binghay-and-co

The FBT year is ending: What you need to do

Mon, 09 Mar 2026 07:29:43 GMT

While the standard financial year ends in June, the Fringe Benefits Tax (FBT) year actually ends on 31 March.

If your business provides benefits like company cars, gym memberships, or entertainment to employees, now is the time to gather your records. For those with company vehicles, please remember to take an odometer reading on 31 March.

We can help you work through the details and ensure you’re not paying more FBT than necessary.

Binghay & Co is a leading Accounting and Business Advisory firm based in Docklands, Melbourne, proudly servicing clients across Australia.

5 things your balance sheet can tell you about your finances

Mon, 09 Feb 2026 07:26:06 GMT

Chances are you’ve heard of the accounting term ‘balance sheet’. But what is a balance sheet? And what does it tell you about your finances?

Your balance sheet is a financial statement that provides a snapshot of your company’s financial position at a specific point in time. It’s an overview of your finances that details three key elements of your accounting.

The formula for the balance sheet is Assets = Liabilities + Equity:

Assets: These are resources your business owns – things like cash, inventory or equipment – that provide future economic value and help generate your revenue.

Liabilities: These represent the company’s financial obligations or debts owed to outside parties – think bank loans, taxes or unpaid invoices.

Equity: This is the remaining interest in the assets after deducting liabilities. Equity represents the net worth of the business or, as the owner, your residual interest in assets after deducting all liabilities.

Ways the balance sheet informs your view of your finances

Liquidity and short-term solvency

By comparing your current assets to your current liabilities, you can use the balance sheet to reveal if the business can meet its immediate obligations. This is vital for ensuring you have enough cash or liquid assets to remain operational and trading.

Capital structure and leverage

The ratio of total debt to shareholders' equity illustrates how your company finances its growth. Are you relying too heavily on borrowed money? Or are you maintaining a sustainable level of debt that helps you fund the next stages in your growth?

Efficiency of your asset management

By reviewing your total assets against revenue trends, you can find out how effectively the company is utilising its resources – things like inventory and equipment – to support your business operations and generate long-term value for your stakeholders.

Working capital position

Calculating the difference between your current assets and liabilities helps you spot the operational capital buffer that’s available. This indicates whether the business can comfortably fund its day-to-day activities or if it faces a looming cash deficit.

Net worth and book value

The equity section of the balance sheet reflects the total value remaining for you, as the owner, after all debts are paid. This gives you a clear idea of the company’s intrinsic value and the overall cumulative financial success of the business.

Want to dig deeper in your balance sheet and financials?

If you’d like to understand more about your balance sheet and accounts, book some time with our team. We’ll be happy to explain more about your financial health as a business

Binghay & Co is a leading Accounting and Business Advisory firm based in Docklands, Melbourne, proudly servicing clients across Australia.

Setting goals for you and your business for the new financial year

Mon, 05 Jan 2026 07:34:56 GMT

The new financial year is a new beginning. As a business owner this a great time for you to reflect on where you are at and think about your business goals for the financial year ahead.

Setting goals is an essential part of personal and professional growth. These could be lofty goals, or even setting out a plan to achieve some more mundane (but equally important) projects. Whether that is getting paid faster, reassessing expenses or bigger things like automation of processes and new markets. You may be looking to expand your business or create more time for yourself.

Having a clear vision and actionable goals can help you achieve your long-term plans. Here are some tips to get you started:

Envision your future : Reflect on what you truly want from your life and how your business can help you achieve those aspirations. Consider where you want your business to be in the next five or ten years. Having a clear endpoint in mind will make it easier to set goals that align with your vision.
Set measurable goals : Vague goals can be challenging to track and evaluate. Instead, focus on setting goals that are measurable. Think about the key metrics you already monitor in your business and how you would like to see them improve. For example, aim for a 3% increase in net profit year-on-year, a 2% reduction in expenses, or acquiring two new customers per month or grow your prospect database by 50%. If you set specific targets, you can easily track your progress and make adjustments as needed.
Develop a plan for each goal : Once you have identified your goals, it's crucial to create a plan of action to achieve them. This can be as simple as jotting down your ideas or engaging in a brainstorming session with your team or advisors. Having a well-defined plan in place will help you stay focused and motivated to follow through.
Monitor your progress regularly : It's essential to regularly check in on your progress towards your goals. Set reminders on your calendar or align your monitoring process with your invoicing cycle. By consistently evaluating your progress, you can identify any areas that need improvement or come up with fresh ideas to help you reach your targets.
Celebrate your achievements : Celebrating milestones along the way is crucial for maintaining motivation and momentum. Plan a reward for yourself when you achieve a significant goal. It could be treating the team to a morning tea, having a day out of the office together or planning an event for the end of the year. Choose something that brings you joy without breaking the bank.

Not sure how to get started?

We can help you with the strategy and identifying the information you’ll need to track, so you can monitor your progress.

Setting goals is just the first step. By implementing these tips and staying committed to your vision, you can turn your long-term plans into reality.

Binghay & Co is a leading Accounting and Business Advisory firm based in Docklands, Melbourne, proudly servicing clients across Australia.

Protecting you and your business: taking out insurance

Mon, 10 Nov 2025 07:43:01 GMT

We all hope that our pathway along the business journey will be smooth and uncomplicated.

But the reality is that accidents can happen, along with unplanned injuries, damaging weather events and legal suits from disgruntled clients.

So, what can you do to protect your business from these potential negative consequences? The answer is to take out the relevant business insurance for your company.

Five common kinds of business insurance policies and how they protect you

1. Public liability insurance

Public liability insurance covers your legal costs and compensation claims if a third party – such as a customer or passer-by – suffers an injury or property damage because of your business activities. It’s an essential policy to take out if you interact with customers in a physical space.

2. Product liability insurance

If a product you design, manufacture or supply causes injury or damage to a consumer, product liability insurance protects you. It handles legal defense fees and settlement costs and is a vital policy for all retailers, wholesalers and manufacturers that produce or sell physical products.

3. Business contents insurance and tools insurance

Business contents insurance covers the cost of replacing or repairing your internal assets – items like computers, furniture and stock – if they’re damaged or stolen from your premises.

Tools insurance covers the cost of repairing or replacing your vital portable gear – things like your laptop, specialist machinery or hand tools – if they’re stolen, lost or damaged.

Having contents and tools insurance in place to cover the expense of repairs or buying new equipment means you can get back up and running without major out-of-pocket costs.

4. Employers’ liability insurance

Employers’ liability insurance covers your compensation costs if an employee falls ill or is injured while working for your business. The specific legal requirements vary from country to country, but it’s often mandatory for employers to take out protection against workplace-related health and safety claims.

5. Professional indemnity insurance

Professional indemnity insurance protects you against legal costs and damages if a client suffers a financial loss because of your professional advice or services. It’s a crucial policy for consultants and experts, shielding your business from client claims of negligence, errors or omissions in your work.

Working with you to understand your insurance needs

Whatever stage you’re at in the business journey, it’s important to think about the insurance needs of your business and the specific areas where you may need protection.

We’re not insurance experts, but we can work with you to define the basic policies you’ll need. We can also connect you with the best insurance brokers and agents for your business type, industry or niche sector – so you get tailored advice on your insurance requirements.

Binghay & Co is a leading Accounting and Business Advisory firm based in Docklands, Melbourne, proudly servicing clients across Australia.

Payday super: what could it mean for your small business?

admin@binghayco.com.au (Binghay Co) — Tue, 20 May 2025 08:54:38 GMT

From 1 July 2026, the Australian Government will require employers to pay superannuation at the same time as salary and wages. This shift—known as payday super - mo ves super contributions from a quarterly cycle to within seven days of each pay run, whether weekly, fortnightly or monthly.

Why is payday super being introduced, and how could it affect your employees and your business?

What payday super means for employees

Better visibility and savings
Employees see their super contributions in real time, making it easier to keep track of savings.
Fairer treatment of casual and part‑time workers
No more missed payments under a quarterly system—everyone’s super arrives alongside their pay.
Stronger retirement balance
For example, a 25‑year‑old on a median salary who currently receives super quarterly could be about $6,000 better off by retirement.

What payday super means for your business

The legislation is not yet final, but consultation closed in April 2025. Moving contributions to each pay run may seem minor, but it could have significant implications for your small business:

Increased administration
More frequent payments will add to your payroll and bookkeeping workload.
Seven‑day payment window
Meeting the new seven‑day deadline may be challenging given banking and clearing processes.
Risk of penalties
The draft bill proposes penalties for late contributions, even when delays occur outside your control.
Closure of the Small Business Superannuation Clearing House
That free service—which currently makes it simple for small employers to pay super—will shut down on 1 July 2026, leaving many wondering how they’ll manage their obligations.

For full details on the proposal and its timeline, see the government’s announcement on introducing payday super and the consultation paper .

Ready for payday super?

With the bill likely to pass now that Labor has been re‑elected, it’s time to review your payroll systems and processes. Contact our team today to:

Audit your current payroll software
Update your procedures to meet seven‑day payment requirements
Plan for the closure of the Small Business Superannuation Clearing House

Let us help you make the transition to payday super as smooth as possible.

Binghay & Co is a leading Accounting and Business Advisory firm based in Docklands, Melbourne, proudly servicing clients across Australia.

Making your business work for you: making enough to retire

admin@binghayco.com.au (Binghay Co) — Tue, 22 Apr 2025 01:23:15 GMT

As a business owner, you may love running your company, but there’s always the underlying thought that, one day, you’ll need to sell and retire. With global markets in flux and an uncertain future, how can you ensure your business is worth enough when the time comes to sell?

Let's look at the core ways your business can be structured to deliver on your own personal, family, philanthropic and leisure goals, now and into retirement.

Creating a business that will fund your retirement plans

Your business should be your retirement nest egg, but how do you ensure it holds its value for a comfortable retirement?

Here are five strategies to boost your business’s value, ensuring you get the return on investment (ROI) needed when it’s time to sell.

Build a business that can run without you

To maintain its value at sale, your business must operate independently of you. Systematise your operations and create scalable processes, so the day-to-day functions are not solely reliant on you. A strong management team that can run the business without you is essential. Autonomy increases the business’s appeal to potential buyers, who want to ensure the company will thrive even after the founder leaves.

Focus on recurring revenue streams

Recurring revenues provide stability and increase your business’s value. Consider subscription services or other predictable income sources. Recurring revenue models significantly raise business valuation multiples, often by 2-3 times compared to transaction-based models. With a stable income structure, you can sell your business for a premium price, giving you the capital needed for retirement.

Invest in intellectual property and licensing

Intangible assets like intellectual property (IP) and brand equity can significantly enhance your business’s value. Consider developing products, processes, or technologies that can be patented and licensed. This creates passive income and appeals to buyers looking for businesses with valuable, long-term assets.

Keep detailed records and keep finances healthy

A business with a solid financial track record is more attractive to buyers. To boost your business’s appeal, maintain strong financial health, a good credit score, and positive cash flow. Rigorous financial tracking and clean books with 3-5 years of profitability will justify higher valuations and greater ROI, making your business a more desirable asset.

Create a strategic exit plan well in advance of retirement

The key to a successful exit is planning well in advance. Work with your advisors to enhance the business’s value, identify ideal buyers, and structure your exit in a tax-efficient manner. Ideally, start your exit strategy 3-5 years before retirement to ensure you have time to focus on succession planning, boosting business value, and securing enough capital for your retirement needs.

Helping you secure your income and lifestyle

You’ve worked hard to build your business, and you deserve a fulfilling, comfortable retirement. But to make that a reality, it’s crucial to plan ahead. Start working on your exit strategy now.

Come and have a chat about your retirement plans and exit strategy. We can also introduce you to independent financial advisers who can offer personalised wealth management advice.

Binghay & Co is a leading Accounting and Business Advisory firm based in Docklands, Melbourne, proudly servicing clients across Australia.

The Coalition's Budget Reply: the business insights

admin@binghayco.com.au (Binghay Co) — Mon, 31 Mar 2025 01:10:47 GMT

The Albanese Labor Government delivered its Federal Budget on 26 March, with limited focus on small businesses—mainly extending energy relief. However, the Coalition’s Budget Reply , presented by Peter Dutton the following day, included several business-focused proposals.

With the General Election now scheduled for 5 May 2025 , both the Budget and the Budget Reply are crucial in outlining the fiscal approaches of each party for the year ahead.

So, how did the Coalition’s response compare to the Government’s plans?

Overview of the Coalition’s Budget Reply

The Australian Coalition's Budget Reply outlined several policy announcements that could directly impact your small business:

Instant Asset Write-Off

The Coalition plans to increase the instant asset write-off from the current $1,000 to $30,000, making this a permanent measure. This would allow small businesses to immediately deduct the cost of eligible assets, reducing their taxable income.

Business Meal Expense Deduction

A new $20,000 annual deduction for business-related meal expenses would be introduced. This initiative aims to support the hospitality sector and encourage businesses to host events and reward staff. However, some critics argue that it benefits senior executives disproportionately.

Apprentice and Trainee Incentives

The Coalition would reinstate incentive payments for employers to hire and train apprentices. Small and medium-sized businesses would receive $12,000 to support new apprentices or trainees in critical skills areas, particularly in the building and construction sector.

Regulatory Burden Reduction

The Coalition has committed to removing regulatory burdens, where possible, particularly where there’s duplication across local, state and federal governments. This aims to reduce what’s seen as the growing compliance burden on small businesses.

Energy Costs

The Coalition’s national gas plan aims to reduce gas prices, potentially lowering operating costs for small businesses. The Coalition also supports nuclear energy, arguing it could be more affordable than renewable energy solutions.

Fuel Excise

The Coalition would halve the fuel excise for 12 months, which would reduce transportation costs for businesses that rely on vehicles.

Talk to us about the impact of the Budget Reply

It’s still uncertain which party will be in power come 6 May. If you’re concerned about the potential outcomes and how they could affect your business, let’s talk.

Our team is ready to walk you through the implications of these proposals and how they might impact your business in both the short and medium term.

Binghay & Co is a leading Accounting and Business Advisory firm based in Docklands, Melbourne, proudly servicing clients across Australia.

Federal Budget 2025-26: what it means for your small business

admin@binghayco.com.au (Binghay Co) — Wed, 26 Mar 2025 01:01:49 GMT

The Treasurer, Jim Chalmers, delivered the Federal Budget 2025 on Tuesday 25 March, which sets the financial plans for Australia, ahead of the upcoming election. This Budget introduced several changes, including tax cuts and cost-of-living relief. But what does it mean for small businesses?

Here's a quick summary of the key points that could affect your business.

Overview of the main Federal Budget

The Treasurer focused on providing cost-of-living relief, strengthening Medicare, and building Australia’s future. This includes:

Tax cuts for all taxpayers
Energy bill rebates for households and small businesses
Cheaper medicines and student debt relief
Significant investments in housing, education, and infrastructure
Improvements in debt and deficit figures since the Albanese Labor Government took office
Support for fair competition and regional development

Energy Bill Relief

Approximately one million small businesses will receive $150 off their energy bills until the end of 2025. This will help mitigate the impact of ongoing high energy costs for many small business owners.

Energy Efficiency Grants for SMEs

The government is offerin g $56.7 million in grants f or small and medium-sized businesses to help improve energy efficiency. These grants, up to $25,000, can be used for upgrades like replacing inefficient appliances.

Competition and Fair Trading

The government is cracking down o n unfair trading practices, such as those by supermarkets, to make things fairer for small businesses. The ACCC (competition watchdog) will be given more power to enforce rules, and penalties will increase.

Support for Australian-Made Products

The government is backing the production of green metals in Australia, which may open up opportunities for businesses in related industries. There's also new funding available through the Future Made in Australia Innovation Fund for clean technologies.

Ongoing Support for Small and Local Businesses

The Budget includes continued support for small businesses , making it easier to start, run, and grow your business. This includes:

Protection against unfair trading practices
Funding for the Buy Australian Campaign to support local businesses
Resources for regulators to create a level playing field
Tax relief for hospitality venues, brewers, distillers, and wine producers

National Broadband Network (NBN)

Increased funding of $3 billion in equity to complete the NBN rollout, which is essential for business productivity, particularly in regional and remote outback areas.

National Licencing

A new national licensing scheme for electricians will be introduced, which will eventually extend to other trades. This will reduce red tape and make it easier for tradespeople to work across states.

Non-compete clauses

Abolishing non-compete clauses for most Australian workers will create more worker mobility, and also making it easier for people to create small businesses.

Major infrastructure investment

Major infrastructure investment in building new housing, upgrading highways and servicing the rail network will provide opportunities for many small contractors.

Helping you plan for the proposed Budget changes

If you believe any of the Treasurer’s Budget announcements will affect your small business, we’re here to explain the changes, find a solution and grab the opportunities.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

How to optimise your business: six areas to focus on

admin@binghayco.com.au (Binghay Co) — Sat, 25 Jan 2025 08:45:16 GMT

The new financial year is already in full swing, meaning most of you are still finalising your general ledger accounts in order to get the necessary information to us to prepare your final 2024 accounts and tax returns. Others have already got us your information and are looking ahead.

Either way, it can be a time when we forget our current tax obligations, due in relation to the beginning of the 2025 financial year.

In order for you to be across your tax obligations, below are the key compliance dates that are coming up. Make sure these lodgments are up to date to avoid any interest or penalties.

KEY TAX DATES – SEPTEMBER/OCTOBER 2024

21 September 2024 – GST – Monthly Activity Statement and payment for August 2024

21 September 2024 – PAYG withheld – Monthly activity statement and payment for August 2024

21 September 2024 – PAYG instalment – Activity Statement and payment for monthly reporters for August 2024

30 September 2024 – TFN withholding report – Annual TFN withholding report for closely held trusts where a trustee has been required to withhold amounts from payments to beneficiaries during the 2024 income year

30 September 2024 – PAYG withholding payment summary – 2024 income year annual report due if lodged by us

21 October 2024 – GST – Monthly Activity Statement and payment for September 2024

21 October 2024 – PAYG withheld – Monthly activity statement and payment for September 2024

21 October 2024 – PAYG instalment – Activity Statement and payment for monthly reporters for September 2024

21 October 2024 – Annual PAYG instalment – Payment of annual PAYG instalment for 2023–24. Lodge only if instalment amount varied or the rate method to calculate the instalment is used

28 October 2024 – GST – Quarterly Activity Statement and payment for the July to September 2024 quarter if you do not lodge with us

28 October 2024 – PAYG withheld, FBT instalment and PAYG instalment – Quarterly Activity Statement and payment for the July to September 2024 quarter if you do not lodge with us

28 October 2024 – Superannuation guarantee – Due date for superannuation guarantee contributions for July to September 2024

31 October 2024 – Income tax – Due date for lodgment of 2023–24 income tax return for individuals, trusts and partnerships if you do not lodge with us

31 October 2024 – GST – Lodgment of annual 2023–24 GST return for instalment payers who are required to lodge tax returns by 31 October 2024

31 October 2024 – Companies – To provide distribution statements to shareholders for 2023–24 for most companies

31 October 2024 – Income tax – Due date for lodgment of 2023–24 income tax return for an entity that has one or more prior year tax returns outstanding as at 30 June 2024

31 October 2024 – SMSFs – Annual return for new registrant SMSF if the ATO has provided this due date

We’re here to help if you’re facing operational issues, tackling people challenges, or have health and safety questions, give us a call or email us.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

5 ways to make the most of the holidays

admin@binghayco.com.au (Binghay Co) — Mon, 16 Dec 2024 08:34:57 GMT

As the year winds down, the festive season and holiday break provide an opportunity to pause, recharge, and reflect. But how can you make the most of this valuable downtime?

Here are five tips for enjoying a restful and productive holiday period:

1. Reconnect with Family and Friends

Running a business often takes time away from loved ones. Use this break to strengthen personal relationships by disconnecting from work and focusing on quality time with family and friends. Turn off work emails, relax, and make this festive season one to remember.

2. Reset and Recharge

Take a deliberate step back from the business to recharge mentally and physically. A digital detox—avoiding work emails and laptops—can reduce stress and help you return refreshed and ready for the year ahead.

3. Reflect and Plan for 2025

Review your business performance and finances, identify growth opportunities, and set goals for the upcoming year. This reflective downtime is ideal for developing a strategic plan that aligns with your long-term vision.

4. Expand Your Knowledge

Use the extra time to read inspiring business books, listen to podcasts, or watch educational YouTube content. Learning from other entrepreneurs’ stories can spark new ideas and motivate you for the next chapter of your business journey.

5. Explore a New Hobby

The holidays are a perfect opportunity to try something new. Whether it’s learning a language, picking up a creative hobby, or diving into a new sport, pursuing a fresh interest can broaden your perspective and keep your mind sharp.

Let’s Plan for Success in 2025

A new year brings new opportunities. Whether it’s exploring a new market, diversifying your offerings, or funding a growth project, we’re here to help you strategise and achieve your goals.

Reach out to discuss your plans for 2025 and take the first step towards a successful year ahead.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Accepting cash may become mandatory for Aussie businesses

admin@binghayco.com.au (Binghay Co) — Wed, 13 Nov 2024 08:50:49 GMT

Australia is fast heading towards becoming a cashless society. But there are still segments of society that rely on being able to pay in cash.

With this in mind, the Federal Government is proposing new legislation that would make it compulsory for Aussie businesses to accept cash for groceries, fuel and other essentials.

What’s the impact of this likely to be for your small business? Let’s take a look.

Giving consumers the option to pay with cash

Research from 2022 by the Reserve Bank of Australia shows that 76% of Aussies pay using cards, while 13% pay using cash. However, there are demographic groups, generally the elderly and those in low income brackets, that still prefer to pay using cash.

Reasons for this can range from security worries and a mistrust of online banking, to the relative ease of using cash as a payment method.

To protect the rights of consumers that prefer cash over cards and/or digital payments, the Federal Government hopes to introduce legislation over the next two years.

Here’s the lowdown:

At present, under existing law, businesses do NOT have to accept cash payments. It’s proposed that legislation will be introduced to make it mandatory for businesses to accept cash as payment for groceries, fuel and other essentials. Cheques are to be phased out altogether as a payment option by September 2029. A consultation process will take place in 2024/25 and legislation will be introduced from 2026. There may be an exemption for small businesses, with details on this to follow.

Talk to us about the impact of a move to cash

If you’re a consumer-facing business selling essential items, and currently only offering cashless payment options, this change in legislation could have a significant impact.

Having to accept cash will require you to have cash registers, cash floats and to bank the money at the end of each day – practicalities that cashless systems had done away with.

Talk to our team and we’ll be happy to run you through the implications.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Why bookkeeping is essential for your small business

admin@binghayco.com.au (Binghay Co) — Wed, 16 Oct 2024 08:58:25 GMT

As a small business owner, do you need a bookkeeper, an accountant, or both? Bookkeepers can seem a little mysterious. In fact, they deal with the organisation, the recording and the reporting of financial transactions of a small business. A well-run business is likely to make use of both accountants and bookkeepers.

Simply put, a bookkeeper clears the way for the accountant to work with your business strategically. This means: keeping track of daily transactions, sending and managing invoices, handling the accounts payable ledger, keeping an eye on cash flow, and preparing the books for the accountant.

When you’re hiring, make sure you ask whether a bookkeeper has an area of specialisation. Some bookkeepers may be able to help train staff in using online accounting or POS systems or give you advice on business processes.

The following article outlines the key responsibilities of a bookkeeper, and how they work with accountants to support your business. Read more here.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Key numbers to focus on in your business now

admin@binghayco.com.au (Binghay Co) — Wed, 18 Sep 2024 09:13:53 GMT

In today’s evolving business landscape, having a solid grasp of your finances is essential. Changes in priorities, customer behaviour, and revenue streams mean you need to closely monitor your financial performance to stay profitable.

Here’s a straightforward guide to understanding key financial reports and using them to drive success:

Why Financial Reports Matter

Cash reserves are critical for your business' survival and growth. Instead of viewing surplus cash as an opportunity to spend, think of it as a buffer for stability. By regularly reviewing your financial reports and dashboards, you can uncover the true story of your financial health and make informed decisions.

Key Financial Reports to Track

1. Budget
Your budget is a financial roadmap tied to your strategic goals. It outlines expected costs, revenue, and profits over a set period. Comparing your actual figures to the budget helps you identify gaps, variances, and areas needing improvement.

2. Cashflow Statement
This report tracks the flow of money in and out of your business. A positive cashflow—where inflows exceed outflows—ensures you can cover costs, fund operations, and generate profit.

3. Cashflow Forecast
Using historic cash data, a forecast projects future cashflow, helping you anticipate potential shortfalls. With this insight, you can take proactive steps like chasing unpaid invoices, reducing costs, boosting income, or seeking funding.

4. Balance Sheet
A balance sheet provides a snapshot of your business’s assets, liabilities, and equity at a specific point. It shows what you own (assets), owe (liabilities), and your business’s overall worth (equity), offering a solid foundation for critical decisions.

5. Profit & Loss Report (P&L)
Unlike the balance sheet, which is a static snapshot, the P&L shows how your business is performing over time. It details revenues, costs, and expenses, giving you a dynamic view of how income and outflows are affecting your bottom line.

Need Help Managing Your Finances?

We can guide you through these reports in your accounting software, helping you track performance, take action, and position your business for growth.

Get in touch to learn how to optimise your financial reporting and set your business up for success.

Binghay & Co is a leading Accounting and Business Advisory firm based in Docklands, Melbourne, proudly servicing clients across Australia.

Your upcoming tax calendar for September and October 2024

admin@binghayco.com.au (Binghay Co) — Wed, 28 Aug 2024 01:47:15 GMT

Either way, it can be a time when we forget our current tax obligations, due in relation to the beginning of the 2025 financial year.

In order for you to be across your tax obligations, below are the key compliance dates that are coming up. Make sure these lodgments are up to date to avoid any interest or penalties.

KEY TAX DATES – SEPTEMBER/OCTOBER 2024

21 September 2024 – GST – Monthly Activity Statement and payment for August 2024

21 September 2024 – PAYG withheld – Monthly activity statement and payment for August 2024

21 September 2024 – PAYG instalment – Activity Statement and payment for monthly reporters for August 2024

30 September 2024 – TFN withholding report – Annual TFN withholding report for closely held trusts where a trustee has been required to withhold amounts from payments to beneficiaries during the 2024 income year

30 September 2024 – PAYG withholding payment summary – 2024 income year annual report due if lodged by us

21 October 2024 – GST – Monthly Activity Statement and payment for September 2024

21 October 2024 – PAYG withheld – Monthly activity statement and payment for September 2024

21 October 2024 – PAYG instalment – Activity Statement and payment for monthly reporters for September 2024

21 October 2024 – Annual PAYG instalment – Payment of annual PAYG instalment for 2023–24. Lodge only if instalment amount varied or the rate method to calculate the instalment is used

28 October 2024 – GST – Quarterly Activity Statement and payment for the July to September 2024 quarter if you do not lodge with us

28 October 2024 – PAYG withheld, FBT instalment and PAYG instalment – Quarterly Activity Statement and payment for the July to September 2024 quarter if you do not lodge with us

28 October 2024 – Superannuation guarantee – Due date for superannuation guarantee contributions for July to September 2024

31 October 2024 – Income tax – Due date for lodgment of 2023–24 income tax return for individuals, trusts and partnerships if you do not lodge with us

31 October 2024 – GST – Lodgment of annual 2023–24 GST return for instalment payers who are required to lodge tax returns by 31 October 2024

31 October 2024 – Companies – To provide distribution statements to shareholders for 2023–24 for most companies

31 October 2024 – Income tax – Due date for lodgment of 2023–24 income tax return for an entity that has one or more prior year tax returns outstanding as at 30 June 2024

31 October 2024 – SMSFs – Annual return for new registrant SMSF if the ATO has provided this due date

We’re here to help if you’re facing operational issues, tackling people challenges, or have health and safety questions, give us a call or email us.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Should you buy or lease your business assets?

admin@binghayco.com.au (Binghay Co) — Wed, 14 Aug 2024 01:31:48 GMT

There are certain items of equipment, machinery and hardware that are essential to the operation of your business – whether it’s the delivery van you use to run your home-delivery food service, or the high-end digital printer to run your print business.

But when a critical business asset is required, should you buy this item outright, or should you lease the item and pay for it in handy monthly instalments?

To buy or to lease? That is the question

Buying new pieces of business equipment, plant, machinery or vehicles can be an expensive investment. So, depending on your financial situation, it’s important to weigh up the pros and cons of buying, or opting for a leasing option.

First of all, let’s look at why you might decide to buy the item…

Buying: the pros and cons:

Pro: It’s a tangible asset – when you buy an item, you own the item outright and it will appear on your balance sheet as one your business assets. As such, by owning these assets outright you increase the perceived capital and value of your business. You can also claim the cost of the asset against your capital allowance for tax purposes.
Pro: It’s yours for the life of the asset – once you own the item, you have full use of the equipment for the duration of the life of the asset. Your use of the asset isn’t reliant on you being able to keep up regular lease payments, and if your financial circumstances change then you can sell the asset to free up the capital.
Con: It’s an expensive outlay – paying for the item up-front is a large outlay for the business and will require you having the cash to cover this cost. Spending a large lump sum in this way may take cash away from other areas of the business, so you need to be 100% sure that this purchase is the right decision and a sound investment.
Con: You may require extra funding – if you don’t have the liquid cash available to buy the item outright, you may need to take out a loan. Asset finance is available from funding providers, but does tie you into a loan agreement that will add to your liabilities as a business – reducing your worth on the balance sheet.

Leasing: the pros and cons:

Pro: Leasing has a cheaper entry point – if the item you need to purchase has a large price tag, leasing allows you to make use of the asset without the cost of buying it in full. For start-ups and smaller businesses with minimal capital behind them, this can make leasing a very attractive option. You may not own the asset, but you can make use of it – and this may be the difference between the success or failure of your business.
Pro: : You can spread the cost – there is still an associated cost of leasing, but you can spread the cost over a longer period, making it easier to find the necessary liquid cash to meet your lease payments. With this money saved, you can then invest in other areas of the business, helping you to expand, grow and bring in more customers and revenue.
Con: You don’t own the asset – there are different types of leasing agreement. Under a capital lease, you do own the asset (once you’ve paid if off). But if you opt for an operating lease, this is a more short-term lease and you won’t own the asset at the end of the contract. Ownership does have its advantages (including being able to sell off the asset if required) so it’s important to consider what kind of leasing agreement you’re entering into and what the advantages/disadvantages may be.
Con: You may pay more in the long run – most leasing agreements will attract additional costs and interest on your agreement, so you may well end up paying more than the market price for your asset in the long term. If you can cope with the higher cost, this is fine, but bear in mind that buying outright may have offered greater value.
Con: You may lose the use of the asset – if you can’t keep up your lease payments (due to poor cashflow for example) then the owner of the lease agreement may recall the asset. If this item is crucial to your business model, losing this key asset can have a profound impact on your ability to operate. In this respect, leasing is a more risky prospect, but also an easier option for businesses with less cash to splash.

Talk to us about whether buying or leasing is the best way forward

Whether you opt to buy or lease your equipment isn’t always a straightforward decision to make – so it’s a good idea to consult with your accountant early on in the decision-making process.

We’ll help you review your current financial position, assess your available cashflow and look at your regular cost base to decide whether buying or leasing is the right thing for your business.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

How to use forecasts and scenario-planning

admin@binghayco.com.au (Binghay Co) — Thu, 01 Aug 2024 03:43:35 GMT

For centuries, accounting focused on reviewing historical data, which only tells you about the past. This backward-looking approach limits your ability to plan for the future, explore scenarios, and understand your business's trajectory.

The Advantage of Forecasting

Forecasting changes the game by allowing you to project future sales, cash flow, revenue, and profits. This proactive approach helps you take control of your business and navigate its journey more effectively.

How Forecasting Adds Value

Spotting Patterns : Forecasting tools analyse historical data to reveal patterns, trends, and opportunities. For instance, it might predict a seasonal downturn, enabling you to plan and mitigate potential impacts.
Future Insight : Instead of only reviewing past performance, forecasting offers a forward-looking view. It’s like using a GPS to navigate the road ahead, rather than just checking the rear-view mirror.
Scenario Planning : With accurate forecasting, you can explore various "What if?" scenarios and assess different strategies. This helps in making informed decisions about your next steps.
Evidence-Based Decisions : Combining historical data with forecasts provides a comprehensive view, aiding in strategic planning and identifying potential threats.
Enhanced Accountant Collaboration : Forecasting gives us a detailed understanding of your business, allowing for better strategic advice and performance improvement recommendations.

Discover the Benefits of Forecasting

Ready to take control of your company's future? Contact us to learn how forecasting can highlight potential threats and opportunities, and help you develop a proactive strategy to enhance your business performance.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Enhance your work-life balance

admin@binghayco.com.au (Binghay Co) — Wed, 17 Jul 2024 03:32:27 GMT

Balancing work and life is a common goal, but it can be challenging during busy times. Here are some tips to help you manage throughout the year:

Take Time Off : Holidays are essential for resetting and refreshing your mind. Encourage your team to take breaks too, as it boosts morale and productivity.
Prioritise Health : Maintaining good health is crucial, even though it can be tough. Staying healthy helps you handle work-related stress and improves your overall well-being.
Delegate Tasks : Delegating responsibilities can make a big difference. Effective delegation ensures your business operates smoothly and efficiently.
Schedule Regular Check-ups : It’s easy to overlook signs of burnout when you’re busy. Regular medical check-ups help keep both your mind and body in good condition.
Learn to Disconnect : Make a habit of disconnecting from work outside of office hours. Start by turning off your emails on weekends to give yourself a proper break.

Running a small business can be both fulfilling and demanding, with long hours and little time off. If you’re feeling overwhelmed, we can support you by streamlining paperwork and helping you focus on what matters most.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Tax and compliance changes in effect from 1 July 2024

admin@binghayco.com.au (Binghay Co) — Mon, 01 Jul 2024 03:25:27 GMT

We provide you a summary of all the enacted legislation that comes into effect from 1 July 2024, these changes vary to apply to individuals, businesses, welfare recipients among others.

Stage 3 tax cuts

After being enacted with amendments by the Labor government, the stage 3 tax cuts came into effect from 1 July 2024 giving each Australian individual a tax relief.

The tax cuts mean you get to take home more of your salary every payday as less of it will be given to the ATO, effectively giving you a pay rise.

Increased paid parental leave

Under the Federal government's changes to paid parental leave program to boost gender equality, eligible parents of babies born after 1 July 2024 will get access to an extra two weeks of publicly funded leave, going up to a total of 22 from 20 weeks.

Another two weeks will be added annually at the start of the 2025–26 and 202627 income years.

Increased superannuation guarantee

The superannuation guarantee will increase on 1 July 2024 from 11 to 11.5%, putting more money into the super accounts of full-time, part-time and casual workers.

Like paid parental leave, it will also increase again on 1 July 2025 to 12%.

Energy bill relief

A key measure announced in the 2024 Federal budget was $300 in energy bill relief for every household in the 2024–25 financial year.

This will be in the form of quarterly $75 rebates that will automatically be applied to your energy bills.

Welfare payments

Welfare payments recipients using the following 5 schemes are set to go up from 1 July 2024:

- Family Tax Benefit (Parts A and B)

- The Multiple Birth Allowance

- Newborn Supplement

- Stillborn Baby Payment and

- Essential Medical Equipment Payment

Please feel free to contact us should you need more information on these changes or discuss how these changes may apply to you or your business.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

The importance of productivity and how to improve it

admin@binghayco.com.au (Binghay Co) — Wed, 12 Jun 2024 01:00:47 GMT

Productivity drives strong economies, robust businesses, and efficient workforces. Higher productivity can reduce business failures, boost employment, and increase incomes for both owners and workers.

Industry Insights:

According to the Xero Small Business Insights special report, the most productive Australian industry in 2023 was wholesale trade ($214.20/hour), while hospitality lagged at $40.20/hour.
Despite a general decline, 10 sectors, including manufacturing, agriculture, and construction, exceeded the national average productivity of $100.30/hour.
Western Australia was the most productive state ($102.50/hour), 15% higher than Tasmania ($89.00/hour).

Understanding Productivity:

Productivity measures how efficiently a business converts inputs into outputs. Key areas include:

People Productivity: Work efficiency, often measured as hours worked/dollars earned.
Financial Productivity: Return on investment in assets like machinery.
Materials Productivity: Cost efficiency in generating sales.

Importance of Productivity :

Higher productivity enables businesses to do more with less, improving profitability, resilience to economic fluctuations, and competitive pricing. Digital tools now allow small businesses to enhance productivity akin to larger enterprises.

Increasing Productivity:

Four common strategies include:

1. Better Tools:

Tools amplify work efforts (e.g., software that integrates payment systems or booking systems).
Challenges include prioritizing investments, justifying ROI, risk aversion, loan access, and perceived technological difficulties.

2. Smarter Methods:

Regularly review and optimize work processes.
Ensure efforts align with customer needs through surveys and feedback.
Document processes, identify bottlenecks, and redesign workflows.
Consider digital tools like Asana for task tracking and Zapier for automating tasks.

3. Skilled Workers:

Provide clear job descriptions, thorough training, and continuous feedback.
Encourage employee feedback to identify optimization opportunities.

4. Entrepreneurial Mindset:

Focus on scaling, acquiring businesses, specializing, rethinking supply chains, and fostering a culture of innovation.

Boosting Productivity Attitude:

Continuously refine processes, improve tools, and eliminate inefficiencies. Invest in your team and technology to enjoy benefits like reduced delays, better communication, and increased satisfaction and profit.

Budgeting for success: the importance of good financial management

admin@binghayco.com.au (Binghay Co) — Wed, 29 May 2024 02:10:30 GMT

When you’re operating and managing a small business, you have a finite pot of cash to work with. Because of this, it’s incredibly important to manage your cash well and to have clear budgets and spending limits for every area of your business operations.

Let’s take a look at why budgeting is such a vital part of your financial management, and what you can do to keep your company on budget and in a positive cashflow position.

4 ways to stay in control of your business budgeting

It’s impossible to run a successful business without having a tight rein over your expenditure.

Sales may be bringing in healthy revenues, but the income and profits you’re generating can quickly be eaten up if you’re overspending on operational costs, marketing campaigns, staff payroll or investments in new hardware and software.

We’ve highlighted four ways to put good, solid budgeting at the heart of your financial process:

1. Embrace the power of budgeting

A well-crafted business budget gives you the foundations to become a financially healthy and successful business that’s in control of its spending.

You don’t have to use a complicated budgeting app; a simple breakdown of income and expenses in an Excel spreadsheet can be a great starting point.

To get started:

Track your projected sales , so you understand your future revenue numbers and have a solid projection for your income over the course of the year, or budget period.

Calculate your costs , including fixed costs like rent and utilities, and variable costs like inventory and marketing. This gives you an understanding of your total expenditure. Don't forget to factor in business taxes and contingency funds to cover emergencies.

Set clear budgets for the coming period’s spending , based on the total income you’ve predicted and the total fixed and variable costs you’ve estimated. Always leave some wriggle room to account for inflation and changing costs.

Regularly review your budget , so the document is always evolving. Reviewing and updating your budget helps you stay on track, identify areas for cost-cutting, and make informed decisions about resource allocation. Remember, a budget is a living document, so adapt it as your business evolves.

2. Track your budgets, income and spending

Setting the budget isn’t the end of the process. It’s important to track all income and expenses and to update your budget in line with the current health of your business finances.

Using the latest cloud accounting software can work wonders. These cloud tools help you record your incoming and outgoing transactions in real time, so you can work with the most up-to-date numbers and financial data when reviewing and reworking your budget.

To improve your tracking:

Use codes to categorise your expenses – the Chart of Accounts in your accounting software makes it easy to categorise each expense as it’s incurred. It’s then easy as ABC to review your financial reports and to analyse your spending patterns.

Review your spending – check your spending against each code and see where budgets are on track, or where there’s overspending that’s threatening your budget. Are there subscriptions you can cancel? Or could you renegotiate rates with your vendors?

Plan for seasonal trends and patterns – tracking your income and expenditure helps you to spot, predict and plan for the financial ups and down you’ll experience over the year. The more you understand your cashflow, the better equipped you are to stay on budget, make solid strategic financial decisions and avoid unexpected shortfalls.

3. Separate your personal and business finances

It’s tempting to think of the money in the business as ‘your money’. But it’s crucial to have a clear divide between the company’s money and your own money, as an owner and director.

Here’s why that separation is important:

Open a dedicated business bank account – all the cash you generate, supplier bills you pay and transactions you carry out will be logged through this account. This keeps your own cash and your business cash entirely separate.

Track your business expenses – by having separate business and personal bank accounts, you can easily track your business expenses and manage your budgets. There’s no confusion around personal expenses that could potentially muddy the water.

Consider getting a business debit card – a business card helps you to pay for business-related costs directly from your business bank account. This helps you to track your expenses and keep a closer eye on your budget.

4. Forecast for the future: don't just track the past

Basing your budget and financial strategy on historic data is a great foundation stone. But you can also use this data to project the data forwards in time and create useful forecasts .

For example, you can:

Get clear cashflow forecasts – based on your historical sales trends and projected expenses, you can quickly estimate your future cashflow. Having this view of your future cash position is extremely helpful when setting out your budget for the period.

Plan out your budgets and cash management – with forecasts at your fingertips, you can plan for seasonal fluctuations, identify potential funding needs and make informed decisions about the short, medium and long-term strategy of the business.

Be ahead of the curve – with solid budgets, forecasts and a great overview of your finances, you can be more in control as a business owner. Whatever the market throws at you, you’re better prepared, agile and ready to respond.

Talk to us about getting on top of your budgeting

Financial management can be overwhelming, especially if you’re new to running a business. But don't be afraid to seek help from a qualified accounting professional.

As your adviser, we can:

Streamline your record-keeping, bookkeeping and financial reporting.
Give guidance on budgeting, forecasting and financial management.
Ensure your cashflow and budgets are always looking positive and healthy.

Let’s sit down and talk about getting your budgets and financial management in order.

Get in touch now to talk about budgeting.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

2024-25 Federal Budget Highlights

admin@binghayco.com.au (Binghay Co) — Wed, 15 May 2024 02:31:08 GMT

The Federal Treasurer, Dr Jim Chalmers, handed down the 2024–25 Federal Budget at 7:30 pm (AEST) on 14 May 2024.

Described as a “responsible Budget that helps people under pressure today”, the Treasurer has forecast a second consecutive surplus of $9.3 billion. The main priorities of the government, as reflected in the Budget, are helping with the cost of living, building more housing, investing in skills and education,strengthening Medicare and responsible economic management to help fight inflation.

The key tax measures announced in the Budget include extending the $20,000 instant asset write-off for eligible businesses by 12 months until 30 June 2025, introducing tax incentives for hydrogen production and critical minerals production, strengthening foreign resident CGT rules and penalising multinationals that seek to avoid paying Australian royalty withholding tax.

The Budget also includes various amendments to previously announced measures, as well as a number of income tax measures that have already been enacted prior to the Budget announcement, including:

The revised stage 3 personal income tax cuts (enacted by the Treasury Laws Amendment (Cost of Living Tax Cuts) Act 2024 (Act No 3 of 2024)).
Medicare levy and surcharge threshold changes (enacted by the Treasury Laws Amendment (Cost of Living—Medicare Levy) Act 2024 (Act No 4 of 2024)).
A specific exemption for Australian plantation forestry entities from the new earnings-based rules introduced as part of thin capitalisation reforms (enacted by the Treasury Laws Amendment (Making Multinationals Pay Their Fair Share—Integrity and Transparency) Act 2024 (Act No 23 of 2024)).

These enacted measures have not been discussed in detail in this report.

The government anticipates that the tax measures put forward will collectively improve the Budget position by $3.1 billion over a 5-year period to 2027–28.

The full Budget papers and the Treasury ministers’ media releases are available on-line.

The tax, superannuation and social security highlights are set out below.

Income Tax

The instant asset write-off threshold of $20,000 for small businesses applying the simplified depreciation rules will be extended for 12 months until 30 June 2025.

The foreign resident CGT regime will be strengthened for CGT events commencing on or after 1 July 2025.

A critical minerals production tax incentive will be available from 2027–28 to 2040–41 to support downstream refining and processing of critical minerals.

A hydrogen production tax incentive will be available from 2027–28 to 2040–41 to producers of renewable hydrogen.

The minimum length requirements for content and the above-the-line cap of 20% for total qualifying production expenditure for the producer tax offset will be removed.

A new penalty will be introduced from 1 July 2026 for taxpayers who are part of a group with more than $1 billion in annual global turnover that are found to have mischaracterised or undervalued royalty payments.

The Labor government’s 2022–23 Budget measure to deny deductions for payments relating to intangibles held in low- or no-tax jurisdictions is being discontinued.

The start date of a 2023–24 Budget measure to expand the scope of the Pt IVA general anti-avoidance rule will be deferred to income years commencing on or after assent of enabling legislation.

Income tax exemptions for World Rugby and/or related entities for income derived in relation to the Rugby World Cup 2027 (men’s) and Rugby World Cup 2029 (women’s).

Deductible gift recipients list to be updated.

Social Security

Social security deeming rates will be frozen at their current levels for a further 12 months until 30 June 2025.

Carer payment recipients will have greater flexibility with their participation requirements.

Eligibility for the higher rate of Jobseeker payment will be extended to single recipients with a partial capacity to work of zero to 14 hours per week.

The maximum rates of the Commonwealth Rent Assistance will increase by 10% from 20September 2024.

Funding will be provided to implement a social security means test treatment for military invalidity payments affected by the Full Federal Court’s decision of FC of T v Douglas 2020 ATC ¶20-773; [2020] FCAFC 220.

Funding will be provided to enable Australia to enter into a bilateral social security agreement with Uruguay.

Foreign investors will be allowed to purchase established build-to-rent properties with a lower foreign investment fee.

Superannuation

Superannuation will be paid on government-funded paid parental leave (PPL) for parents of babies born or adopted on or after 1 July 2025.

The Fair Entitlements Guarantee Recovery Program will be recalibrated to pursue unpaid superannuation entitlements owed by employers in liquidation or bankruptcy from 1 July 2024.

Tax Administration

The ATO will be given a statutory discretion to not use a taxpayer’s refund to offset old tax debts on hold.

Indexation of the Higher Education Loan Program (and other student loans) debt will be limited to the lower of either the Consumer Price Index or the Wage Price Index, effective from 1 June 2023.

A pilot program of matching income and employment data of migrant workers will be conducted between the Department of Home Affairs and the ATO.

A new ATO compliance taskforce will be established to recover tax revenue lost to fraud while existing compliance programs will be extended.

The ATO will have additional time to notify a taxpayer if it intends to retain a business activity statement refund for further investigation.

The 2019–20 Budget measure “Black Economy — Strengthening the Australian Business Number system” will not proceed.

GST

Refunds of indirect tax (including GST, fuel and alcohol taxes) will be extended under the Indirect Tax Concession Scheme.

Excise and Customs Duty

Tariffs identified as a nuisance across a range of imported goods will be removed from 1 July 2024.

The start dates for certain components of a measure to streamline excise administration for fuel and alcohol announced in the Coalition government’s 2022–23 Budget will be deferred.

Get in touch to discuss how the Budget announcements impact you.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

How to keep your business running when you're on holiday

admin@binghayco.com.au (Binghay Co) — Wed, 01 May 2024 00:45:00 GMT

Taking a holiday might seem like an unrealistic luxury for many small business owners. With the weight of daily operations and constant responsibilities, the idea of stepping away often feels impractical. However, the benefits of taking a break are significant, not just for personal health but also for the sustainability and growth of your business.

Preparing for a holiday requires thoughtful planning, especially when you're used to juggling multiple roles and ensuring everything runs smoothly. Even though the modern business landscape often demands near-constant availability, it's possible—and crucial—to plan some downtime. Here's a quick guide to help you manage a holiday from your small business.

1. The Importance of Taking a Break

Many small business owners believe they can't afford to take a break. However, there are several compelling reasons to reconsider:

Reflection and Perspective : Stepping away from the day-to-day activities can provide valuable insights into business processes, highlight areas needing improvement, and spark innovative ideas.
Inspiration Through Change : A change in environment can stimulate creativity and lead to new approaches that can be applied to your business.
Leadership by Example : Demonstrating work-life balance is crucial for setting a healthy workplace culture. It encourages your team to also prioritize their well-being, which can enhance overall productivity and job satisfaction.
Improved Health : Running a business is mentally and physically taxing. A break can help you recharge, reducing the risk of burnout and improving overall well-being.
Empowering Your Team : Entrusting your team to handle the business in your absence can build confidence and foster a sense of ownership among staff, which is beneficial for when you eventually need to delegate responsibilities permanently.

2. Preparing for Your Holiday

To ensure a smooth operation in your absence, consider the following steps:

Plan Strategically : Avoid scheduling your holiday during peak business times. Advance planning helps in preparing your team and arranging workflows.
Address Potential Issues : Train your team to handle common problems that might arise during your absence. Ensure they know emergency procedures and critical contacts.
Set Clear Expectations : Communicate what, if any, circumstances would require your intervention. Establish boundaries to minimize disruptions during your break.
Appoint a Trusted Leader : Choose a reliable team member to take the helm in your absence. This can be an excellent opportunity for them to grow and for you to assess potential for future leadership roles.
Automate and Delegate : Utilize tools to handle routine tasks and ensure all team members know their responsibilities. Setting up automatic email responses can keep stakeholders informed of your availability.

3. How to Enjoy Your Vacation as a Business Owner

Finally, it’s crucial to make the most out of your break:

Digital Detox : Consider turning off your phone or limiting check-ins to once a day. Disconnecting helps you recharge more effectively.
Clear Your Mind : Engage in activities that divert your attention from work, whether it’s reading, exploring, or just relaxing. This mental break can heighten your clarity and focus upon return.
Manage Guilt : Remind yourself that taking time off is not only acceptable but beneficial for your business. It's vital for your productivity and long-term business strategy.

4. Prioritize Taking a Break - Essential for You, Your Family, and Your Business

It's a common misconception among small business owners that taking a holiday might lead to their business suffering. However, the truth is quite the opposite. Taking a break not only empowers your staff by giving them a chance to demonstrate their capabilities, but it also sets a positive precedent for maintaining a healthy work-life balance. More importantly, it is essential for your health. Allowing yourself this time away from the daily grind can help you return to work feeling refreshed, rejuvenated, and bursting with new ideas to enhance your business strategies.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Tips for dealing with economic uncertainty in your business

admin@binghayco.com.au (Binghay Co) — Tue, 16 Apr 2024 00:12:02 GMT

With political changes and an economic slowdown to contend with, we're in pretty unpredictable waters. Here are some tips on managing your team in times of uncertainty:

Support staff wellbeing

Talk to staff about wellbeing regularly and openly. Let your team know it’s okay to feel stress or anxiety.

Regularly remind your people where to find support, whether it’s through free counselling or mental health resources, or through company health plans.

Put wellbeing practices in place

Ask your team what could help their wellbeing and balance. Consider team activities, on-the-job skill sharing and learning, and charity events.

Be clear about cost-cutting

Change on the cards? Communicate opening and frequently, using information that is easy to understand, relevant, and factual. Don’t offer false hope or reassurances.

Let people know if there is nothing new to communicate or if you are still working out your plans. Consulting effectively with staff can reduce the stress of uncertainty as you look to make changes in your business

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Review your business expenses - and save

admin@binghayco.com.au (Binghay Co) — Mon, 01 Apr 2024 23:20:39 GMT

Running a business costs money. There are always costs, overheads and supplier bills that mount up – and these expenses will gradually chip away at your cash position, making it more difficult to grow and make a profit.

So, what can you do to reduce your spend levels? And what impact will this have on your overall margins, profits and ability to fund the next stage in your business journey?

Getting proactive with your spend management

Spend management is all about getting in control of your expenses – and, where possible, aiming to reduce the level of costs and overheads that you incur as a company.

Excessive spending eats into your cashflow, reduces your profit margins and stops you from achieving the profits that you’re capable of as a business. So if you can get proactive with your spend management, you can actually make your company a far more financially productive enterprise – and that’s great for your overall business health.

So, what can you do to reduce spend and slim down your company expenses?

Here are some key ways to reduce expenses:

Reduce your overheads – your overheads are the unavoidable costs of running your business, producing your products or supplying your services. If you have bricks and mortar premises, these overheads will include rental payments, utility bills and the cost of paying your staff. Drill down into the numbers and see where there are opportunities to reduce these overhead costs. That could mean moving to smaller premises, or reducing the size of your workforce, to reduce payroll expenditure.
Put limits on staff expenses – if your employees can claim expenses, or buy raw materials and equipment with the company’s money, these costs can soon start to rack up. It’s a good idea to put a spending limit in place, so each staff member can only spend up to an agreed amount. Having a clear expenses policy helps, as will training up your staff in good spend management techniques. Expenses cards or expense managment software will allow you to quickly set spend limits, track expenses and pull your expenses data through to your cloud accounting platform for processing.
Look for cheaper suppliers – if you can reduce your supplier costs, this will go a long way to bringing down your overall spend. If you’ve been with certain key suppliers for years, look around for new quotes, look at current market prices and see if you can negotiate better deals. And if your old suppliers aren’t flexible enough, try swapping to newer, more eager suppliers who will be willing to meet you in the middle on price.
Make your operations leaner – the bigger your operational costs are, the less margin you’ll make on your end products and services. One way to resolve this is to aim for a ‘lean approach’, paring back your staff, resources and operational complexity to the bare minimum. By making the business as lean as possible, whilst still delivering the same output, you keep your revenue stable, but reduce the spend level that’s eating into your cost of goods sold (COGS). The smaller your COGS, the more profit you make on each unit or sale – and that means better cashflow, more working capital and bigger profits.
Explore tax reliefs – you might assume that tax costs are an unavoidable expense when running your business, but it’s worth exploring which tax reliefs, grants or other business benefits you may benefit from. For example, research and development (R&D) tax credits that help cut your corporation tax expenses if you can demonstrate that you’re involved in innovation and groundbreaking R&D within your industry or specialism.

Talk to us about improving your spend management

If you’d like to get in control of your expenses, we’d love to chat. We’ll review your current costs and will highlight the key areas where expenses can be cut. Then we’ll help you formulate a proactive spend management programme, to reduce your unnecessary spending.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

The importance of bookkeeping

admin@binghayco.com.au (Binghay Co) — Wed, 20 Mar 2024 01:57:01 GMT

I n today's digital times, you're probably used to having unrivalled access to your financial numbers, key performance indicators (KPIs) and cashflow metrics. Without good bookkeeping, the speed and quality of your reporting can quickly fall down.

So, why is fast and accurate bookkeeping so important? And what are the main bookkeeping tasks that your business should be getting right?

The financial importance of good bookkeeping

Bookkeeping is a fundamental part of your financial process as a business. Without it, your accounting software has no financial data to work with, your data doesn’t have the most current numbers, and your accountant can’t see the current financial health of the business.

Inputting your financial transaction into some f orm of record-keeping system is also a mandatory commitment if you’re a registered business and paying goods and services tax. Bookkeeping is what provides you with a historic breadcrumb trail of your finances – allowing you to track your cashflow, revenues and profits over a given period.

How to maximise your bookkeeping

So, bookkeeping is a vital part of your financial management. And the key to having your transactions recorded, available for reporting and accessible whenever you need them.

But how should the bookkeeping process work, in an ideal world? Let’s walk through the core bookkeeping steps and how you can get the most from this financial admin task.

To keep on top of your bookkeeping:

Scan all financial paperwork – the initial part of the bookkeeping process is to scan and record all receipts, invoices and remittances. This gives you a digital copy of the paperwork that relates to your income and expenses – important when you get around to filing tax returns and expense claims etc.
Record all transactions immediately – getting your transaction recorded and in the books ASAP is vital. This includes recording both your income and expenses, as soon as they occur, and matching them with the scanned paperwork. This not only helps you stay organised but also means your financial data is always up-to-date and can provide real-time reporting and numbers. This can be a huge help when running the business.
Categorise transactions accurately – when recording transactions, make sure you’re accurate and categorise each item correctly. Not only does this remove the potential for errors and miss-keying in your books, it also helps you track your spending and income more accurately, so your reports are an honest reflection of your financial health.
Reconcile your accounts regularly – reconciliation is the process of matching your transactions (both income and expenses) against your bank statement and other financial statements. It’s a key part of your bookkeeping and should be done regularly, to ensure that your balances are correct and that your records are totally up to date.
Use a cloud-based accounting system – bookkeeping doesn’t involve books (ledgers, in accounting-speak) anymore. In the digital world, you can use cloud-based accounting software, like MYOB, to record your transactions and access your financial data in the cloud from anywhere, at any time. This makes it easier to keep on top of your numbers when out of the office.
Outsource your bookkeeping to a professional – yes, you can do your own bookkeeping. But there’s a LOT of value to delegating all the hard work to a professional bookkeeper. If you don't have the time or expertise to manage your bookkeeping yourself, outsourcing is a smart move. A bookkeeper will make sure your books are always accurate and under control. Plus, they can produce cashflow statements, revenue forecasts and other reports to help your business decision-making.

Talk to us about outsourcing your bookkeeping

With today’s cloud accounting software, bookkeeping is a far less tedious task than it used to be. But it’s still a regular, time-consuming job that can take you away from running the business.

If you’re thinking about outsourcing your bookkeeping, and freeing up that admin time, we’d love to talk to you. Our outsourced bookkeeping service will take on your bookkeeping tasks, to streamline the whole process. We’ll also introduce you to automated data-entry tools that make snapping receipts and scanning invoices a breeze.

Let us do the books, so you can get back to talking to customers and winning work

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Tax planning helps you do more with your money

admin@binghayco.com.au (Binghay Co) — Tue, 05 Mar 2024 01:36:05 GMT

Tax planning is a strategic approach to managing your business’ financial affairs, with the aim of legally minimising your tax liability. In other words, you plan ahead to make sure you pay the taxes you should be paying, but not a penny more.

Working with your tax adviser, you can look for deductions, credits, exemptions and tax-saving strategies that will help to optimise your company’s overall tax position.

How does tax planning affect your business?

The primary goal of tax planning is to reduce the amount of taxes your business owes. But it’s also about making sure you stay compliant with all the tax laws and regulations applicable to your business.

But what are the main advantages? Let’s take a look at five of the big benefits of careful, strategic tax planning.

By planning your tax across the year, you can:

Maximise your profits – strategic tax planning helps your company find the best available tax incentives, deductions and credits. This reduces your overall tax liability, cuts your annual tax costs and increases your overall profitability as a business.
Boost your cashflow – tax planning is a great way to open up more liquid cash and achieve a better cashflow position for the business. When you cut down the company’s tax payments, that frees up cash and helps you achieve a positive cashflow position.
Stay compliant and mitigate your risk – being proactive with your tax planning keeps the company compliant with the relevant tax laws and regulations. It’s a sensible way to tick the compliance boxes and reduce the risk of costly penalties and legal issues.
Drive your strategic growth – smart use of tax planning helps you reduce your tax costs and reassign those funds to your strategic business goals. It’s a golden opportunity to invest in areas that promote long-term growth and competitiveness.
Give your business a competitive edge – if managed well, efficient tax planning leads to lower operational costs for the business. This gives you a competitive edge when it comes to pricing, innovation, sales and revenue generation.

How can we help you with tax planning?

Getting strategic with your tax planning has many advantages for your financial stability as a business. But to maximise your planning, it’s important to work with an experienced adviser.

If you’d like to know more about the impact of tax planning, we’ll be happy to explain.

Get in touch to talk about tax planning.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Lodge your overdue TPAR now to avoid penalties

admin@binghayco.com.au (Binghay Co) — Wed, 28 Feb 2024 00:57:27 GMT

Businesses that pay contractors to provide certain services may need to lodge a taxable payment annual report (TPAR) each year.

From 22 March 2024, The ATO will begin applying penalties to businesses that:

- Have not lodged their TPAR for 2022-23 or previous years

- Have received 3 reminder letters about their overdue TPAR

- A TPAR must be lodged by 28 August each year

Businesses that must lodge an annual TPAR

An annual TPAR must be lodged by the following business types that make payments to contractors and subcontractors for their services and hold an ABN:

- Building and construction services

- Cleaning services

- Road freight and courier services

- Information technology services

- Security, investigation or surveillance services

Non-lodgment advice

If you don’t need to lodge a TPAR in an income year, you can submit a non-lodgment advice with the ATO.

If you no longer pay contractors, a non-lodgment advice may also be submitted to indicate that no future TPARs will be required to be lodged.

Please feel free to contact our office, should you require assistance with lodging any outstanding TPARs or engaging with the ATO on your behalf if required.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Overcoming Imposter Syndrome: A Business Owner's Guide

admin@binghayco.com.au (Binghay Co) — Thu, 15 Feb 2024 01:19:52 GMT

It's a common struggle and we probably don’t talk about it. Imposter Syndrome affects individuals from all walks of life, including business owners. It's characterised by a persistent feeling of inadequacy, despite evidence of your competence and accomplishments.

A Harvard Business Review study found that nearly 70% of entrepreneurs have experienced imposter syndrome at some point in their careers. This self-doubt can be particularly debilitating for entrepreneurs, as they navigate the multiple challenges of running a businesses. Understanding and addressing this issue is crucial for personal and professional growth.

Many business owners, despite their achievements, constantly question their abilities and attribute their success to luck or external factors. This mindset can hinder their progress, hinder decision-making, and lead to burnout. So how do you overcome it?

Overcoming Imposter Syndrome

While conquering imposter syndrome is a personal journey, there are practical steps that business owners can take to manage it effectively:

Acknowledge and Normalise - Understand that imposter syndrome is common and experienced by many, if not most, successful individuals. Normalise these feelings as a part of the entrepreneurial journey.
Track Achievements - Maintain a record of your accomplishments, no matter how small they seem. Regularly reviewing these achievements can help boost confidence and counteract self-doubt.
Seek Support and Talk to Others - Talk to your business advisor, a mentor, and others in similar roles. Sharing your thoughts and feelings with someone you trust can provide valuable insights and strategies for overcoming imposter syndrome.
Set Realistic Goals - Break your long-term goals into smaller, achievable milestones. This can help you see your progress more clearly and reduce the feeling of being overwhelmed. One step forward can make a huge difference.
Embrace Failure - Understand that failure is a part of entrepreneurship. Instead of seeing it as a reflection of your worth, view it as a valuable learning experience. We are all on a path of continuous learning.
Practice Self-Compassion - Be kind to yourself. Focus on your strengths and abilities. You may not have all the answers today but that’s entirely normal.

Imposter syndrome is a common challenge faced by many business owners. It can hinder personal growth, decision-making, and overall well-being.

Remember, you are not alone in this struggle, and your achievements are a testament to your capabilities and hard work. We can help you create a plan for your business that removes the uncertainty and builds on your strengths.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

How does an accountant save you money?

admin@binghayco.com.au (Binghay Co) — Wed, 07 Feb 2024 01:10:10 GMT

Turning a profit will be high on your list of goals as a business owner. And if you want to generate the best margins, that means keeping an eye on the money that’s going out of the business, as well as what’s coming in.

So, how can your accountant help with this?

The days where your accountant just did the bookkeeping, compiled your accounts and filed your tax return are well and truly over. Modern accounting firms are far more interested in helping you with your financial performance, your business strategy and offering flexible value-add services that put you in better control of your finances.

If you partner with the right accountant, we can actually save you money – in both the short, medium and long-term. And that’s good news for the growth of your business.

Key ways your accountant can enhance your financial health

The less expenditure you have as a company, the bigger your profit margin. It sounds incredibly simple, doesn’t it? - The smaller your costs, the larger your profit. But if you’re not fully in control of your financial management, it’s very difficult to know WHERE you’re spending money, and WHY you’re not achieving your profit targets.

This is where working with a finance professional adds a huge amount of value. Your accountant helps put you back in the driving seat of your finances – and that’s never been more needed than in the current economic climate.

So, what specific things can your accountant do and what will the impact be on the future of your business?

1. Tax advice and planning – tax costs can be one of your biggest outgoings as a business, so we’ll focus on getting your tax planning under control, applying for all the relevant tax incentives and ensuring you minimise the taxes on your profits. By paying only what you’re legally required to pay – and making use of any reliefs – we can significantly cut your tax spend in the business.

2. Cashflow management and advice – ‘Cash is King’ may be a cliche, but it’s true. Unless you can balance the cash inflows and outflows from your business, you’ll never have the liquid cash to pay your bills, cover your payroll costs or cover your operational expenses. We’ll show you where money is going out, and coming in, so you achieve the ideal positive cashflow position.

3. Cost control and spend management – to improve your cashflow, you need to reduce your cash outflows. An important way to do this is to focus on cost control and spend management, reducing your expenditure, removing unnecessary costs and negotiating better deals with your suppliers. The more you cut costs back, the better your cashflow will be and the easier it will be to thrive, grow and become more profitable.

4. Forecasting and financial modelling – when we understand the key financial drivers in your business, we can build you a full financial model. This allows us to change the variables, run different scenarios and forecast the various future paths of your business. Being able to project these numbers forward gives you a clearer view of the path ahead – and that’s invaluable in the challenging economic times that we all face at present.

5. Better management reporting and information – your decision-making stands or falls on the information you have available to you. We provide detailed management accounts, breakdowns of key metrics and forecasts of your cashflow, spending, aged debt and revenue – all of which helps you to save money, make sound decisions and keep the revenues flowing into your business.

Talk to us about cutting costs and boosting profit

Rather than running your business on a wing and prayer, by working with an accountant you get a clear picture on your business financials. We’ll help you cut unnecessary costs, optimise the most profitable parts of the business and increase your overall return on investment.

Let’s talk about how we can work together to support your ongoing business profitability.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

What are your business goals for the year ahead?

admin@binghayco.com.au (Binghay Co) — Tue, 30 Jan 2024 06:28:41 GMT

The beginning of a new calendar year is an excellent time to review the year just finished and reflect on what worked, what didn’t, what you’d like to change and new things you’d like to implement.

Take the time to review the year and acknowledge all that has happened, good, bad or indifferent. Examining the year with an objective perspective can provide valuable insights to prepare for the next business year. Planning and goal setting will help provide a focus for your business efforts.

Your Yearly Business Review

- What were the most significant impacts on your business in the last 12 months? How well did you meet the challenges?

- What worked well last year? What systems, technology, products or services were successful?

- What accomplishments can you celebrate?

- What situation, event or experience provided the biggest learning opportunity?

- What is the biggest challenge or frustration you face as you prepare for the year ahead?

- What did you most enjoy during the year? Do more of it. What did you least enjoy? Do less of it!

- Analyse your financial reports. Are you earning what you’d like to? Is the business sustainably profitable?

Get Ready for a Great Year

While there are many metrics you could evaluate to track business performance, we’ve given you just a few ideas to inspire your business planning for a positive start to the year.

If you'd like to chat about what you can do differently this year to enable your business to thrive, contact us today to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

10 hot questions to ask yourself as a business owner

admin@binghayco.com.au (Binghay Co) — Mon, 15 Jan 2024 06:41:43 GMT

Running a busy and successful business means you often don’t have the time to step back and work ON the business. This can be a challenge if your aim is to grow and scale the company.

As experienced professional business advisers, we know the value of taking the time to ask yourself some pertinent questions. Holding yourself and the business to account is something we can help with. And there's never a bad time to pose a few questions and gauge where you're at with your planning, strategy, financial management and personal goals as an entrepreneur.

We've pulled together 10 hot questions to ask yourself as a business owner.

1. Can you explain why a customer should choose your over your competitor?

Knowing your value to a customer is vital if you’re going to market your offering in the most effective way. Think about why your brand stands out in the marketplace, and what opportunities and threats exist. This is the fastest way to tailor your brand to meet customer expectations.

We can help you by running a SWOT-based analysis of your business.

2. How happy is your workforce?

Your people are such a vital asset, but they won’t work well if they’re dissatisfied and disengaged from your business values. Ask yourself, are your employees motivated and engaged by your mission? Is there anything you can do to boost this engagement?

We can review your people strategy and the staff benefits you offer to your employees.

3. Are you meeting your cashflow goals?

Are there specific costs or inefficiencies that are holding you back from achieving a positive cashflow position? Ask yourself if your financial management is up to scratch. Identify your failings and tighten up your cash process.

We can review your cash management and look for efficiencies and cost-saving opportunities.

4. What keeps you awake at night?

It’s a stressful role being the boss, and there’s likely to be a lot playing on your mind. Consider whether there are any recurring business issues that are holding you back, or unexpected pitfalls that have appeared along the course of the business journey.

We can offer you seasoned advice whatever the issue, with resolutions to ease your worries.

5. Are you embracing everything that tech and AI has to offer?

Technology is moving fast with AI solutions and digital systems now an integral part of many business models. But are you doing enough to bring your business into the digital age? Are there tasks could you automate, or processes you could streamline?

We can suggest a suite of apps, software tools and digital solutions to boost your business.

6. Is growth part of your business strategy?

Not all businesses are focused on growth, but outlining your key goals around growth is an essential part of your business strategy. Ask yourself whether you want to scale at speed, or grow organically. Or whether you’re happy to be a boutique business that keeps things small.

We’ll help you define your growth goals and build a strategy that aims for success.

7. Do you have the numbers you need at your fingertips?

So much of what you do as a business is driven by data. But are you getting the overview you need of your important business metrics and key financial numbers? Think about where you need detailed data and metrics, and how this could put you in better control of the company.

We can help you expand your reporting and management information, so you have a better eye on performance, spending, cashflow and sales targets etc.

8. Have you identified your ideal customer?

Identifying your ideal customer is something every startup and new business should do. But when was the last time you updated your ideal customer outline? Think about who you’re selling to, how this audience has evolved and whether they are still the right customer to target.

We can run detailed customer profiles to help you pinpoint the best customers to target.

9. Have you thought about where your business will be in five years?

When the business is busy, the temptation is to focus on the now and to put your energy into fighting the most pressing fires. But without a forward-looking focus, you can lack direction. Ask yourself where you want to be in five years and how you plan to achieve these goals.

We'll help you create a detailed five-year plan, to give your journey more impetus and direction.

10. Are you planning for your own financial future?

You obviously spend a lot of your time thinking about your business – but how much time have you spent considering your personal financial future? Think about your life goals and how you plan to fund them, and where this money is likely to come from.

We can advise you on wealth planning, tax planning and the advantages of good all-year-round financial management.

Talk to us about running a health check for your business

If these questions have got you thinking about your business efficiency and growth plans, that’s a good thing. If you’d like to take this process further, we’d advise running a detailed health check for your business and your personal finances.

Book a meeting with us to talk through your goals, aspirations, challenges and strategy, so we can help you take the next step in your journey to entrepreneurial success.

C ontact us today to book a health check.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

What makes you a good entrepreneur?

admin@binghayco.com.au (Binghay Co) — Mon, 18 Dec 2023 06:50:04 GMT

Do you dream about starting our own business? And, can anyone become an entrepreneur?

When you look at the research, there are certain aptitudes, personality traits and business skills that tend to make you a more successful entrepreneur. But can you learn these skills? Or are these innate abilities that some entrepreneurial people are just born with?

Let's take a look at what makes a good entrepreneur.

What drives someone to become an entrepreneur?

There are upwards of 582 million entrepreneurs in the world. But what drives these people to start their own business? And why do so many reject the traditional path of a career as an employee in someone else’s company or organisation? On the whole, it comes down to three core drivers: freedom, passion and opportunity.

Respondents in recent research from [Search Logistics] (https://www.searchlogistics.com/learn/statistics/entrepreneurial-statistics/) gave their top three motivations on becoming an entrepreneur as follows:

- Being their own boss – 55% of entrepreneurs were motivated by the freedom of being the boss and stepping away from being an employee in the usual corporate structure.

- Pursuing their passion – 39% of entrepreneurs wanted to pursue a passion in a specific industry or niche, allowing them to follow an interest that’s close to their heart.

- Taking advantage of an opportunity – 25% of entrepreneurs made the leap to starting a business because the opportunity presented itself, and they took the risk.

The particular motivations which drive someone to found their own company are different for each person. But a desire for freedom and opportunity very often sit at the heart of the decision.

What are the key traits of a successful entrepreneur?

Entrepreneurs crave freedom and have a passion for grasping opportunities and turning them into workable and profitable business models. But are there specific character traits that make you more likely to take this entrepreneurial leap?

Every entrepreneur is unique, but there are some general characteristics that are likely to be found within a group of motivated entrepreneurs and business founders.

Many entrepreneurs will have:

- Visionary mindset – entrepreneurs possess the ability to envision future opportunities, set ambitious goals and develop a clear direction for their ventures.

- Resilience – successful entrepreneurs are good at bouncing back from failures, persevering through challenges and maintaining a positive mindset.

- Adaptability – entrepreneurs are usually highly flexible and open to change, helping them to adjust their strategies and business models to changes in the market.

- Risk-taking propensity – willingness to take calculated risks is crucial for entrepreneurs, allowing them to seize opportunities and drive innovation.

- Strong leadership skills – entrepreneurs inspire and motivate their teams, effectively communicate their vision and make sound decisions in dynamic business environments.

Talk to us about boosting your entrepreneurial skills

Does this sound like a description of you? Perhaps you relish the possibility of taking a calculated risk as an owner but feel your leadership skills are somewhat lacking. Or maybe you have immense vision for your business but find it difficult to deal with the highs and lows.

Whatever your current entrepreneurial skill set, we can work with you to refine and boost your abilities as a business leader. Working with a business mentor not only helps you push yourself to do better, but also lightens the load of being the sole captain of the ship.

Get in touch to talk about business mentoring.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Plain English guide to profit and loss

admin@binghayco.com.au (Binghay Co) — Wed, 15 Nov 2023 04:51:40 GMT

Here's our Plain English guide to profit and loss and what this report reveals about your finances.

What is profit and loss?

Your profit and loss statement is commonly called your ‘P&L’. It’s also sometimes referred to as your income statement or statement of earnings.

Your P&L is a breakdown of your company’s revenue (money coming into the company as sales and other income) and your expenditure (direct costs, overheads, expenses and other costs).

As a business, you obviously want to turn a profit and make money. Keeping a close eye on your P&L allows you to track your revenues and expenses over a set period, and look for ways to boost your profitability as a business.

How does profit and loss affect your business?

Being in control of your financial management is hugely important for any business. Your P&L is one of the main ways to track and analyse this financial performance.

To manage your P&L effectively, it’s important to focus on:

Revenue management – to keep your revenue (income) healthy, you need to be proactive about generating sales and monitoring your revenue streams. This helps keep your income steady and stable, while also identifying areas for growth and improvement.
Expense control – tracking and monitoring your operating expenses helps you spot where spending efficiencies could be made. Whether it’s overhead costs or inventory overspending, your P&L helps you spot unnecessary costs and boost profits.
Cost analysis – analysing your business costs can help you spot the opportunities for saving money. Whether it’s agreeing a discount for buying in bulk, or switching to a new supplier with cheaper rates, there are plenty of ways to cut costs and be more profitable.
Monitoring gross margin – reviewing the company’s gross margins helps you assess the profitability of each product or service. By pushing up prices, or cutting your production costs, you can boost those margins to drive up profits.
Financial reporting – preparing regular profit and loss statements is key to good financial management. Reviewing your P&L helps you assess the overall financial performance of the company and make better-informed decisions.

How can our firm help you with managing your P&L?

When you’re in control of your P&L, you have a tighter hold on the reins of your profitability.

As your adviser, we’ll help you run regular P&L reports as part of a monthly or quarterly package of management information. We can help you track, review and analyse your revenue and expenses to spot the best opportunities for boosting the company’s profits.

If you’d like to know more about the impact of profit and loss, we’ll be happy to explain.

Get in touch to chat about managing your P&L.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

The ATO agent nomination process

admin@binghayco.com.au (Binghay Co) — Tue, 31 Oct 2023 04:41:38 GMT

Because you are a new client, or your existing service arrangement with us has changed, you will need to nominate us as your official agent with the ATO - so that we can efficiently manage your tax and super affairs.

The ATO agent nomination process

To protect the security of your tax and super information, the ATO is introducing a new process to ensure that only your authorised tax agent, BAS agent or Payroll service provider can access your account and act on your behalf.

This process does not currently apply to individual taxpayers or sole traders. And only applies when you engage or change an agent or change the authorisations you give your existing agent.

The ATO Agent Nomination Process protects your business and means only your nominated registered agent will:

have access to your information
perform tasks on your behalf, such as lodging your tax return.

By nominating us as your official agent, access your account and act on your behalf for matters relating to:

companies including strata title bodies
partnerships
trusts
not-for-profits
joint ventures
cooperatives
self-managed super funds (SMSFs)
APRA-regulated superannuation funds.

We can efficiently manage your tax and super affairs, providing you with expert guidance and support throughout the process.

We can help and guide you through the steps to nominate us as your official agent. The following guide has easy steps to follow. (If you have not already set up access to Online Services for business, you’ll need to do this first). We cannot do this on your behalf but we can assist you through the process if needed - or contact the ATO for technical help with your myGov account.

Client-Agent Linking Steps - The ATO Guide

If you have any questions or need assistance with the nomination process, or anything else, please get in touch. We are here to help and will ensure your financial affairs are handled with expertise and care.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Inventory Accounting for Cafes: Why It's a Big Deal!

admin@binghayco.com.au (Binghay Co) — Tue, 17 Oct 2023 04:16:50 GMT

Running a cafe smoothly is all about keeping your coffee, ingredients, and everything else in check. But what exactly counts as cafe inventory?

In the cafe world, your inventory includes not just the ready-to-serve items for your customers, but also all the stuff you use to whip up those delicious drinks and snacks. Think of it as the ingredients that make your cafe's magic happen. But don't worry, your coffee machines, kitchen gadgets, and other equipment don't make the inventory cut. Oh, and if you're in the business of having suppliers ship directly to your customers, you can skip the inventory juggling act.

Now, why is managing cafe inventory so important?

Well, keeping tabs on what you've got in stock is crucial for various reasons. It helps you set the right prices, make sure you've got the right insurance, lodge accurate taxes, and even plan for the future, like if you ever want to sell your cafe.

And guess what? Smart inventory management can make your cafe life even sweeter:

Stock Level Magic: With the lowdown on your inventory, you can spot your top-sellers and the slowpokes. That way, you can reorder the crowd-pleasers and cut back on the less popular picks.
Follow the Money: Tracking your inventory lets you find out what's making the most dough and figure out your real profit margins. That means you can whip up the perfect pricing strategy.
Bulk Bargains: When you know which items are flying off the shelves, you can haggle for sweet bulk discounts with your suppliers, giving your cafe's profits a caffeine kick.
Marketing Mojo: By peeking at the trends in your inventory, you can tailor your marketing to what your customers are craving, making your cafe the place to be.

Good inventory management not only reduces waste but also keeps the cash flowing smoothly, giving you more dough to invest in growing your cafe. So, how do you get the hang of this inventory stuff? Well, it can get pretty complicated, but don't sweat it. Our team knows the cafe inventory game inside out and we can suggest some useful apps to use. Let's chat! �� #CafeInventoryHelp

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

FoMO or JoMO? Give your business decisions (and yourself) a chance to breathe

admin@binghayco.com.au (Binghay Co) — Sat, 14 Oct 2023 00:28:47 GMT

In reviews of buyer trends and marketing reports, the term FoMO often pops up. It stands for the fear of missing out. It’s the feeling that, whatever you’re doing, you’re missing out on something happening somewhere else, a product or experience you just must have.

In your marketing campaigns, it’s your friend. Let cuIn your marketing campaigns, it becomes your ally. Make sure customers and prospects understand the potential loss if they overlook this incredible opportunity, service, product, discount, or promotion.

o want to be connected at all times in case they let an opportunity slip. It can prompt snap decisions when you might be better off thinking it through. You can end up feeling like your day is at the mercy of whatever notification pings next.

To reset to your own goals and priorities, JoMO - the joy of missing out - may help.

Take a breath. Are you really missing out if you’re not connected every minute every day? Do you need to fence off some time just for your business and/or just for you and your family?

Start by turning your phone off or to silent. In the office, give yourself a couple of precious hours to work things through, devote some true thinking time to your business. At home, practice saying no to a few invitations. Try that new recipe. Plant those herbs. Or take to the hills, get some air, and really breathe.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

How much should you pay yourself?

admin@binghayco.com.au (Binghay Co) — Mon, 02 Oct 2023 00:37:31 GMT

Being the boss means you get to make all the big decisions about your business – including how much to pay yourself in wages, salary or drawings.

As the owner, you might need to underpay yourself in the early stages of building your business, so you can reinvest the profits. But your time is valuable – and you need enough money to pay the bills. So how can you find the right level of pay? It has to be enough to keep the mortgage paid, while also building a thriving business.

If you’re trying to decide how much to pay yourself, here are a few questions to ask yourself:

What can the business afford? - You need to leave enough cash in the business to keep it ticking along, pay your basic costs, and meet your tax obligations. Once you’ve considered all those outgoings, how much does that leave you as a potential salary? We can help you work out what that number is, so you can establish a sustainable rate of pay.
What’s the market rate for your role? - What would you have to pay someone to do the work you’re undertaking in this business? Maybe you wouldn’t actually be able to find anyone to work the same long hours, but if you were hiring someone with your experience, to do the same sort of work for 40 hours a week, what would they expect to be paid? That number is a good starting point for thinking about your own salary or drawings. If you’re being underpaid, it’s time to think about ways to grow your profits. If you’re being overpaid, congratulations on building a highly profitable business!
Could reinvesting profits grow your income faster? - You can take all the profits out of your business, which should give you a strong and sustainable income. Or, could you reinvest your profits and grow the business faster, leading to a higher income in the long-term? You might choose to spend some of your profits on advertising, a better website, or developing a new offering, for example. Or you could pay for assistance in some area of the business. If the investment leads to higher growth, it might be well worthwhile.

We’ll help you run the numbers

We can help you figure out how much your business can afford to pay you, analyse the potential gains of a business investment, or weigh up the pros and cons of hiring someone to help you.

Get in touch, we’d love to hear from you.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Should you buy a building for your business?

admin@binghayco.com.au (Binghay Co) — Mon, 18 Sep 2023 01:44:09 GMT

Tired of paying rent for your commercial premises and considering buying a premises for your business?

Owning a building works best if your business is well-established, you have money to invest, and you’re taking a long-term approach – it can take many years for this decision to pay for itself.

The advantages of owning a commercial property

You no longer need to worry about dealing with a landlord. You’re the landlord now, so your lease won’t end and you get to make all the decisions about how the premises is used. If you want to make changes to the fitout, it’s up to you.
You don’t have to worry about rising rent. Eventually, owning a premises will be cheaper than leasing. When you continue leasing, you can expect the rent to keep going up – sometimes the jump may be substantial.
If your business moves or closes, you still own the building. This can be a highly valuable long-term asset, depending on the type of building and the potential tenants.

The advantages of leasing your business premises

Leasing gives you more flexibility. You can move if your business gets too big for the space, or downsize if more people are working from home.
You don’t have to worry about paying building expenses like rates, warrants of fitness, and insurance.
Your rent is likely to be lower than the servicing costs for a commercial property loan, boosting cashflow so you have more to invest in the growth of the business.
The landlord will take care of repairs and maintenance on your building – when there’s a leak, for example, it’s not your problem.
Commercial buildings are typically expensive and financing is costly, so you’ll need to do plenty of research before you decide to make a purchase.

We can run a cost-benefit analysis

Could buying a building be the right choice for your business? We can work with you to analyse the costs and benefits of each option, to help you make an informed decision about which one will put you on track to achieve your goals.

Get in touch today, we’d love to hear from you.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Plain English guide to cashflow

admin@binghayco.com.au (Binghay Co) — Mon, 04 Sep 2023 01:52:06 GMT

Why is cashflow so central to good financial management? Here's our plain english guide.

What is cashflow?

Cashflow refers to the movement of money into and out of your business over a specific period.

In the most basic terms, cashflow is the process of cash moving out of the business (cash outflows), and cash coming into the business (cash inflows). The ideal scenario is to be in a ‘positive cashflow position’. This means that your inflows outweigh your outflows – i.e. that more cash is coming into the business than is going out.

When you’re cashflow positive, the main benefit is that you have the liquid cash available to fund your daily operations and debt payments etc.

On the flip side, if you’re in a negative cashflow position, this can be a red flag that the business is facing some financial challenges – and that some serious cost-cutting and/or revenue generation is needed.

How does cashflow affect your business?

Not having enough liquid cash is one of the biggest reasons for companies failing. So it’s absolutely vital that you keep on top of your company’s cashflow position.

Five key cashflow areas to focus on will include:

Monitoring your cash inflows and outflows – this means regularly tracking your cash inflows from sales, loans and investments, as well as managing your cash outflows from expenses, purchases and debt repayments.
Managing your account receivables and payables – efficiently managing your customer receipts and supplier payments helps smooth out your inflows and outflows – and delivers stable cashflow that’s easier to predict and manage.
Getting proactive with your budgeting and forecasting – creating realistic cashflow budgets and forecasts helps you predict your future cash position. By anticipating your future cash needs, you can actively plan for potential shortfalls or surpluses.
Being in control of your stock inventory – having excess stock in your warehouse ties up cash. So, it’s a good idea to optimise your inventory levels and to only manufacture/order the items you need on a day-to-day basis.
Investing in your cash reserves – with emergency cash reserves in the bank, you know you have the funds to handle unforeseen cashflow issues or sustain your operations during lean periods. This makes your whole cashflow position more stable.

How can our firm help you with cashflow management?

Positive cashflow is the beating heart of your business. Working with a good adviser helps you keep that cashflow healthy, stable and driving your key goals as a company.

We’ll help you keep accurate records, track your inflows and outflows and deliver the best possible cashflow position for the business.

Get in touch to chat about improving your cashflow.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Proving your ongoing business viability through 5 financial reports

admin@binghayco.com.au (Binghay Co) — Wed, 23 Aug 2023 06:26:49 GMT

Whether you’re applying for government subsidies, taking out a business loan or seeking investor support, you need to be able to demonstrate your ongoing viability as a business.

To prove this viability, it’s important to have the right financial information at your fingertips. This information is also just as important for your own internal planning and decision-making.

So, where do you start and what are the reports that you’ll need?

The numbers that prove you’re a business with a future

Any lender or government body wants to know that your business has a future.

As the owner, you may believe in the destiny of your company, but you also need the numbers to reinforce this argument. Banks, lenders and investors are taking a risk in backing you. Because of this, they want to know that you’re capable of making the agreed repayments, and that the business is in a financial position to deliver profits and payouts for investors.

Before investing in your business, organisations will want to see:

Evidence of a healthy sales pipeline and sales revenue
Manageable debt that’s not eating into your capital
A positive cashflow position that covers your main costs
Forecasts that show stability or growth in your revenues
A meaningful business strategy for the next two to five years of growth

The data you need to plan your future

You can’t run a business on a wing and a prayer. With so many different ways to track and record your business data, there’s no excuse for not being up to speed with your performance, your targets and your forecasted sales, cashflow, debt and profits.

This information isn’t just useful when approaching investors and lenders. It’s also vital for your own strategic thinking, your business planning and your internal decision-making

Crucial management information to know will include:

Your targets and budgets for the upcoming period
Your sales and financial performance against these targets
Your basic financial position and health
Your forecasts for future sales, cashflow and end profits

The 5 key reports that define your company’s growth

Today’s cloud accounting software makes it a breeze to produce detailed and informative financial statements. These are the main statements and reports to focus on:

Business plan – your business plan is a written document that outlines the company's goals, strategies and financial projections for future success. It’s your route map for the business journey that lies ahead, and a crucial document when approaching investors.
Sales reports and forecasts – sales reports give a historic summary of your past sales data, so you can track how you’re performing. Sales forecasts project this data forward in time to show future sales trends and potential sales growth you may achieve.
Revenue forecasts – a revenue forecast is a projection of your expected income or revenue for a specific period. Being able to track and forecast your revenue position is vital information when carrying out financial planning and decision-making.
Cashflow forecast – a cashflow forecast is an estimate of your expected inflows and outflows of cash over a specific period. By forecasting these cash inflows/outflows you can aim to keep the business in a ‘positive cashflow position (more cash coming in than cash going out).
Financial statements – the main financial statements to keep your eye on will be your:

Cashflow statement – shows your current cashflow position, so you can make the most informed decisions about spending and cost management.
Balance sheet – shows your present assets, liabilities, and equity. It’s a snapshot that reflects the company’s financial position at a specific point in time
Profit and loss statement (P&L) – a breakdown of the income coming into the business, and the expenditure going out. Crucial for managing your profitability.
Aged debts – categorises and analyses your outstanding customer invoices, based on when they should have been paid. Keeping on top of this helps to speed up payment and improve your cashflow position.

Talk to us about proving your business viability

Having the data and evidence to prove you’re a viable and stable enterprise is crucial. It’s these numbers that will help you plan your growth and access the investment you need to scale.

We’ll help you create a detailed business plan, revise your strategy and produce all the financial and non-financial statements you’ll need to make informed business decisions.

As your adviser, we’re in the best possible position to provide your management information.

Get in touch to talk tabout your financial reporting.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Avoid ATO’S increased tax penalties – reminders and updates

admin@binghayco.com.au (Binghay Co) — Thu, 10 Aug 2023 06:17:07 GMT

Announced as part of the 2023–24 Federal budget, increased funding has been provided to the ATO to scrutinise taxpayers who have high-value outstanding debts of over $100,000 and aged debts older than two years where those taxpayers are:

public and multinational groups with an aggregate turnover of over $10 million, or
privately owned groups or individuals controlling net wealth of over $5 million.

Increased penalty rates

After a recent increase in January 2023 from $222 to $275, Commonwealth penalty unit rate has witnessed yet another hike from 1 July 2023 and currently sits at $313 per unit. This means that if you fall behind on your tax lodgements you can expect the financial penalties to increase substantially.

Penalties may be levied on late lodgments of returns and reports that include but are not limited to:

Activity statements
Income tax returns
FBT returns
PAYG withholding annual reports
Single touch payroll reports
Annual GST returns and information reports
Taxable payment annual reports.

With the increased rates now in effect, a small business can expect to pay base penalties for failure-to-lodge returns ranging anywhere between $313 (1 penalty units) to $1,565 (5 penalty units), one unit for every 28 days the lodgment is overdue.

Small business lodgment penalty amnesty

The ATO is encouraging small businesses that have overdue income tax returns, fringe benefits tax returns or business activity statements etc. to take advantage of a lodgment amnesty that will run until 31 December 2023.

Announced in the 2023–24 Budget, the amnesty applies to tax obligations that were originally due between 1 December 2019 and 28 February 2022 and has been available since 1 June 2023.

To be eligible for the amnesty, the small business must be an entity with an aggregated turnover of less than $10 million at the time the original lodgment was due.

Next steps

To avoid being penalised at the revised higher rates for failing to lodge returns and reports, ensure you collate and send us all necessary information well before the lodgment due date so we can complete your lodgments on time.

If you anticipate delays, best practice is to engage with the ATO and tell them your situation. We can assist you with requesting an extension in lodgment due date, applying for remissions or if necessary, taking out a payment plan to pay off your tax debts.

Small businesses can avail the lodgment penalty amnesty and lodge eligible overdue forms before 31 December 2023 and the ATO will automatically remit any associated failure-to-lodge penalties.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

5 questions to ask when you are buying a business

admin@binghayco.com.au (Binghay Co) — Mon, 24 Jul 2023 03:07:02 GMT

Purchasing an existing company is a great way to expand your business empire. You can buy out a close competitor, or dip a toe into a new industry and expand your reach as a business group. But whatever the reason for the acquisition, you need to ensure you’re not buying a lemon!

Doing your research is a crucial part of the purchase process. As is asking some probing and insightful questions to help you determine if this acquisition is a good (or bad) idea.

Questions to ask before you make an offer

Buying another company is a major business decision. It’s a large outlay of capital and a big responsibility to take on. If you’re going to take the leap, it’s important to make sure the company in question is stable, well-managed and has a good future ahead of it.

Here are five vital questions to ask before entering into a purchase:

Why is the business for sale? There are many reasons why an owner might want to offload a company, not all of them good. Their sales may be dropping, they may have rising debts, there may be internal problems with staff or the market for their product/services may be coming to an end. Find out why, so you don't buy a clanger.
Is this a good industry to step into? Do your research on the industry, competitors, and marketplace that the business currently trades in. It's important that you step into an industry sector that has potential for sales, growth, stable revenues and potential profits. With volatile markets post-pandemic, looking at predictions and forecasts for your chosen industry niche makes good sense and helps you make an informed decision.
Have you done your due diligence into the business? Do your due diligence to make sure there are no financial, legal or HR skeletons in the cupboard that may jump out to surprise you. Is there an unpaid tax bill? Are there loans that are being defaulted on? Are there any legal cases being brought against the company? Has the business filed all its returns and accounts? As the new owner, any of these issues become your responsibility, so you want to check out the company’s records and history in as much detail as possible. This will prevent some major headaches further down the line.
Does it have an existing business plan? You'll need a business plan that takes the company forwards and gives you a pathway for your next steps as the owner. Is there a business plan you can use? When was the plan last updated? How well are they tracking against the milestones in that original plan? No business plan is written in stone, so you’ll almost certainly need to review, update and refine this strategy post-acquisition.
Are your management team and staff up to scratch? When you buy the business, you'll usually also be inheriting the team behind that company. Do you have a management team with the skills, experience and motivation that's needed? Are your employees engaged and do you have a big enough team to meet your own goals for the business? This team will be vital to your future success, so you want the best possible people and talent behind you as you steer a new course for the company.

Talk to us if you’re considering buying a company

Purchasing a company can be a complex and protracted process, even once you’ve completed all your due diligence and background checks. If you’re in the market for a business acquisition, do come and talk to us, so we can help you sort the top deals from the big risks.

We’ll help you complete the relevant checks and will work with you to create a new business plan and strategy that’s designed to turn your new purchase into a business success.

Get in touch to talk through your acquisition plans.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

5 challenges for small business - and how to beat them!

admin@binghayco.com.au (Binghay Co) — Mon, 10 Jul 2023 02:35:24 GMT

Founding, building and growing your own small business is a hugely rewarding experience for many entrepreneurs. But the road ahead isn't always smooth.

There are common challenges that crop up and ongoing issues that need to be factored into your business plan, your strategy and your own personal thinking.

So, what can you do to beat these challenges and make the journey as frictionless as possible?

5 proactive ways to overcome your business challenges

We’d all love to know what lies around the corner when it comes to the future path of your business. The truth is that every business journey is unique. But there are common challenges that every business owner or manager will be faced with – and being prepared for these hurdles is the best way to leap over them and take each challenge in your stride.

We’ve highlighted five common challenges and the simple ways to overcome them:

Uncertainty : No-one has a crystal ball to know exactly what's coming around the corner. But there are ways to be prepared for some unknown circumstances. You can't fully predict the main external threats like government policy, economic conditions or freak weather conditions. But you CAN use forecasting and scenario-planning tools to build up contingency plans so you have a Plan A, Plan B and even a Plan C. With forecasts of your business data, finances and industry trends, you can be ready to react, pivot and take positive action.
Competition : Small businesses often face stiff competition from larger, more established companies. To stay ahead of the curve, it's important to be nimble and agile. It's also vital to find your niche and to know precisely why your customers value your offering. By ploughing a unique furrow and keeping your customers happy, you can give yourself an edge over larger, slower-moving corporate-size competitors.
Access to capita l : It can be a struggle to secure funding as a startup, particularly if you have limited financial resources or a poor credit history. Having a detailed funding strategy is a crucial way to overcome this problem. Keep your finances in order and make sure you have in-depth financial reports to show banks, lenders and investors. It's also helpful to focus on paying suppliers on time, keeping debt levels under control and ensuring your cashflow is in a positive position. These are all excellent ways to improve your business credit rating and show you're a stable, risk-free prospect for lenders.
Hiring and retaining employees : Attracting and retaining talented employees is difficult, especially during the ongoing talent shortage. Offering competitive salaries or benefits packages can be one way to attract people. But it's also important to think about your brand reputation, your sustainability credentials and your CSR policy – all things that Millenial and Gen Z workers value alongside decent pay and benefits packages. Employees want to be proud of where they work, so make your company a progressive, satisfying and rewarding place to work.
Keeping up with technology : Business technology is evolving at a rapid pace. It can be daunting keeping up with all the available apps, tools and software solutions that are aimed at your business. The trick is to be informed but selective about the apps you use. Start with the operational and financial needs of the business and look for apps that can automate, improve efficiency or provide improved data and management information. Talk to other business owners and your profressional network to find out what the essential apps are in your industry. And do your research and homework before you choose any software solution to add to your app stack.

Talk to us about being an agile small business

Looking to the horizon for the upcoming pitfalls is essential as an ambitious and informed business owner.

As your adviser, we can help you generate the most informative management information, to keep you agile and ready for what lies around the corner.

We’re also on hand to discuss your ongoing strategy, how to react to upcoming risks and the best ways to access capital and manage your company’s finances.

Arrange a meeting and let’s see what the future may bring for your business.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Prepare for Finalising Single Touch Payroll

admin@binghayco.com.au (Binghay Co) — Thu, 29 Jun 2023 02:11:35 GMT

It’s nearly time to make a finalisation declaration for Single Touch Payroll. There is no need to issue payment summaries to employees you have reported through STP.

Employers must complete the finalisation declaration by 14 July for employees. Employers with a mixture of employees and closely held payees have until 30 September to make the declaration.

Small employers (fewer than 19 employees) that only pay closely held payees have until the payee’s income tax return due date. Employers will need to liaise with the individual payee about the exact tax return due date.

You may have some payees who have not been reported through STP, so you still need to issue a payment summary for anyone not reported through STP. You will also need to submit a payment summary annual report (PSAR) for any payments outside the STP system.

Once the STP finalisation has been sent to the ATO, the employee’s information will be released in their myGov account and listed as ‘tax ready’.

STP Payroll Checklist

Be efficient and prepare as much as you can now so that you are able to finalise your data by 14 July.

Check that your business details, including ABN, registered name and address and authorised contact person are correct in your software.
You should already have necessary details for all employees, both current and any who have terminated throughout the year if you are using STP. The essential information is full name, date of birth, address and tax file number.
Review any terminated employees. Is the correct termination date recorded in your software? Are Employment Termination Payments (ETPs) coded correctly?
Review salary sacrifice payments to superannuation for Reportable Employer Superannuation Contributions (RESC) amounts.
Check with us for any Reportable Fringe Benefit Tax (RFBT) amounts that should be included.
Check that all payroll categories are assigned to the correct ATO reporting category. This includes all ordinary earnings, loadings and penalties, allowances, commissions, bonuses, leave payments and termination payments.
You may have other unusual payments such as those made under a voluntary agreement for contractors or labour-hire arrangements—check that you have reported them correctly.

Finalising Single Touch Payroll

It’s important to verify payroll figures before finalising, in order to minimise the chance of errors and having to re-issue at a later date.The finalisation process is the same whether you are using STP Phase 1 reporting or Phase 2.

Once the payroll year is completed at 30 June, you can then analyse the payroll amounts for each employee and cross-check against the numbers in your profit and loss accounts.

Talk to us today if you would like us to make the STP end of year process easier by reviewing and validating your payroll figures prior to finalising the data and lodging with the ATO. The end of the payroll year will be here sooner than you think!

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Which business expenses can you claim against tax?

admin@binghayco.com.au (Binghay Co) — Wed, 14 Jun 2023 02:20:07 GMT

Incurring expenses is an unavoidable fact of running a business. But which expenses can you claim tax deductions against and which don’t meet the tax-free criteria?

Here’s our lowdown on which expenses you can claim against tax.

Which business expenses can you claim deductions against?

If your business expense is directly related to earning your assessable income then you should be able to claim a tax deduction against this particular cost.

For example, everyday business expenses that you may be eligible include:

Your day-to-day operating expenses
The purchases of products or services you’ve made for your business
Certain capital expenses, such as the cost of depreciating assets like machinery and equipment used in your business.

The amount of a deduction (and when you can claim it) will vary, based on the type of expenses you’re claiming. You can find out more on the Australian Tax Office (ATO) website here .

There are three basic rules for checking the your expense claim is a valid business deduction – and that it won’t be challenged by the ATO.

The expense must have been for your business, available as an allowable deduction and not for private use.
If the expense is for a mix of business and private use, you can only claim the portion that is used for your business.
You must have records to prove that the expense was incurred.

Which business expenses can you NOT claim?

As we’ve explained, you can claim a deduction against most business expenses that are incurred as part of your day-to-day revenue-generation activities. But there are some business expenses you cannot claim against tax.

These non-tax-deductible expenses include:

traffic fines you receive
private or domestic expenses, such as childcare fees or clothes for your family
expenses relating to earning income that is not assessable
Non-compliant payments – payments for which you have not met your PAYG withholding or reporting obligations -
the GST component of a purchase if you can claim it as a GST credit on your business activity statement.
Generally you cannot claim a deduction for the cost of capital assets that are dealt with under the capital gains tax rules, although there are some exceptions.
Your deductions may be limited for expenses incurred in relation to personal services income (PSI) if the PSI rules apply to that income.

Talk to us about reducing your business expenses

This isn’t an exhaustive list of tax-deductible expenses. There will be various ways to claim your operational expenses against the relevant reliefs and incentives offered by the ATO.

If you’re looking to cut back your costs and improve your tax efficiency, we can help. Talk to us about your regular operational expenses and tax costs and we’ll work with you to find the important reliefs, incentives and allowances that can be claimed.

Get in touch to start reducing your expenses

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Tax Tips for small businesses 2023

admin@binghayco.com.au (Binghay Co) — Wed, 31 May 2023 01:24:15 GMT

Common Tax Deductions for Small Business

Are you claiming all the business tax deductions that you are entitled to?

There are many expenses common to most small business, and there are other expenses that are specific to the nature of each industry and the goods or services that your business provides.

Operating expenses include accounting, administration, advertising and marketing, office premises, office running expenses, trading stock, legal fees, repairs and maintenance, insurance and vehicle expenses.
Employment expenses include salary and wages, fringe benefits, superannuation and training costs.
Other operating expenses may include things specific to your business, for example point of sale systems, freight, professional membership fees, professional education, protective equipment, tools or specialised software.
Capital expenses include machinery and equipment, vehicles, furniture and computers. Depreciation for these assets may also be deductible if the expense was not claimed immediately.

Expenses must relate to the running of the business and providing the goods or services that your business offers.

Some common expenses that are not deductible are fines and penalties, provisions for employee leave, donations to entities not registered as deductible gift recipients and some entertainment. Super and PAYGW are tax deductible when they are paid on time – but not if paid late!

There may be some expenses you want to check with us such as private usage of business vehicles or other equipment, prepaid expenses, bad debts, loss of stock and borrowing expenses. We’ll make sure to include all the deductions you’re entitled to.

What’s on the ATO Radar for Business Tax Returns?

Businesses whose benchmarks fall significantly outside the ATO’s small business benchmarks.
Work-related travel expenses – travel fares, accommodation, meals. The travel should be directly related to income producing activities and you need records to verify the travel claims.
Motor vehicle expenses – keep records for fuel, repairs and servicing, finance arrangements, insurance and registration. Keep a logbook to record private travel.
Fringe benefits – have you reported all benefits provided to employees?
Superannuation – have you paid the superannuation guarantee on time to employees’ super funds? The ATO will examine your Single Touch Payroll records including superannuation payments.
Instant asset write-off – the threshold remains at $150,000 this year, but there are rules about eligibility so talk to us to see if the asset deduction claims apply to your business.

Maximise Your Business Deductions

Remember to keep all your business records for at least five years, and payroll records for at least seven years. Companies must keep all records including director meeting minutes for at least seven years.

We’ll make sure you have time to plan for a tax bill, or if you are due a refund, you’ll get it within ten days of us lodging your tax return.

We’ll also check your business’s eligibility for concessions, offsets, incentives and rebates and make sure your business is calculating taxable income correctly, so you don’t pay more tax than you need to!

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

2023 Federal Budget Update

admin@binghayco.com.au (Binghay Co) — Wed, 10 May 2023 02:57:06 GMT

The 2023 Federal Budget Analysis below are proposals only and may not be made law. The information contained below is general advice and should not be used to make decisions regarding your personal situation. Please contact our office on (03)9770-0099 to discuss your personal situation.

Summary

Key proposals include:

Energy relief will provide savings of up to $500 for eligible households and $650 for eligible businesses.
Increased payments will be made to eligible income support recipients.
The instant asset write-off threshold for eligible small businesses will increase to $20,000 in 2023/24.
Employers will be required to make super contributions for their employees at the same time as they pay salary and wages.
The additional 15% tax on calculated earnings for super balances exceeding $3m has been confirmed.

Cost of living and housing measures

$500 electricity bill relief

Effective date: 1 July 2023

A credit of up to $500 will apply to electricity bills for eligible households to assist them with the high cost of electricity. The amount of credit will depend on where the person lives, as the Government is negotiating agreements with the States and Territories to contribute to the cost of the scheme. The following individuals will be eligible for the electricity bill credit:

pensioners
veterans
concession card holders including the Commonwealth Seniors Health Card
recipients of Carer Allowance and Family Tax Benefit A and B, and
those who are eligible for existing State and Territory electricity concession schemes.

Household energy upgrade

Effective date: Not stated

More than 110,000 low-interest loans will be available for energy-saving home upgrades (eg battery- ready solar power and modern appliances that heat and cool).

Expansion of Home Guarantee Schemes

Effective date: 1 July 2023

The Home Guarantee Schemes will be expanded to allow more individuals to buy a home. This includes the First Home Guarantee , Regional First Ho me Buyer Guarantee and Family Home Guarantee . Under these schemes, the Federal government acts as guarantor for a portion of a loan, allowing a house to be purchased with a low deposit and no lender’s mortgage insurance.

Siblings, friends, and other family members will be eligible for joint applications under the First Home Guarantee and the Regional First Home Buyer Guarantee. Currently, these guarantees are restricted to married or de facto couples, in addition to singles.

The Family Home Guarantee will expand from single natural or adoptive parents with dependents to single legal guardians of children including aunts, uncles, and grandparents.

The schemes will include:

non-first home buyers who have not owned a property in Australia in the last 10 years, to support those who’ve lost home ownership due to financial crisis or relationship breakdown, and
eligible borrowers who are Australian Permanent Residents, in addition to Australian citizens.

Incentive for build-to-rent houses

Effective date: 1 July 2024

The final withholding tax rate is proposed to reduce from 30% to 15% for eligible fund payments from managed investment trusts attributed to newly constructed build‑to‑rent developments. This provides an incentive for foreign investors. Construction must commence after 7.30pm AEST on 9 May 2023 (Budget night).

Furthermore, the capital works tax deduction (depreciation) rate is proposed to increase from 2.5% to 4% per year, increasing the net return for these developments.

Taxation

Small business instant asset write-off

Effective date: 1 July 2023 to 30 June 2024

The instant asset write-off threshold increases to $20,000. Small businesses with aggregated annual turnover below $10 million can immediately deduct the full cost of eligible assets costing less than $20,000 that are first used or installed between 1 July 2023 and 30 June 2024.

The threshold applies on a per asset basis. Assets valued at $20,000 or more can continue to be placed into a depreciation pool and depreciated at 15% in the first year and 30% thereafter.

Small and medium-sized business energy incentive

Effective date: 1 July 2023 to 30 June 2024

Businesses with an annual turnover of less than $50 million will get an additional 20% tax deduction on spending that supports electrification and more efficient use of energy. Up to $100,000 of this expenditure will be eligible for the additional 20% tax deduction, providing a benefit up to $20,000.

Eligible assets or upgrades will need to be first used or installed ready for use between 1 July 2023 and 30 June 2024.

This measure will help eligible businesses to:

convert to electric heating and cooling systems
upgrade to more efficient fridges and induction cooktops, and
install batteries and heat pumps

Electricity bill relief for small businesses

Effective date: 1 July 2023

Eligible small businesses will receive a $325 Commonwealth rebate to reduce the cost of their electricity bills. The government is negotiating with the States and Territories to match this contribution, taking total relief to $650.

Increase in the Medicare levy low-income thresholds

Effective date: 1 July 2022

The Medicare levy low-income thresholds will increase as follows:

The threshold for singles will be increased from $23,365 to $24,276
The family threshold will be increased from $39,402 to $40,939
For single seniors and pensioners, the threshold will be increased from $36,926 to $38,365
The family threshold for seniors and pensioners will be increased from $51,401 to $53,406

For each dependent child or student, thae family income thresholds will increase by a further $3,760 instead of the previous amount of $3,619.

The increase in the thresholds provides cost-of-living relief by taking account of recent CPI outcomes so that low-income individuals continue to be exempt from paying the Medicare levy.

Exempting lump sum payments in arrears from Medicare levy

Effective date: 1 July 2024

Low-income taxpayers will not pay higher amounts of Medicare levy if receiving an eligible lump sum payment (eg a compensation payment or underpaid wages). Taxpayers must be eligible for a reduction in the Medicare levy in the two most recent years to which the lump sum accrues. A lump sum payment in arrears tax offset already exists to reduce tax payable and Medicare levy surcharge. The eligibility criteria for the current tax offset will also apply for the proposed exemption of Medicare levy.

Extending the Personal Income Tax Compliance Program

Already effective

The Government will extend its Personal Income Tax Compliance Program and expand the scope to address emerging areas of risk (eg deductions relating to short-term rental properties to ensure they are genuinely available to rent).

Stage 3 tax cuts

There was no mention of changes to the Stage 3 personal marginal income tax cuts (for resident taxpayers), which have already been legislated to commence from 1 July 2024.

Social Security and Aged Care

Increased JobSeeker Payments

Effective date: 20 September 2023

Income support for working age and student payments will increase by $40 per fortnight. This increase will apply to:

JobSeeker Payment
Youth Allowance
Parenting Payment (Partnered)
Austudy
ABSTUDY
Disability Support Pension (Youth), and
Special Benefit

This is in addition to the indexation of payments which occurs on 20 September 2023.

The higher single JobSeeker Payment rate for those aged 60 and over who have been on payments for at least nine months, currently $745.20 per fortnight, will be available for recipients aged 55 years and older.

Increase in Commonwealth Rent Assistance

Effective date: 20 September 2023

The maximum Commonwealth Rent Assistance will increase by 15%.

Rent assistance will also index on 20 September 2023 as part of the twice annual review of rates.

Changes to Parenting Payment (Single)

Effective date: 20 September 2023

Parenting Payment for single parents of $922.10 per fortnight can be paid until the youngest child turns 14.

Currently, this payment is paid to eligible single parents if their youngest child is less than eight years old.

Additional funding for aged care

Effective date: 1 July 2023

The Government will provide additional funding to improve in-home aged care services. Among the measures it will fund is the release of 9,500 additional Home Care Packages in 2023/24. The additional Home Care Packages will reduce waiting times for clients, which are over 12 months for Level 3 and Level 4 packages.

A new Age Care Act is due to commence from 1 July 2024.

More affordable health care

Effective date: 1 July 2023

Individuals will be allowed to buy twice as many common medicines for the price of one prescription under changes to the Pharmaceutical Benefits Scheme (PBS) from 1 July 2023. This would allow a patient access to 60 days’ worth of medicine for each prescription. The change could save general patients up to $180 a year per prescription. New medicines will also be included on the PBS list to make these more affordable and easier to access.

GPs will be better incentivised to bulk bill consultations for children under 16, pensioners and other Commonwealth concession card holders.

Superannuation

Payday super

Effective date: 1 July 2026

Employers will be required to pay their employees’ super at the same time as salary and wages, via single touch payroll. This measure will make it easier for employees to monitor their employer’s payments. It’s also expected to reduce employer non-payments that result from superannuation liabilities building up over a quarter. The ATO estimates that $3.4 billion of workers’ super was unpaid in 2019/20.

The ATO will be provided with $40 million in additional funding to improve data matching capabilities, to detect and recover unpaid super payments. The ATO will also have enhanced unpaid superannuation recovery targets.

Non-arm’s length income

The non-arm’s length income (NALI) provisions that result from the underpayment of general expenses for SMSFs and small APRA funds will be limited to twice the level of the general expense that would otherwise have been incurred. In addition, the fund income that is subject to NALI (and taxed at 45%) will exclude taxable contributions.

This is better than the previously announced general expense treatment of applying NALI to five times the general expense under payment. Small funds will still need to carefully monitor any discounts for general expenses, such as the provision of tax and accounting services from a related party.

Large APRA regulated funds will be exempt from the NALI provisions for both general expenses and asset specific expenses.

Better targeted superannuation concessions

Effective date: 1 July 2025

The Government confirmed the previously announced proposal to apply additional 15% tax on calculated earnings where the total super balance exceeds $3 million. This is in addition to the existing super fund tax rate. The ATO’s first assessments will be made for the 2026/27 financial year. This will capture all superannuation funds, including defined benefit funds which will be subject to a valuation process to ensure these are treated in a similar way to other superannuation interests.

Increase in APRA superannuation supervisory levy

Effective date: 1 July 2023

The Government will provide further funding for the superannuation consumer advocate, which will be offset by an increase in the superannuation supervisory levy paid by APRA regulated funds. Details on the increase in the levy have not yet been released.

Important information and disclaimer

The information in this communication is factual in nature. It reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue, and may be subject to change. In some cases, the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. Examples are illustrative only and are subject to the assumptions and qualifications disclosed.

This communication is not available for distribution outside Australia and may not be passed on to any third person without the prior written consent of Binghay & Co.

Whilst care has been taken in preparing the content, no liability is accepted for any errors or omissions in this communication, and/or losses or liabilities arising from any reliance on this communication.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

What are the risks of taking out a personal guarantee on a loan?

admin@binghayco.com.au (Binghay Co) — Tue, 02 May 2023 01:34:28 GMT

To fund the growth of your business, you’ll almost certainly need to take out a business loan at some point. But many lenders will ask you to provide a personal guarantee against this business loan – and there’s a risk element to consider when taking out finance.

So, what does offering a personal guarantee on a secured loan actually entail? And what are the principal risks of becoming a guarantor?

Understanding the key risks of a personal guarantee

When you agree to offer a personal guarantee, you’re essentially promising to repay the loan if the business can't make the payments – and to do this out of your own money or assets. This might seem like a small step to take, but giving a personal guarantee can have serious consequences if your business is unable to repay the loan.

Here are some of the risks of giving a personal guarantee:

Personal liability – by signing a personal guarantee for the loan, you're putting your own personal assets on the line. If your business defaults on the loan, the lender can come after your personal assets to collect the debt. This means your home, car, savings, and other personal assets are all fair game and could be at risk.
Negative impact on credit score – if the lender comes after your personal assets, this can have a negative impact on your personal credit score. As a result, it could become more difficult for you to obtain credit in the future. Lenders will see you as a higher risk, which could affect your ability to borrow, take out a mortgage or find personal finance.
Strained relationships – when you're asked to give a personal guarantee by a business partner or family member, this can put a strain on your business and personal relationships. Having to repay the loan from your own assets can cause resentment, mistrust and ongoing problems between you and your partner, or family member.
Difficulty obtaining credit for your business – giving a personal guarantee for a loan may get the business out of a short-term financial hole. But when the business relies on personal loans from directors, this can impact your ability to obtain credit for your business in the future. Lenders see this as a risk and may be less likely to extend credit.
Risk of bankruptcy – if the business can’t repay the loan and the lender comes after your personal assets, this has the potential to push you into personal bankruptcy. Becoming bankrupt can have serious long-term consequences, including difficulty obtaining credit, loss of assets and damage to your credit score.

Talk to us about your business finance plans

If you’re planning on taking out a business loan, it’s important to consider the possible risks. Make sure you understand the risks involved and have a plan in place for repaying the loan if the worst happens and the business can’t meet the repayments.

We can help you work out a strategy for your business finance plans. We can also connect you with a suitable independent financial adviser or legal expert to explore the risk threats

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Using data analytics to give your business a competitive advantage

admin@binghayco.com.au (Binghay Co) — Wed, 12 Apr 2023 01:56:44 GMT

Data analytics is rapidly changing the way businesses are operated. By making use of your financial and non-financial data, you can quickly start to gain a deeper insight into your operations, performance and financial management.

Data-driven decisions are quickly becoming the norm, for even the smallest business. Data analytics allows helps you spot the patterns. Understand the data trends. And preview the upcoming threats and opportunities for improvement.

Taking a deep dive into your data

Data analytics has become a crucial tool for small business owners that want to stay competitive and grow their operations in the most informed way possible.

By collecting, analysing and making sense of data, you can gain valuable insights into your performance.

This means you can quickly identify the areas that need improvement and the opportunities in the market – while making data-driven decisions about your future.

To deliver the best insights from your data:

Calculate which data and metrics are most important to the business - what are the key numbers and drivers of success for your particular business? By analysing your data, you can determine which data and metrics are most important to your business and track these numbers in your cloud accounting platform or forecasting app.
Track KPIs in your software stack – your cloud-accounting platform can provide a dashboard that shows all your performance indicators (KPIs) key in one place. To add to this, you can also integrate with industry specific or tailored reporting apps to create detailed management information and reports. Tracking and reporting on these key numbers helps you analyse your data, create detailed breakdowns of your business information and monitor your sales, business and financial performance in real-time.
Look for the patterns and opportunities in the data – what you’re looking for in your data is the trends, patterns and insights that will help you become a better business. Pull out the trends in your customers’ behaviour, spot opportunities for growth and optimise your operations, to help push the company towards success. Non-financial data about customer behaviour and experiences can also be invaluable. When you know your customers expectations and spending habits, that gives you the foundations to tailor your products and services to their needs. It also helps drive sales, revenues and get a better return on investment (ROI) from your operations.
Use AI to analyse your data – with the help of artificial intelligence (AI) and machine-learning applications, you add the ability to sift, filter and compare your data in superhuman ways. AI can process and analyse data at a speed and volume that would be impossible for a human being. Software can measure progress towards goals or detect variances in budget numbers, flagging up these insights as notificiations in your dashboards and management information.
Keep yourself ahead of the competition – With the right smart data-analysis tools at your fingertips, you’ll make informed decisions that help you stay ahead of your competitors and new entrants. These tools help you identify new market segments, spot opportunities for growth and optimise your operations to stay competitive in the market. In the fast-moving digital age, keeping on top of your data is the fastest way to give your business a much-needed edge.

Talk to us about employing data analytics

Data analytics is an essential tool if you want to stay competitive and grow your operations.

We’ll help you track the right data, produce the most insightful management information and deliver the insights you need. Whether your goal is improved business outcomes, cost savings, increased revenue or improved customer satisfaction, we’ll help you delve through the data and make informed decisions that will drive the future of your business.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Getting more from your procurement spending

admin@binghayco.com.au (Binghay Co) — Wed, 05 Apr 2023 01:43:35 GMT

Keeping the wheels of your business turning can be expensive. As part of your ongoing business cycle, you’ll need to buy the goods and services that keep you operational. This might be subscriptions to business software, raw materials for production or even accounting services.

But if you’re going to get the maximum value from this procurement process, it’s important to be fully in control of what you’re buying and how you manage these costs.

Managing your procurement in tough economic times

There’s no escaping the fact that cashflow is tight for many businesses at present. Globally, we’re experiencing a worldwide economic slowdown, alongside the pressures of a supply chain crisis that has pushed up prices and reduced margins.

Because of this, it’s important for you to keep a close eye on your procurement, so you can find the best prices, strike the best deals and keep your business in a positive cashflow position

If you’re using the most expensive logistics partner, or spending too much on raw materials, this can start to have a big impact on your profitability and your ability to grow.

5 key ways to enhance your procurement spending

Keeping your business in a positive cashflow position is all about ensuring your cash inflows (your income) outweigh your cash outflows (your costs).

When your procurement costs are high, it makes it a real challenge to maintain this positive cash position. The answer is to examine your spending and to proactively reduce your costs, improve your supplier terms and generate a tighter and more effective procurement process. If your procurement process helps you cut down on your spending, you’ll also improve the overall financial health of the whole business.

Here are 5 key ideas to help you get in control of your procurement:

Reduce your base cost per item – if you buy goods into the business, it’s important to think about your basic cost per unit. Your unit cost is difficult to control, but there are ways to reduce it. Try getting multiple quotes from a variety of suppliers so you can source a provider that offers the best mix of value, quality and reliability, at an economical price. Negotiation can also be an effective way to bring prices down.
Cut your logistics and delivery costs – physical goods have to be transported to your premises and to your end customers. These logistics costs are an integral operational expense, but they can still be reduced as part of the procurement process. Search for carriers and logistics providers that offer the services you need and then see if they open to negotiation on prices. Ask if discounts are offered if you offer shorter payment terms or if you join a preferred customer program to help reduce prices.
Nurture the best supplier relationships – nurturing good relationships with your suppliers sets the best possible foundations for your procurement management. Building that stability into your supply chain deepens trust and makes it easier to negotiate favourable terms. Put some effort into nurturing good relationships with your supplier and make sure you always pay on time. This helps to build a good reputation with your supplier, making your procurement process simpler and more cost-effective.
Reduce tax and duty costs – whether you’re selling nationally or across borders, there are likely to territory-specific taxes and duties to pay when buying and transporting your goods. Working with a tax adviser who knows your industry and/or territories helps a great deal. They can check you’re paying the right taxes on your goods/services and that they’re correctly categorised for taxes like VAT or GST. Working with a customs broker also ensures you pay the correct duty on all your imports and exports.
Using tech to get in control of procurement – business software is transforming the efficing of procurement. There are plenty of cloud-based procurement solutions available, giving you the benefits of 24/7 accessibility in the cloud and one point of truth for all your procurement data and reporting. This helps to streamline your internal processes, manage risk more effectively and keep a close watch on spending against budgets, cashflow and expected expenditure. By keeping yourself informed, you can manage your expenses by putting caps on spending, or switching to new suppliers that can offer you a better deal or cheaper prices.

Talk to us about your procurement management

Taking the time to improve your procurement management is a no-brainer in the current climate. You’ll improve your cashflow, supplier relationships and your ability to ride out the slowdown.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Your upcoming tax calendar for April and May

admin@binghayco.com.au (Binghay Co) — Fri, 31 Mar 2023 00:30:21 GMT

As we come up to the end of March, we have our final 3 months to finalise tax planning for the 2023 income year.

Despite the need for tax planning, April and May are also critical months to ensure all your tax lodgments are complete to avoid any penalties.

In order for you to be across your tax obligations, below are the key compliance dates coming up. If you have questions or need help with any of the following, we are here to help.

KEY TAX DATES – APRIL/MAY 2023

21 April 2023 – GST – Monthly Activity Statement and payment for March
21 April 2023 – PAYG withheld – Monthly Activity Statement and payment for March
21 April 2023 – PAYG instalmen t – Activity Statement and payment for monthly reporters for March
28 April 2023 – GST – Quarterly Activity Statement and payment for the January to March 2023 quarter if you do not lodge with us
28 April 2023 – PAYG withheld, FBT instalment and PAYG instalment – Quarterly Activity Statement and payment for the January to March 2023 quarter if you do not lodge with us
28 April 2023 – Superannuation guarantee – Lodgment and payment of superannuation guarantee statement
9 May 2023 – 2023-24 Federal Budget
15 May 2023 – Income tax – Due date for payment of outstanding 2021-22 income tax for companies and superannuation funds.
15 May 2023 – Income tax – Due date for lodgment of 2021-22 income tax returns for all taxpayers if your lodgment date was not earlier, and you are not eligible for the 5 June concession.
21 May 2023 – GST – Monthly Activity Statement and payment for April
21 May 2023 – PAYG withheld and PAYG instalment – Monthly Activity Statement and payment for April
25 May 2023 – BAS – Quarterly Activity Statement lodgment and payment due date for the January to March 2023 period if you are lodging with us
28 May 2023 – Fringe benefits tax – 2022–23 lodgment and payment of fringe benefits tax return if you do not lodge with us.

Anything keeping you up at night?

If you’re facing operational issues, tackling people challenges, or have health and safety questions, give us a call or email us. We are here to help.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Managing your marketing budget to improve your ROI

admin@binghayco.com.au (Binghay Co) — Wed, 08 Mar 2023 09:13:19 GMT

Having a well-planned marketing budget can help you allocate resources to the right digital marketing channels and maximise the effectiveness of your campaigns.

But where do you begin when it comes to managing and tracking your budgets?

Businesses spend between 2% and 5% of their revenue on marketing to promote their products and services. That might not sound like much, but bear in mind that it’s vital to use your working capital wisely. So, whatever the size of your marketing spend, you want to make sure that every penny is successfully helping to raise awareness of your brand and your products.

When it comes to marketing spend, you and your executive team will want to see real-world results from your marketing – and tangible evidence of that elusive ROI.

To get in control of your marketing budget:

Decide which marketing channels will be most effective – Whether you’re considering video, social media, blogging, events or above-the-line advertising, think about which channels are likely to deliver the best results. Do your research, talk to your customers and use the channels where your audience are most likely to engage with you.
Understand your marketing spend across different channels – each channel in your marketing strategy has to deliver. But how much cash should you invest in each channel? Talk to other marketers in your sector, look at industry benchmarking and get a ballpark figure for a ballpark spend on each channel. By adding up the costs for each channel, you get a total figure for your overall marketing spend. Make sure this doesn’t overrun the planned percentage of your revenue that’s set aside for marketing.
Calculate how much revenue and profit you're likely to generate – you can never predict the exact outcome of your marketing activity. But you can set revenue targets for each channel, and set clear goals for both the financial and non-financial ROI you're likely to achieve. For example, how many customers will each channel bring in? How will this impact on cashflow? What’s the desired impact on your revenue and profits?
Track your marketing spend in your cloud accounting – the latest cloud accounting platforms make it very easy to record and track your marketing costs. Track your marketing spend by channel, product or cost code to give yourself a detailed breakdown of all your spending. This gives you the data needed to track performance over time, so you’re in complete control of the money you’re spending.
Manage your data and make informed decisions – if you combine the data and reporting from your cloud accounting and your marketing software, this gives you the best possible management information relating to your marketing. In turn, this gives you the information you need to make informed decisions on your marketing. Ask yourself:
Where are you spending the most money on marketing?
Which channel is converting the greatest number of targets?
How much of your marketing budget have you spent – and what remains?

By finding the answers to these questions, you make it much easier to make sensible decision on how to improve your ROI and how to boost your overriding digital presence as a business.

Talk to us about tracking your marketing spending

If you want to drill down deeper into your marketing spending (and the ROI this money is delivering), please do book some time to talk to us .

We’ll help you set up new cost codes in your accounts software and refine your marketing budgets per channel. We’ll also work with you to customise your dashboard and management information, so you have all the financial and non-financial data you need at your fingertips.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Xero Payroll users need to transition to STP phase 2 now

admin@binghayco.com.au (Binghay Co) — Wed, 01 Mar 2023 08:56:50 GMT

Single Touch Payroll (STP) is a government initiative that requires employers to report their employees' tax and superannuation information to the Australian Taxation Office each time they run their payroll.

Instead of reporting this information at the end of the financial year, employers now need to submit this information to the ATO after each pay run using compliant software. STP streamlines the process of reporting payroll information, reduces errors, and ensures that employees are paid accurately and on time.

STP Phase 2 requires extra information to be reported with each STP pay event. Additionally, Phase 2 submits the pay run information to multiple government agencies by using standardised categorisation of income and payroll components.

Xero users were able to take advantage of a deferral before making this transition, but this is coming to an end, meaning all Xero Payroll users must transition to the Phase 2 reporting standard. Mandatory Phase 2 reporting is set to commence from 31 March 2023.

The following Xero blog has answers to frequently asked questions and information on the steps you need to take.

Xero Payroll users need to transition to STP phase 2 now

Get in touch if you need help. We can review your payroll software and systems before upgrading to STP Phase 2.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Budgets are boring – 5 ways to spend less without budgeting

admin@binghayco.com.au (Binghay Co) — Tue, 21 Feb 2023 10:40:47 GMT

If you hate budgets and budgeting, how can you easily cut your spending? Here are five ways to save without tracking every transaction:

Review your subscriptions - Your fixed outgoings are the easiest way to cut back: big outgoings like your insurance, power, phone and entertainment subscriptions. If you can reduce or eliminate even a few of these, you’ll make an immediate difference to your spending.
Embrace low-cost social activities - A night of drinking and dining out is fantastic fun, but it’s also costly, so try to make it an occasional treat. Instead, check out the free and cheap activities in your area and swap an expensive night out for a more cost-effective option .
Have a zero spend day - Pick one day a week, or one day each fortnight, and try to spend nothing. Make your own food and coffee, stay away from the shops and don’t add anything to your cart.
Plan your meals - Groceries have shot up in price over recent years. Planning your meals for the week and shopping accordingly means you can spend less and buy fewer takeaways.
Pay yourself first, then live off what’s left - Pay a realistic amount into your investments, savings or debt reduction first, advises the author of Automatic Millionaire . Then pay your commitments, like the utilities. Whatever is left over, live off that. If you’re not sure how much to pay yourself, we can help.

Confession time: we love budgets!

We actually love budgets, even though they have a boring reputation. They’re part of the spreadsheet family, and you know that spreadsheets are close to our hearts.

While you can save money without a budget, if you embrace one it can turbocharge your success. There are apps to make it easier and support your saving goals.

So whether you want help with saving, or a budget for your personal life or your business, we can definitely give you a hand. Get in touch, we’d love to hear from you.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

How to stay competitive in your industry

admin@binghayco.com.au (Binghay Co) — Wed, 15 Feb 2023 09:18:57 GMT

It’s difficult to make your business stand out from the crowd, especially in the 21st century digital environment where businesses large and small are competing for the same customers.

Remaining competitive is vital for any business. If you stay ahead of your competitors and hang onto your customer base, your sales stay stable and your revenues remain predictable.

But how can you do that in today's increasingly challenging business environment?

Key ways to remain competitive in your market

No market sits still. And the competitiveness of your company’s brand will also fluctuate and evolve over time. But this doesn’t mean that you can just sit back and let your competitive edge fade away. The more proactive you are about your position in the market, the more you can do to preserve your advantage and keep your business ahead of your competitors.

Here are some helpful ways to boost your competitive edge:

Provide a personalised experience for your customers – customer experience is everything in the digital age. A happy customer will buy more, so you need your CX to deliver every time, no matter what. Try analysing your customer data and feedback, and then using that information to tailor the customer's experience with your company.
Carry out competitor intelligence activity on your main competitors – competitor intelligence is an important activity for any company. It involves gathering data about your competitors, including their strengths and weaknesses. You’ll need to identify the competition, find out what they're doing, and analyse the data you've collected.
Offer high-quality products or services at reasonable prices – you won’t sell high volumes if you don't have a quality product or service. And you also need to offer a price point that your customers see as good value. If you're not sure if your prices are competitive, take a look at what your competitors are charging. This will give you an idea of what people are willing to pay for the same products or services that you offer.
Develop new technologies that are not yet on the market – investing in new technologies is risky but can also be profitable. To help mitigate the risks of developing a new technology, it is important to research the market and make sure that there is a genuine customer need for your product. It's also important to ensure that your product will be affordable and has potential for growth in the future.

Talk to us about reviewing your business strategy

Keeping your business at the competitive edge of the market can be a challenge. But by analysing your customer and competitor information, you can do your best to remain competitive and keep your dominant position in your market or industry sector.

We’ll help you identify the risks, spot the opportunities and amend your business strategy to remain competitive, stable and profitable in the future.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

5 signs you're undercharging

admin@binghayco.com.au (Binghay Co) — Thu, 09 Feb 2023 09:00:06 GMT

Are you undercharging for your services? It can be hard to tell, particularly if you’re in a niche industry or you’re a contractor. Costs have been rising, so it may be time to rethink your own pricing.

Here are five signs that you might be undercharging:

Nobody ever questions your quotes - Do all your new clients accept your quotes or charges without asking any questions, requesting a breakdown or wanting a discount? It’s possible they’re delighted to be getting such a great deal.
You're run off your feet but you can’t afford to get help - When you’re working yourself to the bone, but there’s not enough money left over to employ someone to help you, your prices are too low – or something else needs to change.
Your prices have been the same for two years or more - In most industries, prices increase just slightly each year. Leave your prices flat for too long and you’re not keeping up with the market; make sure you review your fees annually.
You’re overbooked - When business is booming and there’s no room for new clients, it’s time to raise your prices.
Clients don’t treat you as well as they should - When clients think they’re paying peanuts, they’ll often take you for granted. They don’t see your time as valuable, so they feel free to mess you around.

What should you be charging?

Finding your pricing sweet spot could take a little time. You’ll need to do some research, maybe ask around a little, and find out where your competitors are pitching their rates.

We can help too – if we have clients in similar industries we might be able to give you some indication of typical fees, so give us a call or drop us a note. We’d love to hear from you.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Your upcoming tax calendar for February and March

admin@binghayco.com.au (Binghay Co) — Mon, 06 Feb 2023 08:38:24 GMT

In order for you to be across your tax obligations as you get back into the swing of things, below are the key compliance dates coming up. If you have questions or need help with any of the following, we are here to help.

KEY TAX DATES – FEBRUARY/MARCH 2023

21 February 2022 – GST – Monthly Activity Statement and payment for January.
21 February 2022 – PAYG withheld – Monthly Activity Statement and payment for January.
21 February 2022 – PAYG instalment – Activity Statement and payment for monthly reporters for January.
28 February 2023 – GST – Quarterly Activity Statement and payment for the October to December 2022 quarter.
28 February 2023 – PAYG withheld, FBT instalment and PAYG instalment – Quarterly Activity Statement and payment for the October to December 2022 quarter.
28 February 2023 – GST Annual Return – Lodgment and payment of annual GST return or Annual Information Report for GST payers who are not required to lodge an annual tax return.
28 February 2023 – SMSF Annual Return – Lodgment of annual return and payment of outstanding income tax for SMSFs if 2021–22 was your first year in operation.
28 February 2023 – Superannuation guarantee – Lodgment and payment of superannuation guarantee statement.
28 February 2023 – Company tax return – 2021–22 lodgment and payment of company tax return if you do not lodge with us.
21 March 2023 – GST – Monthly Activity Statement and payment for February.
21 March 2023 – PAYG withheld and PAYG instalment – Monthly Activity Statement and payment for February.
31 March 2023 – Fringe Benefits Tax – The last date of the 2022–23 FBT year.
31 March 2023 – Company tax return and consolidated head companies – 2021–22 lodgment and payment of company tax return if your company has more than $2 million in total income and you do not lodge with us, unless you are required to lodge earlier.
31 March 2023 – Superannuation fund tax return – 2021–22 lodgment and payment of superannuation fund tax return if the fund has more than $2 million in total income and you do not lodge with us, unless you are required to lodge earlier.
31 March 2023 – Individual tax return – 2021–22 lodgment and payment of individual tax return if your latest tax return resulted in a tax liability of $20,000 or more.
31 March 2023 – Trust tax return – 2021–22 lodgment and payment of trust tax return if the latest tax return resulted in a tax liability for the trustee of $20,000 or more.

Anything keeping you up at night?

If you’re facing operational issues, tackling people challenges, give us a call or email us. We are here to help.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

5 ways to get in control of your business finances

admin@binghayco.com.au (Binghay Co) — Tue, 31 Jan 2023 00:06:28 GMT

Having proper control of your business finances is a big advantage. It helps you make well-informed business decisions and keeps your organisation profitable.

With so many digital tools for managing your bookkeeping, accounting and management reporting, it's never been easier to manage, track and forecast your financial position.

But what are the main tools you need? And how do you set up your financial systems, apps, processes and reporting to put yourself back in the finance driving seat?

1. Bring your bookkeeping into the digital age

Digital bookkeeping apps are a great way to digitise your receipts, records and source documents. This not only saves a lot of time at year-end, it also makes it much easier for you to keep track of your company’s finances and accounting. Keeping your receipts in a box to manually enter at period-end is no longer enough. Take the next step and digitise your receipts at source, so you have up-to-date digital records and copies of source documents.

Optical character recognition (OCR) software, like Dext Prepare or Auto Entry, scans the receipt, converts it into a digital format and stores it in the cloud.

2. Do your accounting in the cloud

Cloud accounting is a software-as-a-service (SaaS) solution that helps you carry out all your main accounting and financial management online, without having to install any software.

Cloud accounting providers, like Xero, QuickBooks, MYOB or Sage, design their accounting platforms to take the pain and hassle of business accounting. You get all the tools and features you need to work on your accounting tasks. And your platform provider will also take care of all the data storage, backups and security of your data.

A good cloud accounting platform does more than just save your hard drive space. It also provides you with tools and dashboards that improve your access to management information, financial reporting, forecasting and projections, performance tracking and more.

3. Use the latest in expense management tools

Expense management can be a time-consuming and tedious job. But it’s also a vital task that helps you ensure you’re spending company money wisely and not overspending. If employees start going over their budget limits, this can be a costly mistake for the company and your cashflow.

Expense management tools, such as Soldo, Weel or Pleo, help you manage staff spending by giving employees virtual cards that are linked to a specific budget, account and code. This helps you track their expenses easily and make sure they’re staying within their budgeted limits. These platforms also give you detailed reporting and analytics, so you can see where money is being spent, and where savings can be made.

4. Make it easy to accept digital payments

The problem of slow payment is one of the most frustrating things for small businesses. If your customers don’t pay on time, this can result in a loss of revenue, poor cashflow and an inability to cover your basic costs and overheads. To resolve this issue, many companies have begun to switch to digital payment platforms that make it simpler, faster and easier to collect payment.

Payment platforms, like PayPal, Square or Stripe offer faster payment times and more control over the customer experience. Some platforms even integrate with your cloud accounting, so you get automatic bank reconciliations.

5. Embrace the latest in digital reporting and forecasting

With digital accounting changing so rapidly in recent years, there's never been a better time to embrace the benefits of the latest in digital reporting and forecasting.

Economic conditions are hard to predict. So it's crucial to be able to quickly analyse data, check your performance and make predictions about how your company will fare in the coming months. When you use cloud solutions for financial reporting and key metrics, you'll be able to monitor trends in real-time while having access to the data anytime, anywhere.

Having this information at your fingertips helps you make informed decisions faster than ever before – and that translates that into more sales, increased business growth and bigger profits.

Talk to us about updating your financial systems

If you’re looking to give your finances a touch of digital magic, please do come and talk to us.

We can walk you through the best cloud platforms, fintech apps and business tools to add to your app stack – so you’re ready to make the most of a digital approach to your finances

Get in touch to supercharge your finances.

If you want to learn more about how we can support your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Get in control of cashflow

admin@binghayco.com.au (Binghay Co) — Tue, 24 Jan 2023 23:48:07 GMT

It’s a well-worn phrase, but cashflow really is the lifeblood of your business.

When your cash inflows are greater than your cash outflows, that puts you in a positive cashflow position – giving you the liquid cash needed to trade, improve and grow as a business.

But if costs start to outstrip your income, that can leave too little cash in the pot. This results in mounting debt, problems paying suppliers and (in the worst cases) the failure of your business.

So it’s vital to get proactive with cashflow management!

Fast ways to improve your cashflow

Cashflow is an ongoing process, where you need to constantly track, monitor and act on the numbers you see in your regular cashflow statements.

A negative cashflow position can be due to a number of factors, whether it’s insufficient sales, slow payment of invoices or poor cost management. The solution to these issues is to take a proactive and holistic approach to improving the company’s cash situation.

Some key ways to boost your cash position include:

Improve your sales and marketing – creating more sales and boosting income
Make it easy to get paid – using the latest in payment tech to speed up payment times
Track and manage debts – chasing any late payments to reduce your aged debt
Manage spending effectively – and start to track, review and reduce your costs

Talk to us about improving your cashflow

If cashflow is becoming a headache for your business, we can quickly help you get back in control of your cash position – and attain that all-important positive cashflow position.

Get in touch to improve your cashflow.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

New accountability measures proposed for ABN holders

admin@binghayco.com.au (Binghay Co) — Mon, 23 Jan 2023 23:33:05 GMT

Originally announced in the 2018–19 Federal Budget, and now set out in draft legislation, are newly introduced accountability measures for ABN holders.

Once in effect, this will mean you will have to:

lodge outstanding income tax returns, and
confirm the accuracy of your entity's details on the Australian Business Registrar annually.

Currently, there are no registration penalties for ABN holders when it comes to lodging tax returns. That is, you can continue to quote an ABN regardless of whether you have lodged outstanding returns.

The regulator will now have the ability to cancel your ABN if you have 2 or more outstanding income tax returns for income years commencing on or after 1 July 2022. Also, the regulator will be able to cancel your ABN if you do not confirm the accuracy of your ABN details in an annual form on or after 1 July 2024.

If your ABN gets cancelled by one of these measures, the registrar must reinstate your ABN once the outstanding items have been resolved.

We are closely monitoring the progression of this draft legislation and once further information is provided by the Treasury, we will inform you of the specifics surrounding the legislation.

If you wish to discuss the contents of the draft legislation further, please do not hesitate to contact us.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Your December quarter activity statement is due soon

admin@binghayco.com.au (Binghay Co) — Sun, 22 Jan 2023 23:26:56 GMT

Your December quarter activity statement is due soon.

Make sure you have checked off the following:

Have you allocated all bank transactions to the correct accounts?
Have you verified that the bank balance listed in your accounting software matches the balance in your bank account?
Do you have tax invoices and receipts for all business-related transactions?
Have you checked the GST tax codes for all transactions?
Have you checked tricky transactions like agency arrangements, insurance or overseas purchases for GST tax code accuracy?
Have you got paperwork for asset purchases or new finance arrangements?
Do you need to include figures for PAYG instalment, fringe benefits tax, or fuel tax credits?
If you have to report PAYG withholding for employees, you also need to check that your payroll categories and tax calculations are correct for the quarter, (or last month for employers who lodge a monthly IAS).

Checking the figures at each of the BAS reporting labels means your statements are more likely to be accurate and less likely to need GST or PAYGW adjustments at the end of the financial year. Plus, you’ll have a more accurate picture of your liabilities throughout the year and be able to plan accordingly.

Need help?

Talk to us today. We can help you prepare your activity statements or review your business accounting systems to make it easy, accurate and efficient.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

5 goal-setting tips for 2023

admin@binghayco.com.au (Binghay Co) — Wed, 18 Jan 2023 07:39:50 GMT

Whether you want to grow your business or take more time for yourself, these goal-setting tips can help you achieve your long-term plans.

Think big! - What do you want from your life – and how can your business help you achieve that? Think about next year and beyond; what does your business look like in five or 10 years? When you know what end point you’re aiming for, it’s easier to set goals that move you in the right direction.
Pick something you can measure - Vague goals aren’t as helpful as those you can measure and monitor. Think about what you already measure in your business and how you’d like to see those metrics change. For example:

A 3% increase in net profit year-on-year
A 2% reduction in expenses
1 new customer per month
Reduce average payment time to under 50 days
4 weeks of holiday during which you don’t go into the office at all

3. Make a plan to achieve each goal - Once you’ve picked a few goals, come up with ways to achieve them. It could just be back-of-the-envelope thinking, or have a brainstorming session with your team or your advisers ( give us a call !). When you have a plan in place, do your best to follow through and make it happen.

4. Keep monitoring your progress - Check in each month to see how you’re tracking with your goals. Set yourself reminders on your calendar or make it part of your invoicing cycle. If you’re not quite on track, you can make tweaks or come up with some fresh ideas to help you reach your targets.

5. Plan a celebration! - Give yourself a good reason to keep striving for your goals. It might be a long lunch, a trip to the movies, a manicure, or a beer advent calendar next December. Something you’ll enjoy that’s not going to blow the budget.

We can help

Not sure what your goals should be or how to monitor them? We can show you where to find the information you need, how to check on it, or keep an eye on it for you.

Our team also has some fantastic ideas for how to reach your goals and build your business – get in touch!

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Fringe Benefit Tax at Christmas Time

admin@binghayco.com.au (Binghay Co) — Sat, 17 Dec 2022 06:12:37 GMT

It is a time of the year when giving is encouraged. As a business owner, you may want to make sure you have all the information available to you, so that you are fully aware of your tax obligations this Christmas.

Christmas parties

The cost of food and drink associated with a Christmas party is exempt from fringe benefits tax (FBT) if they are provided on a working day on your business premises and consumed by current employees. This exemption is only available for employees, not associates.

The provision of a Christmas party held off your business premises may also be exempt from FBT under the minor benefits rule if the cost of the party is less than $300 per employee. The FBT exemption also applies to an associate of your employee, as long as the benefit remains under $300 per employee.

Christmas gifts

Under the minor benefits rule, providing a gift to an employee is also exempt from FBT as long as the value of the gift is less than $300 under the minor benefits rule.

Tax deductibility of a Christmas party

The cost of a Christmas party can only be claimed as a tax deduction if it is subject to FBT. Therefore, if your party is less than $300 per employee, then you cannot claim the cost as a tax deduction.

Inviting clients or customers?

Generally speaking, inviting clients or your customers to a Christmas party is not subject to FBT. However, as the Christmas party is considered to be providing entertainment, the cost of clients attending the party is not income tax deductible.

Here's an Example

You decide to hold a Christmas party for your 60 employees, along with 20 of the employees’ partners and 10 clients. The overall cost of the Christmas party totals $9,000 including gifts.

The cost of the party is not subject to FBT as the cost is considered a minor benefit to your employees and their associates. Also, the cost associated with your clients attending does not attract FBT.
The average cost of your employees and their associates is $100 per person, being under the FBT limit. As no FBT applies, this cost ($8,000) is not tax deductible.
The $1,000 of cost allocated to clients is also not tax deductible as it is considered the provision of entertainment which is specifically denied as a deduction.

Talk to us about your entertainment and gifting plans this Christmas. We can advise on the tax deductability or your obligations.

If you want to learn more about how we can support your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Ideas on how to throw a last-minute Christmas party

admin@binghayco.com.au (Binghay Co) — Fri, 09 Dec 2022 06:12:08 GMT

Maybe it’s been an extremely busy month. Maybe you’ve just run out of time. Whatever the reason, if you need to arrange a last-minute festive party for your business, we’ve got the tips you need.

Unfortunately, you’ll probably find that venues and activities book up early. So, you’ll need to be inventive. Here are a few ideas for fun team activities that will make your party an event to remember!

Throw a breakfast at work- champagne optional!

A festive breakfast is a great way to start one of the last working days of the year. Bring in fruit, croissants (don’t forget a gluten-free option!), and organise a coffee run. It’s a simple and fun way to ring in the holidays. And the best part is... your staff may be very thankful not to have to give up an evening during the busy festive period.

Spend time with a charity

Food banks and other charities are under considerable strain during this time of year, and donating your time can make a real difference. Do some research on events for your team, whether it’s building and painting a playhouse for a kindergarten or making a lunch to feed a child. Check out local charities that make meals for families in need. Wind down afterwards with a drink or two and a feeling of goodwill.

Create a really amazing race

A good old scavenger hunt turns your whole city into your party venue! Teams compete to win a series of challenges while having fun together. It could be photos at a specific landmark, buying a festive hat or busking! Split people up into new groups so they also use this time to get to know one another better. Capture all the fun on social media throughout the day, and make sure you’ve got food and drinks on hand at the last meeting point.

Head to the park

Whether your team are into social sports, or more likely to want to relax on a picnic blanket, you’ll be able to please everyone with an afternoon at the park. Invite kids and dogs to join, and don’t forget to arrange for an ice-cream van to swing by.

Winding down for the end of the year? Take the opportunity to celebrate the years achievements with your team.

If you want to learn more about how we can support your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Business Tips: Setting KPIs and measuring performance

Thu, 08 Dec 2022 09:25:25 GMT

Once you begin trading, you’re faced with a new challenge – successfully managing the course of your brand-new business and making sure it’s a profitable enterprise.

It’s easier to manage your startup’s sales and finances when you have access to the best possible information and data about your performance. Tracking specific metrics and key performance indicators (KPIs) allows you to see how you're performing against your targets – so you can take action to improve performance, sales, growth and profitability.

But which KPIs should you be tracking?

Sales and conversion rates

An obvious metric to track is the number of sales you’re making each month. You’ll have set a target for these sales in your business plan, so it’s important to record each sale and see how the startup is performing over the first six months of the business.

It’s also important to log and track the drivers that lead to these sales. How many sales enquiries are you receiving? How many of these enquiries are being converted into actual sales? How many customers are being engaged by your marketing campaigns, and is this engagement leading to interest in your products and/or services.

The more detail you can track from your sales and marketing activity, the more forensic you can get with which campaigns are actually delivering the goods.

Sales revenue and other revenues

When customers buy your goods, that creates income (or revenue) for the business. Ultimately, no business can succeed unless it’s generating enough revenue to keep the wheels turning in the business. So, tracking your sales revenue is a vital measure of your financial health.Tracking your various revenue streams over time keeps you in control of your finances and helps you make the right decisions. You can track performance against your revenue targets. You can forecast how much working capital you’ll have at a future point in time. And you can see if there’s enough cash in the bank to fund your projects and growth plans.

Cashflow and ongoing cash position

Good cashflow management is all about balancing the process of cash coming INTO the business and cash going OUT if the business. Recording and tracking your cash position is easy to do with the latest cloud accounting software and cashflow apps, so there’s no excuse for not tracking your cash position.

Ideally, you want the business to be in a positive cashflow position (with more cash coming in, than going out). But to achieve this, it’s helpful to see these cash inflows and outflows in real-time. With up-to-date metrics on your cashflow position, you can make informed decisions about spending, payment of bills and where additional cash and funding may be needed.

Debtor days and aged debt

When customers fail to pay your invoice on time, that creates an aged debt – money that you SHOULD have received but which the customer has yet to pay. An aged debtor report shows you which invoices are unpaid, which customers haven’t paid, and the total size of this debt.

Your debtor days number is a metric that shows the average number of days it takes your customers to pay you. Anything above 45 days is bad news, so you want to aim to keep this number between 14 to 30 days, if possible. A large amount of aged debt will leave a hole in your cashflow – and that can quickly start to impact on the day-to-day running of the business.

Gross profit margin

Generating a profit is crucial to the continued success of your startup. Having metrics to measure your profitability is an important part of managing your finances.

One common way to do this is to track your gross profit margin. This metric shows the amount of profit made BEFORE you deduct things like overheads and the cost of goods sold (COGS), shown as a percentage. The formula for calculating your gross profit margin looks like this:

Gross Profit Margin = Gross Revenue minus COGS, divided by Net Revenue, multiplied by 100

Deduct your COGS value from your gross revenue to find your gross profit.
Divide this gross profit by your revenue.
Multiply the resulting number by 100 to get a percentage.
This is your gross profit margin as a percentage of gross profit
A percentage of 50% to 70% is healthy, but aim for a big a margin as possible

By keeping a close eye on these financial metrics and KPIs, you have the best possible insight into the performance of your business– and that’s invaluable as your startup journey unfolds.

If you’re at the early stages of planning out your business idea, please do get in touch. We’ll help you set up a custom KPI dashboard to manage the future path of your business

If you want to learn more about this topic as well as how we can support your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Employees and the Holiday Season – What You Need to Know

Wed, 07 Dec 2022 08:38:15 GMT

The summer holiday period can be confusing to employers and employees alike – public holidays worked or taken as annual leave, business shutdowns, annual leave provisions… there are many rules employers need to understand.

Employees are entitled to annual leave and public holidays under the National Employment Standards minimum entitlements.

Employers can ask employees to work on public holidays within reason. For example, if the business is open every day of the year, and the employment agreement states that public holidays may be required, the employer can reasonably ask an employee to work a public holiday.

An employee can refuse to work on a public holiday if the request is unreasonable or there are reasonable personal grounds for refusing.

Christmas and New Year Public Holidays 2022-23

This year the following public holidays apply to employers in all states:

Sunday 25 December 2022 Christmas Day
Monday 26 December 2022 Boxing Day
Tuesday 27 December 2022 Additional public holiday for Christmas Day
Sunday 1 January 2023 New Year’s Day
Monday 2 January 2023 Additional public holiday for New Year’s Day

Public holidays are paid at ordinary rates for employees who take the day off. Employees who work on a public holiday must either be paid penalty rates according to the relevant award or be given an extra day off in lieu of the public holiday. Some awards have specific provisions or additional benefits for public holidays, so it's important to check.

If an employee has booked annual leave for the Christmas and New Year periods, the public holidays are not counted as annual leave. For example, if a permanent employee is on annual leave from Monday 26 December to Friday 6 January, they will use eight days of annual leave, not ten. Two of the days are paid as public holidays.

Some other key points to remember:

Public holidays are counted as service, so annual and personal leave continues to accrue as usual.
Overtime worked on a public holiday may be paid at a different rate than regular overtime – check the relevant award or agreement.
Check the award or agreement for shutdown provisions. Most awards have guidance for directing employees to take leave during annual shutdowns.
If employees don’t have enough annual leave, employers can agree to pay them in advance for leave not yet accrued, or the employee can take unpaid leave.

The FWO has further advice on rules and entitlements during the end-of-year holiday season.

You might also need to think about cash flow planning for the holiday period, particularly if the business shuts down but still has obligations for payroll and other expenses.

We can advise you about your employer responsibilities and help plan holiday period payments so you can make the most of your summer holiday!

If you want to learn more about this topic as well as Binghay & Co and how we can support your business, contact us to set up a FREE consultation so we can get started.

Weighing up a big investment in your business

admin@binghayco.com.au (Binghay Co) — Tue, 08 Nov 2022 07:31:56 GMT

Are you considering investing in a new way to make your business more productive or streamlined? With a tight labour market, everyone’s time is at a premium – so finding ways to maximise productivity has never been more important.

But it can take considerable funds to pay for a new website, ecommerce platform, software system or automations. Here are a few questions to ask yourself when you’re weighing up the costs and potential benefits of a significant investment.

What are the upfront costs – and the ongoing expenses?

A website, for example, has a large upfront cost for the design, content creation and build. You might think that the costs are then done, but it must be updated and maintained. You can do that in-house, in which case someone needs to be assigned to that work, or you can outsource it.

Always take into account the ongoing costs, because these are a vital consideration when you decide whether to make an important investment.

Which of your current costs will disappear?

Some of the costs you currently incur may vanish with a new system. It might be as simple as no longer paying the cost of an old subscription. Or it might be time saved that is spent manually entering data, processing payments, or dealing with customer issues that arise from an outdated system.

Financial costs are relatively easy to add to the calculations. It’s trickier with time, but try to put a value and quantity on what time might be saved if you can.

How will this change your costs in the long run?

Think about how your business will operate five years from now. Will this new investment allow you to increase your profitability without growing your team? Will you be able to spend more time finding outstanding high-value clients and less time on processes?

Any large investment should make your company run more smoothly, allow you to boost your output, and easily pay for itself.

When will this investment pay for itself?

Once you have all these numbers in hand, you can formulate some idea of when the investment will pay for itself. We can help you estimate a likely timeframe, and some best- and worst-case scenarios. You don’t have to make big choices all on your own – let us help you analyse the costs and benefits to give you more confidence in your decisions.

If you want to learn more about this topic as well as how we can support your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Keeping your business cash liquid – the difference between cashflow and profit

Mon, 10 Oct 2022 04:34:12 GMT

The foundational goal of any business is to make a profit. As a business owner, that’s one of your key financial aims – to make enough sales, at a big enough margin, to generate profit from your enterprise. But how does profit differ from cashflow? And why is cash king?

How do profit and cashflow differ?

To really understand the difference between generating profit and managing cashflow, we need to look at what both these terms mean. You might think that delving into the accounts is a job for your adviser, but being in control of your profit and cashflow is an invaluable business skill.

Let’s take a look at the differences:

What is profit? – Profit is the surplus that’s left from your income once you’ve paid your expenses, supplier bills and tax etc. It's driven by creating a profit margin and generating value from your products and/or services.
What is cashflow? – Cashflow is the ongoing process of ensuring that the business has the available cash (or ‘liquid’ cash) needed to operate. This provides the money needed to trade, to pay suppliers, to cover wages or to buy raw materials etc.

Why is positive cashflow so important?

‘Cash is king!’ may be a cliche these days, but it’s a maxim which underpins any successful business model. Yes, it’s great to make a profit at year-end, but if you don’t look after your cashflow then the business may not survive as long as the end of the year.

What’s needed is good cashflow management to enhance your financial health. And without a careful eye on your cash numbers, things can quickly go awry.

A business can generate high revenues and big profits, but still be cashflow poor. In other words, it can have profits at the end of the period, but have very little liquid cash to fund it's day-to-day operations over the course of the period.

Talk to us about improving your cashflow management

Good cashflow management is all about being in control of your cash inflows (income you’re generating) and your cash outflows (what you’re spending). To achieve ‘positive cashflow’ you need to proactively work to keep your inflows higher than your outflows.

As your adviser, we’ll help you set up detailed cashflow reporting and forecasting, so you can keep the business in that ideal positive cashflow position. And we’ll also look at key steps for keeping your revenues high, margins profitable and meeting your financial targets.

Get in touch to talk through your cashflow management. Contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Business tips: Knowing what your customer wants

Thu, 08 Sep 2022 03:43:51 GMT

The increase in digital business systems has opened up forensic ways of understanding your customer base. That's a huge bonus when you're aiming to build better connections, relationships and experiences with your audience.

Knowing what your customer wants is a fundamental piece of knowledge for any successful business to get to grips with. And when you're running a modern, digital business there's an overwhelming wealth of customer and sales data and analytics at your disposal – making it easier than ever to dig down into the needs and habits of your end user.

Detailed CRM records and customer notes

A CRM system becomes the heart of your customer management, business development and marketing activity, allowing you to log activity, keep notes and record progress throughout the sales pipeline.

The more information you have about your valued customers, the more you can do to meet their needs and deliver the perfect customer experience. And by maximising your use of this customer data, you can tightly focus your marketing campaigns and do more to make every customer feel understood, valued and (most importantly) satisfied.

Drilled-down sales records

Keeping tabs on your sales activity is central to any business model. In an ideal world, you want regular, repeatable sales from a loyal customer base. But sales activity can be hard to predict, especially when you’re setting ambitious sales targets for your team to hit.

Having detailed sales records and data at your fingertips has two key benefits:

You know how sales have fared in the past
You know how sales may pan out in the future

Being able to run forecasts, based on your historic sales data gives you a stable foundation on which to build your future sales targets. It’s a solid projection, based on real business data. But this data also gives you an encyclopaedic overview of what your customers have been buying.

This sales data helps you understand:

Which products/services your customers want to spend their money on
Which specific products/services are failing to convert
Which points in the year will have peaks and troughs in sales
When it’s the right time to invest in more sales and marketing activity

This is all gold dust when it comes to planning out your strategy, assigning your sales and marketing resources and building engagement with your core audiences.

Marketing analytics and customer touch points

Marketing is a vital part of getting your brand message out into the world. Today’s digital marketing and email platforms make it easier than ever to see the results and analytics from your marketing campaign and to answer meaningful questions about the outcomes:

How many customers clicked through from your call-to-action?
How many click-throughs were converted into sales?
How many views did your latest blog post get?
Who opened your latest email campaign?
Which one of your customer segments is most engaged?

With the marketing analytics that digital systems can provide, you know the answers to all these questions. That’s incredibly helpful when working out which campaigns delivered a good return-on-investment (ROI), which customer groups are most engaged and where your marketing is hitting the mark (or not, as the case may be).

Social media interactions and feedback

Social media platforms, like Twitter, Facebook, LinkedIn and TikTok, give your business a cheap and effective way of getting your brand messages out to a wider audience. Social media is a two-way communication channel. It’s a conduit for your customers and followers to message you, ask questions and give you feedback – and in that sense, it’s a vital way of understanding your customers’ needs.

As you scale and grow, an increased focus on social media will be vital. Hiring a social media manager, or working with a social media agency, helps you broaden out your social activity and really engage with your followers. Reply to queries, placate frustrated customers and share your latest news and updates. If you can be present and engaging in the social space, that’s going to help you cement your bond with these valued customers.

Online customer feedback and star ratings

The acid test of your customer experience is simple: are your customers happy? Satisfied and happy customers become amazing advocates for your brand. But, equally, disgruntled and unhappy customers can quickly undo the good work you’ve done in building a brand.

In the online age, bad news spreads incredibly quickly, and customer feedback, reviews and trust scores are a vital part of your brand’s equity. A series of terrible reviews for your cafe on a platform like TripAdviser can cause serious damage. So, it’s important that you engage with these reviews, run customer surveys and listen carefully to any customer feedback.

Ultimately, delighting your customer is your key aim as a business owner. Using your ears and listening to the feedback you get is integral to understanding what your customers want.

Hitting your growth targets, is far easier when you know the needs of your customers and can accurately target your sales, marketing and social activity.

If you want to learn more about this topic as well as how we can support your business, con tact u s to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Understanding Your Profit and Loss Statement

Mon, 08 Aug 2022 02:04:58 GMT

Your profit and loss statement (P&L) helps you understand your business performance and profitability over time. It’s sometimes called an Income statement and its main purpose is to list income and expenditure.

Whereas a balance sheet is a snapshot in time, the P&L shows transactions over a specific period of time. This can be a month, quarter, financial year or any other period, and it can be a stand-alone report or a comparative period report.

Together with the balance sheet, these two reports provide a comprehensive understanding of the financial position and performance of a business.

The profit and loss statement has two main sections: income and expenses.

These may be further subdivided depending on the complexity of the business and reporting requirements.

Income or Revenue

Income primarily includes main business activities such as sale of goods or services. Other income such as interest received, capital gains or income from secondary business activities is also reported.

Expenses

Expenses are usually divided into two sections: direct costs, or cost of goods sold, and expenses. Cost of goods are those that are directly linked to the provision of services or sale of goods. For example, if you buy widgets from a wholesaler and sell them at a marked-up value, the cost of the widgets is a direct cost, not an overhead expense.

Other types of direct costs might be importing and freight costs, contractor costs or certain equipment. Some direct costs are fixed, that is, they are the same from month to month, or they could be a fixed percentage of sales; others vary in value but are still related to the income producing activities.

Overhead expenses are all the other expenses required to run the business, regardless of the level of income: for example, rent, utilities, bank fees, bookkeeping fees, professional development costs, vehicle costs and staff costs. Many of these costs form the basis of working out your break-even point, or how much it costs just to open the doors for business.

There are some expenses which may be reported as a direct cost in one business but an indirect cost in another type of business, for example, merchant fees or contractor costs.

The Bottom Line

Total income minus total expenses results in the net profit (or loss), is often called ‘the bottom line’. Often business owners are just interested in looking at the bottom line, but a true financial picture requires an understanding of several reports and an ability to see the big picture that the reports are illustrating.

The P&L is a vital tool to analyse for trends over time

What does your P&L tell you about relationships and ratios between sales and expenses, seasonal changes and annual trends?
Have all your direct costs been allocated correctly?
Have you recouped all billable expenses from customers?

Financial statements help you understand the big picture for your business. With deeper understanding of your business operations and performance you can make informed decisions about your business finances.

If you want to learn more about this topic as well as how we can support your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Don’t burn out this winter!

admin@binghayco.com.au (Binghay Co) — Sat, 30 Jul 2022 11:54:01 GMT

It’s tough going for business owners this winter. Illness is rampaging through the community – it’s hitting staff, suppliers, clients and schools, creating disruption throughout the economy.

With the labour market tight, businesses are already understaffed. Add high rates of absenteeism, and remaining workers and business owners are under incredible pressure. When you love your job and always want to do the best for your clients, it’s easy to start overworking yourself and run the risk of burnout.

It’s vital that you take care of yourself this winter, so here are three ways to help prevent burnout:

Start saying ‘No’ - Small business owners are experts in saying ‘Yes!’ and then figuring out the details later. It’s how you grow a small business and build your reputation for being able to solve problems for your clients. Unfortunately, if you’re overworked and stressed out, it’s time to start saying ‘No’. Begin by turning down work from difficult clients, or work that’s outside your core business, so you’re focused on where you add the most value.
Identify at least one area you can outsource - You can’t do everything yourself, particularly if you’re understaffed. Look at your processes and try to identify an area that’s not part of your core business which you can outsource. It might be social media posts, or office cleaning, or even just subscribing to a meal kit service to take the stress out of cooking. Usually, the cost of these initiatives will quickly pay for themselves: once you feel less stressed, you’ll be more productive.
Hold onto your interests outside work - Running a business can be all-consuming, but hang onto your friends, sports and hobbies even when it gets busy. Letting your relationships, health, and pastimes dwindle away will undermine your emotional, physical, and mental health.

We can help

Not sure if outsourcing tasks will pay for itself? We can work with you to analyse the costs and benefits of any business investment. Get in touch, we’d love to hear from you.

Business tips: Adding value to your business prior to an exit

admin@binghayco.com.au (Binghay Co) — Wed, 15 Jun 2022 01:34:53 GMT

Generally speaking, an exit strategy will be put in place years before your planned exit date. This gives you time to work on your sale plan and deal with any succession issues. But more importantly, it gives you the time needed to add additional value to the business prior to a sale.

Every business has its own unique sale value, based on the size of the business, the worth of its assets and the perceived value of the company on the open market.

But what can you do to add value to your business and achieve a better sale price?

Make sure you're running a tight ship

When you sell a house, estate agents will advise you to redecorate, clear out the rubbish and add more to your sale price as a result. The same is true of selling a business.

A potential buyer will generally want to purchase a business that’s in good shape. Sometimes a buyer will purchase a badly performing business to either a) whip it back into shape, or b) buy it cheap, sell off the assets and make a profit. However, if profit is what they’re looking for, a well-organised and efficient business is a better prospect.

Adding value starts by doing your housekeeping and making sure the whole business is in a good position to hand over. That means having:

Modern, digital systems to keep your operations efficient, secure and well integrated
Excellent record-keeping, compliance and governance procedures in place
An excellent customer base to provide stable sales and good revenues
A good brand awareness and positive reputation in your sector
Efficient executive, management, operational and administrative teams to run the business in the smoothest and most effective ways.

Resolve any ongoing business issues

Every business will have a few ongoing business issues to contend with. These could include legal worries, court cases or bad debt in the business, and they can all have a negative impact on the company's value. The more you can do to resolve these issues and present a worry free environment for the new owner, the better.

Work with your lawyers, HR advisers and accountants to find resolutions for any long-standing problems in the business. If you can hand the business over without a long list of potential headaches for your buyer, that’s likely to add value to the business. Trust is also important in a sale. Being transparent and open about any previous issues will also create a better relationship between you (the vendor) and your buyer.

Improve your financial health

Most buyers will be looking to purchase your business and turn a healthy profit. To do this, they’ll want to know that the company is financially healthy. This means having books that balance and plenty of potential for them to continue this company as a profitable venture.

So, which areas of your finances should you be looking at? The key here is to be in control of your financial management, and to have a strategy in place that will improve each area of the business over time as you near your sale date.

This will include

Strengthening your balance sheet, so you can present an attractive set of accounts
Improving your profit and loss, by increasing revenues and cutting your expenses
Boosting your cashflow position through careful cashflow management
Reducing your debt liabilities, by resolving late payments and bad debts
Polishing up your credit score, by partnering with a credit improvement specialist
Making sure the business is well funded, by working closely with lenders.

Get your executive team ready to take over

You may well remain the lynchpin in your current business. But a business that’s still 100% reliant on its founder is not an attractive proposition to a buyer. If the business is still reliant on your everyday operational input, and you then walk away, that business can no longer function effectively. To remedy this, you need to step back and get your team ready to take over.

The easiest way to do this, is to think about the key areas where you still have input, and to then systemise these and put them under the remit of a member of your executive team. If you’re still signing off the payroll, pass this to your finance director. If you’re still taking part in all client sales presentations, defer this to your sales director.

You'll need to be able to sell up and step away from the business without there being any operational or leadership issues for the new owner.

Work with your advisers to proactively add value

A good firm of advisers delivers a range of different advisory services. By gradually enhancing every element of the business, you’ll end up with a far more attractive business to sell.

Keep any staff problems, legal issues or accounting challenges to a minimum, so the business is as attractive as possible to potential buyers, and the sale can be completed quickly.

Talk to us about adding value your business

To meet your personal and financial goals for this business sale, you want your company to be an attractive proposition on the open market. This process of added value isn’t instantaneous, but with the right advice and planning, you can move towards a more valuable sale price.

If you’re in the process of planning your exit, do come and talk to us. We’ll help you plan your exit strategy, adding value at each stage of the plan to boost your return from the sale.

If you want to learn more about this topic and how we can help your business, contact us to set up a FREE consultation so we can get started.

Binghay & Co are Accountants & Business Advisors located in Docklands, Melbourne.

Single Touch Payroll Phase 2 Updates

admin@binghayco.com.au (Binghay Co) — Wed, 04 May 2022 01:22:17 GMT

If you’re not already using Single Touch Payroll Phase 2 in your payroll software, you may have more time before you have to start using STP 2. Talk to us today to check your payroll systems and software before upgrading to STP Phase 2.

Employers should now know of the Single Touch Payroll Phase 2 reporting requirements. While some accounting and payroll software already meets the ATO’s reporting requirements, some software providers have deferrals in place to allow customers more time to transition to the new system.

Single Touch Payroll (STP) Phase 2 was initially planned for 1 July 2021 to align with the mandatory reporting for all employers but was then postponed to 1 January 2022 to allow software providers and employers more time to transition.

Some software providers have deferrals in place until December 2022 or March 2023. Check with us or your payroll software provider if you're not sure when you have to start using STP Phase 2.

These changes include detailed income types, lump-sum payments, itemised allowances, child support and the ability to lodge tax file number declarations from within STP reporting. Termination payments also include the reason for ceasing employment.

Talk to us if you'd like to review your payroll software and systems before upgrading to STP Phase 2.

Your payroll software will likely require you to upgrade to the Phase 2 system. If you haven't upgraded yet and you're using software with an approved deferral, they will let you know when upgrading to STP 2 becomes mandatory.

If you want to learn more about this topic as well as Binghay & Co and our service offerings, contact us to set up a FREE consultation so we can get started.

Get 25 per Cent off Your Dining Bill – and Entertainment Experiences – Anywhere in Victoria

admin@binghayco.com.au (Binghay Co) — Thu, 07 Apr 2022 07:50:54 GMT

It’s like Melbourne Money, but for the rest of the state. And it includes rebates on visits to cinemas, exhibitions and zoos, plus tickets to live theatre, music and comedy events. Here’s how to save up to $125.

From Tuesday March 29, Victorians can save big bucks on dining and entertainment experiences across the state, thanks to a new $60 million project.

The $30 million dining component is like Melbourne Money , but for the rest of the state. It means you can get the same 25 per cent rebate – up to $125 off your combined bills – at restaurants, cafes, bars and other eligible hospitality businesses outside of the City of Melbourne municipality – as long as you purchase food.

To be eligible for the rebate, all you need to do is spend at least $40 at a Victorian venue – from Monday to Thursday only – then make a claim online.

For the entertainment component, $30 million has also been set aside. The same rebate and minimum spend applies to visits to cinemas; exhibitions and conferences; museums, galleries and zoos; tickets to live performance such as theatre, music, comedy, literary events and fashion shows; and theme parks, water parks and amusement parks.

Rebates can be claimed for entertainment experiences undertaken anywhere in Melbourne or Victoria, on any day of the week.

The $125 rebate cap is for dining and entertainment combined. The offer will be on a first come, first served basis until funds are exhausted.

It's an easy process and took us only 3 business days to get our rebate after lodging our claim. So get out there and support your local businesses!

Make a claim and find more information online .

Federal Budget Insights 2022-23

admin@binghayco.com.au (Binghay Co) — Wed, 30 Mar 2022 03:36:09 GMT

Summary of tax and superannuation measures

On Tuesday, 29 March 2022, Treasurer Josh Frydenberg handed down the 2022-23 Federal Budget, his 4th Budget.

In an election Budget, the Treasurer announced a range of cost of living measures, including a one-off $420 cost of living tax offset for low and middle income earners, and a $250 payment for pensioners and welfare recipients. The fuel excise will also be reduced by 50% for 6 months, starting from midnight on Budget night.

For small businesses, a Skills and Training Boost will provide a new 20% bonus deduction for eligible external training courses for upskilling employees from Budget night. In addition, businesses will receive a similar 20% bonus deduction for expenditure on digital technologies (eg cloud computing, eInvoicing, cyber security and web design) for investments of up to $100,000 per year.

The Treasurer said a strong economic recovery is well underway, notwithstanding the COVID-19 pandemic and new shocks, such as the recent floods and the Russian invasion of Ukraine. Mr Frydenberg said economic growth forecasts have been revised upwards, driven by stronger-than-expected momentum in the labour market and consumer spending. The unemployment rate has also fallen to 4%, and is expected to reach 3.75% in the September 2022 quarter.

Since the Mid-Year Economic and Fiscal Outlook (MYEFO) in December 2021, the underlying cash balance has improved by $103.6bn over the 5 years to 2025-26. Nevertheless, the Government is expected to record a deficit of $79.8bn for 2021-22 and $78.0bn for 2022-23 (down from $134.2bn in 2020-21). Net debt of $714.9bn for 2022-23 is forecast to rise to $864.7bn in 2025-26.

Tax measures

The major tax-related measures announced in th e Budget included:

· Low- and middle-income tax offset (LMITO) increased by $420 for 2021-22 - a one-off $420 cost of living tax offset for the 2021-22 income year will see the low- and middle-income tax offset (LMITO) increased up to a maximum of $1,500 for 2021-22 only (up from $1,080). Importantly, the Government did not announce an extension of the LMITO beyond 2021-22 when it is legislated to cease.

· No changes to the personal tax rates for 2022-23 - the Stage 3 personal income tax cuts remain unchanged and will commence in 2024-25 as already legislated.

· Small business 20 per cent deduction boost for skills training and digital adoption - businesses with turnover less than $50 million will receive a 20 per cent uplift on deductions for eligible expenditure on external training courses and digital technology. The 20 per cent boost will apply to eligible expenditure incurred from 7:30pm on 29 March 2022 until 30 June 2024 (for skills training) and 30 June 2023 (for digital adoption).

· Patent box income extended – the concessional tax treatment for eligible corporate income associated with new patents in the medical and biotechnology sectors will be extended to corporate taxpayers who commercialise their: (i) eligible patents linked to agricultural and veterinary chemical products; and (ii) patented technologies which have the potential to lower emissions.

· Employee share schemes (ESS) – for company law purposes, the investment thresholds for unlisted companies will be changed so that ESS participants can invest up to $30,000 per participant per year (accruable for unexercised options for up to five years), plus 70 per cent of dividends and cash bonuses. Participants will also be able to invest any amount if it would allow them to immediately take advantage of a planned sale or listing of the company.

· Carbon credit and biodiversity certificate income - the proceeds from the sale of Australian Carbon Credit Units (ACCUs) and biodiversity certificates generated from on-farm activities will be treated as primary production income for the purposes of the Farm Management Deposits (FMD) scheme and the tax averaging provisions from 1 July 2022.

· Digitalising trust income - all trust tax return filers will be given the option to lodge income tax returns electronically, increasing pre-filling and automating ATO assurance processes. The measure is proposed to apply from 1 July 2024 (subject to advice from software providers).

· PAYG instalments options - from 1 January 2024, companies will be allowed to choose to have their PAYG instalments calculated based on current financial performance, extracted from business accounting software (with some tax adjustments).

· Taxable payments data reporting option - from 1 January 2024, businesses will be provided with the option to report Taxable Payments Reporting System data on the same lodgment cycle as their activity statements, via accounting software.

Superannuation measures

The superannuation measures include:

· Super pension drawdown 50 per cent reduction extended to 2022-23 - the temporary 50 per cent reduction in minimum annual payment amounts for superannuation pensions and annuities will be extended by a further year to the 2022-23 income year.

· Super Guarantee rate unchanged - the Budget did not contain any change to the legislated Super Guarantee rate rise from 10 per cent to 10.5 per cent for 2022-23.

Other measures

· Fuel excise temporary reduction - the fuel excise will be reduced by 50 per cent for six months, starting from midnight on Budget night.

· $250 cost of living payment - the Government will make a $250 one-off cost of living payment in April 2022 to eligible pensioners, welfare recipients, veterans and concession card holders.

· Apprentice wage subsidy extension - the Budget confirmed the extension of the Boosting Apprenticeship Commencement (BAC) and Completing Apprenticeship Commencements (CAC) wage subsidies by three months to 30 June 2022.

Outstanding Bills and draft legislation

When Parliament resumed on 29 March, there were several tax and superannuation measures before both Houses. It is possible that some of these Bills will lapse when the Prime Minister calls a Federal election (expected to be on 14 or 21 May 2022).

Where to get Budget documents

The 2022-23 Budget Papers are available from the following website:

Budget 2022-23 - https://budget.gov.au/

Victorian Business Support Package

admin@binghayco.com.au (Binghay Co) — Fri, 30 Jul 2021 07:25:53 GMT

The Victorian and Commonwealth Governments have announced the following extra support measures to assist small and medium businesses to recover from the recent lockdown.

Business Continuity Fund will be established to deliver $5,000 grants to businesses that remain impacted by capacity limits.

Twenty-four eligible sectors are covered by the fund including gyms, cafes, restaurants, catering services and hairdressers. All recipients must have received or been eligible for the previous Business Cost Assistance Program.

Small Business COVID Hardship Fund will be established to support small businesses who have not been eligible under existing business support funds.

Small businesses with a payroll of up to $10 million who have experienced a 70 per cent or greater reduction in revenue will be eligible for grants of up to $5,000.

Licensed Hospitality Venue Fund will provide grants of up to $20,000 to support licensed venues as their operations continue to be impacted by current restrictions.

To receive this funding, venues will need to have received or been eligible for the Licensed Hospitality Venue Fund 2021.

Commercial Tenancy Relief Scheme and Landlord Hardship Fund will provide support to landlords that provide rent relief for their tenants.

The Commercial Tenancies Relief Scheme will be reinstated to provide much needed rent relief to small to medium commercial tenants and their landlords with more details on the roll out to be provided by the Victorian Government soon.

Check your local council website to see what local financial support or other assistance is being offered.

Commonwealth Government COVID 19 Disaster Payment
Individuals may also be eligible for financial support through the Commonwealth Government’s COVID-19 Disaster Payment .

Most microbusinesses not registered for GST are eligible for the COVID-19 Disaster Payment of $600 or $375 per week.

The Victorian Government is establishing a concierge service to help these businesses access this support.

For further information contact Business Victoria on 13 22 15.

If you would like our assistance with these grants, please send us a message here .

10 Crucial Digital Marketing Strategies Every Hospitality Business Needs

Sun, 23 May 2021 14:49:39 GMT

Even before the COVID-19 pandemic hit, the global hospitality industry has been going through a major disruption. Thanks to the rise of “The Sharing Economy,” both long-established hotel and accommodations institutions as well as boutique upstarts have been upended and challenged by Airbnb and similar apps. Now, every single homeowner or, in certain cases, even tenants is a potential challenger.

The same challenge applies to restaurants thanks to the fast spread and use of apps like Uber Eats, Door Dash, and others.

What can your hospitality business do in the face of this technological sea change and shifting consumer habits? Well, you need to get get your (digital) house in order and adopt 10 crucial digital marketing strategies which can enable your business to not only survive but thrive.

This is a subtitle for your new post

Writing a blog post is easy once you get the hang of it. Posts don’t need to be long or complicated. Just write about what you know, and do your best to write well.

Digital Marketing Strategy #1

Build an easy to update online presence

Regardless of whether you have an existing website or not, make sure you build an online presence that is very easy to update.

Remember: most of your existing and potential customers will try to look you up online. Make sure they end up somewhere that is not only presentable but also can easily be modified to fit changing consumer preferences and menu items and/or accommodation listings.

Solution: Build your website on the most robust and versatile content management platform currently available-Wordpress. Not does Wordpress make changing your restaurant’s online presence quick and easy, there is a huge standing army of Wordpress theme specialists you can easily hire at affordable rates from places like Fiverr.

Digital Marketing Strategy #2

Put up a brand-centered blog

Not only will a blog help your existing and potential customer base learn the latest developments about your business, your content can also pull in highly targeted traffic. More on this point below.

Your blog entries help your brand stand out from your competition. You get to tell the world, through actual customer stories or case studies, what makes your establishment so special-on a person to person basis.

Make sure your blog’s theme fits your business’ existing colour palette so there’s no ‘disconnect’ between customer’s experience with your premises/services and your online presence.

Digital Marketing Strategy #3

Put up a brand-centered blog

Not only will a blog help your existing and potential customer base learn the latest developments about your business, your content can also pull in highly targeted traffic. More on this point below.

Make sure your blog’s theme fits your business’ existing colour palette so there’s no ‘disconnect’ between customer’s experience with your premises/services and your online presence.

Digital Marketing Strategy #4

Use your official website to turn your existing customers into a promotions army

No matter its size, if you already have a customer base, you can use your website to ‘deputise’ your customers into promoters.

How?

In all your printed and published promotional materials tell your customers they can get discounts or premiums if they visit your site to get a promo code.

Once they are on your site to get the code, encourage them to share the promo message on their social media accounts. Make it easy for them by installing ‘one click’ links so they can share your promo on their Facebook wall, Twitter feed, Pinterest and other platforms.

Digital Marketing Strategy #5

Always collect opt-in emails

The moment you put up your website, you should start asking visitors to join your newsletter.

Since most people who find your site online will visit only once, you have to have a powerful and effective way to keep in touch.

This is where your email sign up page comes in. To get people excited, you might have to offer discount codes or, if you offer accommodations, content like travel guides or ‘local restaurant secret guides.’

Send updates to remind your audience base of your offerings as well as let them know about the special events and promotions you’re running.

Digital Marketing Strategy #6

Set up your brand-consistent presence on all major social media platforms

Set up a presence for your business on all the major social media platforms: Facebook (page), Twitter, Instagram, Pinterest, and Youtube.

Make sure your accounts’ designs fit your website’s existing colour palette. Doing so will prevent a ‘clash’ between your ‘official website’ and your social media accounts.

Digital Marketing Strategy #7

Post social platform-specific content and cross promote your accounts

Don’t just repost your blog entries to your social media accounts.

Create platform-specific original messages so your followers on each platform will be ‘rewarded’ for finding and following you. For example: on pinterest, create specialty graphics (paired with text) that can’t be found elsewhere.

Make sure to make full use of each platform’s specific discovery features like hashtags so your brand can get new fans from each platform.

Digital Marketing Strategy #8

Make video a core part of your messaging

If pictures are worth a thousand words, can you imagine the messaging firepower of video? Use video’s immediacy to your advantage.

Create tour videos for your hospitality business and post it to your website. Make edited or commentary versions of that video and post on Youtube and Vimeo.

You can even try editing the video further and adding effects and posting it on Tiktok

Digital Marketing Strategy #9

Repurpose your content to save costs while expanding your media reach

When you post to your blog, try to convert it into different formats.

Post the different forms to social media sites that specialize in that format.

For example, you can turn your blog post into an infographic you can post on Pinterest. You can also convert your blog post into a slide show which you can promote via Slideshare.

You might even want to strip your post into a series of short questions. You can use these to create several tweets on Twitter.

By constantly repurposing content, your site can pull traffic from many different social media sites and also beef up your brand on those platforms.

Digital Marketing Strategy #10

Use hard data to optimise, optimise, optimise

Study your website’s traffic log. Figure out where the bulk of your traffic is coming from and be more active there.

Also, discover which blog posts pull the most traffic from Google. Create more of that type of content.

As far as your non-productive social accounts go, mix things up by producing different platform-specific content and see if these improve your traffic flow.

Ultimately, your optimisation strategy should boil down to: scale up what you’re doing right and try to improve on what doesn’t work until it’s time to cut them loose.

Quick shortcut

If the ten strategies above seem like more than a handful for you, make things easier on yourself by hiring a virtual assistant. The right VA can help you create, distribute, and monitor brand building content as your website turns traffic into actual bookings or sales.

The Final Word on Local Hospitality Industry Digital Marketing Optimisation

The COVID-19 Pandemic has struck a devastating blow to the hospitality industry. Turn this turbulent time into a competitive advantage by optimising your online presence. Use the targeted local digital marketing strategies above to retain your customers’ loyalty and build a solid brand that’s capable of attracting new audiences.

Small Business Adaptation Program

Mon, 16 Sep 2019 15:02:07 GMT

What is it?

Businesses will be able to access a $1,200 rebate for selected digital products, from suppliers that have partnered with the state government.

Registered businesses must purchase or subscribe to a digital product available under this program before applying for the rebate. Proof of purchase will be required.

Businesses will need to pay the ongoing costs of access to their digital product after the first 12 months covered by the rebate.

Vic government's $1,200 grants to help SMEs go digital.

WHO’S ELIGIBILE

The Small Business Digital Adaptation Program is for small businesses, sole trader, and micro businesses. To be eligible for the program an applicant must:

o perate a business located in Victoria
hold an Australian Business Number (ABN)
have held that ABN on 13 September 2019
be registered for Goods and Services Tax (GST) on 13 September 2020.

Not-for-profit entities that are not registered for GST and are registered with the Australian Charities and Not-for-Profit Commission are eligible to apply.

Applicants must meet the eligibility criteria and agree to the conditions outlined in the program guidelines .

Applicants also need to attest that they are currently operating and intend to adapt their business to a digital operating environment.

DIGITAL PRODUCT SUPPLIERS

The Victorian Government is currently partnering with six digital product suppliers for this program. These include:

Mr Yum — food and beverage
MYOB — business management
Shopify — end-to-end retail
Square — end-to-end retail
Squarespace — website creation
Xero — business management
Australian Good Food Guide — food and beverage
Ecwid Inc. — end-to-end retail
Intuit Australia (QuickBooks) — accounting
Lawpath — legal services
Reckon Limited — accounting
ServiceM8 — trades job management
Trade Trak — trades job management
Victorian Automobile Chamber of Commerce (VACC) — automotive services

HOW DOES IT WORK?

To progress through the program, businesses need to follow three steps:

Complete the online registration form to confirm eligibility and participate in product trials and workshops.
Sign up for and purchase their preferred digital product through one of the partner product suppliers available under this program.
Apply for the purchase rebate of $1,200 to cover 12 months’ access to the product of choice.

The program will be open from 15 November 2020 to 31 March 2021.

To participate in the program, businesses must register before the trial period closes on 28 February 2021.

Applications for purchase rebates to cover 12 months’ product access will be open from 1 December 2020 to 11.59pm on 31 March 2021, or until funds are exhausted.

Contact Ces Binghay on 0403 301 460 or email admin@binghayco.com.au to find out how we can assist your business

Tax Planning 2021

Mon, 16 Sep 2019 14:56:57 GMT

General Year End Tax Planning Strategies

Business Income and Expenses

Subject to cash flow requirements, consider deferring income until after 30 June, especially if you expect lower income for 2021/22 compared to 2020/21.

Most businesse s are taxed on income when it is invoiced. Some small businesses may only be taxed when income is received. Income from construction contracts is generally taxed when progress payments are invoiced or received.

Ensure that you have complied with the requirements to claim deductions in 2020/21:

Bad debts must be written off in your accounts before 30 June.
Employer or self-employed superannuation contributions must be paid to, and received by, the super fund before 30 June and must be within the contributions cap ($25,000 for all individuals regardless of age).
Depreciation can be claimed for assets first used, or installed ready for use, before 30 June.
Small businesses (turnover less than $10m), can claim expenses prepaid up to 12 months in advance – for larger businesses, this is generally limited to expenses below $1,000.
Wages paid to your spouse or family members must be reasonable for the work performed.

“The Temporary Full Expensing of Assets allows immediate deductions of assets purchased after 6 October 20 and before 30 June 22 for eligible businesses with turnover up to $5 billion.”

Small businesses planning major purchases or replacement of capital equipment should contact us for advice. Careful timing of those transactions can result in substantial tax savings.

Scrap any obsolete item in the asset register before 30 June. Consider delaying the sale of assets that will realise a profit on sale and bring forward any sales that will result in a loss.

Review valuations of trading stock in the lead up to 30 June. The best practice is generally to value stock at the lower of cost or market selling value.

These best practices should be revised if you expect a tax loss for 2020/21 or substantially higher income in 2021/22 compared to 2020/21.

Personal Income, Deductions and Tax Offsets

Subject to cash flow requirements, set term deposits to mature after 1 July, rather than before 30 June.

Consider realising capital losses if you have already realised capital gains on other assets during 2020/21. Conversely, consider realising capital gains if you have unrecouped capital losses, or you expect substantially higher income in 2021/22 compared to 2020/21.

If you expect lower income in 2021/22 due to retirement or any other reason, consider deferring income until after 1 July, when you will be in a lower tax bracket. If you are a primary producer and you expect a permanent reduction in income, consider withdrawing from the income averaging system.

Arrange for deductible donations to be grouped in the higher income year, if you expect a substantially higher or lower income in 2021/22 compared to 2020/21. Make all donations in the name of the higher income earner.

Other Tax Planning Considerations

Contact us for advice if you have moved to or from Australia for an extended period. You may need to review your residency status for tax purposes. There are important tax consequences if you change tax residency.

Trustees of trusts should ensure that all necessary documentation is completed before 30 June, especially where you intend to stream capital gains or franked distributions to specific beneficiaries or have beneficiaries who aren’t the default beneficiaries.

Family discretionary trusts may need to make a family trust election if the trust has unrecouped losses or has beneficiaries whose total franking credits for the year may exceed $5,000.

Be sceptical of year-end tax shelter schemes. You should not enter a scheme without advice regarding both its tax consequences and commercial viability.

Single Touch Payroll

The Single Touch Payroll reporting framework is expanding from 1 July 2021 to include closely held payees. A closely held payee is one who is directly related to the entity from which they receive payments, for example:

Family members of a family business;
Directors or shareholders of a company;
Beneficiaries of a trust.

I ncome Tax Changes – Small Businesses

Tax Rate

For the 2020/21 year, the reduced corporate tax rate has been reduced to 26%, down from 27.5%, eligibility for the reduced corporate tax rate remains unchanged and applies to base rate entity companies with an aggregated turnover of less than $50m.

The lower company tax rate for base rate entities will reduce to 26% in 2020–21 and to 25% for the 2021–22 income year.

Small Business Income Tax Offset

The small business income tax offset has been increased to 13%, up from 8%. The tax offset is a 13% discount of the income tax payable on the business income received from a small business entity (other than a company) with an aggregated turnover of less than $5m, up to a maximum of $1,000 a year.

Expanded access to small business concessions

From 1 July 2020, businesses that are not small businesses because their turnover is $10 million or more but less than $50 million can also access an immediate deduction for certain start-up expenses and for prepaid expenditure.

From 1 July 2021, businesses that are not small businesses because their turnover is $10 million or more but less than $50 million can also access these small business concessions:

simplified trading stock rules; and
PAYG instalments concession; and
a two-year amendment period; and
excise concession.

Temporary Full Expensing of Assets

From 7.30 pm AEDT on 6 October 2020 until 30 June 2022 the temporary full expensing allows:

Eligible business entities with an aggregated turnover less than $5 billion or corporate tax entities that satisfy the alternative test can immediately expense the cost of eligible new depreciating assets.
Eligible businesses with an aggregated turnover under $50 million can immediately expense the business portion of the cost of eligible second-hand assets for
Businesses with an aggregated turnover under $10 million can immediately expense the balance of a small business pool at the end of each income year in the period.

Accelerated Depreciation Turnover less than $500m

An immediate deduction is available for entities with an aggregated turnover of less than $500m for assets first used or installed ready for use between 12 March 2020 until 30 June 2021, and purchased by 31 December 2020, cost less than $150,000 up from $30,000

The balance of the general small business pool is also immediately deducted if the balance is less than $150,000 on 30 June.

The threshold reverts to $1,000 from 1 July 2021.

Income Tax Changes – Individuals

Tax Rate

The key income tax bracket changes for the 2020/21 year, as a result of the federal budget, are:

the 19% rate ceiling lifted from $37,000 to $45,000; and
the 32.5% tax bracket ceiling lifted from $90,000 to $120,000.

Low Income Tax Offset

Australian tax resident individuals whose income does not exceed $66,667 are entitled to the low income tax offset. The maximum low income tax offset is $700 for the 2020–21 and later income years. This has been increased from $445 as a result of the 2020–21 federal budget.

Low and Middle Income Tax Offset

Australian resident individuals whose income does not exceed $126,00 are entitled to the low and middle income tax offset. The low and middle income tax offset amount is between $255 and $1,080.

Limiting Deductions for Vacant Land

New legislation limiting deductions for the costs incurred in holding vacant land applies to costs incurred on or after 1 July 2019, even if the land was held before that date.

Amounts you do and do not need to include in your tax return

There have been a range of new assistance and support payments made available to individuals in response to the natural disasters and other circumstances that have impacted us during the 2019-20 & 2020-21 financial year. There are specific requirements around reporting Disaster Recovery Payments (DRP), payments in relation to 2019-20 bushfires and some COVID-19 grants, please contact us for advice regarding these payments.

General speaking, emergency assistance in the form of gifts from family and friends is not taxable.

Superannuation Changes

Personal Superannuation Contributions

Individuals with a total superannuation balance of less than $500,000 will be able to make catch-up superannuation contributions using their unused concessional contributions cap. The unused concessional contributions cap can be accessed on a rolling basis for five years.

Salary Sacrifice

Legislation has been enacted to prevent employers from using employee salary sacrificed amounts to reduce their minimum superannuation guarantee.

Super Guarantee Non-Compliance

Applications for the super guarantee (SG) amnesty closed on 7 September 2020. If you have any unpaid or late paid super to disclose after this date, you will need to lodge a Superannuation guarantee charge statement and pay the super guarantee charge (SGC).

Reducing Superannuation Minimum Drawdown Rates

The minimum drawdown requirements have been reduced by 50% for 2019–20 and 2020–21 income years, to support retirees with account-based pensions and similar products from having to sell investment assets in their self-managed super funds (SMSF) to fund minimum drawdown requirements.

Capital Gains Tax

Exempting Granny Flat Arrangements

The government has announced they will provide a targeted capital gains tax (CGT) exemption for granny flat arrangements where there is a formal written agreement.

The exemption will apply to arrangements with older Australians or those with a disability.

Small Business CGT Concessions

Be aware of the additional basic condition for the small business CGT concessions if the CGT asset is a share in a company or interest in a trust.

Fringe Benefits Tax

FBT Rate

The FBT rate for the year ending 31 March 2020 is 47%.

Please contact us to discuss any of these items that may impact your tax position for the 2020/21 year.

Binghay & Co

(03) 9770 0066

admin@binghayco.com.au

Why is tax planning important?

Mon, 16 Sep 2019 14:54:56 GMT

Why is Tax Planning Important For Your Business?

If you’re a business owner of any kind, then taxes are a regular part of working on your business. For some people, tax season can be extremely burdensome and even expensive. This is where tax planning would come in.

Tax planning is an approach that businesses can use in order to arrange their financial affairs in a way that minimises the amount they will pay for taxes. Tax planning is encouraged to be an ongoing process as opposed to some thing only done once a year. Tax planning is a proactive approach that can help you to sift out any extra tax payments that you might make and helps you to put it back into your pocket. The best part about tax planning is that it is completely legal.

At Binghay & Co, we offer a wide range of services and tax planning is one of them. Our team of experts are here and ready to serve you. Our aim is to get you to stop paying so much in taxes so that you can have more spending power.

This article will give you some tips on how to go about tax planning in an effective manner.

Tip 1 – Begin your tax planning before the end of the financial year

Tax planning allows you to forecast your tax expenses beforehand. It can give a rough estimate or prediction of how much you will save as well as how much you will pay. By doing this, you will be able to plan ahead and know exactly what you can and can’t do both in and out of tax season. If this is done right, you will definitely be able to grow your business with ease.

Tip 2 – Be sure to have a proactive tax accountant as part of your team

As the word proactive suggests, your tax accountant should be ahead of the game. A proactive tax accountant will work efficiently and effectively to help you optimise all your tax benefits. They should always be at work, constantly keeping you abreast of what is taking place. Your proactive tax accountant should always be coming up with ways to help you reap the best benefits from your tax planning.

Tip 3 –Tax planning can be used to forecast future growth

If and when you try tax planning and you see that it actually is working for you, you may want to strategise for the future by way of growth strategies. By forecasting future growth tax strategies, you are elevating your comprehension of where your business will be positioned in the future as well as how you can benefit from it.

To conclude

These were just a few tips on tax planning. If you want to learn more about this topic as well as Binghay & Co and our service offerings, contact us to set up a FREE consultation so we can get started.