small business

How Are You Making Sure Your Mobile Phone Data Is Safe?

November 23, 2018 By raadmin

Recently, the new shiny iPhone XS and XR entered the market.

For all the Apple lovers out there, this might mean being the first to wrap your hands around the irresistibly smooth all-glass design, or finally upgrading your old glitchy iPhone to the new model.

If this is you, I’m guessing you’re focused on the opportunity to start afresh, buy a new case, clear all those apps cluttering your current device, and start playing with its new features. Right?

But have you considered the security aspects?

According to online security software vendor, Norton, the scary reality is that 978 million people in 20 countries were affected by cybercrime in 2017. In New Zealand and Australia, one in four small businesses experienced a cyber-attack or hacking attempt.

“It’s an unfortunate fact that the impact of cybercrime is a reality for all businesses,” Xero Head of Security, Paul Macpherson, said at the recent Xerocon conference in Brisbane. “We continually remind all of our customers – small businesses, accountants and bookkeepers – to take precautions to keep their data safe from hackers.”

Sure, you’ll be eager to try the cool Face ID feature and of course you wouldn’t dream of breaking your shiny new phone. But are you mindful of how you’ll keep its contents safe too?

Obtaining a new phone is the perfect opportunity to get everything set up correctly right from the start. And if you don’t plan to upgrade your mobile phone, there’s no time like the present to make changes.

Are you too relaxed with your data security?

While many of us are looking for convenience of easy-to-find or easy-to-remember passwords, in reality you’re making yourself vulnerable to digital identity theft.

Xero Head of Industry, Matthew Prouse, says “the biggest mistake people make is keep highly confidential information in their phone, such as in ‘Notes’ or disguised as a contact. You’re walking around with a pocket of very sensitive data.”

Prouse recommends that you do not –

· Add passwords and pin codes to the ‘Notes’ app

· Try to disguise passwords, bank account numbers or your tax file number as phone contacts

· Choose obvious passwords (such as your date of birth or cat’s name) that even your kids can work out

· Replicate the same codes everywhere (such as your bank account pin)

· Allow your computer or phone to automatically save passwords

· Hand over old mobile phones to your kids without clearing all sensitive data first

Think about the worst case scenario: your phone gets stolen. For many of us, this doesn’t just mean losing a device. It also means losing passwords. And your digital identity.

Every day, there are reports of email accounts being hacked, phishing emails being sent with the aim of collecting credit card details and bank account numbers, and credentials stolen from one website and then used against other sites to see if username and passwords have been replicated.

Macpherson says over 80% of breaches occur via stolen or weak passwords, with email as the primary method of attack. So it’s highly important to keep sensitive employee and customer data safe via modern security practices, especially while running a sustainable and trusted modern business.

How can I improve my phone security?

Now is the time to brush up on your security awareness.

Prouse recommends utilising apps such as LastPass and Google Authenticator for encryption and a second layer of security for important business and personal websites. However, you can’t just download them and consider yourself completely covered.

“As a business owner, your smartphone itself needs to be safe and secure too,” says Prouse. “Make sure there is a fingerprint scanner, facial recognition, and good password security.”

And when it comes to passwords, Prouse suggests thinking outside the box.

“You might like to check out Stay Smart Online for some good tips and policies around passwords. Don’t just use your date of birth, postcode, or banking pin numbers. Pick random numbers; the authorisation apps will remember them for you.”

It’s also key to remember that if you have an existing authenticator app setup on your old phone, you need to set it up on your new device before disposing of your old one.

So if you’re getting your hands on the new iPhone X, take some time to set up the security as a priority. Because, admit it, downloading Instagram was otherwise first on your list!

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!

Mid-Market to See Xero and Intuit Enter Arena

August 22, 2018 By raadmin

As the roll-out of Single-Touch Payroll sweeps across Australian businesses, MYOB Premier have decided against adding relevant services to their platform. This has given Xero and Intuit incentive to enter the mid-market, but is it worth your time?

Hang on, what is the mid-market?

The mid-market consists of the 50,000+ businesses in Australia with more than 20 but less than 200 staff. As well as more than $3 million turnover and three or more users of the core business system. This is a market currently dominated by MYOB, but soon to be contested by Xero and Intuit.

Why would I want to use Xero or Intuit anyway?

These platforms have been game changers for small businesses, offering a cloud-based platform which is constantly updating to include support for the future. Technologies such as machine learning, bank feeds, as well as well optimised user interface are huge selling points of Xero. However, to many these options are only available to small businesses with Xero or corporate level businesses with Workday. This is where the mid-market jump for Xero and Intuit comes into play.

Why isn’t the mid-market using these platforms now?

One of the main reasons cloud software hasn’t penetrated the mid-market is because of fear and cost of change. The majority of companies using MYOB do so because they doubt smaller software can perform, and fear the cost of corporate platforms. But this is not the case, as more businesses are realising Xero can match and exceed the performance of MYOB, as well as offering more features at a lower price point.

Single-Touch Payroll: How Is It Going To Change Things For You?

August 17, 2018 By raadmin

While the name may suggest some weird form of physical payroll, single-touch payroll (STP) is a new initiative from the ATO which came into effect at the start of this financial year. STP is currently applicable for employers with 20 or more employees. However, STP will also be used for employers with fewer than 20 employees from the start of next financial year.

What is single-touch payroll?

STP enables employers to report salary or wages, PAYG withholding and super information directly to the ATO at the same time they pay their employees. STP will send a copy of these to the ATO automatically when these are sent to the employee. The system is designed to make reporting easier for employers, as well as addressing the unpaid superannuation crisis.

How do I report through STP?

Reporting is easy as the process of STP is automatic, once your reporting software is STP-enabled. Before lodging your first report, make sure you authorise people to lodge reports on behalf of your business. As well as checking if you are in need of an AUSkey, this identifies you as the representative for your business when using online government services.

There are some payments which cannot be reported through STP, these include:

payments that are generally not paid through a payroll process;
payments made by payers to recipients that are generally not their employees

Are there any issues that could arise from STP?

As long as you are up-to-date on your super payments there is no need to worry. However, for smaller businesses that don’t pay super on time due to limited cash flow, consider breaking down these payments to be more regular to meet your obligations under STP. If you’ve missed superannuation payments in the past, there is an amnesty period until May 2019 to rectify any past non-compliance without penalty. Grievances can be backdated as far as 1992, so make sure you are on top of your superannuation!

Are there any benefits for employees?

Peace of mind. Through establishing the STP system, the ATO will get a report every time an employee is paid and will be able to instantly verify the superannuation payments are up to date. Employees will also be able to complete Super Choice forms and TFN declaration forms through their myGov account.

Staying Competitive as a Small Business in the Amazon Age

July 19, 2018 By raadmin

Amazon has been operating on Australian shores for some time now, but the ‘Amazon Effect’ has yet to hit. Amazon’s launch has signaled a culture shift for shoppers, with eCommerce sales set to almost double in the next five years. With this in mind, how can you ensure your small business doesn’t get left behind?

Consider how you could use Amazon to your advantage

Amazon’s Marketplace platform provides opportunities to reach a whole new segment of customers. With the recent introduction of Fulfillment by Amazon, small businesses can use Amazons capabilities for storing and sending products. This is especially useful for when their Prime service launches later this year, offering flagship shipping times. The service also processes returns, freeing you up to focus on what you do best.

Focus on your delivery times

If you decide you aren’t going to use Amazon’s logistics services, make sure you are nailing your shipping times. As Amazon keeps growing, delivery speed is going to be a growing driver of business, according to Deloitte’s David White.

Get your online right

Reports from Hitwise and OFX show Australian consumers are eager for a multi-channel shopping experience. Focusing on options such as click-and-collect are critical to bridge the gap between online and in-store customers.

The largest demographics using online shopping are the 25-34 and 35-44 age groups, think about how you can effectively reach these audiences and convert them into customers. Effective online presence is key for this, especially for small business, have a read of our article on online presence HERE.

Brand loyalty was also shown to be increasingly more important in the current retail landscape, that means continuing to engage with customers post-purchase through online newsletters, deals, or targeted ads.

Remember the power of price

Amazon sells products at a premium to US prices with their advantage coming from their range of products and delivery, not their price. Focusing on delivering prices that blow customers away is a simple way to compete against Amazon.

Make Technology work for you

March 22, 2018 By raadmin

Your small business

Running a small business seems great in theory; you’ve got the benefits of being your own boss, extra income, flexibility – the ‘Australian dream’.

When in reality you’ve got hours of administration work, constant pressure of cash flow, and endless hours working on the small minute financial details of you business. With revolutions in technology like the famous ‘cloud’, how come you still have hours of bookkeeping, payroll and the like?

The cloud isn’t the be all end all

Great, you’ve setup your business and transitioned everything into the cloud. Have those hours of painstaking work dialled back? Or has it just gotten worse? The cloud isn’t user friendly and unless you’re prepared to take up another university degree or spend hours reading through multiple guidebooks on bookkeeping, payroll, and marketing. When you’ve got inventory, cash flow, supplies, and clients/customers to worry about, how can you spare the time?

The cloud, bookkeeping applications, payroll software won’t save you time, it’ll just increase your workload.

By now you’re thinking, why did I ever start this small business, will it ever succeed? Don’t worry; you don’t have to handle all of this paperwork on your own. Luckily, there is a major time-saving solution just one phone call away.

The truth about the digital age

Going digital isn’t all that, sure it’s great in some aspects but sometimes you really need a human element. This isn’t new to the technological world either. Many major companies such as Apple and Spotify use ‘real human beings’ to create popular playlists.

Not to mention those little food apps like Foodora and Uber Eats that combine technology with real human beings. Would you trust a robot delivering your weekly order of Mexican? It doesn’t even begin with these guys, full stack businesses have been around since smart phones came into existence!

But this article isn’t about your food delivery needs, so let’s get back to the topic of your business. Apps won’t make your professional life easier like they do with your personal. You need a REAL solution; well don’t worry reader that’s where professionals come into play.

And by professionals I mean, accountants and business advisors. Don’t worry you won’t need to open a new tab and scour the internet for a business advisor that actually makes sense. We’ve got you covered!

Xero: The beginning of the end

Xero is definitely a life changer, as we’ve discussed before but it can also be a hassle if you don’t know what you’re doing. Small business owners enjoy using Xero as it makes accounting fun but in the long run some are making a mess of things. I mean, if you join a bookkeeping Facebook group, you’ll see what I mean.

Enter: a Xero-savvy business advisor with a free one hour training session. Now before you go rummaging around for your keys, you’ll need to book as everyone knows time is valuable.

What if I still can’t get it right?

You’ve gone through your free training session, maybe you’ve booked a few more but you still can’t quite get the hang of it? Lucky for you our tech-savvy advisors know Xero inside and out, so you don’t have to!

And here’s the absolute kicker; choosing a business advisor over a DIY can not only save you time but it’s less risky and less expensive than hiring an in-house bookkeeper. So if you aren’t up to the task of sorting out your payroll, taxes, accounts receivable, and accounts payable, then I advise you to give us a call or book a consultation.

Small Business Booming in the Burbs’

December 11, 2017 By raadmin

Small Business Insights

Xero has recently launched Small Business Insights, which provides a monthly snapshot of Australia’s small business sector – courtesy of data aggregated from Xero’s hundreds of thousands of subscribers. Xero has decided to provide these insights with the aim to “help policymakers and large enterprises make more informed decisions that benefit the small business economy” (Xero SBI). On top of metrics that give insights to the small business environment in Australia; KPMG, small business owners, business journalists provide commentary on the small business sector.

A New Trend

One interesting trend that has been observed by Xero is the increase of small business employment in more suburban locations in major Australian cities. Bernard Salt of KPMG has reported this pattern being evident in Brisbane, as small business employment increased in the period of January – September this year. Nearby CBD suburbs Red Hill (woo!) and Clayfield experienced a 17% increase in small business employment. More suburban areas such as Camp Hill and Bridgeman Downs also had an increase of small business employment, going up 23% & 18% respectively.

This suburban small business employment trend is also replicated in other large Australian cities such as Sydney, Melbourne and Perth. It seems that middle suburbia in Australia is acting as an incubator to nurture new small businesses, says Bernard Salt. It is important to note that whether our economy is performing well or poorly, middle suburbs in our large cities still flourish and experience growth in employment. These small business employment patterns that have been uncovered by Xero’s Small Business Insights give a new perspective on Australia’s modern economy. This pattern provides evidence that small business is as vital as ever to Australia’s economy.

We as small business advisors are excited about these findings, as it displays Australia’s evolving economy – and more importantly outlines the importance of small business to our evolving economy. All information was gathered from the “Small business beats in the heartland” article by Bernard Salt – read the full article here.

Post Contributor:
Andrés Pascoe

The New Payments Platform…Finally!

November 15, 2017 By raadmin

The Current Problem

You go out to dinner with friends, you’re having a great night & what could possibly go wrong? Then the end of the night comes, and the waiter utters that dreaded sentence…

“Unfortunately we don’t do split bills…”

This is a hassle that we have all experienced as with the high dispersion of banking providers among consumers, there is bound to be at least one of your friends that uses a different provider to you. As we all know, it can take up to 3 business days for payments to be transferred between different banks – which is extremely frustrating.

Although this delay can be a pain for consumers, perhaps the biggest sufferer of delayed inter-bank payments in Australia is small business. Late payments have been described as the “silent killer” of Australian small businesses. Another major problem for small businesses in Australia is poor cash flow – research has found that small business owners spend an average of 12 days in a year chasing unpaid invoices. This forces small businesses to focus on surviving rather than thriving, due to the stress that arises from chasing these payments.

Australia is a front runner in embracing electronic payments, however Australia’s existing infrastructure does not have the capability to support the evolving needs of a 24/7 digital economy. The RBA has now come up with the answer: The New Payments Platform. The New Payments Platform or NPP is a platform that: “Can empower businesses to become more efficient, reduce costs and improve their customer service.” A big win for Aussie small business!

Happy

The Way it Works

Basic Infrastructure

Users will be able to transfer money between bank accounts in real time, through an identifier such as an email address, phone number or ABN number. This provides unprecedented efficiency and convenience with transferring money (no more sharing of lengthy BSB and account number details). Users will also be able to include richer data with each payment – 280 characters will be allowed to be added to each payment rather than the 18 characters currently allowed by banks, which will facilitate e-invoicing and instant processing.

Fast Settlement Service

The Reserve Bank of Australia will provide the Fast Settlement Service (FSS), which enables all payments made on the NPP to be settled in real-time central bank funds, across each financial institution’s Exchange Settlement Account (ESA).

Overlay Services

Overlay services are payment related products or services that can adopt the benefits of the basic infrastructure. This provides a platform for competition and innovation, with each product and service having the possibility of offering differing or similar experiences. The first Overlay Service to go live on the NPP will be Osko by BPAY.

This new platform represents a great opportunity for small business in Australia, as a more efficient, accountable payment system is a welcome change to increase productivity within small businesses. Small business is continually proving to be a crucial contributor for Australia’s economy, and is a sector that can benefit greatly from the New Payments Platform. We can’t wait for this system to kick in, as we are looking forward to seeing our clients experience the benefits of this new system!