Posts Categorized: Tips of the week
Cash flow – getting paid quicker
If you want to get paid quicker by your customers make it easy for them. One way to do so is to provide credit card facilities. Yes, you may be charged merchant fees but that is usually cheaper than the costs incurred in carrying your debtors.
Call us if you would like help with this.
What GST to charge on food and drinks?
We often get asked by our food and hospitality clients what GST to charge on food and drinks.
Sounds easy but its frequently not.
Thankfully the ATO have created a search tool which you can find at:-
ATO GTS food and drink search tool
We help a number of clients within food and hospitality and would welcome the opportunity to uncover the ways in which we can help you. We can also show you our real time reporting food and hospitality dashboard (which is full on financial and non-financial KPI’s).
Exempt fringes benefits – mobiles & other electronic devices
A small business can provide an employee with a portable electronic device every year and do so free of Fringe Benefits Tax. They qualify as exempt fringes benefits.
That could be a mobile, lap-top or tablet.
The limit is one per year but it must be used for work purposes.
It probably doesn’t mean as much to the owner of a small business as they are going to get a deduction under the $20,000 asset write-off concession (but which is due to expire come 30th June 2019). But if you are an employee, it is a cost effective way of buying such items.
Want to know a few more tips – then call us.
Or better yet, meet with us as our initial meeting with business clients is free of cost or obligation.
Cash flow – state actual due date on invoice
Instead of stating terms such as 14 days on an invoice, we suggest stating the actual due date – such as Monday Nov 5.
We have found that other clients that have moved away from number of days to the actual due date have experienced earlier receipts from customers.
How to improve your cash flow
Xero’s latest Business Insights reports that as of August, only 53.5% of businesses were cash flow positive.
That means that almost half of Australian businesses have more money going out the door than in. That is a lot of stress, sleepless nights and extra interest to fund.
Together with our years of experience, our businesses analysis dashboards can reveal where you’re at and what will be the impact of making changes to the business. More to the point, we can show you on a rolling basis what your cash flow will be like in the months ahead.
Sleep easier by giving us a call to discuss your situation and opportunities.
SMSF – minimum balances
ASIC is considering mandating a minimum balance for a self managed super fund (SMSF) to be opened.
Certainly there is good reason for this given reports as to how many SMSFs have unviable balances.
What is most important though is that one receives financial planning advice as to the appropriateness of opening a SMSF.
Computer safety – insurance
Incidences of cyber crime are sharply on the rise.
What would happen to your business if you were subject to a hack or ransom?
Did you know you can take out cyber insurance?
Check with your insurance broker as it is now a normal add on to core business insurances.
Customers – not all your customers are profitable
Not all your customers are profitable. You know who the ones are that give you the wrong specs, are difficult to deal with, rude to your team and probably add further insult by paying you late. There is a point of view that a business should cease acting for its lowest 5% of its customers.
Who are your worst 5% of your customers?
What extra profit would you make by not servicing such customers?
How would you and your team feel if they you know worked with them?
Please contact us if you would like help in devising a customer ranking tool.
Employment – WorkCover injury poster
It is compulsory in Victoria to have If you are injured at work poster displayed in your work place.
Please call us on 9899 7511 if you would like on of these posters.
Cash flow – include due date on your invoices
You will find your customers & clients pay you quicker if you state the actual due date (like 15th October 2018) rather than 15 days.