S & H Tax Accountants

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  • What is a balance sheet and how does it help me manage my finances?

    What is a balance sheet and how does it help me manage my finances?

    You’ve likely heard the phrase “in the black.” Your balance sheet is the tool that shows you whether your business is indeed “in the black.”

    Your balance sheet includes a section for your assets (things you own or will receive that have value), your liabilities (what you owe to others) and equity (retained earnings and funds from investors) at a specific time. The relationship between these three sections shows how financially healthy your company is. If your assets outweigh your liabilities, you’re in the black. However, if you have more liabilities than assets, you’re in the red – which is undesirable.

    But how does a balance sheet help you to manage your finances? Read on to find out.

    Track your assets and liabilities over time

    Most companies prepare a balance sheet quarterly, but you can certainly complete yours more or less frequently than that. The key is to prepare one regularly to understand how you perform over time.

    When you have a set of successive balance sheets, you can clearly see how your assets and liabilities measure up on average. For example, you may have had a costly period with critical equipment requiring replacement or repair. That balance sheet might not look so good if that’s the only one you have to interpret.

    But when measured against other balance sheets, you may see that it was just an anomaly from which you have handily recovered. Perhaps the improvements even helped you to earn more money once they were complete. There’s no way to know unless you use several balance sheets together.

    Measure risk

    Your assets act as security for your business because if you found yourself in a situation where you had to, you could sell them to cover your debts. This is how you determine how liquid your business is. Your balance sheet easily identifies how much you own and how much you owe, so you have an easy way of assessing your liquidity.

    This also enables you to determine how much risk your business faces. If you find you couldn’t readily pay what you owe by liquidating your assets, it would be clear that you couldn’t currently take on any more risk by borrowing money or buying something new.

    Calculate decisions

    Similarly, your balance sheet will help you see if now is a good time to spend your money or if you should hold off. For example, if your business is healthy, with plenty more assets than liabilities and easily able to pay shareholders, that would indicate a good time to make some capital improvements.

    If you find things more precarious, your balance sheet will guide you to hold off on making any major purchasing decisions until you’re in better shape. It may even indicate you need to find a way to offload some debt to get back on track.

    Use with other financial statements

    Your balance sheet helps you see your assets and liabilities clearly. It becomes even more useful when used with the other two main financial statements: income statements and cash flow statements.

    An income statement (which may also be called a profit and loss statement or an earnings statement) shows your revenues, expenses, and profitability. It tells you what you earn and the costs you incur to make that revenue.

    Your cash flow statement will show what money came in and went out of your business during a specified period. Its primary purpose is to highlight your ability to operate based on how money moves through your business.

    Together, these three financial statements give you a clear picture of how your company operates and how financially healthy it is.

    Final thoughts

    If you’re unfamiliar with financial statements, a balance sheet can initially seem intimidating – especially if it shows that you’re in the red. However, once you prepare one for your business, you will find it invaluable to help you see where you stand and what you can do about it.

    Get in touch to have your balance sheet questions answered and learn more about how we can help you prepare this critical financial statement.

     

    Recording your financial information is a useful way of identifying your financial position. S & H Tax Accountants are able to assist you with recording your financial information accurately as well as being able to guide and assist you to reach your financial goals. Whether it be a balance sheet or income statement, our accountants can do it all. Book an appointment today at S & H Tax Accountants, call us at 03 8759 5532.

  • How small start-ups can level the playing field against established competitors

    How small start-ups can level the playing field against established competitors

    Starting a small business is both exciting and daunting. While the entrepreneurial spirit may drive you to take the leap of faith, the reality is that you may be entering a market that has already attracted some large competitors.

    It can be intimidating to think about competing against larger, more established competitors, but it’s not impossible. Here are some steps you can take to help your small business take on larger, more established companies.

    1. Identify your unique selling proposition (USP)

    Your USP is what sets you apart from everyone else. That USP could be the quality of your product, your excellent customer service, your laser-like focus on one area of expertise, or your innovative approach to solving a problem.

    When identifying your USP, ask yourself what it is that makes you different. Explore why you felt there was a need for your offering–what pain point are you solving that others aren’t already solving? Did you create this business because you noticed a gap in the market? Did you see a problem that didn’t yet have a solution?

    Take time to identify what makes your business unique and use that to your advantage. Highlight your USP in your branding and marketing strategies.

    2. Focus on your niche

    One of the advantages of being a small business is you can be more niched than larger companies. Focus on a specific niche within your industry and become an expert in that area. By honing in on a particular area or pain point, you can create a loyal customer base that appreciates your expertise and the value you bring to the market.

    3. Build strong relationships with your customers

    As a small business owner, you have the opportunity to build personal relationships with your customers. Take the time to get to know your customers and their needs. Provide excellent customer service and go the extra mile to make them feel valued. Ask them what they’d like to see you offer, or how you can serve them better.

    Clients and customers like the personal touch, and they appreciate feeling seen and understood. When you can have a one-on-one relationship with your customers, they’re more likely to stick with you.

    4. Embrace technology

    Technology can level the playing field for small businesses. You can use technology to automate processes, streamline operations, and reach customers online. Embrace social media and digital marketing to expand your reach and build your brand. Use tools like customer relationship management (CRM) software to manage your customer interactions and track your sales pipeline.

    Technology isn’t just for the big companies. Anyone can use it to improve productivity and enhance the customer experience. By leveraging technology, you can compete with larger companies without breaking the bank.

    5. Collaborate with other small businesses

    Collaborating with other small businesses can help you reach a wider audience and gain credibility. Look for opportunities to work with businesses that complement your products or services. For example, if you run a boutique clothing store, you could collaborate with a local shoemaker to offer a bundled product. By working together, you can tap into each other’s customer base and create a mutually beneficial relationship.

    6. Offer excellent value

    Large companies may have more resources, but that doesn’t mean they always offer the best value. As a small business, you can provide excellent value by offering personal service, high-quality products, and competitive pricing. Make sure you price your products and services competitively while still maintaining profitability.

    By offering excellent value, you can build a loyal customer base that will choose your business over larger competitors.

    7. Stay nimble

    A huge advantage of being a small business is your ability to pivot and adapt. You can make an adjustment in much less time than a large company can. Traditionally, large companies stay more focused on their traditional offerings, preferring not to experiment or make changes, which gives you an edge.

    Stay nimble and be willing to adjust your strategy as needed. Keep an eye on market trends and be open to new opportunities. As you become more of an expert in your field you’ll be able to anticipate changes in the market.

    Don’t be afraid to experiment and try new things. By staying nimble, you can stay ahead of the competition and adapt to changing market conditions.

    By identifying your USP, focusing on your niche, building strong relationships with your customers, embracing technology, collaborating with other small businesses, offering excellent value, and staying nimble, you can take on the big players in your industry. Remember, success doesn’t happen overnight. It takes hard work, dedication, and a willingness to learn and adapt. Keep pushing forward, and you’ll get there.

    We understand that it can be difficult to start-up a business, that is why we here at S & H Tax Accountants are here to help. Our accountants are well-qualified and experienced and thus, are able to give accurate advice and help their clients. We aim to provide the best possible service to our clients such as collaboration with small businesses and ways to make an excellent customer base. Book an appointment with S & H Tax Accountants call us at 03 8759 5532 or email us at info@sahtax.com.au.

  • Managing Debt and Creating a Debt Repayment System

    Managing Debt and Creating a Debt Repayment System

    Debt can be a significant burden on one’s financial life. It can cause stress, anxiety, and make it difficult to achieve financial goals. However, with a little planning and dedication, anyone can create a debt repayment system and get on the path to financial freedom.

    Here are some tips for managing debt and creating a debt repayment system:

    Take Stock of Your Debt

    The first step in managing debt is to understand the extent of the problem. Make a list of all the debts you have, including the balance owed, interest rate, and monthly payment. This will help you determine which debts to tackle first and give you a clear picture of your overall debt situation.

    Focus on High-Interest Debt

    High-interest debt, such as credit cards or personal loans, should be your top priority. These debts often have interest rates of 15% or higher, making them the most expensive debts to carry. By paying off high-interest debt first, you can save money on interest charges and free up more money to pay off other debts.

    Create a Budget

    To pay off debt, you need to free up money in your budget. A budget can help you track your expenses, identify areas where you can cut back, and allocate more money towards debt repayment. Be sure to include debt payments as a fixed expense in your budget, so you don’t fall behind on payments.

    Consider Consolidating Debt

    If you have multiple high-interest debts, consolidating them into one loan can make it easier to manage and potentially lower your interest rate. You can consolidate debt by taking out a personal loan or using a balance transfer credit card. Just be sure to compare interest rates and fees to ensure you’re getting a good deal.

    Make Extra Payments

    Making extra payments towards your debt can help you pay it off faster and save money on interest charges. Even small extra payments can make a big difference over time. Consider using any extra money you receive, such as a tax refund or bonus, towards debt repayment.

    Automate Payments

    Setting up automatic payments for your debt can help you stay on track and avoid late fees. Many lenders and credit card companies offer automatic payments, so you don’t have to worry about remembering to make a payment each month.

    Stay Motivated

    Paying off debt can be a long and challenging process, but staying motivated can help you stick to your debt repayment plan. Set small goals along the way, such as paying off a credit card or reaching a certain milestone, to help you stay on track.

    In conclusion, managing debt and creating a debt repayment system requires discipline, dedication, and a plan. By taking stock of your debt, starting with high-interest debt, creating a budget, considering consolidating debt, making extra payments, automating payments, and staying motivated, you can pay off debt and achieve financial freedom. Remember, it’s never too late to start, and every small step towards debt repayment counts.

     

    We understand that managing your debt can be difficult and tiring. To relief your stress, contact S & H Tax Accountants. We are a local accounting firm that is known as one the best firms in Cranbourne. We have excellent staff, that can help make a debt repayment system, as our accountants are well-qualified and experienced. Make a booking today at S & H Tax Accountants, call us on 03 8759 5532 or you can email us on info@sahtax.com.au.

  • Essential steps to managing your family’s finances

    Essential steps to managing your family’s finances

    Managing family finances can be a daunting task, but with the right tools and mindset, it can be a smooth and effective experience. Here are some essential steps for managing your family’s finances, including budgeting, saving, and planning for the future.

    Budgeting

    Budgeting is the cornerstone of managing family finances. It involves creating a spending plan that outlines your family’s income and expenses. A budget helps you to keep track of your finances, avoid overspending, and save for the future. Here are some steps to follow when creating a budget:

    Calculate your monthly income: This includes your salary, any rental or investment income, and any other sources of income.

    List your monthly expenses: This includes your rent or mortgage payment, utility bills, groceries, transportation, entertainment, and any other expenses.

    Determine your discretionary income: This is the amount of money you have left after deducting your expenses from your income.

    Decide which expenses are most important: Allocate your discretionary income to your most important expenses first, such as savings, debt repayment, and emergencies. Any money left over after that can go to non-essential expenses.

    Track your spending: Keep track of your expenses to ensure you stick to your budget. If you’re not sticking to your budget, identify areas where you could make adjustments. It’s possible you need to spend less, or maybe you can take on a side hustle for a while.

    Saving

    Saving is an essential part of managing family finances. It involves setting aside money for emergencies, retirement, education, and other long-term goals. Here are some tips to help you save more:

    Start small: Even if you can only save a small amount each month, it will add up over time. Even $10 a month to start adds up if you keep doing it. Once you’re used to setting aside $10 a month, see if you can put aside $20 a month.

    Make saving a priority: Set up automatic transfers from your checking account to your savings account each month. This way, you don’t have to think about it.

    Cut back on expenses: Look for ways to reduce your expenses, such as eating out less or unsubscribing from services you don’t use.

    Use savings apps: There are several savings apps that can help you save money effortlessly. Research which will work best for you.

    Set savings goals: Setting specific savings goals can help motivate you to save more. As with above, you don’t have to start out with a huge goal. Start with a smaller goal that you can attain and build from there.

    Planning for the future

    Planning for the future is an essential part of managing family finances. It involves setting long-term goals and creating a plan to achieve them. Here are some steps to follow when planning for the future:

    Set financial goals: Determine what you want to achieve financially, such as paying off debt, saving for retirement, or buying a home.

    Create a financial plan: Develop a plan that outlines how you will achieve your financial goals, including how much money you need to save each month and how you will invest your money.

    Invest wisely: Make sure you invest your money in a way that aligns with your financial goals and risk tolerance.

    Review your plan regularly: Review your financial plan regularly to ensure you are on track to achieve your goals.

    Seek professional advice: If you are unsure about how to create a financial plan, consider seeking the advice of a financial planner. They can help you determine which goals are a priority, how to best allocate your money, and strategies for investing for your future.

    In conclusion, managing family finances involves budgeting, saving, and planning for the future. By following these essential steps, you can ensure that your family’s financial future is secure. Remember, it’s never too late to start managing your family’s finances, so start today!

     

    At S & H Tax Accountants, we are aware that managing family finances can be extremely tiring and daunting. At S & H Tax Accountants, we provide you with best possible service, as we have well-qualified and experienced accountants. They can help you create a financial plan and guide you in making a budget. BOOK TODAY at S & H Tax Accountants, call us on 03 8759 5532 or you can email us on info@sahtax.com.au.

  • Bookkeeping Basics for Small Business Owners

    Bookkeeping Basics for Small Business Owners

    On average, small business owners spend 10 hours each week recording, organizing, and processing financial transactions – everything from accounts receivable and payable to employee payments, expense receipts, and supplier invoices.

    While the process may be time-consuming (and tedious!), effective bookkeeping is the foundation of sound financial management – which in turn, is the lifeblood of your business.

    Feeling overwhelmed by mountains of paperwork and complex calculations? Here are three bookkeeping basics to help ensure a healthy financial future for your small business.

    Faithfully track expenses

    Accurate and consistent expense tracking is crucial for claiming tax deductions and lowering your overall tax bill. Plus, analyzing expenses can offer crucial insights into spending patterns and the overall profitability of your small business.

    Business Finance Man Calculating Budget Numbers, Invoices And Fi

    Small business owners should consider using a mobile app for simple, consistent expense tracking. Options like Expensify and Receipt Bank help do away with manual data entry with automated functions, including:

    • Receipt data capture via your smartphone’s camera (no need to hold onto paper receipts, which can get lost or misfiled);
    • Synchronization with your phone’s GPS to track mileage of business travel; and
    • Importing bank and credit card data, plus integration with accounting software.

    Systematic invoicing and filing

    Efficient invoicing is about more than ensuring you get paid in a timely fashion. An invoice is an official record of the terms of each transaction and must be completed accurately to avoid errors in your bookkeeping process.

    Here are a few tips for professional invoicing:

    • Ensure each invoice includes all the important details: contact information, a tracking number, a detailed list of products or services rendered, and a breakdown of the total amount due;
    • Provide an electronic receipt to reduce waste and create a “paper trail” if there’s ever a dispute; and
    • Maintain an invoice-filing system that records when you sent the invoice, to whom, when payment was made, and any reminders sent out.

    An online invoicing tool can streamline this aspect of your bookkeeping process and provide an efficient backup filing system.

    Save time with accounting software

    By law, every business is required to keep organized and timely financial records. However, manually posting income and expenses to ledgers and journals is time-consuming – not to mention stressful for the math-averse.

    Shave some time (and stress) off your weekly bookkeeping with an all-in-one accounting software solution like Xero, QuickBooks, ClearBooks, or KashFlow.

    Online bookkeeping offers numerous advantages, such as:

    • Instant reports and real-time insights on profits and loss, customer accounts, payroll – and your overall financial “big picture”;
    • Simplified data entry so you can collate and print invoices, purchase orders, and payroll much faster than with manual methods; and
    • Improved accuracy through automation (once data is entered, the software handles all subsequent calculations and processes – including invoicing).

    When it comes to accounting, vigilance is the key to mitigating risk and ensuring the long-term profitability of your small business. Be sure to set aside time each day, week, and month to update and review your books to catch any red flags and ensure your finances are on track. 

    At S & H Tax Accountants, we understand that keeping a record of your transactions, organizing your documents and keeping your receipts can be very tiring. That is why we are here to provide you with the highest level of service possible. We have well-qualified staff members who are able to help you. Book an appointment today, call us at 03 8759 5532 or email us at info@sahtax.com.au.

     

    The post Bookkeeping Basics for Small Business Owners appeared first on S & H Tax Accountants.

  • Business Update – 22 March 2023

    Business Update – 22 March 2023

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

    Why Australian banks will come out the other side of the global crisis

    According to Reserve Bank of Australia assistant governor Chris Kent, Australia’s banks are “unquestionably strong” and are equipped to handle a prolonged period of market strain. The banks are already well advanced on their bond issuance plans for the year and could defer their issuance for a while.

    Relief as Credit Suisse and UBS strike a deal

    Though not out of the woods yet, fundies feel that the UBS-Credit Suisse deal should do a great deal to curb an impending worldwide financial crisis. In an all-share deal, UBS will pay 3 billion Swiss francs ($4.5 billion) for its former rival.

    High fares and reduced capacity hurting airline recovery

    Sydney Airport’s chief executive, Geoff Culbert, blamed high airfares and reduced airline capacity for stagnant domestic passenger recovery, as the airport reported 2.7 million travellers for February.

    4.7 million Australians getting a cash boost to their social security payments

    The federal government is doing what it can to support Australians “feeling the pinch”. Singles and couples on the Age Pension, Disability Support Pension and Carer Payment will receive a $37.50 per fortnight increase, while people over 22 without children will receive a $27.40 per fortnight increase.

    Recession-proof suburbs do exist

    As economists predict Australia could fall into a recession this year, four NSW suburbs have been marked as safe from any potential downturn. Learn where they are here.

    Adelaide gets the first mobile phone detection camera

    South Australia started a pilot program where cameras are installed on some of the state’s most high-risk roads to reduce driver distraction. Drivers caught using their phones while driving won’t face penalties until next year due to a grace period.

    Virgin Australia IPO dampened amid Credit Suisse collapse

    Global banking turmoil and share market volatility could cause a delay in the planned initial public offering and relisting of Virgin Australia. It was initially scheduled for June.

    Further losses are expected this week for shareholders

    Though there are plenty of reasons for optimism as world exchanges try to recover from last week’s turmoil, experts say that shareholders should expect further losses this week.

    Government supports another wage rise but won’t say how much

    Labor says it supports another wage rise for workers. However, they have been avoiding the question of what they feel that amount should be. The government is currently finalising its submission to the Fair Work Commission’s annual wage review.

    Get in touch

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

    If you are are wanting to start a new business but have some concerns about recession or even about how to manage your finances in these tough circumstances, then please contact S & H Tax Accountants. We have very experienced staff who are always willing to assist you or advise you on any concerns that you might have. Please book an appointment today at S & H Tax Accountants, call us at 03 8759 5532 or email us at info@sahtax.com.au.

  • Financially Savvy Women: 5 Strategies to Improve Your Financial Literacy

    Financially Savvy Women: 5 Strategies to Improve Your Financial Literacy

    It is well established that financial literacy is a key component of financial independence. The more you know and understand about finance, the better equipped you are to make important decisions. Historically, women have had lower financial literacy scores than men for many reasons, including social norms, a lack of access to resources, and needing to focus on other issues.

    That said, women are living longer than men and studies suggest they face systemic barriers that make it difficult for them to achieve the same level of economic security and financial literacy that men can obtain. This, in turn, makes it increasingly difficult to accumulate wealth, plan for retirement, and invest money, despite women’s increased involvement in higher education and in the workforce.

    In recognition of International Women’s Day, here are some steps women can take to increase their financial literacy so they can make informed financial decisions.

    What is financial literacy?

    Financial literacy is an understanding of the value of money, how money works, and how to make money work for you.

    Seek out information

    Unfortunately, due to a lack of access to educational resources, a lack of financial resources and ongoing stereotypes about women’s ability to manage finances, women have often been shut out of financial conversations.

    A great step in building your financial literacy is to start pursuing information and knowledge. There are many resources available online, including introductory personal finance courses, newsletters, podcasts, and websites that explain key concepts. Many of them are written for a general audience, so they’re designed for beginners to understand.

    Find them, subscribe to them, and learn from them. Ask us for specific recommendations for your situation.

    Find an advisor you trust

    Women tend to view financial risks and investments differently than men do, and they tend to feel less confident in financial conversations. Find an advisor who respects you and your goals, and understands your unique financial needs. Make sure it’s someone you feel comfortable talking with and asking questions of. Ask them to explain everything to you, so you understand all the important terms, phrases, and strategies.

    Don’t be tempted to think you’ll never understand finance. You can, and you will. You just need someone to explain it to you in a way that is meaningful to you. And you need someone who builds a strategy based on your financial responsibilities and pressures.

    Build an emergency fund

    Build an emergency fund of your own. Having an emergency savings account gives you some financial independence, in case of a crisis. Find a way to save up three to six months of expenses, so that if you lose your income or financial resources, you have some breathing space. The work you put into saving that money and managing the savings account will teach you about how money works.

    Check your credit score

    If you have any credit in your name, you have a credit score. Knowing it and understanding the role it plays in your finances is a massive step towards financial literacy. Your credit score affects your eligibility for loans, leases, credit cards, and mortgages. Utility companies might check your credit score when you open an account, and rental agencies take it into account when renting to you.

    If your credit score is low, look into ways to build it up. There are many resources available to teach you about improving your credit score.

    Continue educating yourself

    You don’t have to become an expert in finance to be financially literate, but having a basic understanding will help you make better financial decisions, and it will help you get on the path to financial independence.

    Commit yourself to continually learning about finances, or at least to always being involved in your financial decisions, so you have control over your future.

    Final thoughts

    Financial independence involves you having the money you need to live the lifestyle you want, but it also means being confident in making your own financial decisions. Financial literacy can give you some of the confidence you need to make important decisions.

    If you need assistance understanding your finances, making sure that your information is correct or even building an emergency fund, S & H Tax Accountants can always help. We have friendly and experienced staff who are always willing to help and guide you to have the ability to be financially independent. Book in today at S & H Tax Accountants, call us at on 03 8759 5532 or you can email us on info@sahtax.com.au.

  • Return on investment vs cost: how to weigh them when making business purchases

    Return on investment vs cost: how to weigh them when making business purchases

    Deciding to purchase something to help your business is a big decision. It can be difficult to part with hard-earned money, especially in the early days. To understand the right time to invest by purchasing something for your business, you must calculate whether the Return on Investment (ROI) would be profitable.

    The cost is the amount of money you spend making the purchase, plus any indirect costs (such as training costs) related to the purchase. The ROI is calculation of financial gains or benefits that you obtain as a result of that cost.

    To determine ROI profitability, there is a simple formula you can use. If the purchase yields a positive return, it can be considered profitable.

    However, if the purchase does not earn back the amount of money it costs, it would be considered a negative return on investment. Read on to learn more about how to weigh a potential return on your investment versus the cost.

    Return on Investment Formula

    Using a formula to calculate the ROI only offers a rough initial estimate. Other factors might come into play, such as future work you will get because of the new asset or unforeseen expenses. The formula to determine ROI is:

    ROI = (Net Profit / Cost of Investment) x 100

    Let’s see an example

    Suppose you run an environmental surveying company. You have three employees who spend their time in the field gathering data and taking stock of how a proposed development project would affect the landscape. Vegetation, waterways, animals – everything is taken into consideration.

    You have one client who would like you to perform a survey of very rugged terrain. They would pay $2500 if you could complete this work, but covering the landscape would be difficult and take time.

    The only way to do it effectively would be to purchase a drone for $1000. The new equipment would make taking on this work possible and save many hours spent physically in the field. It would cost $200 to train each employee how to use the drone.

    Additionally, having a drone would mean you could offer your new aerial surveying services to other clients who are undertaking more large-scale or complex projects.

    Calculating the ROI of obtaining new equipment for this project

    You would first tally your total expenses and expected revenue to decide whether this purchase would be profitable.

    Expected Revenue = $2500

    Total Expenses = $1000 + ($200 x 3) = $1600

    You would then subtract the expenses from your expected revenue to determine the net profit.

    Net Profit = $2500 – $1600 = $900

    To calculate the expected return on investment, you would divide the net profit by the cost of the investment and multiply that number by 100.

    ROI = ($900 / $1600) x 100 = 56.25%

    Your return on investment would be 56.25%, which is a positive return. Not only that, but your new equipment may allow you to gain more work in the future, making your ROI even better.

    What happens when you don’t put your investment to work

    What if you purchase the drone but find the learning curve overwhelming, and it winds up collecting dust in a corner?

    In this case, your client may not hire you, or the hours required to do the work on foot may make taking on the project cost prohibitive. This would result in a negative return on investment, especially if you have already performed the employee training. Your ROI would be zero, plus you would be down $1600 from the initial expense and training.

    Final thoughts

    While the idea of making a large purchase to benefit your business can be daunting, there are often significant rewards that come with taking the plunge. Do your research, calculate if the investment is worth it, and then move ahead confidently. If you calculate correctly, you will find that your purchase takes your business to new heights.

    If you need any assistance calculating the return on your investment, you can always contact S & H Tax Accountants. We have experienced staff, who can help direct your business in the right direction. Book an appointment today at S & H Tax Accountants, you can call us on 03 8759 5532 or email us on info@sahtax.com.au

  • 6 tips to paying down your personal debt in 2023

    6 tips to paying down your personal debt in 2023

    2023 is expensive. The cost of living is higher than ever, interest rates keep rising, and it keeps getting harder to stay afloat, let alone get ahead. As a result, carrying debt has become commonplace. But, with the challenges of the past few years, many of us have more debt than we’re comfortable with.

    How do you get ahead while you’re still trying to catch up?

    Here are some tips on how to pay down your personal debt this year.

    1. Take stock of your debt

    There’s no way to fully understand your situation if you don’t take the time to identify everything you owe. Because looking at your monetary situation can be stressful, many people choose to ignore their financial statements and just keep a rough estimate of how much they think they owe.

    This is a mistake. Turning a blind eye to the numbers won’t change them, and neglecting to look at your debts regularly will make it easier to continue spending.

    2. Identify which debt is costing you the most

    Between a mortgage, outstanding loans, credit card debt, car payments, lines of credit, and many more forms of debt, some will cost you more than others to maintain. Once you have a clear picture of everything you owe, determine the interest rate on each debt.

    This way, you can plan to pay down the most expensive debt you have first. Doing so will save you as much interest as possible, meaning that you can pay down your debt faster as time goes on. So make your money work as hard as it can by paying down that higher interest debt.

    3. Consider consolidating your debt

    While working with a debt consolidator can temporarily hurt your credit score, it might be worth it in the long run. It can be extremely stressful to look at multiple sources of debt, and it’s easy to be overwhelmed by it all. This often leads to missed payments, which also hurts your credit score.

    By consolidating your debt, you end up with one regular payment, which is much easier to manage. The temporary credit score hit can be well worth it if you have a complex debt situation or simply feel overwhelmed.

    4. Set a budget and save

    Once you have figured out your repayment strategy, make a plan so you’re not working against yourself. Look at the actual cash you bring each month and allocate those funds. Set aside money for living expenses, entertainment, and your existing debt payments.

    If you have any leftover money, start putting that in a savings account. You should work towards setting aside 3-6 months of living expenses so that if something unexpected happens, you have the money to deal with it and don’t have to rely on credit to help yourself.

    5. Adjust your credit card habits

    Credit cards come with many perks, but they’re only worthwhile if you can pay the amount you’re spending on them. Doing so responsibly builds your credit score and allows you to take advantage of the benefits of being a cardholder.

    If you don’t have the actual money to pay your credit card off each month, tuck it away somewhere so you’re not tempted to use it. It’s
    easier than ever to tap your card, but without the funds to back it up, you’ll find yourself back in debt before you know it.

    6. Increase your income

    Nobody wants to hear that they have to work more, but if after looking at your financial situation, you find that there simply isn’t enough money coming in to pay for what you’ve already spent, you will likely need to find a side hustle. The only other option is to decrease your living expenses, which is tough to do in 2023.

    Final thoughts

    Paying down your personal debt isn’t anyone’s idea of a good time, but it’s essential. The debt isn’t going to go away on its own. Once you start seeing improvements, you will feel encouraged to continue until it’s eliminated. Call your personal accountant to devise a strategy to pay down your debt this year.

     

    If you need assistance managing your accounts or need to formulate a strategy to minimise your debt, please contact S&H  Tax Accountants. We are a local Accounting Service that provide all tax services as well as bookkeeping. We have experienced and friendly tax agents that will do their best to provide you with the best outcome. Book an appointment today at S & H Tax Accountants, you can call us on 03 8759 5532 or email us at info@sahtax.com.au

  • Business Update – 22 February 2023

    Business Update – 22 February 2023

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

    What to do if you can no longer afford your mortgage

    As rates continue to rise, many Australians find themselves unable to make payments on their home. Learn what to do if your mortgage payment obligations are becoming impossible to meet.

    Woolworths expands controversial surveillance tool

    Woolworths is expanding the rollout of a controversial AI technology that helps reduce misscans at self-serve checkouts at more stores in NSW, Victoria and Queensland.

    Changes coming to superannuation rules

    Treasurer Jim Chalmers is proposing an “end to the super wars” with a new law that would see an end to early access to funds.

    Chinese airlines flying through Russia have an unfair advantage

    Since the Russian invasion of Ukraine nearly a year ago, European, Canadian, and U.S. airlines have avoided Russian airspace, making long-haul routes take longer and cost more. As China reopens and flies directly through Russia, other international airlines say they have a leg up.

    No more SMS two-factor authentication on Twitter unless you pay

    Twitter warned non-Twitter Blue users using SMS 2FA authentication that they have 30 days to switch to another 2FA method. Find out how to keep your account secure here.

    Everyone’s scrambling to get on board with AI

    With the release of ChatGPT in November, it seems that everyone’s talking about the potential of AI. Everyone from students to CEOs is trying to keep up as we figure out how this new technology fits into our lives.

    Meta follows in the footsteps of Twitter

    Mark Zuckerburg announced that Meta is launching a pay-for-verification subscription service called Meta Verified for Facebook and Instagram, much like Twitter Blue. The launch begins in Australia and New Zealand this week, with more countries to follow.

    Bitcoin is booming, but why?

    Everyone’s watching as Bitcoin continues to make steady gains in 2023. But will it climb back to $20K? Forbes has some ideas about why the price of crypto is suddenly climbing again.

    Get in touch

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

    If you need any assistance, managing your business’s accounts, please contact S & H Accountants. We are a local Accounting Service, that specializes in Bookkeeping and all Tax services. We have experienced and friendly staff, that will provide you with the best service possible.

  • 7 ways your trades business can market its services

    7 ways your trades business can market its services

    When you go into business as a tradie, your focus is often on performing your trade to the best of your ability – as it should be. With time, the quality of your work will speak for itself, which is the most valuable testimonial of all.

    However, any tradie accountant or bookkeeper will tell you there’s more to it these days. While your good reputation preceding you is undoubtedly essential, there are a few other ways that you’ll want to market your services to ensure that you have a steady stream of work. Read on to learn 7 ways you can market your trades business.

    1. Appear in directories

    Since setting up a new business is usually a digital experience these days, it’s easy to overlook the step of making sure you appear on a physical list where people can find you. Ensure your business is on whatever relevant trade directories run in your area.

    Additionally, make sure you appear in the online equivalent. Yelp, Google, and Facebook each have business directories. And let’s not forget the old standby: the phone book. Yes, they still exist! They are valuable resources for some people looking to hire a tradie.

    2. Have a website

    Some website-building platforms are very user-friendly, but if you feel that’s beyond you, hire someone to do it. Almost everyone does an online search before they hire a business, and not having a website is like waving a giant flag that says you’re out of touch, old-fashioned, or possibly not legitimate. Meanwhile, having a website reassures people that you are who you say you are, and can provide the services they need.

    3. Leverage social media

    Nothing is stronger than a good referral, and people naturally turn to social media to find out what your customers are saying if they don’t know someone who’s used your services personally.

    Keep your social media presence strong and engaged. If you’re uncomfortable doing this, hire someone to do it for you. It’s critical when doing business today.

    4. Offer referral promotions

    When you wind up with a happy customer, provide them with an easy way to speak positively about you and suggest you to their friends. A card or a thank-you email with a discount code will do the trick.

    5. Run ads

    Tradie marketing can be tricky because, typically, your services aren’t always needed. But when you are needed, it’s usually urgent.

    If your trades business doesn’t appear on the first page of Google, it might be worth your while to take out an online ad. That way, when someone searches for a tradie in your area, your business will appear next to their search. The only way someone can click on your information is if they see it – so make sure they have that chance, whether through an organic search or a paid ad.

    6. Make yourself visible in the real world

    Make sure your business’s name and logo appear on any equipment you use and make clothes for your team to wear when they’re out and about in the world.

    It may be smaller than a billboard, but driving and walking around letting people know who you are, what you do, and how to contact you will go a long way to market your trades business. If people become familiar with your business name, they’ll be more likely to turn to you when they need you.

    7. Good old-fashioned snail mail

    Believe it or not, print campaigns are alive and well! If you operate a trades business whose services are sorely needed in a specific area, consider making a print ad to pop into mailboxes. A word of warning, though – make sure your print ad is relevant, valuable, and eye-catching. You don’t want to spend money producing something that will immediately go to the recycling bin.

    Final Thoughts

    Marketing for trades businesses is a lot like any other type of business in that you have to understand your audience and their needs and show up when they’re looking for you. With some research and proactive planning, you can be sure your business will appear in the right place and at the right time.

    Need help growing your business? Get in touch with our specialists today.

    If you need accounting services, feel free to contact S & H Tax Accountants, we would be more then happy to help. We are a local accounting service in Cranbourne, that provide excellent services for any type of trade services. We have excellent staff members and tax agents who are always looking to give you the best service.

  • Business Update – 15 February 2023

    Business Update – 15 February 2023

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

    RBA governor’s statement met with confusion

    Philip Lowe will appear before the senate this week to answer for the RBA’s rate hike strategy. Last week, he said that further interest rate hikes would be necessary to tame inflation, leaving observers confused as it seems to have already peaked.

    Faster internet is on the way

    Millions of Australians will benefit from the government’s $2.4 billion funding boost to the NBN.

    ATO seeks to boost the use of eInvoicing

    eInvoicing is a digital system that allows businesses to send and receive invoices through their accounting software, eliminating the need for physical documents, scanned papers, or PDFs. However, less than 1% of businesses have adopted it.

    Households spending power decreased due to inflation

    Middle-income households are major drivers of the nation’s economy, spending over $1 trillion annually. However, the cost of living has increased significantly, increasing spending on necessities by 23 percent. That means less money to spend on anything else.

    Homeownership becomes less likely the younger you are

    Most Australians spend much of their working lives pursuing home ownership. Yet, many millennials still pay sky-high rent for small rooms. Owning anything has become further out of reach for each generation.

    Real estate auctions pick up again

    After a severe lull following the pandemic, auction volumes are gaining steam once more. The increase is attributed to the end of a holiday lull and stabilising real estate prices.

    Money laundering is alive and well in Australia

    Due to a lack of scrutiny and regulation in some professions, Australia is a facilitator for money laundering. Real estate is a popular vehicle for the shadowy practice, with few government regulations in place to prevent it.

    The government seeks SME thoughts on payment times

    Small Business Minister Julie Collins is urging small and medium businesses to share their thoughts for a government review regarding accelerating payment times between major companies and their suppliers.

    Disney cutting 7000 jobs

    Reinstalled Chief Executive Bob Iger is seeking to cut $5.5 billion USD from its annual costs to drive profits. He is also under pressure to make Disney+ profitable and find new ways to monetise the Disney catalogue.

    UNSW psychiatry professor seeks to redefine burnout

    Gordon Parker, the founder of the Black Dog Institute, argues that burnout is not just a syndrome resulting from chronic workplace stress that has not been successfully managed. Instead, it’s a more wide-ranging condition that must be redefined to learn how to prevent it.

    Get in touch

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

  • What is inflation and how does it affect my savings?

    You can’t get through the news these days without hearing about inflation and how rapidly it’s increasing. Rates were generally low for quite some time and we all got used to it. Suddenly, however, everyone is getting squeezed by inflationary pressure.

    But what exactly is inflation, and how does it affect the money you have in the bank? Read on to learn more about what it is and what it means for your savings.

    What is inflation?

    Inflation is an increase in prices. Everything from a can of soup to a home costs more to buy. Of course, not all goods get more expensive at the same rate, and there are many reasons why prices go up.

    Year after year, things are more expensive than they were before. You’ll see this in action if you look at an old advertisement from 100 years ago. Things that used to cost a bit of change now cost much more.

    This is purposeful to some degree. Economists generally agree that a target rate of 2% annually is desirable to keep balance in the economy and promote growth. This rate allows central banks to lower interest rates to stimulate the economy if necessary without putting too much of a burden on the consumer.

    What causes inflation?

    The factors that cause inflation are varied and somewhat complex. There are a few different types of inflation as well. Supply and demand, production costs, worker shortages, printing money, and rising wages – all of these factors and more contribute to inflation.

    When the entire picture is considered, you can see why understanding any given inflation situation becomes a matter of healthy debate. While it’s clear that we as individuals have little control over inflation, we all want to know what it means for our bank accounts.

    Buying Power

    Any time your savings grow slower than the inflation rate, you will effectively lose money. Put simply, the money in your savings account must earn a higher interest rate than the inflation rate to continue to hold the same value.

    Currently, the global inflation rate is a few percentage points higher than the average savings account pays in interest. So while you have the same dollar amount in your account, that money now buys less than it could when prices were lower.

    The “Rule of 72”

    One interesting way of estimating how the inflation rate will affect your money is known as the Rule of 72. While it’s only to be used as a general estimate, it can help you imagine what will happen to your money if rates continue at their current level.

    To determine how long your savings will take to double, take 72 and divide it by your annual interest rate. For example, if you hold $100 in a savings account with a 2.5% interest rate, it would take 28.8 years for that account to reach a balance of $200.

    You can also use the rule to calculate how quickly these new higher prices would halve the value of your savings. Take 72 and divide it by the annual rate of inflation. If it’s currently 6.5%, for example, it would take just over 11 years for your $100 to be worth $50.

    You can see why an inflation rate higher than the interest you’re earning is problematic. While your actual dollar amount will continue to rise, inflation will undercut those earnings by making each dollar worth less.

    Remember that this is only a general estimation and doesn’t consider many factors. For example, it’s unlikely that the inflation rate would remain the same for 11 years or anywhere close to that. The Rule of 72 is only meant to illustrate the pace at which your money changes – to help understand the gap between the two rates.

    Final thoughts

    It’s easy to get caught up in the talk about inflation and how it devalues your money, but try to remain calm. Remember that while prices may never go down to what they once were, periods of high inflation have happened before, and they will happen again. However, they don’t last forever, and by continuing to make educated choices about where to invest your money, you will successfully weather the storm.[gravity form id=”3″ title=”true” description=”false”]

    If you have concerns about the rising inflation and how this would effect you, you can always talk to an accountant at S & H Tax Accountants, we have experienced and friendly staff who would love to help you. Book an appointment today at S & H Tax Accountants, email us on info@sahtax.com.au or call us on 03 8759 5532

  • Important Things to Know about an Estate Plan

    Important Things to Know about an Estate Plan

    If putting together your estate plan isn’t at the top of your priority list, you’re not alone. It’s something that people typically don’t want to do–for a variety of reasons. It’s not fun to think about what happens after we’re gone, and we often believe we have a lot of time to get our affairs in order.

    No matter how large or small your estate is, you need a plan to ensure your wishes are carried out and your loved ones are taken care of in the way you see fit. A will is an important part of your estate plan, but your estate plan is bigger than your will.

    Here’s what you need to know about having an estate plan.

    It’s for everyone

    The term “estate plan” may make people think that it’s only for the incredibly wealthy, but an estate plan is for anyone who wants to ensure their assets–whatever those maybe–are available and accessible to their beneficiaries. Assets include bank accounts, investments, properties, vehicles, household furnishings, and anything else that you own or are owed.

    Beyond that, an estate plan lays out where your money should go, who should be in charge of your estate, and who will take guardianship of your minor children.

    Business Man Show Money Bank Note Make Financial Plan Invite People Sell Buy House Car Monetary Properties Loan Credit Insurance Concept

    Your priorities might change

    Review your estate plan regularly, especially if you have a major shift in your circumstances. The will you wrote when you were 30 and newly married may no longer reflect your wishes now that you’re 55, and on your second marriage with three children, 2 step-children, and a grandchild.

    Perhaps you’ve purchased a second property, now have a retirement plan, or have collected valuable artworks. These are all items that can change how your estate is divided. Any change in your circumstances should trigger a review of your estate plan.

    This estate plan review should include who your beneficiaries are and if they’ve changed recently, how you want them to receive your assets, who you trust to make important medical or financial decisions if you become unable to, and how your bank and investment accounts are managed.

    It’s not just for after your life

    We associate estate planning with death, but it’s just as much about planning for disability or incapacitation. Your estate sets out who can access your money to ensure your medical needs are taken care of–and who will make important decisions on your behalf. Without an estate plan, someone in your family may have to petition the court to be allowed to make decisions for you, and you run the risk that the person granted that ability is someone you don’t trust.

    Hands Agent Client Shaking Hands After Signed Contract Buy New Apartment 1150 14836 (1)

    If you don’t have a plan, decisions will be made for you

    With an estate plan, you dictate how your assets are distributed. Without a plan, your assets are distributed according to the law where you live. Simply living with your significant other might not be enough to ensure they receive your estate in regions that don’t validate common-law marriages. In those areas, your estate goes to your biological family, not your unmarried partner, unless you have a will.

    If you have a blended family, you may want your biological children to receive all of your estates or you may want it split with your current spouse and their children from a previous marriage. Without an estate plan, those wishes may not be carried out.

    Final thoughts

    An estate plan is a vital part of your financial planning. It sets out how you want your estate distributed, who you want to be in charge of, and who can make decisions for you if you’re not able to. If you’ve been putting off your estate planning, now is a great time to get started. Estate planning is important for you and your next generation. S & H Tax accountants cranbourne can help you in estate planning.

  • Business Update – 13 September 2022

    Business Update – 13 September 2022

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

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

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

    Public holiday may hurt small businesses, critics say

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

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

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

    Government seeks to ease housing crisis with new law

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

    Aussies struggling with rental housing hikes

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

    Calls to extend fuel excise cut go unanswered

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

    How the government could help small businesses as inflation rates rise

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

    Construction growth falls in June quarter

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

    How China’s economy affects Australia

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

    Money will change eventually, but not anytime soon

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

    Get in touch

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

  • When to raise your prices

    When to raise your prices

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

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

    1. You have a loyal customer base

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

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

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

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

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

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

    3. You’ve added value

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

    4. Your competitors are charging more than you

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

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

    5. Your close rate is over 80%

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

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

    Final Thoughts

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

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

  • 5 ways outsourcing payroll can help you

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

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

    1. Free up your time

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

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

    2. Reduce errors

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

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

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

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

    3. Reduce costs

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

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

    4. Maintain compliance

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

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

    5. Eliminate headaches

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

    Final Thoughts

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

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

  • 4 Reasons to Switch to Cloud-based Accounting

    4 Reasons to Switch to Cloud-based Accounting

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

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

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

    1. Efficient invoicing

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

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

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

    Hand Holding Cloud System With Data Protection 53876 124620

    2. Paperless accounting

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

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

    3. Accessibility

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

    4. Accurate reporting

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

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

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

    Final thoughts

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

     

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

  • Federal Budget 2022: What it means for you

    Treasurer Josh Frydenberg has released the 2022 Federal Budget ahead of a Federal election in a few months. This article has a summary of the “Winners and Losers” of the Budget and we’ve compiled a recap of the key points below. Get in touch with us if you have any questions.

    A Quick Overview

    • Due to soaring fuel prices, the fuel excise tax will be cut in half, saving motorists 22 cents per litre.
    • Low-and middle-income earners will receive an extra $420 back on their tax returns to help with the increased cost of living.
    • The low and middle tax offset means qualifying individuals may get up to $1500 back at tax time. This is “temporary and targeted” assistance for certain individuals.
    • Pensioners, carers, veterans, job seekers and other concession card holders will receive a one-off payment of $250.
    • Wages are not forecast to grow until later this year due to higher-than-expected inflation which will continue to put pressure on the cost of living.
    • Big changes to the government’s Paid Parental Leave program including “Dad and Partner Pay” now combined with “Parental Leave Pay”, extended to 20 weeks and able to be shared between partners.
    • Regional Australia will benefit from investments in infrastructure projects including port and road upgrades, dams and logistics hubs and the “Regional Accelerator Program” to improve supply chains.
    • The first home buyers scheme expands so people only need to have a 5% deposit to buy a house with no lenders mortgage insurance (LMI).
    • 50% reduction to minimum drawdown rate for pension accounts extended to 30 June 2023.
    • Half a billion dollars allocated for the National Mental Health and Suicide Prevention Plan.
    • New apprentice incentive scheme to replace the one ending 30 June.
    • Tax break for farmers who make money by selling carbon credits.
    • $1 billion for the Great Barrier Reef, $53 million for koala conservation as well as funding for National Parks and planting trees for the Queen’s platinum jubilee.
    • Subsidies for vocational education and training places for aged care workers.
    • Funding to boost Australia’s cybersecurity and intelligence capabilities.
    • Funding for Indigenous Rangers including encouraging women to begin work as rangers.
    • Extra places for Afghan nationals and temporary humanitarian visas for up to 3 years for Ukrainian refugees.
    • Expanded task force to target tax avoidance by multinationals, large public and trust groups and wealthy individuals.

    Fuel Tax Cuts

    In a bid to bring down the soaring price of petrol, the government is cutting the tax levied on fuel in half. The war in Ukraine has caused an increase in oil prices and with some stations charging more than $2.20 a litre for petrol. The cut will last 6 months and will save motorists 22c per litre. The ACCC will keep an eye on fuel prices to make sure this is passed on.

    Tax Offsets

    Pensioners, carers, veterans, job seekers and other eligible concession cardholders will receive a one-off payment of $250 to help with the cost of living. This is estimated to go to 6 million people.

    Low-and middle-income earners will receive $420 back on their tax returns to help with the cost of living. Plus the temporary low and middle tax offset will mean $1500 back at tax time for qualifying individuals.

    Wages

    Wages are not forecast to grow until later this year due to inflation. This means cost of living pressures will continue for the meantime.

    Paid Parental Leave

    The Paid Parental Leave (PPL) scheme will have some changes. Instead of offering two separate payments — two weeks of “Dad and Partner Pay” and 18 weeks of “Parental Leave Pay” — these will now be combined, meaning parents can choose to split the leave between them however they’d like.

    Single parents will also be able to access the full 20 weeks of leave.

    The income test will be adjusted to include a household income threshold of $350,000 a year.

    Regional Australia

    Billions have been set aside to help Regional Australia with “nation-building infrastructure projects”. The funding may go towards everything from upgrading ports and roads to building dams and logistics hubs and certain regions.

    A “Regional Accelerator Program” will bring together schemes designed to improve skills, education and supply chains in Regional Australia.

    First home buyers

    The first home buyers scheme expands so people only need to have a 5% deposit to buy a house with no lenders mortgage insurance (LMI). The number of places will increase to 35,000 but there are rules on eligibility.

    Mental Health

    Half a billion dollars has been allocated for the National Mentional Health and Suicide Prevention Plan. Those on a mental health plan will again receive an additional 10 partially-Medicare subsidised visits to a psychologist, as was first announced during the pandemic.

    Apprentices

    A new incentive scheme will be created to encourage businesses to take on apprentices and hand new apprentices some cash.

    The Boosting Apprenticeship Commencement scheme will end on June 30. The Australian Apprenticeships Incentive Scheme will replace it but will offer lower wage subsidies and only for “priority” occupations. The priority list hasn’t been announced just yet.

    Farmers

    Farmers that make money by selling carbon credits will receive a tax break.

    The Environment

    The big spend here is $1 billion for the Great Barrier Reef, particularly water quality, reef management and research. There’s also $53 million for koala conservation as well as funding for National Parks and planting trees for the Queen’s platinum jubilee.

    $60 million has been added to the government’s recycling fund in order to find new and innovative ways to make recycling more efficient. The funding is to develop “advanced plastic recycling technology” which will better recycle soft plastics like chip packets. This will contribute to the government’s target to have 70% of plastic packaging recycled or composted by 2025.

    Aged Care

    Last year’s budget included $17.7 billion for aged care. This year includes subsidies for 15,000 vocational education and training places for the aged care workforce (both existing and new to the sector).

    Cyber

    A significant part of the budget has been allocated towards boosting Australia’s cybersecurity and intelligence through data analysts, computer programmers and software engineers.

    The government has warned about potential cyber attacks from China and Russia and has urged businesses to update their systems to defend against future attacks.

    Indigenous Rangers

    The government will spend more than $636 million to create around 2,000 more ranger jobs by 2028 in regional and remote parts of the country. The funding will also encourage more Indigenous women to begin working as rangers.

    Refugees

    Australia’s humanitarian program will have extra places for 16,500 Afghan nationals and temporary humanitarian visas for up to 3 years for Ukrainian refugees.

    Tax Avoiders

    There’s also funding for an expanded task force to target tax avoidance by multinationals, large public and trust groups and wealthy individuals.

    Get in touch

    Got a question about how this budget will affect you? Get in touch with us today. We’ll keep you updated as more information is released. S & H TAx Accountants Cranbourne are here for help.

  • Tax tips for new business owners

    Tax tips for new business owners

    Want to avoid paying more than you should come tax time? Or a frantic last-minute search for missing financial records?

    New business owners have a lot on their plate, and can easily lose track of an approaching tax deadline or financial data needed to submit their return.

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    The organization is key when preparing for tax time. As is taking advantage of the many tools and resources out there to support new entrepreneurs.

    Set yourself up for success by following these four pillars of the painless tax prep.

    1. Commit to clean bookkeeping from day one

    Year-round, effective bookkeeping is the best way new business owners can minimize tax season stress. With the wide range of accounting software out there, there’s no reason to rely on time-consuming manual methods that leave room for error.

    All-in-one options like Xero, KashFlow, and QuickBooks automate your most important bookkeeping processes, including:

    • Tracking expenses;
    • Tracking sales and income;
    • Creating and sending invoices and
    • Managing inventory.

    With your financial records all in one place and up-to-date, you’re better positioned to maximize your refund, while avoiding penalties associated with incorrect or incomplete tax returns.

    2. Capture every business expense

    Each year, 21% of small business owners claim less than half of their business expenses, largely because they don’t have a reliable system for documenting expenditures while on the go.

    Without carefully logged receipts, entrepreneurs must forfeit valuable tax deductions, sacrificing cash they could be funneling back into their business.

    Cash in on claimable expenses by using a mobile app to record receipt data, track mileage and generate expense reports. As an added bonus, many of these tools sync with your all-in-one accounting software.

    3. Separate business from personal

    Right from day one, small business owners should clearly divide their personal and business expenses. Differentiating between the two will make it much easier to claim deductions on your tax return – and support those claims in case of an audit.

    Recommended steps to separate your business and personal finances include:

    • Create a separate bank account for your business, and designate a credit card solely for business purposes (this will help you track expenditures while building up your credit and borrowing power);
    • Never combine business and personal expenses (for example, if you buy printer ink for your home and your business at the same time, ask for two separate receipts);
    • Pay yourself a set salary from your business checking account each month (this will help you determine how your income, as well as the business, will be taxed).

    4. Always consult with an accountant

    Not sure exactly what you can claim as a business expense? Wondering which accounting software to use or how to interpret local tax regulations?

    Consult with an accounting professional to put your mind at ease – well before the filing deadline! In addition to managing the nuts and bolts of tax preparation, regular meetings with an accountant will help you continuously improve bookkeeping practices and better understand the financial workings of your small business.

    Those organizational strategies you commit to now will promote positive relations with your local tax authorities – and the long-term financial health of your company.

     

    As we all are aware that tax season is here, this time of year can be very stressful as businesses will need to make sure they have all of their financial records accurate and organised as well as making sure they have every expense listed. S & H Tax Accountants are aware of the stress, however we are here to help. Our firm offers services to not only individuals but also businesses, our accountants are well qualified and vastly experiences. We pride ourselves in maintaining top tier level of service to our clients, our firm also provided advice to businesses in need. Book an appointment today with S & H Tax Accountants, call us at 03 8759 5532 or email us at info@sahtax.com.au