SSFIN

10 BOLD WAYS TO SUPERCHARGE YOUR BUSINESS

Mon, 10 Nov 2025 01:27:55 GMT

Here are ten ways to make sure that you continue to drive through each business quarter with purpose, vision and the courage to super-charge your business.

1. Eliminate distractions: Time is the scarcest resource and biggest killer for most businesses. When we get busy we can also get distracted and focus too much time and energy on the wrong things. Be brave - slash standard meeting times, reduce unnecessary admin and delegate roles and responsibilities.

2. Say goodbye to bad customers: If possible in your business, get rid of ten time-wasters, bad payers, or customers who cause you pain. You will feel instant relief and spend your time better elsewhere.

3. Invest More: Having freed up time and headspace from deploying points one and two above, make sure you ring-fence time, key people, and money for some of the initiatives below. Redeploy with passion!

4. Get a Plan: You don't go on a journey without a map or any idea of where you're headed - so why fly blind with your business? Have a planning process, create a kick-arse plan - and execute. We can help you get started.

5. Surround yourself with positivity: Make sure the people in your business understand and share your vision. Bring them onboard, listen to them and give them ownership. Don't let people who don't get it, or don't care, be a millstone around your neck. If they're not right, do them a favour and free up their futures.

6. Use Technology: Technology can help you decrease admin, improve comms, improve reporting and accountability. Whether it's for team communication, cloud accounting or generative AI, slash paper and automate where possible.

7. Keep on top of the numbers: Do you have enough information to monitor business cashflow and see emerging trends? We can help you identify the metrics to track on a regular basis, in order to run your business efficiently.

8. Be Different: Break the mould and position yourself to attract ambitious, growing and engaged clients, and employees.

9. Deploy Marketing: Create a simple marketing plan to increase reach and penetration. Set aside a budget to treat this seriously. Start by making sure you really understand your customers. Existing customers are prospects too, keeping them happy is your first step. The more you know about them, the easier it will be to attract more of the same.

10. Take a break: Don't underestimate the time you have away from your business. It can allow you to come back refreshed with new enthusiasm and inspiration for the way forward.

YOUR SUPERANNUATION PLAYBOOK JUST CHANGED!

Tue, 26 Aug 2025 06:13:01 GMT

Superannuation shake-up: As of 1 July 2025 , big changes are now in play.

Super got a shake-up on 1 July 2025 . Some changes will help you grow your retirement savings faster, others will mean keeping a sharper eye on the rules. Here’s the quick guide.

�� Contribution Caps – More Room to Boost Your Super

Before-tax (concessional) cap: $30,000 a year
After-tax (non-concessional) cap: $120,000 a year
Bring-forward rule: up to $360,000 in one hit (if you’re eligible)

Winner’s circle: anyone looking to put away more for retirement.
Watch-out: your age and total super balance can change what you’re allowed to contribute.

�� Transfer Balance Cap – Now $2 Million

The cap on how much you can shift into a tax-free retirement pension is now $2m .

Winner’s circle: retirees who want more tax-free income.
Watch-out: not everyone gets the full $2m. Your personal cap depends on your history.

�� Division 296 Tax – The $3 Million Question

A new 15% tax on earnings tied to balances over $3m .

Winner’s circle: anyone under the $3m mark (nothing changes for you).
Watch-out: high-balance members — this could cut into long-term strategies. Legislation still pending, but it’s coming.

�� Super Guarantee – Locked at 12%

Employers now contribute 12% of Ordinary Times Earnings.

Winner’s circle: employees. More money into your super, automatically.
Watch-out: business owners managing payroll costs.

�� ATO Compliance – Eyes Everywhere

The ATO is turning up the heat:

NALE (non-arm’s length expenses): must be market value.
Illegal early access: don’t even think about it.
Crypto/digital assets: value them properly or face penalties.

Winner’s circle: trustees who play by the book.
Watch-out: anyone cutting corners.

The Bottom Line

2025 is the year of bigger caps, tougher rules, and sharper compliance. The upside? More opportunities to grow your retirement savings. The downside? More ways to get tripped up.

Need Advice?

If you’re unsure how these changes affect you, now’s the time to check in. Whether it’s topping up your super, starting a pension, or making sure your SMSF ticks all the compliance boxes, we’re here to help.

�� Contact Slack-Smith Partners today and make the new rules work in your favour.

FY25 BUSINESS CHEAT SHEET

Fri, 27 Jun 2025 08:05:07 GMT

A new financial year, a new set of rules.

As we enter the 2025–26 financial year, several important updates will take effect that could impact your business operations, cash flow, and compliance obligations. Here’s what you need to know to stay ahead.

The most significant change is the rise in the Superannuation Guarantee (SG) rate. From 1 July, employers will need to contribute 12% of employees’ ordinary time earnings to super. This increase applies to all payments made on or after 1 July, even if the pay period begins in June. It’s the final step in a long-planned series of increases and will now become the new standard. Super contributions must be paid on time and in full to the correct fund, with the next quarterly due date falling on 28 July 2025. If your payroll runs more frequently, you can align SG payments to that schedule for efficiency.

Also effective from 1 July is a 3.5% increase to the National Minimum Wage and minimum award wages, following the latest decision by the Fair Work Commission. The increase applies from the first full pay period on or after 1 July, so it’s crucial that employers review their payroll systems and ensure compliance with the updated rates. This change will directly affect many regional businesses and their staffing budgets, especially those operating in hospitality, retail, or care sectors.

Another key update involves the General Interest Charge (GIC) on unpaid tax debts. Currently, interest accrued on overdue ATO liabilities is tax-deductible. However, from 1 July 2025, that will change. Any GIC incurred after this date will no longer be deductible, increasing the financial cost of carrying tax debt. The current GIC rate is 11.17% and compounds daily, so the cost adds up quickly. If you're managing an existing debt, it may be worth clearing it before the end of June to maintain deductibility this financial year.

Depreciation limits for work vehicles are also changing. The maximum value you can use when calculating depreciation for a business-use vehicle is now capped at $69,674. If you're planning to upgrade a car or fleet, this cap will apply from 1 July.

On the energy front, small businesses can expect a modest bit of relief. An automatic $150 rebate will be applied to eligible electricity accounts, split into two instalments of $75 between July and December 2025. To qualify, the business must have an active ABN, be named on the electricity bill, and use under 100 megawatt hours annually. There’s no application process—if you’re eligible, it’ll happen automatically.

For businesses investing in solar energy, NSW is offering an extra incentive. If you install a solar battery and connect it to a Virtual Power Plant (VPP), you may be able to claim an additional rebate of up to $1,500. This is on top of federal rebates and can make a meaningful dent in your upfront costs while contributing to a more resilient energy grid.

If you made eligible purchases of energy-efficient equipment between 1 July 2023 and 30 June 2024, you may be entitled to a bonus tax deduction. Businesses with turnover under $50 million can claim an additional 20% deduction—up to a cap of $20,000—for energy-saving upgrades made during that time frame. If you’ve already made the purchases, now’s the time to ensure your accountant captures the full benefit in your 2024 return.

Finally, the instant asset write-off threshold will reduce dramatically. From 1 July 2025, it will revert to just $1,000 per asset. This follows a temporary boost to $20,000 that was in place from July 2023 to June 2025. If you’re planning any substantial equipment or asset purchases, it would be wise to make them before the financial year ends to take advantage of the higher threshold while it lasts.

This year’s changes touch nearly every corner of small business—wages, super, tax, energy, and investment. The more proactive you can be in the lead-up to 1 July, the smoother your transition will be. If you need help reviewing your obligations or planning smarter for the year ahead, our team is ready to help.

RISE IN THE MINIMUM WAGE:THE IMPACT FOR YOUR BUSINESS

Tue, 24 Jun 2025 23:39:47 GMT

From 1 July 2025, the minimum wage for Australian workers increases by 3.5%. We explain the numbers behind the increase and the potential impact for your small business.

On 3 June 2025, the Fair Work Commission’s Expert Panel announced the National Minimum Wage and award wages will [increase by 3.5%] ( https://ministers.dewr.gov.au/rishworth/national-minimum-wage-rise-35-cent-following-annual-wage-review# ) from 1 July 2025. This wage increase follows on from the 2024-25 Annual Wage Review and its recommendations.

This increase in basic pay is great news for Australian workers, especially with the country facing an ongoing cost-of-living crisis.

But how will an increased wages burden affect your small business?

What’s the new minimum wage?

The 3.5% increase will mean that the National Minimum Wage will increase by:

- $0.85 to $24.95 per hour

- $32.10 to $948.00 per 38-hour week

- $1,669.20 to $49,296.00 per year.

How will the wage increase impact your payroll costs?

If your workforce includes a large percentage of employees that are currently on the minimum wage of $24.10, that jump of 85 cents per hour will put extra pressure on your cashflow.

For example, if you’re currently employing 20 people on the minimum wage, and pay them every two weeks, the salary component of your payroll will jump from $36,636 to $37,920. That’s an extra $1,284 on your payroll bill every fortnight – and that’s before you factor in super contributions and other benefits.

Talk to our team about preparing for the wage increase if you’re concerned about the cashflow impact of an increase to the minimum wage.

We can review the overall effect of the 3.5% rise and suggest ways to mitigate the impact on your payroll costs, cashflow and overall financial position.

Tamworth - (02) 67613 461

Gunnedah - (02) 6742 9300

Narrabri - (02) 5733 4644

WHAT IS THE DIVISION 296 TAX?

Tue, 10 Jun 2025 04:36:50 GMT

The Division 296 tax is a new, additional 15% tax on the earnings related to the portion of your Total Superannuation Balance (TSB) that exceeds $3 million. It is intended to apply annually, calculated based on the growth in your super balance, including unrealised capital gains.

This tax is in addition to the existing:

• 15% tax on earnings in accumulation phase

• 0% tax on earnings in retirement/pension phase (subject to transfer balance cap)

The tax is designed to target high-balance super accounts and reduce tax concessions at the upper end of the system.

Who Will Be Affected?

You may be affected by this tax if your combined superannuation balances across all funds (including SMSFs, retail, industry, and public sector funds) exceed $3 million at the end of a financial year.

Important considerations:

• It is calculated per individual, not per fund.

• The balance is assessed using the Total Superannuation Balance (TSB), which includes:

o Accumulation phase accounts

o Retirement phase pension accounts

o Defined benefit interests (calculated using a special formula)

o Certain legacy pensions

If your TSB is under $3 million, you will not be subject to Division 296 tax.

When Does It Start?
The proposed Division 296 tax will commence on 1 July 2025.

The first year of assessment will be for the 2025–26 financial year.

The ATO will use your 30 June 2026 Total Super Balance to determine if the tax applies.

The first tax assessments will be issued sometime in 2026–27.

How Is the Tax Calculated?

The tax is based on growth in your super balance, including unrealised gains.
Formula:

Earnings = TSB (this year) – TSB (last year) + withdrawals – contributions

The portion of earnings attributable to balances over $3M will be taxed at 15%.

How Will the Tax Be Paid?
Each year, the ATO will:

1. Calculate your Total Super Balance and Division 296 liability.

2. Issue a personal tax assessment (similar to Division 293 notices).

3. Allow you to pay the tax from personal funds, or

4. Elect to release funds from your superannuation to pay the liability.

Note:

• The tax is levied on you personally, not your SMSF.

• You will have up to 60 days to make a payment or release election.

Division 296 Tax – Working Example

Let’s walk through how the Division 296 tax would be calculated for a hypothetical individual:

�� Scenario – SMSF Member Details

Details

Amount

Total Super Balance (TSB) at 30 June 2025

$3,800,000

Total Super Balance at 30 June 2026

$4,100,000

Personal contributions during the year

$50,000

Withdrawals during the year

$20,000

✅ Step 1: Calculate Earnings

Use the formula provided in the legislation:

Earnings = TSB (end of year) – TSB (start of year) + Withdrawals – Contributions

Substitute the values:

Earnings = $4,100,000 – $3,800,000 + $20,000 – $50,000
= $270,000

✅ Step 2: Determine Proportion Over $3 Million

We now calculate what portion of the balance is over $3 million:

Proportion = (TSB at 30 June 2026 – $3,000,000) ÷ TSB at 30 June 2026
= ($4,100,000 – $3,000,000) ÷ $4,100,000
= $1,100,000 ÷ $4,100,000
= 26.83%

✅ Step 3: Apply the Proportion to the Earnings

Taxable Earnings = $270,000 × 26.83%
= $72,441

✅ Step 4: Apply the 15% Division 296 Tax

Division 296 Tax Payable = $72,441 × 15%
= $10,866.15

The ATO will issue a personal tax notice for $10,866.15 .

Is This a Tax on Unrealised Gains?

Yes, Division 296 includes unrealised gains in its earnings calculation.

This is a key departure from how current super taxes work. Under existing rules, Super Funds generally pay tax on realised income and gains (e.g. when an asset is sold). Under Division 296, even paper increases in value — say, on property or shares held in the fund — will be taxed, even if no sale occurs.

• This can lead to liquidity concerns, especially for SMSFs holding illiquid assets like property.

• A carry-forward loss provision will apply if there is a negative earnings year, which can be used to offset future Division 296 tax liabilities.

Can I Reduce or Manage My Exposure?

If your balance is near or above $3 million, there are several strategies that might reduce exposure, including:

• Reviewing contribution strategies: Consider if further non-concessional contributions will push you above the $3M threshold.

• Asset revaluation: Ensure all SMSF assets are accurately and reasonably valued as of 30 June each year.

• Withdrawing funds: In some cases, members may wish to commence pension phase or withdraw funds (where eligible) to reduce TSB.

• Spouse contribution splitting: Spreading balances across spouses may help reduce one person’s TSB.

• Revisiting investment structures: Some clients may consider shifting high-growth or illiquid assets outside of super.

• Estate and succession planning: This is a good opportunity to align your SMSF strategy with your long-term retirement and estate goals.

Always seek personalised financial and tax advice before implementing any strategy.

Current Status of the Division 296 Tax Legislation

As of June 2025, the Treasury Laws Amendment (Better Targeted Superannuation Concessions) Bill 2023, which includes the proposed Division 296 tax, has not yet passed both Houses of Parliament.

Please note that the rules are still subject to change before the legislation is enacted.

If you would like to discuss your SMSF with our Expert Advisors, call our team in Tamworth on (02) 67 613 461, we'd love to help!

WHAT ARE YOUR BUSINESS GOALS FOR THE YEAR AHEAD?

Thu, 06 Feb 2025 18:07:46 GMT

What will you do differently this year to enable your business to thrive? Conducting a past-year review with our experienced advisors will provide valuable insights for this year's goal-setting.

The beginning of a new calendar year is an excellent time to review last year and reflect on what worked, what didn’t, what you’d like to change and new things you want 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 coming 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, book a time with us today.

A PROMISE IS A PROMISE.

Mon, 16 Dec 2024 20:50:34 GMT

How verbal agreements can shake up estate disputes.

The recent decision by the High Court of Australia this week has further highlighted the Court’s favour for estoppel claims having significant sway in estate and testamentary disputes. Kramer v Stone [2024] HCA 48

The concept of estoppel is a time-worn equitable principle long respected by the courts of common law jurisdiction. At the risk of over-simplifying, it is where one party makes a statement or action to another and then refuses to honour or uphold this promise. It operates to stop someone going back on their word when the other party has upheld their end of that agreement, usually requiring them to do so at some level of detriment.

Key facts of this case:

The party claiming estoppel was a farm worker who earned ‘irregular and meagre income..’ working on the farm and sharing some costs and income.
The owner of the farm promised that the worker would inherit the farm on the owner's death (the ‘promise’).
Interesting to note that the owner who made the promise passed away from cancer and the wife reinforced the promise initially, but in the end had a will made leaving the worker only a lump sum of money.
Without this promise the worker would have sought work elsewhere and for a much better income, without the hardship of working the farm. The worker continued to work the farm for and with the owner for 23 years (the ‘detriment’).
The owner did not leave the farm to the worker in their will and did not inherit the farm as a result.

The farm worker then made a claim of promissory estoppel which held in his favour in the Supreme Court of NSW, which was the subject of this case, the appeal to the High Court of Australia who upheld the decision awarding the Colo property to the worker.

This case highlights the danger of promises which have been made, and may have never been in writing, can be to the subject of a family estate. Much of this risk can be avoided where there are proper structures and plans put in place to give effect to the persons intentions and protect the assets for later generations.

Unfortunately, this is an all-too-common point of dispute in regional estates. Often where property values were initially quite modest, but the capital growth means they are now much more sought after and hotly contested in family disputes. And these estoppel claims can come from inside or outside the family unit too, causing even more complications.

Take Action Today
If you’re concerned about protecting your estate and ensuring your wishes are upheld, don’t wait until it’s too late. Seek advice from an experienced legal professional to put proper structures and plans in place. Contact us today to discuss how we can help safeguard your legacy.

Disclaimer: The information provided here is general in nature and does not constitute legal advice. For specific advice tailored to your circumstances, please seek professional legal counsel.

HOW TO ADD VALUE AND SECURE YOUR FUTURE WHEN SELLING YOUR BUSINESS.

Tue, 22 Oct 2024 02:43:17 GMT

Thinking of selling your business? It’s vital to plan ahead and to add value to the company, prior to a sale. Here are five key areas of value to focus on as part of your exit strategy.

Selling up and exiting the business is a major chapter in your business journey.

But if you’re going to get the maximum return on investment (ROI), it’s vital to have an exit plan and to think seriously about how you add value to the business in the run-up to selling.

Forward planning prior to a sale is crucial. It’s generally accepted that a five-year exit plan is needed before you even think about putting the company on the market.

Having this five-year plan gives you a foundational route map to follow and allows you to consider the important areas of the business that may need work and improvement.

Let’s look at five critical ways to add value:

Increase your profitability.

Potential buyers want the comfort of knowing they’re buying a profitable business. Take action to improve your margins, reduce costs and increase revenues. A company with clear profits is a far more attractive option to buyers.

Strengthen your financial performance.

Cash is king, so buyers will be looking for positive cashflow and good financial health. Work on improving your cashflow position, reduce debt and strengthen the balance sheet to demonstrate your financial stability.

Enhance your customer relationships.

Buyers will be looking for a strong and loyal customer base. Put plenty of effort into nurturing your relationships with customers, so you can offer a business model that has genuine brand loyalists and satisfied customers.

Invest in your growth.

For your business model to be viable, you should be able to demonstrate your ability to grow. Develop new products and services, diversify into new markets and invest in the talent and resources needed to expand and scale up.

Prepare for due diligence.

Any serious buyer will want to carry out due diligence checks the business, prior to making an offer. Organise your financial records, contracts and other relevant documents (having cloud access is ideal) and make sure any legal disputes or bad debts are resolved well before starting the sale process.

Talk to us about your exit strategy

Are you planning to sell up in the medium to long-term future? If you’re currently without a firm exit strategy, now’s the time to start setting out your plan and getting the company in order.

Talk to our team about your exit and retirement plans. We’ll help you focus on the key aims for the sale, your exit strategy, succession plan and adding tangible value to the company.

POTENTIAL THREATS TO YOUR BUSINESS VALUE

Mon, 14 Oct 2024 07:15:58 GMT

Your successful business can quickly start to lose value if you don’t keep pace with a changing market. Check out these five threats that could be undermining the value of your business.

Once you’ve built up a successful business, you’ll want to see a healthy return on this investment. But in today’s turbulent business environment, a once stable and profitable company can quickly decline and fail to grow, losing the hard-won value you’ve built up.

If you’re a mature owner looking to retire in the near future, or an ambitious entrepreneur who’s planning to exit and start your next business idea, this loss of value is seriously bad news!

The key is to spot the potential threats to your business value, and to ensure you’re doing everything you can to keep your business viable, relevant and profitable.

Five potential threats that are damaging your business value.

The value and equity that’s locked up in your successful business is your nest egg. It’s the asset that will power your future retirement, buy your family that new home, or the unrealised capital that will allow you to invest, begin new enterprises or fund your lifestyle.

So if the value in your business drops, this can fundamentally undermine your future plans and leave you without the capital to take these next steps.

Here are five key threats that may be decreasing the value of your business:

A reliance on the founder that limits growth potential.

A modern business should be systemised and scalable. If you, as the founder, are still integral to your everyday operations, this blocks innovation and limits the potential growth of the business.

Outdated equipment or technology.

If you’re using outdated equipment, technology or software, this can reduce your overall operational efficiency, increase your running costs and make your business less competitive in the marketplace.

Failure to keep pace with the market.

Markets change quickly! The emergence of disruptive competitors, innovative new products or changes in customer behaviour can leave you lagging behind your competitors and losing sales and revenue as a result.

Negative reputation or brand awareness

Poor customer satisfaction scores, or bad behaviour by your employees or top team, can quickly dent your reputation as a company. Negative reputation can damage your brand, deter customers from engaging with you and, subsequently, reduce the company’s value.

Poor financial health as a business.

Potential buyers want to see that your business is financially viable. A high debt-to-equity ratio can make a business more vulnerable to economic downturns, and poor cashflow will hinder your ability to invest in growth, pay bills and meet your financial obligations all red flags for investors and potential buyers.

Talk to us about stabilising the value of your company

The business value of your company isn’t static. For the business to maintain value, it needs to keep up with a changing market, adopt new technologies and make solid plans for growth.

We can help you review your potential value and come up with a business strategy and tactical approach that keeps your company relevant and valuable well into the future.

THE ATO'S TOP TIPS FOR RUNNING A BUSINESS

Sun, 22 Sep 2024 05:27:07 GMT

Did you know the ATO has a small business portal with heaps of handy advice on managing your business taxes? We’ve highlighted six of the most popular courses.

Australia’s small businesses are the power behind our economy. Small businesses (employing less than 20 people) added nearly $590 billion of value in 2022, making up around a third of all Australian gross domestic product (GDP) for the period.

But keeping on top of your financial management, accounting and tax planning can be a major challenge for some owners.

With this in mind, the ATO has set up a new advice portal for small business owners, giving you tips and advice on everything you need to know about your finances and business taxes.

Strengthen Your Small Business( https://smallbusiness.taxsuperandyou.gov.au/ )

Essentials to strengthen your small business.

The ATO’s Essentials to Strengthen your Small Business portal is your first stop for business advice. There are helpful tips covering everything from having your first business idea, through to founding a startup, growing a business and even help on exiting the business.

From a tax perspective, there are several courses to help you keep your tax on track:

Starting a business ( https://smallbusiness.taxsuperandyou.gov.au/starting-a-small-business ) – this course helps you set up your first business, with advice on common business structures and the registrations you need to run a small business.

Using your business money and assets ( https://smallbusiness.taxsuperandyou.gov.au/using-your-business-money-and-assets ) – this course gives an overview on paying yourself, with advice on the different options and the records you must keep.

Record-keeping ( https://smallbusiness.taxsuperandyou.gov.au/record-keeping ) – advice on using technology to help your mandatory record-keeping, and on overview of the tax and super records you’ll be required to keep.

Claiming small business tax deductions ( https://smallbusiness.taxsuperandyou.gov.au/claiming-small-business-tax-deductions ) – this course covers expenses you can deduct immediately, expenses you can deduct over time and expenses you can never deduct, as well as motor vehicle expense deductions.

Growing your small business ( https://smallbusiness.taxsuperandyou.gov.au/growing-your-small-business ) – This course helps you plan the growth of your business, alongside other considerations like GST and capital gains tax (CGT).

Goods &Services Tax (GST) ( https://smallbusiness.taxsuperandyou.gov.au/goods-and-services-tax ) – an overview of who must register for GST, how to calculate GST on sales and purchases, as well as other requirements such as invoicing, record-keeping, and reporting GST to the ATO.

The ATO’s online resources are incredibly helpful when you’re starting out as a business owner. But if you need deeper advice on mandatory record-keeping and tax, or prefer to build a business relationship with one of our Business Advisors, come and speak to us.

We’ll be glad to take you through all elements of your tax requirements, record-keeping and business advisory needs.

THE VALUE OF CASHFLOW FORECASTING FOR YOUR BUSINESS

Wed, 11 Sep 2024 23:49:22 GMT

A business cash flow forecast will give you vital business intelligence to help you scenario-plan, search for cost-savings and look for strategies that will preserve your cashflow position.

Projecting your cashflow pipeline forwards is vital.

To be able to navigate the future path of your cashflow, you need to start forecasting – so you can map out your financial position over the coming months and can take the appropriate action to safeguard your cash position.

Plus, when you have access to detailed forecasts you can scenario-plan, search for cost-savings and look for strategies that will preserve your cashflow position.

Forecasting your future cash pipeline

Remaining in control of the cash coming into (and going out of) the business is the real focus, so you can accurately predict your financial position and can resolve any issues.

Key ways to get more from your forecasting

- Run regular forecasts – The financial landscape is changing on a daily basis at present. A cashflow forecast is not a document that remains static. Variables and external drivers are literally changing each day, so it’s vital that you run frequent forecasts and react swiftly to any projected cash issues as they become apparent.

- Use the latest cashflow forecasting apps – cashflow forecasting apps, like Fluidly, Float, Futrli Predict or Fathom integrate with your accounting software. They give a drilled-down view of how your cash inflows and outflows will pan out over the coming months – information that will inform and justify the decisions you make during these extremely challenging times.

- Explore the right revenue streams – most sectors will have seen their sales change over the last 18 months. To overcome this, there’s a real imperative to explore revenue streams and new opportunities for income. This could be offering a new product or service, or working with a new partner. The idea is to find ways to increase the money that’s coming in the door and balance out your unavoidable expenses.

- Get proactive with cost-cutting – if you can reduce cash outflows to a minimum, that will have a real impact on the health of your future cashflow. Pare back your operations and aim to reduce things like unnecessary software subscriptions, or over-ordering of basic supplies. Negotiating cheaper rates with suppliers, if possible, will also help.

- Review your staffing needs – it's never great to make anyone redundant, but you can also look at ways to reduce the costs of staffing and resourcing without getting rid of staff completely. Reducing working hours or redeploying staff in different roles are all options that reduce payroll costs, while also looking after your staff.

- Run a variety of scenarios – changing the financial drivers in your forecast model allows you to scenario-plan different strategies and options. Many of these will be in a long-term plan once conditions improve. Scenario-planning lets you answer questions and will give you some hard evidence on which to base your decision-making and strategic outlook over the coming months.

- Look at various ways to access funding – if forecasts show a giant cashflow hole coming up, you’re going to need additional funding to get through this crisis. We can assist your business to investigate funding opportunities from grants, banks, loan providers, alternative lenders and crowd-sourcing funders.

Talk to us about setting up cashflow forecasting

Forecasting is an important step to give you the business intelligence to support your decision making.

Get in touch to improve your control over cashflow.

Tamworth (02) 67 613 461

Gunnedah (02) 67 429 300

Narrabri - Coming Soon

Sydney - (02) 67 613 461

A HANDY GUIDE TO NABBING THOSE WORK WORK-FROM-HOME EXPENSES IN THE 23/24 FINANCIAL YEAR

Wed, 03 Apr 2024 02:56:00 GMT

A taxpayer who carries on part or all their business or employment activities at home may be entitled to a deduction for part of their outgoings related to working from home.

There are two ways to calculate a work from home deduction:

Fixed rate method

From 1 July 2022, the revised fixed rate method allows individuals to claim running expenses incurred as a result of working from home at 67 cents per hour (PCG 2023/1).

The revised rate accounts for energy (electricity and gas), phone, internet, stationery and consumable expenses.

Also, a taxpayer is no longer required to maintain a dedicated workspace at their home.

To claim the fixed cost method, taxpayers must keep a record of:

the total number of hours worked from home (for the entire year)

the additional running expenses covered by the rate per hour (for example, phone bill, electricity bill, stationery and computer consumables etc.)

any depreciating assets (and how much of their use of that asset was work-related).

A separate deduction may be claimed for any depreciating assets (not included in the rate per hour), like office furniture or technology.

Actual cost method

The actual cost method allows you to claim a deduction for the actual expenses incurred as a result of working from home.

To claim the actual cost method, taxpayers must keep a record of:

- the number of hours worked from home (whether that be the total hours, or a continuous four-week period representing the usual pattern of work, if their hours are consistent throughout the year)

- their additional running expenses (for example, phone bills, electricity bills)

- how the deduction was calculated.

Please contact our office, should you need help with collating the necessary information or preparing draft calculations to claim your work from home expenses. hello@ssfin.com.au We'd love to help.

THE ART OF NETWORKING: TECHNIQUES FOR BECOMING A GREAT NETWORKER

Wed, 13 Mar 2024 01:29:00 GMT

Leading a business can be hard work. But the good news is that you're not the only founder, owner-manager or CEO who's treading this path. Networking with your peers is a great way to make connections with other entrepreneurs, while also looking for new business opportunities.

5 ways to improve your networking skills

Being part of a wide network of entrepreneurs and business leaders is about being part of the business community. It’s about giving to the community, as well as being supported by it – and knowing that you’re surrounded by other entrepreneurs who share very similar goals.

So, networking is a valuable thing to take part in, whether you’re a brand new founder, or a seasoned business owner who’s been around the track a few times. But how do you get GOOD at networking? There’s no simple answer to this, but we’ve highlighted five key things you can do to get more from your networking and to give more back to your community.

To become a better networker:

- Be authentic and relational – if you’re going to make a success of networking, it naturally makes sense to appeal to people. Being genuine and interested in getting to know your peers will help a lot. Be yourself, be friendly and take the time to learn about the people you meet. Ask questions about their work, their interests, their goals and what generally makes them tick. This isn’t just about ‘doing business’, remember; it’s about getting to know people as people, and being part of this community.

- Be a good listener and ask thoughtful questions – in networking, listening is just as important as talking. When you're talking to someone, listen intently, look people in the eye and pay real attention. Resist the temptation to interrupt or start thinking about what you're going to say next. Instead, focus on understanding their perspective and asking thoughtful questions. Ultimately, you want to make it clear that you’re interested in what this person has to say, and that you’ve found some common ground together.

- Be helpful and offer your expertise – one of the best ways to build relationships is to be an asset to your industry community. Look for ways to use your experience and skills, and offer ideas, advice and help (if people are looking for assistance). This could mean sharing your industry knowledge, providing resources, or making introductions to other people in your network. When you help others, you help the community, underline that you’re a valuable resource and that you’re interested in building relationships.

- Be an asset to your niche/sector/industry – share new ideas, drive innovation and be a voice that stands out in the network. If you want to make an impact, it’s important to stand out from the crowd. A good approach is to be someone who’s known for their expertise, creativity and thought leadership. Get involved in industry discussions, and write articles and blog posts about the big issues in your sector. The more you contribute to your niche/sector/industry, the faster your star will rise.

- Follow up after networking events – getting the networking right is one thing, but it’s important to also get your follow-ups right too. Get people’s business cards, phone numbers or emails and get in touch after the event to touch base. A quick email or LinkedIn message could well be the start of a blossoming new business relationship or friendship. It’s also a good idea to connect on social media and to comment, share and repost your new contact’s posts.

What are the best places for networking?

- Industry-specific events and conferences – industry events are great places to rub shoulders with other professionals in your field. You can get involved in discussions, learn about the latest trends and developments and even present your own sessions.

- Social media platforms – you’re spoilt for choice when it comes to social media sites to help your industry networking. LinkedIn, X(Twitter), Facebook, Threads and BlueSky all help you connect with the people you’ve met through your networking, and build on those relationships to share your insights and ideas more widely.

- Local meetups and workshops – most cities and towns will have regular business meetups and workshops that you can dip into. Business breakfast events and evening get-togethers are a great way to meet local business owners and to find out what’s going on in your local community.

If you’re looking to raise your profile and improve your networking, we’d love to lend a helping hand. We’re connected to hundreds of different business owners and leaders – and we’re more than happy to introduce you.

Our advice is to put yourself out there in your industry community, track down your local business peers and get busy with your content marketing and social media posts.

KEY WAYS TO ACCESS FUNDING FOR YOUR BUSINESS

Mon, 04 Mar 2024 03:22:00 GMT

If you’re planning to found a new business, you’ll need enough startup capital to get this venture off the ground. And once you’re up and running, you’ll need additional business finance and investment at each stage of your growth and expansion along the business journey.

But where does this business funding come from? And what are the best routes for accessing the finance you need to bring your business plans to life?

Five way to access the right funding

There are multiple routes to fu nding, and many specialist types of finance that cater to a specific industry or a particular business type. However, it’s always a good idea to understand the funding fundamentals and the options they offer for your business.

We’ve summarised five different funding routes that are worth considering:

Bank loans and overdrafts – traditionally, your bank was the go-to place for business funding. Taking out a business loan allows you to pay back the loan over an agreed period, and in easy instalments. Extending your business overdraft can give you more credit to play with. But in recent times, banks have become more reticent to lend and will need cast-iron evidence of your ability to repay any agreed loan or overdraft.
Pros: Large sums of money can be borrowed
Cons: Strict lending criteria and may require collateral
Private investors – getting high-net-worth individuals to invest in businesses is another well-worn path to funding. Private investors can be a great source of funding if your business is unable to qualify for a bank loan or needs a large amount of funding quickly. However, investors will usually expect shares in the business and some form of control over the direction and running of the company. Shrewd investors will also want a guaranteed return on their investment (ROI).
Pros: Can provide large sums of funding and more flexible criteria than banks
Cons: Can be difficult to find private investors and they will expect good ROI
Business loan providers and niche industry lenders – There are many lenders that specialise in providing loans to businesses in specific sectors, or at particular points in the business journey. These lenders may have less stringent lending criteria than the main high street banks and can offer more flexible repayment terms. If you’re trading in a niche and need money quickly, these lenders are well worth adding to the mix.
Pros: Less stringent lending criteria than banks and flexible repayments
Cons: Interest rates may be higher than bank loans and collateral may be needed against your loan
R&D tax credits – R&D tax credits are government incentives that can help you offset the cost of your company’s research and development activities. R&D tax credits can be a valuable source of funding for businesses that are developing new products or services and will help to cut your corporation tax bill – savings that can then be reinvested back into the business.
Pros: Offsets the cost of R&D activities and can be claimed retrospectively
Cons: The application process can be complex and time-consuming
Government loans and tax incentives – there are a huge range of government loans, enterprise incentives, grants and tax incentives available to your businesses. These funding options can be used for a variety of purposes, such as starting a new business, expanding an existing business or creating jobs. Each country and territory will have its own specific government incentives, so it’s worth doing your own research, or working closely with your advisers to find the most suitable loans, grants and incentives in your particular area.
Pros: Provides a valuable source of funding, and (if you meet the criteria) some grants may not require repayment
Cons: Criteria must be met in full and the application process can sometimes be complex and time-consuming

Talk to us about setting up your funding strategy

Whatever point you’re at in the business journey, there’s real value in having a clear funding strategy set up and agreed for your business. The right routes to funding will depend on your business goals, your ability to make repayments and whether your sector is classed as high or low risk. But having a funding strategy in place really is an essential element of your planning.

As your adviser, we can run you through the funding options available to you, with industry-specific advice on the most practical and effective routes to finance.

THE ESSENTIAL GUIDE TO BUILDING WEALTH AS A PROPERTY INVESTOR

Mon, 05 Feb 2024 01:01:00 GMT

Ready to conquer the ever-changing world of real estate investments? It's not just about buying a property and watching the cash flow in. You need to be a Sherlock Holmes of the market, understanding the fundamentals that lead to success.

Aussies are famous for their love of property investing, with many seeing it as the key to financial freedom and the ultimate "Great Australian Dream." But, let's face it, you can't just jump in blindfolded and expect to come out on top. You need a plan, expert advice, and a killer strategy.

So, how do you start your journey towards property investment gold? Let's dive in!

Get Strategic: Nail Your Investment Game Plan

Before you dive into the exciting world of property investment, it's essential to set clear and realistic goals. What's your end game? Are you seeking long-term capital growth, rental income, or both? Get specific and set a timeline. Doing this will keep you on track and pave the way to savvy decision-making. Now, let the property adventure begin!

Unveil The Perfect Hunting Ground

To start, scavenge for areas that are ripe for growth and have a thirst for rentals. Hunt for spots with cool stuff nearby, like swanky infrastructure, job hubs, and other awesome amenities. Don't forget to check out key indicators like local market trends, population growth, and economic forecasts. You can gather precious intel from online resources, real estate websites, or score some face-time with top-notch experts like buyer's agents and real estate wizards. Let the property hunt begin!

Create a Solid Support Network

The secret sauce is building a kick-butt support network. Tap into the wisdom of the seasoned pros: mortgage brokers, real estate agents, property gurus, and financial advisors. These wizards can share tips, steer you through the trickiest twists, and hook you up with some sweet resources. Plus, don't forget to high-five fellow investors who can swap tales of their triumphs and trade secrets of the trade. With a savvy crew like this, you're unstoppable!

Get Your Money Game Face On

Before taking the big leap, let's talk money. Go ahead and chat with a mortgage broker or financial advisor to get a handle on your cash flow and borrowing limits. We're talking about nitty-gritty expenses like mortgage payments, property maintenance, and rental income. You don't want to get caught in a financial storm, so make sure you're financially prepared and your goals are aligned with the investment plan.

Sherlock Holmes The Situation

Think of due diligence as your trusty sidekick who will help you dodge risky investments and make smarter decisions. First things first, investigate the property you're eyeing from every angle. Scrutinize its history, condition, and potential for growth. And, if you're not a building expert, call in the cavalry to conduct building inspections, pest inspections, and legal checks. You'll also need to go Sherlock Holmes and check out rental yields and vacancy rates in the area. By breaking out your magnifying glass and digging deep, you can avoid any nasty surprises and ensure your investment journey is a smooth ride.

Time To Unleash Your Inner Investor!

Investing in property can be a game-changer, no matter where you're starting from. With a bit of forethought, planning, and expert advice, you can take the plunge into the world of property investment with absolute confidence. Here's to a future filled with financial security and endless possibilities!

Contact our Master of Lending Cameron today for advice in starting your journey or growing your property portfolio! - 0409 625 820

TAX PLANNING HELPS YOU DO MORE WITH YOUR MONEY

Mon, 05 Feb 2024 00:40:00 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 our firm 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.

As your tax adviser, we’ll help you look ahead across the whole financial year, looking for the opportunities to reduce your tax liability and find the best tax deductions and incentives.

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.

REVIEW YOUR BUSINESS EXPENSES AND SAVE

Wed, 31 Jan 2024 04:49:00 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 management 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.

THE SIGNIFICANCE OF LEVELLING UP YOUR BIZ GAME.

Mon, 22 Jan 2024 02:09:00 GMT

Business development is one of the most important areas of focus for any ambitious business.

If you want your business to grow, that’s going to mean having a razor-sharp focus on new opportunities and strategies. That could mean exploring new markets, or nurturing new partnerships. It might mean diversifying to create new revenue streams, or coming up with new ideas to boost your profitability. But, ultimately, good business development comes down to having good ideas – ideas that broaden your reach, sales, revenues and external relationships.

As the founder or CEO, it's important to put business development at the top of your to-do list.

Put time aside for business development

Business opportunities don’t just appear out of thin air (sadly). To come up with an opportunity for a business partnership, or to bring in a big new client, you’re going to have to do some serious work. So, it’s a good idea to put business development (BD) time aside in your diary.

By blocking out time to devote to BD, you can step away from the everyday operational tasks and get into a more creative and objective mindset. Where do you want the business to be in 6 months? What do you need to do to achieve this goal? Are there relationships you could build to bring this plan to life? Asking these questions and getting a more concrete idea of the answers will form the basis for your BD plan – and that’s the route map you can then follow.

Work on your BD plan and strategy

Once you have some positive BD ideas to work with, it’s important to get your goals and your strategy down into some form of plan. As with any kind of growth initiative, your BD activity needs to be well planned, so you have a clear idea of what you want to achieve.

Give each new strategic idea a clear timeline and assign jobs, activities and roles to the relevant people in the team. Cost out each project too, and assign a budget so you can be sure that you’re getting the best return on your investment (both financially and from a time perspective).

Most importantly, though, track your progress against your BD goals. Agree on a target, set a date and measure your progress and performance against that timeline.

Build relationships with potential partners and customers

Relationships lie at the heart of your BD activity. You might be getting to know the executive team at a possible new partner’s company. Or you may be reaching out to a new customer audience with a brand-new product. Getting to understand what makes these people tick is so important to warming them up as a potential partner, customer or supplier.

Trust is the real key here. People are more likely to engage with your business when they trust you as people and as a brand. So, spending time nurturing relationships and networking with other businesspeople and targets is time well spent.

Record, track and analyse your BD performance

With your goals, targets and timelines locked in, you’re ready to start putting this BD plan into action. But to know if you’re making headway, it’s a good idea to track your performance.

If you’re using project management software or a client relationship management (CRM) app, it’s easy to add notes, record your progress and tick off the key actions in the project. You can put the financial reporting tools in your accounting software to good use. Track cashflow for the project, increases in revenue and monitor your sales and marketing expenses etc.

Get ambitious with your BD ideas

No business stands still. Your aims and goals as the owner will change. Your market will evolve and new competitors will appear. Economic conditions and business opportunities will change. To keep your business at the cutting edge, it’s vital to keep your BD focus alive and well.

Remember to:

Define your goals and make it clear what you want the business to achieve
Align your BD activity with the company’s main growth plan
Log your ideas and potential opportunities and add them to your BD plan
Warm up your targets and potential partners and keep notes on your progress
Track your BD performance against your targets, budgets, revenues and timelines
Keep revisiting your plan and flexing your BD activity to the current market.

If you want to expand your business development activity, get in touch with our Business Advisors.. We’ll help you highlight the opportunities and draw up the best possible plan for your BD activities. (02) 67 613 461 or email hello@ssfin.com.au

SETTING GOALS FOR YOUR AND YOUR BUSINESS IN 2024

Mon, 08 Jan 2024 03:22:00 GMT

The new year is a new beginning. If you are a business owner, this is often the time of year when you reflect on where you are at and think about your business goals for the 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.

Get in touch with our team, we'd love help you set goals for the new year. -

Tamworth - (02) 67 613 461

Gunnedah - (02) 67 429 300

5 QUESTIONS TO ASK BEFORE MAKING AN OFFER ON A BUSINESS

Mon, 06 Nov 2023 02:04:00 GMT

Buying an established business is a great way to enter into the business world, or to expand your existing business empire. But purchasing a company isn’t something to enter into lightly.

Becoming the prospective owner of a new business means doing your homework, researching the business you plan to acquire and working closely with a team of advisers.

Here are five key questions to ask yourself, before entering into a deal.

1. Why are they selling the business?

It’s vital that you know WHY the current owner is selling. It may be that they simply want to move on to a new business venture, or retire. But they may also be trying to extricate themselves from a business that’s not performing well, or has intrinsic issues.

Important questions to ask will include:

Is the owner retiring?
Are they facing financial difficulties?
Are they looking to pursue other opportunities?
Are there any legal or regulatory issues?
Are there any personal reasons for the sale?

2. Are the finances in order?

A common problem with both startups and established businesses is a lack of cashflow. It’s possible to have a business with a reasonable customer base and ongoing sales, but for poor margins and rising operational expenses to have a negative impact on the company’s finances.

Before you buy, drill down into the company’s finances.

Get a copy of the business' accounts, both statutory filings and internal management accounts, and have them reviewed by an accountant
Look for any red flags, such as debt, losses or cashflow problems
Make sure the business is profitable and has a solid financial foundation.

3. Are the staff capable and engaged with the business?

As the saying goes, your people are your most important business asset. So, prior to buying the business, it’s important to get acquainted with the top team, management and employees.

To learn more about your prospective workforce:

Meet with the key employees and get their input on the business
Make sure the core team is willing to stay with the business after the sale
Think about the cost of replacing any key employees who leave.

4. What governance do you need to do?

Getting your due diligence and governance done is such an important step in your pre-purchase planning. You need to know this business is a viable enterprise, that there are no links to undesirable activities and that you’re not taking on a whole load of legal issues.

To make sure you’re ticking all the correct governance boxes:

Review the business' contracts and agreements
Run due diligence checks on the company and its owners
Make sure you understand the legal obligations of the business
Get legal advice on any issues that you are not sure about.

5. Can you get the best price?

Purchasing a well-respected brand is a great move as an entrepreneur, but you don’t want to pay over the odds when agreeing on a deal. It’s important to have a clear ceiling on your budget, and to stick to your guns when it comes to negotiations on price and conditions.

To help secure the best price:

Do your research and find out the fair market value of the business
Be prepared to negotiate with the seller to bring the price down
Don't be afraid to walk away from a deal if you are not getting a fair price.

Talk to us about planning the purchase of a business

This isn’t an exhaustive list. There are plenty of additional factors to think about when buying a business. Any business sale is a complex process, where working with professional advisers will help you navigate the twists and turns so you come out with a successful deal.

As your adviser, we can help you:

Run due diligence checks on the business
Assess the company’s finances to check for red flags
Find the relevant routes to finance in order to fund the purchase
Connect you with M&A experts to advise on the sale.

If you’re looking to buy in the near future, come and talk to us, we'd love to help you build an empire.

FROM IDEA TO IMPACT

Wed, 01 Nov 2023 04:34:00 GMT

Your business plan is the sat-nav that keeps the company moving in the right direction. Having that guidance can be a massive benefit to your success as a business. But what elements should you include, and what are the main considerations to think about?

A detailed business plan will generally include

A clear direction for the business – a well-crafted business plan gives you a defined path to follow, outlining the company’s purpose, goals and strategies. This helps everyone understand the business's mission, so you’re pulling in the same direction.
An overview of your financial strategy – your plan will include revenue projections, expense forecasts and funding requirements. This financial guidance gives you the foundations for mapping out your budgeting, cashflow and securing investments.
An overview of threats and opportunities – a robust plan will identify the potential challenges and risks faced by the business. This helps you develop contingency plans for overcoming these challenges, reducing your risk and keeping the company on track.
A summary of your sales and marketing strategy – outlining your sales and marketing strategy helps you target the right audience and differentiate your business in the market. This is vital for winning customers and driving your sales revenue.
Attract the right investors and lenders – a solid business plan enhances your credibility when you’re approaching investors or lenders. A good plan will demonstrate your commitment to the business, your understanding of the market and your ability to achieve long-term success. This is essential for securing investment and funding.

7 steps to creating a plan for your business

There’s no ‘one size fits all’ business plan. Your business plan should clearly outline your goals and how you intend to reach them. As a starting point, this should include how you intend to set up, finance, manage and run your business.

Use the following seven headings to kick-start your planning process. We can help you work through the numbers and strategic thinking to support your goals:

Describe your business idea – what’s the idea and how does it work? Try to have an ‘elevator pitch’ that quickly and simply describes the potential of your idea.
Set out your business goals – what are your objectives for the business? Set out your vision for the business and what your core mission will be.
Outline your ideal customer – do the research to provide an overview of your target market (the people or organisations you’ll sell to).
Do some competitive analysis – who are your competitors? Consider all the possibilities. They may not be in your precise sector but still compete for the same consumer dollar. What is your competitive advantage (the reason they pick you over your competition)?
Perform a business financial analysis – How will you fund your business and can you demonstrate the financial viability of the business idea?
Sketch out your sales and marketing plans – show how you’ll win customers and generate revenue. Consider the 4 Ps of marketing (Product, Price, Place, Promotion). Plan your budget and work out what your return on investment (ROI) will be.
Outline your business structure – give an overview of your organisational structure and your strategic and operational roles as directors.

A well-structured business plan is an essential document, whether you’re a new founder that’s just starting out, or a seasoned business owner looking to grow and diversify.

Your business plan is never written in stone. It’s a dynamic and evolving document that changes as the business progresses. Revising your business plan on a regular basis helps you improve your goals, refine your strategy and adapt to meet changing circumstances and markets.

How can Slack-Smith Financial help you with your business plan?

Having a solid business plan is what gives your company direction, structure and meaningful objectives as an enterprise. As your adviser, we’ll help you understand your business goals and vision, and will help you translate this into a watertight business plan. We’ll also help you track your performance against this plan, and will work with you to update the strategy as the business evolves.

If you’d like to know more about business planning, we’ll be happy to explain. Get in touch to discuss your business plan. - (02) 67 613 461 // hello@ssfin.com.au

PREPARING YOUR BUSINESS FOR SALE

Mon, 23 Oct 2023 02:30:00 GMT

Selling your business is a big move for any owner. You’ve built this company up, scaled it and put years of hard work into making the business a success story. So, when the time comes to sell, you’ll want to know that you’re getting the best price, and the best future for your legacy.

We’ve outlined five ways to maximise the value of your business, with practical steps for making your company the most attractive prospect on the market.

5 steps to prepare you for a sale

The first thing to underline is that selling a business is rarely a fast process. Most owners will begin planning their sale years in advance, working to an exit strategy that sets out all the key milestones. Your aim is to leave the business in great shape, with stable finances, a solid team and a customer base that will continue to provide solid revenues for years to come.

So, how do you achieve these goals?

Assess your reasons for selling and your desired timeline – what’s the key motivation for selling your business? Are you retiring, looking to move on to other opportunities or hoping to unlock your equity? Once you know your reasons, you can decide on some core goals for the sale, and set a realistic timeline for the sale.
Get your financial house in order – ‘doing your financial housekeeping’ will mean preparing financial statements, submitting outstanding tax returns and making sure you have access to any other documentation that potential buyers will want to see. You may also want to work with an M&A expert to discover the company’s true market value.
Make your business attractive to buyers – any buyer wants to know they’re taking on an attractive business proposition. Making the business feel more attractive means improving your marketing and sales strategies, beefing up your operations and ensuring you have a positive cashflow position. You should also think about creating a transition plan for the buyer, so the handover is as smooth as possible.
Find the right buyer – it’s important to feel like you’re handing your legacy over to the right owner – and getting the price you need. This may involve working with a business broker or marketing your business yourself. Make sure you vet potential buyers carefully to ensure that they are a good fit for your business and your existing team.
Negotiate the sale terms – achieving your desired price could involve a fair amount of negotiation. You’ll need to sit down with your buyer to discuss purchase price, payment terms and other conditions of the sale. Be prepared to compromise and be willing to walk away from a deal if the terms are not right for you.

Talk to us about getting your business ready for a sale

If you’re intending to sell your business in the next five years, it’s important to start planning now. Coming up with a sale plan and a robust exit strategy takes time, as does sorting out the business housekeeping and finding the best possible buyer for the company.

As experienced advisers in many business sales, we’ll help you:

Get organised, locate the relevant documents and improve your record-keeping.
Clean up your business and address any legal or financial issues
Come up with a detailed sale plan and help you market the business
Expand your business network, to find the best buyer for the company

Following these steps will greatly increase the market value and price of your business.

Get in touch to talk about your sale plan. (02) 67 613 461 or email us at hello@ssfin.com.au

SHOULD YOU BUY A BUILDING FOR YOUR BUSINESS?

Tue, 17 Oct 2023 02:03:00 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.

MERGER ANNOUNCEMENT

Tue, 10 Oct 2023 04:45:00 GMT

A note from our CEO & Managing Partner Mark Slack-Smith

I am incredibly excited to announce the milestone merger of local Gunnedah-based accounting firm Rettie & Vickery, with Slack-Smith Financial, effective October 2023.

The merger between Rettie & Vickery and Slack-Smith Financial represents a significant step forward in providing comprehensive financial services to individuals, families, and businesses throughout Tamworth, Gunnedah and beyond. This amalgamation strengthens the combined entity's position as a formidable professional services firm, capable of delivering a broader range of services and resources to meet the diverse needs of our clients.

Together, Paul O'Donnell Partner of Rettie & Vickery and I jointly express our enthusiasm for this exciting occasion: "We are thrilled to join forces under the Slack-Smith Financial brand and embark on this exciting journey together. Our shared values, commitment to excellence, and passion for serving our clients will enable us to create even greater financial opportunities for our community."

If you would like to know more about this exciting merger, please visit our website www.ssfin.com.au or contact me at mark@ssfin.co m

10 HOT QUESTIONS FOR BUSINESS OWNERS.

Mon, 09 Oct 2023 02:37:00 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 brand over another?

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.

hello@ssfin.com.au | (02) 67 613 461

HOW MUCH SHOULD YOU PAY YOURSELF?

Sun, 01 Oct 2023 21:59:00 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 by contacting our Client Concierge, we'd love to hear from you.

hello@ssfin.com.au

(02) 67 613 461

PLAIN ENGLISH GUIDE TO CASHFLOW

Mon, 04 Sep 2023 03:02:00 GMT

Positive cashflow is the beating heart of your business. Dive into our Plain English guide to cashflow and find out how to get in complete control of your cash position.

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 by calling our friendly Client Concierge Logan on (02) 67 613 461 .

TIPS FOR SELF-MANAGED SUPERANNUATION FUNDS

Tue, 22 Aug 2023 04:21:00 GMT

Having a self-managed superannuation fund (SMSF) gives you control and flexibility over how you make investments and prepare for retirement.

An SMSF must be set up as a trust and is for the sole purpose of providing retirement benefits to its beneficiaries. The SMSF must also have a legal document called a trust deed that complies with Australian Superannuation legislation. The deed governs how the fund is set up and how it will operate.

There are many different investment strategies for SMSFs according to the fund’s trust deed and operations, as well as what is allowed under legislation. It’s important to get your deductions and record keeping correct for the SMSF audit process and the tax return, as there are strict laws governing SMSFs.

Common Tax Deductions

Deductible expenses for SMSFs vary according to the nature of investments and the trust deed, however there are some general expenses that apply to most funds.

- Operating expenses, such as management and administration fees, audit fees and ASIC annual fees.

- Investment-related expenses, such as interest, investment advice fees, costs of servicing and managing investments, property fees and brokerage fees.

-Tax-related expenses, such as preparing the SMSF annual return.

- Legal expenses including amending trust deeds.

- SMSF statutory fees and levies.

- Insurance premiums for death, total and permanent disability, terminal illness and income protection.

The rules for tax deductibility for SMSFs are different to those for individuals and business. Many people are used to claiming deductions for certain things in business or property investment and find they don’t apply to SMSF tax returns. We can help clarify what’s deductible and what’s not.

Expenses must relate to the sole purpose of the SMSF, being to provide retirement benefits to its members. There may be some items you want to query with us for the audit and tax return to see if they meet the sole purpose test, such as investment training courses, collectibles and artwork, travel expenses or personal computers.

SMSF Annual Return and Records

Once the formal audit of the SMSF has been completed, the annual return must be lodged with the ATO. The annual return is not only a tax return but also reports regulatory information and member contributions. You must keep all records relevant to the annual return.

- Keep all transaction, tax, accounting and financial reporting records for at least five years.

- Keep all records relating to trustee meetings, minutes, investment strategies and appointments or changes of trustees for at least ten years.

Make Your SMSF Management Easy. SMSF management can be time consuming. We can help with researching and managing investments, checking trust deed compliance, setting investment strategies, keeping records and arranging the annual audit. Call Slack-Smith Financial and speak to our SMSF Specialist Michelle Stewart and get ahead for your next annual SMSF return.

BUSINESS LOANS

Tue, 22 Aug 2023 04:17:00 GMT

Need some extra cash to take your business to the next level, but daunted by the loan process? You're not alone. There's a lot of paperwork and number-crunching involved.

Before you get started, remember that banks want your application to succeed as the interest you pay is a vital revenue stream. So, it’s normally up to you to make their job easy by turning up with a good business case.

Let us help you connect the dots for them. While banks are experts in money, they’re not necessarily knowledgeable about your area of business. Putting together a clear story and demonstrating how the loan will be used to unlock your business potential, and ultimately how you will pay the loan back is critical in getting a positive outcome.

The great news is we are there to help you through this process.

With our commercial/business lending experts, we can help tailor an application to a bank for you. And even better be able to speak to multiple banks on your behalf to find you firstly someone who is willing to do the deal, and secondly make sure you are getting the right deal for you.

This lending process can be time-consuming, but the benefit we have in looking after you in house, is that we have most of your information on file, we can produce the reports the lenders require, and only need to take up a small amount of your time in the application process, thus freeing you up to do what you do best, running and looking after your business

If you have any questions or are looking to finance anything for your business talk to us, we are here to help make the process as simple as possible. Call our Client Concierge on

(02) 67 613 461

THE BUREAU CAFE

Tue, 22 Aug 2023 00:13:00 GMT

Outgrowing the inital Slack-Smith Financial office, Mark and Susie Slack-Smith discovered 169 Marius Street on the market. Purchasing the beautiful building, previously the Tamworth Youth Hostel, located across the road from the Tamworth Train Station, is now proudly the home of Slack-Smith Financial and The Bureau Cafe.

Before a year long renovation ensued, the unique, 100 year old building had many quirky spaces and hidden features, a brick kitchen in the basement complete with the original fireplace and serving windows where train drivers were fed after their shift. Pressed metal ceilings, staircases and more fireplaces were uncovered during the renovation including vintage champagne bottles and cigarette packets from the 1950's. The Slack-Smiths wanted to retain as many of the original features whilst adding a timeless and homely finish to the interiors. The fusion of old and new designed to pay homage to the buildings history whilst creating a meeting place for professionals in the CBD.

With heavy foot traffic and beautiful North facing windows and views, Mark and Susie decided the lower floor at street level would be wasted on anything but a cafe. Creating The Bureau concept, with monument walls, greenery, tan booth seating and stone top benches, The Bureau has a French bakery vibe with dark finishes that offers the feeling of a warm hug upon entry. Now operated by the CH Group, The Bureau is just one part of the buildings concept, conveniently located below the Slack-Smith Financial office, catering to the community, fuelling the Slack-Smith Financial team and their clients.