on new employees after March.

    Any full time or part time worker as of 1 July or any casual employee with over 12 months regular and consistent service of a business is an eligible employee for JobKeeper purposes.

    Full time or part employees who commenced work after 1 March and before 1 July will now be eligible. However, there are also several other categories of employees who might become eligible under this change over this time frame:

    • Casuals who with the extended date now meet the 12 months service requirement;
    • Employees who turned 18;
    • Employees who meet the Visa requirements.

    All eligible employees must be provided the nomination notice by this Friday 21st August. Note that this only applies to previously ineligible employees who now are eligible. Any employee who was eligible as at 1 March keeps this status and there is no need for them to confirm their eligibility again.

    There’s also some good news for businesses on JobKeeper as the ATO has announced employers will have until 31 August to ensure these new eligible employees are paid the minimum $1,500 per fortnight wage requirement.

    Further guidance on JobKeeper 2.0 (i.e. the payments after September) will be released shortly.

    If you have any questions regarding JobKeeper, please do not hesitate to contact us.

  • How to grow your network without networking events

    How to grow your network without networking events

    Networking can be a key way to keep your business growing.

    Regardless of your industry or business size, it is hard to ignore the benefits of forming professional networks for potential partnerships, expanding your client base, and scaling up. However, while we are all constantly reminded about the importance of networking, reaching out to grow your network isn’t the same now thanks to the COVID-19 pandemic.

    Social restrictions to prevent spreading the coronavirus do not allow traditional networking approaches such as in-person conference events or face-to-face business meetings over coffee or dinner. However, this doesn’t mean that you should put all your networking efforts on hold, because no one can really tell when this global crisis will end.

    In fact, it becomes more important than ever to try new ways to increase your sales and ensure that your business stays afloat during these difficult times. In this article, we will explore a couple of strategies to keep up your networking efforts during the COVID-19 crisis and well into the future.

    Host Webinars, Online Courses, or Podcasts

    Webinars, online courses, and podcasts give you a chance to establish thought leadership and be at the forefront of your industry.

    Now that most of the world is in lockdown, it is the perfect time to start that project you’ve been meaning to work on but haven’t found the time. When done right, you will be able to engage people in your existing network and add more people to your database.

    Take the time to do some planning on the industry-relevant topics that you’d want to discuss on your webinar, online course, or podcast, and include interactive activities that will keep your audience engaged. Don’t forget to let the participants know about your other courses or webinars, as these subscribers can help you keep your network growing.

    Offer Free Downloadable Content

    Whether you are creating fresh content or repurposing existing content that you already have, aim to provide value that will attract new people to your network.

    You might create ebooks, courses, whitepapers, research reports, and other valuable pieces of content that people in your industry will find useful. Offer your content to your current contacts and promote them even further through social media, email marketing.

    Take Part in New Online Communities

    As the COVID-19 pandemic changes the way we interact, you should move online to connect with more people. Join virtual discussion groups and online communities that will give you an opportunity for targeted networking.

    When you do an online search of relevant groups, you will find that there are thousands of them. You don’t have to join every single one– just choose two to three that are most suitable and start participating. Engage by reacting and commenting on other people’s posts, provide useful tips and consider sending a direct message to start a conversation. Don’t try to be too “salesy” though.

    Tailor your messaging

    When trying to connect with people online, don’t just send a stock-standard template– develop strong relationships by maintaining sincere and genuine interactions. In other words, don’t send a message that you wouldn’t be comfortable receiving.

    Make the effort to personalise each email instead of sending a generic message. You can reference a past event that you both attended or projects that you worked on together in the past, if there are any, in order to show authenticity when reconnecting.

    If this is not applicable, you can also share encouraging words and stories, or ask if there’s anything you can help with.

    Participate in Philanthropic Initiatives

    Times of crisis teach us that we are stronger if we work together. In these trying times, there are a lot of initiatives to help those in need.

    By collaborating with charitable organisations and participating in volunteer programs, you are hitting two birds with one stone– doing some good for society and tapping into opportunities to expand your network.

    Aside from adding people you’ve worked with in these philanthropic events into your contact list, you can also share these experiences on social media.

    Keep Growing Your Network

    These are tough times for many people, and the idea of networking may not be on your priority list. However, it is essential to keep working on those human connections, as the effort you invest in making them will have a significant return on your business in the long run. By nurturing and strengthening your relationships during this period, you will enjoy positive impacts that last until better times return.

    Got a question?

    Want to chat about growing your business? Please don’t hesitate to get in touch with us.

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  • A Guide to Business Recovery in a pandemic world

    As you know, the COVID-19 pandemic is not just a public health issue, it’s also caused lockdowns and financial worries on a global scale.

    Small businesses are not strangers to the impacts of the pandemic. In a survey by the International Trade Centre (ITC) among 1,200 businesses in 109 countries between 20 April and 4 May, the pandemic has strongly affected 60% of the businesses. The results of the survey also show that two-thirds of small businesses are severely hit, with a high risk of permanently shutting down within a matter of months. Almost all business sectors have been experiencing declining profits, liquidity that is drying out, and even bankruptcy.

    Although the short-term outlook varies depending on your industry sector, it is important for all business leaders to set up a strategy that will guide their way towards recovery. If you want some tips on how to hit the ground running after the crisis, this guide will outline the steps to get your business back on track.

    Assess the Damage

    Before taking any action, the first thing you need to do is to assess the financial impacts the pandemic has had on your business. You can determine the impact by checking your key numbers.

    Take a look at your financial statements, especially the profit and loss or cashflow statements and compare the data to the previous year. If you have any questions about the financial side, please feel free to ask us. Aside from knowing and understanding your numbers, you also need to be mindful of any other ways that your business has been adversely affected. You have to account for factors such as the reduction in your workforce and customer churn when preparing a plan to rebuild.

    Rethinking Your Business Plan

    What may have worked for your business before COVID-19, may not deliver the same results in the current climate, or the post-pandemic world. Now is a good time to fine tune your business model and think about how you can pivot and adapt.

    For example, some people may still remain cautious about going to physical stores even if lockdowns are easing. That means you could consider strengthening your online presence and digital capabilities to accommodate customers who prefer online shopping.

    You’ll also find a bunch of useful resources online including free webinars and other tools you can use to address coronavirus-specific challenges. We’d also suggest you chat to your trusted business advisor for more focused and personalised guidance.

    As you rebuild your business, you need to pay attention to trends in your industry as a whole and try to spot untapped opportunities. Be aware of your business’ strong and weak points and adjust accordingly.

    As the coronavirus seems to have flipped the business world on its head, it might also be time for you to revisit the goals you’ve set to make sure that they are still feasible given the current market conditions. After setting realistic goals, you will then need to adjust your action plan to get towards those goals. Get in touch with us if you have any questions.
    Additional Funding for Your Recovery
    Unless you had a large amount of cash before the pandemic started, it is likely that you may need some additional financial support to jumpstart your business.

    There are a lot of funding options for small businesses that you can consider including government-backed business loans, wage subsidies, grants, and other support schemes. Chat to us to find out what’s best for you.

    Assess Your Budget

    As we come out of the pandemic, expect that you will have to spend money before you can make money. For instance, if you had to lay off employees when the coronavirus hit, you may have to spend money on hiring and training new employees if you can’t rehire the people that you had to let go. You might also need to prepare for additional spending on cleaning, inventory and marketing post-pandemic.

    Whatever your additional costs are, the key is to have a clear idea of the necessary spending that you need to budget for and which ones can be reduced or eliminated so you can make the most of the revenue that is coming in. As much as possible, keep your operating budget lean so you have the capacity to invest in future growth opportunities.

    Develop a Timeline

    As much as you want to get all business matters sorted out at once, this is far from realistic. Try to take stock of where everything is up to and decide what to prioritise. From there, create a timeline that you will follow to get your most important business activities done first.

    While you accomplish the steps in your action plan, make sure that you’re tracking your progress. If possible, do a weekly check of what’s working and what’s not, and then make the necessary tweaks. Don’t waste time and resources on business activities that are not producing a solid return on investment. As your business starts to return to normal, you might transition to reviewing your financials on a monthly basis.

    Prepare a Contingency Plan

    The COVID-19 crisis is a wake-up call that shows us unexpected events such as this can disrupt your small business at any time. Learn from this experience and prepare a contingency plan that will cushion your business from possible future shocks.

    Aside from thinking outside the box and having a Plan B (and even a Plan C, D, and E) that will help you prepare for the worst, improve your position in tough times by building up your cash reserves, paying down your debt, cutting down on non-essential spending, and increasing operational efficiency by streamlining processes and boosting your employees’ productivity.

    Leading Your Business Towards Recovery

    While COVID-19 has affected nearly every person and business in some way, you should take into your own hands the task of finding the light at the end of the tunnel. In order to cope with the changes and find your way to the so-called “New Normal”, you must be agile enough to step up your game and confront the business challenges now and in the uncertain times ahead.

    While you prepare to get your business back to full speed, it also helps to have a business expert to guide you in rethinking your business strategy and rebuilding your business into a more resilient one. If you need personalised advice about your specific situation, get in touch with us so we can work out a plan.

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  • Preparing for the end of JobKeeper

    Since the government announced the $70-billion JobKeeper program to support businesses and their employees during the COVID-19 pandemic, many small- and medium-sized businesses and non-profit organisations heavily relied on this scheme to stay afloat.

    According to a recent survey by the Australian Institute of Company Directors on the impact of COVID-19, over 40% of the respondents reported reliance on JobKeeper payments. 47% of SMEs indicated that the JobKeeper Scheme had provided the most relief.

    So given the deep reliance on JobKeeper and the changes coming in September, now is the time to think about how your business will be impacted. If you’re still eligible for JobKeeper at the end of September, you will not be receiving the same amount as you are now. If you are no longer eligible, you will not be able to receive this wage subsidy support at all.

    As a business owner relying on the relief from this scheme provides, the end of JobKeeper could create some concerns. So what exactly can you do to prepare the end of the JobKeeper program?

    Conduct Scenario Planning

    Planning makes a huge difference. So before we get to the end of the JobKeeper program for you, make sure that you have explored various scenarios for the future and plan for these accordingly.

    Your scenario planning should include thinking about the worst possible scenario and preparing for it. Now is also the time to revisit your business and know which levers can you pull in the event that the government wage subsidy scheme ends earlier than expected.

    Secure additional credit lines, liquidity, or equity for your business if needed. Chat to us and we’ll help map out a plan together.

    Evaluate Your Business Model

    Many businesses have developed creative ways to pivot during the pandemic. Restaurants have focused on takeaways, fitness centres have launched online sessions, and others have created totally new products or services.

    What can you do to reimagine your existing business model and understand new industry norms and market trends? Don’t just wait for your peers to do something and follow suit. Those who strategise and act first tend to find their way to the front in their industry compared to reactive players.

    Keep nimble

    In today’s business landscape, adaptability and flexibility are the key to surviving and thriving. The unprecedented global crisis has put us in a tricky situation, but being flexible in the way you do business can help you roll with the waves.

    From remote work arrangements to the way you design your payment models for your customers, there are countless ways to adopt these characteristics that will help you scale back quickly even as the government support ends.

    Review Your Expenses and Financing Arrangements

    Run your business as lean as possible and cut down on unnecessary expenses so you can save as much cash as you can while you still have support from the JobKeeper program. By keeping a bit of a war chest, you will be in a stronger financial position when it ends.

    Additionally, if business is picking up, you might be in a good position to secure additional credit. You can also look into refinancing your existing obligations.

    Keep in mind that insufficient cashflow and capital can easily throw your business off track– so secure your access to the finance you need to carry on and boldly face the uncertain months ahead.

    You Don’t Have to Do it Alone…

    In these unpredictable times, changes such as the early end of the JobKeeper program can have a massive impact on your strategy and direction. We understand that these events can be confusing and frustrating, but you don’t have to face these business challenges alone.

    It makes perfect sense to work closely with your trusted business advisors. If you need professional guidance at this time, please feel free to get in touch with us. We’ll help you strengthen your position now and give you a better chance of thriving in the future.

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  • More JobKeeper changes expected

    7 August 2020

    You may have heard the news that Treasurer Josh Frydenberg has announced the government will expand the JobKeeper scheme again. This comes a few weeks after announcements of JobKeeper 2.0 to start at the end of September.

    Below is a roundup of what has been announced and what we expect to see, but please note that this is not legislated yet and is still subject to change. Again, we appreciate your patience as we work through the changes and what it will mean for your business.

    Two significant changes to JobKeeper have been announced: one is to the business turnover requirements and one to the eligible employees requirements.

    Business Turnover Test

    Previously:

    Previously a business would need to have experienced a decline (by the requisite amount in their turnover) in both the June and the September quarters to be eligible for JobKeeper in the December quarter.

    The change:

    Now the government is saying businesses only need to be down in the September quarter. This takes into account that some businesses did okay in April to June, but have suffered in recent months. This is welcome news for those in Victoria who may be struggling in July, August, and September given the Stage 4 lockdowns.

    Eligible Employees Test Changes

    Previously:

    In the past, an employee had to be on the books as of the 1st of March in order to be eligible for the JobKeeper wage subsidy.

    The change:

    Now, the government will change the eligibility to also qualify employees that were hired as of the 1st of July.

    This is to allow for businesses that started opening up and taking on new employees after March. Those employees will now join the JobKeeper program over the September quarter.

    Payment amounts

    There has been no new changes announced to the payment amounts for JobKeeper 2.0. As it stands, the next phase of JobKeeper will start at the end of September at a reduced rate. The subsidy will be reduced from $1500 per fortnight to $1200 per fortnight for full time workers and those working more than 20 hours per week. For those working less than 20 hours per week, they will receive $750 per fortnight.

    From 4th January 2021, these payments will fall to $1000 per fortnight for full time employees and to $650 per fortnight for those working less than 20 hours per week.

    Thank you

    Thanks for your patience as we work through these changes. We will continue to keep you updated as we have more news.

    As always, we appreciate your ongoing support.

    If you need help call us on 1300 724 829

    We are here to support you in this hard time if your business need help.

  • Easy ways to build an online business

    Easy ways to build an online business

    More and more people are leaving their office jobs and setting up an online business these days, especially because of COVID-19/ Running an online business offers a way for you to work from home and be your own boss. It may sound like an overwhelming process, but many entrepreneurs find it fulfilling.

    Happy Women From Ordering Products From Customers Business Owners Who Work Home White Backg 1150 8102

    Here are some tips to increase the chances your small online business will be a success, and you’ll be happy with your decision.

    1. Decide what your online business will be

    There are two important factors to determining what your online business will be: what you enjoy doing and what there’s a market for. If you’re lucky, there will be a market for something you like. Sometimes, however, you have to do a bit of digging to find something that you enjoy and that other people require.
    To be successful, your business has to fill a need. You don’t have to be the only business of its kind in your area—in fact, other existing businesses prove there is a need for your goods or services—but it still has to offer a solution to an issue people face. Without that, you won’t have enough clients or customers.
    Conduct research to ensure there’s a market for a product or service you like offering. There’s no point in running your own business if you don’t like what you’re doing or if no one will buy it.

    2. Build a website

    You need a website for your business. It markets you 24 hours a day and, if you’re an online store, it gives you a place to sell your products. Your website must have engaging content that includes keywords, a user-friendly design, and a way to collect email addresses so you can continue marketing new goods and services to your website’s visitors.

    It should also provide an easy way for clients or customers to contact you to ask questions or set up an appointment. If customers have to click too many times, they’re likely to just leave your site.

    If writing content and designing websites are your things, great. If not, it’s worth looking into hiring a writer and/or designer to help you. Your content and your design are vital to the success of your online business, so although it will cost you a bit in the start, it’s worth it, in the long run, to invest in your website.

    3. Establish your reputation

    As with any business, your reputation will go a long way to ensuring your business has a steady stream of customers and clients. That means you need to build a positive reputation. Deliver your goods or services on budget and on time. Address customer concerns or issues. Be easy to reach.

    Market yourself on social media to build followers and establish your brand. Social media can be used to drive traffic to your website and it encourages those who like your company to share their experiences as well, which also builds your reputation.

    You can also write a blog or other content that viewers will find useful and that will establish you as an authority in your industry.

    Final thoughts

    Running a business takes time and energy, but starting an online business doesn’t have to be an overwhelming process. With a bit of thought and planning, and by creating compelling content that attracts viewers, you can easily start a successful online business of your own.

    Get in touch with us if you have any questions about your business.

  • JobSeeker income-support payments will change this September

    The PM recently announced changes to the JobSeeker program are coming. Here is an overview of the changes.

    The JobSeeker scheme has been extended but rates have been cut and eligibility has been tightened.

    The JobSeeker coronavirus supplement will continue for another three months but it will fall from $550 to $250 a fortnight. That means those on the program will receive $815 a fortnight after September 2020.

    The revised JobSeeker program will also increase the income-free threshold to $300. That means recipients can earn $300 per fortnight before facing a reduction in their payment.

    At the end of September, the government will reintroduce the assets test to determine eligibility for those payments.

    From August 4th, those on JobSeeker will be required to connect with employment services and search for jobs at least four times a month, with penalties for those who refuse a role.

    The Prime Minister has not ruled out further extensions and says the scheme will be reviewed again before December.

    As always, please get in touch with us if you have any questions.

  • JobKeeper changes coming in September

    The government has announced changes to the JobKeeper scheme. The Treasury’s review found that the subsidy was still “needed” but required a “test to ensure that JobKeeper is well targeted”.

    Be prepared

    This means there will be changes to your current situation and your entitlements will be affected. The details of the changes are being announced now and we will ensure our clients are fully informed as to how this will affect them once we have processed the finer details of these changes.

    What’s changing?

    The JobKeeper subsidy has been extended to March 2021, but with some changes. Here is an overview of what’s changing and when.

    JobKeeper 2.0

    The next phase of JobKeeper will start at the end of September at a reduced rate. The subsidy will reduce from $1500 per fortnight to $1200 per fortnight for full time workers and those working more than 20 hours per week. For those working less than 20 hours per week will receive $750 per fortnight. This will be based on the amount of hours worked in February (pre-coronavirus).

    JobKeeper 3.0

    From 4th January 2021 these payments will fall to $1000 per fortnight and to $650 per fortnight for those working less than 20 hours per week.

    A new test to see if businesses are eligible

    From October, the payment will be subject to a new eligibility test which assesses whether the business recovered in the last 6 months.

    Reassessments in October and January

    In early October, businesses will need to prove they’re in financial distress (showing a decline of at least 30%) in the Jun 2020 quarter in order to be eligible for the October – December scheme.

    This will need to be proven again in early January based on September quarter figures.

    Please note: details surrounding these changes are yet to be legislated so they are subject to change. As more details come to hand, we will pass them on.

    Thank you

    Once again we thank you for your support and request your patience as we work through these next set of changes and its ramifications for you.

    Once we have all the information on hand from the Government and the ATO and have understood what it means for you, we’ll be in touch.

    What’s next?

    Take the time now to prepare for the future. It would be wise to prepare a budget and cashflow forecast now to ensure you are ready for these changes that are coming. We are happy to help on this front so please get in touch if you have any questions.

  • COVID-19 Business Update – 15 July 2020

    Welcome back to our Weekly Digest. We hope you and your family are safe and doing well. Read on for this week’s update.

    Tightening restrictions as COVID-19 cases top 10,000

    Restrictions have tightened back up in some states in an attempt to contain a fresh outbreak of COVID-19 in the country’s southeast, which pushed the total number of cases in the country beyond 10,000. While Australia has avoided the high number of COVID-19 casualties of other nations through strict measures, an increase in community-transmitted cases in Victoria and new cases in New South Wales is a cause for action.

    South Australia cancelled plans to reopen its border to New South Wales on July 20, while Queensland introduced a mandatory two-week quarantine for those who have visited two areas in Sydney’s western suburbs.

    COVID-19 Restrictions Guide for Each State

    Since the government announced a three-stage plan in May to ease restrictions across the country, Australians have been slowly emerging from COVID-19 lockdowns. However, from midnight on 8 July, the Melbourne and Mitchell shire returned to stage three lockdown for six weeks.

    As COVID-19 restrictions vary across the different parts of Australia, it can get confusing for some. This guide will help you navigate through lockdown rules, including how far you can travel, what types of businesses are open, and guidelines on social gatherings for each state.

    Australian Made and eBay Partner Up to Grow Aussie Brands Online

    Australian Made and eBay have partnered to support local manufacturers grow their online business through a dedicated ‘Australian Made on eBay’ hub. This will allow eBay Australian small- and medium-sized businesses the opportunity to be discovered by 174 million international customers. The hub will feature accredited products across a range of categories, including fashion, health, beauty, automotive, and home and garden.

    With the return to lockdown conditions in some parts of Australia, online sales will likely continue to be increasingly important throughout the remainder of 2020. If you want to re-evaluate your business model and strategy, don’t hesitate to get in touch with us for more personalised business advice.

    Payment summaries have changed

    Last year’s introduction of Single Touch Payroll (STP) means that tax time this year will be a little different.

    Employers are now required to report pays, taxes and superannuation information directly to the ATO each payday through STP.

    Employers that do report this way will not have to give you a payment summary as they usually would at this time of year. Instead, employees will get an end-of-year income statement in ATO online services through myGov.

    All employers will eventually report in this manner.

    Employers that do not report to the ATO in this way will still need to provide a payment summary at the end of financial year.

    ATO Tax Time Toolkit

    The ATO’s Tax Time Toolkit has some useful guides for small businesses on topics such as: home-based business expenses, motor vehicle expenses, travel expenses and pausing or permanently closing your business due to Coronavirus. Ask us if you have any questions.

    Boosting Your Digital Capabilities

    Small businesses across Australia can access individual support to grow their digital capabilities through the Australian Small Business Advisory Services Digital Solutions. This program offers small businesses with fewer than 20 full-time employees and sole traders with high quality advice on a range of digital solutions to meet their business needs at a subsidised rate. More information can be found here.

    Running a business in a post-pandemic world

    They say the worst of times can bring out the best in people– and this is also true for businesses. Last week, we put businesses showing resilience in the face of adversity in the spotlight, and shared the creative ways they serve their customers and communities amid the COVID-19 crisis.

    This week, we talk about the hallmarks of an organisation designed for speed, as outlined by McKinsey & Company (see page 40). Below is a list of characteristics of operating models they’ve identified that result in faster speed to market, increased customer responsiveness, greater efficiency, and enhanced employee satisfaction. These characteristics will help companies stay competitive in the post-pandemic business environment:

    • Flatter organisations with less hierarchy and streamlined decision rights
    • Faster information flows and decision-making, powered by embedded data and analytics
      • As number-crunchers – we love this one!
    • Cross-functional teams collaborating to tackle common missions through test-and-learn approach
    • Flexible ways of working, including affinity for hybrid remote/ in-person teams
    • Dynamic allocation of talent deployed against mission-critical priorities
    • Agile, resilient talent able to move fast, adapt to change, and continuously learn

    This Forbes article also shares tips on how to future-proof your business for a post-pandemic workplace, including:

    • Making flexibility as a core benefit
    • Upgrading equipment and investing in technology
    • Prioritising employee health and wellness
    • Increasing communication
    • Investing in management development
    • Creating a sustainable company culture

    The future of businesses will no longer be determined by what has worked, but instead, what will work in the post-pandemic world. While the “when” and “how” of the end of the pandemic remain unknown, reimagining your organisation and re-evaluating the way you work can help you rise to the occasion and lead your business as the “new normal” we hear so much about takes shape.

    If you want to talk about your specific situation, please get in touch with us and we’ll help you work out a strategic plan.

    Second Round of Cash Flow Boosts

    If your business has received initial cash flow boosts, you’ll automatically receive additional cash flow boosts when you lodge your activity statements for each monthly or quarterly period from June to September 2020. The amount will be equal to the total amount of initial cash flow boosts you received and will be split in either two or four installments, depending on your reporting period.

    If you lodge:

    • quarterly – you will receive 50% of your total initial cash flow boosts for each activity statement
    • monthly – you will receive 25% of your total initial cash flow boosts for each activity statement

    You can find more information here, or alternatively, you may contact us if you have a question.

    State grants and support programs

    Along with national assistance, each state and territory has announced various grants and assistance packages which you may be eligible for. You can find a roundup of these grants on the Government’s Business website. Alternatively, you can also contact us so we can discuss which options are most suitable for your business.

    Minimum Wage Increase

    The Fair Work Commission has announced a 1.75% increase to minimum wages. This will apply to all award wages and the increase will start on 3 different dates for different groups.

    You can find the complete list of awards in each group here.

    For those not covered by an award, the new national minimum wage will be $753.80 per week or $19.84 per hour. This applies from the first full pay period starting on or after 1 July 2020. If you’re not sure which award applies or if you have any questions, get in touch with us.

    Instant Asset Write-Off Expanded

    The Instant Asset Write-off has been extended to 31 December 2020, which means Australian businesses with less than $500 million annual turnover will have more time to take advantage of the write-off and invest in assets to support their business. This government initiative is designed to help the economy reopen and boost economic growth. The instant asset write-off applies on a per asset basis, so eligible businesses can immediately write-off multiple assets provided they each cost less than $150,000.

    Contact us so we can walk you through the different thresholds, exclusions, and limits.

    COVID-19 Safety Guidelines

    SafeWork Australia has put together useful guidelines for a range of industries. The guidelines provide clarification on WHS laws, workers’ rights, risk assessments, hygiene, emergency plans and more.

    What’s next?

    We’ll keep you updated if anything changes but now we’ll shift to helping you get a plan in place for the future. Please get in touch to discuss what’s next for your business.

  • Looking to grow your business? We can help!

    Growing a business is one of the most fundamental goals for all small business owners. Successful businesses are those that are always looking for opportunities to grow and making the most of them.

    What is scalable growth?

    Scalable growth involves balancing the increase of your profits against the increasing costs of manufacturing your products or delivering your service.

    If you can ensure the most efficient systems and processes for what you’re selling, the more profits you’ll see and the more scalable your business will be.

    Can you scale what you already have?

    If you can improve your business’s ability to do more internally, such as speeding up production and increasing the efficiency of your systems and processes, you’re going to reap the rewards in terms of manageable growth.

    Conduct a review of your current operation and decide how you’re going to improve it. Think about:

    • Contractors – getting a third party on board can increase your capacity in the short term.
    • Equipment – can you extend the operational hours of existing equipment by running double shifts?
    • Staff – make sure your employees are working efficiently. If they don’t have the necessary skills they’ll need for upcoming growth, look at training.
    • Pricing – if you’re seeing an increased demand for what you’re selling, can you scale profits by increasing prices where appropriate?

    Increasing your capacity, while improving the efficiency of your systems and processes, means you’re successfully scaling your business for growth – and you’re going to notice it in your profit margins.

    How can you increase capacity?

    While it’s important to maximize your internal resources, scaling your business for growth almost always involves adding to your operations in terms of staff, equipment, facilities and finance.

    The right staff

    Making sure you have the right staff is critical for the growth of any business. If there are vital skills missing amongst your staff, look at upskilling them through training, or hiring someone with the knowledge and experience you need.

    It’s also crucial to have the staff you need to meet increased demand. If you’re manufacturing coffee tables and your orders are increasing to the point where your current staff can’t keep up, then it’s worth hiring another staff member.

    Equipment and facilities

    You don’t want your business growth to be hampered by not having the right equipment on hand to do the job or the facilities to do it in.

    If you’re looking to increase production of 50 coffee tables per week to 500, it’s likely that the location you’re in and the facilities you’re using won’t be adequate to meet the new demand. Consider:

    • Location – look at moving to a new, larger location, or opening another branch of your business.
    • More equipment – to increase production on a scalable level, you’ll need the equipment. It’s worth investing in newer machinery to increase output.
    • Suppliers – if you’re going to need more raw materials to produce what you’re selling, make sure suppliers can meet the increased demand. If not, find one that can.

    Tracking customers, building relationships

    Your customer experience must also be able to scale. Doubling sales will double customer queries, complaints, calls, web traffic, and demands on your time.

    Review your customer relationship system, possibly upgrading so you can track buying patterns and preferences, maintain contact, and develop customer loyalty programs.

    Remember, your customers are the most vital component of your business and to its growth, so engaging with them, listening to them and rewarding them is essential, no matter how large your business grows.

    Funding for scalable growth

    When it comes to increasing capacity for scalable business growth, you’ll almost always need additional financing.

    Even if your business is enjoying a healthy cash flow, financing options for expansion are worthwhile to explore if you don’t want to use up all your working capital on long-term assets.

    A smart idea is to get advice from a financial expert – one who’s had a lot of experience in business growth and expansion and will help you decide what funding options would suit your business best.

    It comes down to two main points:

    • What you can do with what you’ve already got.
    • What you’ll need to add to achieve scalable business growth.

    Don’t forget that ‘scalable’ means increasing all parts of your business to cope with extra demand, and ideally, it’s ‘manageable’ growth.

    Reviewing your internal system and processes to ensure maximum efficiency is important, but even more, so is making sure you have what you need in terms of staff, facilities, equipment and capital to achieve that growth.

    If you’re planning to increase output or offer expanded services, then making sure you have the capacity to deliver is essential.

    Sign up to our free course here

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  • Do you have more questions this tax time?

    What a year!

    We don’t need to tell you that this year has been “unprecedented”. With so many stimulus packages, support programs, tax changes and business shutdowns this financial year is set to be like we’ve never seen before.

    First and foremost we appreciate your support and patience as we continue to wade through those programs and what they mean for business owners and individuals.

    Have a question?

    We also understand that most people are more questions than normal this year and we want to let you know that we’re here to help. Some of the questions we’ve been getting recently include:

    • Do I have to pay tax on JobKeeper
    • What can I claim when I’m working from home
    • My business has to shutdown again and I’m worried about cash – what can I do?

    If you have any questions at all this financial year (or down the track), please don’t hesitate to get in touch.

    Wishing you all the best in the coming months.

  • Payment Summaries have changed

    Last year’s introduction of Single Touch Payroll (STP) means that tax time this year will be a little different.

    Employers are now required to report pays, taxes and superannuation information directly to the ATO each payday through STP.

    Employers that do report this way will not have to give you a payment summary as they usually would at this time of year. Instead, employees will get an end-of-year income statement in ATO online services through myGov.

    All employers will eventually report in this manner.

    Employers that do not report to the ATO in this way will still need to provide a payment summary at the end of financial year.

    Employers and BAS agents have until 14 July 2020 to complete all STP finalisations so please give them time to work through this process. You may be eager to get your tax sorted but this year it may pay to wait.

    As always, please contact us if you have any questions.

  • How your business can thrive even in a recession

    The pains caused by a recession can be excruciating, which is why most of us dread the thought of it.

    A recession can mean massive layoffs, jobs becoming harder to find, and wages frozen, which means consumers hunker down and spend less– often worsening the economic slowdown unknowingly.

    For most businesses, especially small businesses, recessions can be brutal. Just take for example, the Global Financial Crisis (GFC) that struck the world in 2008. Between December 2008 and December 2010, approximately 1.8 million small businesses shut down. When Investopedia looked into the impact of the financial crisis on small businesses after a decade, they found out that business creation has not yet returned to pre-crisis levels.

    And now, as the battle against COVID-19 is far from over, global financial markets have been impacted, consumers are tightening their belts, and general demand is falling. All these signs are pointing to one thing: the next economic downturn may just be right around the corner.

    Don’t get us wrong, we are not here to scare you. Our hope is for you to build a successful, future-proof business. That means you need to be aware of the possibility of another recession so you can prepare effectively.

    In this article, we have tips to help you not just survive a recession, but thrive. Get in touch with us and we’ll chat about your specific situation.

    Stay Close to Your Numbers

    Without a crystal clear picture of your business’ financial health, you will not be able to create an effective strategy that will help you weather this major business challenge. By making the effort to understand your financials, including your revenue, expenses, profits, and cashflow numbers, you will be able to plan accordingly.

    Check in with us and we’ll help you review your cashflow forecasts. These forecasts will help you conduct best, moderate, and worst-case scenario planning. Doing this will help you make sound business decisions that are based on updated financial data, rather than being driven by emotion, intuition or just guessing!

    Improve Your Cashflow

    Cashflow is the lifeblood of your business, and ideally, you should be bringing in more income than the amount you are spending to sustain your business. However, before you can improve your cashflow, you must first ensure that you have accurate financial records and an effective accounting system in place.

    Once you have these sorted out, it will be easier for you to take control of your cash position through:

    • Payments from clients– timely invoicing, chasing payments, and offering to restructure overdue payments
    • Reducing your expenses by reviewing software subscriptions, renegotiating terms with your suppliers and lenders
    • Secure financing from government stimulus funds, take on investors, or get short-term financing. However, if you are thinking about incurring debt during a recession, we would highly recommend consulting with your accountant or financial advisor first.
    • Make extra effort in nurturing your relationship with existing customers
    • Enhance your products and services

    Maintaining, Or Even Better, Growing Your Customer Base

    If you want your business to thrive during a recession, you likely need to grow your customer base. One way to do this is by digging deeper on your target market and coming up with ways on how you can tweak your offers to entice them into buying from you even during tough economic conditions. You should also research your competitors, identify your point of difference and plan how you will communicate those selling points to interested customers.

    We understand that getting more clients during a time like this is easier said than done, but what many business owners fail to realise is the fact that their existing customers are often their best opportunity to make more sales. Keep your customers happy, identify how you can add more value into their lives, and reach out to them to take advantage of untapped sales opportunities.

    Focus On Your Strengths

    The concept of “diversification” is usually taken in the wrong way. Simply adding a host of different products and services to your offerings will not magically transform your business. In fact, it may be a waste of time and resources and stop you from focusing on the things that you do best.

    During an economic downturn, you should re-evaluate your existing products or services, and focus on your key strengths or core competencies. If you’re selling physical products, this is also the perfect time to re-evaluate your inventory management and adjust based on the products that you would want to focus on. Don’t ignore the potential of reducing your inventory costs by only ordering the items and the right amount that you need.

    Improve Your Marketing Efforts

    One of the most common mistakes of business owners is that whenever they need to minimise their expenses, they automatically cut their marketing budget or even re-allocate it entirely.

    Marketing and sales go hand-in-hand. So if you want to keep a healthy flow of sales coming in, you need to have strong marketing as well.

    In today’s fast-paced world where consumers are restless, and during a recession where they will become even more careful in their buying decisions, marketing is your tool to help them find and see your products and services as the best options in the market. So instead of quitting marketing, now is the right time to step up your marketing efforts.

    Don’t be Afraid to Play Offence

    Those who go full survival mode and simply limp through the recession will be much slower to recover and have a lower chance of catching up.

    Secure your cash reserves and know when is the right time to play offence. Think about ways to innovate your products and services, streamline your operations to boost efficiencies, expand your market share by improving your offerings to be 10 times better than your competition, and consider mergers and acquisitions.

    There is No Fool-Proof Way

    There is no ‘magic bullet’ when it comes to business, but these tips can make a difference in how you’ll navigate these difficult times.

    In the business world, ups and downs are normal and growth stalls due to cyclical reasons are inevitable. At the end of the day, thriving in a recession boils down to having exceptional industry expertise, getting better business visibility, implementing efficient processes and best practices, as well as having a business advisor who can provide you with expert guidance, fresh insights, and timely advice.

    What’s next for your business? Get in touch with us and we’ll help you work out a strategic plan.

    In the mean time use the following business plan Diagnostic to start. Call us today to book on 0387595532

    Business Plan Diagnostic

     

  • Ways to benchmark your business

    Ways to benchmark your business

    For many business owners, determining the success of a business comes down to how much profit the company makes. Of course, finances are an important measure of a company’s overall success. If you don’t bring in more than you spend you won’t be in business for long. Profit, however, isn’t the only important benchmark by which to measure your business.

    Business Team Talking About Statistics 53876 94908

    There are other important factors business owners can and should evaluate to determine how well their company is doing now and to predict its future success.

    Measure customer satisfaction

    Customer satisfaction tells you a lot about how much repeat business you can expect. If customers are satisfied with the products and services they receive from you, they’re likely to come back and refer you to their friends.

    If they aren’t satisfied, they might never come back.

    Take the time to measure customer satisfaction. You can ask in person, or send out surveys or reviews. Take pleasure in positive feedback. When customers suggest areas for improvement, listen to them. Even if they weren’t fully satisfied with their experience, customers value feeling heard. If you can take their criticism and make constructive changes, you may bring some customers back.

    Measure the number of new customers

    Repeat customers are great for your bottom line, but you can’t rely on them forever. Their priorities or financial situation might change. They might move away or no longer need your services.

    That means that if you’ve had the same 20 customers for the past few years, you need to start looking for new business.

    The best way to track customers, and determine how many new clients you draw in, is to develop a client list with email addresses that you can check. A loyalty program can help you determine which clients are repeated and which are new, and it can even help you develop your email list.

    You can also offer a referral program in which existing customers bring in new business and receive a gift for doing so.

    Measure employee satisfaction

    Profits and happy customers are vital to business success, but so are satisfied employees. How happy your workers are is an important benchmark to keep track of because it tells you how motivated your staff is, which can affect customer satisfaction. It also helps you predict staff turnover rates.

    Conduct regular performance reviews to determine your employees’ strengths and areas of improvement. Use the reviews to determine how satisfied your employees are and how they could be more fulfilled in their roles. They may want more responsibility—which in turn can make your job easier and make your business more efficient. Or they may need more training, which can improve your customer service.

    Offer professional development and opportunities for growth. Just as it’s expensive to bring in new customers, it’s also costly and time-consuming to find, hire and train new staff.

    Final thoughts

    Naturally, your finances tell you a lot about how successful your business is. Keep track of your financial health and know your income statement, balance sheet, and cash flow statement. If your business isn’t profitable you may need to make some changes to keep it going.

    On top of that, however, you need to measure how satisfied your customers and employees are and how many new customers you bring in to determine your current and future success. Luckily, those are fairly easy to determine.

    Get in touch with us to see how we can help your business.