Cash Flow Statements
Cash flow statements are an important part of any small business. Regardless of your industry, knowing how to get the reporting right is important. Managing cash flow requires you to have an intimate knowledge of what cash flow statements are and how they can guide your business. Fail to do so, and you might find yourself in hot water with the ATO. Worse, you may wind up needing to close your doors for good. What is a statement of cash flow? A cash flow statement is a key financial document that shows how much cash is flowing in and out …
Restructuring or Selling your Business?
In a challenging business landscape, if you are considering a major change, your head is no doubt filled with questions. I’ve decided to restructure. What’s the best way to do this? Restructuring is never easy but if it’s necessary to keep your business afloat, there’s a process you can follow to keep stress to a minimum. Write a proposal outlining why roles need to change for the business to succeed. Email employees to let them know you’re proposing a restructure and invite them to a meeting (at least 2-3 days later) to learn more. At the meeting talk through your …
WORKING FROM HOME EXPENSE CLAIMS
During COVID 19 there were three methods that could be used to calculate working from home expenses Shortcut method available from 1 March 2020 to 30 June 2022 (whilst working from home due to COVID 19) Fixed rate method available from 1 July 1998 to 30 June 2022 (home office running expenses and electronic device expenses) Actual expense method – that is calculating the actual expense incurred as a result of working from home. From 1 July 2022 taxpayers can continue to claim their actual expenses or alternatively use the revised fixed rate method. The shortcut method is no longer …
Managing Change in your Business
Successfully implement change in your business Research by Kotter International found that more than 70% of change projects within a business fail. Why is this? The research findings show that employee engagement is the biggest factor. Whether it is a small change to one or two processes, or a company-wide change, it’s common for staff to feel intimidated by it. So what can you do for successful implementation of change? Here are the principals from Kotter’s 8-Step Program: Get the team onboard Build support and create momentum behind the changes you are making by communicating the benefits with the whole …
Bringing your cashflow processes in to the digital age
Keeping on top of your cashflow is even more important during tough economic times. With a global slowdown on the cards, energy prices soaring and supply chain still challenges, cash is likely to be tight over the coming year and beyond. Cloud technology and fintech apps, can give your business the best possible control over its cash. Why is cashflow so important? To keep your business operating, you need enough money coming into the business to cover your outgoings – with enough surplus cash to deliver a profit. When recession begins to hit, this can have a significant impact on …
Business Tips: Setting KPIs and measuring performance
Once you begin trading, you’re faced with a new challenge – successfully managing the course of your brand-new business and making sure it’s a profitable enterprise. It’s easier to manage your startup’s sales and finances when you have access to the best possible information and data about your performance. Tracking specific metrics and key performance indicators (KPIs) allows you to see how you’re performing against your targets – so you can take action to improve performance, sales, growth and profitability. But which KPIs should you be tracking? Sales and conversion rates An obvious metric to track is the number of …
October 2022 Federal Budget highlights
The Federal Treasurer, Dr Jim Chalmers, handed down the Labor government’s first Federal Budget on 22 October 2022. Here are the highlights of the tax and accounting measures announced. Businesses Electric vehicles under the luxury car tax threshold will be exempt from fringe benefits tax and import tariffs. A number of Victorian and ACT based business grants relating to the COVID-19 pandemic will be non-assessable non-exempt income for tax purposes. Grants will be provided to small and medium-sized businesses to fund energy efficient equipment upgrades. The tax treatment for off-market share buy-backs undertaken by listed public companies will be aligned …
Business tips: Hiring employees for your startup
When setting up your new venture, the people you hire may well become the most important assets in your business. They’re your trusted workforce, the face of your new brand and the people you’ve entrusted with getting your business idea out into the real world. Because of this, it’s vital that you choose the right talent, the right personalities and the right mix of people for your team. Making a mistake with your hiring at such an early stage can really hold you back, so be sure to put some real thought into who you need on the team. Consider …
Time is money: make the most of your time
Are you familiar with the ancient Japanese philosophy of ‘Kaizen’? Kaizen is the principle of continuous improvement that can make a huge difference to the efficiency of any company and is saving some of the world’s most powerful companies millions of dollars a year. Sound good? Here are ways you can embrace Kaizen to improve your business. What’s your waste? – This isn’t just about what’s ending up in the rubbish, it’s also unnecessary movement, overproduction of stock, waste due to mistakes, and time spent waiting. Examine whether the waste is avoidable or could be made more efficient. Get organised! – Create …
Understanding the Basics of Capital Gains Tax
A capital gain (or loss) occurs when an asset is sold. The difference between the purchase price and the sale price is the gain or loss. Capital gains tax (CGT) applies to money you have made from selling an eligible asset. Capital gains tax events occur when an asset is sold, or other triggers arise, such as the loss, theft, or destruction of an asset, or creating contractual or other rights to an asset. Not all assets are subject to CGT. Common exemptions include the main residence or family home, granny flats, cars and motorcycles, personal use assets such as …