Author Archives: EllcoAdmin

Get your running shoes on!

This Sunday 6th March is Toowoomba’s annual Peak 2 Park running event!  If you haven’t already registered, you can enter online here.

Being active in the community is a fantastic way to create business relationships and is also great for your health!

Did you know, our associate Janeta Campbell is a firm believer that getting outside and exercising is a great way to kick start your day and clear your head so you are ready to tackle any problem you may face.

Be sure to keep an eye out for Janeta in the 10km event and give her a wave!

5 things every family business should do – part 5: meet with family to discuss the business

by David Harland CPA

Running a family firm can be grinding.  Sometimes it is too easy to get caught up working in the business instead of on the business.

A new fiscal year presents family business owners with an annual opportunity to take time to sit with key stakeholders and think about the issues surrounding their business.

Part 5 – Meet with family to discuss the business

Most successful multi-generational family businesses meet regularly with family shareholders to discuss the future of the business. Even if you don’t have such formal ownership structures, take the time to set up regular meetings with key family members.

One issue we frequently see within family groups is that business issues spill over into family time. Failing to maintain boundaries between personal and business time can lead to burnout or friction within family relationships.

Carving out a dedicated time and place to talk about the business can help you maintain those boundaries and give your key stakeholders space to discuss concerns.

Source: CPA Australia

 

5 things every family business should do – part 4: add family to your branding

by David Harland CPA

Running a family firm can be grinding.  Sometimes it is too easy to get caught up working in the business instead of on the business.

A new fiscal year presents family business owners with an annual opportunity to take time to sit with key stakeholders and think about the issues surrounding their business.

Over the next five weeks we will discuss the issues you may like to consider in your business.

Part 4 – Add family to your branding

A 2015 global survey of family businesses by Ernst & Young found that 76 per cent of those surveyed explicitly refer to themselves as a family in their business branding.

Other research has shown that family businesses that embrace their identity benefit from customer perceptions of trustworthiness, community orientation, social responsibility and a long-term perspective.

Consider how well your current branding and marketing materials identify you as a family business and whether you could be making the connection more explicit.

Family business identity can be especially important in markets where primary competitors are corporations or non-local businesses. Take a look at your target audience and competition and think about whether staking out an identity as a family business will make a positive difference.

Source: CPA Australia

5 things every family business should do – part 3: get financial agreements in place

by David Harland CPA

Running a family firm can be grinding.  Sometimes it is too easy to get caught up working in the business instead of on the business.

A new fiscal year presents family business owners with an annual opportunity to take time to sit with key stakeholders and think about the issues surrounding their business.

Over the next five weeks we will discuss the issues you may like to consider in your business.

Part 3 – Get financial agreements in place

Are your business and family assets protected from third parties?

Many businesses run into financial trouble because of lawsuits, divorces, partnership dissolutions and other financial disputes. If you don’t currently have financial agreements in place that legally protect your assets, you could be leaving family wealth open to claims.

We strongly recommend communicating early and often with family members about expectations around money and family wealth.

Many families experience the stress and financial strain that can appear when a family member gets divorced. If a properly written premarital agreement isn’t in place, the divorcing spouse could be entitled to a portion of the firm’s assets.

Financial issues can also arise when business partners decide to part ways or creditors come calling. Take the time to speak with a trusted lawyer about your current asset protection and ownership strategies. Waiting could prove costly in terms of financial losses and missed business opportunities.

Source: CPA Australia

5 thing every family business should do – part 2

by David Harland CPA

Running a family firm can be grinding.  Sometimes it is too easy to get caught up working in the business instead of on the business.

A new fiscal year presents family business owners with an annual opportunity to take time to sit with key stakeholders and think about the issues surrounding their business.

Over the next five weeks we will discuss the issues you may like to consider in your business.

Part 2 – Clarify hiring and promotion practices

Family businesses approach hiring in different ways.  Some believe that the business is there to serve the family and have an open door for children and relatives who want to work within the firm.  Others treat family like any other prospective employee.

In our work as family business advisors we have seen many situations in which unqualified managers contributed to family business failures. It’s also not uncommon for family dynamics to affect hiring and promotion.

Take the time to speak with a trusted advisor about your current asset protection and ownership strategies.

For the sake of the business, we strongly recommend professionalising your human resources policies by clearly defining work roles and setting expectations for promotion.

One of the main sources of friction between family and non-family employees is compensation. If your firm pays or promotes family members unfairly, you may have trouble attracting and retaining qualified employees. Take a look at your current compensation structure and make sure that you are paying and promoting fairly.

Source: CPA Australia

5 things every family business should do – part 1

by David Harland CPA

Running a family firm can be grinding.  Sometimes it is too easy to get caught up working in the business instead of on the business.

A new fiscal year presents family business owners with an annual opportunity to take time to sit with key stakeholders and think about the issues surrounding their business.

Over the next five weeks we will discuss the issues you may like to consider in your business.

Part 1 – Create a Succession Plan

Too many family businesses treat succession like a goal instead of an ongoing process.  If you haven’t started thinking about your succession plans or explicitly identified a successor, you could be setting your business and family up for failure.

Illnesses, unexpected emergencies and even death can all threaten future success unless you have plans in place.  Succession is a critical responsibility and it’s important that you start thinking about who will step into key positions when you and your managers aren’t around.

If you already have members of the next generation working (or interested in working) within the business, now is the time to start nurturing those leadership and management qualities.

Most successful multi-generational businesses require family members to build experience outside the family business.

They typically do this for two reasons: One, they want to offer their children the freedom to pursue outside opportunities so that they fully appreciate their options.  Two, their kids build valuable experience working for other businesses and bring fresh perspectives with them.

Source: CPA Australia

Time is running out to get SuperStream ready

With only two quarters left until SuperStream becomes mandatory, employers are being urged to cross SuperStream off their ‘to-do’ list ahead of the 30 June 2016 deadline.

It takes a little time to set up, but over a quarter of a million employers who have made the change are already enjoying (on average) a 70% reduction in the time they spend on super. That equates to approximately 1.5 hours each cycle! If you haven’t done so already your options to get ready include:

• upgrading your current payroll software
• using your super fund’s online system
• using a messaging portal
• using a clearing house (like the ATOs free Small business superannuation clearing house).

An important part of SuperStream preparation is collecting your employees’ TFNs and their funds’ unique super identifiers (USIs). You then enter it into your system ahead of the next quarterly due date on 28 January. This gives you time to check that things are running smoothly before the deadline.

Use the ATO’s Employer checklist for a step-by-step guide on all you need to do.

Remember…you can also ask us for help!

Next step:

• Employer checklist: a step-by-step guide

Find out about:

• Small Business Superannuation Clearing House

See also:

• For help finding USIs and superannuation product names use Super Fund Lookup.

 Source:  Australian Taxation Office

Australia Post set to raise postage prices

From 4 January 2016 it will cost more to send letters using Australia Post.  An ordinary stamp will now cost $1.

There will also be some changes to the standard delivery times by introducing three speeds for sending letters within Australia – Express Post, and the new Priority and Regular Services.

^Priority is the current standard, Regular is the new proposed standard.

To send Priority mail you will need to apply stamps as usual, then purchase a Priority label at a cost of 50 cents and apply next to the postage stamp.  Priority labels will be available at all Post Offices, as well as the online shop.

The ATO are going digital – have your say!

The ATO are constantly looking at new ways to provide better online services that meet your expectations and improve how they interact with you.

The proposed Digital by default initiative will deliver a simpler, easier, more flexible and adaptable way of interacting digitally with them and puts your experience at the forefront of service delivery.

The initiative proposes that in future, most small businesses will be required to use their digital services to send and receive information and payments.

The ATO will provide support for those who need help to make the shift from paper to digital. Alternative services will be available for people who are unable to go digital and who qualify for an exemption.

The ATO want to hear from small business owners like you to better understand:

• the support you may need to transition to digital services
• the approach the ATO take for those who can’t use digital services
• any concerns you may have.

The Digital by default initiative is subject to law change and the outcomes of this community consultation.

Visit the ATO’s Let’s Talk page to read the proposal and provide your feedback – the discussion will be open from 30 November 2015 to 15 January 2016.

Next step:

• Read the consultation paper and provide feedback at Let’s Talk: Digital by Default.

Source: Australian Taxation Office

Free tax seminars

The Australian Taxation Office (ATO) is conducting seminars for small business via webinar.

Webinars are online seminars that:

• allow you to participate over the internet using a computer, smart phone or tablet
• let you attend from the convenience of your home or office
• save you time and money
• have a chat facility so you can ask the presenter questions.

The ATO webinars are scheduled in NSW time, all year round. From April to September they use Australian Eastern Standard Time (AEST); and from October to March they use Australian Eastern Daylight Time (AEDT).

Series one – Tax basics for small business

Who should attend?

Small business operators and those just starting or thinking about starting a new business, should consider participating in these free tax webinars.

Why should you attend?

You will learn about tax issues relevant to owning and operating a small business and receive practical tips for your business.

What will be covered?

Each webinar will explore a specific tax issue for small business, including:

• Tax basics introduction
• Income tax deductions
• Home-based business
• Motor vehicle deductions
• Concessions for small business
• Activity statement essentials
• Goods and services tax
• Budgeting and record keeping
• Small business assistance
• Employer obligations overview
• Super obligations for employers
• Issues for contractors
• Depreciating assets

When are they on and how do you register?

For the full schedule and to register for the Tax basics webinars, click on this link: Small business webinars

Tax basics videos

The ATO also offers a suite of Tax basics videos for small business. These videos cover an extensive range of topics: Tax basics for small business video series

Series two – Construction industry – Taxable payments reporting

Who should attend?

People working in the building and construction industry.

What will be covered?

Taxable payments reporting requires businesses that operate in the building and construction industry and who pay contractors for building and construction services, to report those payments to the ATO annually.

The one-hour webinar session will answer the questions of who reports, what is reported and provide tips to assist you now.

When are they on and how to do you register?

For the full schedule and to register for the Taxable payment reporting webinars, click on this link: National webinars

The ATO’s other webinar programs

Rental property owners

For information about rental properties:

• Watch the ATO’s rental property video series
• Visit the ATO’s residential rental properties webpage

Trustees of SMSFs

The ATO runs one-hour webinars for trustees of self-managed super funds on these three topics:

• Self-managed super funds for trustees – an overview
• Self-managed super funds – accepting contributions and managing investments
• Self-managed super funds – accessing your super

When are these topics on and how do you register?

For the full schedule and to register for these webinars, click on this link: Webinars

Source: Australian Taxation Office