S & H Tax Accountants

Category: Firm News

  • Five Ways to Manage a Healthy Cash Flow

    We cannot stress further the importance of properly managing your cash flow to ensure the smooth running of your business. However, in times of crisis such as the ongoing COVID-19 pandemic, this becomes more than important– managing your cash becomes a necessity for survival.

    If you are experiencing cash flow troubles, here are five things you can do to manage your cash flow better.

    1. Check your expenses.
      Now is the perfect time to review where your money is going and check which expenses can be minimised or eliminated completely. Re-evaluate your expenses and decide which ones are essential and should stay, and which ones can be trimmed down or cut altogether.
    2. Negotiate your debt.
      Initiate a discussion with your lenders if interest only or deferred payments on outstanding debts is possible.
    3. Reduce your rent.
      There are some government-backed rent assistance schemes which subsidise a portion of your rent and/or require landlords to waive part of it. Aside from this, you can further reduce your rent by checking if it makes business sense to move to a smaller space, close down other offices or stores that are not performing well, or move to a more affordable commercial space within your budget.
    4. Request for more flexible payment options.
      It never hurts to ask, especially if you’ve been transacting with your vendors for a long time and you’ve established a certain level of mutual trust and confidence. You can request for more flexible payment options or longer payment terms.
    5. Tap into available credit lines.
      Take advantage of available lines of credit and place the funds in interest-bearing accounts.

    Assessing your cash flow is fundamental to gaining a better understanding of your business’ financial health. As cash flow experts, we can do your monthly, weekly, or even daily cash flow statements. This gives you visibility on where your cash comes in and goes out to, as well as allows you to plan ahead.

  • 5 Most Common Accounting Mistakes That Could Hurt Your Business

    5 Most Common Accounting Mistakes That Could Hurt Your Business

    Many small business owners tend to handle their own accounting and bookkeeping, especially when they’ve just started out. However, keeping track of the finance-side of the business– everything from income to expenses to tax compliance– can be overwhelming.

    Mistakes can happen quite easily and can have costly consequences to your business. Below are five of the most common DIY accounting errors that you should avoid.

    Unorganised Records

    It takes excellent organisation skills to be able to do your bookkeeping and accounting right. You would need to keep a record of every transaction, keep receipts or digitise them for future reference, calculate taxes accurately, and more. If your records are not kept organised and updated, it is highly likely that you’ll miss something out, which could get you into trouble during the tax season.

    No Accounting Schedule

    As a business owner, there are surely a lot of other things that you need to attend to and accounting can easily be pushed to the bottom of your seemingly endless To-Do list. Yet, it is extremely important to set an accounting schedule to add your recent income and expenses into your records. If daily updating is not possible, at least dedicate some time once a week to do your accounting.

    Unreconciled Accounts

    Regularly check if your bank account reflects the same balance as you record your cash flow and other financial data into your books. If you find a gap, there is likely a mistake somewhere that you need to find or even a fraudulent transaction. Taking immediate action will help you prevent worse problems further down the line.

    Failing to Take Into Account Small Transactions

    It can be easy to forget about minor transactions such as the office supplies that you picked up on your way to the office or the freebie that you sent a loyal customer. However, no matter how small you think the transaction is, it’s important to keep a record and get a receipt. In case of a tax audit, you will need to be able to present records of ALL business expenses, even these small ones.

    Not Backing Up Data and Using an Accounting Software

    Imagine if the laptop where you store all your financial data was stolen, lost, or broken beyond repair and you don’t have a back up. You would need to redo everything from scratch, which could be a huge waste of time.

    If you’re still using a spreadsheet or paper ledger to keep track of your business finances, you might want to consider upgrading into a cloud-based accounting software such as Xero, QuickBooks, and MYOB. By migrating to the cloud, you will be able to easily back up your accounting data and even access them wherever and whenever you need to.

    These cloud-based accounting systems also integrate well with your bank account and other powerful business apps. The results are streamlined processes, less manual work, enhanced efficiencies, and better overall business performance.

    Spend Less Time on Your Books and More Time on Your Business

    While being aware of these common accounting mistakes could help you avoid them, the most convenient and efficient approach to stay on top of your business finances is still to entrust your accounting to the experts. Our team of experienced accountants can integrate the most suitable cloud accounting software for your business and even train your in-house staff on its proper implementation.

    Let us take charge of your books, while you focus on growing your business. Get in touch with us today!

    We understand that making sure that your accounts are accurate and organised can be tedious. That is why S & H Tax Accountants are here to help. Our team make it easier for you, as we are able to keep your records organised and accurate. S & H Tax Accountants pride themselves in providing the best possible level of service to our clients. Make a booking today at S & H Tax Accountants, call us at 03 8759 5532 or email us on info@sahtax.com.au

  • 7 Practical Tips to Trim Your Overhead Expenses

    Every small business owner knows how challenging it is to cut down expenses without somehow compromising internal or external quality. Regardless of the nature of your business, the first step to reducing your overhead costs is to take the time to go through every single expense you have. Next, assess which ones are necessary for your business to operate smoothly, what can be trimmed down, and what can be eliminated completely.

    In this article, we will give you some smart and practical tips that you might not have considered to lessen your costs while maintaining employee and customer satisfaction.

    Shift to Remote Work Setup

    The COVID-19 crisis led to the widespread adoption of remote work setup– and it actually works. Depending on your type of business, you might want to consider making a permanent shift to telecommuting for certain roles to reduce costs. If you still need to maintain a physical office, you might move to a smaller office space to account for the smaller number of in-office staff.

    Negotiate With Suppliers

    Don’t hesitate to contact your suppliers and vendors to request for flexible monthly payment plans or discounts especially with the current tough economic climate. They are often willing to help out small- and medium-sized business clients and cut them a break.

    Review Your Software Subscriptions

    It is no secret that cloud-based apps and tools can help you manage your business with ease. Although a few dollars a month might seem affordable at first, the costs can quickly add up once you set up your subscription for multiple apps.

    If you want to reduce your overhead costs, audit your recurring software subscriptions and cancel those which you rarely use. You might also want to downgrade your plan or opt for the free version of these tools. Furthermore, you can search the internet for cheaper or free alternatives that offer the same functionality.

    Take Advantage of The Gig Economy

    Hiring qualified freelancers and independent contractors can be less expensive than hiring full-time employees. You won’t have to pay for benefits and they most likely have their own equipment. When choosing freelancers, make sure that they have a portfolio of previous relevant work that you can review, as well as client testimonials.

    Automate Administrative Tasks

    Some administrative duties such as invoicing, appointment scheduling, and customer follow-up can be automated instead of hiring an administrative assistant. You can also invest in an automated live chat system to assist multiple customers at the same time.
    Maintain a Paperless Office

    If you are still relying on physical printing, going all-digital and paperless will remove printing-related costs and keep your documents better organised. Aside from being cost-effective, a digital workplace is also environmentally friendly and means data is easily accessible.

    Revisit Your Marketing Strategy

    In order to grow your business, you must be willing to set some budget for marketing, even if you are trying to cut down on expenses. However, before you continue with your marketing strategy, it is important to evaluate each channel and its return on investment.

    Get a clear idea of how much you are spending and gaining from each marketing channel. Test and measure different channels, and re-allocate your budget accordingly if you find one that isn’t working.

    Get a financial advisor

    Regardless of how confident you are with your new budgeting, it pays to have a fresh set of eyes to look into it. An experienced accountant can provide you with an objective analysis of your budget allocations and help you save even more on your expenses.

    Get in touch with us today and let us help you spend your funds wisely.

  • COVID-19 Business Update – 11 November 2020

    Welcome back to our Weekly Digest. We hope you and your family are safe and doing well. Read on for this week’s updates and some ideas that will help us all overcome this crisis.

    No locally acquired cases for the first time since Feb!

    Great news this week for Victoria who recorded 12 days with no new COVID-19 cases, and the rest of the country as Australia recorded its third day without a locally acquired case nationally for the first time since late February.

    COVID-19 Vaccine Breakthrough

    Results from Pfizer’s COVID-19 vaccine trials are exciting, immunology and infectious diseases experts say, as early data showed it may be 90% effective in stopping the transmission of the virus. Like many vaccines, Pfizer’s requires super-cold storage until just before it’s administered, so there is still a long way to go to build a global distribution network

    Australian Business Confidence Highest Since 2019

    Australian business confidence in October rose to its highest level since mid-2019 as the economy showed more encouraging signs following the steep decline brought by the pandemic.

    According to NAB’s monthly business survey, business conditions edged one point higher in October from September to 1 index point, while confidence rose nine points to 5 index points.

    This recovery comes as Victoria, which accounts for about 25% of the economy, eased stringent COVID-19 restrictions after containing the second wave of the virus.

    Employees May Need to Give Employees More Super Choices

    A change to the law means that you may need to offer employees more choice in relation to the super fund that you pay their compulsory superannuation contributions to.

    All workplace determinations and enterprise agreements made on or after 1 January 2021 must give employees the right to choose their super fund.

    Once a new determination or agreement is in place, you’ll need to give a Superannuation standard choice form to:

    • existing employees who request to choose their super fund
    • all new employees.

    You must then pay employees’ compulsory super to their nominated fund. We will keep you informed of the updates but please feel free to chat to us if you have any questions.

    Upcoming Key Dates and Deadlines

    Please keep in mind these key dates:

    • 23 November 2020 – October monthly BAS due
    • 30 November 2020 – September quarter SG charge statement due

    Business Growth Fund Launches

    The government-backed Australian Business Growth Fund has launched to ensure small- and medium-sized businesses have access to equity finance, as the country recovers from the COVID-19 crisis.

    Initially, the Australian Business Growth Fund will have an initial investment capacity of $540 million, with a goal to grow the fund to $1 billion.

    The government is making a $100-million investment, while major banks including ANZ, Commonwealth Bank, NAB, and Westpac have also committed $100 million each.

    The fund will allow Australian businesses to apply for long-term equity capital investments between $5 million and $15 million, where they have generated annual revenue between $2 million and $100 million and can demonstrate three years of revenue growth and profitability.

    If you need help in assessing your eligibility or to consider other financing options, don’t hesitate to contact us for guidance.

    $800m Digital Business Plan to Drive Economic Recovery

    The Australian Government has announced a Digital Business plan to enable businesses to take advantage of digital technologies to grow their businesses and create jobs in the wake of COVID-19. PM Scott Morrison and Treasurer Josh Frydenberg announced the almost $800 million scheme on Tuesday that will facilitate doing more business online in a post-pandemic world.

    Under the plan, the rollout of Australia’s 5G network will be accelerated, the digital capacity of the agriculture, manufacturing, mining, logistics and financial services will be boosted, and Australians will be able to start a new business in 15 minutes using online government services.

    If you need our expert advice on how you can start a business or pivot to adapt to the crisis, don’t hesitate to message us.

    Major Overhaul to Bankruptcy Laws

    After the major changes to the JobSeeker and JobKeeper programs, Australia’s bankruptcy laws have been overhauled, throwing a lifeline to struggling businesses amid the COVID-19 crisis.

    Under the proposed changes, businesses with liabilities of less than $1 million will be able to keep operating while they come up with a debt restructuring plan, rather than be placed in the hands of administrators.

    The new rules which will become effective from 1 January 2021 follows the government’s decision earlier this month to extend its temporary insolvency and bankruptcy protection rules until the end of 2020.

    Supporting Apprentices and Trainees Wage Subsidy Extended

    The Supporting Apprentices and Trainees wage subsidy has been expanded and extended to include medium-sized businesses who had an eligible apprentice in place from 1 July 2020.

    Eligible employers will receive a wage subsidy of up to 50% of the wages paid until 31 March 2021 worth up to $7,000 per quarter, per eligible apprentice or trainee, to manage their cash flow challenges. Subsidies will also be available to any new employer who re-engages an eligible apprentice that was displaced by an eligible small- or medium-sized business.

    This may be of particular interest to employers who are not eligible for the JobKeeper extension. For professional assistance in applying for this wage subsidy or any other funding assistance, feel free to contact us.

    Government-backed COVID-19 Loans Extended

    The government is extending its small business COVID-19 loans scheme until June 2021. If you need help to access these loans or you want to find out if you are eligible, don’t hesitate to drop us a message.

    Adapting Your Leadership Style in the Post-Pandemic World

    COVID-19 has changed the business landscape now and for the foreseeable future. As a business leader, you need to adapt your leadership style and strategies accordingly to fit the new work environment in the post-pandemic world.

    Below are four key things you can do to adapt your approach:

    • Improve your emotional intelligence
      These are difficult times for everyone. As your employees face new challenges, it is important for you to recognise these struggles and exercise empathy and flexibility.
    • Foster trust and communication
      Now, more than ever, business leaders must communicate to ensure staff are on board and they trust their leaders’ guidance. Keep your communication lines open, as well take time for one-on-one sessions and team discussions.
    • Get your team members involved
      Make your employees feel that they have a voice in the company. Involve them on company decisions, especially on matters that will concern them such as work arrangements.
    • Keep an eye on the future
      As we navigate the post-pandemic world, there will surely be more uncertainties ahead. Your role as a business leader is to be ready to quickly adapt to those future changes by staying on top of what’s gonna happen next.

    Do you want to run your business better? Drop us a message so we can schedule a one-on-one consultation.

    Remembrance Day Poppy Appeal

    This year many Remembrance Day services were virtual so traditional poppy sales had to be cut back. RSLs around the country are urging Australians to consider donating to the online Poppy Appeal this year.

    Get in touch

    Contact us if you have any questions.

  • 8 things your invoice needs in order to get paid faster

    So you’ve set up your business and sold some products and services. Now, you have to send an invoice to collect your payment. But what should you include on your invoices in order to get paid faster?

    Even if you’ve been running your business for a while, you might be missing other information that you should include. So here is a step-by-step guide on what to include on your invoices.

    1. Make your invoice look professional.

    Add your logo and use professional fonts, styling, and colours that complement your brand. Modern accounting software platforms allow you to set up invoice templates which saves you reinventing the wheel each time. Chat to us if you need help setting this up.

    2. Label your invoice clearly.

    Make sure that you display the word ‘invoice’ clearly at the top of the document. If relevant, it may also need the words ‘tax invoice’. It should also have a unique identification number for your own records. You need to have a reference for all your invoices and make sure that there are no duplicates.

    For the identification number, you can use a sequence that gradually increases and add letters before the number to indicate a specific client. Again, most modern accounting software platforms will do this automatically, but it pays to check you’ve got it set up correctly.

    3. Add company information.

    Add the details of your company and the company or client you’re invoicing. This includes:

    • your company’s name, address, and contact information
    • your customer’s company name and address, including a contact’s name to ensure that it reaches the right person (if you’re invoicing another company)
    • your customer’s name, address, and contact number (if you’re invoicing an individual)
    • your registered office address and company registration number (if you’re a limited company)

    4. Write a clear description of the products or services.

    The description of the products or services that you’re charging for doesn’t have to be long. However, you need to make sure that it is detailed enough for your client to know what they’re paying for. Aside from the description, you should also indicate the quantity and the price.

    5. Add important dates.

    You should add the date you provided the product or service (supply date) and the date you created the invoice. Add the invoice date at the top of the document together with your name/ company name, address, and contact details. Meanwhile, the supply date could be added together with the description of what you sold.

    6. Add up the costs.

    Aside from indicating the cost of the individual product or service together with the description, you also have to put the total amount that must be paid. If you’ve agreed to give a discount or there’s a special promo, you must also clearly indicate it on the invoice and subtract it from the total. If applicable, you must also include the VAT amount on your invoice too.

    7. Indicate payment terms.

    Although you likely have agreed on certain payment terms with the customer beforehand, it is still recommended to note the terms of the payment on the invoice.

    For instance, if you expect to get paid within a certain number of days, you can remind the customer by adding this information on the invoice. Furthermore, you should note how exactly the customer should make the payment. Add your bank details or other payment information.

    8. Add payment options.

    Online invoices on modern platforms allow you to include payment options to help you get paid faster. Adding a “Pay Now” button that allows your customers to pay immediately via credit card, debit card, or automated clearing houses like PayPal and Stripe is proven to speed up the payment process. Want money in your bank quicker? It’s a no brainer!

    Chat to us

    There are a lot of accounting and invoicing software platforms and invoice templates out there that you can use. If you have any questions, please get in touch with us.

  • 4 Payment Options Your Small Business Should Consider

    When customers make a buying decision, they’re not just considering the quality and price of your products or services, they’re also evaluating the ease and convenience of the whole buying process. As a business owner, you should offer different payment options to provide the best customer experience and to ensure you receive timely payments

    Here are four ways your small business can accept payments in 2020:

    1. Credit and debit cards

    Data suggests that 75% of customers prefer to pay with a credit or debit card both online and in person. To be able to accept card payments in your brick-and-mortar store, you’ll need to have a card reader and a merchant account.

    Meanwhile, if you want to accept online payments via credit or debit card, you’ll need to have an ecommerce website and a payment gateway, which encrypts sensitive customer information. For recurring billing, you can have your customers sign up for a subscription billing plan which will allow you to charge monthly payments on their credit or debit card automatically. This will not only offer customers convenience, but also ensure that you get paid on time.

    2. ACH (automated clearing house)

    Automated clearing house (ACH) processing is ideal for recurring payments in a subscription-based model as it allows customers to provide you with their bank account and routing numbers for electronic payments.

    Compared to credit and debit cards, the fees are lower. ACH also offers convenience as it will just require one-time input of information and the money will be withdrawn as arranged.

    3. PayPal, Stripe, and Square

    PayPal, Stripe, and Square do not require you to have a merchant account. PayPal and Stripe are commonly used online and allow for seamless transactions. Meanwhile, Square is the leading choice for brick-and-mortar stores as it lets you turn your smartphone or tablet into a point-of-sale device by integrating a magstripe, Bluetooth card reader, or chip. PayPal can also allow you to accept payments in person, but you will have to buy a card reader and download the app.

    4. Contactless payment options

    Contactless payment options let customers pay wirelessly and without having to input a PIN– they will just have to wave their device or card over the point-of-sale device.

    Visa and Mastercard are offering contactless cards to customers, and there are also mobile wallets compatible with iOS and Android which encourage customers to use this payment option. As a business owner, you’ll only have to upgrade your equipment with a near-field communication reader or update your software, depending on your current system.

    At this day and age where technology is constantly evolving and changing the way we do business, it is important to ensure that you are adapting to stay competitive.

    Get in touch

    If you need some guidance on the right payment options for your business, feel free to drop us a message so we can schedule a one-on-one consultation.

  • Federal Budget 2020-21: What it means for you

    Federal Budget 2020-21: What it means for you

    Budget

    The Federal Budget was released on Tuesday 6th October. This article has a good summary of the “Winners and Losers” of the Budget. You’ll also find a recap of the key points below.

    Key Points:

    • This budget is based on economic assumptions including that there will be a COVID-19 vaccine rolled out by the end of 2021.
    • Tax cuts for workers – more money in pockets for more Australians.
    • JobMaker Hiring Credit scheme – businesses supported for hiring employees aged 16-35 who were on JobSeeker.
    • Asset write off – businesses that make new investments will be able to write off the entire cost in one year, rather than having the asset depreciate over several years.
    • Cash payments for pensioners.
    • COVID-19 health measures, money for aged care and NDIS.
    • Mental health support increases with more to come.
    • Some support for women announced.
    • Funding for infrastructure and construction.
    • No changes to JobKeeper or JobSeeker.

     

    Tax Cuts

    The Government will bring forward its planned tax cuts meaning millions of Australians will have more money in their pockets, potentially from the end of October. These tax cuts were scheduled to start in July 2022 but will be brought forward and backdated to July this year.

    • Under the plan, the upper limit of the 19% personal income tax bracket will rise from $37,000 to $45,000 and the 32.5% marginal tax rate upper threshold will lift from $90,000 to $120,000.
    • The tax plan means people who earn between $45,000 and $90,000 will take home an additional $1,080 this financial year.
    • Workers who earn more than $90,000 will take home up to $2,565 extra, with people earning more than $120,000 receiving the maximum benefit.
    • The low and middle-income tax offset, currently worth $255 for a worker on $37,000 and $1,080 for those earning between $48,001 and $90,000, will also remain.

    The Government hopes Australians will spend the additional cash, to help offset the economic activity lost this year.

    Work out how much you’ll save from these tax cuts with this calculator.

    JobMaker Hiring Credit scheme

    While there are no changes to the JobKeeper scheme set to send in March 2021, a fresh wage subsidy program called the JobMaker Hiring Credit has been announced.

    The JobMaker Hiring Credit will partially subsidise the wages of young employees who are hired from 7th October 2020. As always, there are some conditions for both employers and employees to meet.

    Employers will be able to claim $200 each week for every employee hired after 7th October 2020 aged between 16 and 29, and $100 each week for every employee aged between 30 and 35.

    Employees will also need to:

    • Have been on JobSeeker, Youth Allowance or the Parenting Payment for at least one of the past three months
    • Begin working at the claiming business between 7th October 2020 and 6th October 2021
    • Work an average of at least 20 hours a week over the reporting period

    The only businesses explicitly excluded from this scheme are the major banks.

    Asset write off for businesses

    Treasurer Josh Frydenberg said the write off was good news for “99% of businesses”. From Tuesday 5th October, businesses with a turnover of up to $5 billion will be able to write off the full value of any eligible asset they purchase up to $150,000.

    This means businesses that make new investments will be able to write off the entire cost in one year, rather than having the asset depreciate over several years.

    If your business is in need of a new car, truck, machinery, computer, phone or other business essential, this tax break will provide some relief. Chat to us if you have any questions.

    Women

    While the Global Financial Crisis acutely affected men, women have been disproportionately affected by the COVID-19 pandemic. Research in Australia, and across the world shows that women have lost more hours, more jobs and therefore more pay than men in recent months.

    Women dominate frontline worker roles including healthcare, early childhood and aged care. Despite the critical role of these industries, these jobs are typically underpaid, insecure and cannot be done remotely. For the past two decades Australia’s gender pay gap has been between 14 – 20%. If the trends we’re seeing with lost hours and jobs continue, this gap is expected to widen.

    A $240 million Women’s Economic Security Statement was unveiled in the budget that includes funding to help women in male-dominated industries like construction, more co-funded grants for women-founded start-ups, a focus on encouraging girls and women to pursue careers in STEM and more for Respect@Work council to tackle sexual harassment in workplaces.

    Another part of the Women’s Economic Security Statement is a change to the work test for paid parental leave to help people who might’ve been found ineligible because of the COVID-19 pandemic.

    The budget does not include any immediate assistance for women looking for work now, with much of the other assistance going to industries like construction.

    Construction

    The $688 million HomeBuilder scheme gives cash grants for people to renovate or build new homes.

    Builders will also benefit from extra support for first home buyers to encourage them to buy new houses and stimulate construction.

    Manufacturing

    $1.3 billion has been allocated to boosting Australia’s manufacturing sector and securing supply lines. The six areas of focus are defence, space, medicine and medical products, food and beverages, resources technology and recycling and clean energy. The aim is to create jobs across the country and help the economy recover, as well as help Australia become more self-sufficient in future disasters.

    Payments for pensioners

    Tax-free payments of $250 will be made to pensioners and others on government support, including those on a Disability Support Pension, Carer Allowance. Find the full list here. The payments will roll out in December 2020 and March 2021.

    Mental Health

    The mental toll of the pandemic and the associated resulting lockdowns and restrictions has been recognised and the Government has extended a few key services. From Tuesday 5th October, the number of Medicare-funded psychological services doubled from 10 to 20.

    This comes after the Government announced subsidised telehealth services, including for mental health services, would be extended until the end of March 2021.

    There are hints that more announcements will come once reports on mental health and suicide are released in coming weeks.

    Vaccines

    As expected, the Government is putting billions towards COVID-19 vaccines, mainly the University of Oxford and the University of Queensland.

    Another $10 million is going to the CSIRO to fast-track the development of a vaccine in Australia if and when it becomes available.

    Infrastructure

    $7.5 billion has been announced for national transport infrastructure, aimed at boosting state and territory projects that are currently in the planning phase. Key projects receiving federal funding are listed here.

    No changes to JobKeeper or JobSeeker

    JobKeeper
    The JobKeeper scheme is set to end on the 28th March 2021 as announced previously.

    JobSeeker
    More announcements surrounding JobSeeker are expected before the end of the year, so we will keep you updated.

    As it stands, the Government isn’t planning on increasing the base rate of the JobSeeker unemployment benefit. The additional coronavirus supplement, currently $250 a fortnight, will end at the end of December, returning the benefit to its pre-pandemic rate.

    Assumptions

    This budget is based on some economic assumptions, mainly that a COVID-19 vaccine will be rolled out to Australians by the end of next year.

    The budget also assumes we won’t see any more widespread outbreaks – and lockdowns – as has been the case in Victoria.

    Furthermore, the budget assumes all state borders will be open by Christmas, with the exception of WA.

    Tourism and international travel are assumed to remain low through the latter part of 2021.

    Get in touch

    Got a question? Please don’t hesitate to get in touch. As always, we will keep you informed as more details are released.

    We hope you and your family stay well.

  • COVID-19 Business Update – 30 September 2020

    Welcome back to our Weekly Digest. We hope you and your family are safe and doing well. Read on for this week’s update.

    Business

    $800m Digital Business Plan to Drive Economic Recovery

    The Australian Government has announced a Digital Business plan to enable businesses to take advantage of digital technologies to grow their businesses and create jobs in the wake of COVID-19. PM Scott Morrison and Treasurer Josh Frydenberg announced the almost $800 million scheme on Tuesday that will facilitate doing more business online in a post-pandemic world.

    Under the plan, the rollout of Australia’s 5G network will be accelerated, the digital capacity of the agriculture, manufacturing, mining, logistics and financial services will be boosted, and Australians will be able to start a new business in 15 minutes using online government services.

    If you need our expert advice on how you can start a business or pivot to adapt to the crisis, don’t hesitate to message us.

    Victorian Government Accelerates Lifting of COVID-19 Restrictions for Melbourne

    Melbourne’s nighttime curfew ends on Monday and COVID-19 restrictions may ease faster than expected, says Victorian Premier Daniel Andrew. This means the state could take its next step towards lifting restrictions as early as 19 October and achieve a potential “Covid-normal Christmas”.

    Aside from 127,000 workers returning to various industries, including supermarket, food distribution, food processing, and manufacturing, primary school students can return to schools in the week starting 12 October. Childcare centres can open for all children, and visitors will be allowed in healthcare facilities and hospitals.

    Furthermore, public gatherings of people from the same household or a limit of five people from no more than two households will be permitted. Outdoor exercises and activities such as fishing and hiking that don’t involve visiting a facility will also be allowed for a maximum of 2 hours within 5km from home.

    We are thinking of everyone doing it tough at this time. Please don’t hesitate to reach out if you’d like to discuss future plans for your business.

    Major Overhaul to Bankruptcy Laws

    After the major changes to the JobSeeker and JobKeeper programs, Australia’s bankruptcy laws have been overhauled, throwing a lifeline to struggling businesses amid the COVID-19 crisis.

    Under the proposed changes, businesses with liabilities of less than $1 million will be able to keep operating while they come up with a debt restructuring plan, rather than be placed in the hands of administrators.

    The new rules which will become effective from 1 January 2021 follows the government’s decision earlier this month to extend its temporary insolvency and bankruptcy protection rules until the end of 2020.

    Supporting Apprentices and Trainees Wage Subsidy Extended

    The Supporting Apprentices and Trainees wage subsidy has been expanded and extended to include medium-sized businesses who had an eligible apprentice in place from 1 July 2020.

    Eligible employers will receive a wage subsidy of up to 50% of the wages paid until 31 March 2021 worth up to $7,000 per quarter, per eligible apprentice or trainee, to manage their cash flow challenges. Subsidies will also be available to any new employer who re-engages an eligible apprentice that was displaced by an eligible small- or medium-sized business.

    This may be of particular interest to employers who are not eligible for the JobKeeper extension. For professional assistance in applying for this wage subsidy or any other funding assistance, feel free to contact us.

    Business Resilience Package for Victorian Businesses

    The Victorian government is investing $3 billion in cash grants, tax relief, and cashflow support to aid businesses hit by the tight restrictions and help them prepare for COVID Normal. The types of support included in this package are divided into three categories: Business Support, Business Adaptation, and Waivers and Deferrals.

    Included in Business Support is the third round of the Business Support Fund for small- and medium-sized business ($822 million), with applications opening on 18 September 2020.

    Meanwhile, Business Adaptation involves funding, tools, and resources to help businesses adapt to COVID Normal. Tax and cashflow support amounting to $1.8 billion will be provided by the government under the Waivers and Deferrals scheme.

    For a detailed rundown of the inclusions of the Business Resilience Package, click here. Let us help you assess your eligibility and gain access to government support! Get in touch with us so we can schedule a consultation.

    Sole Trader Support Fund

    The Victorian Government has announced the Sole Trader Support Fund for eligible non-employing businesses affected by COVID-19 restrictions. Under this scheme, sole traders will receive a grant of $3,000.

    Grant applications will open in the coming days and the full list of eligibility criteria will be published soon. We will keep you updated as soon as more information is available.

    The JobKeeper scheme has now changed

    The JobKeeper scheme has now changed and will now operate in two separate periods:

    • Extension 1: 28 September 2020 to 3 January 2021
    • Extension 2: 4 January 2021 to 28 March 2021

    JobKeeper Extension 1

    The tier 1 payment rate of $1,200 per fortnight applies to:

    • Employees who worked for 80 hours or more in the four weeks of pay periods before either 1 March 2020 or 1 July 2020
    • Eligible business participants who were actively engaged in the business for 80 hours or more in February and provide a declaration.

    For any other eligible employees or business participants, the tier 2 payment rate of $750 per fortnight will apply.

    JobKeeper Extension 2

    For extension 2, payment rates will be further reduced to:

    • $1,000 per fortnight for tier 1 employees and business participants
    • $650 per fortnight for tier 2 employees and business participants

    The ATO website provides further information about the eligibility requirements for the extension 2 period.

    Decline in Turnover Test

    Both these extension periods will require satisfaction of an additional actual decline in GST turnover test as follows.

    Extension 1 (28/09/2020 – 03/01/2021)
    September Quarter (Jul, Aug, Sept) relative to comparable period (usually same 2019 Q)

    Extension 2 (03/01/2021 – 28/03/2021)
    December Quarter (Oct, Nov, Dec) relative to comparable period (usually same 2019 Q)

    For further details about the eligibility requirements for the JobKeeper extension 1, please refer to the ATO website, or ask us.

    How does this differ from the original JobKeeper test?

    • The decline in turnover must be demonstrated for specific quarters only.
    • Rather than using projected GST turnover for the relevant quarter being tested, you use your current GST turnover.
    • You must allocate sales to the relevant quarter in the same way you would report these sales to a BAS if you were registered for GST.
    • If you are not registered for GST, you will work out your turnover using either the GST cash or non-cash basis of accounting.

    What you need to do

    From 28 September 2020, you are required to:

    • Determine your eligibility for the JobKeeper Extension scheme using the actual turnover test for the September quarter
    • Determine if you have any new eligible employees that were not previously nominated for JobKeeper and ask them to agree to be nominated
    • Work out the Tier 1 or Tier 2 rate of pay that you will be claiming for each eligible employee/eligible business participant
    • Notify your eligible employees which payment rate is applicable for them
    • Ensure your eligible employees/eligible business participants receive the correct rate of payment per fortnight during each of the JobKeeper Extension periods according to the two tiers of payment
    • If you are registered for GST and have outstanding BAS, you will need your BAS to be lodged for the September 2019 and December 2019 quarters now (or for equivalent months, if you report monthly) so that you don’t hold up your application for the JobKeeper Extension Scheme.

    The ATO has a useful one page fact sheet outlining the key changes, but please ask us if you have a question.

    How Small Businesses Can Source Finance During COVID-19

    Although there are government funding schemes and support available, you might still need alternative finance to keep your business going.

    If you are not sure where to turn for funding, consider these three sources of finance:

    • External sources– This type of finance come from entities outside the business in the form of business loans, merchant cash advance, and invoice financing.
    • Internal sources– This is sourcing funds from within the business, typically in the form of share capital and selling of assets.
    • Personal sources– This means using your personal funds to finance certain elements of your business. This could mean using your personal savings and investments and selling your personal property.

    If your small business is struggling due to the impacts of COVID-19, get in touch with us so we can help you assess your options and plan your business recovery.

    Government-backed COVID-19 Loans Extended

    The government is extending its small business COVID-19 loans scheme until June 2021. If you need help to access these loans or you want to find out if you are eligible, don’t hesitate to drop us a message.

    Government Launches Business Continuity Website to Support Businesses Amid COVID-19

    The Australian Government has launched the Australian Business Continuity website to support businesses with staff working remotely amid the pandemic.

    The site provides free practical tools for remote communications, collaboration, workforce management, and video conferencing, as well as advice on how to best use teleworking services.

    Get in touch

    Contact us if you have any questions. S & H Tax Accountants can help your business get to the otherside of this pandemic.

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  • Why You Need a COVID-19 Financial Plan

    Why You Need a COVID-19 Financial Plan

    Business, Plan

    Countries in recession, unemployment rates rising, multiple economic indicators at their all-time lows, increased market volatility– these are just some of the economic impacts we’re seeing as a result of the pandemic.

    As we continue to battle the COVID-19 crisis, it is important for everyone, especially those who have had their income stream affected, to keep their finances in check and proactively find ways to navigate to recovery.

    By creating a financial plan, you’ll be able to find out how long you can continue with the current circumstances, but you’ll also be able to work out how to get your finances back on track and be in a stronger financial position. This process may also reveal things you could’ve done to cushion the impacts of the crisis.

    In this article, we will talk about what a financial plan is and the benefits of having one.

    What is a Financial Plan?

    A financial plan is like a roadmap that helps you get to your desired financial position. This is done by evaluating your current situation, setting short- and long-term goals, and putting a strategic action plan in place to achieve them. This plan also takes into consideration how you can maintain financial stability amidst times of uncertainty.

    An effective financial plan is not just about savings–it encompasses the following:

    • Cashflow
    • Spending patterns
    • Budgeting
    • Investments
    • Tax position
    • Debts
    • Risk management
    • Insurance
    • Retirement planning
    • Estate planning

    What are the Benefits of a Financial Plan During a Crisis?

    As mentioned earlier, a financial plan is a comprehensive approach to dealing with your finances. This means having one can also aid you in times of economic trouble such as the one brought by the pandemic. While it doesn’t guarantee that you will not be affected in any way, a solid financial plan can reduce the impact on your finances.

    Having one will give you peace of mind knowing you have a plan in place to adapt to what’s to come. When evaluating your current financial position and your ability to get through the COVID-19 crisis, you need to consider the following:

    • Alternative sources of income
    • If your cash flow is positive, negative, or neutral
    • If you need to withdraw a distribution from your investment
    • A strategy for liquidation
    • If your investments reflect your risk appetite and are tax efficient

    Riding Out the Storm

    A good plan or strategy makes a huge difference as to how you’ll be able to adapt during tough times. Aside from putting you in the best position for financial success in the post-pandemic world, it also ensures that you’re prepared for the next crisis or economic downturn (whenever that may be).

    If you’re only starting to think about crafting a financial plan, don’t worry because it’s not too late. We also understand that without a finance background, getting this done right can be a real challenge.

    The good news is our team is ready to help you assess your situation and put together a plan that is tailored specifically to your needs. Feel free to drop us a message to learn more about how we can help you not only survive, but thrive, amidst the pandemic.

  • JobKeeper and JobSeeker Changes Coming Next Week: What You Need To Do

    The Australian Government announced that JobKeeper and JobSeeker payments will be extended, with changes starting on 28 September 2020. Below is a rundown of the changes to expect on these support schemes.

    Changes to JobKeeper

    The JobKeeper scheme will continue until 28 March 2021. The extension of the scheme will operate in two separate periods:

    • Extension 1: 28 September 2020 to 3 January 2021
    • Extension 2: 4 January 2021 to 28 March 2021

    JobKeeper Extension 1

    The tier 1 payment rate of $1,200 per fortnight applies to:

    • Employees who worked for 80 hours or more in the four weeks of pay periods before either 1 March 2020 or 1 July 2020
    • Eligible business participants who were actively engaged in the business for 80 hours or more in February and provide a declaration.

    For any other eligible employees or business participants, the tier 2 payment rate of $750 per fortnight will apply.

    JobKeeper Extension 2

    For extension 2, payment rates will be further reduced to:

    • $1,000 per fortnight for tier 1 employees and business participants
    • $650 per fortnight for tier 2 employees and business participants

    The ATO website provides further information about the eligibility requirements for the extension 2 period.

    Decline in Turnover Test

    Both these extension periods will require satisfaction of an additional actual decline in GST turnover test as follows.

    Extension 1 (28/09/2020 – 03/01/2021)
    September Quarter (Jul, Aug, Sept) relative to comparable period (usually same 2019 Q)

    Extension 2 (03/01/2021 – 28/03/2021)
    December Quarter (Oct, Nov, Dec) relative to comparable period (usually same 2019 Q)

    For further details about the eligibility requirements for the JobKeeper extension 1, please refer to the Australian Taxation Office (ATO) website.

    How does this differ from the original JobKeeper test?

    • The decline in turnover must be demonstrated for specific quarters only .
    • Rather than using projected GST turnover for the relevant quarter being tested, you use your current GST turnover
    • You must allocate sales to the relevant quarter in the same way you would report these sales to a BAS if you were registered for GST
    • If you are not registered for GST, you will work out your turnover using either the GST cash or non-cash basis of accounting.

    What you need to do

    From 28 September 2020, you are required to:

    • Determine your eligibility for the JobKeeper Extension scheme using the actual turnover test for the September quarter
    • Determine if you have any new eligible employees that were not previously nominated for JobKeeper and ask them to agree to be nominated
    • Work out the Tier 1 or Tier 2 rate of pay that you will be claiming for each eligible employee/eligible business participant
    • Notify your eligible employees which payment rate is applicable for them
    • Ensure your eligible employees/eligible business participants receive the correct rate of payment per fortnight during each of the JobKeeper Extension periods according to the two tiers of payment
    • If you are registered for GST and have outstanding Business Activity Statements (BAS), ensure you lodge your BAS for the September 2019 and December 2019 quarters now (or for equivalent months, if you report monthly) so that you don’t hold up your application for the JobKeeper Extension Scheme

    The required decline in GST turnover percentages will remain the same:

    • 30% for an aggregated turnover of $1 billion or less
    • 50% for an aggregated turnover of more than $1 billion
    • 15% for ACNC-registered charities other than universities and schools.

    What you do not need to do:

    If you are already enrolled for the current JobKeeper Scheme for fortnights prior to 28 September 2020, you do NOT need to:

    • Re-enrol for the JobKeeper Extension Scheme
    • Re-assess eligibility for employees already receiving JobKeeper for the JobKeeper Extension Scheme or ask them to agree to be nominated
    • Meet any further requirements if you are claiming for an eligible business participant, other than holding an ABN and declaring assessable income and supplies

    The ATO has a useful one page fact sheet outlining the key changes, but please ask us if you have a question.

    Changes in JobSeeker Payment

    JobSeeker will continue until the end of December 2020, and then the government will review at the end of the year to assess if it needs to be extended further. Here are the changes in payment rates:

    • COVID supplement of $550 per fortnight will be reduced to $250 from October until the end of the year, making the JobSeeker rate around $800 per fortnight.
    • Those on this payment can earn up to $300 per fortnight without reducing their payment

    Mutual Obligations to Return in 2 Phases

    You will need to do the following to avoid penalties:
    Phase 1 – August 4th

    • Reconnect with employment services
    • Undertake 4 job searches a month
    • Take jobs where offered

    Phase 2 – End of September

    • The number of required job searches a month will be higher
    • Take jobs where offered

    In both Phase 1 and Phase 2, people will be given penalties if they do not take jobs offered. We at S & H Tax Accountants are here to help. We have 99% customer satisfaction rate. Best accountants in Melbourne are here to help

  • COVID-19 Business Update – 23 September 2020

    Welcome back to our Weekly Digest. We hope you and your family are safe and doing well. Read on for this week’s update.

    Queensland Border Zone Extensions from October 1st

    Queensland’s border zone will be extended to 5 local government areas in NSW starting October 1st. These areas include: Byron, Ballina, Lismore, Richmond Valley and Glen Innes councils.

    South Australia-NSW Borders to Open at Midnight

    South Australia will reopen its borders to New South Wales at midnight, after NSW recorded another day with no community transmission. This means NSW residents entering SA will no longer have to undergo the mandatory 14-day quarantine.

    From midnight, the only part of Australia barred from entering South Australia is Victoria.

    Business Resilience Package for Victorian Businesses

    The Victorian government is investing $3 billion in cash grants, tax relief, and cashflow support to aid businesses hit by the tight restrictions and help them prepare for COVID Normal. The types of support included in this package are divided into three categories: Business Support, Business Adaptation, and Waivers and Deferrals.

    Included in Business Support is the third round of the Business Support Fund for small- and medium-sized business ($822 million), with applications opening on 18 September 2020.

    Meanwhile, Business Adaptation involves funding, tools, and resources to help businesses adapt to COVID Normal. Tax and cashflow support amounting to $1.8 billion will be provided by the government under the Waivers and Deferrals scheme.

    For a detailed rundown of the inclusions of the Business Resilience Package, click here. Let us help you assess your eligibility and gain access to government support! Get in touch with us so we can schedule a consultation.

    Sole Trader Support Fund

    The Victorian Government has announced the Sole Trader Support Fund for eligible non-employing businesses affected by COVID-19 restrictions. Under this scheme, sole traders will receive a grant of $3,000.

    Grant applications will open in the coming days and the full list of eligibility criteria will be published soon. We will keep you updated as soon as more information is available.

    Federal Government Announces $50 M Grant for Business Events Industry

    The Federal Government has confirmed a $50 million grant for Australia’s business events industry, which will enable organisers of business events to apply for upfront grants that will cover up to 50% of their costs (between $10,000 and $250,000).

    Aside from getting the business events industry back on their feet, this will also pave the way for businesses to connect through consumer and trade shows and conferences.

    If you need expert business advice in growing your network amidst the pandemic, feel free to drop us a message.

    Second Round of Cash Flow Boost

    If you’ve received initial cash flow boosts, you will automatically get a second round of cash flow boost when you lodge your activity statements for each monthly or quarterly period from June to September 2020.

    If you lodge:

    • quarterly, you’ll receive 50% of your total initial cash flow boost for each activity statement
    • monthly, you’ll receive 25% of your total initial cash flow boost for each activity statement.

    If you receive some funds into your account from the ATO and aren’t sure what it relates to, feel free to get in touch with us and we can investigate.

    More details can be found in the ATO website.

    Reminder: JobKeeper and JobSeeker Changes from 28 September

    The Australian Government announced that JobKeeper and JobSeeker payments will be extended, with changes starting on 28 September 2020. Below is a rundown of the changes to expect on these support schemes.

    Changes to JobKeeper

    The JobKeeper scheme will continue until 28 March 2021. The extension of the scheme will operate in two separate periods:

    • Extension 1: 28 September 2020 to 3 January 2021
    • Extension 2: 4 January 2021 to 28 March 2021

    JobKeeper Extension 1

    The tier 1 payment rate of $1,200 per fortnight applies to:

    • Employees who worked for 80 hours or more in the four weeks of pay periods before either 1 March 2020 or 1 July 2020
    • Eligible business participants who were actively engaged in the business for 80 hours or more in February and provide a declaration.

    For any other eligible employees or business participants, the tier 2 payment rate of $750 per fortnight will apply.

    JobKeeper Extension 2

    For extension 2, payment rates will be further reduced to:

    • $1,000 per fortnight for tier 1 employees and business participants
    • $650 per fortnight for tier 2 employees and business participants

    The ATO website provides further information about the eligibility requirements for the extension 2 period.

    Decline in Turnover Test

    Both these extension periods will require satisfaction of an additional actual decline in GST turnover test as follows.

    Extension 1 (28/09/2020 – 03/01/2021)
    September Quarter (Jul, Aug, Sept) relative to comparable period (usually same 2019 Q)

    Extension 2 (03/01/2021 – 28/03/2021)
    December Quarter (Oct, Nov, Dec) relative to comparable period (usually same 2019 Q)

    For further details about the eligibility requirements for the JobKeeper extension 1, please refer to the Australian Taxation Office (ATO) website.

    How does this differ from the original JobKeeper test?

    • The decline in turnover must be demonstrated for specific quarters only .
    • Rather than using projected GST turnover for the relevant quarter being tested, you use your current GST turnover
    • You must allocate sales to the relevant quarter in the same way you would report these sales to a BAS if you were registered for GST
    • If you are not registered for GST, you will work out your turnover using either the GST cash or non-cash basis of accounting.

    What you need to do

    From 28 September 2020, you are required to:

    • Determine your eligibility for the JobKeeper Extension scheme using the actual turnover test for the September quarter
    • Determine if you have any new eligible employees that were not previously nominated for JobKeeper and ask them to agree to be nominated
    • Work out the Tier 1 or Tier 2 rate of pay that you will be claiming for each eligible employee/eligible business participant
    • Notify your eligible employees which payment rate is applicable for them
    • Ensure your eligible employees/eligible business participants receive the correct rate of payment per fortnight during each of the JobKeeper Extension periods according to the two tiers of payment
    • If you are registered for GST and have outstanding Business Activity Statements (BAS), ensure you lodge your BAS for the September 2019 and December 2019 quarters now (or for equivalent months, if you report monthly) so that you don’t hold up your application for the JobKeeper Extension Scheme

    The required decline in GST turnover percentages will remain the same:

    • 30% for an aggregated turnover of $1 billion or less
    • 50% for an aggregated turnover of more than $1 billion
    • 15% for ACNC-registered charities other than universities and schools.

    What you do not need to do:

    If you are already enrolled for the current JobKeeper Scheme for fortnights prior to 28 September 2020, you do NOT need to:

    • Re-enrol for the JobKeeper Extension Scheme
    • Re-assess eligibility for employees already receiving JobKeeper for the JobKeeper Extension Scheme or ask them to agree to be nominated
    • Meet any further requirements if you are claiming for an eligible business participant, other than holding an ABN and declaring assessable income and supplies

    The ATO has a useful one page fact sheet outlining the key changes, but please ask us if you have a question.

    Changes in JobSeeker Payment

    JobSeeker will continue until the end of December 2020, and then the government will review at the end of the year to assess if it needs to be extended further. Here are the changes in payment rates:

    • COVID supplement of $550 per fortnight will be reduced to $250 from October until the end of the year, making the JobSeeker rate around $800 per fortnight.
    • Those on this payment can earn up to $300 per fortnight without reducing their payment

    Mutual Obligations to Return in 2 Phases

    You will need to do the following to avoid penalties:
    Phase 1 – August 4th

    • Reconnect with employment services
    • Undertake 4 job searches a month
    • Take jobs where offered

    Phase 2 – End of September

    • The number of required job searches a month will be higher
    • Take jobs where offered

    In both Phase 1 and Phase 2, people will be given penalties if they do not take jobs offered.

    Government-backed COVID-19 Loans Extended

    The government is extending its small business COVID-19 loans scheme until June 2021. If you need help to access these loans or you want to find out if you are eligible, don’t hesitate to drop us a message.

    Sleep is NOT for the Weak

    Significant changes in the way we live brought by the pandemic, such as extended periods of lockdown, work from home setup, and social restrictions, have blurred the lines between life and work. Sometimes people forget even the simplest self-care habits such as getting enough rest.

    Sleep is as close to a panacea as we are likely to get in our lifetimes: it helps us recover from injuries and illness, plays a vital role in memory formation, and helps keep us healthy. Disrupting our sleep has an adverse impact on nearly every system in our bodies.

    The uncertainties due to the current global crisis also cause high levels of stress. In a recent study by the National Bureau of Economic Research, it was found that unemployment disrupts sleep, along with other negative impacts on health and well-being.

    Even if you’re not unemployed, the pandemic has been stressful enough that many people are experiencing ‘coronasomnia.’ In this article, a Harvard Business Review editor describes her experiments with four different tactics to get better sleep. The one that worked best for her was setting aside all electronics and avoiding all screens for two hours before bedtime.

    These have been unusual times that are impacting nearly everyone on the planet. We hope that you are finding ways to make this a time not just for survival but for growth as well!

    Government Launches Business Continuity Website to Support Businesses Amid COVID-19

    The Australian Government has launched the Australian Business Continuity website to support businesses with staff working remotely amid the pandemic.

    The site provides free practical tools for remote communications, collaboration, workforce management, and video conferencing, as well as advice on how to best use teleworking services.

    Get in touch

    Contact us if you have any questions.

  • The worst business advice to follow

    The worst business advice to follow

    When you’re a small business owner, you get used to people giving you advice. Sometimes you seek out their insights while other times they share whether you want them to or not. While the advice is almost always well-intended, it’s not always good. In fact, sometimes it’s downright awful.

    Here are some tips that well-meaning people give to small business owners that definitely should not be followed.

    1. Never turn down a paying customer

    Money is a good thing. But that doesn’t mean you should say yes to everyone who comes through your door. Not every person who approaches you is good for your business. If your gut tells you something is off—maybe the person is very demanding or constantly questions your prices—it’s in your best interests to say no.

    It’s not necessarily about the client, either. You might be very busy, and taking on another project means you’ll be giving them subpar service or using up your valuable personal time.

    If possible, turn them away graciously by explaining that you’re very busy and cannot give them the attention they deserve. Consider recommending another business for them that they could turn to.

    Don’t say “yes” to everyone who walks through the door just because they’re a paying customer.

    2. The customer is always right

    It’s often in your best interests to ensure an unhappy customer is addressed and their needs are met. But there are clients out there who will never be happy, no matter what you do. It’s okay to try to make things right with them, but you also run the risk of word getting out that you’ll bend over backwards to make customers happy. That just encourages more unhappy people to come your way. Or it encourages people to find reasons to be unhappy so they can get additional benefits from you.

    If it’s a normal part of routine that customers are constantly complaining and getting some sort of reward, you need to examine your business. If the customers are truly right, then it’s time for some changes. If they aren’t right, stop treating them like they are.

    3. Do what you love

    In an ideal world, we’d all have jobs we love and make endless money with no added stress, all without giving up any of our personal time. That’s not how the world works. Just because you love something doesn’t mean there is a market out there for it.

    It’s more important that you find something you are okay with doing—don’t take on something you hate—that fills a need. And it has to be something enough people would be willing to pay for.
    That’s how you make money in business.

    Final thoughts

    Everyone has advice about running a small business, even if they have never run one of their own. Some of the advice is helpful but much of it is harmful. Listening to that advice can lead a small business owner down the wrong path.

    When someone offers you advice on your small business, ask what credibility they have to share their insights. Have they owned their own business? Do they have knowledge of the industry you work in? Have they learned lessons you could learn from? Was their business similar to yours?

    Remember, just because someone is offering advice doesn’t necessarily mean their advice is relevant to you. And just because they offer the advice—or just because the advice is a common saying—doesn’t mean you have to follow it.

    Got a question about your business? Please don’t hesitate to get in touch?

    We at S & H Tax Accountants are here to help. We have 99% customer satusfaction rate. Best accountants in Melbourne are here to help

  • Creating your business to-do list

    When you’re an entrepreneur, your to-do list is often long and constantly growing longer. There are an overwhelming number of things you need to do, and it can feel like they’re all urgent. In such cases, it’s easy to push important tasks to the side and focus on less-vital activities, but that often means you miss deadlines, make mistakes or always feel as though you’re trying to catch up.

    Here are some ways for you to determine the most productive order to complete your tasks.

    1. Know all of your tasks

    It isn’t enough to have a running list of tasks in your head; you need to write them out so you can see them at a glance. Take the time to list all your tasks, and break down large tasks into smaller steps.

    Write a list of the activities you need to do for the week—or even the next two weeks—on Monday morning. Include information such as how urgent they are, how long they’ll take to complete and what their deadlines are.

    Now you know what you need to complete and you have an idea of when things need to be done.

    2. Determine what tasks are vital

    There are many methods for determining which tasks are the most vital. Here, we’ll go into two: the Eisenhower Decision Matrix and the ABCDE Method.

    In the Eisenhower Decision Matrix, you classify each task into one of four quadrants. These quadrants are based on whether the task is important, urgent, both or neither. Tasks that are both important and urgent should be done first, followed by those that are either important but not urgent or urgent but not important, and finally those that are neither important nor urgent. If possible, delegate tasks that aren’t both important and urgent to someone else.

    Another method is the ABCDE method, in which you assign each task on your list a letter from A through E based on its level of importance. Tasks with a level of A or B are the most important, while D and E are not at all important. Anything from C down can likely be rescheduled or delegated to someone else.

    3. Schedule your tasks

    Now that you know which tasks are the most important, schedule your to-do list in that order. Write yourself a daily list that puts the most important tasks at the start of your day. Don’t overschedule yourself, though. After all, there’s a good chance that in the course of your week, a new activity that is both important and urgent will arise and you’ll need the space in your calendar to address it.

    Give yourself deadlines in the day to get the work done, based on a reasonable assessment of how long the activity should take you. You can also chunk your work, in which you set aside specific, uninterrupted periods of time to do focused work and then schedule in breaks around that.

    Make sure you turn off distractions and let your colleagues know that you aren’t available during those times.

    Final thoughts

    By determining which of your tasks are the most important to you and your business and scheduling your day based on that criteria, you can ease the pressure caused when you have a long list of activities to take care of.

    Want to chat about your business? Get in touch with our advisors.

  • COVID-19 Business Update – 16 September 2020

    Welcome back to our Weekly Digest. We hope you and your family are safe and doing well. Read on for this week’s update.

    Melbourne’s Roadmap to ‘COVID Normal’

    A staged plan to ease Melbourne out of tight COVID-19 restrictions has been released. Stage 4 restrictions will remain in place for another two weeks with some minor changes, and will start to ease further from 28 September.

    The final step should be reached by late November if the city reaches a targeted decline in COVID-19 cases. Details about this roadmap to COVID Normal can be found here.

    Regional Victoria to Move to Step Three of Reopening Plan

    Regional Victoria will move to step three of the reopening plan from 11:59pm Wednesday night, which means that sitting in a restaurant, meeting up to 10 people outdoors, kids’ sport and travelling for a holiday will all be allowed.

    However, masks will still be mandatory and strict restrictions on the number of people who can visit your home remain in place. You can find a detailed guide on the changes that are coming here.

    Business Resilience Package for Victorian Businesses

    The Victorian government is investing $3 billion in cash grants, tax relief, and cashflow support to aid businesses hit by the tight restrictions and help them prepare for COVID Normal. The types of support included in this package are divided into three categories: Business Support, Business Adaptation, and Waivers and Deferrals.

    Included in Business Support is the third round of the Business Support Fund for small- and medium-sized business ($822 million), with applications opening on 18 September 2020.

    Meanwhile, Business Adaptation involves funding, tools, and resources to help businesses adapt to COVID Normal. Tax and cashflow support amounting to $1.8 billion will be provided by the government under the Waivers and Deferrals scheme.

    For a detailed rundown of the inclusions of the Business Resilience Package, click here. Let us help you assess your eligibility and gain access to government support! Get in touch with us so we can schedule a consultation.

    Missed the Superannuation Guarantee Amnesty Deadline?

    The Superannuation Guarantee Amnesty ended last week on 7 September. Businesses that failed to apply for the SG amnesty but still have unpaid or late paid super to disclose will need to lodge a Superannuation guarantee charge statement and pay the super guarantee charge (SGC).

    The ATO will notify you of the quarters that are not eligible for the amnesty and charge you with an administration component of $20 per employee per quarter. They will factor in the circumstances of your business in their decision of whether the Part 7 penalty should be remitted and will also work with you through the debt processes to collect the outstanding amount.

    If you have any superannuation concerns, feel free to contact us and let us sort it out for you.

    Xero Starter Plans have changed

    COVID-19 has seen a spike in new businesses started in Australia, with the vast majority being micro/small business. To help, the Xero Starter Plan has been upgraded to help micro and small businesses digitise their accounts.

    It’s still $25 per month, however the plan now includes:

    • The bank statement limit has been removed
    • 20 invoices p/m (approx. 1 per business day)
    • 5 Bills per month
    • Hubdoc included
    • 1 employee through payroll

    To celebrate, Xero’s offering all new Starter plans at $12.50 for the first 4 months. This applies to new subscriptions only and for a limited time. See xero.com/pricing or get in touch with us for more information.

    Second Round of Cash Flow Boost

    If you’ve received initial cash flow boosts, you will automatically get a second round of cash flow boost when you lodge your activity statements for each monthly or quarterly period from June to September 2020.

    If you lodge:

    • quarterly, you’ll receive 50% of your total initial cash flow boost for each activity statement
    • monthly, you’ll receive 25% of your total initial cash flow boost for each activity statement.

    If you receive some funds into your account from the ATO and aren’t sure what it relates to, feel free to get in touch with us and we can investigate.

    More details can be found in the ATO website.

    Bankruptcy Protection Rules Until End of 2020

    Australia will extend its temporary insolvency and bankruptcy protection rules until the end of this year, providing businesses a lifeline to recover from the impacts of COVID-19.

    The rules, which were first introduced in March and originally due to expire on 30 September 2020, indicate that creditors cannot issue bankruptcy notices to businesses for debts below A$20,000.

    The creditors’ notice period to act on debts could also be extended, allowing businesses to keep trading without paying rent, tax, and loans.

    Contact us if you have any questions and we’ll help create a plan for your business.

    JobKeeper 2.0 Bill Passed By Federal Parliament

    The JobKeeper Amendment Bill 2020 was passed by Federal Parliament this week. Below are the key changes to the scheme:

    Extending the period of operation– The JobKeeper scheme and the provisions that allow employers to temporarily vary the working arrangements (by way of JobKeeper enabling directions or agreements under Part 6-4C of the Fair Work Act 2009) will now end on 28 March 2021 instead of 28 September 2020.

    New payment rates– The current JobKeeper subsidy rate for full-time workers of $1,500 a fortnight will drop to $1,200 from 28 September 2020, and then to $1,000 a fortnight from January 2021. Meanwhile, those who worked less than 20 hours per week in the relevant reference period (being the four-week pay period before either 1 March 2020 or 1 July 2020) will receive $750 from 28 September 2020, and then to $650 a fortnight from January 2021.

    Legacy Employers– Employers who no longer qualify for JobKeeper after 28 September will be classified as legacy employers, and will have to satisfy a 10% decline in turnover to have access to modified JobKeeper enabling directions.

    Decline in Turnover Test Certificate– Employers will need to obtain a 10% decline in turnover test certificate from an eligible financial service provider, including a BAS or Tax agent.

    These modified directions include reducing an employee’s ordinary hours to a minimum of 60% of the employee’s ordinary hours as they were at 1 March 2020, but cannot result in the employee working less than two consecutive hours in a day.

    A dispute can be brought before the Fair Work Commission about whether an employer holds a 10% decline in turnover certificate for the relevant period, including a dispute about whether a certificate is valid.

    Penalty– A penalty of up to $13,320 for individuals and $66,600 for body corporates or employers will be imposed if an employer doesn’t meet the 10% decline in turnover test and knowingly or recklessly tries to use the provisions or fails to notify employees that a JobKeeper enabling direction or agreement is not continuing due to not having met the requirements.

    JobKeeper Turnover Test Requirements

    From the 28th of September 2020:

    • businesses looking to claim the JobKeeper payment will be required to demonstrate that they experienced a decline in turnover using actual GST turnover, rather than projected GST turnover.
    • businesses will be required to reassess their eligibility with reference to their actual GST turnover in the September 2020 quarter to be eligible for the JobKeeper Payment from 28 September 2020 to 3 January 2021 (the first extension period).

    From 4th January 2021:

    • businesses will need to further reassess their turnover to be eligible for the JobKeeper Payment. They will need to demonstrate that they suffered a decline with reference to their actual GST turnover in the December 2020 quarter to be eligible for the JobKeeper payment from 4 January 2021 to 28 March 2021 (the second extension period).

    The required decline in GST turnover percentages will remain the same:

    • 30% for an aggregated turnover of $1 billion or less
    • 50% for an aggregated turnover of more than $1 billion
    • 15% for ACNC-registered charities other than universities and schools.

    Government-backed COVID-19 Loans Extended

    The government is extending its small business COVID-19 loans scheme until June 2021. If you need help to access these loans or you want to find out if you are eligible, don’t hesitate to drop us a message.

    Keeping Your Mental Health in Check and Supporting Others

    With the prolonged lockdowns and tight social restrictions, combined with the financial uncertainty that everyone is facing, it is important to keep our own mental health in check and look out for others. In this Forbes article, Psychiatrist Dr. Dawn Brown discussed some tips on how you can support those struggling with their mental health:

    • Allow for a conversation. As mental health can be a very sensitive matter, start slow and let them lead.
    • Treat them with respect and understanding. Watch your language, don’t judge, and be careful not to make assumptions.
    • Encourage seeking the support they need. Your support alone may not be enough, so encourage them to talk to a professional who is equipped with more resources to help them.
    • Be supportive of positive mental health and do your part to make your workplace better.

    Meanwhile, this article focuses on some weekend habits that can help you boost your happiness and productivity. Some ideas include:

    • Going for solo dates to renew your mind and experience something new. This exploration will give you fresh sources of creativity.
    • Do a weekly personal check-in. This will reorient your life if certain aspects are off track and help you assess your emotional well-being.
    • Connect with close friends and family. Stay in touch by scheduling video calls and starting meaningful conversations. Doing this will improve your connection and make you feel better.

    Government Launches Business Continuity Website to Support Businesses Amid COVID-19

    The Australian Government has launched the Australian Business Continuity website to support businesses with staff working remotely amid the pandemic.

    The site provides free practical tools for remote communications, collaboration, workforce management, and video conferencing, as well as advice on how to best use teleworking services.

    Get in touch

    Contact us if you have any questions. We offer tax and accounting services to small business in Cranbourne and surrounding suburbs. We are expreienced accountant in Clyde, Cranbourne.

  • Essential Tips to Grow Your Family Business

    Most family business owners have a similar goal in mind – to grow the business and pass it on to the next generation of their family.

    While keeping the business in the family and getting to work with your parents, siblings, or children who share common goals can be a fun and rewarding experience, running and growing a family-owned business isn’t without its challenges. Conflicting views on business and family matters such as succession of power, rivalry, favoritism, and disposition of assets often lead to tensions and even legal disputes.

    So if you want your business to thrive while keeping family control over multiple generations, it pays to plan ahead and be prepared to navigate these complexities. Below we’ve listed some ways to avoid the most common pitfalls when managing and scaling a family-owned business.

    Financial Planning for Your Family Business

    It is important for family businesses to build a financial strategy for the long-term to withstand external impacts such as economic downturns, changes in the industry landscape, and potential local or global crises. While ensuring that you turn a profit this quarter and the next is beneficial, proper financial planning that focuses more on the goals for the next generation is what establishes growth, smooth operations, and stability for future years.

    In order to grow your family business, your financial strategies should focus on putting the interests of customers and employees first, adapting to market uncertainties, accurate budgeting, managing risks in long-term investments, and promoting social responsibility.

    Business Management Planning

    One of the most critical drivers of growth and good bottom line performance for family businesses is strategic business management planning. An effective plan in this area includes:

    • A formally agreed business ownership structure
    • Determining management control and operational oversight
    • Hiring policies for family members
    • Compensation plan for family members who are active in the business (and those who are not)
    • Succession planning

    Managing Family Issues

    Family issues are unavoidable when running a multi-generational business. Disagreements on business matters such as mergers, sales, acquisitions, profit distributions, and compensation can be serious issues.

    When it comes to compensation and profit distribution, each family member who is a shareholder expects a share of sales proceeds and salaries. The best practice is to assess this based on comparable positions at similar companies.

    It is also important to note that not because someone is a member of the family, he or she must automatically be employed in the company. Only those who can perform well should be hired.

    Some of the criteria that should be considered include the family member’s skills and capabilities, education and other training, personal motivation to join, temperament, and the business’ ability and need to support the hire. Also, a well-defined job description and performance evaluation process should be a part of the system of employment for family members.

    To ensure that the core values, principles, and ethics are sustained across multiple generations, all family members employed in the business must do their part and cooperate. Failing to do so leads to mediocre quality of output, poor customer service and customer satisfaction, as well as tainted family business reputation.

    Succession Planning in Family Business

    Succession planning refers to determining company leadership and to whom shares of the company will be left.

    This process can be tricky when it comes to family businesses as it involves resolving conflicts about assets and management. While many fail to continue operating into the second generation, and even more fail to survive into the third and fourth generations, there are tips to sustain a family business and retain control over many years including:

    • Roles must be defined clearly even if they are held by close family members.
    • Strong company leadership and governance systems should be developed and put in place.
    • There should be fair and transparent procedures for conflict resolution.
    • Robust standards for business ethics and company culture must be established.
    • Vision and focus on long-term goals that span towards the next generations should be inculcated in the minds of everyone, particularly those in leadership roles.

    Although family businesses are typically rooted in shared goals and values, family ownership itself will not guarantee that you will be able to retain family control or the business will survive many decades. However, through the essential tips shared in this article, and our guidance, you will be able to face the unique challenges in running a family business head on.

    Got a question about your family business? Please don’t hesitate to get in touch.

  • COVID-19 Business Update – 9 September 2020

    COVID-19 Business Update – 9 September 2020

    Welcome back to our Weekly Digest. We hope you and your family are safe and doing well. Read on for this week’s update.

    Australia To Extend Bankruptcy Protection Rules Until End of 2020

    Australia will extend its temporary insolvency and bankruptcy protection rules until the end of this year, providing businesses a lifeline to recover from the impacts of COVID-19.

    The rules, which were first introduced in March and originally due to expire on 30 September 2020, indicate that creditors cannot issue bankruptcy notices to businesses for debts below A$20,000.

    The creditors’ notice period to act on debts could also be extended, allowing businesses to keep trading without paying rent, tax, and loans.

    Contact us if you have any questions and we’ll help create a plan for your business.

    Victoria to Deepen Contact Tracing

    Premier Daniel Andrews said on Monday that he would set up five suburban contact tracing teams to make it easier to target specific locations where people had been infected. This step is intended to further curb COVID-19 cases in the hot spot state.

    For information on state by state lockdown rules and restrictions, you can refer to this guide.

    Australia Strikes Deal to Roll Out 85 Million COVID-19 Vaccine Doses

    The government has reached a deal that would see Australian biotechnology giant CSL manufacture two separate vaccines.

    One is a vaccine being developed by AstraZeneca and Oxford University and trialled in Brazil, the UK, and South Africa, while the other is being developed in CSL’s own labs in partnership with the University of Queensland.

    If the trials become successful, CSL is expected to supply 30 million doses of the AstraZeneca/Oxford vaccine and 51 million doses of its own vaccine in early 2021.

    Businesses on JobKeeper – Pay employees by 13th Sep for fortnight 12

    For those businesses eligible for JobKeeper please ensure your wages are paid by 13th September in order to claim JobKeeper for the period started August 31st and ending September 13th.

    You can see JobKeeper Key Dates on the ATO’s website but please get in touch if you have any questions.

    JobKeeper 2.0 Bill Passed By Federal Parliament

    The JobKeeper Amendment Bill 2020 was passed by Federal Parliament this week. Below are the key changes to the scheme:

    Extending the period of operation– The JobKeeper scheme and the provisions that allow employers to temporarily vary the working arrangements (by way of JobKeeper enabling directions or agreements under Part 6-4C of the Fair Work Act 2009) will now end on 28 March 2021 instead of 28 September 2020.

    New payment rates– The current JobKeeper subsidy rate for full-time workers of $1,500 a fortnight will drop to $1,200 from 28 September 2020, and then to $1,000 a fortnight from January 2021. Meanwhile, those who worked less than 20 hours per week in the relevant reference period (being the four-week pay period before either 1 March 2020 or 1 July 2020) will receive $750 from 28 September 2020, and then to $650 a fortnight from January 2021.

    Legacy Employers– Employers who no longer qualify for JobKeeper after 28 September will be classified as legacy employers, and will have to satisfy a 10% decline in turnover to have access to modified JobKeeper enabling directions.

    Decline in Turnover Test Certificate– Employers will need to obtain a 10% decline in turnover test certificate from an eligible financial service provider, including a BAS or Tax agent.

    These modified directions include reducing an employee’s ordinary hours to a minimum of 60% of the employee’s ordinary hours as they were at 1 March 2020, but cannot result in the employee working less than two consecutive hours in a day.

    A dispute can be brought before the Fair Work Commission about whether an employer holds a 10% decline in turnover certificate for the relevant period, including a dispute about whether a certificate is valid.

    Penalty– A penalty of up to $13,320 for individuals and $66,600 for body corporates or employers will be imposed if an employer doesn’t meet the 10% decline in turnover test and knowingly or recklessly tries to use the provisions or fails to notify employees that a JobKeeper enabling direction or agreement is not continuing due to not having met the requirements.

    JobKeeper Turnover Test Requirements

    From the 28th of September 2020:

    • businesses looking to claim the JobKeeper payment will be required to demonstrate that they experienced a decline in turnover using actual GST turnover, rather than projected GST turnover.
    • businesses will be required to reassess their eligibility with reference to their actual GST turnover in the September 2020 quarter to be eligible for the JobKeeper Payment from 28 September 2020 to 3 January 2021 (the first extension period).

    From 4th January 2021:

    • businesses will need to further reassess their turnover to be eligible for the JobKeeper Payment. They will need to demonstrate that they suffered a decline with reference to their actual GST turnover in the December 2020 quarter to be eligible for the JobKeeper payment from 4 January 2021 to 28 March 2021 (the second extension period).

    The required decline in GST turnover percentages will remain the same:

    • 30% for an aggregated turnover of $1 billion or less
    • 50% for an aggregated turnover of more than $1 billion
    • 15% for ACNC-registered charities other than universities and schools.

    Government-backed COVID-19 Loans Extended

    The government is extending its small business COVID-19 loans scheme until June 2021. If you need help to access these loans or you want to find out if you are eligible, don’t hesitate to drop us a message.

    How Much Debt Can Your Business Take On?

    During an economic downturn when business is slow, a cashflow boost in the form of debt might be necessary to maintain the smooth running of your business. While there are plenty of lending options to consider including government-backed funding schemes, you shouldn’t borrow what you can’t pay back.

    So the question is: How much debt is too much?

    This timely Forbes article teaches how to calculate three important metrics that will keep you honest about how much debt you can take on. However, if you need personalised advice based on your unique business situation or some help with loan applications, drop us a message.

    Helping Your Team Overcome the Trauma of the Pandemic

    When COVID-19 hit, we witnessed a significant change in our lives. While the immediate concerns involve worker safety, disrupted supply chains, and financial losses, the pandemic can also adversely impact our mental health.

    Although some people brush off the trauma that the crisis has caused, how you cope can affect your life and your work performance in ways you may not imagine. This Harvard Business Review article outlines the things business leaders can do to support their team members.

    • Build a culture of connection by intentionally checking in with your team on a regular basis.
    • Offer flexibility and be inclusive.
    • Communicate more than you think you need to.
    • Modify policies and practices to reduce stress for everyone.

    The best part about adopting these steps is that they won’t just allow you to help the sanity of your staff during and after this pandemic, it can also make you a more effective leader even without this crisis. If you need personalised guidance on improving the overall performance of your business as you recover from the impacts of COVID-19, feel free to get in touch.

    Government Launches Business Continuity Website to Support Businesses Amid COVID-19

    The Australian Government has launched the Australian Business Continuity website to support businesses with staff working remotely amid the pandemic.

    The site provides free practical tools for remote communications, collaboration, workforce management, and video conferencing, as well as advice on how to best use teleworking services.

    Get in touch

    Contact us if you have any questions.

  • Four great ways to get more leads for your business

    It’s very rare these days that people just happen to find your business and become a client or customer with no work on your part. Your business has to grab people’s attention, turn curious visitors into leads and then convert those leads into sales.

    This means that the more solid leads you have, the greater your chances of making a sale. Solid leads are those contacts who are engaged in your business, fit your buyer persona andare at least somewhat motivated to make a purchase.

    Here are four great ways to develop more solid leads for your business this year.

    1. Target your ideal clients

    You might want your business to be relevant to everybody but the reality is that there is a specific target client who is ideal for your business. Those clients are the ones who are most likely to be attracted to your products or services and therefore the most likely to purchase them.

    These are the people to aim your marketing at. Knowing who they are and what they like helps you develop the products and services they’ll use. It also saves you money on marketing because you can target your ideal clients, rather than marketing to everybody and hoping somebody shows some interest.

    Even more important, when you get to understand your ideal clients you can build connections with them more effectively, generating leads that can turn into sales.

    2. Know your unique value proposition

    Your unique value proposition is what makes you different from your competition. Every business has something that sets it apart and therefore attracts a specific market.

    Your products or services might be of a higher quality. You might have better loyalty programs or a more specialized staff. Even the size of your business can be a unique value proposition. Smaller business can claim more personal, attentive and efficient service for their clients. Large businesses may be able to handle larger or global accounts.

    Determine what makes your business different from your competition and use that uniqueness in your marketing.

    Attend networking events

    Networking events are a great way to get some face-to-face time with potential leads. Yes, in-person marketing takes time and energy, and you can only talk to so many people at a time. But hearing an entrepreneur speak passionately about their business can be very persuasive.

    Meeting people at events gives you a chance to talk to directly to your potential clients and hear what issues they need solved.

    Just make sure the networking events you attend are relevant to your business and are functions that your ideal clients attend. Otherwise, you’ll be wasting that valuable time and energy.

    4. Create high-value content.

    With so many people using the Internet to find companies and make purchasing decisions, you need to ensure your business is easily found. That means developing high-value, informative website content that is compelling and encourages page visitors to submit their contact information.

    Make sure you use engaging calls to action. Write blog posts that drive traffic to your website. Develop tip sheets that quickly address some of your clients’ issues and get people to sign-up to receive them. Create a newsletter that clients or customers can subscribe to. The people on your newsletter subscription list become leads.

    Make certain, however, that your content is timely, engaging and relevant to your clients and your business.

    Final thoughts

    Leads don’t just magically appear out of thin air. It takes time and work to develop solid contacts that turn into paying customers. By knowing who your ideal clients are, understanding your unique value proposition, putting in some face-to-face time and developing relevant content, you can easily increase your solid leads this year. Need help growing your business? Get in touch.

  • How to grow your network without networking events

    How to grow your network without networking events

    Networking can be a key way to keep your business growing.

    Regardless of your industry or business size, it is hard to ignore the benefits of forming professional networks for potential partnerships, expanding your client base, and scaling up. However, while we are all constantly reminded about the importance of networking, reaching out to grow your network isn’t the same now thanks to the COVID-19 pandemic.

    Social restrictions to prevent spreading the coronavirus do not allow traditional networking approaches such as in-person conference events or face-to-face business meetings over coffee or dinner. However, this doesn’t mean that you should put all your networking efforts on hold, because no one can really tell when this global crisis will end.

    In fact, it becomes more important than ever to try new ways to increase your sales and ensure that your business stays afloat during these difficult times. In this article, we will explore a couple of strategies to keep up your networking efforts during the COVID-19 crisis and well into the future.

    Host Webinars, Online Courses, or Podcasts

    Webinars, online courses, and podcasts give you a chance to establish thought leadership and be at the forefront of your industry.

    Now that most of the world is in lockdown, it is the perfect time to start that project you’ve been meaning to work on but haven’t found the time. When done right, you will be able to engage people in your existing network and add more people to your database.

    Take the time to do some planning on the industry-relevant topics that you’d want to discuss on your webinar, online course, or podcast, and include interactive activities that will keep your audience engaged. Don’t forget to let the participants know about your other courses or webinars, as these subscribers can help you keep your network growing.

    Offer Free Downloadable Content

    Whether you are creating fresh content or repurposing existing content that you already have, aim to provide value that will attract new people to your network.

    You might create ebooks, courses, whitepapers, research reports, and other valuable pieces of content that people in your industry will find useful. Offer your content to your current contacts and promote them even further through social media, email marketing.

    Take Part in New Online Communities

    As the COVID-19 pandemic changes the way we interact, you should move online to connect with more people. Join virtual discussion groups and online communities that will give you an opportunity for targeted networking.

    When you do an online search of relevant groups, you will find that there are thousands of them. You don’t have to join every single one– just choose two to three that are most suitable and start participating. Engage by reacting and commenting on other people’s posts, provide useful tips and consider sending a direct message to start a conversation. Don’t try to be too “salesy” though.

    Tailor your messaging

    When trying to connect with people online, don’t just send a stock-standard template– develop strong relationships by maintaining sincere and genuine interactions. In other words, don’t send a message that you wouldn’t be comfortable receiving.

    Make the effort to personalise each email instead of sending a generic message. You can reference a past event that you both attended or projects that you worked on together in the past, if there are any, in order to show authenticity when reconnecting.

    If this is not applicable, you can also share encouraging words and stories, or ask if there’s anything you can help with.

    Participate in Philanthropic Initiatives

    Times of crisis teach us that we are stronger if we work together. In these trying times, there are a lot of initiatives to help those in need.

    By collaborating with charitable organisations and participating in volunteer programs, you are hitting two birds with one stone– doing some good for society and tapping into opportunities to expand your network.

    Aside from adding people you’ve worked with in these philanthropic events into your contact list, you can also share these experiences on social media.

    Keep Growing Your Network

    These are tough times for many people, and the idea of networking may not be on your priority list. However, it is essential to keep working on those human connections, as the effort you invest in making them will have a significant return on your business in the long run. By nurturing and strengthening your relationships during this period, you will enjoy positive impacts that last until better times return.

    Got a question?

    Want to chat about growing your business? Please don’t hesitate to get in touch with us.

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  • A Guide to Business Recovery in a pandemic world

    As you know, the COVID-19 pandemic is not just a public health issue, it’s also caused lockdowns and financial worries on a global scale.

    Small businesses are not strangers to the impacts of the pandemic. In a survey by the International Trade Centre (ITC) among 1,200 businesses in 109 countries between 20 April and 4 May, the pandemic has strongly affected 60% of the businesses. The results of the survey also show that two-thirds of small businesses are severely hit, with a high risk of permanently shutting down within a matter of months. Almost all business sectors have been experiencing declining profits, liquidity that is drying out, and even bankruptcy.

    Although the short-term outlook varies depending on your industry sector, it is important for all business leaders to set up a strategy that will guide their way towards recovery. If you want some tips on how to hit the ground running after the crisis, this guide will outline the steps to get your business back on track.

    Assess the Damage

    Before taking any action, the first thing you need to do is to assess the financial impacts the pandemic has had on your business. You can determine the impact by checking your key numbers.

    Take a look at your financial statements, especially the profit and loss or cashflow statements and compare the data to the previous year. If you have any questions about the financial side, please feel free to ask us. Aside from knowing and understanding your numbers, you also need to be mindful of any other ways that your business has been adversely affected. You have to account for factors such as the reduction in your workforce and customer churn when preparing a plan to rebuild.

    Rethinking Your Business Plan

    What may have worked for your business before COVID-19, may not deliver the same results in the current climate, or the post-pandemic world. Now is a good time to fine tune your business model and think about how you can pivot and adapt.

    For example, some people may still remain cautious about going to physical stores even if lockdowns are easing. That means you could consider strengthening your online presence and digital capabilities to accommodate customers who prefer online shopping.

    You’ll also find a bunch of useful resources online including free webinars and other tools you can use to address coronavirus-specific challenges. We’d also suggest you chat to your trusted business advisor for more focused and personalised guidance.

    As you rebuild your business, you need to pay attention to trends in your industry as a whole and try to spot untapped opportunities. Be aware of your business’ strong and weak points and adjust accordingly.

    As the coronavirus seems to have flipped the business world on its head, it might also be time for you to revisit the goals you’ve set to make sure that they are still feasible given the current market conditions. After setting realistic goals, you will then need to adjust your action plan to get towards those goals. Get in touch with us if you have any questions.
    Additional Funding for Your Recovery
    Unless you had a large amount of cash before the pandemic started, it is likely that you may need some additional financial support to jumpstart your business.

    There are a lot of funding options for small businesses that you can consider including government-backed business loans, wage subsidies, grants, and other support schemes. Chat to us to find out what’s best for you.

    Assess Your Budget

    As we come out of the pandemic, expect that you will have to spend money before you can make money. For instance, if you had to lay off employees when the coronavirus hit, you may have to spend money on hiring and training new employees if you can’t rehire the people that you had to let go. You might also need to prepare for additional spending on cleaning, inventory and marketing post-pandemic.

    Whatever your additional costs are, the key is to have a clear idea of the necessary spending that you need to budget for and which ones can be reduced or eliminated so you can make the most of the revenue that is coming in. As much as possible, keep your operating budget lean so you have the capacity to invest in future growth opportunities.

    Develop a Timeline

    As much as you want to get all business matters sorted out at once, this is far from realistic. Try to take stock of where everything is up to and decide what to prioritise. From there, create a timeline that you will follow to get your most important business activities done first.

    While you accomplish the steps in your action plan, make sure that you’re tracking your progress. If possible, do a weekly check of what’s working and what’s not, and then make the necessary tweaks. Don’t waste time and resources on business activities that are not producing a solid return on investment. As your business starts to return to normal, you might transition to reviewing your financials on a monthly basis.

    Prepare a Contingency Plan

    The COVID-19 crisis is a wake-up call that shows us unexpected events such as this can disrupt your small business at any time. Learn from this experience and prepare a contingency plan that will cushion your business from possible future shocks.

    Aside from thinking outside the box and having a Plan B (and even a Plan C, D, and E) that will help you prepare for the worst, improve your position in tough times by building up your cash reserves, paying down your debt, cutting down on non-essential spending, and increasing operational efficiency by streamlining processes and boosting your employees’ productivity.

    Leading Your Business Towards Recovery

    While COVID-19 has affected nearly every person and business in some way, you should take into your own hands the task of finding the light at the end of the tunnel. In order to cope with the changes and find your way to the so-called “New Normal”, you must be agile enough to step up your game and confront the business challenges now and in the uncertain times ahead.

    While you prepare to get your business back to full speed, it also helps to have a business expert to guide you in rethinking your business strategy and rebuilding your business into a more resilient one. If you need personalised advice about your specific situation, get in touch with us so we can work out a plan.

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  • Preparing for the end of JobKeeper

    Since the government announced the $70-billion JobKeeper program to support businesses and their employees during the COVID-19 pandemic, many small- and medium-sized businesses and non-profit organisations heavily relied on this scheme to stay afloat.

    According to a recent survey by the Australian Institute of Company Directors on the impact of COVID-19, over 40% of the respondents reported reliance on JobKeeper payments. 47% of SMEs indicated that the JobKeeper Scheme had provided the most relief.

    So given the deep reliance on JobKeeper and the changes coming in September, now is the time to think about how your business will be impacted. If you’re still eligible for JobKeeper at the end of September, you will not be receiving the same amount as you are now. If you are no longer eligible, you will not be able to receive this wage subsidy support at all.

    As a business owner relying on the relief from this scheme provides, the end of JobKeeper could create some concerns. So what exactly can you do to prepare the end of the JobKeeper program?

    Conduct Scenario Planning

    Planning makes a huge difference. So before we get to the end of the JobKeeper program for you, make sure that you have explored various scenarios for the future and plan for these accordingly.

    Your scenario planning should include thinking about the worst possible scenario and preparing for it. Now is also the time to revisit your business and know which levers can you pull in the event that the government wage subsidy scheme ends earlier than expected.

    Secure additional credit lines, liquidity, or equity for your business if needed. Chat to us and we’ll help map out a plan together.

    Evaluate Your Business Model

    Many businesses have developed creative ways to pivot during the pandemic. Restaurants have focused on takeaways, fitness centres have launched online sessions, and others have created totally new products or services.

    What can you do to reimagine your existing business model and understand new industry norms and market trends? Don’t just wait for your peers to do something and follow suit. Those who strategise and act first tend to find their way to the front in their industry compared to reactive players.

    Keep nimble

    In today’s business landscape, adaptability and flexibility are the key to surviving and thriving. The unprecedented global crisis has put us in a tricky situation, but being flexible in the way you do business can help you roll with the waves.

    From remote work arrangements to the way you design your payment models for your customers, there are countless ways to adopt these characteristics that will help you scale back quickly even as the government support ends.

    Review Your Expenses and Financing Arrangements

    Run your business as lean as possible and cut down on unnecessary expenses so you can save as much cash as you can while you still have support from the JobKeeper program. By keeping a bit of a war chest, you will be in a stronger financial position when it ends.

    Additionally, if business is picking up, you might be in a good position to secure additional credit. You can also look into refinancing your existing obligations.

    Keep in mind that insufficient cashflow and capital can easily throw your business off track– so secure your access to the finance you need to carry on and boldly face the uncertain months ahead.

    You Don’t Have to Do it Alone…

    In these unpredictable times, changes such as the early end of the JobKeeper program can have a massive impact on your strategy and direction. We understand that these events can be confusing and frustrating, but you don’t have to face these business challenges alone.

    It makes perfect sense to work closely with your trusted business advisors. If you need professional guidance at this time, please feel free to get in touch with us. We’ll help you strengthen your position now and give you a better chance of thriving in the future.

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