In This Issue


"It is impossible to
produce a superior
performance unless you
do something different
from the majority." 

- John Templeton





































Considered Value

Issue 113 - April 2017 

Budgeting For Growth

It may seem obvious that business growth can only occur when there is money available for reinvestment. 

However, many businesses do not consider this enough when budgeting and planning for their medium to long term goals. One of the biggest impediments to growth can be access to finances that will fuel the investments that are needed to support growth. Therefore, it is important that a business is aware and prepared for any future expansions and the need for funding accordingly.

If a business is planning to fund investment in its own infrastructure it will only be able to do so on its own with appropriate levels of profit margins and cashflow. Without this, the business may have to raise funds through the sale of equity, or borrow funds in order to grow. Here are some key aspects of business growth that may require funding in the future:

Investment in new support systems

With more data to process through increased transactions, there must be sufficient finances to fund the necessary support systems. These include financial, logistics, quality control, human resources, customer relationships management, complaints handling and asset tracking. These new systems also require staff training which, similarly, costs money. The key is to be able to grow your business without your overheads increasing at the same rate.

Staff development

The time it takes to train staff will have an impact on the cash flow of the business. This training will be necessary as new products or operating systems come into play with business growth. Furthermore, in adopting and/or inventing new products for sale, new marketing operations will need to be implemented.

Enhancing your competitive edge

Surplus cash can help businesses to counter or drive aggressive marketing, meet competitive product changes, innovate or undertake competitive pricing.

Buffering periods

The ability to absorb mistakes, evaluate what went wrong and identify solutions can mean the difference between complete failure and just a bump in the road. Rather than having to instantly cut back or take drastic action, a business with a cash buffer can reposition in the market with a renewed approach. Therefore, even without any immediate prospects of business growth it is wise to implement strategies from day one of business operations that allow for buffering. After all, growth does not come from standing still.


A Lesson On Registering Your Security

Late in 2016, the case of Flown Pty Ltd vs Goldrange Pty Ltd (2016) WASC 419, served a timely reminder about the importance of taking security over goods held by customers using the Personal Property Securities Register (PPSR).

In this case, a property landlord had lent their tenant $460,000 to purchase business equipment under a documented secured loan agreement. However, the landlord failed to register their interest on the PPSR.

When the tenant found themselves in financial difficulty and appointed an administrator, the landlord attempted to terminate the lease and take possession of the tenancy and the equipment.

The court found that the landlord was too late as the administrator was already appointed before the landlord took possession of the property. Therefore the landlord was an unsecured creditor and was left significantly out of pocket.

They surely regretted not registering the security on the PPSR for a mere cost of $6.80.

Contact our office for more information on the PPSR and assistance with your registrations.


Child Care Changes

On the 23rd of March 2017, the Senate passed a major overhaul of the child care system which will be effective from July 2018.

The existing Child Care Rebate (covering 50% of fees up to annual cap of $7,500) and the means-tested Child Care Benefit will be replaced with a single, means and activity-tested subsidy, where both parents must work, study or volunteer at least eight hours a fortnight.

The new subsidy will cover 85% of fees for families earning $65,710 or less, tapering down in accordance with the following table:

There is no annual cap on subsidies for families earning $185,710 and under; those earning more than $185,710 will be limited to claiming $10,000 per child.

Those not satisfying the activity test will still receive 12 hours of child care if they earn less than $65,710. For families that earn an income of more than $65,710 but do not meet the activity test, no child care subsidy will be received.

There will be a bonus subsidy for disadvantaged families, namely those with children at risk of abuse or neglect; those experiencing temporary financial hardship; and grandparent carers on welfare.

The family tax benefit rates will be frozen for at least two years to help pay for the new plan.


How To Fuel Creativity

Whether you are a business owner, manager or employee; creativity is a crucial element in problem-solving and brainstorming new ideas.Developing new and original ideas is a valuable life skill and is often key to business growth.

Highly creative individuals can solve complex problems faster, generate more insights and capitalise opportunities.

Fortunately, creative insights are not limited to the highly-imaginative creative professionals. Individuals can boost their creativity with these simple tips:

Incorporate daily downtime

A busy schedule is often an unavoidable part of modern day life. Between meetings and day to-day routines; prioritising rest and relaxation can seem all too challenging.
However, research shows people are more likely to adopt a creative mindset when they are in a state of relaxation.

Regular practice of activities such as mindfulness and meditation can lead to more insights, as it allows the brain to truly wonder. Making a conscious effort to find some time alone and include relaxing activities, such as going for a walk, can have a dramatic impact on not only your creativity, but your overall productivity. Ensure your 'relaxation' time is free from distractions, such as mobile phones and laptops, and try to jot down any fleeting thoughts immediately.

Change your environment

When struggling to generate ideas, changing your physical environment can make all the difference. If you do all your work in a familiar environment, such as your office, consider leaving the office for a walk or moving to an empty conference room. The change in scenery can help provoke new insights and stimulate different thought patterns.

Embrace failure

Don't think of failure as something that must be avoided at all costs but rather an opportunity for innovative thought. The way failure is treated, particularly in a business context, can either push people to try new approaches or prevent them from sharing new ideas.

Adopting a positive approach to failure is a sure fire way to tackle complex decisions and can lead to more 'light bulb' moments. If you are finding it difficult to solve a problem, take a break and do something to lift your spirits.



What is Mailchimp? 

Mailchimp is a web-based marketing tool. It helps you design email newsletters, share them on social networks, integrate with services you already use, and track your results. It enables people to subscribe or unsubscribe to email marketing through sign-up forms. 

Why do I need a special tool for email marketing? 

You can send a newsletter or announcements about new products or upcoming events via your personal email. Providers like Gmail, Outlook and Yahoo, however, are designed for one person to send emails to limited number of people at just one time, not to a list of subscribers. 


There are a lot of measurable benefits of email marketing. Here are a few reasons why an email marketing service like MailChimp is a better tool for this kind of task: 

  • Powerful automation for online sellers - Make sure your emails get to the right people at the right time. Target customers based on behaviour, preferences, and previous sales. You can use builtin segmentation to build custom rules. 
  • Approved bulk mailer - Most email services and Internet Service Providers (ISPs) limit the number of emails you can send at one time. This is to prevent spamming. With a tool like MailChimp, you can send an email to an unlimited number of recipients at one time.
  • Greater deliverability - Services like MailChimp work with ISPs and corporate domains to ensure your emails are recognised as safe and approved. If there is a problem with delivery, MailChimp will attempt to re-send the email and tell you why an email might be bouncing.
  • Adherence to privacy laws - Bulk mailers are required by law to include an unsubscribe link in every email. MailChimp and other email marketing services include this automatically and ask recipients why they are removing themselves from your list.
  • Create beautiful campaigns - MailChimp offers a wide variety of customisable templates for designing professional, responsive emails. You can also build a template from scratch to use with MailChimp.
  • Know if people are reading your emails - If you send an email through your personal email, you have no idea who opened it. Mailchimp give you all sorts of fun analytics on successful deliveries and open rates so you know people are listening.
  • Divide your lists into groups - Dividing your fanbase / client base in sub-groups based on engagement, location, social stats and more, allows you to tailor your message to the people reading it. 
  • Forever Free (Starting Up) - As long as you have fewer than 2,000 subscribers across all lists in your account, you can send up to 12,000 emails per month absolutely free.
  • Monthly Plans (Growing Business) - Upgrade to a paid plan if you don't want limits on the number of emails you send a month. Unlimited email plans start at $20 for 1,001 - 1,500 subscribers and go up from there. 
  • Pro Marketer (Enterprise Level) - Optimise your marketing with MailChimp's enterprise-level package - $25.00 per month + $199.00 Pro subscription.

Client News

Congratulations to Rural Directions who are celebrating 20 years in business providing services to the agribusiness industry.


This month Brentnalls SA is supporting: Hutt St Centre

 Hutt St Centre is a place of hope and opportunity,  helping people facing homelessness to rebuild their  lives, without judgment.


Brentnalls SA News

We welcome Cindy Kolesnikoff who has joined us as an undergraduate accountant.

We congratulate Wen Yee who has been awarded a scholarship offered by The Tax Institute to complete 3 subjects of their Chartered Tax Advisor program.

We farewell Lorraine Wall who is retiring this month.

Congratulations to Jessica Jurek and her partner Craig on the birth of Dakota Peta Mills.



Meet Jessie Guan

Outside work, I enjoy time with my family especially my two little girls, Hayley who is almost 5 and my 3 year old, Hanna.

I also  enjoy swimming and cycling and most of all, I love to shop and enjoy good food.

I have a degree in Commerce from the University of South Australia and have recently completed the CTA1 Foundations from The Tax Institute.






    From everyone at Brentnalls SA, have a safe and happy Easter! 


Disclaimer: The information provided in this newsletter does not constitute advice. The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances. Brentnalls is not a partnership or a joint venture. Instead, the business of Brentnalls SA is independently owned and operated and it is an independent member of the Brentnalls Affiliation of Accounting Firms. Individual member firms do not accept responsibility or liability for the actions or inactions of any other individual member firm.

Rural Directions Huttstcentre
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