Blog

Disaster Recovery and Business Continuity Planning

Australia’s summer brings the promise of warmth and sunshine and the potential for natural disasters such as bushfires, storms, and extreme heatwaves. For small businesses, being prepared for these challenges is crucial to ensuring continuity of operations and safeguarding against potential risks.

A Business Continuity and Disaster Risk Management Plan outlines key strategies tailored for small businesses in Australia to navigate the uncertainties of the summer season.

Risk Analysis: Identifying and Assessing Threats

The first step in developing a comprehensive plan is to conduct a thorough risk analysis. Small businesses should consider the threats they face during the summer, such as bushfires, storms, power outages, and extreme heat.

Each potential risk should be evaluated based on its probability of occurrence, potential impact on the business, and the resources required for recovery.

For instance, a small retail business may identify the risk of a power outage, which could lead to the spoilage of perishable goods and financial losses.

Prioritising Risks and Developing Preventive Measures

Once risks are identified, they must be prioritised based on their likelihood and potential impact. For example, in a region prone to bushfires, the risk of this natural disaster may be higher than that of a storm.

Therefore, preventive measures such as maintaining a cleared perimeter around the business, installing fire-resistant materials, and having a well-defined evacuation plan should be prioritised.

Considering the possibility of power outages during heatwaves, businesses might invest in backup power sources like generators, and establish protocols for regular equipment checks.

Additionally, implementing measures such as fire-resistant roofing and secure storage for essential documents can significantly reduce the impact of potential disasters.

Budgeting for Disaster Preparedness

Understanding that preventative measures are an investment in the business’s future, budgeting for disaster preparedness is crucial. Small businesses should allocate funds for equipment such as fire extinguishers, backup generators, and protective infrastructure. Insurance coverage tailored to the specific risks faced, such as coverage for bushfire damage or business interruption insurance, should also be considered.

Dollars spent in prevention are worth more than dollars spent in recovery. Allocating resources upfront to minimise risks can save businesses from substantial financial losses and potential closure in the aftermath of a disaster.

Communication and Education

Ensuring that employees are well-informed and educated about disaster preparedness is vital. Conducting regular training sessions on evacuation procedures, fire safety, and the use of emergency equipment can make a significant difference during critical situations.

Small businesses should establish clear communication channels to keep employees informed about potential risks and the actions they need to take.

Additionally, maintaining open communication with local emergency services in bushfire-prone areas can provide valuable insights and support in times of crisis. Being part of local community networks and staying informed about weather forecasts and potential hazards contributes to a proactive approach to disaster management.

Developing a Detailed Recovery Plan

In the event of a disaster, having a detailed recovery plan is essential for small businesses to resume operations swiftly. This plan should outline specific roles and responsibilities within a designated recovery team. For instance, designating individuals responsible for equipment checks, data backup, and coordination with emergency services ensures a coordinated and efficient response.

Defining the sequence of actions during recovery, from assessing the damage to implementing repairs and restoring essential services, is critical.

The recovery plan should include provisions for data recovery, ensuring that vital business information is backed up regularly and stored securely at offsite locations.

Regular Testing and Evaluation

A robust plan is only effective if it has been tested and evaluated regularly. Small businesses should conduct simulated drills to assess the readiness of their teams and the efficacy of their recovery procedures. This testing helps identify any gaps or weaknesses in the plan, allowing for adjustments and improvements.

Recording test results and updating the plan accordingly ensures the business continuously improves its disaster preparedness. Regular reviews should also consider changes in the business environment, technology, and potential new risks that may emerge.

Adaptation to Changing Circumstances

Much like the climate, the Australian business landscape is dynamic, and small businesses must adapt to changing circumstances. As technology evolves, businesses should incorporate new tools and systems into their disaster preparedness strategies. Cloud computing, for example, provides an opportunity for secure data storage and accessibility, reducing the risk of data loss during disasters.

New threats may emerge, necessitating updates to the disaster risk management plan. Whether it’s a cybersecurity threat or an environmental risk, small businesses should stay informed and adjust their plans accordingly. The plan should be a living document, evolving with the business and the external environment.

A Resilient Future for Small Businesses

Australian small businesses facing the challenges of the summer season can navigate these uncertainties with a well-crafted Business Continuity and Disaster Risk Management Plan. Businesses can enhance their resilience by conducting a thorough risk analysis, prioritising preventive measures, budgeting for preparedness, fostering communication and education, and developing a detailed recovery plan.

Regular testing, evaluation, and adaptation to changing circumstances ensure the plan remains practical and relevant. By investing in disaster preparedness, small businesses protect their assets and contribute to the community’s overall resilience.

Why not consider having a discussion with your Professional Bookkeeper about assisting you in designing and implementing a Business Continuity and Disaster Risk Plan?

It is coming to that time of year again where Christmas is around the corner and the New Year follows shortly thereafter. While it is commonly a time for celebration and an annual vacation, it can be a complex time for your Bookkeeper.

The complexity comes when working with varying awards or working conditions and when there is a mix of people going on leave, some remaining at work, some that have no leave, and those that want to work but cannot.

What is a Shutdown?

According to the Fair Work Ombudsman, a ‘shutdown’ or ‘close down’ is when a business temporarily closes during a specific period. The reasons may be that it is not viable for the business to operate during this period because it may be a quiet time, or many staff are away on leave.

A shutdown is not the same as a stand-down. Reasons for stand-down are when employees cannot be usefully employed due to various circumstances, including stoppage of work for reasons for which the employer cannot reasonably be held responsible.

Understand the Award

Whilst your Bookkeeper is already across the relevant awards for the employees, it is helpful for Business Owners to understand the specific conditions that apply to a shutdown, such as during the Christmas break. The conditions can vary for each award, industry and state. This will impact on leave entitlements and other contributing factors.

Should the employees be covered by a registered agreement, then check the terms that relate to a shutdown and/or the Christmas break. To find a registered agreement, go to the Fair Work Ombudsman website.

Shutdown Payments

Many awards were updated in May 2023 regarding rules on taking annual leave during a shutdown.

The new rules outlined the following:

• Employers may require employees to take paid annual leave during a temporary shutdown.
• Employers must provide at least 28 days written notice of the temporary shutdown period to all impacted employees.
• The requirement to take annual leave must be reasonable.
• The notice period can be reduced through an agreement between the employer and the majority of impacted employees.

An employee who doesn’t have enough paid annual leave to cover the whole period can form an agreement with their employer in writing for other options for the days not covered, such as:

• Using accrued time off.
• Annual leave in advance.
• Leave without pay.

All full-time and part-time employees must be paid during this period. It is to be treated as leave. Casuals are not paid during this time, given that no work is undertaken. Depending on the type of Award or Agreement, it may or may not outline if an employee can be advised that they “must take leave” during the shutdown. The Award might indicate that the employer may request the employee take leave.

When nothing is stated in the Award or the Agreement, then the employee cannot be forced to use their leave or be forced to take unpaid leave. Typically, you can negotiate a favourable arrangement for both parties, such as partial paid and unpaid leave. It is imperative that all terms and conditions relating to the employee’s contract are adhered to during the shutdown.

Refer to the relevant award or agreement in the event that there is not enough leave accrued to cover the shutdown period. Some awards state that the employee will receive unpaid leave during the period, whereas others can take paid leave in advance. If the employee does not agree to take unpaid leave or leave in advance, the employee is entitled to be paid their usual wages.

Public Holidays

When public holidays fall during an employee’s leave, these are to be treated as public holidays and not as annual leave – it is treated as though they would have worked that day should they not have been on leave. The public holiday pay should not affect their leave accrual and be paid as another working day. The employee will be paid for any public holidays during the shutdown period that fall on days they would normally work.

An example of what can occur:

Mary is a full-time employee who has requested leave for the duration of 7 days. This includes Anzac Day, a public holiday that falls on a Monday. Because Mary is a full-time employee, she would need to be paid for Anzac Day. This means that Mary is only taking 6 days of annual leave, not 7.

When employees take sick leave on either side of a public holiday, they are still entitled to be paid for the public holiday as though they would have been at work that day. The usual sick leave process applies unless there is any evidence that demonstrates otherwise.

An exception would be when the employee has been rostered to work on a public holiday, which is not a day they would usually work. If they were to call in sick, the employee would not be paid for that day. Additionally, no payment will be made for the public holiday if the employee is on unpaid leave.

Working on Public Holidays

All employees receive their base pay for hours worked on a public holiday. The varying entitlements are included in the Awards or Agreements for every employee, including how public holidays will impact the employee’s pay.

Some of the entitlements that need to be considered:

• Additional pay, i.e. public holiday penalty rates.
• Extra day off or annual leave.
• Minimum shift lengths on public holidays (e.g. 4 hours).
• Any agreements made to substitute another day for the public holiday.

Employees cannot be forced to work on a public holiday. However, an employer can make this request if it is reasonable to the type of employment. Equally, the employee may refuse to do so when the refusal is based on reasonable grounds.

To understand what is deemed ‘reasonable’:

• Circumstances for the employee which are personal, e.g. family responsibilities.
• The amount of pay and whether there is any increase, e.g. penalty rates.
• The type of work undertaken as well as the needs of the business.
• Whether the employee’s agreement entails working on public holidays.
• The employment status of the employee – full-time, part-time, casual or shift worker.
• The amount of notice provided to either party.

The collective circumstances of the employee need to be considered prior to requesting they work on a public holiday.

Not Working on Public Holidays

With the exception of casual employees, employees who would normally work on the specific day that the public holiday has occurred are to be paid their usual base rate in conjunction with their ordinary hours that they would have worked.

The base rate does not include:

• Penalty rates.
• Loadings.
• Overtime.
• Monetary allowances.
• Bonuses or any incentive-based payments.

Please note that it is unacceptable to change an employee’s day of work to avoid making this payment.

An example of this would be:

Steven is a part-time employee who works from Tuesdays to Thursdays. This year Anzac Day fell on a Monday. Because Steven does not typically work on Mondays, he will not be paid for this holiday.

Housekeeping

• Notify all employees of your intention as a Business Owner to shutdown, and the planned shutdown dates (minimum 4 weeks’ notice).
• Ensure appropriate forms and information are received from the employees to confirm days on leave, and the confirmed intention of each employee.
• Request that your Bookkeeper calculate days each employee will not be present at work and is entitled to leave.
• Note how many public holidays there are during the shutdown period.
• Be across any employees working during the shutdown period or on a public holiday, including any relevant penalty rates or changes to the rate of pay for any employee.
• Confirm if leave is to be paid during a normal pay cycle, before Christmas, or when the shutdown is to occur.
• Is there a pay run during the shutdown, and if so, what are the implications (if any)?
• Give your Bookkeeper enough time to prepare the pay run, as often, in preparation for an annual shutdown, processing the pay run will take longer than usual.

How can business automation streamline your business? Business automation uses technology to streamline and simplify all the repetitive manual tasks, processes and workflows that are part of the everyday running of your business.

Instead of spending hours of business time doing everything manually, automated systems can take on most of the heavy lifting. You can automate the data-entry of your bookkeeping, the sending of recurring invoices or the coding of transactions when doing your bank reconciliation – basically, any task that’s repetitive, rule-based and taking up your time.

Automation makes your processes faster, more accurate and more efficient. This frees up your time to focus on other important strategic and customer-facing tasks. It also means you can get more work done in less time, making the business more productive and profitable.

How does business automation affect your business?

Smart use of automation can give your small business a major boost. Instead of having to hire more people, you can grow the business and significantly reduce the admin workload for your existing human team. It’s the easiest way to set the foundations for scaling up the company.

By automating key areas of your operation, you can:

• Streamline your workflows – business automation optimises your processes by automating tasks like data entry, payment collection and approval workflows. This reduces the manual effort that’s involved and boosts your operational efficiency.
• Improve your process accuracy – automation cuts down on human errors by applying rules consistently and precisely. This means your financial calculations are more accurate, data is of a higher quality and the company has better compliance standards.
• Save time and resources – all those tedious, repetitive manual tasks are now automated. This frees up valuable time for you and your team to focus on strategic activities, innovation and working more closely with your customers.
• Become more cost-efficient – automation cuts back the labour costs that usually go hand-in-hand with manual tasks. You’re more productive, your operational costs are reduced and you don’t need any additional staff to grow the business.
• Scale your business with ease – as your small business expands, automated systems are the special sauce that helps you scale up as quickly as possible. You can effortlessly meet the increased workload, grow your systems and stay agile and adaptable – two of the key skills for any ambitious business that’s looking for fast growth.

How can our firm help you with business automation?

Working automation into your business strategy is the fastest way to achieve your key goals.

With your main tasks and processes automated, you have a sleek, systemised business to drive your growth. And we’re always here to help you maximise this use of automation. We’ll help you review your operations to look for the automation opportunities – and can suggest the most effective software automation tools to add into your tech stack.

If you’d like to know more about the benefits of automation, we’ll be happy to explain.

Understanding and Choosing the Right Method for a Business

Pay As You Go Instalments or PAYG Instalments are implemented by the Australian Taxation Office (ATO) to help businesses and individuals meet their income tax obligations throughout the financial year. It is particularly relevant for businesses that expect to have a tax liability at the end of the financial year. PAYG Instalments require businesses to make regular payments toward their expected tax liability, which are credited against their annual income tax assessment.

There are two primary methods to calculate and pay PAYG Instalments:

• Instalment Amount: Under this method, the ATO provides an estimate of your expected tax liability based on your previous year’s income and tax return. Businesses then make regular, pre-determined payments throughout the financial year, generally on a quarterly basis. The ATO’s estimate is designed to align with your expected income, ensuring your payments are proportional to your earnings.
• Instalment Rate: This method allows businesses to calculate their own PAYG Instalments based on their actual income and business activity. You are required to estimate your expected income for the current financial year and apply the applicable instalment rate, which can vary based on your business type and circumstances. Your payments will then fluctuate with your actual income, ensuring a more precise contribution to your annual tax liability.

Choosing the most suitable method for your business depends on various factors:

• Income Stability: If income is relatively stable and consistent from year to year, the Instalment Amount method may be more convenient, as it simplifies payment obligations.
• Income Variability: For businesses with fluctuating incomes, the Instalment Rate method offers flexibility by allowing adjustment to payments in accordance with actual earnings.
• Accuracy: If a business can make reasonably accurate income projections, the Instalment Rate method may help avoid overpaying or underpaying tax.

From the ATO

Case study 1: Kelly the DJ

Kelly is a DJ, working at festivals from November to January. She chooses to use the instalment rate method as it suits her seasonal business income.

Using the rate method means she needs to work out her business income each period. It helps her manage cash flow because the amounts she pays will vary in line with her income.

When Kelly receives her BAS or instalment notice, she calculates the instalment based on her income for that period, multiplied by the rate provided.

Case Study 2: David the plumber

David is a plumber with a regular monthly business income, so he chooses the instalment amount method. He won’t need to work out his business income each period to use this method.

David pays the instalment shown on his BAS. The amount is calculated from the information in his last lodged tax return.

Source: ATO – Which PAYG instalment method best suits your needs?

The BAS Agent’s Role

A BAS Agent is permitted to make the changes on the BAS – to have the BAS calculate the correct PAYGI based on the information – however, it is not the permitted role of a BAS agent (nor any contractor who is not a Tax Agent) to advise on what a new PAYGI rate should be.

A BAS Agent needs to receive instructions from the correctly authorised person within a business (or the business’s Tax Agent) regarding the new PAYGI rate or outcome. The BAS Agent can then amend the rate on the BAS.

The Tax Agent’s Role

The revision of the PAYGI rate or amounts is the realm of the Tax Agent as it requires the interpretation and application of income tax laws to the business circumstances.

Running a busy and successful business means you often don’t have the time to step back and work ON the business. This can be a challenge if your aim is to grow and scale the company.

As experienced professional business advisers, we know the value of taking the time to ask yourself some pertinent questions. Holding yourself and the business to account is something we can help with. And there’s never a bad time to pose a few questions and gauge where you’re at with your planning, strategy, financial management and personal goals as an entrepreneur.

We’ve pulled together 10 hot questions to ask yourself as a business owner.

1. Can you explain why a customer should choose your brand over another?

Knowing your value to a customer is vital if you’re going to market your offering in the most effective way. Think about why your brand stands out in the marketplace, and what opportunities and threats exist. This is the fastest way to tailor your brand to meet customer expectations.

We can help you by running a SWOT-based analysis of your business.

2. How happy is your workforce?

Your people are such a vital asset, but they won’t work well if they’re dissatisfied and disengaged from your business values. Ask yourself, are your employees motivated and engaged by your mission? Is there anything you can do to boost this engagement?

We can review your people strategy and the staff benefits you offer to your employees.

3. Are you meeting your cashflow goals?

Are there specific costs or inefficiencies that are holding you back from achieving a positive cashflow position? Ask yourself if your financial management is up to scratch. Identify your failings and tighten up your cash process.

We can review your cash management and look for efficiencies and cost-saving opportunities.

4. What keeps you awake at night?

It’s a stressful role being the boss, and there’s likely to be a lot playing on your mind. Consider whether there are any recurring business issues that are holding you back, or unexpected pitfalls that have appeared along the course of the business journey.

We can offer you seasoned advice whatever the issue, with resolutions to ease your worries.

5. Are you embracing everything that tech and AI has to offer?

Technology is moving fast with AI solutions and digital systems now an integral part of many business models. But are you doing enough to bring your business into the digital age? Are there tasks could you automate, or processes you could streamline?

We can suggest a suite of apps, software tools and digital solutions to boost your business.

6. Is growth part of your business strategy?

Not all businesses are focused on growth, but outlining your key goals around growth is an essential part of your business strategy. Ask yourself whether you want to scale at speed, or grow organically. Or whether you’re happy to be a boutique business that keeps things small.

We’ll help you define your growth goals and build a strategy that aims for success.

7. Do you have the numbers you need at your fingertips?

So much of what you do as a business is driven by data. But are you getting the overview you need of your important business metrics and key financial numbers? Think about where you need detailed data and metrics, and how this could put you in better control of the company.

We can help you expand your reporting and management information, so you have a better eye on performance, spending, cashflow and sales targets etc.

8. Have you identified your ideal customer?

Identifying your ideal customer is something every startup and new business should do. But when was the last time you updated your ideal customer outline? Think about who you’re selling to, how this audience has evolved and whether they are still the right customer to target.

We can run detailed customer profiles to help you pinpoint the best customers to target.

9. Have you thought about where your business will be in five years?

When the business is busy, the temptation is to focus on the now and to put your energy into fighting the most pressing fires. But without a forward-looking focus, you can lack direction. Ask yourself where you want to be in five years and how you plan to achieve these goals.

We’ll help you create a detailed five-year plan, to give your journey more impetus and direction.

10. Are you planning for your own financial future?

You obviously spend a lot of your time thinking about your business – but how much time have you spent considering your personal financial future? Think about your life goals and how you plan to fund them, and where this money is likely to come from.

We can advise you on wealth planning, tax planning and the advantages of good all-year-round financial management.

Talk to us about running a health check for your business

If these questions have got you thinking about your business efficiency and growth plans, that’s a good thing. If you’d like to take this process further, we’d advise running a detailed health check for your business and your personal finances.

Book a meeting with us to talk through your goals, aspirations, challenges and strategy, so we can help you take the next step in your journey to entrepreneurial success.

 

Economic uncertainty is an ongoing worry for any business owner.

You can control your own financial management, but you don’t have any direct control over the wider macro-economy. And in the first few years of the 2020s, there have certainly been plenty of tricky ups and downs for your business to navigate.

Current economic uncertainty stems from a number of factors, including:

• Fluctuating markets
• Geopolitical tensions
• Pandemic recovery
• The impact of climate change.

This unpredictability poses significant challenges for sustained growth and stability – but there are simple steps you can take to react to these challenges.

Simple strategies for overcoming the challenges of economic uncertainty

Good financial management is the key to riding any period of economic uncertainty. When sales, revenues, supplier prices and operational costs are all highly dynamic, it’s good to know that your business has cash in the bank and a solid financial strategy to stick to.

But how do you get tighter control over your business finances? And what are the main areas to focus on, track and manage as a business owner or financial director (FD)?

Here are five straightforward ways to tackle economic uncertainty:

• Manage your cashflow effectively – cashflow management is the process of tracking your cash inflows and outflows, identifying potential problems and being proactive about taking action. It’s helped by running regular cashflow forecasts and sticking to budgets.
• Carry out spend management – spend management involves tracking your expenses and identifying areas where you can cut costs. You do this by switching to more cost effective suppliers, cutting back unnecessary expenses and having tighter approval processes.
• Negotiate better terms and prices with suppliers – negotiation can help you save money on your raw materials, labour and other important costs. You can also negotiate better payment and credit terms by building trusted relationships with your suppliers.
• Embrace AI automation to cut costs – artificial intelligence (AI) tools are a great way to automate tasks, such as customer service, billing and inventory management. This frees up time for strategic activities and saves you money on labour costs.
• Diversify into new products or markets – diversification helps you reduce your dependence on a single product or market, making your business more resilient to economic downturns. It’s important to choose products or markets that are complementary to your existing business, and that have good growth potential.

Talk to us about strengthening your financial management

With the world in such an unstable state, it’s always difficult to know exactly what lies around the corner for your business. But it’s safe to say that with a robust and agile financial strategy, you’re in a better position to flex your revenue streams and overcome any cashflow pitfalls.

As your adviser, we’ll help you get tighter control over your cashflow, budgeting and financial forecasting – giving you the numbers you need to navigate uncertain times.

What is cashflow?

Cashflow refers to the movement of money into and out of your business over a specific period.

In the most basic terms, cashflow is the process of cash moving out of the business (cash outflows), and cash coming into the business (cash inflows). The ideal scenario is to be in a ‘positive cashflow position’. This means that your inflows outweigh your outflows – i.e. that more cash is coming into the business than is going out.

When you’re cashflow positive, the main benefit is that you have the liquid cash available to fund your daily operations and debt payments etc.

On the flip side, if you’re in a negative cashflow position, this can be a red flag that the business is facing some financial challenges – and that some serious cost-cutting and/or revenue generation is needed.

How does cashflow affect your business?

Not having enough liquid cash is one of the biggest reasons for companies failing. So it’s absolutely vital that you keep on top of your company’s cashflow position.

Five key cashflow areas to focus on will include:

1. Monitoring your cash inflows and outflows – this means regularly tracking your cash inflows from sales, loans and investments, as well as managing your cash outflows from expenses, purchases and debt repayments.
2. Managing your account receivables and payables – efficiently managing your customer receipts and supplier payments helps smooth out your inflows and outflows – and delivers stable cashflow that’s easier to predict and manage.
3. Getting proactive with your budgeting and forecasting – creating realistic cashflow budgets and forecasts helps you predict your future cash position. By anticipating your future cash needs, you can actively plan for potential shortfalls or surpluses.
4. Being in control of your stock inventory – having excess stock in your warehouse ties up cash. So, it’s a good idea to optimise your inventory levels and to only manufacture/order the items you need on a day-to-day basis.
5. Investing in your cash reserves – with emergency cash reserves in the bank, you know you have the funds to handle unforeseen cashflow issues or sustain your operations during lean periods. This makes your whole cashflow position more stable.

How can our firm help you with cashflow management?

Positive cashflow is the beating heart of your business. Working with a good adviser helps you keep that cashflow healthy, stable and driving your key goals as a company.

We’ll help you keep accurate records, track your inflows and outflows and deliver the best possible cashflow position for the business.

Want to know how to beat the most common business challenges? We’ve highlighted five common challenges and the simple ways to overcome them.

Founding, building and growing your own small business is a hugely rewarding experience for many entrepreneurs. But the road ahead isn’t always smooth.

There are common challenges that crop up and ongoing issues that need to be factored into your business plan, your strategy and your own personal thinking.

So, what can you do to beat these challenges and make the journey as frictionless as possible?

5 proactive ways to overcome your business challenges

We’d all love to know what lies around the corner when it comes to the future path of your business. The truth is that every business journey is unique. But there are common challenges that every owner-manager or CEO will be faced with – and being prepared for these hurdles is the best way to leap over them and take each challenge in your stride.

We’ve highlighted five common challenges and the simple ways to overcome them:

• Uncertainty: No-one has a crystal ball to know exactly what’s coming around the corner. But there are ways to be prepared for some unknown circumstances. You can’t fully predict the main external threats like government policy, economic conditions or freak weather conditions. But you CAN use forecasting and scenario-planning tools to build up contingency plans so you have a Plan A, Plan B and even a Plan C. With forecasts of your business data, finances and industry trends, you can be ready to react, pivot and take positive action.
• Competition: Small businesses often face stiff competition from larger, more established companies. To stay ahead of the curve, it’s important to be nimble and agile. It’s also vital to find your niche and to know precisely why your customers value your offering. By ploughing a unique furrow and keeping your customers happy, you can give yourself an edge over larger, slower-moving corporate-size competitors.
• Access to capital: It can be a struggle to secure funding as a startup, particularly if you have limited financial resources or a poor credit history. Having a detailed funding strategy is a crucial way to overcome this problem. Keep your finances in order and make sure you have in-depth financial reports to show banks, lenders and investors. It’s also helpful to focus on paying suppliers on time, keeping debt levels under control and ensuring your cashflow is in a positive position. These are all excellent ways to improve your business credit rating and show you’re a stable, risk-free prospect for lenders.
• Hiring and retaining employees: Attracting and retaining talented employees is difficult, especially during the ongoing talent shortage. Offering competitive salaries or benefits packages can be one way to attract people. But it’s also important to think about your brand reputation, your sustainability credentials and your CSR policy – all things that Millenial and Gen Z workers value alongside decent pay and benefits packages. Employees want to be proud of where they work, so make your company a progressive, satisfying and rewarding place to work.
• Keeping up with technology: Business technology is evolving at a rapid pace. It can be daunting keeping up with all the available apps, tools and software solutions that are aimed at your business. The trick is to be informed but selective about the apps you use. Start with the operational and financial needs of the business and look for apps that can automate, improve efficiency or provide improved data and management information. Talk to other business owners and your profressional network to find out what the essential apps are in your industry. And do your research and homework before you choose any software solution to add to your app stack.

Talk to us about being an agile small business

Looking to the horizon for the upcoming pitfalls is essential as an ambitious and informed business owner. As your adviser, we can help you generate the most informative management information, to keep you agile and ready for what lies around the corner.

We’re also on hand to discuss your ongoing strategy, how to react to upcoming risks and the best ways to access capital and manage your company’s finances.

Arrange a meeting and let’s see what the future may bring for your business.

In July 2023, the superannuation guarantee statutory rate will rise to 11%. Annually, the rate is increasing by 0.5% until July 2025 when it will reach the legislated 12%.

• Review your current superannuation costs for all employees, both hourly and salaried.
• Review any salary packaging arrangements. Is the agreement inclusive of superannuation or is super paid on top of the agreed salary?
• For salary packages inclusive of super, you will need to check the contract’s wording to make sure you apply the changes correctly. This change may also impact annualised salary arrangements.
• Calculate your revised payroll costs from July, showing the current wages and superannuation expense compared to the new rate from July. Highlight the increased amount per month or quarter, so you know precisely what the impact will be.
• Discuss the super rate increase with your employees now. Let them know that there will be an increase of 0.5% each year from now until July 2025 when the statutory rate will reach 12% and remain there.
• Remember – short payment or late payment of super can incur hefty penalties – plan now for higher payroll expenses from July, so you don’t get caught short.

If you’d like help reviewing payroll costs and employee agreements, talk to us now, and we’ll make sure you have accurate reports to make planning for the rate rise easy.

Getting organised now means that you’ll be well prepared for your business’s increased costs when the first payment is due later this year.