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Issue 136 - Brentnalls SA Newsletter August 2020

 
 Celebrating 20 years in business, Brentnalls SA.


Inside This Issue

Staying Afloat in a Challenging Environment
Planning a Retreat
Fuel Tax Credits - ATO Calculator
Superannuation Changes
JobKeeper Payment 2.0
Intuit QuickBooks Online's New Cashflow Planner
Client News
Brentnalls SA News
Brentnalls SA for the month of April we are supporting:
Jeans 4 Genes
Meet Ryan Buiatti
Quote

"We cannot solve problems by using the same kind of thinking
we used when we created them."


~ Albert Einstein ~




 

Staying Afloat in a Challenging Environment

Many businesses are facing unprecedented challenges as the country navigates economic recession and significant uncertainty due to COVID-19. Strategies to reduce costs and reserve cash are vital to ensure your business survives and thrives into the future. In uncertain times it is important to focus on the things you can control. 

Strategies: Managing Costs

Shop around for better deals: Research has shown that going out to market to compare prices for different suppliers of consumables, materials and fixed expenses such as electricity and insurance, can result in significant cost savings. There are also potential savings due to volatility in market prices and purchasing essential items in volume at the bottom of the price cycle. 

Reduce discretionary expenditure: One benefit of the COVID-19 restrictions is the opportunity to reduce discretionary expenditure such as travel, food and entertainment, and meeting expenses. This may present an opportunity to implement changes in behaviour to reduce these expenses in the post COVID-19 business environment. 

Reduce overhead costs: While costs such as rent can usually be difficult to renegotiate, many landlords are currently open to requests for rent reduction or relief, particularly for long-standing tenants who have been significantly impacted by the current economic conditions. 

Review finance structure: It can be tempting for businesses in times of financial hardship to turn to short-term finance. However, short-term finance usually has higher interest and fees which can impact your business profitability. Where possible, longer-term finance should be sought, in conjunction with a full review of your finance structure and renegotiation of rates. Also try to consolidate debt to avoid any duplication of fees and charges.

Set your budget and stick to it: Most accounting software packages allow the tracking of your budget compared to actual expenditure. You should have a budget for the coming year, focused around cost management. Timely actual-to-budget reporting on a monthly basis allows you to focus on areas where there are cost blow outs or unexpected expenses so you can ensure these are addressed as soon as possible.

Strategies: Reserving Cashflow

Focus on debtor management: Most businesses are great at their core business, but struggle to get customers to pay on time. Some strategies to help your customers pay on time include:

  • Clearly state your payment terms on invoices.
  • Implement electronic billing and payment to allow customers to make instant payments upon receiving your invoice. This functionality is becoming increasingly affordable and is available in most accounting software packages.
  • Send payment reminders on the due date, and scheduled regular reminders including follow up by phone for any overdue payments.
  • Consider referring any significantly overdue amounts to a debt collection agency.

Reviewing your debtor and creditor days: Often businesses can find themselves making payments to their suppliers faster than they are receipting from customers. It is important to regularly review the average age of your creditors and their payment terms to ensure that you aren't making payment too early.

Some questions to consider: Are you paying all of your suppliers on the due date for their invoices? If your debtor days are more than your creditor days, should you review your receivable payment terms? Can you negotiate payment terms with suppliers to be more favourable?

While it is important to ensure you are paying suppliers on time, a focus on your debtor and creditor days can have a significant impact on your cashflow. 

Contacting Government organisations / finance providers for payment extensions: Many Government organisations, notably the ATO, allow flexibility in making payments when cash flow is tight. Currently many of these organisations are offering interest-free payment extensions or deferrals to businesses significantly affected by COVID-19. Financial institutions are also offering low interest rates and payment extensions. 

Cashflow forecasting: Cashflow forecasting is a helpful tool to map out future expected cash inflows and outflows and plan for months in which cash flow might be tight. 

Contact our office for assistance with preparing cashflow forecasts or if you have any questions.

 

Planning a Retreat

Calendar month blanked out red indicating date for planning retreat.   The word "retreat" projects images of turning around and running away from the challenges or adversity we face. The definition of retreat is the act of moving back or withdrawing. In business, the purpose of a planning retreat is contrary to this definition. Focusing on future success should be the key objective for a productive retreat. Most importantly, to redefine priorities and goals for the period ahead. 

What is the importance of having a retreat?

We believe that a planning retreat is an essential discipline for working on the business and not just in the business. It is an opportunity to take a step back from the busyness of work commitments and deadlines, and to take stock of the current state of the business and consider the challenges and the opportunities that lay ahead.

The fluidity of the economic environment makes it even more essential to take stock, to think and act strategically, it also helps to identify and understand whatever challenges are ahead so that they can be leveraged and converted into business opportunities. 

What are the keys to a successful retreat?

A retreat needs to create an environment that engages the leadership team and challenges them to think broadly about creative, strategic opportunities that align with the future growth of the business. 

It is essential to get well away from the office, and its distractions. Using an external facilitator is highly recommended so that the leadership team can fully participate as peers in the process. The conversations need to be open and honest so that fundamental issues can be fully explored and addressed. The facilitator needs to ensure that an environment is a safe place where participants are comfortable to voice their thoughts and opinions. 

How committed is Brentnalls SA to the idea of a planning retreat?

Brentnalls SA holds a planning retreat every year. We believe that it is an essential business discipline that ensures Brentnalls SA is steering in the right direction. The significant investment of time and effort involved is rewarded by the alignment of collective effort, improved teamwork and productivity; all of which enable the effective execution of our plans and delivering the outcomes that we aspire to achieve. 

  Two keys to a successful retreat. 


Fuel Tax Credits-ATO Calculator

The Australian Taxation Office (ATO) now provide you with a fuel tax credit calculator. The calculator includes the latest rates, which assists in working out your fuel tax credit amount when reporting on your business activity statement (BAS). Learn more about the calculator and rates via this link.  


Superannuation Changes

The following changes took effect from 1 July 2020:

Work Test Age
The work test is now required when contributing over the age of 66. The test was previously required for members over the age of 64, and has been changed to match age pension eligibility.

Spouse Contributions
The age to make spouse contributions has also been increased, from 70 years old to 75 years old. The spouse must still meet the work test to receive the contributions if over age 66.

50% Minimum Pension Payments

Minimum pension payment requirements have been reduced by 50% for 2020/21. The maximum pension limits have not changed.

Superannuation changes to minimum pension requirement table.


JobKeeper Payment 2.0

People dressed in different career clothing supporting JobKeeper 2.0 The Federal Government announced in late July that the JobKeeper scheme, previously scheduled to end on 27 September 2020, will be extended to 28 March 2021. Along with the announced extension, there will be changes to both the eligibility requirements and payment amounts. 

Changes to the payments include:

  • Reducing the current fortnightly payment of $1,500 to $1,200 from 28 September 2020 and $1,000 from 4 January 2021.
  • A new two-tiered payment structure to be introduced from 28 September 2020, which will reduce the payment rates to $750 and then $650 for employees who worked fewer than 20 hours per week (based on February 2020 or June 2020 hours).
Changes to Eligibility Requirements

The eligibility requirements have also been changed, mainly to update the way turnover tests are applied and which employees are eligible. The changes primarily aim to ensure businesses that continue to be impacted by COVID-19 lockdowns and restrictions are available for the JobKeeper payments.

For further information on changes to JobKeeper payment rates and eligibility requirements, please see our detailed fact sheet here

Should you have any queries regarding this measure or any Government measure announced in relation to COVID-19, please contact here our office for more information.

Changes to eligibility requirements, keyboard with piece of paper and the word eligibility.


Software Corner Logo           Intuit QuickBooks Logo
Intuit QuickBooks Online's New Cashflow Planner

QuickBooks Online users will now have access to a new feature to assist them with their cashflow planning. 

What is it?

This new feature predicts cashflow over the next 90 days by analysing incoming and outgoing transactions. 

It looks at your transaction history to model future scenarios. 

It is highly customisable to adjust to any of your future events to see how certain changes would affect your cashflow without affecting or changing your books.

Put simply this tool will allow you to make informed financial decisions about when to save, spend, borrow, and transfer money.

In three simple steps you can use this planner to be on your way to forecast various scenarios. 

Step 1: Set up your planner 
Step 2: Forecast your cashflow
Step 3: Add events for possible money in or money out 

This tool is free to QuickBooks Online users.

If you have any questions, please contact our office
Client News

Cristina Tridente (Fashion Designer) is making waves in the fashion industry with  her business Couture+Love+Madness dressing artists such as The Veronicas and Dannii Minogue. Congratulations Cristina.

Dr James Ayres (seated right) recently enjoyed morning tea with Scott Morrison (PM) to celebrate our pandemic heroes in a national day of thanks. Thank you from all at Brentnalls SA for the hard work in the front line against 
COVID-19.

Scott Morrison (MP) celebrating our amazing pandemic front line heroes

1 July 2020 marked the start of a new chapter for Rural Directions, Sunraysia Environmental and Macquarie Franklin as they merged to become one as a new business, Pinion Advisory. Craig Farrow has been appointed Chair and David Heinjus as CEO. Congratulations to all.

 

Brentnalls SA News

We congratulate our staff on their following promotions:

  • Alex Cianca, James Moore, Jade Gurung, Jade Giang and Matthew Merrett to supervisors. 
  • Wade Crane and Jerome Steele to senior accountants. 
  • Alan Lam and Jayden Pearce to intermediate accountants.

We congratulate Alex Cianca for passing his final Chartered Accountants exam.

We warmly welcome Rebecca (Bec) Dean who has joined us as a senior accountant, Victor Simone as an intermediate accountant, and Shannon Abranches, Brenton Duong and Lucas Fazzini as junior accountants.

We warmly welcome Rosalie Sweet who has taken on the HR Coordinator role while Shawna is on maternity leave.

Congratulations Shawna Fayad and her husband Chris on the birth of Lilliana, a sister to Katalina and Marella.

Congratulations to Sarah Espley who celebrated 10 years at Brentnalls SA.

We farewell Catherine Zarantonello, Harrison Cansdell and Ryan Braund, we wish them all the best in the future.

Congratulations Emily Hunt and her partner Dane who recently welcomed the birth of Rosie, a sister to Oliver. 

Gavin Mitchell, Partner participated in the Jodi Lee Foundation Trek where he raised over $68,000. Well done Gavin and his team of trekkers.

Christina Gulliver, Partner is Celebrating Ten years at Brentnalls SA.
Christina Gulliver celebrating ten years at Brentnalls SA.
 

"Having started at Brentnalls in July 2006 as a fresh-faced Law and Commerce student, the world of debits and credits was foreign. I was provided significant support and thoroughly enjoyed the client work and team at Brentnalls SA, soon deciding to withdraw from Law and pursue only Accounting studies. Finishing University, I then moved to another firm for a short period.

I re-joined the Brentnalls SA team in 2010 while studying a Diploma of Chartered Accounting. I appreciate the opportunity to grow together with my clients, their families and businesses. Many of whom I have now worked with for 14 years.

Brentnalls SA has assisted me in progressing through my career. Importantly, the firm has provided me with a flexible work arrangement to support my family and young children. I was appointed Partner from 1 July 2020. 

I am looking forward to the next ten years and beyond with my clients and the Brentnalls family."


Brentnalls SA for the month of August we are supporting:

Jeans 4 Genes

Supporting Jeans 4 Genes.
 

Jeans for Genes Australia is a charity providing support to laboratory research for children born with a defect or genetic disease. 1 in 20 Australian children are faced with this growing concern, and money raised help find cures and treatments.


Meet Ryan Buiatti

Ryan Buitti Accountant at Brentnalls SA.
 

"I joined Brentnalls SA as a junior accountant in July 2017 while I was studying a Bachelor of Commerce (Accounting) at the University of South Australia. I will have my degree completed by mid-way through 2021 and will begin further studies to become a Chartered Accountant.

Being part of the Brentnalls team has helped me develop my skills as an accountant and also enabled me to develop relationships with both my colleagues and clients.

In my spare time, I enjoy watching all kinds of sports and also travelling whenever I get the opportunity to do so. I would love to travel to every part of the world at some point in my life!"

~TOP

Our Services

Services that assist in increasing profitability, build value, and protect your wealth.

Accounting & Tax
Business Advisory
Wealth Creation & Preservation

Industry Focus

We are not just your accountant, we are your business advisor, here to support you and your business. We specialise and focus within the following industries:

Brentnalls Agribusiness
Brentnalls Construction
Brentnalls Health

Resources

Our resources provide additional supporting information in the following areas: 

Newsletters
Fact Sheets
Checklists
COVID-19 - Information Sheets
COVID-19 - Brentnalls SA Response

Our Location

255 Port Road
HINDMARSH SA 5007

PO Box 338
Welland SA 5007 

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P: (08) 8241 8444
F: (08) 8241 8488
E: admin@brentnalls-sa.com.au

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