S & H Tax Accountants

Category: Business

  • Business Update – 22 December 2021

    Business Update – 22 December 2021

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

    Government Rules Out Lockdowns Despite Omicron Surge

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

    Australia- UK Free Trade Agreement

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

    Australia and Vietnam Deepen Trade Ties

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

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

    Australia-India Travel Bubble Pact

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

    Record Monthly Increase in Jobs Number

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

    NSW: Emergency Surge Support Program Launched

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

    $276 Million to Support Health Scientists

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

    Aviation Recovery Plan Launched

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

    WA Border Reopening

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

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

    Business Adoption of eInvoicing

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

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

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

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

    FBT Implications of Christmas Parties

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

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

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

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

    Get in touch

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

  • How Accounting Software Can Increase Profits

    How Accounting Software Can Increase Profits

    Most small business owners who use accounting software quickly master the basics. They automate processes like invoicing and payroll, track expenses, and view real-time financial reports to manage cash flow and make better business decisions.

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    But what many business owners don’t take advantage of are key insights that can improve customer care and increase sales. Here are some smart ways you can use your accounting software to help boost your bottom line.

    Gain insights that increase sales

    If you’re not tapping into your accounting software analytics to better understand your customers, you’re missing a major opportunity to close more sales.

    Most accounting software can highlight your biggest spenders and buying trends. How would knowing who your best customers are, your biggest selling products, and how much each customer spends impact your marketing decisions – not to mention help you fine-tune your sales strategies?

    By the same token, when you know which products and services aren’t selling, you’ll be able to make more profitable purchasing decisions. Most accounting software offers inventory tracking to help you decide what to keep on the shelves, which products to sell off at a discount, and which items to phase out altogether.

    Improve customer care and boost profits

    Accounting software can offer peace of mind when you know your financials are accurate and up to date. But another major advantage of an online accounting solution is how much time you’ll save by automating processes like invoicing and payroll – giving you more time to follow up with clients and seek out new prospects.

    We all know how important the personal touch is when it comes to sales. So why not use your accounting software customer data to help remember your customers’ birthdays or thank them when they’ve hit a milestone – spending more than $5,000 on your products, for example?

    With enhanced customer data at your fingertips, your business will earn a reputation for personalized service. You’ll be able to respond quickly when a customer calls with a question about a product or an order. And you’ll be able to suggest substitutions and offer valuable add-ons based on their buying preferences, so upselling becomes a snap.

    How will you use accounting software to grow your small business?

    Savvy business owners take the first step toward better profitability when they stop thinking of accounting software as simply a financial management solution and start thinking of it as a comprehensive tool for business growth.

    You may be surprised at the many ways accounting software can help you better serve your customers or improve your sales strategies when you look at its true potential.

    Now that you have a handful of ideas for making better use of your accounting software, what will you do differently to enhance customer care, improve your profits and continue to grow your business?

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

  • Business Update – 15 December 2021

    Business Update – 15 December 2021

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

    Moderna and Australian Government Partnered to Bring Manufacturing to Australia

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

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

    Visa Holders Now Allowed to Enter Without Exemption

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

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

    WA Border Reopening

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

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

    Queensland Opens Its Borders

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

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

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

    Four Northern Territory Communities Enter Lockdown

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

    Changes in NSW COVID-19 Restrictions

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

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

    You can learn more about the restrictions here.

    Business Conditions Improve in November

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

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

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

    These results show that a strong recovery is underway.

    Business Adoption of eInvoicing

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

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

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

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

    Permanent Telehealth to Boost Universal Medicare

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

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

    $540 Million to Expand COVID-19 Response

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

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

    Support for Farmers to Increase Soil Carbon

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

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

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

    FBT Implications of Christmas Parties

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

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

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

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

    Upcoming Key Dates for December 2021

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

    21 December

    • November monthly BAS due

    Get in touch

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

  • Business Update – 8 December 2021

    Business Update – 8 December 2021

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

    Queensland Border Reopening Requirements

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

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

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

    Pfizer Vaccine Approved for Children 5 to 11 Years Old

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

    International Students Return to Australia

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

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

    $540 Million to Expand COVID-19 Response

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

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

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

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

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

    Support for Farmers to Increase Soil Carbon

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

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

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

    FBT Implications of Christmas Parties

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

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

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

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

    Upcoming Key Dates for December 2021

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

    21 December

    • November monthly BAS due

    Support for Apprentices to be Expanded

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

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

    Get in touch

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

  • Business Update – 1 December 2021

    Business Update – 1 December 2021

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

    International Border Reopening for Skilled Workers and Students Delayed

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

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

    Travel Guidance for International Arrivals

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

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

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

    PM Urges State Leaders to Stick to Reopening Plans

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

    Q3 Economic Decline Not as Bad as Feared

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

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

    Manufacturing Industry Rebounded in November

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

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

    Support for Farmers to Increase Soil Carbon

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

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

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

    FBT Implications of Christmas Parties

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

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

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

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

    Upcoming Key Dates for December 2021

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

    21 December

    • November monthly BAS due

    Support for Apprentices to be Expanded

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

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

    Get in touch

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

  • Business Update – 24 November 2021

    Business Update – 24 November 2021

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

    Australia to Reopen to Foreign Visa Holders

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

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

    South Australia Reopens Borders

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

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

    Katherine Lockdown Extended

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

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

    COVID-19 Travel Insurance

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

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

    FBT Implications of Christmas Parties

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

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

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

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

    Upcoming Key Dates for November 2021

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

    29 Nov 2021

    • September quarter SG charge statement due

    Change in Super Rules from 1 November for Your New Employees

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

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

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

    Changes for Directors starting in November: Identification Number Needed

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

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

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

    You can also follow the steps for application here.

    Support for Apprentices to be Expanded

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

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

    Get in touch

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

  • 4 Reasons Your Business Should Consider Digital Receipts

    4 Reasons Your Business Should Consider Digital Receipts

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

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

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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.

  • Is your home loan protected?

    Is your home loan protected?

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

    Coins Key Sheet Mortgage Application

    What insurances can protect your home loan?

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

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

    Lenders mortgage insurance

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

    Mortgage protection insurance

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

    Income protection insurance

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

    Do you need insurance for your mortgage?

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

    What’s right for you?

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

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

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

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

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

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

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

    Lack of market demand

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

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

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

    Happy Young Asian Businessmen And Businesswomen Meeting Brainsto

    Lack of expertise

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

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

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

    Lack of finances

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

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

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

    Final Thoughts

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

    Get in touch with us to arrange a chat.

  • Business Update – 17 November 2021

    Business Update – 17 November 2021

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

    Australia Hits 90% Single-Dose Mark

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

    Australia Aims to Vaccinate Children Under 12 Years Old

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

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

    Potential Travel Bubbles with South Korea and Japan

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

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

    Parts of Northern Territory Shut Down

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

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

    FBT Implications of Christmas Parties

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

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

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

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

    Google to Invest $1 billion in Australia

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

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

    JobMaker Hiring Credit Payments for 3rd Period

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

    Single Touch Payroll (STP) Quarterly Reporting Due Dates

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

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

    Upcoming Key Dates for November 2021

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

    22 Nov 2021

    • October monthly BAS due

    29 Nov 2021

    • September quarter SG charge statement due

    Change in Super Rules from 1 November for Your New Employees

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

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

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

    Changes for Directors starting in November: Identification Number Needed

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

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

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

    You can also follow the steps for application here.

    Support for Apprentices to be Expanded

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

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

    COVID-19 Government Support By State and Industry

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

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

    Get in touch

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

  • Questions to Prepare for When Pitching to Investors

    Questions to Prepare for When Pitching to Investors

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

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

    Group Diverse People Having Business Meeting

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

    1. Why does your business need to exist?

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

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

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

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

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

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

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

    3. How will you use the funds?

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

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

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

    4. Who are your competitors?

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

    Final thoughts

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

  • 4 Money Saving Tips for Business Owners

    4 Money Saving Tips for Business Owners

    Running a successful business requires you to make smart decisions about everything from who you hire to how you spend your money. There are many legitimate expenses to cover, but it’s easy to overspend in areas that aren’t helping you or your business.

    Spending wisely is key to owning a sustainable business. Here are four practical money saving tips for business owners.

    1. Have a list of all your subscriptions, and get rid of some

    These days, there are apps, programs, and other solutions designed to increase your productivity and boost your efficiency. Because they have automatic monthly payments, it’s easy to sign up for them and then forget about them. But those monthly fees quickly add up and cost you hundreds—if not thousands—over the course of a year.

    Keep a list of all the subscription services you’ve signed up for, along with the monthly (or yearly) cost. Review the list each quarter and ask whether you’ve used that platform within the last six months. If you haven’t, consider cancelling the account. That money will easily go elsewhere and you can almost always sign up again later if you find you need that program.

    Additionally, research less expensive options that are more appropriate for your business. It might not be worth it to pay thousands of dollars for an expensive photo editing program if you don’t regularly edit photos, for example. A less expensive version with fewer features might be just as effective.

    2. Consider alternatives to traditional advertising

    You don’t need to pay huge amounts to market your business. Some companies benefit from paid ads online, but many small businesses don’t need to. Explore content marketing or YouTube videos to boost traffic to your website, or consider whether a social media account would allow you to connect with your ideal clients.

    Marketing well still costs money, but it doesn’t need to be expensive. Figure out what avenues are most effective at connecting you with your clients and spend your time and money marketing yourself there.

    3. Know when to spend money

    This might seem counterintuitive, but paying for outside expertise can save you money in the long run. Hiring a lawyer to review contracts can prevent misunderstandings that lead to lawsuits. Talking with an accountant about taking advantage of tax breaks can save you money during tax season.

    There are times it makes sense to go it alone, but there are also times when an expert’s advice saves you in the long run. Be flexible enough with your spending to pay for outside expertise.

    4. Cut back on office expenses

    With many employees now working from home—and companies now implementing the technology that allows remote working—it makes sense to review how you use your office space. Can you move to remote working and cut back on rent? Can you implement a flexible work schedule to save on utilities?

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    Explore how the shift to remote working can free up your finances by allowing you to cut back on office expenses that are no longer necessary.

    Final thoughts

    As a business owner, it’s important that you know when to spend money and when to save it. If you’re looking for ways to save your money, consider alternatives to traditional marketing, review your subscription list, and explore whether it’s possible to cut back on office expenses. These money saving steps will boost your finances.

  • 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.

    Reading Glasses Personal Planning Finances

    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.

  • 5 Financial Tips for Your 30s

    5 Financial Tips for Your 30s

    Your 30s are an exciting time. You’re typically making more money than you were in your 20s and you’re looking to the future to determine the type of life you want to live. Your 30s are also a great time to take control of your finances, so you have more security and flexibility in the coming years.

    Businesspeople Meeting Plan Analysis Graph Company Finance Strat

    Here are 5 financial tips to follow in your 30s, to help you get ahead.

    1. Create and stick to a budget

    Budgets are a great way to set your financial goals and create a strategy for achieving those goals. Too often, we go from month to month without any overall plan, which usually results in not getting ahead—and sometimes we wind up in even more debt.

    Determine your short- and long-term goals and figure out what you need to do financially to reach those goals. Do you want to buy a house? Go on a big vacation? Retire early? Do you need to spend less? Sell some items? Put more money in savings?

    Without a budget, years can go by and you’ll realise you’re in exactly the same place financially that you were 5 years ago. Instead, create a budget, set out how much you’ll spend—and on what—how much you’ll save and what you’ll do with the rest of your money. Then, stick to your budget.

    2. Diversify your income

    Multiple income streams not only allow you to increase your earnings, they protect you in case of an emergency. Income from your job provides stability, but what happens if you’re suddenly unable to work? Having multiple sources of income protects you in such situations so you don’t find yourself in a financial crisis.

    You can invest in property or stocks, for example. Or you can create passive income by writing and selling books in areas you’re an expert in. You could have a side job that allows you to earn extra money so you can pay down your debt faster.

    3. Pay off your debt

    It may be impossible to live completely debt free in your 30s, but getting rid of some debt such as credit cards and lines of credit can free up your income to allow you to save more for the future.

    Pay off your credit card bills, your lines of credit and anything that has a high interest rate first, then move to other debts with lower interest rates.

    4. Stop overspending

    It’s tempting to overspend because we want to keep up with the people around us. Typically, when we hit our 30s we’re making more money, have greater disposable income and are surrounded by people who are also spending their money. It’s natural to want to keep up.

    The problem is that spending too much in your 30s can affect your finances for the next few decades. Instead of buying a big house that impresses people but eats up your salary, consider something smaller that’s more affordable. Rather than buying a high-power new car, consider a less expensive model.

    There are times when it’s worth it for you to spend big on items, but don’t do it just so you can keep up with other people—and definitely don’t do it if you can’t afford it.

    5. Have an emergency fund

    An emergency fund is essential to help you get through any extreme financial circumstances. Even if you’ve diversified your income, you need to have funds that you can access quickly in case of unexpected expenses, such as home and car repairs or medical bills.

    An emergency fund is there to carry you through unforeseen circumstances, but having one also means you don’t have the stress of worrying about what will happen to you if something should go wrong. You have the peace of mind of knowing that you’ll have the financial means to react and adjust.

    The amount recommended for an emergency fund varies depending on your lifestyle, finances available to you and job, but consider having around 6 months of expenses in a special account. Then promise yourself you won’t touch that money, except in a real emergency.

    Final thoughts

    By following these simple tips, you can take important steps in your 30s to set yourself up well financially for the future.

  • Managing Field Workers in Your Construction Business

    Managing Field Workers in Your Construction Business

    It’s one thing to manage workers when they’re all in the same place at the same time. However, when you run a construction business with field workers, things can get a lot more challenging. Not only are you typically not on the same job site as them, but you might also have workers scattered over a variety of sites and projects. Managing them doesn’t just mean scheduling them and making sure they’re progressing on the project, but also knowing how to shift people and equipment between sites to boost productivity.

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    Here are 3 things you can do to effectively manage field workers in your construction business.

    1. Be clear on your expectations

    One of the most challenging parts of having field workers is when people don’t know what’s expected of them. They might understand what their job is—and be perfectly capable of carrying out it—but less clear on their level of autonomy.

    For example, under what circumstances do they need to consult you, versus when can they make executive decisions on their own? Is there someone on each job site who acts as a team lead or are they all given the same level of authority? Who is the superintendent, if there is one? How frequently should they communicate with you about progress and what information do you need? What are the milestones they need to meet and when do they need to meet them? What are your responsibilities to the workers on the job site?

    Giving your field workers a clear idea of your expectations makes it easier for them to react to situations at the moment, rather than wondering if they need to contact you. It also provides them with a framework for carrying out their duties. Finally, it reassures them that there are expectations of you that you’ll meet as well, such as ensuring they have the right tools for their jobs.

    2. Upgrade your tools

    Many construction companies still use manual processes, such as telephone calls, to share information. These manual processes require you to review large volumes of paperwork and take up a lot of your time just to keep up-to-date on what’s going on. With multiple job sites, the task can become unmanageable.

    These days, there are various technologies and platforms that can be used to share information and communicate with field workers. You can send tasks to field workers, ask them to capture data and share virtual paperwork in real-time.

    The information is shared much more easily and efficiently and cuts down on the risk of missing paperwork and other errors. It also provides you with a complete audit trail, so you have proof of your company’s activities, in case there are ever any questions.

    3. Engage workers

    One of the best things you can do to manage field workers is to ensure they all know they are part of the team and feel appreciated by you. This means being clear in your expectations, but also giving them the opportunity to offer feedback. Find out how you can support them. Provide group activities where the different teams are brought together to interact with each other and get to know one another.

    Visit the job sites. You may sometimes have to check in to evaluate how things are going, but drop in periodically to check in with them without being there to review their performance. Ask what’s going well and what could use improvement. Listen to your field workers and if their suggestions are reasonable, consider implementing them. After all, they’re the ones in the field.

    Final thoughts

    Managing field workers can be complicated, especially if you have numerous teams at different locations. Being clear about your expectations, using the right tools, and engaging your workers will help you more effectively manage them.

  • 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.

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    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.