All Posts by Renae Pitargue

Do you know the rules and entitlements during the end-of-year holiday season?

As we head into the summer holiday period, is your business up to speed with your rights and obligations?

If you don't outsource your payroll, it can be confusing to employers and employees alike – public holidays worked or taken as annual leave, business shutdowns, annual leave provisions… there are many rules employers need to understand.

Employees are entitled to annual leave and public holidays under the National Employment Standards minimum entitlements.

Employers can ask employees to work on public holidays within reason. For example, if the business is open every day of the year, and the employment agreement states that public holidays may be required, the employer can reasonably ask an employee to work a public holiday.

An employee can refuse to work on a public holiday if the request is unreasonable or there are reasonable personal grounds for refusing.

Christmas and New Year Public Holidays 2023-24

The following link has the Christmas and New Year Public Holidays that apply to employers in all states for the Christmas period and beyond - 2023 Public Holidays

Public holidays are paid at ordinary rates for employees who take the day off. Employees who work on a public holiday must either be paid penalty rates according to the relevant award or be given an extra day off in lieu of the public holiday. Some awards have specific provisions or additional benefits for public holidays, so it's important to check.

If an employee has booked annual leave for the Christmas and New Year periods, the public holidays are not counted as annual leave.

Some other key points to remember

• Public holidays are counted as service, so annual and personal leave continues to accrue as usual.
• Overtime worked on a public holiday may be paid at a different rate than regular overtime – check the relevant award or agreement.
• Check the award or agreement for shutdown provisions. Most awards have guidance for directing employees to take leave during annual shutdowns.
• If employees don’t have enough annual leave, employers can agree to pay them in advance for leave not yet accrued, or the employee can take unpaid leave.

The FWO has further advice on rules and entitlements during the end-of-year holiday season.

You might also need to think about cash flow planning for the holiday period, particularly if the business shuts down but still has obligations for payroll and other expenses.

We can advise you about your employer responsibilities and help plan holiday period payments so you can make the most of your summer holiday! Better still, talk to us about outsourcing your payroll.

Preparing your business for a sale

Selling your business is a big move for any owner. You’ve built this company up, scaled it and put years of hard work into making the business a success story. So, when the time comes to sell, you’ll want to know that you’re getting the best price, and the best future for your legacy.

We’ve outlined five ways to maximise the value of your business, with practical steps for making your company the most attractive prospect on the market.

5 steps to prepare you for a sale

The first thing to underline is that selling a business is rarely a fast process. Most owners will begin planning their sale years in advance, working to an exit strategy that sets out all the key milestones. Your aim is to leave the business in great shape, with stable finances, a solid team and a customer base that will continue to provide solid revenues for years to come.

So, how do you achieve these goals?

1. Assess your reasons for selling and your desired timeline

What’s the key motivation for selling your business? Are you retiring, looking to move on to other opportunities or hoping to unlock your equity? Once you know your reasons, you can decide on some core goals for the sale, and set a realistic timeline for the sale.

2. Get your financial house in order

'Doing your financial housekeeping’ will mean preparing financial statements, submitting outstanding tax returns and making sure you have access to any other documentation that potential buyers will want to see. You may also want to work with an M&A expert to discover the company’s true market value.

3. Make your business attractive to buyers

Any buyer wants to know they’re taking on an attractive business proposition. Making the business feel more attractive means improving your marketing and sales strategies, beefing up your operations and ensuring you have a positive cashflow position. You should also think about creating a transition plan for the buyer, so the handover is as smooth as possible .

4. Find the right buyer

It’s important to feel like you’re handing your legacy over to the right owner – and getting the price you need. This may involve working with a business broker or marketing your business yourself. Make sure you vet potential buyers carefully to ensure that they are a good fit for your business and your existing team.

5. Negotiate the sale terms

Achieving your desired price could involve a fair amount of negotiation. You’ll need to sit down with your buyer to discuss purchase price, payment terms and other conditions of the sale. Be prepared to compromise and be willing to walk away from a deal if the terms are not right for you.

Talk to us about getting your business ready for a sale

If you’re intending to sell your business in the next five years, it’s important to start planning now.

Coming up with a sale plan and a robust exit strategy takes time. As does sorting out the business housekeeping and finding the best possible buyer for the company.

As experienced bookkeepers, we’ll help you:

• Get organised, locate the relevant documents and improve your record-keeping
• Clean up your business to identify any financial issues
• Expand your business network, to help find the best buyer for the company

Following these steps will greatly increase the market value and price of your business.

Get in touch to talk about your sale plan.

Christmas gifts for your customers and team

As the festive season approaches, it’s a great time to let your customers and team members know how much you appreciate them. 

In a year that has presented its challenges, when it comes to deciding on Christmas gifts for your customers and team, finding the right balance between generosity and sensitivity is important. It’s not easy to know how much to spend or whether it’s appropriate to throw a party.

Let's explore some Christmas gift ideas that go beyond the traditional, and are appropriate for both your clients and team.

The traditional route: gifts, cards and donations

The traditional approach often involves food-related gifts like hams, hampers, or bottles of wine or spirits. While these can be easily ordered online and delivered, it's essential to consider potential delays and the possibility that recipients might be working remotely. To navigate these challenges, opt for non-perishable items or those with extended shelf life.

For clients who you have a close relationship with, consider personalised gifts that align with their personal interests.  This more personal approach demonstrates your attentiveness and can strengthen your professional relationship. Additionally, a handwritten card adds a personal and cost-effective touch that resonates well during the holiday season.

Another option is a making a donation on behalf of your clients or team members. This adds a meaningful element to your gift-giving as many people really appreciate an email or card that lets them know you’ve donated money to a charity on their behalf. For that extra touch you can include details like, “The local foodbank will use this donation to feed families on Christmas Day.”

Building Stronger Connections: Coffee, Lunch, and Face-to-Face Interaction

Treating high-value clients to a coffee or lunch can be a powerful gesture. This not only allows for a more personal connection but also creates lasting memories. While this approach may involve a higher cost, the impact on client relationships can far exceed that of a traditional gift.

Consider the preferences of your team when deciding on gifts for them. While hampers are a classic choice, it may not be universally preferred. A Christmas bonus is appreciated, but it's essential to consider the tax implications. A supermarket voucher, on the other hand, retains its full value, providing a practical and tax-efficient alternative. Engage with your team to understand their preferences; some may value a paid day off more than a physical gift.

Budgeting for Generosity: Tailoring Gifts Based on Relationships

Working out how much to spend on each client can be challenging. One approach is to categorise clients based on their spending with your business and their overall value to your business.

Consider giving high-value clients more substantial gifts, while smaller clients may receive more modest yet thoughtful tokens of appreciation.

Need help with Christmas budgeting?

If you find yourself wondering how much each client has spent or are unsure about your Christmas gift budget, we're here to assist.

Get in touch with us, and we'll analyse the numbers to provide insights tailored to your business. We'll help make sure your generosity aligns with your financial capabilities, making this festive season memorable for both you and your clients.

Get in touch and we’ll run the numbers to give you the insights you need.

Outstanding tax debts? ATO warns about disclosure to Credit Rating Agencies

The ATO has shifted its focus from providing assistance with tax through the pandemic to now re-establishing the culture of businesses paying their tax debts on time.

Beginning from July 2023, The ATO has issued notices of intent to disclose business tax debts of more than 22,000 businesses with a tax debt of at least $100,000 that is overdue by more than 90 days, to credit rating agencies (CRAs).

Disclosure of business tax debts

The ATO may report your business tax debt if it meets the following criteria:

• you have an ABN and your business in not an excluded entity
• you have one or more tax debts and at least $100,000 is overdue by more than 90 days
• you are not engaging with the ATO to manage your tax debt
• you don't have an active complaint with the Inspector-General of Taxation Ombudsman (IGTO) about our intent to report your tax debt information.

The Commissioner has urged taxpayers, with outstanding debts, to engage with the ATO to not risk their business’s tax debts becoming visible in credit rating checks.

Intent to disclose notice – next steps

Section 255-15 of the Tax Administration Act 1953 empowers the Commissioner to enter into an arrangement with an entity which has, or which is expected to have, a tax-related liability, whereby the entity may pay the liability by instalments.

Businesses need to pay their debt or enter into an appropriate payment arrangement within 28 days of when the intent to disclose notice was issued to prevent disclosure.

In October 2023, more than 9,000 businesses are expected to have their debts disclosed and the ATO expects to issue 50,000 notices of intent to disclose by the end of 2023–24 financial year. A disclosed debt can impact your business’s ability to receive finance and your business may also lose suppliers.

Contact us

If you have received a notice of intent or have a tax debt of $100,000 or more that is overdue by more than 90 days, as your BAS Agent we can assist you in engaging/re-engaging with the ATO and help create an arrangement or payment plan that best suits your current and future financial position.

Should you have any other queries, please feel free to contact our office.

10 questions to ask yourself as a business owner

Running a busy and successful business means you often don’t have the time to step back and work ON the business. This can be a challenge if your aim is to grow and scale the company.

As experienced professional bookkeepers and business advisers, we know the value of taking the time to ask yourself some pertinent questions.

Holding yourself and the business to account is something we can help with. And there's never a bad time to pose a few questions and gauge where you're at with your planning, strategy, financial management and personal goals as an entrepreneur.

We've pulled together 10 questions to ask yourself as a business owner.

1. Can you explain why a customer should choose your brand over another?

Knowing your value to a customer is vital if you’re going to market your offering in the most effective way. Think about why your brand stands out in the marketplace, and what opportunities and threats exist. This is the fastest way to tailor your brand to meet customer expectations.

We can help you by running a SWOT-based analysis of your business.

2. How happy is your workforce?

Your people are such a vital asset, but they won’t work well if they’re dissatisfied and disengaged from your business values.

Ask yourself, are your employees motivated and engaged by your mission? Is there anything you can do to boost this engagement?

We can review your people strategy and the staff benefits you offer to your employees.

3. Are you meeting your cashflow goals?

Are there specific costs or inefficiencies that are holding you back from achieving a positive cashflow position?

Ask yourself if your financial management is up to scratch. Identify your failings and tighten up your cash process.

We can review your cash management and look for efficiencies and cost-saving opportunities.

4. What keeps you awake at night?

It’s a stressful role being the boss, and there’s likely to be a lot playing on your mind.

Consider whether there are any recurring business issues that are holding you back, or unexpected pitfalls that have appeared along the course of the business journey.

We can offer you seasoned advice whatever the issue, with resolutions to ease your worries.

5. Are you embracing everything that tech and AI has to offer?

Technology is moving fast with AI solutions and digital systems now an integral part of many business models. But are you doing enough to bring your business into the digital age?

Are there tasks could you automate, or processes you could streamline?

We can integrate a suite of apps such as Xero, Dext, Futurli, and other platforms to boost your business.

6. Is growth part of your business strategy?

Not all businesses are focused on growth, but outlining your key goals around growth is an essential part of your business strategy.

Ask yourself whether you want to scale at speed, or grow organically. Or whether you’re happy to be a boutique business that keeps things small.

We’ll help you define your growth goals and build a strategy that aims for success.

7. Do you have the numbers you need at your fingertips?

So much of what you do as a business is driven by data. But are you getting the overview you need of your important business metrics and key financial numbers?

Think about where you need detailed data and metrics, and how this could put you in better control of the company.

We can help you expand your reporting and management information, so you have a better eye on performance, spending, cashflow and sales targets etc.

8. Have you identified your ideal customer?

Identifying your ideal customer is something every business should do. But when was the last time you updated your ideal customer outline?

Think about who you’re selling to, how this audience has evolved and whether they are still the right customer to target.

We can run detailed customer profiles to help you pinpoint the best customers to target.

9. Have you thought about where your business will be in five years?

When the business is busy, the temptation is to focus on the now and to put your energy into fighting the most pressing fires. But without a forward-looking focus, you can lack direction.

Ask yourself where you want to be in five years and how you plan to achieve these goals.

We'll help you create a detailed five-year plan, to give your journey more impetus and direction.

10. Are you planning for your own financial future?

You obviously spend a lot of your time thinking about your business – but how much time have you spent considering your personal financial future?

Think about your life goals and how you plan to fund them, and where this money is likely to come from.

We can advise you on planning and the advantages of good all-year-round financial management.

Talk to us about running a health check for your business

Ideally, these 10 questions to ask yourself as a business owner will have got you thinking more strategically about your business. If you’d like to take this process further, we’d advise running a detailed health check for your business and personal finances.

Book a meeting with us to talk through your goals, aspirations, challenges and strategy, so we can help you take the next step in your journey to entrepreneurial success.

Get in touch to book a health check.

The ATO agent nomination process

To protect the security of your tax and super information, the ATO is introducing a new process to ensure that only your authorised tax agent, BAS agent or Payroll service provider can access your account and act on your behalf.

This process does not currently apply to individual taxpayers or sole traders. And only applies when you engage or change an agent or change the authorisations you give your existing agent.

What does the new process mean

The ATO Agent Nomination Process protects your business and means only your nominated registered agent will:

• have access to your information
• perform tasks on your behalf, such as lodging your tax return.

Nominating your official agent allows access to your account and to act on your behalf for matters relating to:

• companies including strata title bodies
• partnerships
• trusts
• not-for-profits
• joint ventures
• cooperatives
• self-managed super funds (SMSFs)
• APRA-regulated superannuation funds.

We can efficiently manage your tax affairs, providing you with expert guidance and support throughout the process.

We can help and guide you through the steps to nominate us as your official agent.

The following guide has easy steps to follow. (If you have not already set up access to Online Services for business, you’ll need to do this first).

We cannot do this on your behalf but we can assist you through the process if needed - or contact the ATO for technical help with your myGov account.

Client-Agent Linking Steps - The ATO Guide

If you have any questions or need assistance with the nomination process, or anything else, please get in touch. We are here to help and will ensure your affairs are handled with expertise and care.

How much should you pay yourself?

Being the boss means you get to make all the big decisions about your business – including how much to pay yourself in wages, salary or drawings.

As the owner, you might need to underpay yourself in the early stages of building your business, so you can reinvest the profits. But your time is valuable – and you need enough money to pay the bills.

So how can you find the right level of pay? It has to be enough to keep the mortgage paid, while also building a thriving business.

If you’re trying to decide how much to pay yourself, here are a few questions to ask yourself:

What can the business afford?

You need to leave enough cash in the business to keep it ticking along, pay your basic costs, and meet your tax obligations.

Once you’ve considered all those outgoings, how much does that leave you as a potential salary?

We can help you work out what that number is, so you can establish a sustainable rate of pay.

What’s the market rate for your role?

What would you have to pay someone to do the work you’re undertaking in this business?

Maybe you wouldn’t actually be able to find anyone to work the same long hours, but if you were hiring someone with your experience, to do the same sort of work for 40 hours a week, what would they expect to be paid?

That number is a good starting point for thinking about your own salary or drawings.

If you’re being underpaid, it’s time to think about ways to grow your profits. If you’re being overpaid, congratulations on building a highly profitable business.

Could reinvesting profits grow your income faster?

You can take all the profits out of your business, which should give you a strong and sustainable income.

Or, could you reinvest your profits and grow the business faster, leading to a higher income in the long-term? You might choose to spend some of your profits on advertising, a better website, or developing a new offering, for example.

Or you could pay for assistance in some area of the business. If the investment leads to higher growth, it might be well worthwhile.

We’ll help you run the numbers.

We can help you figure out how much your business can afford to pay you, analyse the potential gains of a business investment, or weigh up the pros and cons of hiring someone to help you.

Get in touch, we’d love to hear from you.

5 ways to tackle economic uncertainty

Economic uncertainty is an ongoing worry for any business owner.

While you can manage your finances, the broader macro-economy is beyond your direct control. And in the first few years of the 2020s, there have certainly been plenty of tricky ups and downs for your business to navigate.

Current economic uncertainty stems from a number of factors, including:

• Fluctuating markets
• Geopolitical tensions
• Pandemic recovery
• The impact of climate change.

This unpredictability poses significant challenges for sustained growth and stability – but there are simple steps you can take to tackle these challenges.

Simple strategies for tackling the challenges of economic uncertainty

Good financial management is the key to tackling any period of economic uncertainty. When sales, revenues, supplier prices and operational costs are all highly dynamic, it’s good to know that your business has cash in the bank and a solid financial strategy to stick to.

But how do you get tighter control over your business finances? And what are the main areas to focus on, track and manage as a business owner or financial director (FD)?

Here are five ways to tackle economic uncertainty:

Manage your cashflow effectively

Cashflow management is the process of tracking your cash inflows and outflows, identifying potential problems and being proactive about taking action. It’s helped by running regular cashflow forecasts and sticking to budgets.

Cashflow forecasting applications, such as Futrli, seamlessly connect with your Xero accounts. They provide a detailed perspective on how your cash will flow in and out in the upcoming months. This crucial information empowers you to make well-informed decisions.

Carry out spend management

Spend management involves tracking your expenses and identifying areas where you can cut costs. You do this by switching to more cost effective suppliers, cutting back unnecessary expenses and having tighter approval processes. Talk to us about implementing expense management apps into your business.

Negotiate better terms and prices with suppliers

Negotiation can help you save money on your raw materials, labour and other important costs. You can also negotiate better payment and credit terms by building trusted relationships with your suppliers.

Embrace AI automation to cut costs

Artificial intelligence (AI) tools are a great way to automate tasks, such as customer service, billing and inventory management. This frees up time for strategic activities and saves you money on labour costs.

Diversify into new products or markets

Diversification helps you reduce your dependence on a single product or market, making your business more resilient to economic downturns. It’s important to choose products or markets that are complementary to your existing business, and that have good growth potential.

Talk to us about strengthening your financial management. We'll look after your books so you can look after your business. 

With the world in such an unstable state, it’s always difficult to know exactly what lies around the corner for your business. But it’s safe to say that with a robust and agile financial strategy, you’re in a better position to flex your revenue streams and overcome any cashflow pitfalls.

As your bookkeeper, we can help you get tighter control over your cashflow, budgeting and financial forecasting.  

How automation streamlines your business

How can business automation streamline your business? Business automation uses technology to streamline and simplify all the repetitive manual tasks, processes and workflows that are part of the everyday running of your business.

Instead of spending hours of business time doing everything manually, automated systems can take on most of the heavy lifting.

You can automate the data-entry of your bookkeeping, the sending of recurring invoices or the coding of transactions when doing your bank reconciliation – basically, any task that’s repetitive, rule-based and taking up your time.

Automation makes your processes faster, more accurate and more efficient. This frees up your time to focus on other important strategic and customer-facing tasks. It also means you can get more work done in less time, making the business more productive and profitable.

How does business automation affect your business?

Smart use of automation can give your small business a major boost.

Instead of having to hire more people, you can grow the business and significantly reduce the admin workload for your existing human team. It’s the easiest way to set the foundations for scaling up the company.

By automating key areas of your operation, you can:

• Streamline your workflows – business automation optimises your processes by automating tasks like data entry, payment collection and approval workflows. This reduces the manual effort that’s involved and boosts your operational efficiency.
  
  Online bookkeeping applications, such as Xero, can take on the time-consuming task of data entry for your financial records. They allow for the seamless organisation and tracking of income, expenses, and other financial transactions.
• Improve your process accuracy – automation cuts down on human errors by applying rules consistently and precisely. This means your financial calculations are more accurate, data is of a higher quality and the company has better compliance standards.
• Save time and resources – all those tedious, repetitive manual tasks are now automated. This frees up valuable time for you and your team to focus on strategic activities, innovation and working more closely with your customers.
• Become more cost-efficient – automation cuts back the labour costs that usually go hand-in-hand with manual tasks. You’re more productive, your operational costs are reduced and you don’t need any additional staff to grow the business.
• Scale your business with ease – as your small business expands, automated systems are the special sauce that helps you scale up as quickly as possible. You can effortlessly meet the increased workload, grow your systems and stay agile and adaptable – two of the key skills for any ambitious business that’s looking for fast growth.

How can our firm help you with business automation?

Working automation into your business strategy is the fastest way to achieve your key goals.

With your main tasks and processes automated, you have a sleek, systemised business to drive your growth. And we’re always here to help you maximise this use of automation. We’ll help you review your operations to look for the automation opportunities – and can implement the most effective apps to add into your tech stack.

If you’d like to know more about the benefits of automation, we’ll be happy to explain.