S & H Tax Accountants

Category: Firm News

  • How to Scale Your Business with Minimal Effort

    If you want your business to grow, at some point you’ll have to think about scaling it. Scaling it isn’t exactly the same as growing it, though they are often used interchangeably. Growth refers to adding resources and increasing your revenue in a linear fashion. You double your number of offices to double your number of customers, for example. Scaling means increasing your revenue without a substantial increase in the resources used.

    For example, email marketing is a great way to scale. You write one marketing email and it can be seen by 100 people or 100,000 people, without any extra effort from you. Scaling is a way of efficiently using your resources to increase revenue, without incurring additional costs—or only incremental costs.

    Here are some tips to effectively scale your business with minimal effort.

    1. Keep it simple

    Processes that are overly complex take more time and energy. They also come with a higher risk of errors. Scaling your business doesn’t have to be complex—in fact, complexity can often slow progress and waste your time.

    Keep your processes simple. That will help you not only maintain control of your business, but enable your employees and your customers to understand what you do and to buy in.
    If it seems too complicated, avoid it.

    2. Use scalable administrative processes

    Scalable processes allow you to operate efficiently because they enable you to take action quickly, with less effort and input. Technology makes it easier for companies to access software that increases productivity and revenues while decreasing time spent on administrative tasks.

    For example, having an online invoicing tool helps you scale because you can quickly create invoices, follow up with clients and track project management, without having to do so manually. That saves you time and energy that can be better spent in other areas. Meanwhile, marketing automation tools can bring in an additional $50,000 a year but only cost around $5,000 a year.

    Examine the activities you perform regularly and explore whether there’s a tool that could automate them.

    3. Focus on data

    Don’t speculate about what is and isn’t working in your business, use data to determine where you should spend money, and where you should stop. Business owners have access to a wealth of data-driving metrics, everything from how customers interact with your website to which marketing initiatives are working, to how long it takes to convert customers.
    Use that information to make effective spending and operational decisions, rather than guessing at what is and isn’t working.

    4. Scale your offerings

    Chances are, you can scale your offerings to encourage repeat customers. Automatic renewals or subscriptions can increase customer retention rates without you putting in the effort of chasing people down. Rewards programs nurture customer loyalty.

    Explore whether you can offer repeatable pricing packages as well. Even if you offer professional services, selling packages saves you from manually quoting on every individual project. There is likely a way that you can implement subscriptions or service packages to save you time and hassle.

    Final thoughts

    Scaling your business is an important way to increase revenue without significantly increasing your expenses. If you automate your processes, scale your offerings, focus on data and keep your systems simple, you can scale your business effectively and efficiently.

  • How Much Cash Does My Business Need?

    How Much Cash Does My Business Need?

    Your business needs cash. Cash is what keeps your company in operation and enables it to grow, so you should know how much cash your business needs to survive. Although many people think the answer is linked solely to operating expenses, this isn’t the case.

    There is no single factor that determines how much cash every business needs to have on hand. Somewhere between 3-6 months of operating expenses is a good baseline to start from, but there’s more to it than that.

    Here are some factors that determine how much cash your business needs.

    1. Your income:

    The source of your income helps determine if you need more or less cash. If your income isn’t highly diversified—that is, if the majority of your income comes from one or two main clients—you’ll need to have more cash on hand. That’s because if your main client leaves you, you’ll suddenly find yourself with significantly less money coming in.

    If your income is diversified, you’ll be better able to withstand losing a client, so you’ll need less cash available. But if the majority of your income comes from one source, you need to be prepared to have little income if they leave.

    Likewise if your business has investors, they could request their money back at any point. You’ll need to cover that.

    2. Your expenses:

    Businesses typically have fixed overhead expenses and variable expenses related to the cost of goods sold. You need to know how each of these affect you over a few months so you can prepare to cover them.

    Look at your financial statements for a period of at least six months, and make sure you account for busy seasons and slow seasons. See where your money is spent and how much you need on average to cover those expenditures.

    3. Your assets:

    Liquidity refers to how easily your assets can be turned into cash. Stocks and bonds can easily be converted to cash, whereas property and equipment often take time to sell and are therefore less liquid.

    The more liquid your assets are, the less cash you’ll need. If you don’t have a lot of liquid assets, you’ll want more cash accessible.

    4. Your spending situation:

    Your spending situation is based on how much of your expenditures are mandatory and how much are discretionary—that is, you can operate without those expenses. If you have a high proportion of mandatory expenses, you’ll need cash to cover them if times get tough.

    Discretionary expenses can be cut without significantly affecting business, saving you money or freeing it up for mandatory expenses. If you spend $5,000 a month on employee meals, you can easily save that money by not going out for a few months.

    The more rigid your spending situation is, the more cash you’ll need on hand.

    Cash

    Final thoughts

    A final important factor is opportunity cost. Money covers emergencies and downtimes, but keeping too much money in the bank means you’re missing out on investments that could build your wealth and quickly be converted into cash. Talking to a financial expert can help you understand your opportunity cost and whether you need more or less cash available to you.

  • Business Update – 15 September 2021

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

    We’re thinking of everyone affected by lockdowns around the country and encourage you to reach out if you have any questions about your business during this time. Read on for assistance that may be available to you.

    Vaccine Passports for International Travel

    The government has taken a major step towards establishing a vaccine passport for international travel. Last week, it was announced that the system that will enable recognition of vaccine status should be ready in a number of weeks. According to the tourism minister, Dan Tehan, it will allow Australians to use MyGov to upload proof of vaccination to a QR code linked to their passport.

    Canberra Lockdown Extended Until 15 October

    Canberra will remain locked down for a second month until 15 October, after recording new COVID-19 infections.

    Part of Regional Victoria Back Into Lockdown

    The city of Greater Ballarat will be sent back into lockdown from 11.59pm on 15 September due to the increase in COVID-19 cases. The lockdown will remain in place for seven days. Meanwhile, those living in the 12 Sydney LGAs of concern have been rewarded with a slight easing of restrictions.

    Super Weekend for Vaccinations in Queensland

    The QLD government has announced a “super weekend” for vaccinations this coming weekend, wherein all community hubs will be open and walk-ins are welcome.

    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.

    All Australian hotspots: COVID-19 Disaster Payment for recognised lockdowns

    This Federal Government support is lump sum payment for workers who cannot earn income because of a state public health order. You can check your eligibility here.

    NSW Grants

    The NSW Government will be offering financial support to businesses or not-for-profit organisations impacted by the recent COVID-19 restrictions and stay-at-home orders.

    NSW: Micro-business grant

    The micro-business grant is a $1500 fortnightly payment for businesses with a turnover between $30,000 and $75,000.

    To check your eligibility and apply, visit the Service NSW website.

    COVID-19 Business Grant

    A one-off payment to help businesses, sole traders or not-for-profit organisations impacted by the current Greater Sydney COVID-19 restrictions.

    Grants between $7,500 and $15,000 are available to eligible businesses depending on the decline in turnover experienced during the restrictions. For eligibility criteria and to apply, visit the Service NSW website.

    ATO support for those affected by COVID-19 restrictions or disasters

    The ATO has a range of support options to help those affected by disasters or those experiencing challenges due to continuing COVID-19 restrictions.

    The ATO may be able to:

    • prioritise any refunds owed to you
    • set up a payment plan tailored to your individual situation
    • remit penalties or interest charged during the time you have been affected.

    If you need help to manage your tax or superannuation obligations, please get in touch with us.

    JobMaker Hiring Credit

    Eligible employers can access the JobMaker Hiring Credit for each eligible additional employee they hire between 7 October 2020 and 6 October 2021. You may be able to claim the following payments:

    • up to $10,400 over a year for each additional eligible employee aged 16 to 29 years
    • up to $5,200 over a year for each additional eligible employee aged 30 to 35 years

    Register before the due date of the first JobMaker period you’re claiming for.

    Wage Subsidy Scheme for Apprentices and Trainees

    The government is continuing the wage subsidy scheme for apprentices and trainees. Under the scheme, the government will pay half the wages of apprentices up to a maximum of $7,000 each quarter for 12 months.

    How Business Leaders Can Prevent the “Great Resignation”

    The pandemic has turned our lives upside down, and many of us are responding by making significant changes in our personal and professional lives. With people becoming increasingly confident that they can find better work, the “Great Resignation” has ensued.

    This Forbes article outlines some ways employers can stop the mass exodus:

    • Listen and learn. Gauge your employees’ well-being. Check how they’re doing on a regular basis and find out what they need for personal and professional growth.
    • Coach to mitigate burnout. Many people leave their jobs because of burnout. So review your wellness benefits or consider adding more. You might also want to identify at-risk staff and offer mental health hours to step away from work.
    • Invest in flexibility. It might not be easy for small businesses to provide extremely high pay, but you can at least offer work flexibility. If you can ease up on conventional standards of when and where your employees work, they are more likely to stay.

    In a nutshell, it boils down to one thing: put your people first. If you need more focused business advice, get in touch with us today and let’s work out a plan!

    Get in touch

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

  • Succession Planning: A will for your business

    The unfortunate reality is most business owners don’t take proper holidays. Usually this is because their business relies on them and they don’t have the support to keep the business running without them.

    As a business owner, have you ever considered what would happen to the business if you had to take a six months break because of a serious illness or injury?

    Would the business survive? How would the bills get paid? And while it might not be nice to think about, if you were to die, are you sure your business partners would give your loved ones a fair deal? For these reasons, and many more, it’s important for all business owners to have a detailed succession plan. A succession plan is like a will, but for a business. Although there are often a wider range of scenarios and options to consider.

    Just like your will, a good business succession plan can vary from one business to the next. But there are some key areas that should always be considered, which you can find below. Chat to us if you want advice on future-proofing your business.

    Business Structure

    In the event of death or retirement, the ownership and control of the business may need to be transferred to the owner’s family or to the surviving business partners. How easily this occurs will often depend on how the business operates, such as through a trust, or a company, or without a separate entity at all.

    Succession agreements

    If something happened to one of the business partners, would their spouse or children take over the control of that share of the business? If the answer is no, then a succession agreement can assist the other business partners to continue business operations whilst allowing for compensation for the former partner’s family.

    Managing risk

    Just like personal insurance, business insurance can provide a range of protection such as temporarily meeting the normal costs of running the business (business expenses cover) or paying for a short-term replacement manager (eg. trauma or disability cover). A life insurance policy linked to the succession agreement that provides the deceased partner’s family with suitable compensation for the transfer of business ownership to the surviving partners may also be a good idea.

    Powers of Attorney

    Most small businesses struggle to do much without the advice and authority of the figurehead or main key decision-maker. That’s why a Power of Attorney is integral to a good succession planning process. It helps the business to physically operate if the owner is incapacitated because of illness or injury.

    There is a range of people who may need to be involved in setting up a succession plan, including a financial adviser, lawyer and accountant. We can help you find the right team for you.
    Even if you have a plan in place already, it is important to review agreements and insurance policies so they’re up to date and reflect the current value of the business.

    Need a succession plan?

    Chat to us to get started. We’re here to help you run a successful business and protect your assets, now and in the future.

    We at S & H Tax Acountants help Small business in Accounting, Tax and Bookkeeping. we are Accountants located in southeast of Melbourne. We offer Tax agent services in Cranbourne, Clyde and surrounding areas.

  • 5 Funding Options for Start-ups

    5 Funding Options for Start-ups

    Starting your own business requires enough capital to ensure you can pay your bills until your company turns a profit. Depending on the type and size of your business, you may need thousands of dollars monthly to cover overhead.

    Start Up Business Goals Strategy

    If you’re wondering where to find business start-up funding, there are a variety of options available to you. Each of these options has its advantages and disadvantages, and it’s important to pick the funding that meets your needs and works for your business.

    Here are 5 funding options for start-up companies.

    1. Personal investment

    Also known as bootstrapping, personal investment means you put your own assets into your company. Banks and other funders want to see that you’ve invested financially in your business—this suggests to them that you’re committed to the venture.

    If you can fund your business personally without risking your financial future, it might be worthwhile. Funding your business means you don’t have to give up control or allow others a say in how you run things. Doing so, however, means your finances are on the line if things don’t go as well as expected.

    2. Friends and family

    If your friends and family have capital to invest, you can turn to them for funding. They loan you their capital that you repay when your business makes a profit. The interest rates are usually much better than you would get at a financial institution and the repayment terms are more flexible.

    The issues arise with borrowing money from loved ones. Friends and family rarely have capital to invest and they may want equity in your business. If you face financial problems down the road, they’ll be affected, which can strain your relationship.

    3. Investors

    Your business might be the right model to take on either venture capitalists or angel investors. Both inject much needed start-up capital into a business, but each requires some form of control.

    Venture capitalists invest in companies with high-growth potential, and they expect a healthy return on their investment. You’ll give up some ownership or equity in your company in exchange for their financial backing. If you go with venture capital, make sure the investors you bring in have relevant experience in your industry.
    Angel investors often invest in small start-ups and help people by contributing financially and with their expertise. They may not expect high returns for their investment but they may want a managerial role in your company.

    4. Business incubators

    Also known as accelerators, business incubators provide financial support and logistical resources to new companies—for example, they might offer a laboratory so your new business can develop its products before starting production. Once the business enters a production phase, it leaves the incubator.

    5. Grants, loans and subsidies

    Government agencies and financial institutions offer grants, loans and subsidies for start-ups. The competition for grants and subsidies is high, and the amount you receive varies. Many grants require you to invest your own money or prove you have funding from other sources.

    Bank loans require you to prove you have a solid business idea and are capable of repaying the loan. If you’re a new entrepreneur, you may have to provide a personal guarantee that the money will be repaid.

    Final thoughts

    There are numerous funding options for your start-up, each of which has advantages and disadvantages. Knowing how much money you need to cover your initial costs, how long it will take to turn a profit and how much control you’re willing to give up in exchange for funding will help you choose the option that’s best for you.

  • 4 Ways Small Start-ups Can Take On Established Competitors

    Starting a business means you’ll be in competition with other companies that already exist. It’s actually a good thing if you have competition to go up against. Competition pushes you to be innovative. It also means there’s an established market for your goods or services.

    The key to benefitting from competition is knowing how to effectively take on competitors so your company earns a profit. Here are some ways to get ahead of established companies and grow your business.

    1. Respond to customer needs

    Large businesses have weaknesses. The bigger they are, the less personalised and responsive their service is. They market themselves to a wider audience and, because their overhead is higher, they have to bring in more clients to cover their costs.

    In this respect, your size is an advantage. Fewer customers means more personal service. That opportunity for relationship building will entice customers who are looking for extra attention.

    Examine what people love about your competitors but also what frustrates them. Build your business to address those gaps. If you find early on that something isn’t working with your customers, don’t be afraid to shift. Be innovative in responding to market changes and customer demands. You’ll have an easier time making that change early than once you’re more fully established.

    2. Show what makes you different

    Your business offers something different from the established brands. If you didn’t have something unique, you wouldn’t be starting a business. You’re different from what’s already out there—and that’s what makes you attractive to your target market.

    Do you offer goods that are only locally produced? Products that are ethically sourced? Do you have special knowledge or expertise in your industry? Are you offering a service that has a new component, such as a technological advantage? Does your product fill an existing gap in the market? Whatever it is that makes you different, market that. Make sure people know why and how you’re unique.

    3. Take advantage of existing knowledge

    If there’s already established competition in your industry, that’s a good thing. It means someone has already done vital research on your customers’ needs and pain points.

    You can learn from the knowledge that already exists by studying your competition. Look at their website, social media and review sites. Take note of how they sell their goods or services. Are they using tactics relevant for you? Are their strategies effective? Are there weaknesses in their marketing or offerings that you can address?

    Rather than spending your money doing your own research, learn from the businesses that have gone before you.

    4. Focus on your audience

    There’s room enough in most industries for competition. While it’s a good idea to know who you’re up against, ultimately your customers are your priority. Focus your efforts on providing goods and services that are meaningful to them, that address their pain points and that make their lives better. Market yourself to make those aspects clear. Show them why you’re the ideal company for them to buy from.

    Final thoughts

    By using these 4 strategies you can effectively take on the competition and help your start-up business be successful.

  • 5 Ways to Recover After a Financial Setback

    You started your business with plans of earning a living and being successful, but an unfortunate fact of business life is that companies suffer financial hardships. Whether those hardships are pandemic-related or linked to other urgent situations, the effect is still the same. Your finances are negatively affected and it’s up to you to lead the recovery.

    Here are 5 steps you can take to help your business recover after a financial setback.

    1. Find areas to cut back

    As a business owner you’ll always have expenses, but there are ways to reduce your spending and save money. Negotiate rates with your suppliers or find out if you can make arrangements for a discount. If not, see if you can switch providers. Look for ways to cut back on office expenses. Can your company work remotely? Can some of your office space be rented out? Can you change utility providers?

    You likely don’t want to cut back on your staff if possible, but you may have to. If you don’t want to lay staff off, try reducing hours or cutting back on perks until things turn around.

    2. Follow up with clients that owe you money

    During busy times it’s tempting to be more laid back with clients who owe you money. When you’ve had a financial setback it’s important to take stock of who owes you money and start collecting. Go through your invoicing system and follow up with anyone who owes you money. You might be surprised at how much could be coming your way.

    If cashflow is a concern, consider charging clients a deposit to work with you. Doing so speeds up how quickly you have money coming in.

    3. Diversify your income

    Governments around the world are offering assistance to small businesses affected by the pandemic. Look into business grants and income support schemes in your area designed to help your business recover.

    Consider other ways of diversifying your income. If you’re an expert in a particular field, offer virtual courses or workshops to teach other people what you know. If your business is a brick and mortar store, offer online shopping or curbside pickup. If you offer services in one niche, consider whether another niche might be closely enough related to yours to allow for expansion.

    4. Review your budget

    If your budget was created before the financial emergency, go over it again and revise it as necessary. See if anything in it can be removed or delayed. If you planned on offering training seminars for employees, consider postponing for a few months. If you budgeted to expand your business, hold off until you’re more financially stable.

    5. Increase your marketing

    You need to bring in customers. To do this, you need to market your business. Traditional advertising can help, but there are more cost-effective ways to go about it. Explore content marketing or social media. Consider email newsletters or search engine optimization.

    Marketing reminds people about your business, and although it may seem like a bad idea to spend money at the moment, some spending is worth it in the long run. Not all marketing is expensive—and some can be just as effective as traditional advertising.

    Final thoughts

    Financial setbacks are upsetting and frustrating, but they don’t mean your business is finished. Follow these strategies to give your company the best chances of recovery.

  • Business Update – 18 August 2021

    Business Update – 18 August 2021

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

    We’re thinking of everyone affected by lockdowns around the country and encourage you to reach out if you have any questions about your business during this time. Read on for assistance that may be available to you.

    Tougher COVID-19 Restrictions in Melbourne

    New stricter COVID-19 restrictions came into effect in Melbourne at 11:59pm on Monday and will be in place until 2 September.

    As part of the new restrictions, playgrounds, basketball courts, skate parks and outdoor exercise equipment will be closed and people will no longer be allowed to remove their masks to consume alcohol outdoors. Meanwhile, large construction projects will be restricted to 25%.

    Curfew will also be in force from 9:00 p.m. to 5:00 a.m. each day.

    Sydney Lockdown Fines Increased to $5,000

    State police will fine people up to $5,000 if they are found breaching stay-at-home orders or lying to contract-tracing officials. It is also looks increasingly unlikely that Sydney will end its nine-week lockdown on 28 August as planned.

    SA Blocks Travellers From Parts of NT, Greater Darwin Enters Snap 3-day Lockdown

    South Australia closed its border to travellers from several local government areas north of the Central Desert and Barkly LGAs — excluding the East Arnhem LGA — in the Northern Territory as of 6:00 p.m. Monday night.

    Only returning South Australian residents, essential travellers, those who are relocating, and people escaping domestic violence will be allowed to enter SA from the affected LGAs. Meanwhile, Greater Darwin and Katherine entered a three-day lockdown at noon on Monday after one positive case of COVID-19 was recorded.

    Victorian Business Costs Assistance Program Round 2 July Extension

    The Victorian Government’s Business Costs Assistance Program Round Two July Extension (BCAP2e) gives eligible businesses that had not previously applied for the Program in June, or have since become eligible, with the opportunity to apply for the equivalent of the July Top-Up Payments.

    The program offers grants of $4800 to eligible businesses, including employing and non-employing businesses, depending on their industry sector.

    Read the eligibility criteria here.

    All hotspots: COVID-19 Disaster Payment for recognised lockdowns

    This Federal Government support is lump sum payment for workers who cannot earn income because of a state public health order. You can check your eligibility here.

    NSW Grants

    The NSW Government will be offering financial support to businesses or not-for-profit organisations impacted by the recent COVID-19 restrictions and stay-at-home orders.

    NSW: Micro-business grant

    The micro-business grant is a $1500 fortnightly payment for businesses with a turnover between $30,000 and $75,000.

    To check your eligibility and apply, visit the Service NSW website.

    COVID-19 Business Grant

    A one-off payment to help businesses, sole traders or not-for-profit organisations impacted by the current Greater Sydney COVID-19 restrictions.

    Grants between $7,500 and $15,000 are available to eligible businesses depending on the decline in turnover experienced during the restrictions. For eligibility criteria and to apply, visit the Service NSW website.

    JobSaver payment

    JobSaver is a fortnightly payment to help maintain employee headcount (as at 13 July) and provide cashflow support to businesses. To check your eligibility and apply, visit the Service NSW website.

    Small business fees and charges rebate

    If you are a sole trader, the owner of a small business or a not-for-profit organisation in NSW, you may be eligible for a small business fees and charges rebate of $1500 aimed at helping businesses recover from the impacts of COVID-19. Applications are open and you can check your eligibility here.

    You can view more NSW Government COVID-19 Support Packages here, including Jobs Plus, Sydney CBD Friday vouchers, Payroll tax support and support for the tourism industry. Get in touch with us if you have any questions.

    QLD COVID-19 Business Support Grant

    Your business may be eligible for financial support through the 2021 COVID-19 Business Support Grants. $5,000 grants will be made available to small and medium businesses across Queensland affected by COVID-19 lockdowns and lockdowns in other states. You must have experienced a 30% reduction in turnover as a result of the lockdown.

    Applications will open in mid-August so we will keep you updated.

    The Business Queensland website has an overview of the range of assistance available.

    Fuel Tax Credit Rate Hike

    Fuel tax credit rates increased on 2 August 2021 in line with fuel excise indexation. If you claim less than $10,000 in fuel tax credits per year, you can use simplified methods including:

    • the rate that applies at the end of your BAS period
    • the Basic method for heavy vehicles to calculate your claims if you use a heavy vehicle.

    You can find the updated rates here and use this fuel tax credit calculator to work out your claims. If you need more help with your tax, contact our tax agents today!

    Government Support for Best Emerging Innovators in Western Australia

    A total of 21 start-ups and SMEs have been awarded up to $20,000 each by the Government of Western Australia. A total of $385,000 has been given through the Innovation Vouchers Program, which aims to assist Western Australian innovators in commercialising their ideas and creating new jobs.

    Since its launch in 2011, the Innovation Vouchers Program has awarded 199 vouchers worth approximately $3.7 million.

    Downsizer Contribution Into Superannuation

    If you’re at least 65 years old and you meet the eligibility requirements, you may be able to make a downsizer contribution into your superannuation of up to $300,000 from the proceeds of selling your home.

    Your downsizer contribution will not affect your total superannuation balance until your total super balance is re-calculated to include all your contributions, including your downsizer contributions at the end of the financial year.

    It will count towards your transfer balance cap which applies when you move your super savings into the retirement phase. You can also access the downsizer scheme only once, and if you sell your home and choose to make a downsizer contribution, you will not be required to purchase another home.

    Get in touch with us to check your eligibility and if you have any questions.

    ATO support for those affected by COVID-19 restrictions or disasters

    The ATO has a range of support options to help those affected by disasters or those experiencing challenges due to continuing COVID-19 restrictions.

    The ATO may be able to:

    • prioritise any refunds owed to you
    • set up a payment plan tailored to your individual situation
    • remit penalties or interest charged during the time you have been affected.

    If you need help to manage your tax or superannuation obligations, please get in touch with us.

    JobMaker Hiring Credit’s Second Claim Period

    The second claim period of the JobMaker Hiring Credit is now open. So if you’ve taken on additional young employees between 7 January and 6 April 2021, you may claim the following payments:

    • up to $10,400 over a year for each additional eligible employee aged 16 to 29 years
    • up to $5,200 over a year for each additional eligible employee aged 30 to 35 years

    Register any time until the scheme ends.

    Wage Subsidy Scheme for Apprentices and Trainees

    The government has announced the expansion of the wage subsidy scheme for apprentices and trainees. Under the scheme, the government will pay half the wages of apprentices up to a maximum of $7,000 each quarter for 12 months. Ask us if you have any questions.

    4 Ways Your Business Can Increase Its ROI in 2022

    Finding ways to boost your business’ profit margins can be challenging, especially if you’ve already tried many of the traditional ways of improving the stability of your cash flow during the pandemic. This Forbes article shared some unusual methods to grow your ROI.

    1. Invest in high-performing marketing platforms. Look into platforms that are not as saturated as Facebook, including Youtube and Instagram. You could also switch gears by starting a company podcast.
    2. Automate more tasks. Automate more tasks with the assistance of AI-driven tech and integrations to free up your team’s time and allow them to focus on getting higher level work done.
    3. Unclog your sales pipeline. Sit down with your sales team and outline your customer journeys. Remove stumbling blocks and friction points to improve your sales pipeline and speed up your sales cycle.
    4. Reorganise your team. Switching responsibilities between team members could improve your efficiency and may allow you to keep the same amount of core staff while scaling your business.

    Do you need expert advice on your specific situation? Get in touch with us today and let’s work out a plan!

    Get in touch

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

  • Cash Flow Advice for Small Businesses

    Solid cash flow management is vital to ensuring your business survives, but not everyone understands what cash flow is or how to manage it. That’s likely what makes it a leading cause of stress for small business owners. In fact, a Capital One study found that 42% of small business owners say cash flow management is a major concern for them.

    Cash flow refers to the movement of money into and out of your business. It’s based on the amount of money you bring in minus the amount you spend. A positive cash flow means you’re bringing in more than you’re spending. A negative cash flow means you aren’t bringing in enough to cover your expenses. Your company can run into problems by not charging enough for goods or services, having clients who are chronically late to pay, growing too quickly or simply spending too much money.

    Cash flow can vary throughout the year, depending on sales cycles or whether you’ve made a large purchase. Here are three strategies you can use to gain control over your cash flow.

    Cash

    1. Understand your profitability

    Managing your cash flow is great, but it won’t help you if your business isn’t profitable. Take a look at each of your products and services to determine how much they bring into your business compared with how much you spend to provide them. Find any inefficiencies in your processes and eliminate them if possible. Figure out where your business is most profitable and where you’re dealing with cost overruns.

    The basis of a solid cash flow is ensuring you offer goods and services that are profitable and help you obtain your goals, while reducing those that negatively affect your finances. You may need to increase your prices to reflect the cost of goods sold, or stop selling lower-margin products or services.

    Similarly, take a look at your clients. Are there some that you are undercharging or spending too much time and energy on? Can you increase their fees or find higher-paying clients?

    2. Write a cash flow forecast

    Your cash flow forecast (also called a cash flow projection) predicts how your business will perform financially over a set period. It’s a good idea to have a cash flow forecast for a year, broken down into quarters and months. Audit services in Melbourne can help you in auditing your cash flow.

    The projection takes into account your revenue and expenses over those set periods, and helps you figure out how much you need to make in that period to cover your expenses. It can also allow you to anticipate any upcoming cash flow issues, such as slower periods that may require you to cut back on expenses. If you have any anticipated big-ticket items you’ll need to buy or plans to expand your business, include those in your forecast.

    Periodically check your actual cash position against your projection to see how you’re doing and if you need to make any adjustments.

    3. Use technology to keep on track

    There are plenty of software solutions that can help you gain insight into your company’s cash flow. They can help you build projections and get a real-time view of how your business is doing. This information can then be shared among company managers, so everyone has an idea of how the company is doing financially and where strategies need to be put in place or altered to get you back on track.

    Additionally, invoicing software and project management software can be used to encourage faster, easier payment from clients and keep projects on budget. This will also improve your cash flow.

    Final thoughts

    Many business owners find cash flow management stressful, but with a little information, and planning, and by using the right tools, you can have better insights into your company’s financial situation. Those insights will help you make better decisions for your business and gain control over your cash flow.

    Visit for Business Advisory Melbourne.

  • Tax Implications of Cryptocurrency (AU)

    Tax Implications of Cryptocurrency (AU)

    With cryptocurrencies gaining notoriety, many people are unclear on how or when they can be taxed. Despite widespread belief to the contrary, you can be taxed on gains made as a result of obtaining or using cryptocurrency. If you’ve made a profit from trading cryptocurrency, for example, you need to declare it at tax time.

    Here is some important information on cryptocurrencies and their implications for your taxes.

    How cryptocurrency is defined

    For tax purposes, the Australian Tax Office (ATO) defines cryptocurrency as “a digital asset in which encryption techniques are used to regulate the generation of additional units and verify transactions on a blockchain.” This includes Bitcoin, or other digital currencies with characteristics that are similar to Bitcoin.

    The ATO says cryptocurrency—including Bitcoin—is not Australian currency and is not foreign currency.

    How cryptocurrency is taxed

    You can be taxed on your profits when you exchange cryptocurrency for another currency, other cryptocurrencies, or to purchase goods or services. If they are used in business or professional activities, they may be taxed as income. For example, professional cryptocurrency trading or mining, operating cryptocurrency-related businesses, or operating a business using cryptocurrency transactions all count as income.

    If the cryptocurrency is used in other ways—such as casually or as a hobby—it may be taxed as an investment and subject to capital gains taxes.

    You are not subject to capital gains until you exchange or otherwise dispose of your cryptocurrency holdings. Typical transactions include:

    • Selling cryptocurrency
    • Gifting cryptocurrency
    • Trading or exchanging cryptocurrency for another cryptocurrency or fiat currency
    • Converting cryptocurrency to fiat currency
    • Exchanging cryptocurrency to purchase goods or services

    A capital gain on any of the above transactions, will result in being taxed on part or all of the gain. If you hold the cryptocurrency for more than a year before exchanging, selling or trading it, you may receive a 50% capital gains tax discount. If you have losses on the cryptocurrency exchange, you can use those to reduce capital gains in that year or future years.

    Cryptocurrency obtained or held as an investment may be subject to capital gains taxes. Your reason for purchasing or keeping the cryptocurrency is as important as the reason for exchanging it. Even if you use it for a personal purchase, if you acquired it as an investment you must report it and it may be taxed as a capital gain.

    Keeping proper records

    No matter your reasons for purchasing, holding or using cryptocurrency, it’s important that you keep proper, detailed records of all cryptocurrency transactions. This means keeping a record of the date of each transaction, the value of the cryptocurrency in Australian dollars at the time of the transaction, the purpose of the transaction, and the other party’s details.

    Keep all receipts of any transaction including cryptocurrency and records of all costs associated with the transaction.

    Final Thoughts

    If you’ve been involved in any cryptocurrency transaction in the past year, it’s important that you keep proper records and report the transaction to ATO. Although many people think they do not have to pay taxes on cryptocurrencies such as Bitcoin, ATO views them as income or investments and they can affect your taxes. We at S & H Tax Accountants can help to lodge a tax return with Crypto trading, our accountants are highly experienced and well qualified. Book an appointment today with S & H Tax Accounting, call us at 03 8759 5532 or email us at info@sahtax.com.au

  • 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.

  • 3 Tips to Make the Most of the End of Financial Year

    Preparing your End of Financial Year (EOFY) information often feels stressful—there are receipts to sort out and reports to review, and you need to make sure you have all the necessary information about your income and expenses. It can be overwhelming, and it can make the EOFY feel daunting.

    The end of the financial year isn’t just a time to collect receipts and find invoices, however. It’s also a time to reflect on how your past year went, what went well and what didn’t, and what you can change for next year.

    Here are 3 tips so you can make the most of your end of financial year.

    1. Consider redoing your files

    One of the most overwhelming parts of the end of the financial year is finding all the invoices, receipts and reports you need so you can properly file your taxes. Pay attention to how easy it was—or wasn’t—to find what you needed his past year.

    Did you have to search 15 different places for all your receipts? Did you have a combination of online and physical invoices? Did you have clearly labelled folders for everything? Did you leave everything for the last minute?

    If you found yourself searching high and low for every piece of paper you needed, you might want to consider revising your paperwork so it’s easier and less time consuming to manage.

    Can you keep track of everything through software and apps? Is there technology or equipment that can help you? Is it worth investing in a filing cabinet?

    The effort you put now into sorting your paperwork will pay off hugely every year when you can quickly and easily find all the information you need. Let’s face it, you’ll come up against the end of the financial year every year so you may as well be systematic about it.

    2. Reflect on your year

    The end of the financial year is a perfect time to reflect on how the past year went. Celebrate the big successes, but remember to focus on other victories as well. Even if you didn’t meet your financial targets, did you survive a particularly tough year? Did you manage to pivot your business and try a new model? Did you take some risks and learn from them? Did you grow your business or expand your offerings?

    It’s great to have goals for each year and celebrate when you achieve them, but it’s also important to look at where things didn’t go according to plan and how you grew from those situations. You may need to refine your business plan if you’re not meeting your financial targets, or rethink how you arrive at your goals in the first place.

    Do this before you start planning the year ahead, so you can revise your strategies going forward.

    3. Plan for the future

    Now that you’ve reflected on what went well and what went sideways last year, you can better plan for next year. Research upcoming events and schedule your marketing calendar. Plan ahead to address slow times or busy periods. If you didn’t meet your financial targets last year, either change how you set your goals or your strategies for achieving them.

    Many retailers offer big discounts at the end of the financial year. Does it make sense for you to make a purchase right now? Should you buy new equipment, technology or other goods at this time? It may be worth it, if you have the money to do so and you need those items.

    Final thoughts

    Although the end of the financial year can feel stressful, it’s also a fantastic time to reflect on the past year and celebrate your achievements. You can take the time to plan ahead and incorporate the lessons you learned from the past year to make the upcoming year your most successful. You can contact us on 03 87595532 if you need help.

     

  • Victorian Government has announced Grants for Licensed Hospitality Venue and Costs Assistance Program

    Victorian Government has announced Grants for Licensed Hospitality Venue and Costs Assistance Program

    Victorian Government has announced Grants for Licensed Hospitality Venue and Costs Assistance Program

    Program overview Licensed Hospitality Venue

    The $70 million Licensed Hospitality Venue Fund 2021 supports eligible licensed hospitality venues.

    Grants of $3,500 for businesses with a premises in regional Victoria and $7,000 for businesses with a premises in metropolitan Melbourne will be available to eligible liquor licensees operating a restaurant, hotel, café, pub, bar, club, or reception centre that is registered to serve food and alcohol.

    • Eligible liquor licensees with an eLicence email address will receive an email containing their grant application link from Business Victoria from Thursday 3 June 2021.
    • Liquor licensees without an eLicence email address must set one up on their Victorian Commission for Gambling and Liquor Regulation Liquor Portal by 20 June 2021 to receive their grant application link from Business Victoria within five business days.

    Business Costs Assistance Program Round Two

    The Victorian Government’s $371 million Business Costs Assistance Program Round Two will assist eligible small to medium businesses most affected by the restrictions announced on Thursday 27 May 2021 and extended beyond Thursday 3 June 2021.  The program offers grants of up to $5,000 to eligible small and medium businesses, including employing and non-employing businesses. The grants will support businesses in eligible sectors directly impacted by restrictions.

    Eligible businesses with an annual payroll of up to $10 million can receive grants of $2,500 or $5,000.

    (ref: Business Victoria)

    If you need an assistance with application for the grant then call S & H Tax Accountants on 03 87595532 or complete the followig form so we can contact you asap

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  • 5 Steps to Early Retirement

    For some people, early retirement is a choice. For others, it’s a necessity. Regardless of which group you fall into, there are some steps you can take to help make early retirement a reality and live the life you dream about.

    1. Know your goals

    Before you know exactly how much money you need to save, you need to know your goals for retirement. Do you want to live in a small home in a small town? A luxury condo in the city? Travel around as much as possible (when it’s possible)? What sort of lifestyle do you see yourself living after you retire? Do you want to retire entirely or are you planning on leaving a corporate job to follow your creative dreams? Will you still earn a bit of an income, but on a very part-time scale?

    The answers to those questions can help you determine how much money you need to save now—and how aggressively you need to save—to set you up for early retirement. Establish what you want your daily retirement life to look like so you can better plan for it.

    2. Have a retirement budget

    The information that you came up with about the type of lifestyle you want to live will help you create a workable retirement budget. How much of your budget do you want to spend on groceries and utilities? How much do you need to save for home repairs or renovations? Will you want to downsize your living space?
    Anticipate any healthcare costs that could come up. You can’t plan for everything, but remember that healthcare costs tend to increase as you age. Be prepared financially for those charges.

    3. Pay off your mortgage

    The fewer expenses you have in retirement, the better for your cash flow. Not having a monthly mortgage drastically reduces your expenses when you’re no longer earning a steady income. As a bonus, when you pay off your mortgage early (without fees for paying it off too quickly) you’ll likely pay less in interest. So you’ll be saving yourself even more money.
    Knowing that your home is paid off entirely gives you a great deal of financial freedom and security in your retirement years.

    4. Have a financial plan

    You need a financial plan that sets out your goals, expenses, income and debts so you know where your finances sit. Any major purchases should be checked against this plan, keeping you on track as you move toward your goals.

    Review and revise your plan as necessary—if you’ve been set back by any major expenses, see if there are ways you can limit your spending in other areas. Or see if there are ways you can earn additional income while you’re still working.

    Remember that if you’re saving for long-term wealth, you’ll need to live below your means. Reduce your expenses where possible and increase your income.

    5. Generate passive income

    Cutting expenses can help you save some money, but diversifying your income streams to include passive income, such as real estate, can be more lucrative. Your passive income can be developed to cover your monthly expenses, which enables you to become financially independent much more quickly.

    Final thoughts

    Regardless of why you’re looking to retire early, having a solid plan in place and following the above steps can help you reach the financial independence you need to feel comfortable leaving your job.

    It’s important to live in the present even while you’re looking to the future. You’ll have to sacrifice some things to stay on track financially, but don’t give up everything. Treat yourself sometimes and celebrate when you reach your goals.

  • 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.

    Cheerful Leader Motivating His Business Team 1262 3713

    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.

  • 10 more quick growth tips for small business owners

    10 more quick growth tips for small business owners

    Help grow your business through collaboration, expansion, improved marketing and some of the following quick tips.

    (more…)

  • How to build a business you can sell

    Many entrepreneurs start their business with the goal of earning an income for themselves, but they often think of the business only in terms of them running it.

    In truth, there is a huge benefit to starting a business either with the goal of selling it or at least setting it up so it can be sold at some point in the future. You don’t have to plan on making a fortune off the sale, but the efforts that go into creating a sellable company will also increase the chances your company thrives while you’re in charge.

    Here are some things you can do to increase the chances your business can successfully be sold.

    1. Put effort into it

    Whether you plan on staying in your business for a long time or are looking to sell as soon as possible, you need to run your company as though you’ll be around for a long time. A sellable business is one that is thriving, which takes time and energy. Don’t start up a business to sell if you think you can give it a fraction of your attention before you walk away. That could lead to a scenario in which no one wants to buy your company.

    Invest effort in your company and you’re more likely to be rewarded with a business that people want to buy, and pay top dollar for.

    2. Keep your arrangements simple

    Complicated financial arrangements make selling a business more difficult. If there are too many investors who have different ideas about how the business should be managed, or when it can be sold, you may find yourself unable to sell even if you truly want to.

    If you are involved in partnerships, make sure you are all on the same page about the circumstances that will lead to a sale. Ensure that your financial ties and arrangements are transparent, so buyers aren’t surprised when they complete their due diligence.

    3. Develop standard operating procedures

    You may like to take care of everything yourself, but that’s not practical if you want a business that thrives—and one that can be sold. To sell your business, you need procedures that can be done by anyone, regardless of whether you’re in the picture or not.

    Developing and writing out standard operating procedures helps your current team run the business in your absence and makes your business more attractive to potential buyers.

    4. Consider the conditions that would make you want to sell

    Even if you don’t intend to sell your business, life can get in the way. A variety of circumstances can make it so you need or want to sell your company. Rather than making an emotional decision in the heat of the moment—which could result in you getting far less than you should—think about the circumstances and conditions that could lead to you selling your business.

    What life circumstances would cause you to sell? Divorce? Illness? Retirement? What about the financial circumstances? Is there a minimum amount you want to get out of your business if you do sell? Would you sell right away if someone walked through the door and offered you X amount of dollars? Would you sell if the business were no longer making you happy? If so, what does that look like for you? What are the indicators you’re no longer satisfied with owning your company?

    Keeping these circumstances in mind makes it less likely you’ll make an emotional decision and more likely you’ll make a rational one.

    Final thoughts

    Regardless of whether or not you plan to sell your business, running your company as though you will one day helps create a successful, thriving organization that is much easier to find buyers for.

    That’s important because you never know what the future will bring.

    Contact us to find out how we can help you build and sell a valuable business.

  • Important Change for Employers: Superannuation Guarantee increasing to 10% on 1 July 2021

    A Quick Overview

    The Superannuation Guarantee (SG) is scheduled to increase to 10% from 1 July 2021. If you have employees, you need to be ready for this legislated increase.

    What is Superannuation Guarantee?

    The Superannuation Guarantee is the minimum super an employer must pay to their employees super fund. The current SG percentage rate is 9.5% of employees Ordinary Time Earnings, but this is changing.

    Ordinary Time Earnings or OTE, is generally what your employees earn for their ordinary hours of work. It includes commission, loadings and allowances but does not include overtime or reimbursements. The ATO’s checklist will help you categorise OTE, but you can ask us if you have questions.

    What is changing?

    The Superannuation Guarantee rate is increasing to 10% from 1 July 2021. It will continue to increase by half a percent each year until it reaches 12% on 1 July 2025.

    What do you need to do?

    • Firstly, you should speak to your payroll software provider to make sure they are on top of this rate change. Your accountant or bookkeeper may also be able to help.
    • Review any individual agreements with an SG rate of more than 9.5%, but less than 10%.
    • Notify your employees as they may need to review their Salary Sacrifice or after-tax contributions arrangements.
    • Update Remuneration Packages as it could mean a pay decrease for employees.
    • This is also a good opportunity to do some housekeeping to ensure your super obligations have been met (including super payments and calculations).

    Why is this important?

    As an employer, it’s important to ensure you pay super at the new minimum rate. There are financial penalties applied for not meeting your SG obligations.

    The Superannuation Guarantee Charge (SGC) is the penalty charged when employers don’t pay :

    • the required super guarantee contributions for eligible employees,
    • super contributions by the payment cut off date or
    • super to each employee’s chosen super fund.

    More changes expected from the 2021 Budget

    Treasurer Josh Frydenberg announced future super changes in the 2021 Federal Budget. Under the current superannuation arrangements, if an employee earns less than $450 per month from one employer, they are not entitled to receive the superannuation guarantee. The $450 threshold is set to be scrapped so employees will be entitled to employer-paid superannuation, regardless of how much money they earn.

    This Government has indicated they expect this to come in before July 2022. We will keep you updated.

    Got a question?

    Get in touch with us if you need any help or have any questions.

  • Federal Budget 2022: What it means for you

    Federal Budget 2022: What it means for you

    Treasurer Josh Frydenberg has released the 2021-22 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. 

    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 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.

    Medical 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.

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