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.

Working from home

If you are working from home for your business, you should be able to claim some of the costs involved in maintaining, owning and using your home.

However, it’s important to be aware of what you can and can’t claim, and the record-keeping involved in making a claim.

How does​​​​ it work?

In order to claim, the space you use must be used primarily for your business.

This doesn’t mean setting up at the kitchen table from time to time. It means having a dedicated space that you work from.

If you are selling online and storing stock, you may also be using other spaces in your house for storage or stock maintenance. Or, if you are making or creating products, you may be using other areas like your kitchen or workshop.

Costs that you might be able to claim include:

You may also be able to claim the costs of some trips in your car if these are from your home office to other locations where you are carrying out business.

The ATO has developed a calculator tool, to help you better understand what you might be able to claim. View the tool here.

Keeping track of your costs

Make sure you keep a record of all your expenses. It’s important to keep your personal and business expenses separate. Consider using online accounting software so the paperwork is kept in good order.

We can help you review your home office expenses to make sure these are included when you claim.

Talk to us about how we can help.

Supercharge your business with these ten tips.

Here are ten ways to make sure that you continue to drive through each business quarter with purpose, vision and the courage to super-charge your business.

1. Elimi​​​​nate distractions

Time is the scarcest resource and biggest killer for most businesses. Owners get distracted and focus too much time and energy on the wrong things. Be brave - slash standard meeting times, reduce unnecessary admin, delegate and cull.

2. Saying goodbye to bad customers

If possible in your business, get rid of ten time-wasters, bad payers, or customers who cause you pain. You will feel instant relief and spend your time better elsewhere.

3. Invest More

Having freed up time and headspace from deploying points one and two above, make sure you ring-fence time, key people, and money for some of the initiatives below. Redeploy with passion!

4. Get a Plan

You don't go on a journey without a map or any idea of where you're headed - so why fly blind with your business? Have a planning process, create a kick-arse plan - and execute.

5. Reconfigure

Don't let people who don't get it, won't get it, or don't care, be a millstone around your neck. If they're not right, do them a favour and free up their futures.

6. Use Technology

Decrease admin, improve comms, improve reporting and accountability through the use of the best apps. Slash paper and automate where possible.

7. Value-add

Don't do the same old, same old. Refocus on value-add, making a difference. You want to do work with impact, meaning, and value - yes?!

8. Be Different

Break the mould and position yourself to attract ambitious, growing and engaged clients, and employees.

9. Deploy Marketing

Create a simple marketing plan to increase reach and penetration. Set aside a percentage of fees to treat this seriously. Remember that clients are prospects are online too. Make sure that you engage online and incorporate this as a key part of your marketing plan.

10. Ask for referrals

Advertise, target, and look for referral relationships to drive good quality customers your way. They’re out there if you proactively seek them out.

Good luck super-charging your business with th​ese ten tips!

Get into the habit of doing your bank reconciliation

When it comes to bank reconciliation, it’s important to get into the habit of doing it often. Putting it off can mean bad things for your business records! 

What is it?

Bank reconciliation keeps your bookkeeping accurate and can help lower your tax, alert you to fraud, and allow you to track costs.

It involves a comparison of your sales and expense records against the record your bank has.

Saving time

It can take a lot of time to do it manually, so you may want to consider using software. Most banks can send transaction data directly to accounting software like Xero through a secure online connection.

However if you do bank reconciliation, do it often.

The longer you go without doing it, the longer it will take to catch up.

It won’t just be that you have more transactions to do, it will take longer per transaction, because you’ll have a harder time recalling the details.

So, schedule the time to do it every week or even every day. And set up a system that makes it quick and easy to grab the records you need.

Talk to us, we can help.

Getting your business records ready.

There is a lot to deal with at the end of the financial year, so it's good business to get your 2019 records in order before you get stuck into the next tax year!

What records do you need to have ready?

• Have you bought or sold assets? If so, you need full details of acquisitions and disposals.
• Have you taken out a new loan or other finance? You must have details of the finance arrangements and statements of monies owing at 30 June.
• Check that any bonds or deposits paid or received have been allocated correctly.
• Have you prepaid for insurance or other large business expenses that need to be apportioned to the following financial year? Make note of the portion applicable to the current financial year.
• Do you carry stock? If so, did you perform a full stocktake at 30 June (unless you qualify for the simplified trading stock rules).
• List any bad debts to be written off or pursued.
• Do you have loans with related entities? You need to reconcile the loans to and from each entity to ensure the same value is reported in the accounts of both entities.
• Ensure that all payments to company directors have been correctly captured.
• Review your debtors and creditors (accounts payable and receivable). Is the list current and accurate?
• If contact details of business owners and key personnel have changed let us and your accountants know.

There may be other matters to discuss such as capital gains, vehicle usage, private usage apportionment or superannuation.

Remember you need to keep all your business records for seven years, so store everything securely and where possible electronically for safety and ease.

Talk to us today about how we can help you get your records ready for your accountant. 

There's an App for that!

Are you overwhelmed with paperwork? Or do you spend too much time wading through administrative tasks? Do you need more time for key staff communications?

As life gets more frenetic, it’s worth looking at utilising the tools to help improve workflows and productivity. In an ‘always on’ digital world, it’s time to get the technology working for you.

But with so many out there, which do you choose?

The idea is to spend less time on admin - not more. So, we have done the research for you.

The following Apps can help streamline your business operation and maximise productivity.

Evernote 

Keeps your notes organized. They can also be files, photos and voice memos. Great for projects, sharing information and collaboration.

Trello

Great for project management.Like an online ‘to-do’ list, your Trello board is the place to organize your tasks, keep track of due dates and keep everyone in the loop on a project.

Google suite 

If you use gmail you can use google suite.You get easy creation, collaboration and sharing of documents (Google Docs), spreadsheets (Google Sheets), presentations (Google Slides) and more.

Toggl

Tracks time on tasks and projects. You can set up manual time entry or put a timer into any web tool making the whole process easier and providing valuable information for billing but also to track your productivity.

Sl​​​​ack

Slack is a communication channel designed specifically for teams. Teams create dedicated channels for projects or areas of work so that the members have all the information in one place.

Zoom

Video and audio conferencing, chat, and webinars. Zoom allows participants to join a meeting from their desktop, mobile and tablet device. Easy to set up and free for up to 50 participants for a maximum of 40 minutes.

WhatsApp 

Send messages, images, audio or video.The app allows you to automate, and quickly respond to messages from customers. Also great for sports teams or other groups.

Other Business Apps

We specialise in understanding the different options of business apps for different industries and businesses. And, we can provide you with insights and guidance on what Apps would best suit your business. 

Talk to us today about finding the right Apps to help you grow your business. 

Single Touch Payroll is now compulsory for all employers.

Single Touch Payroll (STP) is a new system of reporting wages, tax and superannuation information to the ATO. Initially, large employers were required to report from 1 July 2018. Now, all employers must enter into the reporting system from 1 July 2019.

Small and micro employers have until 30 September to enter the system.

STP is a reporting obligation only—it does not change the way you pay employees.

How it w​​​​orks

Employers must submit payroll data to the ATO each time employees are paid. The ATO refers to this as a ‘pay event’.

All the major payroll software providers are compliant with the reporting requirements, allowing employers to lodge the information with the ATO directly from within the software.

All pay events must be lodged electronically.

Eligible micro employers with less than four employees will have simpler reporting options, such as being able to report quarterly through a registered tax or BAS agent.

There are some exemptions for certain employers or employees, such as closely held payees, employers without internet and some foreign workers.

What does it mean for employees?

STP does not change payments, entitlements or pay slips for employees.

Employees will be able to see all year-to-date payroll information online through their individual myGov account.

Instead of receiving a payment summary, employees will receive an ‘income statement’ in their myGov account once the payroll year is finalised by the employer.

What next?

If you do your own payroll and will be submitting the pay event information to the ATO yourself, check this link for all you need to know about reporting STP: ATO Report through Single Touch Payroll.

Get STP ready for your first pay run of the new financial year.

If you do not already use payroll accounting software with STP reporting built in, talk to us about the best solutions for your business.

How much should you charge?

Getting your pricing right is one of the best ways to plan for business success. Don’t make a rushed decision, take the time to properly understand the market, your total costs, and how to position your products or services.

Figuring out how much to charge is a big learning curve for any business owner. The answer to how to approach it will fluctuate as circumstances and markets change. It is important to revisit the question throughout the lifecycle of your business.

There is no magic formula

All businesses are unique, with an individual offering of products and services. Before you set your pricing, It’s important to look at the whole picture. This will help to ensure you are being strategic and not just following trends.

Gather the data

​To get started, you need to gather as much information as possible. Block out some time to sit down with your business data and strategies. Pricing is essentially figuring out where your products and services are positioned in the market. So keep your business strategies top of mind. It doesn’t have to be a confusing exercise. Just grab a coffee get started.

Here are the first steps to consider:

Don’t forget to check in on your pricing regularly to make sure you’re keeping up with your customers and staying ahead of the game.

Contact us if you need assistance. 

Getting ready to exit your business

Looking to sell up? Need a plan? Talk to us about creating a workable exit strategy, with a clear focus on driving value and delivering a solid return on your investment.

When you sell up, you want your business to have as much inherent value as possible – so you get a good price, a great return on your investment and the best possible payout.

So, how do you take yourself ‘out of the business’ as the founder, add the best value and set up an effective and financially beneficial exit strategy?

Adding value to your company

Whether the goal of your five-year plan is an acquisition by a larger corporate, or selling your share of the company to a chosen successor, it’s critically important to focus on adding value.

The more attractive the business looks in the market, the better the price you’ll achieve, or the better the yield you’ll see on selling your company shares.

To drive that value:

• Work on the business, not in it – so you’re no longer a fundamental part of the day-to-day operations, and can focus on the higher-level strategic elements.
• Invest in adding value – keep profits in the business, reduce your personal drawings and plough that money back into growth and investment.
• Improve your financial health – by taking control of your finances and building a strong balance sheet, positive cashflow and attractive profit forecasts.
• Have a proper exit strategy – with a plan that has agreed targets, so you can track and measure whether goals are hit, and a strategy your team can get behind.

Talk to us about exiting your business

If you’re looking to sell up, you need a plan. Come and talk to us about creating a workable exit strategy, with a clear focus on driving value and delivering a solid return on your investment.

Get in touch to build your exit strategy.