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  • Business Update – 8 March 2023

    Business Update – 8 March 2023

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

    Inflation is still a concern as the economy slowly recovers

    Australia’s economy has recovered better than most from the COVID pandemic and is now 7% larger than before. But experts say that ongoing inflation is a continuing concern for everyday affordability.

    Mental health is a major concern as the cost of living remains high

    New quarterly figures from Suicide Prevention Australia show that 46% of Australians have reported an elevated distress level from cost of living pressures – a 5% rise on the December quarter.

    Centrelink payments set to rise to help with the cost of living crisis

    Beginning March 20, more than 4.7 million Australians will receive a cash boost to their social security payments to help them cope with the soaring cost of living.

    Demand for EVs is stronger than ever

    New data from FCAI shows that Australian EV demand soared in February 2023 as fully battery electric vehicles made up 6.8% of the overall new car market. The total number of EVs on Australian roads is approaching 80,000 and climbing higher.

    Australian companies still shedding jobs as recession looms

    Two Australian companies have laid off hundreds of staff members due to tough market conditions. Healius, a healthcare company, has cut 500 full-time roles since the Covid-19 pandemic began, and Thoughtworks, a software firm, has laid off 100 employees.

    Queensland is considering legislation to keep solar panels out of landfills

    Queensland is the biggest contributor of solar waste, and the potential products set to end up in the landfill is enormous – but the opportunity for recycling or repairing those panels is also massive. New legislation is hoping to prevent those panels from going to waste.

    Affordable rent is becoming rarer and rarer

    The number of properties listed for rent for less than $400 per week has almost halved over the last year, with Hobart and Darwin the exceptions.

    New super tax rules only affect the wealthiest Australians

    National Party leader David Littleproud says that raising the tax rate on superannuation balances above $3 million will affect “many mum and dad businesses, ” hoping to sell up for retirement. However, Federal Treasurer Jim Chalmers reiterated, “99.5% of Australians with super accounts will continue to receive the same rate.”

    Toblerone is no longer Swiss enough to have the Matterhorn on its packaging

    Mondelez, the US parent company of Toblerone, is moving some of its production to Slovakia. Because Switzerland has laws regulating the use of national symbols, the change could see the Matterhorn disappear from the packaging because it will no longer meet the country’s standard of ‘Swissness.’

    Get in touch

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

    If you are concerned regarding your financial position due the various elements such as the rise of inflation or your rent is increasing day by day, please feel free to contact S & H Tax Accountants. We are a Local Accounting Service in Cranbourne, that have experienced and friendly staff  who will always help you in the best possible manner. So please book an appointment at S & H Tax Accountants today, call at 03 8759 5532 or email us at 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

  • 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

  • Employee vs contractor – what you need to know

    Employee vs contractor – what you need to know

    Depending on the nature of your business, you may have workers who are employees or contractors, or you may have both. Each has their merits, but it’s important to review which are which in order to meet your tax obligations.

    When you have an employee, you must withhold income tax as well as report on additional benefits. Contractors generally look after their own tax obligations.

    It’s against the law to treat an employee as a contractor. Significant penalties apply if you do, so it’s important to get it right.

    The simplest way to remember is:

    An employee works in your business and is part of your business.
    A contractor is running their own business.

    But how can you be sure that you’ve got an employee or a contractor on your hands, especially with remote work blurring the lines between employees and contractors?

    Does there come a point that you should actually be hiring a worker as an employee, when you thought they were a contractor?

    There are six factors to consider:

    1. Ability to subcontract or delegate

    An employee is not able to subcontract or delegate the work. They must perform the outlined tasks themselves. If they can’t do the work themselves for any reason, say a prolonged illness, and someone else does it, this is substitution. Your business would then pay the other person to carry out those activities.

    A contractor can delegate the work as long as they’re not obligated to do it themselves as per the contract. If your contractor can’t work, they would arrange for another qualified person to do it. You would pay your contractor as usual, who would then pay their subcontractor.

    2. Basis of payment

    An employee is paid a set amount per period of time. The most obvious example would be an annual salary or hourly wage.

    Some employees are paid piece-work rates. They receive an amount per successful sale, or per the number of pieces produced. A commission basis would be a price per item structure.

    A contractor, however, is paid an agreed-upon price in exchange for a predetermined result. Some contracts may specify the amount to be paid in increments as stages of the project are completed. But the key takeaway is that a contractor is paid when the agreed-upon result is achieved.

    3. Equipment, tools, and other assets

    If your business is responsible for providing the equipment, tools, and other assets required to perform the job, that’s characteristic of an employee.

    If the worker is providing these items, they are likely a contractor.

    4. Commercial risks

    Employees do not bear commercial risk and they are not liable for correcting any defects in the work at their own expense. Instead, your business takes this responsibility. The worker will be paid for the time required to perform the task to completion.

    A contractor assumes the commercial risk. They are responsible for fixing any mistakes on their own time. This extra work would fall under the umbrella of the terms set at the beginning of the project. Your business does not have to pay for any extra time taken or materials used, unless otherwise specified in the contract.

    5. Control over the work

    Employees have to complete the work the way the employer specifies. What work is done, where it’s done, how it’s done, and when it’s done are all up to the employer. The employee then completes the work as required.

    Contractors are not subject to the same rules. They decide when and how the work is done, so long as it meets the obligations laid out in the contract. For example, a contractor could choose to work three 10-hour days to complete a job, rather than working four 8-hour days.

    6. Independence

    An employee works within a business. They complete tasks as required until they leave the job.

    A contractor operates independently and may have any other number of contracts on the go with other companies. They can freely accept and refuse other work. Their obligation is complete when they deliver the specified outcome.

    Final thoughts

    It can be confusing to make the determination between an employee and contractor, but it’s important that you do so in order to meet your tax obligations and play by the rules. Contact us to learn more about your tax obligations for employees and contractors. If you have any questions then feel free to call S & H Tax Accountants Cranbourne. S & H tax Accountants offer services to small business as an accountants. We are experienced advisors in Cranbourne and Accountants in Malvern East area. Book an appointment with S & H Accountants today! Call us on 03 8759 5532 or you can email us on info@sahtax.com.au

  • 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.

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    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.

  • 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

  • Pay as you go (PAYG) instalments – What is PAYGI?

    Pay as you go (PAYG) instalments – What is PAYGI?

    Pay as you go (PAYG) instalments applies to small business or investment income of any entity – Sole Trader, Company, SMSF etc. Pay as you go (PAYG) instalments are regular payments made throughout the year to avoid payment of large tax bill when tax return is lodged at the end of the year. The instalments made are based on business and/or investment income. The payments made during the year will be offset against the tax owed, if any, for the year.

    ATO estimate the tax payable in a year by taking the business and/or investment income reported in the most recently lodged tax return. Instalments amounts are calculated based on this income, current income tax rates and likely changes in the economy. The instalment amounts can be changed by the taxpayer if they expect a different income than previous years but will be penalized if the payment falls short.

    PAYG Instalments are reported and paid through activity statements or Instalment notice. They should be lodged before the tax returns are prepared. Once lodged, it will create a debit entry (debt) in the Activity Statements with the ATO. If the return is not filed on time, ATO might accept the instalment amount on their own in certain situations. Taxpayers must pay attention to the communications received from ATO regarding this.

    What happens when PAYG Instalments are paid?

    When a payment is made, it shows as a credit entry in the Activity Statement report offsetting the debit entry created while lodging the return. The balance will be zero. When the tax return is prepared, the tax payable on taxable income will be reduced by the amount of PAYG Instalments reported during the financial year. If the tax owed to ATO is less than the Instalment amount, the balance will be refunded.

    Example: –

    Total PAYG Instalments of John for the year – $10,000

    Tax on taxable income – $10,500

    Since John has lodged the PAYGI return and paid the same, he will be liable to pay only the balance $500 at the end of the year.

    If his tax on taxable income was, say, $9,500, he will receive a refund of $500.

    What happens when PAYG Instalments are not paid?

    If the PAYG Instalments are not paid, it will continue as a debt in the Activity Statement report of ATO. However, the tax return will still be prefilled with the actual lodged instalment amounts and this amount will be deducted from the tax payable for the year. Taxpayers should be very careful in this situation. The tax payable will be understated or refund receivable will be overstated here. If tax is payable (even after reducing the PAYGI amount, which was not paid), the payable amount will be shown as debt in ‘Income Tax Statement’ of ATO and the PAYGI amount will be shown as debt in ‘Activity Statement’ report of ATO. If the result is a refund (after reducing the PAYGI amount, which was not paid), it will be used by ATO to setoff the PAYGI debt and taxpayer will only receive the rest of the refundable amount, if any. If the refund is not enough to setoff the PAYGI debt completely, the balance will show in the Activity Statement report.

    Example: –

    Total PAYG Instalments of John for the year – $10,000. He lodged the returns, but never made payments.

    Tax on taxable income – $10,500

    Since John has lodged the PAYGI return, he will be liable to pay only the balance $500 as income tax at the end of the year. However, he will be liable to pay the PAYGI of $10,000 and will be shown as a debt with ATO in Activity Statement Reports.

    If his tax on taxable income was, say, $9,500, his tax return will show a refund of $500. However, he will be liable to pay PAYGI $10,000 and will be shown as a debt with ATO in Activity Statement Reports. ATO will setoff the refundable $500 with this debt and John will be liable to pay the rest $9,500.

    The scenario is similar for other entities like Sole trader, Company, SMSF etc. For more information refer ATO website.

    Looking for an accountant, S & H Tax Accountants can help. S & H Tax Accountants offer all taxation services whether it be for individuals, companies or even trusts. However we also offer business services, such as registrations or Business Activity Statement (BAS)  and even PAYG Installments. We understand that for businesses, these can tasks can be very daunting, that is why we offer the best level of services possible to all of our clients. Our team consists of well-qualified, vastly experienced and extremely professional individuals. Book an appointment today, call us on 03 8759 5532 or you can email us on info@sahtax.com.au.

  • 4 Benefits to Hiring a Bookkeeper for Your Business

    Bookkeepers can be highly beneficial for businesses of any size. They offer expertise and insight into areas that you may not have experience in. They can also take some tasks off your to-do list, freeing up your time and energy to focus on other matters.

    Here are 4 benefits to hiring bookkeepers to help you manage your business.

    Expertise

    A bookkeeper is an expert at managing, sorting and recording your business’s financial transactions. They’ve spent time developing their skills and experience. During that time, they’ve also seen and resolved bookkeeping-related issues that you may come up against. Their expertise makes them more efficient at managing those issues.

    Beyond that, they understand business trends and challenges others in your industry face, and can help you move through those as well. They also know what questions to ask to help you make important decisions and can share best practices with you.

    Guidance

    Your bookkeeper not only helps you maintain accurate records, they understand your financial circumstances. They help you assess how to make important business decisions, such as whether now is a good time to grow or when you should hold back. They can also identify trends in your industry and help you take advantage of those opportunities.

    Finally, they can assist you with budgeting, and sticking to your budget. They’ll help you come up with a realistic financial plan that enables your business to grow while achieving short- and long-term goals.

    Time savings

    As a business owner, you likely have many activities to focus on. In bookkeeping alone there are numerous tasks to be responsible for, such as:

    • Collecting and recording transaction data
    • Sorting receipts
    • Classifying expenses
    • Invoicing customers
    • Paying vendors
    • Managing payroll.

    Bookkeepers take on those tasks so you don’t have to. It’s not just about the energy you put into them, it’s about the fact that unless you’re an expert at bookkeeping, it’ll likely take you longer to complete these activities than it would take a bookkeeper.

    Think of the time you spend during an average week managing your books, then think of the time you spend during a high-pressure week, such as during tax season. That can add up to a lot of extra hours.

    By hiring a bookkeeper, you save yourself that valuable time for other activities such as marketing, perfecting your products or even spending time with family.

    Money savings

    There’s a time cost to doing your own books, but there’s also a potential money cost in the form of missed opportunities. The time you spend doing your own books is time you could potentially be out creating or taking advantage of new opportunities for your business. Your bookkeeper frees you up so you have the time and energy to identify potential opportunities. They can also advise you on whether you’re in a fiscal position to jump on those possibilities.

    Additionally, the expertise bookkeepers bring to their activities means they’re likely to save you from costly mistakes that could affect your finances.

    Final Thoughts

    Hiring a bookkeeper is a sound business decision as it gives you access to expertise and guidance you might not otherwise have, and it frees up your time and money to take advantage of other business opportunities. Talk to S & H Bookkeepers for you business bookkeeping needs. S & H Tax Accountants offer servicess in Cranbourne and surrounding suburbs.

  • 4 Things to Consider Before Expanding Your Service Offerings

    If you’re looking to grow your business, you might consider expanding your service offerings. Adding additional services is a good way to increase your profitability, diversify your income and expand your market. But there are important things to consider before adding to your income streams.

    Here are 4 important things to keep in mind when you consider adding to your services.

    1. Does the expansion complement your business?

    The best way to expand your service offerings is to add value that complements the work you’re already doing and is attractive to your current client base. While it takes more effort to bring new customers in, adding something that your current clients need and that you already have the capacity for is an efficient way to increase your profits.

    If you already offer lawn maintenance, find out what other yard work your clients need done, for example. It might be fairly simple for you to offer those services to your clients, and they’d probably be happy for you to do it rather than hiring someone new.

    2. Is your profitability consistently high?

    Spending money to hire new people and buy more equipment if your business isn’t consistently profitable is risky. It might be tempting if you make a lot of money in one year to jump into offering a new service, but hold back until you’ve got a couple years of high profits behind you. That allows you to save money to cover the increased expenses and ensure that the one year wasn’t an anomaly.

    Invest in your business, but expand your services when your profits are consistently up, not when you’ve had one really good period.

    3. Is there a potential partnership or merger that makes sense?

    There are times when forming a partnership or otherwise merging businesses makes sense. Is there someone out there who works in a similar capacity that you could work well with? Maybe they are great in their field but need help running a business. Explore a partnership or a buy-out.

    For example, if you offer immigration consulting and you know someone who offers relocation services, you might form a partnership so the new company can offer both immigration help and relocation services. That can lead to new clients for both you and your new partner.

    4. Are you doing it for the right reasons?

    There are many good reasons to add new services, but there are also reasons that can increase your risks. Competition, for example. While competition can drive innovation, it’s not the only reason to add a new service—and doing so just to beat your competitors can lead to mistakes being made and money being lost. Rushing to expand is when companies find themselves in trouble for adding services there’s no market for or without a fully-formed plan.

    Final thoughts

    Expanding your business is exciting, but it’s important to consider some issues before you commit your time, energy and financial resources. If you’re adding new services, do so because it makes sense, you’re in a financial position to do so, your clients want it and you have the capacity for it.

  • How to Scale Your Business with Minimal Effort

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

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

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

    1. Keep it simple

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

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

    2. Use scalable administrative processes

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

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

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

    3. Focus on data

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

    4. Scale your offerings

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

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

    Final thoughts

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

  • Business Update – 9 September 2021

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

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

    COVID-19 Government Support By State and Industry

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

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

    Regional Victoria Leaves Lockdown

    Victorian Premier Daniel Andrews has announced restrictions will ease across regional Victoria, except for Greater Shepparton, from 11:59pm Thursday night.

    This means travel will be allowed around Victoria with no distance limit, but movement between Melbourne and the regions is restricted. A maximum of 10 people will be allowed for public outdoor gatherings, and outdoor tours will be capped at 20 people.

    Religious gatherings and ceremonies will be capped at 20 people and weddings will be limited to no more than 10 people. In-home visits are still not allowed in regional Victoria, and masks must still be worn indoors and outdoors.

    You can find a comprehensive list of the new rules here.

    Parts of NSW to Come Out of Lockdown

    The Mid and North Coast of NSW, as well as areas across the Riverina, and the Murrumbidgee regions, will all be free from lockdown restrictions on Friday at midnight. Regional travel is set to resume when 70% of the state’s adult population has been fully vaccinated.

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

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

    NSW Grants

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

    NSW: Micro-business grant

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

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

    COVID-19 Business Grant

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

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

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

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

    The ATO may be able to:

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

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

    JobMaker Hiring Credit

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

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

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

    Wage Subsidy Scheme for Apprentices and Trainees

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

    4 Easy Ways to Provide More Value for Your Customers

    Customers choose you over your competitors because you provide the most value. As competitors find ways to make their offerings more appealing than yours, you should also implement some strategies to provide even greater value than you already do and retain customers. This Forbes article shares some tips on how you can achieve this.

    • Become a niche authority. Establish yourself as an authority in your niche and provide solutions or insights to their pain points through blogs and social media posts.
    • Ask customers for feedback. Obtain honest feedback from customers to discover how you can add even greater value and improve customer experience.
    • Proactively customise your offerings. A one-size-fits-all approach doesn’t always work. Understand what each client needs and tailor your services accordingly.
    • Reward loyalty. If you want to gain repeat customers, find ways to reward their loyalty. Provide incentives and devise a rewards system.

    As you try to make your customers happier, your business becomes more memorable and valuable for them. Therefore, it’s a win-win situation!

    Need more focused business advice? Get in touch with us today and we can talk about your situation.

    Get in touch

    Contact us if you have any questions or want to discuss the next steps for your business. We at S & H Tax Acountants help Small business in Accounting, Tax and Bookkeeping. we are Accountants located in southeast of Melbourne. We offer Tax agent services in Cranbourne, Clyde and surrounding areas.

  • Succession Planning: A will for your business

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

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

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

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

    Business Structure

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

    Succession agreements

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

    Managing risk

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

    Powers of Attorney

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

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

    Need a succession plan?

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

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

  • Business Update – 18 August 2021

    Business Update – 18 August 2021

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

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

    Tougher COVID-19 Restrictions in Melbourne

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

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

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

    Sydney Lockdown Fines Increased to $5,000

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

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

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

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

    Victorian Business Costs Assistance Program Round 2 July Extension

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

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

    Read the eligibility criteria here.

    All hotspots: COVID-19 Disaster Payment for recognised lockdowns

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

    NSW Grants

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

    NSW: Micro-business grant

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

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

    COVID-19 Business Grant

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

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

    JobSaver payment

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

    Small business fees and charges rebate

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

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

    QLD COVID-19 Business Support Grant

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

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

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

    Fuel Tax Credit Rate Hike

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

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

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

    Government Support for Best Emerging Innovators in Western Australia

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

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

    Downsizer Contribution Into Superannuation

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

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

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

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

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

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

    The ATO may be able to:

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

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

    JobMaker Hiring Credit’s Second Claim Period

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

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

    Register any time until the scheme ends.

    Wage Subsidy Scheme for Apprentices and Trainees

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

    4 Ways Your Business Can Increase Its ROI in 2022

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

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

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

    Get in touch

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

  • Tax Implications of Cryptocurrency (AU)

    Tax Implications of Cryptocurrency (AU)

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

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

    How cryptocurrency is defined

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

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

    How cryptocurrency is taxed

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

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

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

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

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

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

    Keeping proper records

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

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

    Final Thoughts

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