Blog

Single Touch Payroll

Single Touch Payroll The introduction of Single Touch Payroll (STP) has given government agencies the ability to share data in real-time with other government agencies to help them deliver government services to the Australian community. As part of the data-matching program, there is a STP data-sharing arrangement with Services Australia to help them administer Australia’s welfare system. This means that people who are on an income support payment from Services Australia and need to report their employment income fortnightly to Centrelink will now see their employer details are pre-filled. If you have any queries about Single Touch Payroll and how it effects your business and staff give the team at Journey2 a call now!

12 STEPS TO SETTING UP AN EFFECTIVE MANAGEMENT INFORMATION SYSTEM FOR YOUR BUSINESS

Set aside the necessary time required to do the regular reporting MONTHLY or QUARTERLY. Make it a priority! At the very latest get the regular reports completed by the 10th of the following month so the information they provide are timely and not out of date. Focus on current issues and future plans. Examine and fix any weaknesses or anomalies Understand your key business drivers and the resulting impact on the numbers. If necessary, get us, as your accountant and business advisor, to walk you through all the numbers and what they actually mean. Ensure you have the best systems and processes in place, including the latest cloud based financial tech software, systems, plug-ins and updates. Develop benchmarks to empower everyone in the organisation. Seek expert advice. A strong relationship with us, as your accountant and business advisor, can help ensure better financial reporting and earlier awareness of opportunities and threats. Utilise cloud storage. This will allow people to easily share and access documents – as well as work on them concurrently from different locations. This minimises the risk of data loss and inaccuracies occurring because of different versions of documents. Enable appropriate collaboration between all areas and/or departments who contribute financial data, and have security protocols in place to ensure data is always secure. Ensure you have a centralised end point for all data in the reporting chain. Ensure financial records and reporting is owned by someone with full accountability, who is responsible for checking the data and signing off on its accuracy. Utilise big data analytics, which can contribute to more insightful reports by analysing reports and highlight patterns and causes an employee may have missed. Develop benchmarks. This enables everyone in the business to understand what constitutes a strong performance, making it easier to identify underperformers and opportunities for improvement. Above all, a management information system that delivers accurate financial reporting is key to understand your business’ true position and making informed decisions. On the flipside, the dangers of inaccurate financial reporting are extensive – so it pays to do the right thing.  

Navigate your Business out of Covid-19

A framework to help business owners to see their situation through a different lens and move upward. MELTDOWN If you need to have a meltdown, do it. Negative emotions will never go away, only fester. Don’t be ashamed to have a cry and a bit of a panic. ESTABLISH A BETTER VISION OF THE FUTURE. You and your clients have possibly got quite a negative vision of what’s to come. Armageddon, recession, etc. This needs to change. Start to vision the other side. SCENARIO PLANNING. Produce a cash flow forecast for the next 3 months. Imagine the worst scenario in terms of sales, then plan for it. Maybe you get no revenue for the next three months? The reality will be much better, but plan for it anyway. This will be a dip. It won’t last forever CUT BACK. Cut on any costs that are maybe excessive. You need to be careful with this bit. Don’t strip back operations completely, only those that seem excessive. I don’t mean staff here AT ALL if it can be helped. GALVANISE YOUR TEAM. Communicate your better vision of the future. They are on this mission with you. They have probably had the same panics that you’ve had. Explain that you’re going to get through this together. The reason we’re cutting back (in the step above) is to preserve your team BUILD BACK INTO THE FOUNDATIONS. This is where we look at things you may have been neglecting. Systems, processes, getting your pricing right, marketing. Whatever it is you need to do, build back into these key systems. Some of the peripheral things (maybe small jobs on your to-do list), they aren’t important in times like now. Work on the fundamentals. SET UP AS A LEADER. This is your time. If your team are working from home, get them fired up, have daily calls, keep everyone positive. EXPLORE OPPORTUNITIES. What opportunities do you have now to give value to your clients or customers? For your clients, this could be digitisation of your product. It could be new products, new markets. MARKETING. Don’t be aggressive with selling. Start to build relationships. Be there for your community and the clients or customers that you serve. Invest in long term nurturing processes.

One phone call to your bank could save you $$$$Thousands over the coming 12 months and beyond

Have you noticed how low the interest rates are now?! Have you thought about ringing your bank and just letting them know that you were considering changing banks to find a lower interest rate? Inform them that Macquarie Bank is offering a fixed rate of 2.19% for a period of 1 – 5 years and then ask if they can match it or do better? Guaranteed they will drop the interest rate they are currently charging you. Imagine, you did make that phone call, within those 5 – 10 mins you have saved yourself $$$$thousands . You need to realise that your bank will not offer you a lower interest rate unless YOU ASK! Need help to get yourself in a better financial position by taking small actions with huge results, give your team at Journey2 Business & Personal Wealth a call today!

Where do you want your business to be post COVID – 19?

When Covid-19 burst on the scene in early 2020, businesses faced dramatic shifts and the importance of strategic agility became critical. To survive, leaders were encouraged to pivot into new markets by developing new business models. As history has proved, during unprecedented times, it is necessary to prepare for what is next. Visionary leaders like Abraham Lincoln, FDR, Winston Churchill, and Nelson Mandela did not simply react to threats they looked beyond the horizon. They were guided and their people in turn motivated by their vision for a better future. McKinsey research demonstrates companies who pursued big strategic moves persistently through every phase of the economic cycle, increased their odds of outperforming their peers. This is especially urgent during a global crisis. Trend lines have changed, global supply chains are fractured, many of B2B customers have closed, and millions of consumers unemployed. When the pandemic comes to an end the business environment that we operate in will be very different from what it was prior to the crisis. Businesses need to begin preparing for this now. It may be hard to see, however the seeds of the next great growth industries are beginning to take root. Spend time envisioning your future Given the urgent present demands, leaders can be tempted to delegate responsibility of strategic thinking to others. However, it is critical that people who sign off on decisions dedicate time on a weekly basis to explore and envisage where they want their organisation to be when the crisis passes. Interrogate what is likely to change about your customers, markets, and operating environment, and what is not. Focus on what your customers will require, how you will meet their new and evolving demands, along with the resonance of your products and services, and your overall capabilities. Lay out a path from your long-term vision to the mid-term, and from there to tomorrow. Reverse-engineer a series of benchmarks and milestones at regular intervals. This process allows you to drive your business forward and not be overly constrained by the current climate. Take time to listen, and then pivot if necessary It is crucial now more than ever to listen to customers, measure and track your progress, conserve resources, and enhance your ability to change direction, if required. When working toward goals, you must be attentive to feedback, abandon ideas if failed after tested. Remain agile and learn quickly. Continue to envision future actions. Rally the troops and replenish your mind and body The cohesion of your team is critical. Changing environments require your team to adjust and make sacrifices so they need to believe in a better future. Do not underestimate the importance of finding time for simple daily routines that preserve your mental and physical stamina. Fatigue may cloud your judgment and interfere with your ability to process information and remain level-headed. Identify moments when you’ll especially require an energy boost. If you know you have a stressful task ahead, take a walk beforehand. Exercise is a tested way to restore energy, therefore plan workouts into your schedule. Sleep needs to be a priority rather than an afterthought. Try switching off from screens 30 minutes before bed to help you unwind. Encourage your employees to embrace these habits too. Once a crisis ends, everyone is likely to remember how you as the business owner acted during the pandemic. This is the toughest leadership test, but by spending 10-20% of your week focused on your strategy and vision, it will ensure you emerge stronger and more resilient. Imagine gaining peace of mind to seamlessly access these answers and navigate other business challenges as they arise, simply by connecting with empathetic, knowledgeable industry peer leaders and entrepreneurs? We encourage you to leverage your support team at Journey2 and capitalise on our give-and-take dynamic amongst people who have walked the path before. Start a conversation …………

2020/21 Federal Budget

5. Other budget announcements 5.5 Insolvency reforms to support small business The Government will implement certain insolvency reforms, effective from 1 January 2021 (subject to the passing of legislation) to support small business, including the following: The introduction of a new streamlined process to enable eligible incorporated small businesses (broadly, those with liabilities of less than $1 million) in financial distress to restructure their debt. Simplifying the liquidation process for eligible incorporated small businesses (to allow faster and lower-cost liquidations, increasing returns for creditors and employees). Support for the insolvency sector (to ensure it can respond effectively to increased demand and to the needs of small business). Currently, the insolvency system faces a number of challenges. These include an increase in the number of businesses in financial distress due to COVID-19, a ‘one-size-fits-all’ system, and high costs and lengthy processes that can prevent distressed small businesses from engaging with the insolvency system early thereby reducing their opportunity to restructure and survive. Temporary insolvency and bankruptcy protections that were introduced in March 2020 to provide relief for businesses impacted by COVID-19 are due to expire on 31 December 2020 (e.g., under these measures, directors are temporarily relieved from personal liability for trading while insolvent). However, the number of companies being put into external administration is expected to increase significantly, putting additional stress on the system. Therefore, the above proposed reforms will help more businesses to successfully get to the other side of the crisis.

2020/21 Federal Budget

5. Other budget announcements 5.4 Supporting the mental health of Australians in small business – COVID-19 response package The Government will provide $7 million in 2020/21 to support the mental health and financial wellbeing of small businesses impacted by COVID-19, including: $4.3 million to provide free, accessible and tailored support for small business owners by expanding Beyond Blue’s NewAccess program in partnership with the Australian Small Business and Family Enterprise Ombudsman; and $2.2 million to expand a free accredited professional development program that builds the mental health literacy of trusted business advisers so that they can better support small business owners in times of distress, delivered through Deakin University.  

2020/21 Federal Budget

5. Other budget announcements 5.3 Additional funding to address serious and organised crime in the tax and superannuation system. The Government will provide $15.1 million to the ATO to target serious and organised crime in the tax and superannuation systems. This extends the 2017/18 Budget measure Additional funding for addressing serious and organised crime in the tax system by a further two years to 30 June 2023.

2020/21 Federal Budget

5. Other budget announcements 5.3 Clarifying income tax exemptions for individuals engaged by the IMF and World Bank group. The Government will clarify privileges and immunities, including income tax exemptions, available to Australian individuals performing short term missions on behalf of the International Monetary Fund (‘IMF’) and three institutions of the World Bank Group (‘WBG’). The measure will apply retrospectively from 1 July 2017. This measure will clarify that Australian short-term experts are entitled to an exemption from income tax for their relevant income from the organisations. This aligns Australia’s domestic legislative framework with its international obligations and provides certainty for taxpayers. This outcome is consistent with Australia’s longstanding support for and contributions to the IMF and the WBG.

2020/21 Federal Budget

5. Other budget announcements 5.2 Superannuation reforms The Government will provide $159.6 million over four years from 2020/21 to implement reforms to improve outcomes for superannuation fund members. Currently, structural flaws in the superannuation system mean that unnecessary fees and insurance premiums are paid on multiple accounts, members pay too much in super fees, underperforming products are costing members in lost retirement savings, and there is inadequate transparency on how funds are spending members’ money. From 1 July 2021, the proposed reforms will make the system better for members in four key ways: Your superannuation follows you – An existing superannuation account will be ‘stapled’ to a member to avoid the creation of a new account when that person changes their employment. Empowering members – A new, interactive, online YourSuper comparison tool will help members decide which super product best meets their needs. Holding funds to account for underperformance – MySuper products will be subject to an annual performance test. Funds that underperform will need to inform their members. Funds that fail two consecutive underperformance tests will not be permitted to receive new members unless their performance improves. By 1 July 2022, annual performance tests will be extended to other superannuation products. Increased accountability and transparency – The Government will strengthen obligations on superannuation trustees to ensure their actions are consistent with members’ retirement savings being maximised. For example, trustees will be required to comply with a new duty to act in the best financial interests of members.

To view older posts, please click here. Alternatively, you can view posts in the Archived section above or search for them using the search box at the top of the page.