S & H Tax Accountants

Category: Business Technology

  • 4 Reasons to Switch to Cloud-based Accounting

    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.

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    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.

  • Is technology making you less efficient?

    Is technology making you less efficient?

    “For a list of all the ways technology has failed to improve the quality of life, please press three.”

    Alice Kahn

    If you feel overwhelmed by the sheer volume of technological gadgets out there, never mind apps and other digital “solutions”, you’re not alone. Technology sprawl and the rabbit hole of more and more information, available all the time, is making productivity—and healthy downtime—a real challenge for many of us.

    Although we may be quicker at completing redundant tasks, more time is wasted managing all our different apps and technologies—and more of us live in a near constant state of distraction.

    An epidemic of distracted workers

    Maintaining focus on the job is increasingly difficult in the era of social media, chat apps, games, and the ability to search anything at any time—whether related to the task at hand or not.

    Recent research shows that on average office workers switch between tasks roughly every three minutes. Half of those “task switches” were not because the phone rang or someone stopped by with a question—they were self-interruptions.

    The same study showed that when an interruption is related to the primary task, it isn’t a problem for the worker to maintain focus when the interruption ends. But when people have to “shift their cognitive resources” to a new task, it takes longer to remember where they were, refocus, and regain momentum.

    Online multitasking

    Another source of distraction that costs workers time and energy is task switching on their computers. A University of California, Irvine study found that people who work at their computers switch between applications about 400 times per day.

    If your team isn’t working across the same devices, platforms, and apps, imagine the increased inefficiency as workers waste more time dealing with incompatibility issues. For anyone moving between a number of decentralized apps during the work day the cost is mental exhaustion—which can lead to increased lack of focus and even less productivity.

    Tools and tips for increasing efficiency

    The fact is, no matter how much we’d like to improve our productivity, multitasking is a myth; most humans can only perform one task well at a time.

    If you must use a computer at work, to help minimize the temptation to check Facebook or random search, give ShotClock, a monotasking app a try—or Freedom, an app that blocks all digital distractions so you can focus on just what’s in front of you.

    Another tip is to batch email rather than reading and responding to messages continually. Sending email twice a day—once in the morning and again in the afternoon—will train people not to expect to hear from you instantly, creating more reasonable (and sane) expectations. For our own personal and collective wellbeing, no one can or should be available to work around the clock.

    Perhaps most important of all, be sure to unplug and rest your mind each day. And be good to yourself by taking a health break each year. A week or two of time off, away from work email and other stress-inducing distractions, will do more to increase your productivity than any app.

  • 6 Tips to Improve Your Delegation Skills

    6 Tips to Improve Your Delegation Skills

    When you run your own business, it’s tempting to take on every responsibility. There are many reasons for doing so: because you want something done a specific way because you don’t have the time to explain how to do it, or because you’re not sure someone else can handle the task.

    Delegating saves you valuable time and energy. Sharing duties with your team also fosters a sense of responsibility, engages them, and helps them develop their skills.

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    Here are six tips to help you improve your delegation skills.

    1. Know when to delegate

    If you’re like many people, you hold onto as many tasks as you can and only begin delegating once you feel too busy or worn out to take on another thing. It’s good to get used to delegating before you become burned out, so you can more appropriately and effectively choose which tasks should be handed off to others. You may have to begin by delegating small, low-stakes tasks, especially if delegation makes you uncomfortable.

     

    Here are questions to ask before you delegate:

    • Is it vital that you do the task yourself (be honest about this–do you really have to be the person to take this on)?
    • Is there someone else who has the relevant skills, experience or interests to take it on?
    • Is there someone else keen to do it?
    • Do you have time to give detailed information about the task?
    • Are you available to monitor progress?

    2. Match the task to the appropriate person

    Often, business owners delegate a task by finding someone who has time to do it. Just as you have your strengths, so do your team members. When you delegate, make sure to take into account the person who is most suited to it based on their skills, their level of knowledge or experience, and their interests. Unless absolutely necessary, don’t push someone into a task they have no experience or interest in.

    3. Make sure the delegated individual understands what’s being asked of them

    You may understand what needs to be done but your team may not. Spend time with those involved to ensure they’re on board as well. They need to know the goals or objectives, how the task is to be accomplished, what success looks like, and your expectations.

    4. Communicate openly

    Leave room for your team members to come back with questions or concerns. Follow up with them yourself to see how they’re progressing and what support they need. Address any challenges they have and celebrate their successes. If there are milestones or delivery deadlines, check periodically to make sure all activities are still on track.

    5. Coach employees through barriers

    Where possible, avoid taking a task back. It’s tempting to step in when they encounter an obstacle, especially when an activity is time-sensitive. Doing so prevents them from learning or growing. Instead, coach your team members through their challenges. Make sure they have the support and knowledge needed to complete their task.

    6. Encourage feedback

    When you delegate, it’s important to follow up with constructive feedback that celebrates what worked well and provides insights for improvement. Be prepared to accept feedback. Your team might have ideas about how the activity could have gone more smoothly–perhaps with more thorough instructions or by delegating to someone else.

    Delegating tasks to others is a great way to help them develop their skills and knowledge while taking responsibility off your hands. If delegation is difficult for you, it’s worthwhile to consider what’s holding you back and work to overcome your hesitations.

  • How to Choose the Right Software for Your Business

    How to Choose the Right Software for Your Business

    These days, businesses have plenty of options when it comes to choosing software. There are hundreds of developers creating and perfecting new products designed to help you more effectively and efficiently run your business.

    With so many options available, it’s important to focus so you know where to start looking and how to make the best decision.

    Here are some factors to keep in mind when you choose software for your business.

    Your core needs

    Not every business needs every type of software, so you’ll want to sit down and think about what your business actually needs, and what will help you achieve your future goals.

    Some types of software include:

    • Lead generation and sales to help you identify and track prospects throughout the sales process
    • Finance and accounting to help you manage your finances, track accounts, and invoice clients
    • Supply chain and logistics to help you manage your supply chain and inventory
    • Proposal software to help you create, send and track your business proposals
    • Productivity to help you improve productivity and track employee activities.

    Each of these has its benefits, but you don’t need all of them. Consider what your most important goals and objectives are. Do you want the software to make your business more efficient? Do you need software to take administrative chores off your hands? Is there an important gap in your business that software can fill?

    The answers to those questions should help you decide on which category of software to start with.

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    Software factors

    Next, examine products within your chosen category to find the best product for you. This is based on a number of factors, including your current software, the new product’s functionality, and the developer’s responsiveness.

    Key factors to consider:

    Functionality: Although it’s tempting to go for a product that has all the bells and whistles, you might be paying extra for features you’ll never use–and which could actually cause problems of their own. Look for software that has the features you need and will use.

    Integrations: If you’re already using software, you’ll want new products that integrate with what you’ve got.

    Security: If you’re handling confidential or sensitive information, you need software that has ample security.

    Customer support: You need to know that issues can be handled and dealt with quickly. Make sure there’s a solid customer support policy backing the product.

    Budget: Choose the best product that fits your budget and has what you need.

    Making the decision

    You don’t have to go it alone when making a software decision. Research to find out what software others in your industry use. Talk to your team to find out what their experience with the software has been and what they recommend. Find out what factors they need taken into account to make their jobs easier.

    Read online reviews, particularly from companies similar to yours, to find out what they liked about the software you’re considering. If the developer offers it, read their buyer’s guide, white paper or other documentation to get a feel for the product and their philosophy. It’s even better if you can get a demo of a product to try.

    Final Thoughts

    Buying new software is an exciting opportunity for your business. You’re purchasing something that can make your business more efficient and profitable, while also making your job easier. Take the time to consider what you really need, what will work for you now and as you grow, and what others say about your options before making a final decision.

  • Financial Planning to Ensure Financial Independence for Women

    Financial Planning to Ensure Financial Independence for Women

    Financial independence is an important goal for many people. It means you have the ability to support yourself financially, without relying on others for assistance. It also means you control your finances because you make your own financial decisions, rather than someone else making them for you.

    Regardless of who you are, financial independence makes it easier for you to achieve your dreams. It also gives you the peace of mind of knowing that you have the finances to live the life you want to live.

    For women, financial independence can be more elusive, as women typically face financial hurdles such as lower pay, career gaps while they care for their families, and other financial barriers. Additionally, women generally live longer than men, so they must plan financially for longer periods, and they must have enough financial knowledge to make decisions on their own in the event their spouse dies before they do.

    Here are ways women can effectively manage their finances and plan for the future.

    Find an advisor you trust

    Too many well-intentioned advice columns offer advice designed to “fix” women, focusing on what they do wrong with their money. This advice is outdated. You don’t need to be fixed, but you may need some guidance on what the best strategies are for you.

    Find an advisor who is willing to guide you by respecting where you are, where you want to go, how you want to spend your money, and what your unique financial needs are. Choose an advisor who works with your personality, your goals, and your concerns, and takes your insights seriously.

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    Follow age-old advice

    Regardless of your gender, there are some important steps that can help you obtain financial independence. These include:

    • Deciding what you want
    • Creating a budget
    • Setting aside a certain amount of savings
    • Having an emergency fund
    • Paying down debt.

    Think of your retirement

    Part of taking charge of your financial future is thinking about your retirement. If you work for a company that offers a retirement plan, take advantage of it. If you don’t, consider opening your own retirement savings accounts. The earlier you do it, the longer you have to save for your retirement, which is important because you could live well into your 90s.

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    Invest your money

    You need money in savings but you also need your money working for you. That means investing. You don’t have to invest in risky stocks if that doesn’t suit your personality or meet your needs. But investing can bring you back a higher return than savings accounts will. A diversified portfolio will limit your exposure to losses and give you more potential for growth.

    Have a comprehensive financial plan

    A budget will help you with your monthly spending, but a comprehensive financial plan takes into account your entire situation, including your income, expenses, assets, investments, retirement needs, estate planning needs, income taxes, and how they work together to help you achieve your goals.

    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. It’s about having control over your money and making sure your money is working towards your goals.

  • 4 Tips for Positioning Yourself as a Market Leader

    4 Tips for Positioning Yourself as a Market Leader

    Small business owners often feel that they have to do something to stand out from the crowd and attract an audience. If that’s how you feel, you’re definitely not alone. Many business owners try to stand out by creating fancy websites that grab attention. Those may work in the short term, but it’s worth considering other ways to market yourself as an industry leader and build relationships with your ideal customers.

    So how can you position yourself as a leader?

    It’s all about establishing trust with your clients by showing them that you’re an expert in what you do and you care about their pain points.

    Here are four tactics you can use to build relationships that turn prospects into clients.

    1. Reach out on social media

    Social media is a great place to raise brand awareness, but you can also use it to highlight your expertise. Show your customers you understand their needs by sharing content relevant to them. If your clients are in a specific industry, share posts about that industry. If they have certain needs in common, write about those needs.

    Topics you could write about:

    • Changes in legislation that might affect them
    • Trends you see in their industry
    • Seasonal issues that would affect their business
    • Major upcoming issues and how to address them

    Ask questions to better understand what they want to read about or to encourage discussion. When they comment on your posts, respond. Answer questions, thank them for commenting, and find ways to take the conversation further.

    You can also do searches on social media for groups related to your industry. Look for groups that are asking questions in your area of specialty, then provide answers to their questions.

    2. Write articles for contribution sites

    There are many “contribution sites” seeking great content. If you have something to say that’s relevant to your clients, write articles and contribute them to those sites. Once the article is posted, share it across your social media platforms and emails, to encourage people to read.

    3. Encourage testimonials

    Social proof shows prospective clients that there are people who love your company, and your products or services. People want to work with companies they like and trust, and they rely on the word of other people to help them determine whether they can trust your company.

    When you have enthusiastic clients or customers, encourage them to share their thoughts through testimonials and reviews on social media. Ask for ratings and reviews on your social media sites, encourage clients to share information about your business to their networks, and ask your really happy clients to write a testimonial or be the subject of a case study for your website.

    4. Focus on a niche

    It’s a lot more difficult to be a leader in anything if you’re trying to help everyone in any area possible. Helping everyone with everything is also a recipe for burn-out. You become a specialist by knowing one or two areas really well. Focus on one or two industries or niches that you can become known in based on what your ideal customers need from you. When people have an issue related to your specialty they’re likely to come to you, but if they only think of you as a generalist, you might wind up far down their list.

    Final thoughts

    With a little work and time spent getting to know your ideal clients, you can effectively position yourself as a market leader.

  • Secrets to Keeping Your Employees Happy

    Secrets to Keeping Your Employees Happy

    Traditionally, employers have relied on giving employees raises as a way to retain their staff and reward them for being hard-working and loyal. Raises can get expensive, and there is often an upper limit for what you can offer when it comes to increasing salaries and wages.

    Business

    Keeping your employees happy makes business sense. You want to keep your good employees, and it costs money to find, hire and train new staff. Beyond that, employees that are satisfied and feel valued are more motivated and productive.

    Here are some ways to keep your employees happy that don’t rely on higher salaries.

    Offer flexible work arrangements

    Not everyone wants or is able, to work a regular Monday to Friday from 9 to 5. Some people have family priorities or other commitments that keep them busy during regular business hours. If it makes sense for your business, consider flexible work arrangements, such as compressed workweeks (longer days in exchange for more days off), varied start and end times, or job-sharing arrangements. Remote work is another option that employees may want to take advantage of.

    Not only will your employees appreciate flexible work arrangements, your customers and clients may also benefit from your business having increased availability.

    Pay for professional development

    Good employees want to improve their skills and grow professionally. Often, other priorities get in the way of upgrading skills. Paying for professional development, for example by having a fund people can access or by bringing in experts to run workshops, shows your staff you care enough to invest in them. Meanwhile, your business benefits by having staff trained on the newest procedures and technologies.

    Encourage work-life balance

    Employees want a life that’s fulfilling, but it’s difficult to find a balance between work life and home life. Having an employer that encourages a work-life balance makes it easier. Avoid messaging (texting, phoning or emailing) employees after work hours and make it clear that people should enjoy their personal time. Encourage employees to take their sick leave and use their vacation days. Be a role model by striving for work-life balance yourself.

    Be transparent

    Being open and honest with your workers fosters a sense of trust and belonging among your staff. Have regular meetings where you discuss your organization’s goals, strengths, and challenges and receive input and feedback from your team. This encourages engagement and shows your workers their perspective is valuable.

    Having a set of values that applies to your staff

    Sometimes organizations create noble values that they apply to their customers, but they don’t apply them to their workers. Employees see clients and customers being treated well but then wonder why those same values aren’t applicable to them. Create a set of values that applies to your staff. Set out how you want your staff to feel. Do you want them to feel valued? Supported? What does that look like in your organization?

    Business

    Ask your staff what they need

    It’s difficult to come up with solutions that everyone will find meaningful. Ask your staff what would be valuable to them–and what would make them happy enough to stay. They may be happy with additional vacation days or more banked sick time, for example. Listen to their suggestions and consider whether any of the options they mention could work for your organization.

    While increasing salary is one thing you can do to keep your employees happy, there are other things they may value that you can offer.

  • Business Update – 9 February 2022

    Business Update – 9 February 2022

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

    Borders to Reopen to International Travel

    The borders will be reopened to vaccinated tourists and other visa holders from 21 February. Unvaccinated travellers who have a medical reason for not getting inoculated will need to apply for a travel exemption and will be required to quarantine at a hotel.

    Business Confidence Rebounds in January

    Business confidence bounced back in January as the Omicron outbreak quickly peaked, as the National Australia Bank business survey for January showed confidence rebounded 15 points. This pick-up in business confidence may further continue into February due to the reopening of international borders.

    Australia-UK Free Trade Deal a Step Closer

    Australia and the UK is one step closer to a new free trade agreement that will benefit farmers, business owners, investors, and travellers. The free trade will remove red tape and barriers to exports.

    The deal is set to remove taxes on 99% of Australian exports worth $10 billion and UK imports worth $200 million. Trade Minister Dan Tehan hopes that the free trade agreement will be finalised within the next year.

    Deloitte: Business Investments Likely to Rise After Omicron

    Government and business investment in Australian projects is expected to grow steadily in 2022 before accelerating in 2023 and 2024, according to the latest quarterly Investment Monitor report of Deloitte Access Economics. The report stated that before the Omicron outbreak, business investment had returned to pre-COVID levels and had never dropped more than 5% below where it was before the pandemic hit.

    Investment in New South Wales and Victoria is expected to grow the fastest.

    Lifeline’s Crisis Text Service Goes 24/7

    The government has invested $1.5 million to launch a 24/7 crisis text service to expand its support for Australians struggling with the challenges of the COVID-19 pandemic. Australians are reaching out to Lifeline’s crisis support and suicide prevention services in record numbers, hitting more than 3700 calls in one day last month.

    Lifeline’s 13 11 14 crisis support service allows you to speak to a trained crisis supporter any time of day or night.

    NSW Unveils $1 Billion Support Package for Businesses

    The New South Wales government has unveiled a $1 billion support package for small- and medium-sized businesses hit by the Omicron outbreak.

    However, the payment will be capped at half of what was offered during the Delta wave in 2021, after the federal government refused to split the cost of the package.

    The package will provide a payment of 20% of weekly payroll costs to businesses that can prove at least a 40% decline in turnover across January. Payments would range from a minimum of $500 to a maximum of $5,000 a week.

    $24 Million for Research to Reduce Pressure on Emergency Departments

    Through the Medical Research Future Fund, the government will invest up to $24 million in research to improve acute care systems and reduce emergency department waiting times in hospitals. Up to $3 million will be provided for the top research proposal in each state and territory, to ensure the research provides nationwide benefits.

    Rapid Antigen Tests Now Free for Some Australians

    Individuals who hold any of the following concession cards can access up to 10 free rapid tests from pharmacies over the next three months:

    • Pensioner concession card
    • Commonwealth seniors health care card
    • DVA gold, white or orange card
    • Health care card
    • Low-income card

    If you fit the criteria, you need to visit your local pharmacy in person to get your free tests, or your carer or guardian can do it for you.

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

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

    The payment will be:

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

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

    Pandemic Leave Disaster Payment

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

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

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

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

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

    Support for Small Businesses

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

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

    Webinars to Help You Become More Efficient with Tax and Super

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

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

    Get in touch

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

  • 4 Reasons Your Business Should Consider Digital Receipts

    4 Reasons Your Business Should Consider Digital Receipts

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

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

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

    1. Decreased costs

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

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

    2. Increased efficiency

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

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

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

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

    3. Digital receipts are easier to share

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

    4. Additional marketing opportunities

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

    Final Thoughts

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

  • Why Smart Business Owners Never Stop Marketing

    Why Smart Business Owners Never Stop Marketing

    One classic mistake business owners make when money gets tight is to stop marketing or cut their marketing budget. At first glance, it seems logical to cut down your expenses during tough economic conditions. However, in reality, it’s the opposite of what you should do.

    When your business is struggling, cutting your marketing budget will further hurt your business. It is during this time that you should go the extra mile to be at the forefront of the minds of your customers and prospects. With an effective marketing strategy, you should be able to increase sales.

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    However, if you really need to tighten your belt, here are some steps you can take instead of putting a pause on your marketing efforts.

    Be strategic about how you spend your money.

    First of all, don’t waste money. This sounds simple, but in reality, many business owners are not mindful of their spending. Be strategic in your spending and don’t throw money in areas that won’t contribute to your business growth. For instance, if your data suggests that the returns are higher from your digital marketing efforts compared to print ads, you might want to dedicate your resources more online.

    Invest in action campaigns.

    Are you opening a new shop, launching a new product, or running a discount promotion? Invest in an action campaign that will provide your target market all the information they need and will prompt them to act. Make sure that you share all the details such as your website, exact location, operating hours, or a discount code for their purchases.

    Communicate with your target market clearly.

    Ensure that your messaging is not only engaging, but crystal clear and concise. The call-to-action in your campaigns must also be solid and powerful to be able to create the desired action. Whether you want them to sign up for a newsletter, register or buy from your mobile app, or grab a special offer, your messaging must be clear.

    Discuss with your marketing partner/staff and rethink your marketing strategy.

    You may be working on a thousand other things right now, but you have to make time to discuss with your marketing partner or staff and rethink your strategy. Producing great results is not always about doing more marketing, but rather, you have to focus on doing better at it. Stop and think about your messaging, frequency, timing, channels you tap into, and other factors to get the best results.

    Final Thoughts

    Times may be tough right now, but try your best to stay the course and use this as an opportunity to strengthen your relationship with your customers and prospects. Just because you’re on a tight budget doesn’t mean you have to stop marketing and give up the chance to boost sales.

    If you need more focused advice on how to navigate market challenges and economic downturns, get in touch with our advisors today!

  • How to Build an Effective Financial Plan for Your Business

    How to Build an Effective Financial Plan for Your Business

    Every business needs a financial plan. Your financial plan gives you a way to monitor and review your cash flow, make adjustments to your spending, and anticipate any upcoming financial issues. It can also make you more prepared to request funding or find investors so you can bring more money into your business.

    Although many business owners are aware that financial planning is important, it is often overlooked. Without a financial plan, however, you could find your business doesn’t make the money you expected it to—or you could wind up with unanticipated expenses and no way of paying for them.

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    Here are some steps to take to build an effective financial plan for your business.

    1. Set your goals

    You need to know where your business is now and where you want it to be so you can develop a financial strategy to move forward. At least once a year, ask yourself important questions so you can plan for what’s to come. Among the questions to ask:

    • Do I need to expand or grow my business (in terms of staff, locations, or goods and services)?
    • Do I need to make any large equipment purchases?
    • What resources might I need to buy this year?
    • How will any purchases or expansions affect my cash flow?
    • What adjustments might be needed to address these expenses?

    2. Understand your cash flow

    To build an effective financial plan for your business, you must understand your cash flow. Your cash flow is the movement of cash into and out of your business. If you have more money coming in than going out, you have a positive cash flow situation and are able to pay your expenses. If more money is going out than coming in, you are in a negative cash flow situation and need to bring in more money.

    Understanding cash flow—including sales cycles—will help you build a plan for your business. If your business is seasonal, for example, it helps to know when sales drop and for how long, so you can plan for those periods. You can also anticipate when sales will be higher and you’ll have extra money to set aside for emergency expenses.

    Remember that cash flow and profitability aren’t the same thing. Your business can be profitable, but if none of your clients are paying you on time you won’t have necessary cash flow to stay afloat.

    3. Create a sales projection

    An important part of your plan is your sales projection. This is related to your cash flow forecast, but focuses on your sales. It gives you insight into every segment of your business so you can better understand which of your offerings brings in the highest sales. For example, if you run a gym you might break down your sales forecasts into the different membership types.

    When you forecast your sales, make sure you include the cost of goods sold so you can determine your forecasted growth margin. This information will help you determine which of your offerings are most profitable and which should be revised to increase your profits.

    4. Talk to an expert

    It’s not important for you to have all the answers for your business, but you have to be willing to talk to people who have the information you need. Once you know your current situation and what your goals are, talk to an accountant or financial expert to figure out your next steps.

    Experts can help you make sense of your financial situation and how to move forward—whether that’s the best use of your profits or getting yourself out of a negative cash flow situation. They can offer you effective solutions you may not have considered, or help you revise your plan so it’s more realistic.

    5. Monitor your progress

    Throughout the year, take a look at your plan and your projections to ensure you’re still on track. If things are progressing as you expected, great. If not, explore how you can address the situation before financial problems become unmanageable.

    Final thoughts

    Creating a financial plan may feel overwhelming, but by having a clear picture of your goals, your current situation, and your progress, you can write an effective financial plan that increases your chances of success.

  • 3 Reasons Why Business Partners Break Up and How to Prevent Them

    3 Reasons Why Business Partners Break Up and How to Prevent Them

    For many business owners, partnerships are an ideal way to run a business. Operating a business with a partner means you don’t have to make all the decisions on your own. It means you have someone there with you, to help you carry the burden and share ideas with. That can be a great thing, when it lasts.

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    Unfortunately, many business partnerships fail. Although they fail for a variety of reasons, there are some main factors that contribute to a business partnership breakup. Here are 3 reasons business partners break up, and steps you can take to prevent it from happening to you.

    1. Unequal contributions

    All partnerships go through periods where one person contributes—their time, money, energy, or other resources—less than the others. That’s normal. When it happens over a prolonged period or becomes a pattern, resentment can set in and the other partners can begin to feel taken for granted.

    In some cases, a disparity in contributions is natural. For example, if one of the partners has a lot more money or time to invest. These situations require a conversation, however, to ensure that the inequality is addressed and made up for in other ways. If one person has more money to contribute, can the other make it up by contributing more time? If one partner is in a stressful period—maybe they need to step back for a few months due to health issues—can they pick up the slack later so the other partner can take some time off?

    Make sure this discussion involves quantifiable amounts. You can’t measure “work extra” but you can measure “work an extra 6 hours a week for three months.”

    Unequal contributions can be addressed and managed but all partners need to talk about the situation and develop a reasonable and realistic plan for ensuring the disparity doesn’t become an insurmountable problem.

    2. Not hiring help

    Partnerships run into trouble when the people involved think they can handle every issue that comes their way, even if it falls outside their area of expertise. It doesn’t matter how many people are involved in the partnership, if none of them are good with numbers none of them should be doing the accounting.

    When people take on too many activities outside their expertise, problems arise. Mistakes get made and people get blamed. Relationships can sour.

    Discuss with your partners your areas of expertise and activities that you aren’t comfortable doing. Any tasks that no one has expertise in should be given to a professional so that each of you can focus on the areas you’re good at and comfortable in.

    3. Differing visions

    Business partners should have a shared vision for the company so they’re all working towards the same goals. It’s okay for partners to have slightly different views on how to achieve those goals, but overall the vision should be aligned.

    Problems can take hold when partners have deeply different visions for the company and how to meet their goals.

    Ensuring a shared vision is an important step. To do so, make sure your company has a formal, written strategic plan. Work with your partners to write and review the plan periodically. Make sure everyone remains committed to the same vision, and address any shifts in perspective that may have occurred.

    If you’re about to start a business partnership, discuss with your partners why they want to run a business, what their vision is for the company and what their long-term goals are. Make sure everyone is at least somewhat aligned.

    Final thoughts

    Business partnerships can be incredibly rewarding, but they also have the potential for issues. Open communication about your ability to contribute, your skill sets and your vision will help your partnership to stay on track and prevent a breakup.

  • 3 Consequences of Avoiding Your Bookkeeping

    3 Consequences of Avoiding Your Bookkeeping

    If you ask 100 business owners what they like least about running a business, chances are good that bookkeeping will rank high on the list. It’s an annoying and frustrating chore that takes up a lot of time and is easy to put off until tomorrow.

    Avoiding your bookkeeping is dangerous, however. Not knowing your company’s financial situation can result in a series of missteps that could ultimately cost you your business.

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    Here are three consequences of not keeping up with your bookkeeping.

    1. You’ll make poor decisions

    You can only make informed decisions about your business when you have a full picture of your current financial situation, including how much money is in your accounts, what your cash flow forecast predicts, and how much money you owe. Without that information, it’s much more difficult to know when you can afford to spend money or when you need to hold back.

    Without proper booking, your decisions will be based on how you think things are going, and that isn’t always accurate. You may have just finished a good month and decide it’s time to hire new employees only to find out you don’t have enough money in the bank to pay them. Waiting three months to hire employees might be more profitable for you in the long run, but you won’t know that because your books aren’t up-to-date.

    Maintaining your books ensures you have your company’s full financial picture available to you so you can make smart decisions.

    2. You’ll make financial mistakes

    Your employees, contractors, and lenders all rely on you to make your payments on time, every time. Payroll itself requires considerable attention to ensure your employees receive their benefits properly.

    Not keeping track of your financial books can result in expensive errors being made, including benefits being missed, bills not being paid on time, or over- or under-payments. This could cost you extra in fees for late payments or rushed payments, which also affects your books.

    On top of all this, financial mistakes can lead to a lack of trust. You need a trusting relationship with your employees, contractors and lenders. Payment errors can erode that relationship quickly.

    3. You’ll lose money

    In addition to losing money in unnecessary late fees and payment charges, not keeping track of your books can result in lost money that your business desperately needs.

    You won’t know which of your clients or customers aren’t paying you on time, which means you can’t follow up with them or add interest charges for their late payments.

    You could be paying too much in expenses and if you don’t reconcile your books you’ll have no idea that money is being wasted. Perhaps you purchased a software program to enhance productivity in the early days of your business. Maybe you stopped using it but forgot to cancel it, so each month for the past few years, you’ve been paying for a service you don’t use.

    Those payments add up and affect your overall financial position.

    Final thoughts

    Bookkeeping might be many entrepreneurs’ least enjoyable task, but it’s an important one. If you find yourself putting off bookkeeping or dreading doing it, it’s a good idea to look into hiring someone to do it for you. Bookkeepers are trained and knowledgeable in the process, and they can save you valuable time and money in the long run.

    Otherwise, be prepared to set aside time regularly to do your books yourself and don’t let yourself put the task off. It’s too important to the future of your business.

    Want to get your books in order without adding more work to your plate? Get in touch with us today.

  • 6 Vital Money Management Tips for First-Time Entrepreneurs

    6 Vital Money Management Tips for First-Time Entrepreneurs

    Financial management is a vital part of running a successful business, but often entrepreneurs start their business with little understanding of how to make solid financial decisions. Managing your finances is about more than bookkeeping and paying taxes—although those are also important to a sustainable business. It’s about managing cash flow, preparing for income fluctuations, and having the resources to take advantage of opportunities.

    Workaholic Manager Talking With Customer Phone Evening Woman Entrepreneur Working Late Night Corporate Business Doing Overtime Course Phone Call 482257 10250

    Here are 6 money management tips first-time entrepreneurs should follow to increase their chances of success.

    1. Have a budget

    A key step in being on top of your finances is having a budget. Knowing how much money you have, how and where you spend it, your limits on how much you’ll spend, and where the money is coming from gives you crucial information about your profitability. That data can then help you make vital operational decisions about your company—such as where you need to save money and where you can spend more.

    Having a budget and accurate records helps you keep your business—and your finances—on track. In fact, every important financial decision should be weighed against your budget.

    2. Start an emergency fund

    Your emergency fund doesn’t have to hold a large amount of money, but it is there for you in case of sudden emergencies. Even highly successful companies have periods where they struggle financially—often due to circumstances well beyond their control, such as market shifts. An emergency fund can help your business survive during times when income drops. It can also provide you with needed cash to take advantage of an unexpected opportunity.

    3. Don’t spend too much

    New entrepreneurs might feel tempted to grow their business too quickly, make significant but unnecessary purchases, or hire too many people before they have the financial stability to do so.

    Wait until you have a steady, reliable cash flow to make big changes to your company. At least in the beginning, it’s important to take time to focus on the necessities for running your business, and get to know your business cycle. Don’t spend large amounts of money until you know when your busy periods are and when the slower times tend to occur—and how drastically they affect your finances.

    Plan ahead for any massive expenditures and establish guidelines for when you’ll start spending more money, for example after a set period of stable income. Then, stick to the rules you’ve set out for yourself.

    4. Hire an accountant

    An experienced accountant can help you understand tax laws and take advantage of deductions. Without an accountant, you could find yourself facing an unwelcome and unexpected surprise when your taxes are due. You can also make costly mistakes if you do your own taxes.

    Tax regulations can affect everything from your company’s ownership structure, to the best ways for you to spend your money so you can decrease your financial obligations at tax time. Hire an accountant and get to know them well, so they can give you tax advice that meets your specific needs.

    5. Keep your business and personal finances separate

    It can be enticing to mingle your business and personal finances, especially if your business is very small. Doing so, however, means you don’t have accurate financial information either about your business or about yourself.

    It’s also vital to make sure you pay yourself an income from your business. This helps ensure you’re financially stable. Combining your business and personal finances means you aren’t paying yourself. You’re just keeping whatever is left over after everything else is paid for. This leads to situations where your business becomes unsustainable because all your money is going into the company, leaving you with nothing to live off.

    Open a business bank account and draw your salary from that.

    6. Maintain a good credit score

    Good credit is essential for entrepreneurs. It establishes your credit worthiness and enables you to apply for loans, open accounts, and maintain a steady cash flow. It’s crucial you know your credit score and maintain a good rating.

    If your credit score is poor, focus on paying bills on time and double check to ensure that your credit report is accurate and up-to-date.

    Final thoughts

    Mistakes with your finances can be a recipe for disaster. By following the six tips above, you can protect yourself from making devastating financial errors. You’ll also have solid information about the financial health of your business so you can make informed decisions.

  • 3 Ways to Motivate Workers

    3 Ways to Motivate Workers

    The question of motivating employees is often on a business owner’s mind. It can be difficult to find ways to genuinely motivate employees at work, and often the old standards—performance-based bonuses, increased rewards and commissions—only work in the short-term, if they work at all. In fact, some tests have shown that the usual motivational tactics aren’t always effective.

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    So how can you authentically motivate workers?

    1. Share positive feedback

    Too often, rewards and recognition are based on achievements—increasing sales or closing a big account for example. But your employees do a lot of work that doesn’t gain attention on a spreadsheet. Going the extra mile for a client or showing compassion when dealing with a frustrated customer, for example, enhance your company’s reputation even if they don’t immediately have an effect on your profits.

    Create a process through which you gather feedback from your clients. When they share positive comments about your workers, share it with them. Let them know they made someone’s day, even if it wasn’t directly related to their job. Doing so can increase your employees’ satisfaction, which can be a great motivator. It also shows employees that you—and your customers—appreciate them.

    2. Focus on individuals

    Yes, your employees are members of a team. But each team member contributes in a way that is unique, and based on their individual skills, goals, and habits. Remember when you’re motivating your team as a whole that the people on it need to feel aligned with the strategies and goals you implement. You need each person to feel that they contribute to and also benefit from the work the team does.

    Talk to the individuals to find out what they do and don’t like working on, what their goals are and how the team can help them reach their objectives. Do they want to improve their skill set or try a new role? Do they want a mentor on their team who can help them with professional development? Have one-on-one check-ins and ask questions focused on their individual skill set. Listen to their thoughts and ideas. After all, you hired them for a reason.

    3. Ask your employees what they want

    Business owners frequently develop rewards and recognition programs based either on what they want or by following what other companies do. Rewards are often tied to promotions or financial incentives. These are nice to offer, but they may not appeal to all your employees. Not everyone wants increased work responsibility, for example.

    Some employees might prefer additional vacation days, enhanced benefits, free lunches, flex time at work, or other bonuses that aren’t tied to their salary or job title. Talk to your employees. Ask what motivates them and create rewards and bonuses based on what they identify as being most valuable to them.

    Final thoughts

    Entrepreneurs often view financial rewards for achieving goals as the main way to motivate employees. Research shows that these tactics may not be as effective as previously thought. There are other things you can do to show your employees you appreciate and value the work they do.

    It’s also good to remember that even the most motivated employee faces tough days. In those moments, showing your colleague compassion and offering support can help them feel valued.

  • 4 Ways to Make the Most of Business Down Time

    4 Ways to Make the Most of Business Down Time

    Every business experiences slow periods when the market for their goods or services lessens and sales drop. Business owners might be tempted to view down times as unproductive or wasted, but there are ways you can make the most of your business during these seasons.

    Here are four ways to ensure this time isn’t wasted.

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    Take a good look at your business

    When things are busy it gets easy to fall into a habit of taking care of day-to-day tasks and forgetting about your overall business picture. Slower times are a great opportunity to step back from the daily grind and ask yourself if your business is still moving towards its goals, what opportunities or challenges are on the horizon, and whether it’s time to try something new.

    Examine various aspects of your business, such as your marketing and sales, to see if they’re all working together or if they need revising. Is your social media account information still accurate? Do you have unanswered emails to respond to? When was the last time you posted on your blog? Should your website be updated?

    This is a great time to take care of those tasks that have been put off for far too long.

    Get bold with your marketingWhen business is booming, entrepreneurs often prioritize tasks that are directly related to profits, and other activities—such as marketing—take a back seat. Rather than using downtimes to catch up, use them to experiment with new tactics. Have you tried creating marketing videos? Used Instagram Live? Sent out direct mail?

    Write blog and social media posts ahead of time. Strategize your next marketing campaign and commit to posting on social media every day. If you have time, build up a backlog of posts so when things get busy again you have pre-written content.

    You can also use this time to learn tactics and tricks you may not fully understand. If you like writing your own marketing materials but don’t understand search engine optimization (SEO) or Google Analytics this is a good time to learn about them. Professional development now can help you in the future.

    Implement new policies and procedures

    If there are changes you want to make in your business, slower times are often a good opportunity to try them. That way, you have the chance to review the modifications and whether they work well for you before they cause a massive headache.

    Are you considering switching shipping companies? Do you want a new web hosting service? Are you looking to automate some client-facing activities? Make these changes during a slow period to get a good feel for how well they work. At least then you can address challenges that arise before things get busy and you’re left dealing with a lot of upset customers.

    Connect with your community

    Quieter periods are a perfect time to get more involved with your community and do some good. Find a local organization that you care about—or that’s related to the work your business does—and partner with them. You could sponsor an event or a seminar, or even run a fundraising drive.

    Not only will you have something to talk about on your social media, you’ll engage customers that care about purchasing from companies that do good. These days, that’s important to a lot of consumers. According to Forbes, 88% of consumers will be more loyal to a company that supports social or environmental issues, and 87% will have a more positive image of a company that supports social or environmental issues.

    Final thoughts

    Remember that business won’t always be slow, so don’t panic when things get quiet. Take the opportunity to reflect on your business, make necessary changes, try new marketing tactics and connect with your community. Doing so can help you make the most of your downtime so your business can rebound more effectively.

  • Federal Budget 2021: What it means for you

    Federal Budget 2021: What it means for you

    Treasurer Josh Frydenberg has released the 2021 Federal Budget and confirmed Australia’s economy is performing more strongly than was expected six months ago. This article has a summary of the “Winners and Losers” of the Budget and we’ve compiled a recap of the key points below. Get in touch with us if you have any questions.

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      A Quick Overview

    • This budget assumes our international borders won’t reopen until mid-2022.
    • $1.9 billion has been allocated for our vaccine strategy over the next 5 years, with money set aside for production of mRNA vaccine in Australia.
    • The Low and Middle Income Tax Offset has been extended for another year.
    • The instant asset write-off has been extended for eligible businesses.
    • Superannuation changes planned including repealing the work test for voluntary contributions and expanding the First Home Super Saver Scheme.
    • $17.7 billion in funding for aged care including home care packages and a Basic Daily Fee.
    • More than a billion dollars will go towards the Childcare Subsidy Scheme.
    • There is funding for women’s health programs including cervical and breast cancer screening, depression services for new mothers, endometriosis education and programs to reduce domestic and family violence.
    • The JobTrainer program and apprentice and trainee wage subsidy programs have been expanded.
    • Billions will be invested in Mental Health programs including early intervention and aftercare.
    • Farmers to benefit from the asset write-off, biosecurity measures and National Soil Strategy rebates.
    • Funding for startups, particularly medical startups, has been announced. This is designed to make Australia an attractive place to start and grow a business.
    • The budget includes tax relief for small brewers and distillers.

    The Virus

    As expected, the government has expanded funding for our vaccine strategy, with $1.9 billion set aside for the next five years. A pool of money is also allocated to invest in mRNA vaccine production in Australia. There is also an additional $1.5 billion for COVID-related health services like testing and contact tracing.

    Tax Offset Extended

    The “Low and Middle Income Tax Offset” will remain in place for another year. The tax rebate, which is received after completing your tax returns, depends on your income group. Read more about the offset here, or get in touch with us for more details.

    Asset write-off extension for businesses

    Last year’s asset write-offs are being extended by another 12 months. This means businesses with a turnover of up to $5 billion will be able to write off the full value of any eligible asset. This might be a work vehicle or piece of equipment you’ve bought between the last October budget and June 30, 2023.

    The extension also means any losses incurred up to June 2023 can be offset against prior profits made going back to the 2018-19 financial year.

    Super

    Relaxed residency changes for SMSFs

    This budget confirms the Government will relax residency requirements for SMSFs and small APRA-regulated funds by extending the central control and management test safe harbour from two to five years. The active member test will also be removed, allowing members who are temporarily absent to continue to contribute to their SMSF.

    Removing the work test for voluntary contributions

    Individuals aged 67 to 74 will be able to make non-concessional or salary sacrifice contributions without meeting the work test, subject to existing contribution caps and existing total superannuation balance limits. This change is designed to boost the balances of those who haven’t had the long-term benefits of compulsory superannuation.

    Age for downsizer scheme reduced

    The minimum age for those eligible for the downsizer scheme will be reduced from 65 to 60. The scheme allows a person to make a $300,000 contribution to their superannuation fund after the sale of their home, if they have lived there for 10 years. It is intended to encourage older people to sell family homes, freeing up property for younger generations.

    Changes to threshold for superannuation guarantee eligibility

    Australians earning less than $450 a month will receive superannuation payments following the removal of the income threshold.

    First Home Super Saver Scheme

    First home buyers will be able to access up to $50,000 of additional voluntary concession and non-concessional contributions from their superannuation funds, which is up from $30,000.

    The First Home Super Saver Scheme is designed to help first home buyers raise a deposit quicker.

    Pension Loans Scheme

    Funding has been allocated to improve uptake of the pension loans scheme. This scheme is a voluntary, reverse-mortgage type loan to assist older Australians to unlock equity in their houses and boost their retirement income.

    Aged Care

    The Royal Commission into aged care made it very clear that Australia’s aged care system needs improvement. In response, the Government has put a significant amount ($17.7 billion) towards aged care over the next five years. The money will be spent on 80,000 new home care packages and there’ll be a government-funded “Basic Daily Fee” supplement of $10 per resident a day for providers to improve care and services.

    There is also money allocated to make it easier for seniors to navigate the aged care system, including funding for a new star rating system to make the performance of aged care providers clearer.

    Childcare

    Another “winner” here with $1.7 billion over the next three years for the childcare industry. This will go toward changes to the Childcare Subsidy Scheme (starting July 2022). If you have one child in childcare, the subsidy stays at 65 per cent but if you have two or more, it’s 95 per cent for each child.

    International Tourism

    The last budget in October was based on assumptions that international borders would begin gradually reopening towards the end of 2021. Given the slow vaccine rollout and ongoing outbreaks overseas, the government is now saying the border won’t open until at least mid-2022.

    This is bad news for tourism operators who rely on international visitors. Last year’s budget included $60 million to help some tourism businesses diversify their markets, but there’s little extra support this year.

    Women’s Health

    The Federal Government is allocating $354 million for women’s health which will cover a variety of initiatives including improving cervical and breast cancer screening programs, depression services for pregnant women and new mothers, screening of embryos during IVF, reducing pre-term birth rates, especially among Indigenous communities, reducing eating disorders and other health initiatives including endometriosis education and pain management programs.

    There is also $998 million for reducing domestic and family violence, supporting survivors and a trial program has been announced which gives women fleeing violent relationships up to $5,000 in assistance, split into a $1,500 payment and $3,500 in expenses like rent, legal fees and furniture.

    To help women when it comes to retirement, the government is now introducing a scheme where employees who earn less than $450 a month will be paid the superannuation guarantee. More details on the Women’s Health funding can be found here.

    Youth and employment schemes

    An additional $500 million over two years will be directed to the JobTrainer program to create around 163,000 places and reduce the youth unemployment rate. The JobTrainer scheme unveiled last year is a government plan to drive job creation by up-skilling school leavers or people who are unemployed through free or low-fee courses.

    The supporting apprentices and trainees wage subsidy scheme is also being extended. This program reimburses employers 50 per cent of an apprentice’s or trainee’s wage for the first year, up to a cap of $7000 per quarter.

    Mental Health

    An additional $2.3 billion will be invested into the National Mental Health and Suicide Prevention Plan. There’s funding set aside for early intervention, including a new digital platform to provide online counselling. $298 million will go directly towards suicide prevention with the federal government aiming to with the states and territories to fund aftercare for every person discharged from hospital after a suicide attempt. The majority of the funding will go to treatment though, with a new national network of mental health treatment centres for adults, youth and kids to be set up.

    There is also money allocated to increase the workforce, offering scholarships and clinical placements for nurses, psychologists and allied health practitioners in the mental health space.

    Support for Farmers

    Our farmers can benefit from the asset write-off (extended until June 2023) but there’s also $200 million allocated for a National Soil Strategy which includes rebates for farmers that share soil testing results. The government will also waive almost $15 million of debt owed by more than 5,000 farmers receiving the Farm Household Allowance from Centrelink.

    Start Ups

    A new tax program has been announced which is aimed at encouraging medical and biotech companies to stay in Australia while they develop and then sell their ideas. The “patent box tax regime” will tax any income from a company’s patent at a concessional rate of 17 per cent starting from July 1, 2022. This is compared to 30 per cent tax rate for large businesses and 25 per cent for small-medium businesses.

    The government is focusing on start up businesses with $500 million in other new measures to make Australia an ideal place for businesses, including reducing red tape and encouraging employee share schemes.

    Tax relief for small brewers and distillers

    A win for the little guys here with small brewers and distillers getting more help this year. From July 1 2021 anyone who is eligible will be handed back up to $350,000 worth of taxes.

    Gaming

    A 30% refundable Digital Games Tax Offset has been announced to attract more of the global game market to Australia. To get the offset, eligible businesses have to spend at least $500,000 on certain games expenditure. The finer details are still being decided.

    There are a few more measures announced which we haven’t covered off here. Feel free to read more in this article.

    Get in touch

    Please get in touch with us if you have any questions.

  • New payment methods to consider in 2018

    New payment methods to consider in 2018

    A new year is a perfect time for business owners to set goals to improve profitability.

    If you aren’t yet familiar with digital wallets and the latest mobile payment technologies, you might be interested in the benefits they afford small businesses, such as:

    • instant access to funds and real-time financial data
    • cost savings on third party transaction fees and POS systems
    • competitive edge—making it easy for customers to pay quickly and securely on any device.

    Here’s a quick look at a few emerging payment options you may want to consider integrating with your business in 2018. 

    Apple Pay

    What makes Apple Pay so appealing to consumers and business owners alike is its ease of use, speed, and security. Anyone with a smartphone or Apple watch can make a purchase instantly by simply holding their device at a wireless payment terminal set up for Apple Pay.

    Apple Pay can also be used to make secure purchases within apps or on the web.

    If you run a business where completing transactions quickly is crucial—for instance, a coffee shop or fast food outlet—the speedier your service, the happier everyone will be. Your patrons won’t have to wait, and you’ll make more sales.

    If your business already accepts major credit cards (e.g. Visa, Mastercard, American Express, or Discover), or Interac contactless payments, the good news is you should be able to set up Apple Pay without making any changes.

    Even better news: Apple doesn’t charge additional fees for businesses that accept Apple Pay.

    Apple Pay has been growing in popularity since its launch in 2014 and is currently used around the world (the full list is available here). For more info to get you started, visit the Apple Pay website.

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    Cryptocurrencies

    If cryptocurrencies, like Bitcoin, have been on the periphery of your awareness, lookout. These alternate currencies are fast becoming mainstream payment options for small and big businesses alike.

    Large companies including Microsoft, Tesla, and Shopify now accept Bitcoin. For businesses trading in large sums, the pros of accepting cryptocurrency can be very attractive, such as:

    • no transaction fees
    • instant payments
    • no exchange rates or conversion fees
    • encryption technology (e.g. blockchain) ensures secure transactions.

    The ease and affordability of using Bitcoin for global business transactions are a major reason small business owners looking to expand into foreign markets adopt this cryptocurrency.

    Of course, any new financial technology comes with its risks. Some worry about cryptocurrency’s potential volatility, and the risk of loss in an unregulated system.

    The best advice before investing in any cryptocurrency is to make sure you understand exactly how it works—then weigh all the pros and cons for your business.

    To learn more, take a look at Inc’s list of cryptocurrencies to watch in 2018.

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    Next steps
    As digital technologies bring us closer to paperless financial systems, it’s important you offer your customers a range of convenient payment options, so they aren’t tempted to shop somewhere else.

    Ensuring your customers can buy from you using their preferred payment options, whether cash, check, debit card, credit card, mobile payment options, or EFT, will help you stay competitive, long-term.

  • 5 Tips To Prepare Your Business for the End of JobKeeper

    5 Tips To Prepare Your Business for the End of JobKeeper

    The Australian Government’s JobKeeper scheme is set to end on the 28th March 2021. Since this program was introduced in March last year, it has provided a lifeline to many businesses, protected jobs, and helped protect Australia’s economy. Now that it’s about to end, you may be worried about your business.

    We’ve compiled our top tips to help you prepare your business for what’s next.

    Create a cash flow forecast.

    Cashflow forecasts are essential for business survival– use them to scan the horizon and manage your cash effectively.

    Factor in your overhead costs, account for all incomings, and create a cash flow forecast at least three months ahead. Trust us, it’s easier to manage a shortfall if you know about it a few months in advance.

    Our team can help you create and monitor these forecasts so you’re well prepared for what might happen.

    Get in touch with your suppliers and clients.

    Ask your clients and suppliers how they’re doing. If their business is in trouble, create a Plan B to prevent your business from being disrupted.

    Even better, ask them how you can help ease their challenges. If you can help others out in times like these you will reap the rewards in the long run.

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    Fast track your accounts receivables.

    We know everyone hates chasing overdue invoices. However, it needs to be done, as these outstanding payments will put pressure on your cash flow.

    There are various strategies to get paid faster. One is to consider a payment gateway system that allows credit card or direct debit payments right from your invoices. Another is to offer flexible payment options or installments, especially for your regular customers. You might also want to consider requesting upfront deposits.

    Remember! If you make it easier for people to pay you, you will likely get paid quicker.

    Tweak your marketing strategy.

    With everyone affected by the COVID-19 pandemic, there also come changes in consumer behavior. So it could be time to review your marketing strategy and adapt.

    This may include changing how you use social media to engage with customers. Partnering with relevant small businesses and joining community initiatives are effective ways to expand your reach and stay on top of mind in your local community.

    Tap into other government funding and support programs.

    JobKeeper may be ending but there are other ongoing government grants, subsidies, funding, and support initiatives that you can still take advantage of. You can check them out here.

    Talk to an advisor

    Get in touch with a reliable advisor and gain access to expert advice on cash flow and how to cushion the impact of the end of JobKeeper. We can also help you explore your options for other government subsidies and stimuli. Contact our team today!

  • 5 Essential Tips for New Property Investors

    5 Essential Tips for New Property Investors

    Everyone wants to achieve financial independence.

    However, until you have enough income-generating assets, you are unfortunately dependent on someone else such as your employer.

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    Investing in properties, when done right, can provide an ongoing income stream and a cash lump sum when you decide to sell it. If you are a first-time property investor, check out these five tips that can help you along your journey towards financial independence.

    1. Treat your investment property as a business.

    For your investment to work for you, you need to ensure that it is structured correctly, managed by the right people, and supported by people with technical knowledge and experience. You also have to check its financial viability and make sure it is compliant with government rules.

    2. Don’t do it alone.

    Investing in a property is a major financial decision and commitment. So make sure you understand the business and seek help from trusted advisors or financial planners.

    Make the effort to educate yourself and read about market trends in newspapers or property publications, or surround yourself with those who are experts in these areas.

    3. Research, research, research

    The goal is to buy the right property, in the right location, at the right time, and at the right price to maximize your gains.

    As mentioned, you need to be educated on property investment before you make big decisions. Research the market, talk with local selling agents, real property and investment reports, or visit property websites online to gain some insights.

    4. Invest sensibly

    Buying the wrong property will not deliver your desired results, so you have to be really careful. Put yourself in the shoes of your target renters and ensure that your property meets their specific needs.

    5. Cashflow is vital

    Don’t overcommit financially– choose an investment property that you can afford to own, manage, and maintain.

    Decide how much of your money can you commit upfront and on an ongoing basis. A professional advisor can help you come up with an accurate budget. You can also quantify the cash flow your investment will produce so you can be well-informed before you push through with it.

    Getting Help From Experts

    As a new property investor, it is wise to get all the advice you can get from experts to mitigate risks and maximise potential gains. If you need some help with key investment decisions and compliance matters, simply drop us a message and let us discuss what will work best for your specific situation.