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Business Update – 22 March 2023

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

Why Australian banks will come out the other side of the global crisis

According to Reserve Bank of Australia assistant governor Chris Kent, Australia’s banks are “unquestionably strong” and are equipped to handle a prolonged period of market strain. The banks are already well advanced on their bond issuance plans for the year and could defer their issuance for a while.

Relief as Credit Suisse and UBS strike a deal

Though not out of the woods yet, fundies feel that the UBS-Credit Suisse deal should do a great deal to curb an impending worldwide financial crisis. In an all-share deal, UBS will pay 3 billion Swiss francs ($4.5 billion) for its former rival.

High fares and reduced capacity hurting airline recovery

Sydney Airport’s chief executive, Geoff Culbert, blamed high airfares and reduced airline capacity for stagnant domestic passenger recovery, as the airport reported 2.7 million travellers for February.

4.7 million Australians getting a cash boost to their social security payments

The federal government is doing what it can to support Australians “feeling the pinch”. Singles and couples on the Age Pension, Disability Support Pension and Carer Payment will receive a $37.50 per fortnight increase, while people over 22 without children will receive a $27.40 per fortnight increase.

Recession-proof suburbs do exist

As economists predict Australia could fall into a recession this year, four NSW suburbs have been marked as safe from any potential downturn. Learn where they are here.

Adelaide gets the first mobile phone detection camera

South Australia started a pilot program where cameras are installed on some of the state’s most high-risk roads to reduce driver distraction. Drivers caught using their phones while driving won’t face penalties until next year due to a grace period.

Virgin Australia IPO dampened amid Credit Suisse collapse

Global banking turmoil and share market volatility could cause a delay in the planned initial public offering and relisting of Virgin Australia. It was initially scheduled for June.

Further losses are expected this week for shareholders

Though there are plenty of reasons for optimism as world exchanges try to recover from last week’s turmoil, experts say that shareholders should expect further losses this week.

Government supports another wage rise but won’t say how much

Labor says it supports another wage rise for workers. However, they have been avoiding the question of what they feel that amount should be. The government is currently finalising its submission to the Fair Work Commission’s annual wage review.

Get in touch

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

If you are are wanting to start a new business but have some concerns about recession or even about how to manage your finances in these tough circumstances, then please contact S & H Tax Accountants. We have very experienced staff who are always willing to assist you or advise you on any concerns that you might have. Please book an appointment today at S & H Tax Accountants, call us at 03 8759 5532 or email us at info@sahtax.com.au.

21/03/2023
Financially Savvy Women: 5 Strategies to Improve Your Financial Literacy

It is well established that financial literacy is a key component of financial independence. The more you know and understand about finance, the better equipped you are to make important decisions. Historically, women have had lower financial literacy scores than men for many reasons, including social norms, a lack of access to resources, and needing to focus on other issues.

That said, women are living longer than men and studies suggest they face systemic barriers that make it difficult for them to achieve the same level of economic security and financial literacy that men can obtain. This, in turn, makes it increasingly difficult to accumulate wealth, plan for retirement, and invest money, despite women’s increased involvement in higher education and in the workforce.

In recognition of International Women’s Day, here are some steps women can take to increase their financial literacy so they can make informed financial decisions.

What is financial literacy?

Financial literacy is an understanding of the value of money, how money works, and how to make money work for you.

Seek out information

Unfortunately, due to a lack of access to educational resources, a lack of financial resources and ongoing stereotypes about women’s ability to manage finances, women have often been shut out of financial conversations.

A great step in building your financial literacy is to start pursuing information and knowledge. There are many resources available online, including introductory personal finance courses, newsletters, podcasts, and websites that explain key concepts. Many of them are written for a general audience, so they’re designed for beginners to understand.

Find them, subscribe to them, and learn from them. Ask us for specific recommendations for your situation.

Find an advisor you trust

Women tend to view financial risks and investments differently than men do, and they tend to feel less confident in financial conversations. Find an advisor who respects you and your goals, and understands your unique financial needs. Make sure it’s someone you feel comfortable talking with and asking questions of. Ask them to explain everything to you, so you understand all the important terms, phrases, and strategies.

Don’t be tempted to think you’ll never understand finance. You can, and you will. You just need someone to explain it to you in a way that is meaningful to you. And you need someone who builds a strategy based on your financial responsibilities and pressures.

Build an emergency fund

Build an emergency fund of your own. Having an emergency savings account gives you some financial independence, in case of a crisis. Find a way to save up three to six months of expenses, so that if you lose your income or financial resources, you have some breathing space. The work you put into saving that money and managing the savings account will teach you about how money works.

Check your credit score

If you have any credit in your name, you have a credit score. Knowing it and understanding the role it plays in your finances is a massive step towards financial literacy. Your credit score affects your eligibility for loans, leases, credit cards, and mortgages. Utility companies might check your credit score when you open an account, and rental agencies take it into account when renting to you.

If your credit score is low, look into ways to build it up. There are many resources available to teach you about improving your credit score.

Continue educating yourself

You don’t have to become an expert in finance to be financially literate, but having a basic understanding will help you make better financial decisions, and it will help you get on the path to financial independence.

Commit yourself to continually learning about finances, or at least to always being involved in your financial decisions, so you have control over your future.

Final thoughts

Financial independence involves you having the money you need to live the lifestyle you want, but it also means being confident in making your own financial decisions. Financial literacy can give you some of the confidence you need to make important decisions.

If you need assistance understanding your finances, making sure that your information is correct or even building an emergency fund, S & H Tax Accountants can always help. We have friendly and experienced staff who are always willing to help and guide you to have the ability to be financially independent. Book in today at S & H Tax Accountants, call us at on 03 8759 5532 or you can email us on info@sahtax.com.au.

15/03/2023
Differences between active and passive investing and why they matter

When you invest your money, it’s a given that you’re willing to take on some amount of risk. There are strategies you can employ to ensure the risk you’re taking is minimal, but it still exists.

If you’re comfortable with a lot of risk to enjoy a greater reward, it’s important to understand that you could lose everything you put in. Of course, most of us aren’t putting our money on the line like that. There is a spectrum of opportunities between taking the maximum possible risk and not investing at all.

One of the ways you can do this is by choosing between active and passive investing. But what do these terms mean, and why does it matter? Read on to find out.

Active Investing

Active investing means remaining involved in the trading process by actively buying and selling your investments. The person managing your portfolio makes decisions concerning what you buy and sell, reacting to conditions in the market. They aim to get ahead of the market by making smart choices that will lead to bigger gains.

That may mean you are doing this work yourself or employing a portfolio manager’s services. Either way, someone is watching, and you’re putting your faith in their ability to spot opportunities to make significant gains quickly and move your money accordingly.

Passive Investing

On the other hand, passive investing is a strategy that aims to make gradual gains with few buying and selling moves. It’s cheaper because nobody is managing your portfolio to make short-term gains. Instead, you pursue a buy-and-hold strategy to hold your investment in a broad market index with a long-term gain on the horizon.

The goal isn’t to acquire gains through taking advantage of market fluctuations or hitting on lucky timing. Instead, you’re trying to match the market by creating a well-diversified portfolio that will perform well over time.

Which one earns the most money?

That depends on how long a time you’re looking at. Sometimes a portfolio manager may indeed spot a diamond in the rough and invest at the right time, and the investor will make remarkable gains quickly. Over time, however, passive investing tends to have larger gains.

In this case, the extra fees you would pay your portfolio manager are well worth it. However, it’s not a commonplace occurrence to strike it rich in the stock market.

Who is each type of investing for?

There is no rule about who should invest in what. However, a mix of active and passive investments would be worthwhile if that’s financially feasible for you.

Investors with a higher threshold for risk, such as those with extra funds, are typically more attracted to active investment because the potential gains are appealing and the additional fees associated with having a portfolio manager aren’t as significant for them.

For most of us, however, passive investments are the way to go. Their track record is proven, they are low-maintenance and straightforward, and they come with less stress.

Final Thoughts

Active and passive investment strategies both have a place in a healthy portfolio and can be undertaken by anyone looking to enter the market. A passive investment strategy will be beneficial if you wish to do something low-risk with a good chance of a healthy return.

Contact us to discuss which investment strategy is right for you.

If you need assistance with choosing which investment method, please contact S & H Tax Accountants. Book a consultation with us today, as we have experienced staff members who are able to help you in choosing between Active Investing or Passive Investing. Call today on 03 8759 5532 or email us on info@sahtax.com.au

15/03/2023
Business Update – 8 March 2023

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

Inflation is still a concern as the economy slowly recovers

Australia’s economy has recovered better than most from the COVID pandemic and is now 7% larger than before. But experts say that ongoing inflation is a continuing concern for everyday affordability.

Mental health is a major concern as the cost of living remains high

New quarterly figures from Suicide Prevention Australia show that 46% of Australians have reported an elevated distress level from cost of living pressures – a 5% rise on the December quarter.

Centrelink payments set to rise to help with the cost of living crisis

Beginning March 20, more than 4.7 million Australians will receive a cash boost to their social security payments to help them cope with the soaring cost of living.

Demand for EVs is stronger than ever

New data from FCAI shows that Australian EV demand soared in February 2023 as fully battery electric vehicles made up 6.8% of the overall new car market. The total number of EVs on Australian roads is approaching 80,000 and climbing higher.

Australian companies still shedding jobs as recession looms

Two Australian companies have laid off hundreds of staff members due to tough market conditions. Healius, a healthcare company, has cut 500 full-time roles since the Covid-19 pandemic began, and Thoughtworks, a software firm, has laid off 100 employees.

Queensland is considering legislation to keep solar panels out of landfills

Queensland is the biggest contributor of solar waste, and the potential products set to end up in the landfill is enormous – but the opportunity for recycling or repairing those panels is also massive. New legislation is hoping to prevent those panels from going to waste.

Affordable rent is becoming rarer and rarer

The number of properties listed for rent for less than $400 per week has almost halved over the last year, with Hobart and Darwin the exceptions.

New super tax rules only affect the wealthiest Australians

National Party leader David Littleproud says that raising the tax rate on superannuation balances above $3 million will affect “many mum and dad businesses, ” hoping to sell up for retirement. However, Federal Treasurer Jim Chalmers reiterated, “99.5% of Australians with super accounts will continue to receive the same rate.”

Toblerone is no longer Swiss enough to have the Matterhorn on its packaging

Mondelez, the US parent company of Toblerone, is moving some of its production to Slovakia. Because Switzerland has laws regulating the use of national symbols, the change could see the Matterhorn disappear from the packaging because it will no longer meet the country’s standard of ‘Swissness.’

Get in touch

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

If you are concerned regarding your financial position due the various elements such as the rise of inflation or your rent is increasing day by day, please feel free to contact S & H Tax Accountants. We are a Local Accounting Service in Cranbourne, that have experienced and friendly staff who will always help you in the best possible manner. So please book an appointment at S & H Tax Accountants today, call at 03 8759 5532 or email us at info@sahtax.com.au.

15/03/2023
Return on investment vs cost: how to weigh them when making business purchases

Deciding to purchase something to help your business is a big decision. It can be difficult to part with hard-earned money, especially in the early days. To understand the right time to invest by purchasing something for your business, you must calculate whether the Return on Investment (ROI) would be profitable.

The cost is the amount of money you spend making the purchase, plus any indirect costs (such as training costs) related to the purchase. The ROI is calculation of financial gains or benefits that you obtain as a result of that cost.

To determine ROI profitability, there is a simple formula you can use. If the purchase yields a positive return, it can be considered profitable.

However, if the purchase does not earn back the amount of money it costs, it would be considered a negative return on investment. Read on to learn more about how to weigh a potential return on your investment versus the cost.

Return on Investment Formula

Using a formula to calculate the ROI only offers a rough initial estimate. Other factors might come into play, such as future work you will get because of the new asset or unforeseen expenses. The formula to determine ROI is:

ROI = (Net Profit / Cost of Investment) x 100

Let’s see an example

Suppose you run an environmental surveying company. You have three employees who spend their time in the field gathering data and taking stock of how a proposed development project would affect the landscape. Vegetation, waterways, animals – everything is taken into consideration.

You have one client who would like you to perform a survey of very rugged terrain. They would pay $2500 if you could complete this work, but covering the landscape would be difficult and take time.

The only way to do it effectively would be to purchase a drone for $1000. The new equipment would make taking on this work possible and save many hours spent physically in the field. It would cost $200 to train each employee how to use the drone.

Additionally, having a drone would mean you could offer your new aerial surveying services to other clients who are undertaking more large-scale or complex projects.

Calculating the ROI of obtaining new equipment for this project

You would first tally your total expenses and expected revenue to decide whether this purchase would be profitable.

Expected Revenue = $2500

Total Expenses = $1000 + ($200 x 3) = $1600

You would then subtract the expenses from your expected revenue to determine the net profit.

Net Profit = $2500 – $1600 = $900

To calculate the expected return on investment, you would divide the net profit by the cost of the investment and multiply that number by 100.

ROI = ($900 / $1600) x 100 = 56.25%

Your return on investment would be 56.25%, which is a positive return. Not only that, but your new equipment may allow you to gain more work in the future, making your ROI even better.

What happens when you don’t put your investment to work

What if you purchase the drone but find the learning curve overwhelming, and it winds up collecting dust in a corner?

In this case, your client may not hire you, or the hours required to do the work on foot may make taking on the project cost prohibitive. This would result in a negative return on investment, especially if you have already performed the employee training. Your ROI would be zero, plus you would be down $1600 from the initial expense and training.

Final thoughts

While the idea of making a large purchase to benefit your business can be daunting, there are often significant rewards that come with taking the plunge. Do your research, calculate if the investment is worth it, and then move ahead confidently. If you calculate correctly, you will find that your purchase takes your business to new heights.

If you need any assistance calculating the return on your investment, you can always contact S & H Tax Accountants. We have experienced staff, who can help direct your business in the right direction. Book an appointment today at S & H Tax Accountants, you can call us on 03 8759 5532 or email us on info@sahtax.com.au

08/03/2023
6 tips to paying down your personal debt in 2023

2023 is expensive. The cost of living is higher than ever, interest rates keep rising, and it keeps getting harder to stay afloat, let alone get ahead. As a result, carrying debt has become commonplace. But, with the challenges of the past few years, many of us have more debt than we’re comfortable with.

How do you get ahead while you’re still trying to catch up?

Here are some tips on how to pay down your personal debt this year.

1. Take stock of your debt

There’s no way to fully understand your situation if you don’t take the time to identify everything you owe. Because looking at your monetary situation can be stressful, many people choose to ignore their financial statements and just keep a rough estimate of how much they think they owe.

This is a mistake. Turning a blind eye to the numbers won’t change them, and neglecting to look at your debts regularly will make it easier to continue spending.

2. Identify which debt is costing you the most

Between a mortgage, outstanding loans, credit card debt, car payments, lines of credit, and many more forms of debt, some will cost you more than others to maintain. Once you have a clear picture of everything you owe, determine the interest rate on each debt.

This way, you can plan to pay down the most expensive debt you have first. Doing so will save you as much interest as possible, meaning that you can pay down your debt faster as time goes on. So make your money work as hard as it can by paying down that higher interest debt.

3. Consider consolidating your debt

While working with a debt consolidator can temporarily hurt your credit score, it might be worth it in the long run. It can be extremely stressful to look at multiple sources of debt, and it’s easy to be overwhelmed by it all. This often leads to missed payments, which also hurts your credit score.

By consolidating your debt, you end up with one regular payment, which is much easier to manage. The temporary credit score hit can be well worth it if you have a complex debt situation or simply feel overwhelmed.

4. Set a budget and save

Once you have figured out your repayment strategy, make a plan so you’re not working against yourself. Look at the actual cash you bring each month and allocate those funds. Set aside money for living expenses, entertainment, and your existing debt payments.

If you have any leftover money, start putting that in a savings account. You should work towards setting aside 3-6 months of living expenses so that if something unexpected happens, you have the money to deal with it and don’t have to rely on credit to help yourself.

5. Adjust your credit card habits

Credit cards come with many perks, but they’re only worthwhile if you can pay the amount you’re spending on them. Doing so responsibly builds your credit score and allows you to take advantage of the benefits of being a cardholder.

If you don’t have the actual money to pay your credit card off each month, tuck it away somewhere so you’re not tempted to use it. It’s
easier than ever to tap your card, but without the funds to back it up, you’ll find yourself back in debt before you know it.

6. Increase your income

Nobody wants to hear that they have to work more, but if after looking at your financial situation, you find that there simply isn’t enough money coming in to pay for what you’ve already spent, you will likely need to find a side hustle. The only other option is to decrease your living expenses, which is tough to do in 2023.

Final thoughts

Paying down your personal debt isn’t anyone’s idea of a good time, but it’s essential. The debt isn’t going to go away on its own. Once you start seeing improvements, you will feel encouraged to continue until it’s eliminated. Call your personal accountant to devise a strategy to pay down your debt this year.

If you need assistance managing your accounts or need to formulate a strategy to minimise your debt, please contact S&H Tax Accountants. We are a local Accounting Service that provide all tax services as well as bookkeeping. We have experienced and friendly tax agents that will do their best to provide you with the best outcome. Book an appointment today at S & H Tax Accountants, you can call us on 03 8759 5532 or email us at info@sahtax.com.au

02/03/2023
Business Update – 22 February 2023

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

What to do if you can no longer afford your mortgage

As rates continue to rise, many Australians find themselves unable to make payments on their home. Learn what to do if your mortgage payment obligations are becoming impossible to meet.

Woolworths expands controversial surveillance tool

Woolworths is expanding the rollout of a controversial AI technology that helps reduce misscans at self-serve checkouts at more stores in NSW, Victoria and Queensland.

Changes coming to superannuation rules

Treasurer Jim Chalmers is proposing an “end to the super wars” with a new law that would see an end to early access to funds.

Chinese airlines flying through Russia have an unfair advantage

Since the Russian invasion of Ukraine nearly a year ago, European, Canadian, and U.S. airlines have avoided Russian airspace, making long-haul routes take longer and cost more. As China reopens and flies directly through Russia, other international airlines say they have a leg up.

No more SMS two-factor authentication on Twitter unless you pay

Twitter warned non-Twitter Blue users using SMS 2FA authentication that they have 30 days to switch to another 2FA method. Find out how to keep your account secure here.

Everyone’s scrambling to get on board with AI

With the release of ChatGPT in November, it seems that everyone’s talking about the potential of AI. Everyone from students to CEOs is trying to keep up as we figure out how this new technology fits into our lives.

Meta follows in the footsteps of Twitter

Mark Zuckerburg announced that Meta is launching a pay-for-verification subscription service called Meta Verified for Facebook and Instagram, much like Twitter Blue. The launch begins in Australia and New Zealand this week, with more countries to follow.

Bitcoin is booming, but why?

Everyone’s watching as Bitcoin continues to make steady gains in 2023. But will it climb back to $20K? Forbes has some ideas about why the price of crypto is suddenly climbing again.

Get in touch

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

If you need any assistance, managing your business’s accounts, please contact S & H Accountants. We are a local Accounting Service, that specializes in Bookkeeping and all Tax services. We have experienced and friendly staff, that will provide you with the best service possible.

01/03/2023
7 ways your trades business can market its services

When you go into business as a tradie, your focus is often on performing your trade to the best of your ability – as it should be. With time, the quality of your work will speak for itself, which is the most valuable testimonial of all.

However, any tradie accountant or bookkeeper will tell you there’s more to it these days. While your good reputation preceding you is undoubtedly essential, there are a few other ways that you’ll want to market your services to ensure that you have a steady stream of work. Read on to learn 7 ways you can market your trades business.

1. Appear in directories

Since setting up a new business is usually a digital experience these days, it’s easy to overlook the step of making sure you appear on a physical list where people can find you. Ensure your business is on whatever relevant trade directories run in your area.

Additionally, make sure you appear in the online equivalent. Yelp, Google, and Facebook each have business directories. And let’s not forget the old standby: the phone book. Yes, they still exist! They are valuable resources for some people looking to hire a tradie.

2. Have a website

Some website-building platforms are very user-friendly, but if you feel that’s beyond you, hire someone to do it. Almost everyone does an online search before they hire a business, and not having a website is like waving a giant flag that says you’re out of touch, old-fashioned, or possibly not legitimate. Meanwhile, having a website reassures people that you are who you say you are, and can provide the services they need.

3. Leverage social media

Nothing is stronger than a good referral, and people naturally turn to social media to find out what your customers are saying if they don’t know someone who’s used your services personally.

Keep your social media presence strong and engaged. If you’re uncomfortable doing this, hire someone to do it for you. It’s critical when doing business today.

4. Offer referral promotions

When you wind up with a happy customer, provide them with an easy way to speak positively about you and suggest you to their friends. A card or a thank-you email with a discount code will do the trick.

5. Run ads

Tradie marketing can be tricky because, typically, your services aren’t always needed. But when you are needed, it’s usually urgent.

If your trades business doesn’t appear on the first page of Google, it might be worth your while to take out an online ad. That way, when someone searches for a tradie in your area, your business will appear next to their search. The only way someone can click on your information is if they see it – so make sure they have that chance, whether through an organic search or a paid ad.

6. Make yourself visible in the real world

Make sure your business’s name and logo appear on any equipment you use and make clothes for your team to wear when they’re out and about in the world.

It may be smaller than a billboard, but driving and walking around letting people know who you are, what you do, and how to contact you will go a long way to market your trades business. If people become familiar with your business name, they’ll be more likely to turn to you when they need you.

7. Good old-fashioned snail mail

Believe it or not, print campaigns are alive and well! If you operate a trades business whose services are sorely needed in a specific area, consider making a print ad to pop into mailboxes. A word of warning, though – make sure your print ad is relevant, valuable, and eye-catching. You don’t want to spend money producing something that will immediately go to the recycling bin.

Final Thoughts

Marketing for trades businesses is a lot like any other type of business in that you have to understand your audience and their needs and show up when they’re looking for you. With some research and proactive planning, you can be sure your business will appear in the right place and at the right time.

Need help growing your business? Get in touch with our specialists today.

If you need accounting services, feel free to contact S & H Tax Accountants, we would be more then happy to help. We are a local accounting service in Cranbourne, that provide excellent services for any type of trade services. We have excellent staff members and tax agents who are always looking to give you the best service.

22/02/2023
Business Update – 15 February 2023

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

RBA governor’s statement met with confusion

Philip Lowe will appear before the senate this week to answer for the RBA’s rate hike strategy. Last week, he said that further interest rate hikes would be necessary to tame inflation, leaving observers confused as it seems to have already peaked.

Faster internet is on the way

Millions of Australians will benefit from the government’s $2.4 billion funding boost to the NBN.

ATO seeks to boost the use of eInvoicing

eInvoicing is a digital system that allows businesses to send and receive invoices through their accounting software, eliminating the need for physical documents, scanned papers, or PDFs. However, less than 1% of businesses have adopted it.

Households spending power decreased due to inflation

Middle-income households are major drivers of the nation’s economy, spending over $1 trillion annually. However, the cost of living has increased significantly, increasing spending on necessities by 23 percent. That means less money to spend on anything else.

Homeownership becomes less likely the younger you are

Most Australians spend much of their working lives pursuing home ownership. Yet, many millennials still pay sky-high rent for small rooms. Owning anything has become further out of reach for each generation.

Real estate auctions pick up again

After a severe lull following the pandemic, auction volumes are gaining steam once more. The increase is attributed to the end of a holiday lull and stabilising real estate prices.

Money laundering is alive and well in Australia

Due to a lack of scrutiny and regulation in some professions, Australia is a facilitator for money laundering. Real estate is a popular vehicle for the shadowy practice, with few government regulations in place to prevent it.

The government seeks SME thoughts on payment times

Small Business Minister Julie Collins is urging small and medium businesses to share their thoughts for a government review regarding accelerating payment times between major companies and their suppliers.

Disney cutting 7000 jobs

Reinstalled Chief Executive Bob Iger is seeking to cut $5.5 billion USD from its annual costs to drive profits. He is also under pressure to make Disney+ profitable and find new ways to monetise the Disney catalogue.

UNSW psychiatry professor seeks to redefine burnout

Gordon Parker, the founder of the Black Dog Institute, argues that burnout is not just a syndrome resulting from chronic workplace stress that has not been successfully managed. Instead, it’s a more wide-ranging condition that must be redefined to learn how to prevent it.

Get in touch

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

15/02/2023
What is inflation and how does it affect my savings?

You can’t get through the news these days without hearing about inflation and how rapidly it’s increasing. Rates were generally low for quite some time and we all got used to it. Suddenly, however, everyone is getting squeezed by inflationary pressure.

But what exactly is inflation, and how does it affect the money you have in the bank? Read on to learn more about what it is and what it means for your savings.

What is inflation?

Inflation is an increase in prices. Everything from a can of soup to a home costs more to buy. Of course, not all goods get more expensive at the same rate, and there are many reasons why prices go up.

Year after year, things are more expensive than they were before. You’ll see this in action if you look at an old advertisement from 100 years ago. Things that used to cost a bit of change now cost much more.

This is purposeful to some degree. Economists generally agree that a target rate of 2% annually is desirable to keep balance in the economy and promote growth. This rate allows central banks to lower interest rates to stimulate the economy if necessary without putting too much of a burden on the consumer.

What causes inflation?

The factors that cause inflation are varied and somewhat complex. There are a few different types of inflation as well. Supply and demand, production costs, worker shortages, printing money, and rising wages – all of these factors and more contribute to inflation.

When the entire picture is considered, you can see why understanding any given inflation situation becomes a matter of healthy debate. While it’s clear that we as individuals have little control over inflation, we all want to know what it means for our bank accounts.

Buying Power

Any time your savings grow slower than the inflation rate, you will effectively lose money. Put simply, the money in your savings account must earn a higher interest rate than the inflation rate to continue to hold the same value.

Currently, the global inflation rate is a few percentage points higher than the average savings account pays in interest. So while you have the same dollar amount in your account, that money now buys less than it could when prices were lower.

The “Rule of 72”

One interesting way of estimating how the inflation rate will affect your money is known as the Rule of 72. While it’s only to be used as a general estimate, it can help you imagine what will happen to your money if rates continue at their current level.

To determine how long your savings will take to double, take 72 and divide it by your annual interest rate. For example, if you hold $100 in a savings account with a 2.5% interest rate, it would take 28.8 years for that account to reach a balance of $200.

You can also use the rule to calculate how quickly these new higher prices would halve the value of your savings. Take 72 and divide it by the annual rate of inflation. If it’s currently 6.5%, for example, it would take just over 11 years for your $100 to be worth $50.

You can see why an inflation rate higher than the interest you’re earning is problematic. While your actual dollar amount will continue to rise, inflation will undercut those earnings by making each dollar worth less.

Remember that this is only a general estimation and doesn’t consider many factors. For example, it’s unlikely that the inflation rate would remain the same for 11 years or anywhere close to that. The Rule of 72 is only meant to illustrate the pace at which your money changes – to help understand the gap between the two rates.

Final thoughts

It’s easy to get caught up in the talk about inflation and how it devalues your money, but try to remain calm. Remember that while prices may never go down to what they once were, periods of high inflation have happened before, and they will happen again. However, they don’t last forever, and by continuing to make educated choices about where to invest your money, you will successfully weather the storm.[gravity form id=”3″ title=”true” description=”false”]

If you have concerns about the rising inflation and how this would effect you, you can always talk to an accountant at S & H Tax Accountants, we have experienced and friendly staff who would love to help you. Book an appointment today at S & H Tax Accountants, email us on info@sahtax.com.au or call us on 03 8759 5532

30/01/2023
7 tips to help your small business adjust for inflation

Forex Trade Graph Chart Concept

Inflation has ballooned worldwide in recent months, and there’s no question that small businesses are feeling the pinch. Supplies cost more, employees are hard to find, and your profits are shrinking.

It’s undoubtedly challenging, but you can weather the storm with the following tips.

1. Study your data

Your numbers are always helpful, but in times of rapid inflation, you’ll be especially thankful that you keep a nice, clean set of books. Analyze your data to learn what products and services make you the most money, which ones cost the most to offer, and to identify where you can save.

2. Cut expenses

Now that you’ve identified where you can save money, go ahead and cut what you can. It’s nice to be able to offer many products and services, but
this is a time to tighten your belt.

Focus on the items that keep your business as healthy as possible, and ditch the rest – at least for the time being. It’s okay to simplify, especially when times are tough.

3. Adjust your prices

Nobody likes to raise their prices, but the reality is you likely have no choice. Keeping prices the same would indeed be wonderful for your customers or clients. However, if you’re offering your products or services at the same prices as before inflation started to climb rapidly, you’re absorbing the cost.

When you dig into your data, you may find that some things you offer actually cost you a lot of money. That’s not a sustainable business model – raise your prices to keep yourself afloat, or find items that cost less for you to sell.

4. Simplify and automate

If aspects of your business take a long time to complete, see if there’s anything you can do to reduce those hours. Switching to cloud accounting or inventory management software would be excellent examples, as doing so would allow you to use your valuable time elsewhere.

Identify where you can simplify and automate, and then do it. Then, even when inflation comes back under control, you will undoubtedly find that the saved time helps.

5. Focus on your customer

Remember that your customers are keeping you in business and experiencing inflation in their lives too – both at home and in their own businesses.

Keep the lines of communication clear and open, especially if you’re going to alter your offerings or raise your prices. It’s a lot easier to retain loyal customers than it is to gain new ones, so make sure they know how much you value them and communicate openly to maintain their trust and loyalty.

6. Consider your employees

Good help is hard to find. Those who work for you are feeling the pinch as well. While it’s essential to automate what you can, you must consider the consequences it will have on your staff. Identify how you can better use their talents if parts of their roles become automated.

7. Remember, this will pass

Inflation has happened before and will undoubtedly happen again after this. Historically, periods of inflation last anywhere from a few months to several years. One thing, however, must be remembered: all periods of inflation end.

Final thoughts

While inflation is difficult for small businesses, there are steps you can take to reduce its impact. Focus on what you can control and face what you can’t with confidence and creativity. With some planning, clear communication, and smart adjustments, you will come out of this inflationary period intact.

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17/01/2023
8 tips for staying in budget this holiday season

The holidays are officially upon us, and chances are you’re starting to feel a bit spendy. It’s only natural. We want to spread that feeling of good cheer around by buying presents for those we love.

There’s nothing wrong with that, but keep your pocketbook in mind. Nothing kills the joy of the season like a giant credit card bill come January. Keep your spending in check by following these tips.

1. Make a budget early

This might seem obvious, but there’s no way to stick to a budget if you don’t make one.

The very first thing you must do to keep spending in check is plan ahead. Make a list of who needs a gift. Then brainstorm what they might like and what’s realistic for you to get. Do it early so that you have a spending plan in place.

2. Wait for sales

Since you’ve done all that terrific planning ahead, you now have the luxury of waiting for a sale. Keep a lookout when shopping in person too, since you already know what the items should cost.

3. Create a gift

You’re probably imagining the handmade gems you created for loved ones as a child, but fear not. You don’t have to be crafty to DIY a gift. Search online for inspiration.

A homemade gift could be something to eat, or a service. Offer to look after children so parents can get a night out, for example.

The same advice you heard as a child rings true now: a handmade gift almost always means more. There are lots of great ideas out there that don’t cost you a thing, but would mean the world to the recipient.

4. Thrift

Consignment and thrift shops are full of wonders. It’s not unusual to find items that are still in their original packaging. Even better, you might stumble upon something that’s truly unique.

Just be sure to check any items to make sure they’re in good condition and that they have all the pieces.

5. Share giving

If you know that the perfect gift for someone is a bigger ticket item, consider joining forces. Team up with a sibling or a friend to tackle the larger expense together. It will mean a lot to the recipient to get what they really wanted, and to know that you worked together to make it happen.

6. You actually can regift

This one is a touchy subject for some, but it truly is okay to regift. If you have something that you haven’t used and it’s still in its original packaging, feel free to pass it along. You free up space in your home, and they receive something they need or want. It also produces zero waste.

Just make sure it’s in mint condition – and no matter what you do, don’t give it to the person who gave it to you!

7. Bring cash

When you do head out to the shops to pick up your gifts, bring the amount of cash left in your budget.

Leaving the credit card at home will make it impossible to overspend. It’s also easier to stay in check when you’re parting with physical money instead of tapping away with your card.

8. Remember the spirit of the holiday

It’s an old saying, but it’s true. The reason we’re celebrating doesn’t have anything to do with material gifts. Ask anyone what they remember about a holiday and it rarely includes what they received. People remember who they spent the day with and the memorable events that happened.

Final thoughts

With a bit of planning ahead you can stick to a budget this holiday season and still delight your family and friends. Take it a step further – see if you can come in under budget. With the cost of living higher than ever, that would be a truly wonderful gift to yourself. If you have any questions then feel free to call S & H Tax Accountants Cranbourne. S & H tax Accountants offer services to small business as an accountants. We are experienced advisors in Cranbourne and Accountants in Malvern East area.

22/11/2022
Business Update – 16 November 2022

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

ASX slides as other world markets try to find their footing

The ASX was looking good at the start of the week, but with the US wobbling around a recession and crypto crashing, all gains were erased. Stocks dropped to a low not seen since the start of the pandemic panic.

Chaos looms at Aussie ports as workers locked out

The country’s largest tugboat operator, Svitzer, is in an ongoing dispute with the union. The result is that crews have been locked out of ports indefinitely.

Commonwealth, ANZ, and Westpac ordered to pay up

Up to one million customers could be eligible for compensation from the big banks after a major class action win. The lawsuit was over consumer credit insurance which customers were sold while taking out personal loans and credit cards.

VOLY quietly deletes social media and closes app

Australian start-up grocery delivery service VOLY seems to have stopped operations. When users log in to the app there is a message stating they are closed. Most of their social media accounts have been taken offline.

Mass layoffs at Amazon starting as soon as this week

It seems that none of the large corporations are immune to current economic conditions, with Amazon announcing they will be laying off about 10,000 workers across departments.

Jeff Bezos announces he will give away most of his fortune worth over US$124 billion

He started by awarding Dolly Parton, who is well-known for funding worthy causes, $100 million to donate as she sees fit. A fund to fight climate change is also in the works.

No more free lunches at Twitter

Elon Musk said that the average meal cost US$400 per person – a claim that the former head of the meal program refuted on Twitter. The cut comes days after Musk scrapped Twitter’s work from home policy and mandated employees to return to the office for at least 40 hours a week.

Funds vanish from crypto exchange

FTX, one of the world’s largest cryptocurrency exchanges, filed for bankruptcy on Friday. Hours later, US$477 million was missing from the exchange. A probe is underway.

Retirees defy ageism by returning to work

With many businesses experiencing a severe labour shortage, some creative business owners are reaching out specifically to older workers to help fill the gaps. The result has proven to be a win for both parties.

Get in touch

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

The post Business Update – 16 November 2022 appeared first on ausmasternew.staging.bizinkonline.com.

21/11/2022
Employee vs contractor – what you need to know

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

When you have an employee, you must withhold income tax as well as report on additional benefits. Contractors generally look after their own tax obligations.

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

The simplest way to remember is:

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

But how can you be sure that you’ve got an employee or a contractor on your hands, especially with remote work blurring the lines between employees and contractors?

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

There are six factors to consider:

1. Ability to subcontract or delegate

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

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

2. Basis of payment

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

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

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

3. Equipment, tools, and other assets

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

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

4. Commercial risks

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

A contractor assumes the commercial risk. They are responsible for fixing any mistakes on their own time. This extra work would fall under the umbrella of the terms set at the beginning of the project. Your business does not have to pay for any extra time taken or materials used, unless otherwise specified in the contract.

5. Control over the work

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

Contractors are not subject to the same rules. They decide when and how the work is done, so long as it meets the obligations laid out in the contract. For example, a contractor could choose to work three 10-hour days to complete a job, rather than working four 8-hour days.

6. Independence

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

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

Final thoughts

It can be confusing to make the determination between an employee and contractor, but it’s important that you do so in order to meet your tax obligations and play by the rules. Contact us to learn more about your tax obligations for employees and contractors. If you have any questions then feel free to call S & H Tax Accountants Cranbourne. S & H tax Accountants offer services to small business as an accountants. We are experienced advisors in Cranbourne and Accountants in Malvern East area. Book an appointment with S & H Accountants today! Call us on 03 8759 5532 or you can email us on info@sahtax.com.au

14/11/2022
Employee vs contractor – what you need to know in AU

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

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

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

The simplest way to remember is:

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

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

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

There are six factors to consider:

1. Ability to subcontract or delegate

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

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

2. Basis of payment

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

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

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

3. Equipment, tools, and other assets

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

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

4. Commercial risks

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

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

5. Control over the work

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

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

6. Independence

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

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

Final thoughts

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

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

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

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

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

You’re overwhelmed and stressed

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

You’re spending time doing things you hate

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

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

Quality of work has gone down

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

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

No time to grow

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

No personal time

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

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

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

Final thoughts

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

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

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

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

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

Time Blocking

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

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

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

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

Time Boxing

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

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

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

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

Pomodoro

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

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

Task Batching

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

Day Theming

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

The 80/20 Rule

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

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

Deep Work

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

Final thoughts

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

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

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

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

1. Give the project the time it needs

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

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

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

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

2. Map out integrations

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

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

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

3. Adjust the platform to your needs

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

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

4. Don’t bring over bad data

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

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

5. Test, test, test

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

Final thoughts

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

18/10/2022
Business Update – 27 September 2022

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

Permit and dining fees set to return to Melbourne

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

World stocks led down by Wall Street

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

Many iconic Aussie brands are being sold to foreign companies

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

It’s the right time to buy a mansion

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

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

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

Qantas restores vegetarian options after backlash

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

Did you notice our recent mining boom?

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

How to save money at the bowser

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

Cryptocurrency investors falling victim to fake websites

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

Peeled mandarin orange for sale

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

Get in touch

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

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

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

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

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

It’s for everyone

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

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

Your priorities might change

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

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

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

It’s not just for after your life

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

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

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

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

Final thoughts

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

24/09/2022