If you’re a small business owner, you should be aware that the Australian Government has changed its insolvency framework, effective as of January 1, 2021. These reforms were brought in as a response to COVID-19 and the economic effects of the pandemic.
Cryptocurrency used to be part of the wild west – a far-off gold rush on the internet’s frontier. Those days are long gone. Cryptocurrency is well known, and so is mining for crypto. It’s become so well known that regulatory authorities are starting to catch-up in a big way; here in Australia, that’s certainly true.
If 2020 imparted a single lesson, it was the importance of digital connectivity. This past year has made a compelling case for shifting towards cloud-based systems that offer access regardless of user location. It’s no longer enough to provide employee access to video-calling and IM applications with a rickety online file-storage solution. The new digital future requires easy access to real-time data for multiple distributed users. Your accounting and bookkeeping functions should be no different.
Over the past 12 months, 2020 brought a raft of unemployment around the world, threatened global markets, and destroyed many small businesses beyond repair. As we move into the new year and the slow roll-out of a COVID-19 vaccine begins, it seems we are shifting into the post-COVID world. But what might this look like? It’s hard to deny the economic damage that has been done to businesses of all sizes.
Take a moment and think back to the last invoice you sent out from your business. Whether it was a paper copy or a PDF, mailed or emailed by yourself or your finance department, it came with a price tag. In fact, the average invoice will cost a total of between $27-$30 to process and finalize, considering the time spent entering information and processing payment. This year, something new is on the way. E-invoicing is a system where an invoice can be transferred directly from one financial management system (for example, QuickBooks) to another system (say, Xero) immediately.
You’re probably well aware of what Single Touch Payroll is, and how it works by now. In summary, using STP means you will electronically report all employee payroll information to the ATO. The reporting is based on your payroll cycle, so whether you pay on a weekly, fortnightly, or monthly basis will dictate how often you report. STP provides greater efficiency to business owners, and to the ATO. Reporting employee salaries or wages, Pay as You Go withholdings, and superannuation is streamlined. If you’re in need of a quick refresher, check out our earlier article here.
As a business owner, it’s highly likely that you’re consistently focused on operations and growth; your drivers of strategic success are based on maintaining your market position and leveraging available opportunities for expansion. This is a common, effective, and logical. However, do you currently know what the true value of your business is? Staying aware of this important information may help you in your operational decisions in the near future, and for long-term, blue sky planning.
The NSW Government will continue to support local businesses impacted by COVID-19 with policies to make business management easier. This will allow impacted businesses the opportunity to re-build, attract investment and create jobs for the future. The Government has endeavored to turn around a historic $16b budget deficit bought on by the COVID-19 pandemic by undertaking a major reform of its tax system.
Illegal Phoenix Activity refers to a company being purposely liquidated or otherwise closed for the sole goal of avoiding creditors. This is an illegal way in which some businesses avoid paying creditors and other liabilities, including taxes and funds owing to employees. Once the business has been shut-down, a new entity often pops up in a similar name, holding the previous company’s assets.
When you think of inventory management, what comes to mind? A stock-take day used to be a tedious and manual process, hours upon hours of reconciling data and physically counting items. These days, we rely on technology to keep business inventory levels up to date. But is your system as efficient and synchronized as it could be?
Last month we shared insights on how outsourcing your accounting needs can boost your business, giving your organization ample room to grow. This month, we’re extending this topic further – to why choosing an offshore office for your outsourcing needs can bring even greater benefits into your organization.
If you’re a business owner, it’s safe to say you’ve spent years building your company. You’ve invested the proverbial blood, sweat and tears, and now you’re looking for way to continue growth – no small feat, especially during a pandemic. Organic growth has likely brought your business to where it is today, and you know it can be a slow and trying process.
As COVID-19 spread rapidly around the world in early 2020, many companies were thrown into a rapid shift to remote working. Even for organizations with remote working policies in place, scaling up to an entirely remote workforce was a huge challenge. Suddenly, we all found ourselves at home. We were now sharing our workspaces with barking dogs, children, the neighbour’s lawn mower, and new colleagues – our spouse, our flatmates, and even extended family members. An extraordinary adjustment period in any circumstance, and with the pandemic showing no signs of ending soon, we are now faced with a new challenge: how do we safely integrate in-person back into our lives?
Thinking about estate planning and drawing up a will is an uncomfortable topic for many people, but it’s a really important step in ensuring that your family is secure, and your wishes are carried out in full. If you think you’re still too young to even bother thinking about your estate or to have a will at all, well, there’s a few reasons you might want to reconsider your stance.
When you started a business, you probably weren’t thinking about how to make sure your software systems all spoke the same language. You might have started out with only one or two systems, and over the years, have expanded the numbers of services and systems that you use to run an effective business. But if your data isn’t stored in a hub, and your systems can’t communicate with one another…you might be missing out on big opportunities for efficiency.
Whether you’re a new business or a well-established organization, there’s always room to grow. One of the most efficient ways to boost your business is through leveraging outside expertise through outsourcing. Finance is the lifeblood of a business, allowing you to track and consistently assess the performance of your business. It’s also an area that can be data heavy, and often the level of expertise required can fluctuate over time. Your initial set-up with some basic accounting software might no longer be serving your best interests, but it’s difficult to know without a full assessment from a financial professional.
If you’re a business owner, when you hear the term “succession planning”, you may immediately think of leadership roles – who is going to replace me as CEO when I retire? This is certainly one important consideration, especially if you’re nearing retirement age. But if you’ve been consistently engaging in succession planning within your business for some time now, your question should be answered with a modicum of ease.
Have you been thinking about taking a more active role in your investments and retirement planning? If so, you may want to consider if a self-managed superannuation fund (SMSF) is right for you. Just like your current superannuation fund, an SMSF is a fund set up to help you save and invest for a comfortable retirement.
Processes, procedures, systems…as a business owner, these topics might not be at the top of your priority list. In fact, they might make your eyes glaze over and your attention wander. But they’re some of the most important tools you hold in your business, and can be the make-or-break items for success. Here’s why:
Is your business in a place where you’re considering whether it’s time for growth? Two things you may want to consider is whether you’re eligible for Research & Development (R&D) tax incentives, and if you qualify for an Export Market Development Grant (EMDG).
The rapid global spread of COVID-19 has left a lasting impact on the business world, and we can expect to see the implications of these changes for decades to come. Many companies have needed to rapidly pivot to a distributed, remote working set-up for the majority of their staff, and this has presented significant challenges. Providing both employee and customer access to your business’s key data is crucial to keeping your operations up and running.
The simple household budget, and its counterpart, the annual corporate budget, have long been staples of financial planning. However, with the advent of ambitious tech companies relying on venture capital and angel investors to turn their disruptive and innovative ideas into pure profit, we’ve also seen a shift in thinking.
Single Touch Payroll (STP), plays an important role in receiving Jobkeeper stimulus payments. Here’s what you need to know. Single Touch Payroll is key for businesses to gain quick and easy access to the government’s Jobkeeper wages subsidy scheme. This scheme is intended to provide payments of $1,500 per fortnight to millions of Australians via their employer.
The global pandemic has thrown the business world into a period of extreme uncertainty, leaving many business owners wondering what actions to prioritise. Business owners and individual employees are worried about financial liquidity – and with good reason. There are a few key actions you can take now that will assist in your business’s recovery in the coming months.
The end of the tax year will soon be upon us with 30 June just around the corner. It’s a great time to look at your expected taxable income and profit for this financial year which will allow you to get your affairs in order and plan how to take advantage before 30 June.