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Understanding different types of insurance

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

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

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

Life Insurance

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

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

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

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

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

Income Protection

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

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

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

Illness insurance

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

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

Injury insurance

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

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

Long-term care insurance

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

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

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

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

15/09/2022
Business Update – 13 September 2022

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

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

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

Public holiday may hurt small businesses, critics say

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

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

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

Government seeks to ease housing crisis with new law

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

Aussies struggling with rental housing hikes

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

Calls to extend fuel excise cut go unanswered

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

How the government could help small businesses as inflation rates rise

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

Construction growth falls in June quarter

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

How China’s economy affects Australia

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

Money will change eventually, but not anytime soon

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

Get in touch

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

14/09/2022
When to raise your prices

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

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

1. You have a loyal customer base

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

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

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

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

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

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

3. You’ve added value

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

4. Your competitors are charging more than you

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

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

5. Your close rate is over 80%

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

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

Final Thoughts

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

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

12/09/2022
Setting and Achieving Financial Goals

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

Here are some steps to setting your financial goals.

1. Be specific with what you want

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

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

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

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

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

3. Determine your assets and debts

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

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

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

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

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

Final thoughts

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

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

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

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

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

Wages

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

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

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

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

Salary

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

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

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

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

Commission

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

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

All earnings made by commission are counted as taxable income.

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

Bonuses

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

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

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

Final Thoughts

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

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

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

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

1. Free up your time

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

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

2. Reduce errors

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

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

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

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

3. Reduce costs

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

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

4. Maintain compliance

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

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

5. Eliminate headaches

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

Final Thoughts

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

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

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

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

Can Customer Service Handle Additional Requests?

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

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

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

Production and stock

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

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

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

Packaging and delivery

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

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

Prosperity Favours the Prepared

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

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

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

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

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

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

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

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

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

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

Save cash with a business owner’s policy

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

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

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

Final tips

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

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

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

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

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

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

China pleased by recent deal with Australia in its own currency

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

Rent reaches a new high

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

ANZ to acquire Suncorp’s bank

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

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

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

The surprising way people are making ends meet

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

Air travellers endure hectic travel weekend

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

Crypto company owes its users billions after crash

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

Senior has to drive 250km to keep welfare benefits

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

Aussie creativity on full display at tax time

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

Get in touch

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

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

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

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

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

What is lifestyle planning?

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

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

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

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

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

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

Get started with your lifestyle plan

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

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

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

Think about the things that are most important to you.

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

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

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

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

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

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

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

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

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

1. Think of your website as your storefront

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

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

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

2. Define who you’re trying to attract

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

3. Showcase what makes you different from the rest

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

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

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

4. Show your personality

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

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

5. Show off your team

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

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

6. Use video

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

Final thoughts

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

17/07/2022
Business Update – 12 July 2022

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

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

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

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

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

Twitter shares tumble amid broken deal

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

Interest rate hikes threaten construction sector

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

Rental and social housing crisis reaches the bush

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

ACMA code targets scam SMS messages

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

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

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

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

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

Food price increases affect every aisle in the supermarket

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

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

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

Get in touch

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

12/07/2022
How to respond effectively to complaints

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

Here are 6 tips to effectively responding to complaints:

1. Remember that this is not an argument

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

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

2. Listen

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

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

3. Repeat what you heard

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

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

4. Acknowledge

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

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

5. Offer a solution

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

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

6. Follow up

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

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

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

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

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

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

1.They have clients that are similar to you

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

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

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

2.They come with a network of advisors

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

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

3.They keep you focused on your goals

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

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

4.They take the time to get to know you

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

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

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

07/07/2022
Business Update – 6 July 2022

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

How to keep your tax bill low

With tax time upon us, here are 8 simple ways you can maximise your refund or keep your bill as small as possible.

It’s a good time to catch up on your taxes

It’s required to lodge your tax return every year, and most of us do. Those who don’t, however, could face up to $9000 in penalties or even jail time.

Interest rates rose again this week

The Reserve Bank of Australia triggered another interest rate rise this week lifting the official cash rate to 1.35% in a bid to deal with inflation.

Ingredient cost comparison at the big 3 supermarkets

The humble stir fry is one of the easiest, cheapest meals you can put on the table – or at least it was. With the price of fresh produce skyrocketing, many Australians now find the cost to whip up a stir fry ‘depressing.’

Reserve Bank pushes for more frequent inflation data after being laughed at

At a financial forum this month in Switzerland, world bankers laughed at Governor Phillip Lowe when the RBA chief lamented the fact his team doesn‘t receive monthly statistics like central banks in Europe and the US.

Many Aussies received pay rises last week

Millions of workers received a pay bump on Friday when the Fair Work Commission’s annual wage review came into effect.

Thousands of Millennials are back to living back at home

The latest census data reveals that the number of Millennials living at home has soared by thousands amid the pandemic, insecure work and an increasingly unaffordable rental market.

Analyst predicts Australian economy is months from ‘bottoming out’

Australian analyst Aryan Norozi of Barrenjoey predicts retailers are in the early stages of a years-long decline. He stressed that no two economic cycles are exactly alike, however.

House prices fall for the second month in a row

Rising interest rates are taking their toll, as house prices continued to decline this month. Falls are expected to accelerate in the coming months.

Hot chip prices to skyrocket

WA Chip, the last remaining commercial chip manufacturer and supplier to many of WA’s shops, warned customers that prices will be going up after their gas bill increased to a whopping $1,000,000 last year.

Get in touch

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

06/07/2022
4 Reasons to Switch to Cloud-based Accounting

If you’ve been considering making the move to a cloud-based accounting system, you’re not alone. Cloud technology has impacted many business functions, including making managing financial aspects of your business easier and more efficient.

Cloud-based accounting moves your accounting from being hosted on your computer’s hard drive to an online platform. Cloud-based platforms like QuickBooks and Xero offer important features that save you time and money, freeing you up to focus on other important business activities.

Here are 4 reasons to switch to a cloud-based accounting system.

1. Efficient invoicing

If your business relies heavily on invoicing, an online accounting system like QuickBooks or Xero makes invoicing incredibly efficient. You can email invoices to clients directly through your software and track how long it’s been since the invoice went out.

Clients pay you through a link attached to the invoice, making the payment process easier for them, which increases the likelihood they’ll pay you sooner. If they pay through the system, your platform will mark the invoice as paid automatically. If their payment is late, the system alerts you.

Further, you can set up your software to send automatic reminders about late payments. Taxes are automatically calculated for you and you can set up recurring invoices and retainers to further automate your invoicing.

2. Paperless accounting

Managing your accounting through a cloud-based system enables you to move away from paper accounting. You don’t have to worry about where or how to store years of paperwork and files because everything is securely stored in the cloud. Likewise, you don’t have to go through boxes of files to find a receipt from two years ago, you can simply access the information through your computer.

It’s easy for you to share your records with your accountant, bookkeeper or anyone else who may need to collaborate on your finances. You don’t have to mail them physical copies of your financial transactions and statements, you can email them the information or give them access to your software.

3. Accessibility

With a cloud-based accounting system like QuickBooks or Xero, you don’t have to be in the office in front of your computer to access your financial information. You can see your ledgers and reports from anywhere, on any device. If you want to work from home one day, you can log in to your software from your smartphone if you want, to send invoices, check your reports, or manage expenses.

4. Accurate reporting

An important component of running your own business is reporting. Accurate reporting enables you to better manage your finances and understand your profitability. It’s vital for making informed decisions about your business.

Cloud accounting provides you with accurate reporting at the click of a button. Using systems like QuickBooks or Xero you can easily access profitability reports, income and expense reports and year-end reports.

The information is available to you automatically–you don’t have to spend hours in front of a calculator going through every invoice to see your numbers. Simply by keeping your records in a cloud-based system, you can easily generate accurate reports.

Final thoughts

If you’re hosting your accounting information on your computer hard drive, it’s worth looking into cloud-based accounting to see if you can benefit from the switch. Given the ease of invoicing and accurate record keeping, combined with the accessibility of a paperless system, you may find cloud-based accounting software is the right system for you.

S & H Tax Accountants pride themselves in being efficient when it comes to our administrative skills or our accounting skills. However, we understand that not everyone is able to use these types of software, therefore S & H Tax Accountants are here to assist you. As well as all taxation services, we also provide bookkeeping services. Book in a consultation today with one of our accountants, email us at info@sahtax.com.au or you can call us at 03 8759 5532.

02/07/2022
8 ways to run more effective meetings

Meetings are often a source of contention in the workplace. Have too few meetings and people feel disconnected. Have too many meetings and people feel that their work is being interrupted. Meetings that are too short might not accomplish enough, while those that are too long lose people’s attention. With some planning and preparation, you can easily turn your meetings into a productive, pleasant experience. Your attendees will come away feeling good and looking forward to the next one.

Define the goal

Meetings take time out of everyone’s day so make sure everyone knows the point of getting together. That way, they aren’t left wondering what the purpose of the meeting is, and they’ll feel more prepared when everyone gets together. Defining the goal can also help you stay on track, meaning you’ll be more efficient at getting things done.

Choose participants with diverse perspectives

The purpose of a meeting is to get everyone on the same page. But it’s also an effective way for you to quickly learn things that you may not have considered about the project. Have a good mix of different voices at the table to get the most out of everyone’s time.

Before inviting a person to the meeting, ask if it’s absolutely necessary they attend. This isn’t to exclude people, it’s to protect their time. If their expertise or role doesn’t match the topics being discussed, don’t invite them. They’ll value meetings much more if they’re only included in sessions that their insights would be useful for.

Create an agenda and send calendar invites

This may seem basic, but it can’t be stressed enough. Lay out the timeline for your meeting, break down how long you’ll spend on each topic – and then stick to it! Keep people on track by allotting a certain amount of time for discussion and stepping in if the talk gets unfocused.

Send out the agenda to your attendees in a calendar invite. This lets everyone know how the meeting will go, and gives you a chance to see who will be there. It also gives them the opportunity to decline to attend if they see that their presence isn’t necessary based on the agenda.

Define roles and leaders

One of the quickest ways you can lose attention is if someone doesn’t understand why they’re there. Make sure that everyone knows why they’re part of the meeting, and what their role is on the team.

Create a safe collaboration space

This looks different across businesses, but everyone has to feel comfortable enough to contribute. Start the meeting with some ground rules. This helps everyone understand how and when to jump in, and ensures that you won’t have a few attendees dominating the conversation.

Never use a meeting to publicly blame or shame. Use positive reinforcement to showcase achievements. Don’t use the opportunity to highlight shortcomings.

Additionally, make sure the room is physically comfortable. Good lighting and airflow, as well as refreshments, go a long way to put people at ease.

Finally, ask for feedback. This shows your group that the meeting is a two-way street. Your goal is collaboration and team improvement.

Only have meetings that are necessary

We’ve all seen the memes. The last thing you want to hear as your attendees leave the meeting are whispers of “could’ve been an email” as they roll their eyes. If the purpose of your meeting is to download information, save everyone the trouble – just send an email!

A meeting is an opportunity to exchange ideas and information quickly among a group. It’s about the perspectives you’re bringing together and the importance of those perspectives being shared with everyone at the same time. If something could be shared in another manner, use that. Save meetings for topics and issues that are important.

Engage equally to ensure participation

With hybrid work here to stay, many attendees will be joining virtually. It’s a tricky balance, but make sure you’re engaging with both groups.

Additionally, don’t assume that because someone is quiet they have nothing to share. They might be hesitant to speak up or not want to interrupt anyone. Before you move on from a topic, address participants individually and ask if they have any thoughts they’d like to share or questions to ask.

End with clear actions, owners, and timelines

Don’t let anybody leave questioning the point of the meeting or what they’re supposed to do next. Give everyone a sense of purpose and direction, and clear due dates for their tasks.

Final Thoughts

There’s a lot to consider when planning and running a meeting, but with a bit of preparation you can make it a worthwhile exercise that attendees truly value. It’s nice to get together face-to-face, especially if everyone feels included and like it was a good use of time. A chance for a coffee and a chat with colleagues doesn’t hurt either.

01/07/2022
Efficient business systems really pay off
Too many businesses fall over because the owner has not established efficient business systems. This typically happens because the business owner is so caught up in the day-to day running of the business that the fundamentals of good business management get forgotten. Often too it must be said that the owner simply doesn’t like bookkeeping or other administrative tasks, so these get put on the back burner.

The symptoms are familiar, and their results disastrous:
- Poor or non-existent record-keeping.
- Tax obligations are not met.
- Invoices go out late and debts remain uncollected.
- There is one cashflow crisis after another.
- Goods and services are incorrectly costed and priced.
Any of these factors can lead the business down the slippery path to failure, but all are avoidable. The whole point about putting in good systems is that they free you to spend more time working ON your business, not in it. Here are some tips on good business housekeeping.

Be business-like

To be in business and to remain in business, become a business person! In order to run a business, you must be business-like. It’s not sufficient just to be very good at what you do. Lots of people who are ‘very good at what they do’ have failed. The common cry: “I’m far too busy for that” is also no excuse. Are you ‘too busy’ to be a competent businessperson? If so, your business won’t last long. You must continue to develop your business skills.

To be a businessperson you have to make the effort to become something of an ‘all rounder’, not just a specialist player. You can offer outstanding goods or services, but if you don’t develop good business systems then you are not a fully rounded businessperson and your business will be in danger of failing.

Remember that other stakeholders in your business, such as the building material suppliers who give you credit and the bankers who extend loans and financing terms, are always assessing your business skills. If you consistently pay people late or can’t meet the terms of your debt agreements they will draw the obvious conclusions about your business skills.

How good business systems will help you

Good business systems will make your business stronger, more efficient and easier to run. They will also make your business far more attractive to future buyers because if you have developed clear operating and procedures manuals the business will be seen as an independently viable unit and less dependent on you.

Think for instance of what makes franchises so successful: it’s because they are designed so that people can buy a proven system and operate it after minimal training. They can do this because the business procedures are captured in simple, clear operating manuals.

Here are five steps to a better business:
1. Good record-keeping and bookkeeping will help you keep on-side with the Inland Revenue Department. If you’re able to meet your tax obligations through sensible planning you’ll sleep better at night. You won’t fear a tax audit and you’ll know how your business is doing. You won’t be caught by a ‘sudden tax demand out of the blue’ because no such thing exists for a well-run business. You should always know which taxes are due, and when. You’ll suffer less stress.
1. Good business planning will help you set goals for your business, with specific steps on how to achieve these goals. Without goals, where do you think you’re going? Running a business without goals is like turning up at an airport and saying, “I’d really like to go somewhere.” The person at the ticket desk would think you’re clueless, to say the least!
1. Good cashflow forecasting will enable you to anticipate a possible cashflow problem (something all growing businesses experience from time to time) and take steps before the problem becomes a crisis. Banks will respect you if you anticipate problems and make plans in advance. Banks will not respect you—and will indeed categorise you as incompetent—if you tell them you’ve been ‘caught out’ by a crisis. Banks don’t like crises. They like you to go to them well in advance of any possible crisis with a plan in hand. This shows them you’re in charge of your business.
1. Good creditor and debtor control will improve your cash flow. Invoicing promptly and collecting debts on time gives you the cash to pay suppliers on time and get more favourable credit terms from them. It is a virtuous circle. Sloppiness in this department is one of the most common (and unnecessary) causes of business owners experiencing stress and anxiety. So pay your creditors on time and don’t let your debtors use you as a free banking service.
1. Realistic pricing and costing will ensure that you run your business in a competitive but profitable way. Poor skills in this regard could mean that you’re operating at unrealistic levels—even at a loss. For example, if you let costs get out of hand (such as overhead costs) your profits will erode. There is no point in increasing sales if you’re not increasing your profits.
In business you don’t have to be an expert at everything. For example, you might hate bookkeeping. Fine—but do get someone else to do it for you, don’t rely on a shoebox for your accounts! And you should at least understand the processes and the overall accounting picture even if you don’t want to do the ‘drudge work’ yourself.

Having poor systems is the road to stress and burnout. On the other hand good business systems will enable you to work smarter, not harder. They free you to work on your business rather than in it. That way, you’re more likely to avoid burnout and you’ll be able to take time off work because you can train others to follow your clearly documented systems and procedures. Systems are the way to build a better business and liberate yourself from it.

To help you with this, Our small firm S & H Accounting offers business services as well. We offer from starting up businesses, to bookkeeping, to all tax services related to business, etc. Our accountants are very well-qualified, vastly experienced and extremely professional. We aim to always meet all of our customers need, as we aim to provide the highest level of service possible, as we always satisfy the needs of our client, so that they reach the desired outcome. Book an appointment today, call us at 03 8759 5532 or you can email us at info@sahtax.com.au
01/07/2022
Business Update – 29 June 2022

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

Lack of Chinese investment worrying

A new report shows that Chinese investment in the Australian economy fell a staggering 69 per cent in the last financial year, reaching 2007 levels. The shift signals a change in the international financial landscape.

ATO cracks down on family trust fraud, worrying tax advisors

Tax professionals worry that the ATO could now scrutinise past family trust behaviours, resulting in scenarios where people must repay enormous sums.

The pay rise ‘anchor’ explained

With inflation set to hit 7% by year’s end, critics say that the Reserve Bank of Australia’s 3.5% figure on what most people should get for a pay rise won’t cut it. The Guardian has created an explainer on how it will keep the economy moving.

Used car prices reach never-before-seen heights

New statistics from financial intelligence group Moody Analytics show that used cars are costing a staggering 65 per cent more than pre-Covid levels.

Sydney and Melbourne property prices set to fall

Analysts predict that Sydney and Melbourne are at the beginning of a housing market downturn that will go on for at least another 12 months.

RBA warns of future interest rate hikes

Reserve Bank governor Philip Lowe says interest rates are still very modest for an economy with low unemployment and high inflation, and that further rises should be expected by year’s end.

What expenses can be claimed if you work from home?

Though pandemic lockdowns have eased, the way people work has shifted. Brush up on what the ATO says you can claim on your tax return here. Ask us if you have any questions.

Government excludes crypto from foreign currency tax arrangements

The Australian Government has confirmed crypto currencies will continue to be excluded from foreign currency tax arrangements. The decision comes after El Salvador moved to allow Bitcoin as legal tender.

Russia defaults on foreign debt for first time since 1918

Strict international sanctions have made it impossible for Russia to pay its billions in debt back to international investors through American banks.

Lettuce seed sales skyrocket

Frustrated Aussies have started taking matters into their own hands as the cost of fresh produce reaches new heights. With supply chain issues sending prices through the roof, some consumers have reported prices of $12 for a single head of lettuce.

Get in touch

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

29/06/2022
5 signs you have cash flow issues

Whether it’s for personal use or for your business, cash flow is important. The movement of money in and out keeps everything running smoothly, and you have to know where you stand. But what if it seems that your cash flow isn’t really, well, flowing? If it seems that you’ve tightened your belt in every area and still coming up short, you might have cash flow issues.

Here are some telltale signs that your cash flow is actually at a standstill.

1.You’re using your credit card every month

Lots of people use their credit card for all purchases these days, and that’s okay – as long as you’re also paying it off. There are definite advantages to using your card, like points or rewards, but these perks are irrelevant if you’re spending money that you don’t actually have. If you can’t pay what you’re spending on your card with cash every month, it’s time to reevaluate how you’re using that card. Think of the real dollars you’re spending every time you tap at the till, and if you don’t have real money to pay off your purchase, reconsider it.

2.You can’t cover your bills

This is a major red flag, and a sign that your budget doesn’t add up. All of your bills need to be accounted for every month, and that includes setting money aside for large future expenses, like taxes. Bills should really be accounted for first, right up there with money for food and shelter. If you find that it’s a challenge to pay all of your bills, it’s likely that you don’t have enough cash coming in; or you’re spending it on things that shouldn’t be as high on the priority list.

3.You’re running out of money at the beginning of the month

If all of your payments come out and you find that you’re already tapped at the start of the month, you’re likely not bringing in enough money. When we add up our living expenses and plan for all of our payments to come out, it’s important to have some wiggle room to carry you through to the next month. Unexpected expenses can pop up, and nothing is as stressful as finding out you don’t have enough money. Make sure you’re earning enough to carry you through the entire month, and not just the typically bill-heavy first week.

4.There are no other costs to cut

So you’ve gone through your subscriptions, pared down your grocery bill, cut back on your nights out, and you’re still not bridging the gap. If you’re planning for your business, maybe you’re just barely scraping by with no profits, or you aren’t left with enough money to pay yourself. When every penny you make is going toward only the necessities, you definitely have cash flow issues. If you’ve cut back in every imaginable area and are still struggling, you need to find a way to bring in more money. It’s as simple as that.

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5.You don’t have an emergency fund or cash chest for difficult times

This sign goes largely ignored by many people these days, with the cost of living being so high. It’s very difficult to save any money under these circumstances, and the reality is that most people just don’t. But don’t ignore this telltale sign that your cash flow isn’t healthy. It’s crucial to have something saved for a rainy day, and putting some money in your savings each month must be done, just like any other bill. Otherwise, you’re likely to lean on credit when these surprise expenses inevitably occur.

Final thoughts

It’s easy to ignore cash flow issues when we have the safety net of credit and if we’re managing to scrape by. But, managing your cash flow is a critical practice that alleviates stress and prepares you for the future. Pay it the attention it deserves and reap the rewards down the road.

25/06/2022