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small business

Turn Your Small Business Goals & Dreams into Achievements!

To make small business Goals, Write them down and make them happen.

Are you a small business owner with big aspirations? I am, too, but when I set my business goals, they were so secret that I couldn’t remember them. Sharing your goals can only happen if they go from head to paper.

It’s time to step beyond daydreaming and take decisive action. By writing down your goals and committing to a clear plan, you’re not just setting a course for your business but taking control of its destiny. This act of empowerment can transform your business from surviving to thriving. Here’s how to cut through procrastination and plan strategically for success.
Goals need a purpose; for some, as retirement is approaching, they should include goals related to exit planning, beaches, and golf.

For small business owners, every day is filled with demands. Regarding strategic planning, it’s easy to say, “I’ll do it tomorrow.” But procrastination is the silent killer of progress. Writing down your goals does more than commit them to memory—it commits them to reality. Set clear, actionable objectives with defined timelines and watch your daily decisions align more closely with your long-term aspirations.

Navigating the complexities of a small business can be daunting, but you don’t have to go it alone. Establishing a relationship with an accountability partner like a coach or mentor can dramatically increase your chances of success. They’ll help keep you focused, track your progress, and ensure your business meets and exceeds its goals. This support system provides guidance and instils motivation and determination, pushing you to move forward.

Planning your exit strategy early and realising that everything has an expiration date are part of the goals setting for small business.

Thinking about an exit strategy early in your business journey might seem premature, but it’s vital to your overall strategic plan. Planning for an exit three years down the line gives you a clear timeframe to boost the value of your business, streamline operations, and ensure you can leave (or sell) on your terms. This foresight prepares you for the future and brings a sense of security and peace of mind, knowing you’re ready for whatever comes your way.

A procrastinator would say a long time, but it’s really 12 months for some action. In reality, the best timeframe for setting goals—whether 60 days, 90 days, or a year—depends largely on the nature of the goals, the specific context of the business or personal objectives, and how the milestones are structured within that period.
So, in setting goals, consider this:

These short-term goals are useful for very focused, specific achievements that contribute to larger objectives. This timeframe is ideal for tasks that require quick results or when starting new initiatives that need to gain momentum quickly. Sixty-day goals encourage rapid progress and frequent reassessment, making them ideal for responsive and agile environments where conditions change quickly.

Often referred to as quarterly goals, 90 days is a popular timeframe for businesses and individuals because it balances the urgency of short-term goals with the foresight of longer-term planning. This period allows enough time to see significant progress on somewhat complex projects without losing the momentum that can dissipate with longer timelines. It’s also a practical period for iterating on feedback and adjusting strategies.

Setting goals for a year is common for strategic planning because it aligns with financial and business cycles. Annual goals are suitable for more significant, ambitious projects requiring a longer runway. This timeframe allows for the deployment of substantial resources and the alignment of multiple smaller projects under a larger umbrella, providing a clear vision of where you want to be at year’s end. It also matches the evaluation periods of most businesses and personal planning cycles.

• Complexity and Scope: If your goal is complex and requires coordinating many moving parts, longer timeframes might be necessary. Simpler, more direct tasks might be effectively accomplished in shorter periods.
• Urgency and Priority: How critical is the goal? If it’s highly urgent, shorter timeframes can create the necessary focus and intensity needed to drive actions.
• Feedback and Adjustments: If your project or goal benefits from iterative feedback, shorter cycles like 60 or 90 days could be beneficial as they allow for quick adjustments based on what is or isn’t working.
• Resource Availability: Consider your available resources, including time, money, and personnel. Some goals might require extensive resources that are only feasible over a longer period.
Ultimately, the best timeframe for your goals will depend on balancing these factors with your specific circumstances and end objectives. Often, using a combination of all three—setting immediate, short-term goals within longer, strategic plans—can provide both the motivation of quick wins and the guidance of steady, long-term vision.
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I like to escape and think about my small business goals. A coffee and a notepad are all I need. Amazingly, I have set goals in various forms, from a vision board to a set of goals in categories. And you know, I can say I have achieved many of them every time.

Like any small businessperson, getting money in the door is the oil that oils the wheels of your business. So, your small business goals should be macro and broad and include a goal for achieving a revenue target.


Can you get through your business journey without goals? Of course, and by a stroke of luck, you might do okay. But those who commit to achieving are the lucky ones who reach the finish line with the amazing inner glow of what they have achieved.

Embarking on a business journey without specific goals might work out fine, and sometimes luck might even swing your way! However, those with a dedicated commitment to their objectives not only cross the finish line but do so with a radiant sense of accomplishment and a brilliant inner glow from what they’ve achieved.

tax planning accountant

Proactive tax planning Accountant help

Working with a proactive tax planning accountant can deliver great tax-saving results. Small business tax planning is crucial for managing your finances effectively. You should implement smart tax strategies. That’s why our clients like working with a proactive tax planning accountant. We can help you to maximise your savings, reduce tax liability, and improve your financial position. Proactively planning your taxes will help you legally minimise the tax you owe and optimise your financial resources.

Effective tax planning helps you manage cash flow more efficiently. By understanding your tax obligations in advance, you can plan for upcoming expenses and ensure sufficient funds are available to meet your tax obligations on time. Planning avoids the risk of cash flow issues and potential penalties from late payments.

Furthermore, tax planning enables you to make informed business decisions annually. You can choose strategies that minimise your tax liability by considering the tax implications of various financial transactions, investments, and business decisions. This strategy also helps maximise your after-tax profits. This strategic approach to tax planning can contribute to your business’s long-term growth and success.

One primary objective of tax planning is to reduce your tax liability. While it is essential to remain compliant with tax laws, there are legitimate ways to minimise taxes. This involves identifying and taking advantage of deductions, credits, and exemptions that apply to your business. By carefully analysing your income and expenses, you can find opportunities to reduce your taxable income and lower your overall tax result.

Timing is also crucial for tax reduction strategies. Strategic planning for purchases and expenses can optimise your tax deductions. For example, prepaying expenses before the end of the financial year allows you to claim deductions in the current year rather than spreading them over multiple years.

maximise your profit

How To Maximize Your Profit for Your Business

To maximize your profit is not that hard. It would be best if you focused on a few changes in your business. Running a business allows your creativity to thrive. You are in charge and can make decisions that push you out of your comfort zone. Making a profit is one of the most important business operations.

When you make more than you spend, you are technically making a profit. Even a small profit is worth celebrating, so look at our short guide on maximizing your profit when running a business.


How to maximize your profit and run a successful business Four Points to maximize your profit.

Cost-effective decisions


Always ensure your decisions are cost-effective. Consider whether your decisions will increase your income or overall expenditure.

● For example, if you want to sell artwork and make a living in the creative industry, it will be worth considering whether you could make more money selling your wares online or in a shop.

● A shop has overhead to consider, but an online space is entirely digital and may mean you ultimately make more money.


Overhead that eats into your profit!

Remove unnecessary overhead. If you aren’t making money on a specific product or service yet still spending money to source, stock, or create, you may be making an unnecessary loss. Focus on removing any unnecessary overheads.

● Consider ways to cut back on expenses and save money. For example, if you are selling goods, ensure you shop around to get the best deal from the wholesaler.

Water and nurture will help your business grow!


Start small and grow gradually. When you are working to turn a profit, make sure you keep an eye on the services or products that sell.
● Avoid spending significant amounts of money on stock if it repeatedly fails to sell. Stick to your popular services and products and maximize profit by always selling what people will buy.

● Keep an eye on the specific services and products you have and make a list of the most popular sellers. Consider creating promotional tools and making those items or services as prominent as possible to catch attention.

Promote


Concentrate on your marketing. Remember, potential customers need to be aware that your business exists.

● Consider how you can market your business for free or as little expense as possible. Remember, you are trying to profit, so keep your expenditures low.

● Social media can be a powerful free tool. Consider using it to promote your business and enlist the help of your friends and family to get them to spread the word.

● Spend time pushing the products that sell well and develop innovative marketing campaigns for struggling stock. If customers know a particular item or service exists, it might pique their interest and make you an unexpected sale.

● Ask customers to leave you reviews and allow everyone who uses your business to offer feedback. You’ll build up a trusted customer base and be seen as more reliable than other businesses. It’s a great way to stand out from the crowd!

Tip – watch what you spend!

The most important thing to do is to keep your expenditures low. Once you’ve made enough to cover your outgoings, you’ll find everything else is a profit. Ongoing profit reporting is a must. Knowing your profit or loss every month means you are reviewing every opportunity to maximize profit.

Be bold and ensure people have a positive experience working with your business. Be creative and adventurous, and stand out for all the right reasons.

Superannuation caps 2024

Super Contribution Caps 2024-2025

The government has just announced that from 1 July 2024 the standard concessional contribution cap will increase from $27,500 to $30,000

The non-concessional contribution cap which we calculate as four times the standard concessional contribution cap will also increase from $110,000 to $120,000.

This will also bring about a higher non-concessional bring forward cap of $360,000 if triggered in the 2024/25 year onwards.

We encourage our clients to continually review their superannuation plan. In many cases superannuation is an effective strategy moving forward as you are nearing retirement . Please contact us if we can assist you in this area

divorce and your business

Divorce and your Business

Navigating the Challenges and Moving Forward

Divorce and your business. It can be a difficult and emotionally challenging process, and when a small business is involved, it adds another layer of complexity. A failed marriage may not directly cause a business to fail; it can significantly impact the business. Let’s explore where husband and wife work daily together in the business and where the wheels fall of the marriage.

The intersection of personal and professional lives can create unique challenges for couples who decide to end their marriage while still running a business together.

According to the website Marriage.com, it has been estimated by divorce lawyers that the divorce rate among entrepreneurs is approximately five to ten per cent higher than the average rate.

This means that, with the divorce rate in the USA being around 38%, the divorce rate for entrepreneurs could range from 43% to 48%. No doubt, it is similar trends in Australia as around the world.

Divorce is an emotionally charged event, and when business ownership is involved, the stakes can feel even higher. The tensions between the former spouses who continue to work together at the company can also create challenges.

The end of a personal relationship can significantly impact the dynamics of the business, affecting decision-making, communication, and overall productivity. It’s crucial for both parties to recognise and address the emotional challenges that may arise during this process.

One partner may often leverage the situation to cause employee unrest or divert funds to their own advantage.

One common issue that arises during divorce is a breakdown in communication.

As emotions run high, it can become increasingly difficult for divorcing spouses to communicate and make decisions together effectively. This breakdown in communication can directly impact the business’s day-to-day operations, leading to delays, misunderstandings, and potential financial losses.

Another emotional challenge is the conflicting interests of the divorcing spouses. While they may have shared goals and visions for the business before the divorce, their individual priorities may shift as they navigate the separation process.  One partner may want out. This misalignment of interests can create tension and disagreements, making it challenging to move forward and make decisions that are in the business’s best interest.

As with any business dispute, a strategy needs to be carefully considered. We can assist here as we specialise in helping people exit from their business in times of dispute to protect their interests. Sometimes, you may feel you are being forced out by an aggressive partner.

When going through a divorce and your business as a small business owner, it’s essential to understand the legal implications. Therefore, you need to consider the best course of action for the business. Ensure you have a good lawyer who understands how business works and divorce implications.

Business Valuation helps set an independent value.

One of the first steps in the divorce process is determining the value of the business. This involves assessing the business’s assets, liabilities, and overall financial health. Hiring a professional business valuator, independent of both partners, can help ensure an accurate assessment and avoid disputes over the value of the business.

In some cases, it is logical that one partner continues and the other is bought out. This may be an easy discussion or an emotional one where one partner feels like they are forced to leave.

Property Division

The division of assets is critical to any divorce settlement, and the business is no exception. There are several approaches to property division, including selling the business and dividing the proceeds, one spouse buying out the other’s share, or continuing to co-own and operate the business together. Interestingly, of late, we have seen many clients romantically separate but still come together for the business. An improved relationship helps rebuild the years of bitterness that prevented the business from growing in the past.

Reviewing any existing shareholder or operating agreements is essential if the business is co-owned with other partners or shareholders; this is especially critical if outside owners are also involved. These legal documents may outline the process for transferring ownership in the event of a divorce and provide guidelines for resolving disputes. Therfore it’s imperative to seek the advice of a good lawyer here.

A collaborative approach can be particularly valuable for couples who choose to continue co-owning and operating the business post-divorce. By establishing clear roles, responsibilities, and decision-making processes, the former spouses can maintain a productive working relationship while keeping personal issues separate from business operations.

In some cases, once the initial anger, separation and legal matters are dealt with, there can be a sense of calmness. Former couples then acquaint each other and use the business as a common neutral ground to continue moving forward.

It can sometimes improve the business as matters of personality and indecision have been resolved, and a new journey begins.

These are crucial considerations, as the fate of the business can be impacted by the decisions made during the divorce proceedings. In any dispute of divorce and your business, what strategies will each partner employ to gain an advantage? How will a marital dispute affect the division of the business assets? These are all important factors to consider when navigating a divorce involving a business.

Once the divorce process is complete, developing a plan for moving forward and ensuring the business’s long-term success is essential. Here are some strategies to consider:

Redefine Roles and Boundaries post-divorce and your business.

After a divorce, redefining roles and boundaries within the business is crucial. Clearly establishing each party’s responsibilities, decision-making authority, and areas of focus can help minimise conflicts and ensure a smooth transition. This also includes parity of reward vs effort and how major decisions will be made.

Develop a Succession Plan

A succession plan is essential if one spouse decides to leave the business or circumstances change. This plan outlines how ownership and management will be transferred and ensures business continuity. This can assist in the divorce settlement negotiations.

In many cases, there may be a plan that will exit the business, and a value-building plan is implemented to plan for the sale of the business. In any divorce and your business, distractions and emotions can lead to further hemorrhaging of profits. Once a plan is devised, stick to the narrative.

Navigating the complexities of divorce and your business ownership requires professional guidance. Working with experienced attorneys, accountants, and business advisors can provide valuable insights and help you make informed decisions that align with your personal and professional goals.

Divorce and small business ownership present unique challenges that require careful consideration and planning. Divorcing couples can navigate the process more effectively by addressing the emotional issues, understanding the legal implications, and adopting a collaborative approach. Moving forward post-divorce requires redefining roles, developing a succession plan, and seeking professional guidance. With the right strategies in place, it is possible to separate personal and professional lives while ensuring the business’s continued success.

Why Managing Your Profit Margin is Crucial for Business Success

Profit Margin vs Markup can be calculated and result in different outcomes 

Profit margin and markup are separate accounting terms that use the same inputs and analyze the same transaction yet show different information.

 Both profit margin and markup use Revenue and costs as part of their calculations. The main difference between the two is that a profit margin refers to sales minus the fee of goods sold, while markup is the amount by which the cost of good increases to get to the final selling price.

Understanding these two terms can help ensure that price setting is done to get the best profit for your product or service.

 If the price setting is too low or too high, it can result in lost sales or profits. Over time, a company’s price setting can also have an inadvertent impact on market share since the price may fall far outside of the prices charged by competitors.

  • Profit margin and markup are separate accounting terms that use the same inputs and analyze the same transaction, yet they deliver different results
  • ion.
  • Profit margin refers to the Revenue a company makes after paying the cost of goods sold (COGS).
  • Markup is the retail price for a product minus its cost.

An understanding of the terms revenue, cost of goods sold (COGS), and gross profit are important.

Your Revenue refers to the income earned by a business for selling its goods and services.

COGS refers to the expenses incurred by manufacturing or providing goods and services.

GROSS PROFIT profit refers to any revenue left over after covering the expenses of providing a good or service.

Making sure your cost of goods to Revenue is important

Monitoring the gross profit margin is essential for several reasons, as it provides critical insights into your business’s financial health and operational efficiency. Here are the key reasons why:

A higher margin suggests that the company is selling products at a higher markup over its costs, signifying better profitability.

Monitoring gross profit margin helps you as the business owner identify trends in cost structures and take action to manage costs more effectively. If the margin is declining, it could signal rising production costs or pricing pressure, prompting a review of suppliers, costs, or production processes.

Your product’s gross profit margin can influence pricing strategies. Understanding the margin allows businesses to adjust prices without dipping below profitability thresholds. It’s crucial Businesses can identify the most and least profitable by monitoring gross profit margins for different products or services. This information can guide resource allocation, product development, and marketing strategies to focus on the most lucrative areas.

Yes, increasing your markup can potentially lead to better gross profit margins, but it’s important to approach this strategy carefully to ensure it doesn’t negatively impact sales

Before raising prices, it’s crucial to understand your market’s price sensitivity. If your customers are price-sensitive, a higher markup could lead them to competitors. Market research and testing can help you assess how price changes might impact demand.

After adjusting your markup, closely monitor sales data and customer feedback. This will help you understand the impact of price changes on demand and customer satisfaction. Be prepared to adjust your strategy if you see adverse effects on sales volume.

While focusing on increasing markup, look for ways to reduce costs without compromising quality. Improved cost efficiency can enhance your profit margins without needing to rely solely on price increases.

Consider implementing price increases gradually. Sudden, significant increases can shock customers and drive them away. Smaller, incremental increases might be more palatable and less likely to cause a negative reaction.

Profit margin refers to the Revenue a company makes after paying COGS. The profit margin is calculated by taking Revenue minus the cost of goods sold.

The difference is shown as a percentage of gross Revenue.

For example, if a company sells a product for $100 and it costs $30 to manufacture the product, its margin is $70 or 70% gross margin

Profit margin is sales minus the cost of goods sold. Markup is the percentage amount by which the cost of a product is increased to arrive at the selling price.

Markup

Markup shows how much more a company’s selling price is than the amount the item costs the company.

Therefore the greater the markup, the more revenue a company makes. Markup is the retail price for a product minus its cost, but the margin percentage is calculated differently. In our earlier example, the markup is the same as gross profit (or $30) because the Revenue was $100 and costs were $70. However, the markup percentage is shown as a percentage of costs as opposed to a percentage of Revenue.

However, using the same numbers as above, the markup percentage would be 42.9%, or ($100 in Revenue – $70 in costs) / $70 costs.

Profit margin and markup show two aspects of the same transaction. Profit margin shows profit as it relates to a product’s sales price or Revenue generated. Markup shows profit as it relates to costs.

Markup usually determines how much money is being made on a specific item relative to its direct cost, whereas profit margin considers total Revenue and total costs from various sources and various products.

business real property

Selling my commercial business property!

How do I sell my commercial business property? When selling your business, your business operations and HQ are an essential and strategic part of your business.

Most businesses operate from a premise of some sort, so when it comes to exit planning, your decisions on what to do with your business premises is equally important as one of the essential items that require serious discussion and planning.

When it comes to planning, the first thing to do is to review how and what you use your office, factory shop, etc., as part of the business on a day-to-day basis. For that reason, the location may be the reason for the business’s success,. Coupled with the possibility that the business building and surrounds such as a hotel, fun park or caravan park may be the selling point. The business HQ property may also have been purpose-built, and your business sale value may be exploited if the business and property are sold as one package.

Further your business may have multiple premises to consider, which factor into the strategy along with what can be sold, consolidated, and required moving forward.

Strategic Review of the Business, how it operates and where

As part of the exit strategy, take a moment to review the business. In short look at the location it operates to help you work through your exit planning:

  • Will, upon exiting or selling, the business be relocated?
  • If the business is to be sold separately from the property, how does this affect the business disruption?
  • CGT issues?
  • Will the owner wish to sell or retain the property for the next generation, and how will this take place?
  • Are there other uses for the property, e.g., development or retirement?
  • If the business operates from home, consider whether this is the right location for selling the business.
  • What are his wishes for the family and passing the property on to the next generation?

Is your property ready for Sale?

The owner needs to review the property to ensure it is in a sellable state. Take a moment and look at:

  • Access and potential change of Council Zoning. What points of access are there in and out of the property?
  • Fire safety:  Does the property comply with fire safety and other emergency safety factors?
  • Security:  Is the property safe and secure?
  • Surfaces:  Do they feature lead paint and dust? Are the floors slippery, OHS?
  • Hazardous materials and toxins:  Does the building present any dangers associated with asbestos used in its construction?
  • Old fuel tanks and other old substances – Banks hate these when it comes to financing
  • Installed plant and equipment:  Is the equipment, such as air conditioning systems, in good working order and maintained?
  • Lighting: Is the property well-lit for the purpose you intend to use it?
  • Air quality: Is the building adequately ventilated?
  • Is your property have sentimental memories? Will this influence you and should be considered as being held for the next generation

Consider all options!

There are some options to consider when it comes to your business real estate you own. These can be classified as follows:

  • Keep the property and treat it as a long-term investment
  • Transfer to SMSF
  • Sell with business
  • Sell the property separately from the business
  • Relocate the business and develop the property before selling the business
  • Leave to next-generation – family farm
  • Sale-leaseback arrangement

Sell or keep your freehold property

Let’s first look at why you may not sell the freehold property and choose to keep it and sell only the business:

  • It might be too hard to consider – too much work
  • The passing of the land onto family – save for subsequent generations, so needs to be kept
  • The property value may exclude or reduce the number of  potential interested  buyers if the property is sold with the business
  • You may start another business on the property
  • It is better sold as a development opportunity
  • Maybe a good long-term investment
  • Strategy – especially for hotels etc., where you may wish to sell the business but take back long-term for a family
  • Your real property may have been used to guarantee a business loan, i. Selling the property may impact another loan security used in another part of the business that is not being sold.
  • The business may have multiple uses, or some businesses may work on the same premises.

Why you may consider selling the best option!

Opposite to the above, here are some valid reasons why you would sell the property at the time of selling the business:

  • Some businesses need specialised buildings and assets from which to conduct their operations. Therefore, you may have the opportunity to sell the property to a buyer who appreciates the attributes of the building.
  • When deciding to sell the business,  will the purchaser of your business wish to relocate it to another location and may leave you with an unwanted property in the future
  •  Investors avoid investing in highly specialised assets like laboratories or dedicated production facilities. The primary risk for investors is the use of the building should the tenant company, the buyer of the business, default or not renew at the end of the lease period.
  • If your business is specific, it would most likely be best sold with the business for the buyer to have business certainty.
  • Time to reassess the financial plan for retirement
  • Issues of maintenance that will require significant capital moving forward.

Whatever you intend to do, take time to make sure the structure you have chosen to hold the business vs the property works for you from a tax and estate planning perspective.

Reduce the CGT pain – use the tax concessions available for small businesses and the sale of your business commercial property:

  • General 50% discount but not for Companies and reduced for SMSF
  • 15-year exemption: If your business has owned the premises for 15 years and you are 55 or over, retiring, or permanently incapacitated, you will not have an assessable capital gain when you sell.
  • If you have held the property for less than 15 years – it must be held for 7.5 years
  • 50% active asset reduction:  You can reduce the capital gain on your premises by 50%.
  • Retirement exemption:  Capital gains from the sale of your premises are exempt up to a lifetime limit of $500,000. If you are under 55, the exempt amount must be paid into a complying superannuation fund or retirement savings account.
  • Rollover: You can defer your capital gain from the sale of the business until another event happens that crystallises the gain. For example, suppose you sell your existing business premises and buy different premises for your business within a specified period. In that case, you can defer your capital gain until the new premises is sold down the track.

Traps when utilising the CGT concessions.

It is crucial to check that assets, such as the business real property owned by the taxpayer, have been held by a ‘connected entity’ for at least half the business ownership period (or 7.5 years).

Where the necessary level of ‘connection’ does not exist, it may be possible to implement a restructuring without material cost to ensure that the entities are ‘connected. ‘

Selling your business property: do you meet the definition of an Active Asset?

Where there is a question of whether the amount paid constitutes “rent”, a pivotal factor to consider is whether the occupier has a right to “exclusive possession” of the property. The payments will likely be classified as rent if such a right exists.  – means no active asset!

If the arrangement allows the occupier only to enter and use the premises for specific purposes and does not amount to a lease granting exclusive possession, the payments are unlikely to be rent.

In summary

  • Exit planning requires advisors to review all aspects of the business operations, and the business location and premises impact the pathway chosen to obtain the best result for your client.
  • Don’t ignore the legal implications of the property regarding lease and ownership.
  • Think of generational ownership issues and how they may impact
  • Look at specific property types and intrinsic matters
  • If you ask a purchaser to relocate the business away from the present location – think about how and the implications for the business sale and ongoing stability. Also, the cost of relocation
  • Plan the Tax, GST and stamp duty implications of the decision
  • Don’t leave the planning too late

Of course, planning for any business should be part of every person’s business exit plan. Please note this is general advice. We welcome you to book a time to discuss your affairs and help you plan for a wealthy retirement.

Cash Flow Planning

Cashflow planning for small business during the holiday season

The holiday season brings joy and celebration, but for small businesses, it can also bring challenges when it comes to cashflow planning

Cashflow, the lifeblood of any business. Cashflow is even more crucial during this period. Small businesses are starting to experience delayed payments, reduced sales, and increased expenses due to safety measures and additional costs associated with remote work or implementing safety protocols. The holiday season brings slow down and couple with higher interest rates the economy is changing
To address these challenges, small business owners must adopt proactive cash flow management strategies.

Between now and the 15th of January 2024 can be a cashflow bumpy ride for many small business. Its time to implement cashflow planning and effective strategies to manage cashflow. You can as a small businesses navigate through the Christmas season with aim of maintaining a healthy cash flow.
Here are our tips to make you get through the crazy festive season

Forecast and Cashflow Planning for Irregular Expenses for better cashflow planning

The festive season often comes with additional expenses that are not part of the regular operating costs of a business. These can include staff parties, client entertainment, and Christmas gifts. To ensure you have sufficient cash flow to cover these expenses, it is crucial to forecast and plan ahead.
Take into account the estimated costs of these irregular expenses and incorporate them into your overall budget. By doing so, you can avoid any unexpected financial strain and ensure you have enough cash on hand to cover these festive expenditures.

Additionally, it is important to consider any potential price increases during the holiday season.

Extend Accounts Payable and Optimize Cash Inflows

Maintaining positive cash flow during the holiday season can be a delicate balancing act for small businesses. One effective strategy is to extend your accounts payable, which involves delaying payment to your creditors for as long as possible. By doing so, you can reduce cash outflows and preserve more cash on hand.

Consider negotiating longer payment terms with your suppliers or vendors, and take advantage of any discounts they may offer for early payments. This is an old trick used in cashflow planning but be careful you don’t starve your suppliers who may in turn not supply you moving forward if you are a reliable payer . It’s a balancing act!

On the other side of the cash flow equation, it is crucial to optimize cash inflows. Actively communicate with your customers about changes to payment cycles and important cut-off dates. Issue invoices promptly and follow up on payment to ensure timely receipt of funds. Offering options such as partial payments or early payment discounts can incentivize customers to pay sooner, improving cash inflows during the Christmas season.

Maintain Active Control of Invoicing

Send our regularly – remind and follow up those not adhering to your payment terms , this is crucial for cashflow management.


Invoicing is a critical aspect of cashflow planning, especially during the holiday season. To maximize your chances of getting paid on time, it is important to maintain active control of your invoicing process. Send out invoices as soon as possible to avoid any delays in payment. Consider implementing automated reminders to gently nudge customers about upcoming payment deadlines.


In addition, proactively communicate with your customers about your payment terms and any changes that may occur during the holiday season. By keeping the lines of communication open, you can address any potential issues or disputes promptly, ensuring a smoother cash flow and minimizing the risk of late payments.

Utilize Credit Cards for Deferred Payments

For small businesses looking for a flexible cash flow solution during the Christmas season, utilizing credit cards can provide a much-needed buffer. When you pay your business expenses with a credit card, you can defer the payment until your next billing cycle. This can provide you with additional breathing room, allowing you to collect revenue from holiday sales before having to pay off your current balance.
Paying with credit cards also offers the opportunity to earn rewards, such as points or cashback, on your business expenses. These rewards can provide additional value and help offset some of the costs associated with the holiday season.

The downside however is important to use credit cards responsibly and ensure that you have a plan in place to pay off the balances in a timely manner to avoid accumulating excessive debt.

Explore Backup Finance Facilities , helps in cashflow planning

Even with careful planning and effective cash flow strategies, unexpected challenges can arise during the Christmas season. To safeguard your small business against cash flow shortages, it is wise to explore backup finance facilities. These facilities can provide you with additional funding when needed, helping you bridge any temporary gaps in cash flow. For some Invoice finance is one such option worth considering. But it will take time to set up and remember it’s a lag effect and must be repaid
With invoice finance, you can access funds owed to you in outstanding invoices before they are paid by your customers. This allows you to maintain a healthy cash flow by advancing the funds you need to cover upfront costs, overheads, and unexpected expenses. By leveraging your accounts receivable, you can access working capital quickly and flexibly, ensuring your business can navigate through the Christmas season smoothly. y to earn rewards and benefits associated with credit card spending.


Plan for Post-Holiday CashFlow management!

While the focus of cashflow planning during the Christmas season is primarily on generating sufficient cash flow to cover expenses, it is equally important to plan for the post-holiday period. Many businesses experience a lull in sales and cash inflows immediately after the holiday rush. To mitigate any potential cash flow challenges during this period, it is crucial to plan and budget accordingly.
Review your financial statements and cash flow forecasts to identify any potential gaps in cash flow post-holiday season. Consider adjusting your budget and expenditures to align with the anticipated decrease in cash inflows. This can include reducing discretionary spending, negotiating payment terms with suppliers, and exploring cost-saving measures to maintain a healthy cash flow during the quieter months.


Managing cash flow during the Christmas season is crucial for the success and sustainability of small businesses. By implementing effective strategies such as forecasting and planning for irregular expenses, extending accounts payable, maintaining active control of invoicing, and exploring backup finance facilities, small businesses can navigate through the holiday season with a healthy cash flow.
Remember to maintain strong vendor relationships, utilize credit cards for deferred payments, and seek professional advice when needed. With careful planning and proactive cash flow management, small businesses can thrive during the Christmas season and beyond.

Customer Retention Engagement Strategies

🔒 Customer Retention Engagement Strategies . Lets explore Unlocking the Secret to Keeping Your Customers Engaged in a competitive market 🔒

🚀 Small businesses are facing unprecedented challenges in today’s competitive market. With rising interest rates and soaring fuel costs, it’s more important than ever to focus on customer retention strategies that will keep your business thriving. With another interest rate just hitting small businesses we need to start to put strategies in place as we progress into 2024.

Ideas to start customer engagement

💡 But how do you keep your customers engaged in times of uncertainty and into 2024? Let’s explore some actionable steps that can help you strengthen your bond with customers and boost your bottom line.

1️⃣ Show Genuine Appreciation: 💙 Take the time to show your customers that you genuinely appreciate their business. Personalized thank-you messages, exclusive discounts, and surprise gifts can go a long way in making them feel valued and important.

2️⃣ Stay Connected: 📲 In today’s digital age, staying connected with your customers is easier than ever. Utilize social media platforms, email newsletters, and customer loyalty programs to keep them engaged and informed about your latest offerings and updates.

3️⃣ Offer Exceptional Customer Service: 🌟 In a competitive market, outstanding customer service is a game-changer. Go above and beyond to resolve any issues promptly, listen to their feedback, and provide personalized solutions. Remember, happy customers are more likely to spread positive word-of-mouth recommendations.

4️⃣ Tailor Your Offerings: 🛍️ Understanding your customers’ needs and preferences is crucial. Regularly analyze their buying patterns and tailor your products or services to meet their evolving demands. This shows that you value their feedback and are committed to providing them with the best possible experience.

5️⃣ Create a Sense of Community: 🤝 Build a community around your brand by organizing events, webinars, or online forums where customers can share their experiences and engage with each other. This not only fosters a sense of loyalty but also provides valuable insights into their needs and desires.

Take action and make it happen

💥 Remember, customer retention is not just about keeping your existing customers happy; it’s about turning them into brand advocates who will spread the word and bring in new business. sustainability and Corporate Social Responsibility.

Consumers are increasingly concerned about the impact of businesses on the environment and society. Small businesses just as big business does need to demonstrate their commitment to sustainability. They can do this by showing their corporate social responsibility by implementing eco-friendly practices, reducing waste, and supporting local communities. Failure to do so could result in reputational damage and loss of customer loyalty.


Let’s navigate these challenging times together by implementing customer retention strategies that work By showing genuine appreciation, staying connected, providing exceptional service, tailoring your offerings, and creating a sense of community, you’ll position your small business for long-term success.

So now you have read this, what are you going to do to keep clients happy in 2024? Act today , set a sales target to enable you to achieve your results in 2024.

📢 Share this post to help other small businesses thrive in a competitive market. Let’s empower each other to overcome challenges and celebrate the power of customer loyalty! 🙌

Need an accountant who can help talk to Geoff and his team we understand small business

#CustomerRetentionStrategies #SmallBusinessSuccess #EngagedCustomers #BusinessGrowth #ThrivingInACompetitiveMarket

Passion and Grow profits

How to Build a Business You Love, A Business With Purpose: 7 Steps To Help You Find Your Passion And Grow Profits

Creating a business you love is not something that can be done overnight. It requires a lot of introspection, creativity and planning. You can do many small things to ensure your business has a purpose and that it aligns with your values. The key lies in breaking the cycle of doing things just for the sake of it. Instead, create an atmosphere where you’re creating a business for the pure joy of it. The rewards will follow and grow with your passion. In this blog post, we will discuss seven practical steps you can take to help you find your passion, and grow with purpose as a business owner:

Assessing your values

Do you have love and passion for your business? When you first start to consider building a business, the first thing you should do is assess your values. This will help you identify the values that are important for your business, and for you as a person. There are many ways you can go about this; one way is to identify the core values that form the basis of your personality. You can also look at the core values of your industry, and choose those that feel most aligned with your values. Once you have identified your core values, you can also look at how they align with your business. This is important, as you want to ensure your business is aligned with your values.

Define your business’s purpose.

When assessing your values, you must consider why you do certain things. This will help you to decide on a purpose for your business. Purposes are important in business and can help businesses align with their core values, and best fit their customer’s needs. A business with a purpose will generally align more with customers’ needs and have a higher success rate.

Decide on a growth path for your company.

Another important step is deciding on the growth path for your business. This can help you to start aligning your actions to your values. It is important to start with a growth path that fits your values and is feasible. This can help you avoid wasting months or years of your life on a growth path that does not align with your values or business goals.

Develop the practices you can rely on

As you build your business, you will find that much of your time will be spent on practices. These practices can be for your staff members or your own business. Some of the practices you will find yourself investing a lot of your time in are: – Training. Businesses thrive on people who are fully trained and know how to do the job. You will need to invest time in training your staff members on best practices and make them fully aware of your values and purpose. – Managing expectations. In any business, people will have expectations. You must manage expectations by setting realistic expectations and aligning actions with values. –

Planning and forecasting. Businesses thrive on planning and forecasting for profit growth. Again, you will be on a constant planning and forecasting cycle if you get excited about your plan. Planning and forecasting will help you to make well-informed decisions and align your company’s growth path with its purpose. – Day-to-day operations. As an owner, you must monitor day-to-day operations and ensure your practices run smoothly. Practices must be well organized and managed. – Communication. Businesses thrive on communication and must ensure they communicate with their staff members and clients. Communication is a two-way process.

Build a team that reflects your philosophy.

Many small businesses struggle with hiring the right team members. This can be because they did not plan well for their company’s growth. They might not have planned for their hiring, or they might have hired the wrong people. Hiring a team that reflects your philosophy and values can help you avoid many of the struggles businesses face when hiring the right team members. It is important to note that you should hire for fit, and not just for skills. You should hire for values. This does not mean you should hire people with the same values as you, but it means you hire for a values fit. You can hire for values like passion, tenacity, creativity, etc. You can hire for less obvious values, like how people approach work. You can hire for values like high integrity or kindness.

Get out there and just do it!

Businesses thrive when profits grow when they have a purpose; you must align values. It is important to assess your values and those of the industry that you play in. This will help you identify the core values that are important to you and most aligned with your industry. When you have identified these values, you can start working towards creating a business with a purpose and a growth path aligned with these values. One of the practices that you can employ is building a team that reflects your philosophy. This will help you to avoid hiring team members who do not align with your philosophy and help you to get team members who reflect your philosophy.

Recording obsolete stock in your accounting system

Identifying and recording obsolete trading stock write-offs for a small business involves several steps.

Its that time of year, when you should undertake you annual stock take. We suggest to be practical in your approach. Use scales and estimates for small items such as screws , widgets and small items.

A practical approach – obsolete items.

Here’s a general guide on how to approach this process:

  1. Identify the stock items: Begin by reviewing your inventory records and identifying any old trading stock that needs to be written off. Look for items that are damaged, expired, obsolete, or unsellable due to other reasons.
  2. When doing a stocktake, use round stickers (i.e. red dots) or straws to identify those items that you have counted.
  3. Assess the value: Determine the value of the stock items that need to be written off. This can be done by assessing their original purchase cost, current market value (if applicable), or any other relevant valuation method.
  4. Document the write-off: Maintain proper documentation for the write-off. This should include details such as the date, description, quantity, unit cost, and total value of the stock items being written off. Store this information for future reference, especially for tax and audit purposes.
  5. Update inventory records: Adjust your inventory records to reflect the write-off. This helps ensure accurate reporting and tracking of your remaining stock items.
  6. Tax considerations: See Geoff and his team

Remember, if need help contact us .

You should combine your stocktake with a sales budget that should be done for coming year

Once you have undertaken your list let us know and we will help you record it in your accounting system. Happy new financial year.

sabotaging your business

Are you inadvertently sabotaging your small business?

Sabotaging your business can happen in several ways. It’s a silent killer of businesses for growth and success. It’s like wood termites that infiltrates behind the framework of your home as a result when finally uncovered it results disastrously.

Where on the surface, a business can look amazing. Sillly things people do can turn a business into a disaster. So are you quietly sabotaging your business?

The other day I visited a modern-looking café. At the cafe the staff allocated me a table. However they failed to clean it resulting in us having to move the dirty dishes of ourselves. Only a small thing but bad service. Then after we finally ordered a coffee, it came in paper cups . The staff apologized, stating they had run out of cups. Though more likely lack of cups probably they weren’t clearing the tables and understaffed was the main reason for poor service and delivery.

Well, the outcome was a big nar. Next time we will go somewhere else; the poor service sabotaged customer service and what had the hallmarks of an excellent place for a coffee.

How and why people sabotage their business !

While it is unfortunate, there are several ways in which a business owner may sabotage their own small business. As a result here are a few common examples of what we see as pure an unecessary self sabotage of a business

Poor financial management is a killer for a small business . Failing to keep track of finances, not budgeting properly, or mishandling funds can quickly lead to financial problems and the downfall of a small business. Disregarding the ATO debt and even following up with your own debtors will as result lead to a cashflow disaster.

Fail to plan and lack of strategy. Not having a clear business plan, neglecting market research, or failing to adapt to changing trends can hinder growth and sustainability. Without proper planning and strategy, businesses may struggle to compete and survive. This includes exit planning.

Ineffective marketing and branding marketing efforts or a lack of brand development can make it difficult for a business to attract customers. Neglecting to promote the business effectively or failing to build a strong brand identity can lead to limited visibility and diminished customer interest. Unable to project your vision means you may not be attracting the right customers.

The big killer and one that can be easily fixed!

Poor customer service is a massive sabotage for a small business. Failing to prioritize customer satisfaction can damage a business’s reputation and result in lost customers. Ignoring customer feedback, providing subpar service, or not addressing customer concerns promptly can lead to negative word-of-mouth and a decline in sales.

The final one that impacts a business is Internal conflicts and mismanagement: Disagreements among business partners, ineffective leadership, or a toxic work environment can create internal conflicts that distract from the company’s goals. Poor communication, lack of accountability, or an unproductive work culture can impact by undermining employee morale and overall business performance. A toxic environment is a bad business.

A strategy for you to build growth.

Developing your growth and exit plan needs careful planning. A business owner’s reluctance to adapt and lack of resilience can unknowingly sabotage the business. A business owner must adapt rapidly to a changing business landscape. Sometimes the inability to adjust to market trends, consumer demands, or industry disruptions can lead to business failure.

Resilience, flexibility, and a willingness to embrace change are essential for long-term success.
Part of what we do for our clients is help them plan. For growth Growth, prepare for change and plan for an eventual exit.

As a Chartered Accountant and business adviser, we help you through the journey. Ask these questions if you are at a fork in your business journey pathway.

  • Am I happy with my business and my lifestyle?
  • Is it time to consider if the business still lights my passion or am i over it?
  • If your business faces change or uncertainty, are you prepared for it or ignoring it will sabotage the business.
  • What are my options now and into the future concerning my role and ownership in the business?

Any decision about business direction needs to be quietly evaluated. Sometimes not stopping and assessing you and your business as a package is a sure way to sabotage the business. Move forward with confidence by having a plan that works for you with a clear direction that make your business a winner.

business plan

How can I make my small business successful?

How can I make my small business successful is something all business owners strive to do. The road to success is not always smooth, and there are obstacles to overcome. However, with the right strategies and mindset, you can achieve your goals and thrive in today’s competitive marketplace.

In this article, we’ll explore some key tips and tactics that can help you take your small business to the next level. From defining your niche and target audience to creating a strong brand and building a solid online presence, we’ll cover everything you need to know to make your small business a success.

Defining my small business successful vision


Before we dive into the strategies that can help your small business succeed, it’s essential to understand what success means to you. Success means different things to different people, and what may be considered successful to one person may not be to another. For some, success may mean financial independence, while for others, it may be the ability to make a positive impact in the world.
Regardless of what success means to you, it’s crucial to have a clear idea of what you’re aiming for. Setting clear goals and objectives will help you stay focused and motivated as you work towards achieving your vision. It’s also essential to track your progress regularly and make adjustments where necessary.

The importance of a business plan

Having a solid business plan is essential for any small business growth. A business plan is a written and outlines your business goals, strategies, and financial projections. It serves as a roadmap for your business and helps you stay on track as you work towards achieving your goals.
A business plan should include a description of your business, your target market, your competition, your marketing strategy, and your financial projections. It should also outline your unique value proposition and how you plan to differentiate yourself from the competition.
A well-crafted business plan can help you secure funding, attract investors, and make informed decisions about the direction of your business. Our team can help you here.

Understanding your target audience

Knowing your target audience is crucial for the success of your small business. Your target audience is the group of people who are most likely to buy your product or service. Understanding their needs wants, and preferences are essential for creating a marketing strategy that resonates with them.

Once you have a clear understanding of your target audience, you can tailor your marketing messages, product offerings, and customer service to meet their needs.

Developing a unique value proposition

A unique value proposition (UVP) is what sets your business apart and helps with small business growth. It’s the reason why customers should choose your product or service over others. Your UVP should be concise, clear, and compelling.

To develop a UVP, start by identifying your target audience’s pain points. Then, think about how your product or service can solve those problems or meet those needs. Your UVP should communicate the benefits of your product or service in a way that resonates with your target audience.
Your UVP should be prominently displayed on your website, marketing materials, and social media

channels. It should be a key part of your brand identity and messaging.

Building a strong brand identity


A strong brand identity is essential to make a small business successful. Your brand identity is how your business is perceived by your target audience. It includes your logo, colour scheme, messaging, and overall aesthetic.

To build a strong brand identity, start by defining your brand values and personality. Think about what you want your brand to represent and how you want to communicate with your target audience. Your brand identity should be consistent across all your marketing materials, from your website to your social media channels.

Crafting a marketing strategy

A marketing strategy helps in reaching and engaging with your target audience. It is the fertaliser for small business growth. It includes the tactics and channels you’ll use to promote your product or service. A marketing strategy should be tailored to your target audience and should align with your business goals.

Leveraging technology to streamline operations

Technology can be a powerful tool for streamlining your business operations and improving efficiency. There are many software solutions available that can help you automate tasks, manage inventory, and track customer data.

Investing in a customer relationship management (CRM) system can also help you keep track of customer interactions and improve customer service. A CRM system can help you identify patterns in customer behaviour and tailor your marketing messages to their needs and preferences.

Managing finances, and taxes effectively find a good small business accountant

Managing your finances effectively is crucial in making your small business successful. It’s essential to keep track of your income and expenses, create a budget, and plan for unexpected expenses.
Investing in accounting software can help you automate financial tasks and generate reports that provide insight into your business’s financial health. At Gartly Advisory we love working with small businesses. It’s important to work with an accountant advisor who can help you make informed decisions about managing your finances, taxes and your future.

Understand where you are in areas such as:

  • Taxes
  • Profitability
  • Your future
  • And the value of your business

Take our 13-minute in-depth Value Builder quiz and get your free report

Continuously adapting and evolving


Lastly, it’s important to remember that making your small business successful is not a one-time event. It’s a continuous process of adapting and evolving to meet the ever-changing needs of your target audience and the marketplace.

Building a successful small business takes hard work, dedication, and a bit of strategy. By defining your niche and target audience, developing a unique value proposition, building a strong brand identity, and crafting a marketing strategy, you can create a business that resonates with your target audience and stands out from the competition.

Leveraging technology to streamline operations, building a strong team, managing finances effectively, and continuously adapting and evolving can help you stay ahead of the curve and achieve your business goals. Remember, success is not a destination; it’s a journey. Stay focused, stay motivated, and keep moving forward.

Paying a Franked Dividend

Should I Pay a Dividend from my company or Keep the Profits in My Company?

Dividend vs keeping the profits in retained earnings

Should I pay a dividend from my company? When it comes to running a successful business, one of the most important decisions you’ll have to make is what to do with your profits. Should you pay a dividend to yourself as the business owner, or reinvest the money back into the company? It’s a question that many business owners struggle with, and there’s no one-size-fits-all answer.

We argue that paying dividends is a great way to reward the owners.

Others believe that reinvesting profits is the key to long-term growth and success. In this article, we’ll explore the pros and cons of both options, so you can make an informed decision that’s right for your business.

Understanding Dividends and How They Work

First, let’s define what a dividend is. A dividend is a payment made by a company to its shareholders, usually in the form of cash or additional shares or allocated to the loan account. Dividends are paid out of a company’s profits and are distributed on a regular basis, such as quarterly or annually.

There are different types of dividends, such as regular dividends, and special dividends.

Regular dividends are the most common type and are paid out on a regular basis. Special dividends are a one-time payment made by the company, usually when the company has extra profits. Stock dividends are paid in the form of additional shares of stock instead of cash.

Pros and Cons of Paying Dividends to Shareholders

Now that we know what dividends are, let’s explore the advantages and disadvantages of paying dividends to shareholders.

Advantages of Paying Dividends

One of the main advantages of paying dividends is that it can be a great way to reward you as the owner. Shareholders receive a share of the company’s profits, and this can help to attract new investors and retain existing ones.

Importantly paying dividends reduces Retained Earnings. This reduction in retained earnings for a small business helps :

  • The flow of profits for tax purposes
  • The impact of holding too much capital that exposed if there is a legal claim against the company.

Disadvantages of Paying Dividends

One of the main disadvantages of paying dividends is that it can limit the company’s ability to reinvest in the business. When a company pays a dividend, it’s taking money out of the company that could be used to fund growth initiatives or invest in new projects. If the company doesn’t have enough cash to fund these initiatives, it may need to raise additional capital through debt or the owners lending money back

Another disadvantage of paying dividends is that it can create expectations among shareholders. If a company pays a dividend, shareholders may expect the company to continue paying dividends in the future.

Advantages and Disadvantages of Keeping Profits in the Company

Now, let’s explore the advantages and disadvantages of keeping profits in the company, rather than paying dividends.

Advantages of Keeping Profits in the Company

One of the main advantages of keeping profits in the company is that it allows the company to reinvest in the business. By reinvesting profits, the company can fund growth initiatives, invest in new projects, and improve its products or services. This can help to increase the value of the company over time and attract new investors.

Keeping profits in the company can also help to reduce the company’s reliance on external financing. If the company has enough cash to fund its growth initiatives, it may not need to raise additional capital through debt or equity financing. This can help to reduce the company’s debt load and improve its financial health.

Disadvantages of Keeping Profits in the Company

One of the main disadvantages of keeping profits in the company is that it can inhibit profit reward and extraction. If the company doesn’t pay a dividend, shareholders won’t receive a share of the profits in the short term.

As the owner this has 2 serious disadvantages

  • NO reward in short term for your hard work
  • Taxation – distributing in a regular method allow better tax planning
  • Not declaring a divided but still taking the money may create a DIV 7a loan – not advisable

Another disadvantage of keeping profits in the company is that it can create excess cash that isn’t being used effectively. A business owner should have a clear plan for how to reinvest its profits. If not, it may be better to distribute the profits to shareholders in the form of a dividend.

Finally take profits as you go and dont leave it for someone else if something goes wrong ie liquidation or legal action . Paying out dividends is like passing the gate way of no return. Be careful though as declaring a dividend with poor trading can lead to insolvent trading!

Criteria for Deciding Whether to Pay Dividends or Keep Profits

Let’s look at some criteria for deciding which option is best for your business.

Analyzing the Financial Health of the Company

One important criterion for deciding whether to pay dividends or keep profits in the company is the financial health of the business. If the company is financially stable and has excess cash, it may be a good idea to pay a dividend. However, if the company is in a growth phase and needs to reinvest profits to fund growth initiatives, it may be better to keep the profits in the company.

Considering the Company’s Growth Potential

Another important criterion is the company’s growth potential. If the company has a high growth potential, it may be better to reinvest profits in the business. Thereby funding growth. However, if the company doesn’t have many growth opportunities, it may be better to pay a dividend . Reward shareholders and extract the excess cash from the business.

Evaluating the Shareholder’s Preferences

Finally, it’s important to consider the preferences of the company’s shareholders. Some shareholders may prefer to receive a dividend, yet the other business owner may prefer to see the company reinvest profits in the business. It’s important to understand the preferences of the company’s shareholders and make a decision that’s in their best interests.

Look at the Franking account as a small business and see how this may impact your future tax liability personally. Remember declaring a franked dividend have credits attached. However, while tax is paid with the lowering of the company tax rate there may be top-up tax payable

Top-up tax is effectively the shortfall of tax that may be incurred in the event that a shareholder is on a higher tax rate ie tax credits typically for small business is @ 25% but you may have taxpayers on higher rates such as 32.5% and beyond

Conclusion and Final Thoughts on the Dividend vs. Profit Debate

In conclusion, the decision to pay a dividend or keep profits in the company is a complex one that requires careful consideration of the company’s financial health, growth potential, and shareholder preferences. While paying dividends can be a great way to reward shareholders and attract new investors, reinvesting profits can be the key to long-term growth and success. Ultimately, the decision will depend on the unique circumstances of each business. By weighing the pros and cons of each option and considering the criteria outlined in this article, business owners can make an informed decision that’s right for their company.

Business plan

A Simple Business plan that works

Unveiling the Power of a simple Business Plan for small business is Your Blueprint to Success

A Simple business plan for small business helps you dream big! Are you an entrepreneur or business owner aiming to achieve success in your ventures?

Do you find yourself constantly facing setbacks and challenges that just make it a little harder hinder your growth? The solution is in the power of a well-crafted simple business plan that kicks goals. A small business action plan is a blueprint that outlines your goals, strategies, and tactics to achieve success. It is your roadmap to success and helps you stay on track towards achieving your objectives.

A well-written and EXECUTED business plan not only helps you secure funding but also provides clarity and direction for your team.

So, let’s dive in and discover how a business plan can be your key to unlocking success in your business.

4 reasons Why every small business needs a simple business plan


A simple business plan is essential for every business, no matter how big or small. It provides a clear understanding of your business goals and objectives, outlines the strategies you will use to achieve them, and helps you identify potential obstacles and solutions. Without a plan, you risk losing focus and direction, making it difficult to achieve your goals.
You need a business plan for several reasons:

  1. Setting goals and objectives: A business plan allows a small business to establish clear goals and objectives for the company, including financial targets, growth milestones, and other key performance indicators. This helps the business owner to focus on what needs to be achieved and how to get there.
  2. Attracting funding: If a small business needs external funding, such as a loan or investment, a business plan is essential. It provides potential investors or lenders with a clear understanding of the business’s goals, strategies, and financial projections, which helps them determine whether or not to invest in the company.
  3. Identifying potential challenges: A business plan forces the business owner to think about potential challenges that the company may face and how to address them. This helps the business owner to be prepared and to have contingency plans in place.
  4. Making informed decisions: A business plan helps the business owner to make informed decisions about how to allocate resources, such as time and money. By having a clear understanding of the company’s goals and objectives, the business owner can prioritize tasks and investments more effectively.

You plan is a communication tool that helps share the your vision, mission, and values with employees, customers, suppliers, and other stakeholders.

Its your roadmap for the business future and helps everyone involved to understand their role in achieving the your set goals

The process of planning will help you identify your target audience! For you to know your competition, and develop a comprehensive marketing strategy. It is a tool that provides a roadmap for your team to follow. Action by setting realistic goals, measure your progress, and make adjustments as needed to ensure your success.

In short, a business plan is the foundation of your business. It provides a clear understanding of your business goals, identifies potential obstacles, and outlines the strategies you will use to achieve success.


Different types of business plans

There are several different types of business plans, each with its own purpose and audience.

Traditional Business Plan
A traditional business plan is a comprehensive document that outlines every aspect of your business, from your mission statement to your financial projections. It is typically used to secure funding, but it can also be used as a tool to guide your business operations.

Lean Startup Plan – recommended – keep it simple but actionable
A lean startup plan is a simplified version of a traditional business plan. It focuses on the essential elements of your business, such as your target market, value proposition, and key metrics. It is typically used by startups that are looking to test their business concept quickly and efficiently.

Internal Business Plan
An internal business plan is a document that is used to guide the operations of your business. It is typically not shared with external stakeholders and is used to keep your team focused and aligned with your business goals.

Strategic Business Plan
A strategic business plan is a long-term plan that outlines your business goals and objectives over a period of several years. It is typically used by established businesses that are looking to grow and expand their operations.

Key components of a business plan:

Executive Summary
The executive summary is the first section of your business plan and provides an overview of your business. It should be concise and compelling, outlining your business concept, target market, and competitive advantage.

Company Description
The company description provides a detailed overview of your business, including your mission statement, history, and ownership structure.

Market Analysis
The market analysis section outlines your target market and identifies potential opportunities and challenges. It should include information on your competitors, market size, and trends.

Products and Services
The products and services section provides a detailed description of your offerings, including their features, benefits, and pricing.

Marketing and Sales Strategy
The marketing and sales strategy outlines how you plan to reach and sell to your target market. It should include information on your advertising, sales, and distribution channels.

Financial Projections
The financial projections section provides an overview of your projected revenue, expenses, and profits over a period of several years. It should also include information on your funding needs and sources.

Management and Operations
The management and operations section provides an overview of your team and their roles, as well as your business operations and processes.

Including these key components in your business plan can help you create a comprehensive and effective document that will guide your business towards success.

YOUR marketing plan

A marketing plan is essential for small business It outlines how to reach and sell to your target market,. It provides a roadmap for your marketing activities. A well-crafted marketing plan can help you to identify your target audience, develop compelling messaging, and choose the right marketing channels to reach your audience.

To create a marketing plan start by identifying your target market. This should include a detailed description of your ideal customer, including their demographics, psychographics, and buying behavior.

Developing financial projections and budgets

Financial projections and budgets are essential. They provide an overview of your projected revenue, expenses, and profits over a period of several years, as well as your funding needs and sources.

To develop financial projections and budgets, start by estimating your revenue and expenses for the coming year. This should include a detailed breakdown of your costs, including fixed and variable expenses.

Next, project your revenue growth over a period of several years. This should be based on your market analysis and sales projections.

Finally, identify your funding needs and sources. This may include loans, investments, or crowdfunding.
By developing financial projections and budgets, you can ensure that your business is financially sustainable and that you have the resources you need to achieve your goals.

We help local businesses in surrounding areas of Ormond, Bentleigh and Brighton to action their projections

Common mistakes to avoid when creating a simple business plan

Creating a business plan can be a daunting task, and it’s easy to make mistakes along the way. Some common mistakes to avoid include:

Focusing too much on the product or service

While your product or service is important, it’s not the only factor that will determine your success. Be sure to focus on other key components of your business plan, such as your target market, marketing strategy, and financial projections.

Ignoring your competition

Understanding your competition is essential to developing a successful business. Be sure to include a detailed analysis of your competitors in your market analysis section.

Overestimating your revenue projections

While it’s important to be optimistic about your business’s potential, it’s also important to be realistic. Be sure to base your revenue projections on market research and sales data, rather than wishful thinking

Neglecting to update your business plan

Your business plan should be a living document that evolves and changes as your business grows. Be sure to update it regularly to reflect changes in your market, competition, and business operations.
Avoid common mistakes, you can create a comprehensive and effective business plan that will guide your business towards success.

Resources and tools to help you on your way

Here are some useful resources and tools include:

Small Business Administration (SBA)
The SBA provides a wealth of resources and tools for small business owners, including business plan templates, financial calculators, and market research tools.

SCORE
SCORE is a nonprofit organization that provides free mentoring and coaching services to small business owners. They offer a variety of resources and tools, including business plan templates and financial planning tools.

LivePlan
LivePlan is a cloud-based business planning software that provides a variety of tools and resources to help you create a comprehensive and effective business plan.


By utilizing these resources and tools, you can streamline the process of creating ensuring that your plan is comprehensive and effective. Get out there and follow your dreams

Cost reduction and Maximizing Profit in Your Business

Cost reduction by reducing expenses means great profits, right or wrong?

What is Cost Reduction & Why Is It Important for Business Owners?

Cost reduction is one of the most important aspects of running a successful business. It can help businesses save money and increase their profits. But doing it correctly will achieve great results for your bottom line. Expenses slashed for the sake of it may be detrimental. As a business owner, you need to be aware of different cost reduction strategies and how they can help you achieve your goals. By understanding the basics of cost reduction, you will be able to make better decisions when it comes to managing your finances. So let’s look at cost reduction and why it is essential for business owners.

Cost reduction must be done systematically. As the saying goes, you need to spend money to make money. Therefore, cost reduction should be evaluated with what the end game is to achieve profit improvement and efficiency.

Easy ways to Reduce Costs in Your Business

Are you looking for ways to reduce costs in your business? Well, look no further! From taking advantage of new technologies and automation to cutting unnecessary expenses! First of all, a cash budget is an important tool to use. This helps you monitor expenses against actual.

Our latest Value Builder email that we have engaged with our business clients this month looked at a simple way to help work out which costs could be reduced. (if you want to join this email list call our office on 95979966)

Let me introduce you to Derek Morin.

Morin founded Tabarnapp to create after-market sales applications for Shopify website owners.

The business was a success, but when his partner, who handled the company finances, left the company, Morin was forced to look closely at his profit & loss (P&L) statement. Morin saw potential improvements, so he made notes in the margin next to each line item he wanted to change as part of his cost reduction strategy.

To save time, he started using a single letter beside each entry to represent the action he wanted to take:

P stood for “Plus,” something profitable, and he wanted more.

U stood for “Unnecessary,” an expense he could eliminate.

R stood for “Replaceable,” a cost that could be replaced with a better or cheaper option.

E = equal no change required

Simply known as the “PURE.” method!

Morin treated the PURE method like a game.

Every month he scrutinized his P&L with the same four-letter system. Morin engaged his team to act on each item that needed improvement. He became obsessed with squeezing out a few more dollars of profit every month.

Tools & Services That Can Help You Reduce Costs

Are you looking for ways to reduce costs without sacrificing quality? Cash budgets and reviewing the cost drivers in your business are essential. Typically wage costs are high ticket cost items. Look how you can get the most out of this resource by increasing productivity.

Look for Profit leaks that are a reality for many small businesses and can significantly impact their bottom line. Therefore, it is crucial to identify and repair these leaks as soon as possible to maximize profits.

Profit leaks can occur from both Revenue and Expenses.

Common Causes of Profit Leaks in Small Businesses, so start reducing unnecessary costs.

Small businesses often face a lot of challenges when it comes to managing their finances. For example, profit leaks can be a huge source of lost income and can cause severe damage to the company’s bottom line.

Cost reduction strategies are essential for small businesses to remain competitive and increase their profits. Implementing cost-saving measures can help companies reduce expenses, increase efficiency, and maximize profits. In this article, we will discuss various strategies that can be used to reduce costs and increase profits for small businesses. These strategies include streamlining processes, lowering overhead costs, outsourcing non-core activities, leveraging technology and automation, improving employee productivity, and taking advantage of tax incentives.

As the economy faces a potential recession or, at the very least, interest rates bite, now is the time to take proactive action on those costs that may now not be adding value to the bottom line.

Sales tools for small business

Effective Sales Tools for the small business smart checklist

Do you use tools that help grow sales in your business? Sales are the lifeblood of any business. Yet how many of us have had training in closing a sales deal as small business owner? With a new year about to start, it’s time to review your sales process and help your business grow.

Set a budget that you and the team can aim for in 2023

Working with your customer

The art of selling is to focus on the prosperity and happiness of your customers!

Don’t bother telling the world you are ready. Show it. Do it.” – Peter Dinklage

Setting up an effective CRM system lets you manage your customers and their relationship with you. Are your customers frequent users of your business that need weekly or monthly sales follow-ups? Not only about purchasing but post-sale follow-ups. These measures all drive sales. You can plan as sales intelligence allows you to understand your customer’s future needs.

For more information about factors like occupancy rates etc, see our other article keeping customers coming back.

The more touch points you have with a customer, the more chances they will remain with you. The longer they remain with you, the more valuable they become, leading to business value. Business value is what will deliver you business freedom


Take a moment and ask yourself how much in terms of revenue my business has done:
– For This week
– For This year
– Compared to this time last year

Are you having the best year ever? Are you monitoring these vital statistics?

After you have addressed these vital questions, now look at the trends. Data in your accounting system is your friend. Look at:
– Trends of turnover
– Forward orders
– What sells when, how and why
– What doesn’t generate a large margin
– What stock gathers dust, and why

So your XERO, Quickbooks or MYOB will be able to produce some of these valuable sales reports. Accountants like us can help you work out what is profitable and what should become a runt or no longer stocked product or service.

Your sales department should be focused machine on the yearly budget. What I hear you say “ I don’t have a sales department “ If you don’t, then adopt one, even if is you.


Your sales checklist to create effective sales tools

Check if any of the statements apply to you.

  • I do not waste time training people who are not trainable in sales.
  • I manage the company’s daily sales quota.
  • I always keep sales brochures available for potential customers.
  • I keep a written copy on just in case.
  • I know how to close a sale so that the customer benefits and I make money.
  • The company supports my sales effort wholeheartedly from concept to close.
  • I have a multifaceted system of referrals and word-of-mouth.
  • I am fully aware of what customers need and want and adapt to them.
  • I keep sales and marketing costs low, even if it means lost sales from time to time.
  • I make my appearance, company, and product as attractive as possible.
  • I create focus groups and record responses and reactions for my evolving action plan.
  • I involve every staff member in various aspects of strategy development, allowing each the opportunity to contribute.

Look at where you are taking your business’s sales.

In small businesses, effort = reward. Small leads to large, and smart sales plans lead to profit and adding value to your business.

Ignore your accounting system at your own peril. Make sure you monitor your sales, follow the trends and focus on the end game. A healthy sales result for 2023!

business partnerships

Should I be running my business as a partnership

Running my business as a Partnership or as a sole trader you need to tread carefully.

These simple entities are popular, as they are easy to set up. They are also simple to manage and have fewer complications than that of a company or a family trust, making reporting easy to prepare.
However, they are most suited to businesses operated by family members, individuals or those working on a small scale.

Partners in crime – mates dont always make good business partners


It’s worth noting that a partnership can be between people, trusts or companies. A sole trader is just you.
The danger lies in where the partners are individuals. This joins them at the hip, and they have the same legal liability as sole traders. This means that “YOU” can become personally liable for all partnership debts. Yours and your partner’s.

For simple arrangements, there are minimal partners needed to form a partnership. Husbands and wives are easy . They often have no need for a partnership agreement. A bank statement in joint name will be sufficient evidence for the tax office to recognize that a partnership is trading. This is further evidenced by the ABN details recorded.

Friends and unrelated parties often start partnerships. While it is crucial that a partnership agreement is executed, in our experience, it usually isn’t. In fact no one even thinks about the partnserhip rules as they are so keen to make the business happen.

Sometime its not a great idea to be in partnership at all . Take John Dutton from Yellowstone . When you like to make your own decisions, being in partnership wont work. He is a strong willed man and what he says goes. If your a John Dutton then dont go into business with anyone as it wont work.

When a dispute often arises over money, happier times and past friendships go out the door. All handshake agreements are forgotten, and conflict resolution often becomes protracted if no formal agreement exists.

In summary, a partnership agreement should indicate what each partner contributes to the business, either in the form of intellectual, equipment, capital or time. It should also outline how the profits will be split.

How often are partners paid profits, and who does what? There are no wages paid to partners in a partnership; therefore, this often is one reason other entity structures work better.

Does a business as a partnership pay tax?


Partnerships as an entity and therefore do not pay tax.
The profits the business makes are distributed to the partners.
The partners pay tax at their applicable tax rate. The good thing is that losses get distributed directly to the partner and, in many cases, can be offset against other income.


Likewise, the amount of loss that can be offset against a partner’s other sources of income is their share of the partnership loss and not the amount of money they contributed to the Partnership. The ability to distribute losses can be a tax benefit in the set-up stage of a business. Likewise for those who act a sole trader.

Joint debts – DANGER

Like a marriage, Under partnership law, each partner is jointly liable for the Partnership’s debts.

This is where danger can strike as if one partner is financially unable to pay their share of the partnership debt; then creditors look to the other partners to make good. In the event of the business failing or a claim for damages against the business not being covered by the business’s assets, each partner’s personal assets are available to meet the debts.

There are no disadvantages to a partnership relating to Capital Gains Tax. Partners can claim small business tax relief on the sale of a business.CGT tax liability. This can be split when a partnership with more than two owners is involved in a business.

What are my business structure options

Most business owners are conscious of putting a fence around their business and protecting themselves from legal action for negligence, debt and the ATO. It is why acting as a sole trader or in a partnership has personal exposure and could be likened to walking on a tip rope over a high cliff.


For some starting out as a sole trader or Partnership is a cheap and easy option to put a toe in the water. However, if the business is successful, it is beneficial to stop and reconsider. I am using the most tax-effective and protective structure for me moving forward.

Reach out if we can help you further help on 95979966

Small business cashflow

Small business cashflow is so important. This is highlighted in this week’s Accoutantsdaily article about cash flow. What’s highlighted is an enormous gap for many small businesses.

The last 2 years have highlighted major issues for small businesses and cash flow is one on top of the list.

Small businesses have been plagued by closures and staff absenteeism due to Covid. This can account for why some businesses’ cash flow is facing an uphill battle in recovery. But there is also a fundament lack of planning by some small businesses. Not knowing where you going is like a hose that you turn on it flicks and turns and you have no control.

Cash flow when it trickles it is painful!

Typically when cash flow impacts things blow out. Our friendly ATO becomes the bank of last resort. Changes in Debt reporting on CRA reports of tax debt may make it harder for some small businesses to recover. It’s a tool the ATO now can use to be recognised as a Creditor in the public domain like any other supplier. Don’t ignore the ATO as they won’t don’t like taxpayers that don’t engage with them. Better to open up to them about your situation than ignore them and shovel your way out of a hole later on.

Nether the less positive cash flow is an opportunity that every business can undertake.

Don’t be like an emu with its head in the sand. Take a positive stand. Start with predicting when the cash will come in. Fundamentally 80% of the hard work is done if you know that the cash is coming in the door. Struggling to predict cash in the door . Start with Sales Budget . Look at last year’s monthly turnover and then replicate that into the coming year. Then don’t forget to invoice your customer. It’s surprising how many people forget or delay the invoicing process

Slash costs but make sure it is for the right reason

When it comes to costs, slash where appropriate but don’t slash costs that are fundamental to the business or costs that help you make money. As a small business accountant Gartly Advisory can help you.

When you’ve worked out your budget put it straight into your cloud software and each month see if the actuals are close to or better than what you predicted. So when the cash starts rolling in remember the golden goose 10% for the ATO, 10% for investment and 10% for you.

local manufacturing accountant

Local manufacturing

Local manufacturing businesses based in the South East area in Melbourne such as Moorabbin and areas such as Currum Downes and Seaford can take advantage of bringing forward tax incentives to help their manufacturing business.

Helping local manufacturing businesses

Gartly Advisory are Melbourne Accountants based in Ormond. We love servicing manufacturing businesses. Our advice to the manufacturing businesses is that we help is to take advantage of these incentives. Modernise your systems and save tax!

Manufacturing, like every business experiences growth and also tough times. We have seen that those businesses that chose to invest in new equipment and technology thrive ahead of those that don’t.

Technology can save labour costs and also the accuracy of delivery of the product. One of our small businesses was able to almost replace one staff member by investing in the latest machine that delivers quicker and more accurate production of materials.

We work in interesting times but in saying that we encourage our clients to stick to their goals and vision.

As small business accountants, we work with our clients to strategically plan their futures. A successful manufacturing business will understand its metrics. They know how many widgets to produce that result in a healthy gross profit result.

Understand your numbers

Understand your numbers, your capacity and your opportunities. Knowing this data allows for careful planning as your business grows.

Over the next month take the time to analyse three key products that you make and sell. Understand the costs and time components. The next step is to look at your Gross Profit margin and see how this impacts the bottom line? Are you making enough from manufacturing

Understanding your market and pricing gives you a competitive advantage when it comes to growing your customer base. Businesses will be forced to look at price increases moving forward. The cost of manufacturing will increase and therefore price rises will need to be factored in to maintain profits. Make sure you have the data to do so.

Gartly Advisory are Chartered Accountants in Ormond. We love helping manufacturing businesses. Reach out and see if we can help you to make your manufacturing business shine in the local Melbourne market.

Customer Discounting for a trade business leads to profit leaks

Customer Discounting in your trade business is a quick race to the Bottom

Some tradies will start customer discounting to land enough renovation or trade jobs to just survive in the current building market downward trend or to keep their sales pipeline busy. So right they have work, they will survive?

WRONG – don’t do customer discounting!

Right about the “just survive” bit because survival is all you derive when you discount.

Discounting really is a race to the Bottom. The bottom line and an empty bank account is what hits you with this stragey!

Geoff Gartly has been looking after small business trade clients for many years. He has seen what works and what doesn’t. We know that discounting is NOT a recommended business strategy.

Profit can be tight sometimes when you are quoting but don’t discount to get the job!

We got your back – our tips on how not to dig a hole with customer discounting!

So here are a few tips to help you quit discounting in your trade business.

Decide that you can’t afford to discount

Unless you have heaps of spare $$$ in the bank you can draw on to tide you over several years make the decision that you cannot afford to customer discount anymore.
It’s a bad habit to get into at the best of times. But, if you do it for too long, it can become a hard habit to break. Sure, you may need to adjust your prices to meet market conditions, but that is quite different from getting into a discount war against another builder or tradie. Do that, and you both lose?

We help our tradies get the pricing right so that the hourly rate allows for GP, admin , mistakes and anything else that can impact.

Re-evaluate your service.

Make a (long) list of all the things you provide for your customers and make customer discounting not one of them. List things that are not in a typical estimate. If you are a good builder or tradie, you actually provide your client with many things that they don’t pay for. So, increase the value of your estimate by letting them know all the other things you provide. Improve your sales delivery and your customers will feel like they are getting a fair price!

Determine to walk through the fear (of missing the sale).

This is the hard part because it’s so personal. Yet it is an absolute requirement if you are going to rise above the discount mentality because facing fear head-on is the only way to overcome it. Sometimes you just need to talk to someone who has done it before to know it is OK

It takes courage to stick to your prices, but if it ensures you retain decent margins and make decent money, then it’s worth learning to do. Right?

To do it right, you need to add value to your trade business by marketing quality and service, not cheapness and discounting. Set your trade companies vision and start marketing this to your customers

newsletter

Weekly Newsletter March 31st

The Federal Budget 2022


Here is our quick summary of the Federal Budget handed down on Tuesday. The Budget focused on keeping business and the economy going during uncertain times. It would be also be drafted with a focus on the following Federal Elellection due soon. Media reports indicate that if there is a change of Government, the ALP will publish a newly revised budget in July or August this year, which may not result in all initiatives etc., being fulfilled or modified.


Here are the critical points that we believe will impact our clients:
• 120 % tax deductions for small and medium business spending on Training and new technology
• No further extending the temporary full expensing of equipment investments
• $1.3 billion to businesses to fund apprenticeships
• ATO will be allocated more money to chase tax cheats
• PAYG system to better match a business trading result
• TPAR reporting changes to make it easier for businesses to report
• Super pension drawdown rates halved till the start of July 2023
• As previously announced before the Budget, the work-related COVID 19 test expenses incurred by individuals will be tax-deductible.


Small Business Full Expensing is finishing up!


The full expensing instant tax deduction has not been extended, meaning businesses will have to install or use the new equipment by June 30, 2023, to claim full expensing provisions.

In replacing full expensing, we have a New Technology & Training Tax Break


The new temporary tax break is for businesses that invest in either new technology or employee training and skills development.

Employee Training
As of Tuesday night, for every hundred dollars a small business spends on training their employees, they will get a $120 tax deduction,

Technology incentive

As of Tuesday night, every hundred dollars small businesses spend on digital technologies — such as cloud computing, e-invoicing, cyber security and web design — results in 120% tax deduction.
Limited to Investments of up to $100,000 per year will be supported by this new measure; however, if you are spending more, please see us as the existing immediate write off provisions still apply till 2023

How it works in real life, reducing the cost of Training or technology!


For example, Smith Co Pty Ltd has engaged an RTA business in Australia to provide Training staff to its employees online. The total cost of Training was $10,000. Smith & Co Pty Ltd will be able to claim 120% (i.e. $12,000, as a tax deduction concerning these expenses)

The True Cost of the Training from a cash point of view


Cost of training $10,000, payable now when you buy it
Claim tax deduction of $12,000 (still to be clarified – 2023 year )?
Real cash tax-saving @ company tax rate $ 3120
Net cost of training $6,880

A reminder that Loss carryback rules still apply for the next two years

Loss carryback provides a refundable tax offset that eligible corporate entities can claim:
• after the end of their 2020–21, 2021–22 and 2022–23 income years
• in their 2020–21, 2021–22 and 2022–23 company tax returns.
Eligible Companies can obtain the offset by choosing to carry back losses to earlier years in which there were income tax liabilities. The offset effectively represents the tax the eligible entity would save if it could deduct the loss in the earlier year using the loss year tax rate. As it is a refundable tax offset, it may result in a cash refund, a reduced tax liability or a reduction of a debt you owe us.
Loss carry back tax offset – Australian Taxation Office. https://www.ato.gov.au/Business/Loss-carry-back-tax-offset/?=redirected_losscarryback

Fuel costs temporary relief

Petrol and diesel excise will be reduced by half for six months, saving 22 cents for next six months. Hoping this is passed on to the small business at the petrol bowser

Tax Bonus when you lodge your 2022 return

Low Middle-income tax offset (LMITO) — in 2022 can put up to another $1,500 against your tax refund once you’ve done a tax return in 2022

Draw down rates for Self Funded Retiree Pensions – 50% reduction till June 2023

New business startup what to do!

Starting out in a new business and being your small business startup journey

I remember many years ago how exciting it was to begin the small business journey.

It has been a journey twenty years later that’s is full of ups and downs, fun and pain and plenty of laughs.

Twenty years in and I have no regrets. In fact, anyone that can do it, should. Yes like all of us I have made some dumb decisions but I don’t have any regrets? No way, in fact, I have also made some good decisions too.

There have been a lot of characters I have met in my business career over the last twenty year’s. Some shady ones, some terrific ones and some that have become lifelong friends. Yes, I have been used, abused and ripped off but I have also been supported, encouraged and led to opportunities.

Starting out needs support


Your business startup relies on lots of support from friends family and associates. You really know who are your friends and where your support comes from. For me, it was my wife and kids who have driven me to success. There have also been many friend’s who have looked out for me along the way.

You see as an accountant many don’t see you as a small business person but there to help others. It took me a long while to accept that I too am a small business owner with the same pain, enjoyment and problems that you too have in small business.

Tips for business startups

So what advice can I give you as a new budding small business owner :

1. Just go for it! Have no regrets and enjoy the ride. Believe in yourself! Destroy the non-believers and the dream stealers. If you make strategic decisions based on evaluation then your business will grow.

2. Set goals. Set a road map don’t amble along in business with no direction. A person who knows his direction might get lost along the way but will always find the way to their final goal or destination.

3. Celebrate success, acknowledge others and enjoy the ride. Failure will happen but pick yourself up learn to understand what went wrong. Remember the sun shines tomorrow and you can do it all again. Don’t give up and follow the plan.

No matter at what stage you are in business a big congratulations It’s not easy to run a small business and the statistics say many don’t succeed in the first three years.

Live life to the fullest and grab every opportunity with no regrets. All the best.

Many of us launch a new business based on an idea or a need to sell our professional or trade expertise.

Business startups offer challenges

Starting a new business will provide you with new challenges and opportunities! It’s fun, it’s exciting and it will be rewarding.

Whatever your reason for starting your new business, your future will be an exciting time. However, it requires careful planning, lots of energy and the ability to follow through with the journey during times of toughness.

Geoff and his experienced team of professionals can guide and advise you on launching your new business and making it successful from day one!

Whether you are yet to start or are in the early stages of launching your new business, we can help you to work through the logistics and questions that everyone has.

Practical startup tips

Here are some practical tips that can help you start your new business:

  • Talk with us so we can gain an understanding of what you are trying to achieve, your dreams and business aspirations.
  • If you are buying an existing business, we can help make sure it’s the right one for
  • We will discuss and explain the different structures available (sole trader, partnership or company).
  • We can set up your company or family trust if that is the right structure for you.
  • We can clarify what you need to do to meet ATO regulations when getting started and applying for an ABN.
  • We will help you establish a practical business plan, cash flow projections, budgets and trading forecasts. We will help you set a 90-day action plan.
  • We can help you present your program to your Bank manager if you’re looking for finance.
  • We can also advise on the best sources of finance.
  • We can work with you to ensure that you set up the right accounting systems in place to manage the financial paperwork.

We have helped lots of small businesses start out. We know you will have lots of questions such as dealing with government red tape and other businesses as this may be something you haven’t done before. We can help you determine what are the essential tasks in the first few months to get your business off to a flying start.

We welcome you to contact us for a FREE initial consultation. Please call us on 03) 9597 9966.

when i die

What happens to my business when I die?

When I die what happens to my business and my affairs? Will my business continue or just stop?

If you were running as a sole trader and you die, in most cases, your legal personal representative will step in . It is their role to manage your business. They can assess if the business needs to be wound up, sold or transferred to a beneficiary.

Your business asset forms part of the assets of the estate. Therefore legally executed will , can help give certainty to your wishes.

Many clients are unsure of the process of what happens once they die.

There are several matters that should be dealt . These need to be dealt with in a timely matter when it comes to a sole trader business.

What happens after I die? The process of winding up my affairs

The process that can take place after death include

  • The business continuation is a going concern ! – The longer the business is left un-managed, the greater chance that the business value may disappear
  • Your executor will take control of your business until its decided upon . It maybe be sold wound up or given to a beneficiary as part of the estate distribution
  • Choose your executor wisely that can deal with your business affairs
  • Until probate takes place, its best to ensure if a beneficiary is to inherit the business that, this takes place as soon as practical. If this cant take place then allow a beneficiary to act as a caretaker mode
  • Reassure customers and suppliers of the situation., Ensure, where possible, that the business remains of value and assets are protected from going missing
  • Chase down outstanding monies and secure the business assets from theft. Stop and people thinking well the business owner has died they won’t care!

The business forms part of the estate and impacts the final distribution to beneficiaries. Often upon the death of a sole trader, there may be outstanding debts to the ATO, suppliers and financiers. If there are insufficient assets upon realisation to pay the debts, the estate is placed in bankruptcy.

Sometimes a business who is a sole trader dies suddenly leaving lots of debt. If the estate is unable to pay, then the estate becomes bankrupt. Pleas talk to us if this maybe your situation for a person you are acting for after death.

For those who run their business in a Company or a Family Trust

If you choose to operate your business as a Company or a Trust, your legal representative should be appointed as the Director or Trustee in your place. In this case, the business would continue. The ownership if the shares were owned by you it may form part of your estate. This may include any loan account owing to or from the Company.

If your ownership of your business is held by your Trust then you will need to consult your Trust Deed and control will also be held by the appointor and or Trusteee. This is an interesting area of law and taxation and we suggest you consult us.

Careful planning required

We suggest careful planning of your affairs. Planning will ensure that when it comes to your business, your wishes and adhered to and that a plan in cases of death has been considered to assist the executor in managing the sale of the business. It is why for many reasons, Life Insurance is recommended. Insurance will ensure that insurance proceeds can cover some of these unexpected business expenses.

If you are an executor you need to act to preserve the business value and we can help here

As a final tip is to make sure all registrations such as GST, ABN, social media accounts and WorkCover have been cancelled. This will avoid recurring notices. We can assist you here!

We welcome you to contact us and discuss a plan so that we can guide you on how you would like to finalize your affairs after the man upstairs has called you for higher duties.

https://calendly.com/geoff-gartly/complimentary-new-client-meetup

Reach out if you need our help

Cashflow stratgey

A smart Cashflow Strategy will generate better business profits!

For many businesses, cash flow is an issue that holds the business back. But, unfortunately, there never seems like there is never enough cash when you need it.

With Christmas around the corner, it’s time to plan. Naturally, a business owner will not want to reduce their cash balance unnecessarily at this time. But, on the other hand, an increase in cash into the business can make life easier and lower the cost of financing. Moreover, squiring the money now can pay dividends in the post-festive month of January.

How to reduce cashflow leaks

 To help you preserve or increase your money, here are our five cash management leaks to avoid.

1. Bloated Bank Fees

Some banks are more business-friendly than others.  Therefore, we recommend you assess the fees you are currently charged and aim to eliminate any unnecessary services.

  •  Is it practical to maintain a   cash balance to avoid monthly fees? Do you charge merchant fees to recover?
  • Are you being charged online banking fees, and are these still necessary?
  • Are you being charged for a high volume of transactions or cash drawer services, and are these competitive with other banks?

Banks are open to negotiation, and we sharpen their pencil for a long term relationship.

2. Are you sure you are paying the lowest amount of taxes you legally can do without entering into tax avoidance? 

 There are several opportunities to review to ensure that you are not overpaying taxes anywhere in your business or personally:

  • Payroll taxes
  • GST tax
  • State and local income taxes
  • Property taxes
  • SMSF – are you in pension mode if you are retiring etc. and can have your smsf pay zero tax

3. The Cheque Is in the Snail Mail!

Customers who take too long to pay you are one of the biggest cash drains in your business. Consider reviewing your terms, asking for deposits, or becoming more aggressive with collections to bring your DSO (days sales outstanding) down. 

When you do, you will see an instant, permanent cash flow improvement. Don’t do work for people that can’t or won’t pay you or are slow

4.  Watch for those unknown bank errors and scammers

You may have an eagle eye on your most extensive bank account, but what about your other cash stashes? 

 PayPal, petty cash, credit cards and business savings accounts are among the places that may not get daily scrutiny.  Ensure those accounts are properly reconciled and have the proper controls so funds don’t go missing or someone else’s transaction ends on your account

5.  It’s in Your Interest

An excellent problem to have is when your bank balances get to be significant

What is your optimum working capital level? First, you don’t need the money immediately, so make it work for you.  Then, make sure that money is still working hard for you by putting the excess in an interest-bearing account, reducing loans or used for more resourceful opportunities. 

Cash is King and so is a good cashflow strategy

We always recommend a cashflow strategy of ensuring your trading company does not become a cash-rich piggy bank. In case of if things go wrong, you leave your cash exposed. Reach out if you would like to discuss this aspect further.

Cash management is important when conducting an import or export business. Planning for funding of containers, currency fluctuations and disruption are all strategic planning matters. We have assisted clients in scenario planning for lumpy cash flow and large inflows and outflows that can happen with these types of operations.

Cash can also disappear when job planning does not happen or the project goes pear shape. Read our article about job management.

Make a your cashflow strategy a priority

If we can help you plug any of these cash leaks into your business, please don’t hesitate to reach out and let us know. A cash flow forward strategy allows you to plan where your working capital can find it hard. If you aren’t using a cash flow plan, then let us help you start the process.

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