We Bring Home an International Award

The PANALITIX conference is a premier annual even where accountants from across the globe converge to learn on accounting best practice from industry influencers, thought leaders, technology and solution providers as well as international outstanding accounting firms.

Directors, Amanda Wilkens and Krystine Canny-Smith and Manager Helen Yau travelled across the globe to San Diego in November to take part in the conference.  Not only bringing back extra suitcases and excess baggage, they also managed to bring home the Best in Team Development Annual Award for 2018 from 12 awards.

The ‘Best in Team Development’ category aims to reward those who strive to create an amiable work environment for their team, while consequently providing continuous team development and engagement, resulting in business growth.

http://atthepac.com/thepac-awards/

How To Set New Year Resolutions and Stick To Them

So 1st January you have your list of resolutions and you are completely committed… 2nd January you are distracted with ‘life’ and by 7th January they are in the ‘too hard, stinks of effort’ basket if you haven’t forgotten about them already.

Well this year is going to be different and this is how;

1. Think of the top 3 things you want to change in your life – business or personal.  Any more than this and it gets too complicated and overwhelming and this is where the failure rate creeps in.

2. Think about the length of time you need to achieve each goal and diarise the date that they each need to be completed by. Be realistic here but it must be within the year.

3. Contact the people or business that will help you achieve your 3 goals.  If it is getting your Will done, call your lawyer and make the appointment.  If it is getting fit, call a Personal trainer.  If it is starting a new business or expanding, call your Accountant.  If it is making more time to see your parents or friends get on the phone now and just do it!

4. Decide on the reward you will give yourself when these are completed.

It is likely that you can’t do all this alone so don’t be afraid to delegate to the experts who can help you.

Business goals are no different to personal goals in terms of the way you should ‘attack’ them.  You must be methodical and committed otherwise you are wasting your time, money and that of those that are prepared to help you.

We have many clients who say at the beginning of the year that they want to ‘increase their income’ or ‘decrease their costs’.  These are sweeping statements and we can help you do this, but first we will help you determine what the figure is and what and how they can be achieved.  It takes time and thought to plan this.

 

In 2019 we will be holding our popular ‘One Day Plan sessions’ each month commencing in March in our new premises at the Federal Mill.

These whole day sessions are designed to establish what your goals are and we work with you to determine the path you will take to achieve them.  So it doesn’t just have to be at New Year that you can make resolutions!

The dates for these sessions will be released in our February Newsletter and are open to existing clients or new.

 

Amanda Wilkens – Director

B.Comm CPA

Making Sure Your Small Business Doesn’t Break the Bank these Holidays

If you are like most small businesses, you may find Christmas and January the hardest time of year for cash flow!

Tradies find there is no income as building ceases and materials that haven’t already been received aren’t available until February.  This effects not only those directly in the building trade, but also concreters, plasterers, glaziers and everyone who supports the building trade.

For small businesses like ours, who support other small businesses, we find our clients close over the New Year and January.  It’s not just accountants though who are effected by this, it’s commercial cleaners, security firms, lawyers and all whose services support small businesses.

And if you support the education sector, then you can look forward to closing shop for around six weeks!  Small businesses that run schools (sport, art, dancing and music schools come to mind) or support education (cleaning, security or education providers) can be confident there won’t be much hitting their bank account in January!

Yes, things get hard when cash flow is tight, but there are a few simple things you can do to help manage it.  Remember that forewarned is forearmed!

  1. Talk to your clients/customers and let them know you need them to pay before Christmas. If you are able to reduce your outstanding debtors and get this money in the bank, it will help cover the Christmas wages and also January when receipts are low.  Ideally, all your customers should finalise all accounts that are over 30 days before Christmas.  This will make an enormous difference to your cash flow.
  2. If possible, invoice clients in advance.  A very clever client of ours (who shall remain nameless and who knows exactly what work will be provided in January), offered her customers the opportunity to pay in advance.  If you operate a larger business, it may be convenient to pay January in advance to your suppliers.  Then you won’t have to worry about bills over the holiday period.  If some of your customers fall in this category, consider invoicing in advance.
  3. Speak to your bank about an overdraft.  Although we generally like to avoid overdrafts and minimise borrowing, there are times each year when you may need extra help to meet the bills.  If you can get approval for an overdraft this is a good safety net.
  4. Last, but not least, put off paying any creditors you can.  Naturally it feels bad putting off paying our suppliers.  However, if we contact them in advance and let them know how much we will be paying and when they are usually happy to accommodate.  We all know from our businesses, that if we know when someone is paying and how much they are paying, we feel more comfortable than if we don’t hear from them or they avoid our calls.

Don’t forget that the superannuation for your employees is due before 28th January 2019, so make sure you have enough in your account to cover that.  Your BAS will generally be due before 25th February 2019 (unless you are a monthly BAS lodger), so thankfully cash flow should return to normal by then.

In the meantime, if you need any help with cash flow or want any information to help you budget over Christmas and January, please don’t hesitate to contact our Accounting team.

 

Krys Canny-Smith

Director – CPA, BComm

Fairwork Announces New Flexible Working Arrangements

Have you heard of the flexible working arrangements that have now become law in Australia?

Flexible working arrangements may allow an employee to make arrangements with their employer to have work conditions that better suit their needs.  This may allow the employee to have a better work/life balance and can even help the employer improve productivity and efficiency in the workplace.

The employee and employer can negotiate the flexibility of either working hours and where the work is performed, for example, at home.

There are 2 formal ways employers and employees can make their workplace more flexible:

  • Flexible working arrangements – certain employees have the right to request flexible working arrangements,
  • Individual flexibility arrangements – employers and employees can negotiate to change how certain terms in an award, enterprise agreement or other registered agreement apply to them.

 

Flexible working arrangements are only available to certain employees.  The must have worked with the same employer for at least 12 months, and meet one of the following criteria:

  • Are a parent or are responsible for the care of a child who is school age or younger,
  • Are a carer,
  • Have a disability,
  • Are 55 years of age or older,
  • Are experiencing family or domestic violence, or
  • Provide care or support to a member of their household or immediate family who require care and support because of family or domestic violence.

 

The request for flexible working arrangements must be in writing, explain what changes are being requested and explain the reasons for the request.

Employers can only refuse a request for flexible working arrangements on reasonable business grounds.  These may include the following:

  • The arrangement would be too costly,
  • Other employees’ working conditions can’t be changed to accommodate the request,
  • It would result in a significant loss to productivity or have a negative impact on the business.

 

For more information on flexible working arrangements and individual flexibility arrangements, visit the Fairwork website, via the link https://www.fairwork.gov.au/employee-entitlements/flexibility-in-the-workplace

 

Danny Grigg – Senior Accountant

B.Comm, CA

5 steps to help you understand if your business if performing

It is important to understand if your business is actually profitable or not.  It is easy to be trapped into thinking you are making money whilst there are lots of transactions both in and out and you get caught up in the day to day operations of your small business.

Visibility is one of the keys to managing profitability and making sure that your business growth is sustainable.  What I mean by that is, that it is easy as a small business owner to lose track of the true performance as the business grows and activity increases.

  1. You must maintain good and accurate records of your daily transactions.  It doesn’t matter if these are recorded manually or by a software package, it is essential that you understand what you are looking at.  If your profits vary from say month to month, you should be able to spot the reason and have clarity around how you are performing and why.  Properly constructed financial reports are a must!
  2. Targets and forecasts are an invaluable tool to measure your performance against.  Preparing a budget for both income and expenditure and then comparing actual transactions against the budgeted figures will give you a guide on how you are travelling and will make any ’overspending’ or any unexpected costs standout.
  3. You should know and understand how each product line or service is performing.  Don’t let the high performing areas of your business cover up the under performers.
  4. It is important to manage working capital.  If your business is not generating enough profit it will run out of cash.
  5. Many small businesses have good growth opportunities and it takes skill to manage this.  Having a clear financial plan will help guide you and ensure that you are not making economic commitments that can’t be supported.

If you would like to discuss how to set up your financial reporting or understand the information contained in financial statements, budgets or plans we would be happy to help.

Should you require further information, please get in touch with our team.

 

Amanda Wilkens – Director

B.Comm CPA