Small Business

New year resolutions for small businesses

January 23, 2020 By raadmin

Happy new year! As 2020 begins, right now is a good time to reflect on your business’ progress over the last year and plan the year. Don’t forget to make New Year’s resolutions for your business to grow and reach new heights this year. Here are some resolutions that can be helpful for small businesses in 2020:

1, Give your business a financial health check

Many small businesses were hit by cash flow problems last year. To avoid the same fate, take a serious look at your business’ balance sheet and its profit and loss account. Consider whether you have sufficient headroom and is there anything you can do to improve? For example, do you need to spend more time chasing late payments, or could new financing facilities provide an answer?

2, Boost your marketing efforts

Marketing is always an important part of operating a business. Good marketing attracts customers, keep them loyal and encourage them to recommend your service/product to others. In other words, it raises company profits and reputation. If your company hasn’t focused on marketing, then you should do it now.

Customers are important – always do your research to see what they look for in a product/service. Keeping up with trends is also important to market your product/service better.

3, Make your customers happier

This year, why not talk to your customers and see what you can do to make them happier? Happy customers will keep coming back and refer to friends and family members to you. By listening to them and collecting feedback, you will know what you need to do better.

4, Stay updated with tax laws, regulations, and deadlines

Make sure to talk to your accountants to ensure that you are up-to-date with all tax laws and regulations that may affect your business. Ask them for filing deadlines and set up alerts and reminders for the year.

Action plan: Talk to our expert accountants today for advice! Give us a call or book a consultation on 07 3367 0852.

Top 3 small business challenges and how to solve them

November 28, 2019 By raadmin

1, Finding and approaching the right customers

This is the problem that many businesses face. Even big firms still spend a lot of time and energy coming up with strategies and plans to find and attract more customers every day. For small businesses, it might be more difficult considering the scale of operation and tight budgets. Having a great product or service is not enough to let customers find and trust your business. Your team must go out and actively look for potential customers using a variety of strategies.

No matter what your strategy is, it is crucial to consider who your ideal customers are. Mass targeting doesn’t work on a tight budget, so you need to be careful about targeting the right consumer. Get started by crafting buyer personas: what they do, where do they spend time online, what are their buying behaviors, etc.

Here is a persona template for you to get started:

2, Raising brand awareness

Brand awareness is extremely important for every business to grow. It represents how familiar your customers are with your brand and how well they recognize it. Raising brand awareness helps your customers remember your brand better, build trust over time and increase your company’s value. In other words, once your customer is aware of a brand, they start to recognize it, make a purchase, prefer it to other brands, and trust the brand more overtime. This means that they will be likely to make more purchases in the future and recommend the service/product to their friends and families as well.

Here are a few ideas to boost your brand awareness:

Offer freemium: Offering a free basic product/service line and only charging for products at the premium level is a very popular (and effective) strategy for software companies like Hubspot, Typeform or Hootsuite. This gives consumers a free chance to experience the product/service before purchasing, and the company will get free advertising when consumers use it.
Co-marketing: Partnering up with another company can help you get a better reputation and awareness outside of your circle. Unlike co-branding, co-marketing doesn’t involve releasing new products/services and are easier to plan, launch and manage. It provides a win-win situation for both companies to reach a wider market, learn more about customers and earn better attention.

3, Hiring talent

Hiring talented people remains one of the biggest challenges for businesses, according to the Conference Board Annual Survey. Hiring new people is a complex process that requires a lot of time and money. It is easy to just send out a job description, screen applicants, and make a decision. But how do you make sure that the candidate is the right one for the job?

To answer this question, companies can create a candidate persona, which is like the buyer persona described above, but for candidates. This persona should showcase the ideal traits and skills suitable for the job and align with the company culture. Finally, don’t forget to measure the results to better tailor your hiring strategies in the long term.

5 Powerful ways to improve your small business marketing

November 7, 2019 By raadmin

As a small business, we understand how other small businesses struggle with managing a budget for marketing strategies. A small budget doesn’t mean that you can’t get creative and succeed with your marketing campaigns. Our blog is here to guide you through some powerful tactics to utilize your marketing game and not spending too much money.

1, Profile your target market based on certain characteristics

Conducting research about your market is not enough, you need to identify your target audience and classify them into groups based on characteristics. Some common (and effective) ways to segment a market are:

Demographics (Age, gender, income, education, social status, occupation,…)
Geographics (City, country, living area,…)
Psychographics (Lifestyle, personality, attitude, values,…)
Behavioral (Benefits sought, purchase usage, intent, occasion,…)

It is also important to keep in mind that your target market should have a need for your product/ service and be willing to pay for your offer.

2, Create and share content that adds value

By publishing content that brings value to your audience, your brand will attract people and gain more audience overtime. You don’t even need to attempt to sell your products, sharing knowledge and value-added content is enough to give people a reason to follow and listen to the brand. Consider sharing content that is relevant to your business and your followers as well.

3, Level up your Google My Business profile game

You see Google ratings and business profiles everywhere, but did you optimize this yet? Filling out your Google My Business profile now to take a big step in local marketing. Make sure to include important keywords to optimize your SEO. Additionally, putting up some nice photos would improve your credibility.

4, Get listed in online directories

Getting on directories will drive traffic to your site and increase awareness. Depending on your industry and product/service, you will find different online directories that are suitable for your company. Many of them are free or have paid options but the basic one is usually free.

5, Leverage micro-influencer marketing

Micro influencers (those with small reaches) are often cheaper than highly regarded celebrities. Research has shown that these influencers usually communicate and engage with their audience more. In other words, they are perceived as trustworthy and influential among their followers. Working with them can form a strong community around your brand and build better awareness. For instance, you can easily use tools like TRIBE or Scrunch to connect with micro-influencers based on your product and desired audience.

Minimum Wage Increases, What They Mean For You

June 14, 2019 By raadmin

The Minimum Wage Panel on 30 May 2019 handed down its minimum wage decision for 2019.

From the first pay period commencing on or after 1 July 2019, the National Minimum Wage will increase to $740.80 per week, or $19.49 per hour.

What this means for you:

Employers who pay their employees at the National Minimum Wage or Modern Award rates of pay will need to apply the increase in the first full pay period commencing on or after 1 July 2019;

Employers who currently pay above National Minimum Wage or Modern Award rates of pay are not obliged by this decision to increase their rates of pay, but need to ensure their rates remain at least as beneficial, once the increase is applied; and

Employers who pay under enterprise agreements must ensure that the base rates in those agreements remain at least equal to the new minimum Modern Award rates. If you pay any of your employees under annualised salary arrangements you will need to conduct an audit of those annualised salaries against the new Award rates and working patterns to ensure the annual salary compensates for award entitlements.

If you are an employee unsure of the award rates for your line of work, you can check out the award calculator HERE

Need Help?

If you need help with updating your pay systems for these new rates, don’t hesitate to contact our expert accountants!

ATO Waving Penalties For Unpaid Superannuation Payments

March 15, 2019 By raadmin

The ATO will be waiving penalties for the hundreds of businesses who have admitted failures to pay superannuation to their staff after a ‘botched’ amnesty.

An amnesty was rolled out in May of 2018, which offered employers who failed to pay super entitlements stretching back to the 1990s a “clean slate.” Unpaid super is estimated as being worth up to a whopping $6 billion a year in Australia, with the government hoping this initiative would encourage employers to pay their workers super entitlements.

While the policy has been dumped, the amnesty for employers will still run for 12 months. Anyone failing to use this amnesty as a time to declare their past wrongdoings is warned they will face penalties in the future to the sum of half the money owed, on top of the unpaid super.

Employers who have already made claims to the ATO are being treated as though they had voluntarily reported themselves under current rules. This means they must repay unpaid super as well as interest to the employee and an administration fee per employee of $20 per quarter.

To be eligible for the superannuation amnesty, businesses will need to:

Not be subject to an audit of your Superannuation Guarantee (SG) for the relevant periods
Voluntarily disclosed amounts of SG shortfall or late payments that have not been previously disclosed for any period from 1 July 1992 to 31 March 2018
Made the voluntary within the proposed 12-month amnesty period (24 May 2018 to 23 May 2019)

If you are unsure whether you are meeting your superannuation requirements effectively, give us a ring on 07 3367 0852 or email us at mail@raaccountants.com.au

Five Tips To Get Your Business Ready For The New Year

January 24, 2019 By raadmin

1. Make sure you are maximising your use of Xero

The cloud is the place to be in 2019, has your business gone digital? If you haven’t fully integrated the cloud into your business just yet don’t worry, because we are here to help. The benefits from cloud accounting are endless but here’s just a few: scalable, cost-effective and easy to use, no need for software to clog up your computer and no need to worry about huge initial costs as Xero runs off a monthly subscription.

Not only this, but apps have brought a whole new dimension of utility to the Xero platform. Research from Xero has shown businesses which make use of apps grow net profits 30% faster. Apps enable you to combine a specialised set of services into an app stack that works together to streamline your business. Eliminating so many of the hassles commonly associated with the archaic endless list of computer programs you would use in the past. Goodbye dumb license agreements, goodbye constant update waits, hello more time on your hands.

You can read about some of our favourite apps here

2. Automate your business processes

Automating your business processes reduces manual tasks in processes such as forwarding data, extracting information from databases and much more. A good business integrated app stack will not only eliminate human-caused errors but will save you money.

Faster, cheaper and powerful, these apps will not only identify bottlenecks in your business but will eliminate them too.

3. Review your expenses

Has it been a while since you took a good hard look at your supplier costs or your additional spending? It’s time to get on top of your expenses and cut unnecessary costs out of your life. The first step is to examine your quarterly invoices and see if there are any unwanted patterns arising. Shop around and make sure your current supplier is giving you the best deal you can get.

Review the purpose of what you are spending money on and consider if it’s critical to the success of your business. Think about the renewal fees and whether there are loyalty discounts you can access.

Consider making some payments to decrease your debt, whether it be the company credit card or back payments to suppliers. Making payments ahead of interest coming into the picture is an important policy for ensuring you don’t have unnecessary debt.

4. Forecast your cash flow

A well thought out cash flow forecast is helpful for predicting surpluses and deficits in cash flow. This mean your business can make better decisions, as well as prepare for potential business changes or decisions.

There’s three steps to a cash flow forecast:

Estimate your likely sales for each week or month
Estimate when you expect to receive payments
Estimate your likely costs

After you’ve taken these steps, add an opening bank account balance and the revenue, less expenses for each period to calculate your likely cash position.

Once you’ve taken the necessary steps to create your cash flow forecast, make sure you are updating it throughout the year.

5. Come in for a free consult!

If you want to take your business to the next level this year or have been thinking about taking the next step to become a pro at Xero

GIVE US A CALL!

Managing Your Cash Flow Over The Holiday Period

December 14, 2018 By raadmin

December is usually the busiest time of the year for retail and hospitality businesses. But businesses in other sectors often find that their sales slowdown and their customers stop paying them for a few months. So cash flow dries up.

Whether your business is large or small, well-established or in start-up mode, you need to take a planned approach to managing cash flow during the holiday season. Here are few tips for keeping on top of cash flow management during the Christmas/New Year holiday period.

1. Keep Invoicing In The Lead Up To Christmas

Don’t let your business admin slip in the rushed lead-up to Christmas. This is the most important time of the year to stay on top of your invoicing. You may find that many customers will be slow to pay because their businesses are closed over the Christmas period.

2. Set Clear Expectations With Your Customers

Be clear with your customers that you expect them to pay within the pre-arranged credit terms over the Christmas period. Phone regular slow payers a few days before payment is due to confirm that they’ll be paying on time. The phone is always a more effective method than email. If you’re not comfortable having this conversation with your customers, your accountant or bookkeeper may be able to assist.

3. Service Business – Offer A Discount For The “Quiet Time

If your business is usually quiet in January, why not offer your clients a 10% discount if they book you in for January? Why not offer them a 15% discount if they also refer a neighbour or a friend? Set whatever discount amounts work for you. This is the thing: A strategy like this will keep your business busy and some cash coming through during the usually quiet period.

4. Use The Quiet Time To Work On Your Business

If sales are a little slow in the lead-up to Christmas, use the time wisely to hit the ground running int he new year.

The pre-Christmas slow down is a great time to work through the to-do list you’ve been compiling all year.This might include taking a thorough inventory, searching for more suitable lending alternatives, completing a comprehensive competitor analysis or researching the market for new products and suppliers.W

What To Do When You Want To Keep Your Business ‘In The Family’

October 26, 2018 By raadmin

Have you got a family business you love but want to have some peace of mind for when it’s time to step away? You aren’t alone as more and more Australians start their own business, we are hearing about more people worried they will have to sell or close down their business they have worked so hard for.

But this anxiety doesn’t have to plague you, transferring your family business to the next generation can be a very straightforward and hassle-free experience!

Who will take over the business?

This is an important question everyone asks themselves, and there are a few things to keep in mind when considering this. Skills should always be at the top of your list when you rattle through your list of candidates – you may have a great affinity to help out your daughter, but your son’s best friend may be better skilled for the position. Make sure you take the time to find the ideal candidate, hold a panel, a series of interviews, whatever will give you the best insight into the perfect candidate!

What’s the steps for handing over the business?

There are a number of steps if you are transferring to a family member and you will no longer be a part of the business and these may include:

Transfer business name or cancel your business name
Cancel tax registrations such as GST
Lodge all required tax returns
Pay outstanding bills, activity statements etc.
Make GST adjustments on your final activity statements
Transfer any other assets such as domain names or web domain registrations
Transfer business records, customer records and employee records
Cancel your ABN after you have met all of your obligations for lodgement, reporting and payments

Start planning now!

A succession/exit plan is integral to a smooth transition for you and the new business owner. When you develop this plan, remember:

Will you transfer both ownership and management?
Are you going to review the plan regularly?
Are you going to include direct family members in the business? What roles are they going to play?
Is training or mentoring required on your part for your successor?

A terrific guide issued by the Australian Government on what steps are best can be found HERE

How To Stay Safe Against The ATO Crackdown On Declared Income

October 19, 2018 By raadmin

Warning Time

The Australian Taxation Office (ATO) is closing in fast on everyone who doesn’t properly declare their income and pay the correct amount of tax.

As your Tax Accountants, we want to help you be aware of what the ATO is doing and how you can protect yourself.

How Does The ATO Know?

The ATO is linking databases of property sales, car purchases, international plane flights, dividends paid from shares, and sales of shares and investments with the income declared on your Tax Return.

If your Tax Return income doesn’t match with your spending or repayment of loans, then the ATO will probably “red flag” you for a tax audit.

These databases have not been linked before like this, so we’re expecting to see a huge increase in the number of tax audits over the next 12 months.

Business Cash Receipts Not Declared

Many small business owners pocket some of their cash takings each week and don’t declare this in their Tax Returns.

The ATO now has the tools to catch this out

When your business Tax Return is lodged, the ATO compares your profit and other key indicators as a % of your total sales with other businesses in your industry. If your profit % is lower than average, then the ATO may decide to do a tax audit just to see if you’re properly declaring all the income you actually receive, or if the expenses you’ve claimed are actually allowable as tax deductions.

Also, not declaring cash income from your business could result in you getting a much smaller price for the sale of your business. We’ll discuss this in a future article.

What Are We Doing To Help You?

We have 2 keys roles as your tax accountants.

Ensure you pay least amount of tax you legally should.
Assist you to lodge a correct tax return, so if you’re audited by the ATO you can sleep peacefully at night knowing that you’ve done the right thing.

While we don’t like paying tax just like you don’t like paying tax – at the end of the day it simply is a normal part of life and there’s nothing we can do about it except for obeying the laws and lodging a true and correct Tax Return.

If you don’t declare all income you receive and if you claim as expenses things that aren’t properly allowable tax deductions – then if you’re audited and lose you will have to pay back tax PLUS pay large penalties to the ATO.

Is this really worth it?

We’re On Your Side. Talk To Us Today!

Let’s talk frankly. If you’ve been naughty in the past, talk to our expert accounting team about it. There are option we can advise you on to help you and reduce possible fines and penalties.

It’s better for us to help you declare past sins before the ATO finds out and starts their attack on you.

We’ll help you fight the ATO if the occasion is needed. But you need to do the right thing – even if you disagree with the tax laws.

Please – don’t doubt our resolve to help you.

Contact your expert team at RA Business Advisors today on 07 or by email at mail@raaccountants.com.au

We’re your good friends. And we’re here to help you!