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Single Touch Payroll To Include All Businesses In 2019

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On 1 July 2018, the Australian Tax Office (ATO) rolled out Single Touch Payroll (STP). This changed the way employers with 20 or more employees reported their employees’ tax and super information. Generally through payroll or accounting software that offer STP reporting (or through a third-party service provider), employers are expected to report information on withholding amounts, superannuation liability information or ordinary times earnings (OTE) and salary, wages, allowances and deductions.

The STP currently affects businesses with 20 or more employees, but just last month, the Senate passed a Bill for the STP to include all Australian businesses (including businesses with 19 employees or less), affecting at least an additional 700,000 businesses. Although the amendments to the STP are currently being reviewed by the House of Representatives, the change is expected to be implemented on 1 July 2019.

Businesses with 20 or more employees

If you do not have STP reporting already, it’s not too late to get started. Alternatively, you can apply for a deferral. If you are unsure if your software has STP reporting, the ATO recommends talking to your software provider or tax professional.

Businesses with 19 employees or less

The effects on these businesses vary.

For now, businesses that already have digital payroll software are encouraged to talk to their software service provider to update their software if they want to start STP reporting. The ATO says businesses without such software will not be forced to purchase it, and different STP reporting options will be available by 1 July 2019 including:

  • Exemptions if you have unreliable or no internet connection.
  • Micro employers can report quarterly, rather than every time you run your payroll.
  • Low-cost STP reporting options will include simple payroll software and mobile phone apps at or below $10 a month for micro employers.

Adjusting to digital payroll software is a lengthy process, so take the time now to research different cloud-accounting software. However, also consider that the ATO is still finalising low-cost cloud-accounting solutions for micro employees.

Improving Your Niche Marketing Strategy

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Improve your niche marketing strategy to stay ahead of the game.

A niche marketing strategy is one that targets a specific subset of a market and is not a strategy that is ideal for every business. However, if you have determined that a niche marketing strategy is right for your business, here are some things for you to consider to distinguish yourself from the rest.

Knowing and serving your customer

In a niche market, it is not only enough to just know your customers’ demographics but also their beliefs, behaviours and desires. In doing so, you can better cater to their needs in your products or services and add more value to what you are selling. Customer service is especially essential for online businesses as there are no physical spaces to produce an in-store experience. Serving your customer digitally can involve the customisation of a product or service, promptly responding to queries, or packaging the product in a way that aligns with your brand.

Storytelling

An emotional connection with a product or service can influence a customer’s purchasing decision – storytelling is one of the most powerful methods to draw an audience in. Changing the ‘About Us’ section to ‘Our Story’ on a niche family business website may be effective, but it’s just as important for the story to reflect the brand. Some business stories are told through their employees’ or customers’ testimonials and successes. Niche retail businesses may tell the story of their product’s symbolism, unique features, designer, artist, or maker.

Be selective with your advertising platforms

Using social media is one way to gain visibility and to have a digital presence, but social media channels are often saturated with competitors and other distractions. Depending on your product or service, some customers may prefer to visit industry-related websites or use a search engine directly, rather than clicking on an advertisement on Facebook. Other customers would prefer to trust their friends and to gain knowledge through word of mouth. These businesses may gift an item to a circle they want visibility in. Ensure your marketing channels are cost-effective for your business.

Cash Flow Management Tips For Small Business

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Small businesses with cash flow problems put themselves at risk of failing or suffering financial hardship.

Cash flow provides a business with stability so they are able to pay employees, avoid loan defaults and pay the overheads necessary to keep their business up and running. Follow these tips to boost your cash flow so you can secure your business’ future.

Perform a business health check

Preparing financial statements will give you an objective insight into the health of your business. Identifying if you have a cash flow problem is the first step to coming up with solutions. Looking into the following reports will allow you to see if your cash flow is up to scratch.

  • A balance sheet will tell you what your business is worth on any given day. The value of your business is calculated by subtracting your liabilities from your assets.
  • Profit loss statements reveal if your income is meeting your expense requirements. If your profit is dipping below your expenses it is time for a change.
  • Cash flow reports reveal the money that is going in and out of your business over a set period and identify peak and off-peak periods

Use a business budget

After analysing your cash flow situation, determine if your cash flow is cyclical? Creating a yearly budget is not only imperative to receive financing in future, but will also help you identify the best months in which to save to cover the quieter months. Where applicable, business owners can consider flexible rostering, whereby employing casuals and using a flexible roster can help you cut back on hours when you need to improve your cash flow in quiet periods.

When you have identified your quieter periods of the year, try to find additional revenue streams for when cash is low. Is there a product or service that could be introduced? Work with your team for new ideas to cover low cash months.

Get on top of your accounts receivable

Allowing late repayments jeopardises your cash flow and can put you in a tight financial spot. Avoid being out of pocket by implementing some of these credit policies:

  • Collect debts on time
  • Offer an early bird discount to incentivise early repayments
  • Set credit limits and payment terms
  • Make credit applications and carry out credit checks on all new customers
  • Penalise late payments with interest
  • Consider cutting down on inventory
  • Request upfront payment or a non-refundable deposit where viable, especially when dealing with large orders

Another Successful CAANZ Achiever Program for Harris Black

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As we did in early 2018, in January 2019 Harris Black again participated in the Chartered Accountants Australia and New Zealand (CAANZ) Achiever Program and offered a couple of accounting graduates the opportunity for a 3 week ‘paid industry experience’ at our firm. The program is designed to give employers such as Harris Black access to some of the most exceptional graduates and in turn to give accounting graduates a real taste of working as a team member in their chosen industry.

The graduates joining Harris Black for the CAANZ Achiever Program were each selected from hundreds of final year tertiary accounting students who applied to be part of the program and were required to participate in quite a rigorous selection process before ending up with placement at Harris Black.  The selection regime included an initial online application followed by some serious interactive cognitive testing, a video submission, phone conversations and a personal assessment before finally attending a one on one interview with HB Director, Renee Bettenay.

Prior to last years’ CAANZ Achiever Program, all Harris Black Directors and staff collaborated on an induction and orientation process for use with our visiting CAANZ Achievers which covered all aspects of working as a Harris Black team accountant. It was quite a successful program previously and after some review and update, it was again put into action for our 2019 participants. With an exceptional team effort by all HB staff members, our CAANZ Achievers were able to actively participate in a variety of accounting work under supervision and had opportunity to apply and develop their learning further. Everyone in the HB team participated and had a part to play, something which our visiting grads found incredibly impressive and well exceeded their expectations with regards the attention, support and training they received.

Ultimately, the program was a resounding success for both Harris Black and for participating graduate, Matthew Mok. During a ‘debriefing session’ with Renee towards the end of his stay, Matthew expressed his sincere gratitude and admiration of the Harris Black team culture and their commitment to clients.  Harris Black on the other hand were so impressed with Matthew’s ability and enthusiasm over his time with our firm that we offered him a permanent position as a graduate accountant… which he readily accepted!

Welcome to the firm Matthew. All are excited to have you on board!

ATO Information-Sharing: Super Assets In Family Law Proceedings

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Superannuation is often the most significant asset in a separated couple’s property pool, particularly for low-income households with few assets. Parties to family law proceedings are already legally required to disclose all of their assets to the court, including superannuation, but in practice parties may forget, or deliberately withhold, information about their super assets.

The Government has announced an electronic information-sharing mechanism to be established between the ATO and the Family Law Courts to allow superannuation assets held by relevant parties during family law proceedings to be identified swiftly and more accurately from 2020.  This measure was included as part of a broader financial support package for women announced on in November.

First Home Super Saver Scheme And Downsizer Super Contributions: ATO Guidance

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In November 2018, the ATO issued a Super Guidance Note to provide people with general information about how the First Home Super Saver (FHSS) scheme works.  The guidance note explains who is eligible to use the scheme, the kind of contributions that can be made and then released from super for buying a first home, how to apply to the ATO for a FHSS determination, and the requirement to purchase a house.

The ATO also issued guidance on the recently enacted downsizer superannuation contribution measures, which allow people aged over 65 to contribute the proceeds from selling certain property into their super.

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