Issue 111 - February 2017
Growing and expanding your business can be driven by a number of things, but whatever the reasons, it is important to step back and take a measured approach to any expansion decision.
Growth can generate a whole new set of challenges (as well as opportunities).
Central to expansion is keeping an eye on cash flow and how it will work. Larger businesses need more capital so it is vital a complete analysis of cash flow is conducted.
To help with the decision, you may also want to undertake an environmental analysis of your business. To prepare for any change in business, understanding your internal strengths and weaknesses, and your external opportunities and threats is important. It is imperative to evaluate clearly and not just react.
If you conclude that expanding is the way to go, you should then consider the following:
- Examine your long term ownership goals. Start with the end in mind and determine your exit strategy. This will help to focus your planning.
- Review your ownership structures and whether these are the best for your future business model.
- Model how the expansion will come from internal growth, acquiring new technology, acquiring a new facility, expanding your markets, or by acquiring an existing business.
- Consider what elements of your business will need to change; growth may mean new systems and processes are required for IT, HR, CRM etc.
- Prepare a business plan and analyse what you need to accomplish growth.
- If you have a strategic plan in place, review it, and see how an expansion fits into the original plan. If you do not have a strategic plan, this is now the time to incorporate one into this next phase.
- Prepare a financial projection to test the feasibility of the expansion from a cash flow standpoint and to analyse the amount of time it will take you to recoup the investment or how fast you want to be paying back debt.
- Look for efficiencies you can take advantage of by utilising the existing infrastructure and factor those into the financial projection model.
- Ensure that you, as the business owner, have the ability to create the time to prepare for expansion carefully. Also being able to lead your staff through the process may require extra time and effort from you.
- Set up an advisory board with outside expertise to bring together a team of professionals to assist you in your growth.
Speak to your Brentnalls SA advisor to see how we can help you expand your business.
In this digital age, most business owners want to take advantage of the efficiencies technology has allowed. One of those efficiencies is the ability to store all of your information digitally; businesses' financial data, banking details, customer information, employee records and much more can be available to you at the click of a few buttons. This is wonderful, however also opens up the same information to considerable risk.
Cyber-crime is now one of the biggest risks for Australian business owners. Cyber criminals are becoming increasingly sophisticated and can cause your business considerable harm from anywhere in the world. They are able to gain access to data, download malware or attack a computer system or website causing it to overload and stop operating by exploiting the weaknesses of your systems or networks.
Traditional insurance policies do not generally cover cyber-crime which has led to an increasing number of specific cyber insurance policies becoming available. Cyber insurance policies can cover damage to your computer system, data restoration/reconstitution, financial loss arising from lost revenue and legal expenses, reputation damage and loss of intellectual property.
Even with insurance, it is vital to ensure your security software is always up-to-date and you have taken proactive measures to ensure appropriate security policies are in place. In the event you are the victim of a cyber attack and need to claim on your cyber policy, you may need to prove you have taken all reasonable steps to prevent an attack.
To help minimise your risk, do a 'digital declutter' and remove any old and unused apps and accounts you may have installed or set up. With app stores offering millions of products it can be easy to get caught up in the moment and install an app which may end up sitting there unused once the novelty has worn off.
Leaving unwanted and outdated apps and old accounts running on a device can slow its performance and expose your business to online identity theft and phishing. The longer an old app or operating system is left on your device the more exposure cyber criminals have to find vulnerabilities within it.
Apps should also only be installed from verified suppliers as they have strict guidelines in place to help create safe user experiences. If an app breaks one of those guidelines a reputable App supplier will remove it from the app store. It is also wise to check out review of an individual app prior to installing it.
We all benefit from the digital age but as technology changes, we must protect ourselves from potential risks.
From 1 January 2017, tax rates for working holiday makers who hold 417 and 462 visas were changed.
To check whether one of your employees holds one of these visas, with their permission, you can visit border.gov.au/vevo and use the Visa Entitlement Verification Online Service.
If you employ a working holiday maker in Australia you will need to:
Register with the ATO to withhold at the working holiday maker tax rate
Withhold tax at 15% on income up to $37,000 and apply foreign resident tax rates on income above this amount
Issue two payment summaries this year:
One for the period to 31 December 2016
- A second for the period 1 January 2017 to 30 June 2017
For assistance with any of the above, please contact your Brentnalls SA team member.
From 1 July 2017, the Australian Taxation Office (ATO) will disclose tax debt information of businesses to Credit Reporting Bureaus. This will initially only apply to businesses who have a tax debt outstanding for at least 90 days of more than $10,000. If the business has arranged a payment plan with the ATO, their tax debt will not be disclosed.
This change is designed to encourage businesses to pay or make arrangements to pay their tax debts in a timely manner if they wish to avoid problems with their credit rating.
Small businesses make up the majority of bad debts with the ATO, therefore they are the key area of focus.
The ATO has been criticised in the past for acting too harshly on small businesses with tax debts. Upon completing a report into the ATO's management of debt, the Inspector General of Taxation found that there was a difficult balance between recovering the tax debt efficiently and also providing appropriate financial assistance to the taxpayer.
The ATO will be taking action against businesses that ignore their tax debt obligations and this may include legal action if necessary which can be costly for the taxpayer.
If you are unable to pay your tax debts when due or have any concerns about how your tax debts have been handled by the ATO, please contact our office.
If you have developed (or are developing) a new or improved product or process, you may be eligible for the R&D Tax Incentive.
For activities conducted during the 2016 financial year, the deadline for registration of the activity with Ausindustry is 30 April 2017.
Please contact a Brentnalls SA team member for more information on this opportunity or see our website.
We at Brentnalls SA sponsor a number of organisations that support young people achieve personal and professional goals. One such group is the Van D'am Racing Team, who we have sponsored now for a year and a half.
The recent Tour Down Under event saw the team involved in a range of events including:
- Norwood Cycling Club (NCC) Uraidla Kermesse on the 15th January
- NCC Criterium at Victoria Park on the 16 th January
- Support events for the Women's Criterium on Tuesday the 17thJanuary
- NCC Criteriums at Victoria Park on the 17th January
It is great to be able to support the team and we wish them every success throughout 2017.
In a previous software corner, we discussed Receipt Bank which at the time was an add-on program which integrated with a number of cloud-based accounting packages including Xero and Quickbooks Online. At the time however, it did not integrate with any MYOB accounting package, which was a big drawback as many of our clients use MYOB to maintain their accounting records.
Receipt Bank have now announced that from 1 March 2017, they will integrate with MYOB AccountRight Live.
Receipt Bank have allowed us early access to this integration feature, so if you are a MYOB user and interested in the benefits of Receipt Bank, please contact your Brentnalls SA manager straight away to discuss further.
What is it?
Receipt Bank is an online software add-on which provides a service to make the gathering, storage and processing of receipts and invoices as easy and as cost-effective as possible. You can submit your data via various methods, including having suppliers email your invoices directly to a dedicated email address, scanning the invoices yourself to that same email address, or utilising Receipt Bank's smartphone app which allows you to take a photo and upload directly on your phone.
Once uploaded, Receipt Bank's systems will extract the key information, including supplier name, date, payable amount and any GST. Once the data is extracted, it can be submitted directly into your accounting software, saving you the hassle of re-keying this data. The transaction in your accounting software includes a PDF scan of the invoice which will assist in document storage management and review of transactions at a later date. Receipt Bank is now compatible with all major accounting software brands.
Who can it help?
All businesses who have numerous receipts which are manually being processed into the accounting software.
- Reduced manual processing time
- Automated processes to bring invoices into your accounting software
- Reduced processing errors
- Storage facility for your invoices on the cloud for you and your accountant to access from anywhere
Guide Dogs SA/NT has a long and exemplary history in training and placing Guide Dogs and supporting people with a vision or hearing impairment in South Australia.
Fore more than 50 years, Guide Dogs SA/NT has enhanced quality of life through a culture of innovation, incredible dogs and qualified trainers.
Brentnalls SA is also proud to support Spence Club Inc, a unique networking group for young South Australian women raising the profile of women leaders and raising funds for charities through their events.
We welcome James Moore who has joined us as an Intermediate Accountant and Sarah Mitchell and Wade Crane who have joined us as undergraduate accountants.
We congratulate Thomas Clift on completing the Chartered Accountants Program.
We congratulate Jade Gurung on completing her university degree.
Congratulations to Alex Sacca and his wife Marianna on the birth of Lorenzo, a baby brother for Rocco.
We congratulate Kaedan O'Neill & Mark Samson for being selected to join us for 4 weeks work experience through the Chartered Accountants Australia and New Zealand CA Achiever Program.
We farewell Kiara Canizzarro and thank her for her good work. We wish her all the best in her future endeavours.
We farewell Aimee Campbell after 18 years with Brentnalls SA. Aimee has worked with many clients over the years and her presence and support in the office will be missed. We thank Aimee for her service and wish her all the best for her future.
I started working at Brentnalls SA as a Junior Accountant in October 2014 whilst completing a Bachelor of Commerce – Accounting at the University of South Australia.
I enjoy working at Brentnalls SA as I have had the opportunity to gain knowledge across many different areas of accounting and tax.
Outside of business hours, you could either find me at the gym or spending time with my friends and family. I recently travelled to Queenstown, New Zealand over the Christmas break and hope to travel overseas again in the near future.