Every business owner wants to grow a profitable business that continues to grow and remain profitable in the long term. Rapid growth in both revenue and profits are seen by many to be the keys to achieving this.
There is one consequence of rapid profit growth that can destroy your profitable business. That consequence is taxation, or more specifically double taxation.
The Australian Taxation Office has implemented a mandatory start date of 1 January 2022 for employers to commence additional reporting under Single Touch Payroll (STP) Phase 2. However, recent announcements by the ATO have stated that employers will not be penalised as long as they start reporting under Phase 2 before 1 March 2022.
Is a budget the same as a forecast? The two terms are frequently used interchangeably. Which is better for my business? Budgets show how money will come and go from your business over a period of time. Forecasting goes hand-in-hand with budgeting to help you predict the financial outlook of your business.
How do you identify what your successful business should look like? What goals and targets should you set for your business this year? The first question you should be asking is ‘why?’ Asking ‘why?’ has become a key process for business owners.
A director ID is a unique identifier that directors need to apply for, like a tax file number. If you are a director of multiple companies, you are only required to have one director ID that will be used across all companies. You will keep your director ID forever even if you change companies, resign altogether from your director role(s), change your name, or move overseas.
Right now, we are becoming more aware of the many opportunities available to us. How we respond depends on our mindset and how we’re going to approach them. If we’re going to capitalise on them, we need to have the right mindset and we need to equip ourselves with the right tools and resources to give ourselves the best chance of success when we do grab hold of these opportunities and run with them.
One of the best pieces of advice I received in my early years as an accountant and before starting my own business, was to read regularly. In business, it can be said that no problem or challenge is truly original. Any problem you face as a business owner has likely been experienced by someone else.
The importance of an inventory management system often only becomes apparent to a business when it starts going through a number of ‘unexplained’ problems. In reality, they’re not unexplained. The problems start because the business owner does not have an efficient system for tracking inventory and materials on hand.
You’ve finally got some time to sit back, put your feet up and think about nothing…But it’s a busy, high tech world. So your quiet moment quickly moves to active contemplation of your inbox, skips ahead to worry about next week’s meeting, then flips into full-out panic mode as you look at the year ahead.
“Sorry! We can’t help you! Joe didn’t turn up for work today and we don’t know how to do his job.” Imagine what your customer would be thinking if this was your response! Unfortunately, it’s a far too common story for small businesses everywhere. But you can make sure this won’t happen.
Often sales advice focuses on the mechanism of how to sell, or exhorts you to sell more, grow bigger, and always be selling. But growing sales without growing profit at the same time is a waste of everyone’s time and energy. Follow these 4 steps…
A positive tax return? It may be no cause for celebration. Find out why a positive tax return could be negative for your business. If you are stuck in the day-to-day slog of running your business, you could be missing key information about the health of your business.
Without a purposeful direction for your business, you become controlled by those daily demands, and your response to them often lacks power or purpose. It can also get very stressful as you’re constantly ‘putting out fires’. Find a better way to manage change – before it manages you!
Why is it that only 39 percent of businesses make a profit over their lifetime? It’s such a low figure not because most business owners don’t work hard. It’s down to of a lack of focus. Without focus, there is no defined purpose. And without defined purpose there is no strategic plan.
A tax break is NOT the answer. It won’t fix the underlying business issues that are threatening to derail your business. All companies face problems from time to time – the successful ones don’t try to apply a little pain relief to more serious chronic problems; they get to the underlying issues.
Whether employees are going to help grow or cripple your business starts with your hiring policy and extends to their onboarding, training and development. As a business owner, you are ultimately responsible for the success – or otherwise – of the employee hiring and onboarding system you set up.
Just because you receive a positive tax return doesn’t mean that your business is tracking well. In fact, your tax situation is only one small but important aspect of your business that a good accountant will help you assess.
Every business owner would like to make more profit, but many are held back by focusing on the wrong things. The secret to increasing your profit is: don’t focus on profit. Focus on the factors that drive profit. With that in mind, we take a look at the four best ways to grow a business profitably…
Like any other kind of new year resolution, the majority of resolutions for a new business year will not be successful.
For many people, a new year is the chance to start over, to do new things, to improve. But initial excitement and momentum very quickly give way to previous bad habits…
Lead and lag indicators are both vital measures of how your business is doing. But by looking after the lead indicators you’ll be keeping your eye on the ball when it really matters, rather than looking at the scoreboard of what has already happened.
When selecting a business structure for a small business, there is a cheap way and an expensive way. The cheap way is to do it right first time – by getting advice from an experienced professional.
There is absolutely no point being more efficient and getting to your destination quicker if you are going the wrong way. This applies equally when following small business advice as it does in sporting events.
Thomas Edison once said that “Genius is one percent inspiration and 99 percent perspiration”. Unfortunately, going from that inspirational idea to the finished product takes a lot more than hard work. And R&D doesn’t come cheap. Fortunately the Federal Government helps business in two ways: Grants and Tax Incentives.
Rapid and outstanding growth can be intoxicating for business owners. A start-up business experiencing rocketing sales can cause envious glances from others, who may wonder what they are doing wrong. Well, it’s important not to get swept along by it. Sustainable business growth is more important than simply rapid growth.