Choosing a new business bank account?

A business bank account is an essential requirement for any business. But with so many banking providers out there, how do you know which business account to choose?

The key is to know what you require from a bank account, and to choose a bank that understands the banking, financial and funding needs of your business.

Choosing an account that fits your business needs

Whether you’re a new sole trader or an established limited company, it’s advisable to maintain a clear divide between your personal and business money. So it’s vital to open a business bank account, giving you a separate account to handle your business transactions.

The choice of available accounts can be baffling, with the big corporate banks and high-street providers offering a range of accounts, and new digital challenger banks also adding to the available options for business owners.

When looking for a business account, consider:

Talk to us about selecting your ideal bank account

If you’re in the market for a new business bank account, come and talk to us. We’ll help you understand the key requirements you need from your account, and the banking providers that are most suited to delivering the right flexibility for your business.

We’re here to help you, every step along the way. Get in touch!

The true cost of a new employee

Bringing on another pair of hands?

It can be a big decision to commit to having a new member on the team but the right person will bring in the skills you need to grow the business and give you more time to achieve your goals, even if that is to spend more time with your family!

Before you advertise the role

Spend some time to understand what skills you need in your business to move forward or to strengthen your position in the market. You may decide that the skill gap could be met by training existing staff who have capacity or would be open to a change in job description.

If the role is new

Decide whether you need a full-time or part-time employee and what sort of experience or qualifications the ideal candidate would have. If they need training when they start, consider who will run this and how that will impact timings.

Create a job description

This will help you when it’s time to assess candidates. Try to avoid too many acronyms and internal jargon that won’t make sense to people outside your company.

Finally...

You’ll want to understand the true cost of adding another staff member. Start with average industry salary rates and work out the fixed and discretionary costs involved, including Fringe Benefit Tax, industry insurance and superannuation costs. Include your one off recruitment costs and overheads, as well as the cost of training and any benefits you offer, such as a car park.

The recruitment process provides you with an opportunity to diversify your workplace. And if you hire people facing barriers to employment, you may be eligible for a number of financial incentives available for businesses.

Talk to us about employing someone new.

Employing someone new to help take your business forward is an exciting step. We’ll help make sure that your finances and paperwork is in order before you hire.

Get in touch to see how we can help.

Hold me accountable or else what?

Most business owners understand that the only way to ensure something gets done is to document what is expected, assign it to the right person, and set a due date. But what do you do if the task isn’t done? What are the consequences of this inaction?

Think back to your school days when you had homework... 

Maybe you were super organised and got stuck in as soon as the work was assigned, or perhaps you completed it on the school bus the morning it was due. Either way, why did you get it done? Chances are there were clear consequences set by your teacher if you didn’t complete it - a few whacks with a stick or a lunchtime detention – that’s what we call accountability and consequence.

Unfortunately, many business owners forget these lessons from school. Sure, we set the tasks and actions, assign them to people and, if we’re really good, set a due date. From there, we so often forget to hold the person to account. Very rarely is there a consequence for the person responsible for the task. The consequence for the business owner, however, is ultimately a poorer performing business.

Here’s seven rules to tighten up your accountability:

Now, ask yourself…

What actions can I take to improve accountability and outcomes for my team? What changes or improvements do I need to make to my planning processes and reporting systems? And most importantly, who is the best person to hold me to account as a business owner? Accountability goes both ways, especially if you want to be an authentic and effective leader.

"Accountability is the glue that ties commitment to the result." – Bob Proctor.

Closing your business

Are you consider closing your business? Or have you recently sold your business?

If so, do you know what your obligations are regarding your accounts?

If you are closing your business or the business has been sold, you need to get all the data entry up to date, for the final accounts to be completed by the accountant.

This involves reconciling all the bank accounts, loan accounts and managing any outstanding invoices and bills.

You also need to ensure all your employees final pays are processed.

It’s important that your accountant has the details of everything to do with the business sale - the contract and settlement documents etc.

If this sounds like a mammoth task we can help.

As your bookkeeper, we will check if you or your accountant will be cancelling all your relevant registrations such as:

It’s really important that registrations are not cancelled without checking with your accountant first.

Sometimes business goes bad

Sometimes things go wrong, things that can be out of your control or can’t be helped, And the sad outcome of that is that businesses can go bad.

It’s obviously a challenging time when this happens. So, it’s important to understand what is involved.

Firstly, if you’re working with a bookkeeper and accountant, they can often identify when things aren’t going and can try to help you get your affairs in order. Unfortunately, sometimes this isn’t enough, and you have to call in the Liquidators.

The liquidation process will be dependent on your business structure, there are differences in the process for sole traders and companies.

The Liquidator will most likely contact your bookkeeper and accountant to obtain access financial records. Before providing any information, your bookkeeper and accountant should check that you are actually in liquidation. There are scammers out there. This is achieved by searching your company name or CAN on ASIC.

If you are in liquidation, you should also be aware that, as a creditor, your bookkeeper and accountant will most likely only continue doing any further work for you if the Liquidator has authorised the work.

As mentioned previously, liquidation is a challenging time. Understanding what is required of you and your bookkeeper can help ease the pain a bit.

We’re here to help you, every step along the way. Get in touch!

Get on top of time wasters in your working week

There are 1,440 minutes in a day and each of us have the same allocated amount. Some people manage to achieve much more than others. So, how can we free up time to help lead a better business and ultimately a happier life?

Reporting PAYGW Correctly 

PAYG and claiming tax deductions

From July 1 2019, If you don’t meet PAYG withholding obligations for your workers, by not withholding tax from their payments and not reporting it to the ATO, you could lose your tax deduction.

This will apply to income tax returns lodged for the 2020 financial year and beyond.

If you withhold tax from payments to workers, you must withhold the required amount and report correctly to the ATO in order to receive a tax deduction for your business.

PAYG withholding and reporting obligations apply to payments for:

Withholding rules still apply to cash payments. Similarly, for non-cash payments such as property or exchange of services, withholding rules still apply even if your worker agrees to receive a non-cash payment in place of money.

PAYGW

The payment of PAYGW to the ATO is a separate issue. The new rules are aimed at getting employers to report correctly and on time. Once you have reported an amount to the ATO, they expect payment of that obligation by the due date.

If you make an honest mistake, such as treating an employee as a contactor, you won’t be penalised. You can correct your mistake by lodging a voluntary disclosure

Talk to us

Contact us to review your PAYGW reporting obligations. 

Living above the line

There are three winning behaviours and three responses that’ll sink your team.

Are you living above the line? If not, you need to get there, as it’s the easiest way to transform workplace culture and team performance.

Here’s how, using the OARBED behaviour model:

The acronym starts with OAR - when behaving above the line, one takes: 

Ownership

Accountability

Responsibility

Below the line, BED, is defined as: 

Blame

Excuse 

Deny

No matter what, reacting in these ways is below the line.

For instance, consider the likely reaction of a naughty child caught in the act. If five-year-old Bobby is caught pulling his sister’s hair, he may resort to BED behaviour:

Blame: 'She made me do it.' Excuse: 'She pushed me first.' Deny: 'I didn’t even touch her.'

Adults don’t typically pull hair, but BED behaviour could look like this in your office: Someone misses a deadline… and they blame an internet dropout; make an excuse about not having the necessary information; or deny the project was their responsibility in the first place. This behaviour alienates oneself, while hurting team performance and morale.

On the other hand, paddling with our OAR means, regardless of our initial thinking, we must take ownership, accountability and responsibility. When we live above the line a resolution is found faster, individuals feel more supported and we’re more likely to learn from our mistakes.

​OARBED has no hierarchy. 

Would your team be comfortable calling you, or anyone else, out on below the line behaviour?

Remember, thinking below and acting below are not the same. It’s human nature to dip below the line in our minds, but it’s how we act that matters. Staying in BED is easy, but paddling with your OAR is much more effective and in time the whole team will be paddling in sync. Are you living above the line???

Therefore if you would like to know more about OARBED then feel welcome to contact us.

"The best apology is changed behaviour." - Anon

The five A's of change

Do you want continuous improvement in your business?

Let us explain The 5 A’s of Change: Awareness, Acceptance, Action, Accountability and Acknowledgement, and how we can help you to make change stick.

Whether it’s a new focus, a new venture or a new year, consciously recognising the process required to change can vastly improve your outcome.

The Five A's of Change breaks it down simply:

1. Awareness.

​First we must be aware of what needs to change. Perhaps we want to work smarter, not harder, so we can have more family time and better financial returns.

​2. Acceptance.

​We have to accept that in order to work smarter we will need to do things differently. There is no magic bullet; effective planning is critical to achieving change.

3. Action.

Once we have a plan; we must actually implement it. Taking action can be simpler than imagined; one step at a time, the momentum for change will grow. But, if we don’t act, planning is pointless.

4. Accountability.

Having someone independent to hold us to account is typically a foolproof way to ensure we act. A bit like going to the gym before work… we’re more likely to show up if we’ve committed to a friend or paid for a personal trainer.

5. Acknowledgement.

Humans are habitual creatures. It takes 21 times to change a habit. By celebrating the success of taking action and forcing change, we help to reinforce that good behaviour. The reaction is a chemical one.

This powerful model is simple and effective. Consider the things in your business that you would like to change and what stage in this process you’re at. What is your next step? Whatever your current situation, empower yourself and make a commitment to real change.

"The secret of change is to focus all of your energy not on fighting the old, but on building the new." Socrates

Do you need help making change stick? Check out how we can help you with planning and accountability.

Talk to us about how we can help.

Insuring your business

When it comes to business, it’s better to be safe than sorry.

Protecting your business with the right insurance policy can guard against risk and compensate for any losses. Make sure you have the right policies for your business and review them annually.

It’s not just fire or theft that you have to consider these days. Insurance can provide coverage against:

So, insurance isn’t just about piece of mind. When the worst happens, it can also be the difference between rebuilding your business, or having to shut up shop.

Before you buy

Before you buy any policy, it’s important to take the time to understand the fine print. Make sure you supply all the necessary information to the company you’re purchasing through, as providing misleading information could invalidate your policy.

In Australia, some forms of insurance are compulsory for businesses such as workers compensation if you have employees. And third party personal injury insurance, which is often part of your vehicle registration fee.

The risks you face and the policies available to cover these risks vary from business to business, and by industry. They’ll also change over time so a regular review is a good idea. Insuring your business is good risk management.

No single policy can cover all your business risks so it’s likely you’ll need more than one policy to.

Check out a list of common policy types for business by the Department of Industry, Innovation and Science.

And talk to us, we can help.