Many parents and grandparents are often willing to help younger generations with funds toward a house or education. It’s a wonderful gift – but there can also be some serious traps.

The person who receives the funds (called the “beneficiary”) needs to ensure that any early inheritance isn’t later caught up in a matrimonial or estate planning dispute, just because it hasn’t been thought through.

Here are two strategies to help you avoid losing your accrued family wealth, and still be generous!

Strategy 1 – ‘Family Friendly’ Loan

One way of safeguarding the transfer of assets and protecting family wealth is through a family friendly loan rather than a straight gift. These types of loans are preferred by parents who are looking to help their children but at the same time are unsure of their own future financial requirements.

Here’s the big advantage…
If a child has a failed relationship, the funds given to the child would in most circumstances end up in the pool of funds that are split. So, your family money could very quickly end up with another family.

Instead of a gift, a properly documented loan to a child could protect the assets from becoming part of a child’s divorce settlement. In the event of a child’s divorce, the loan could be recalled to avoid it becoming part of a settlement.

Strategy 2 – Gift or Sell Assets before Death

You may find that you save a lot of tax if you deal with your assets before death, rather than leaving them in your name to be distributed by your Will.

An example is assets held within a Self-Managed Superannuation Fund (SMSF) that are left to a non-dependent who may end up incurring a tax liability on the taxable component of the death benefit at a rate of 15% or 30% (plus the 2% Medicare Levy).

With proper estate planning, the money could be withdrawn in some circumstances before death tax free.

There could also be tax benefits in selling certain assets acquired before 20 September 1985 (pre-CGT) and distributing the proceeds before death without incurring capital gains tax.

The post How to Not Lose your Family Wealth appeared first on BeWise Accounting & Wealth Solutions.

If you are a business owner, it’s your responsibility to safeguard not only your own information but also any sensitive data that belongs to employees and customers. By keeping informed about cybersecurity and installing security practices throughout your business, together we can build a stronger, more secure online community.

With so many businesses working remotely around the world, it’s important to remember that scammers are always on the hunt for new ways to get access to your information.

Here are some simple, easy-to-implement steps to help you protect your business, your employees and your clients online.

And even if you aren’t a business owner – the tips below can still help and protect you.

#1 – Be aware of phishing

Phishing is the fraudulent attempt to steal personal information, credit card and banking details, or passwords, by pretending to be a legitimate organisation. These fraudulent emails are becoming increasingly sophisticated – posing as legitimate correspondence (invoices, alerts, calls to action) from a wide range of online services. It can be difficult to tell the difference, so if you’re not expecting the email, err on the side of caution.

During the COVID-19 pandemic, there has been an increase in phishing attacks where hackers pretend to be government agencies giving health or pandemic advice in order to spread malware, steal your login credentials and credit card information.

The best way to prevent phishing is to keep yourself and the people you care about informed. Make it a habit to verify the origin of the email and think twice before opening links and attachments. Look out for strange email addresses, mis-spellings or dodgy formatting.

#2 – Use unique passwords and two-step authentication

Cybercriminals can steal your password in many ways. It’s important to use unique passwords for any services that are important to you to avoid being vulnerable if your credentials are exposed. Anyone can check to find out if their email address has ever shown up in a list of exposed credentials. Password managers are a great option as they provide an excellent balance of security (strong randomly generated passwords) and convenience (1-tap login across devices).

Two-step authentication (or 2SA) provides an extra layer of security and is mandatory if you’re using a digital software provider that interacts with the ATO, such as Xero accounting software. The first layer is your login and password. With Xero, the second layer is a unique code generated from an app on your phone every 30 seconds. You need both in order to log in.

Any other platform will also be more secure if you enable 2SA. It’s especially important on your email accounts, since they can be used to reset your passwords for other services. If someone has access to your inbox, they can potentially gain control of any linked online accounts

#3 – Avoid using open wifi connections

Open, or public wifi connections can be easily mimicked by cybercriminals. This is when they set up a wifi connection, and pretend to be a trustworthy source. If you connect to any of these, they will be able to see all the data you view or share.

If you don’t have access to a trusted network, try using a mobile hotspot instead, or a Virtual Private Network, commonly known as a VPN. A VPN is a software that encrypts all connections, which means that a cybercriminal won’t know which websites you’re visiting and the credentials you’re using.

#4 – Check all software is up to date

Cybercriminals tend to abuse any bugs in software to make it behave in unintended ways. Most companies are good at monitoring and fixing these bugs, but the problem isn’t solved until you update your computer.

Make sure you and your staff are running anti-virus and anti-malware software on devices that are being used for work purposes. It’s important to regularly check that software is up to date. This includes operating systems, such as Windows or MacOS, as well as any antivirus or local software. If you have the option, choose the option to automatically update your software.

#5 – Off-boarding

Off-boarding previous employees is just as important as onboarding. If an employee leaves your business, make sure you have a process in place for ending their access to all of your business tools, especially accounting software, your customer database and your document management system. Also make sure that any login password for joint email accounts (e.g. sales) are changed.

Report it!

If you’re unsure or observe something suspicious, raise your concerns with your IT team. If you don’t have an IT team, there are several government agencies that can help you with this, depending on where you are. In Australia, get in touch with the Cyber Security Centre.

The post Scams Awareness Week 2020 appeared first on BeWise Accounting & Wealth Solutions.

Book your appointment by clicking the BOOK NOW button at the top right of our website or you can contact our team on (02) 4225 0816 to arrange an appointment.

Remember, your tax lodgement deadline is not the 31st of October 2020 if you lodged your return on time with us for 2019. In most circumstances, you have an automatic extension of time to lodge until around March 2021.

This year we have again enclosed our popular “Items to Consider” checklist. You will find this useful in helping you to collate your basic tax information.

We’ve also recently relocated to a new office, and our new premises at 32 Market St, Wollongong now offers convenient parking for all our clients on the street and at the rear of the building.

Can’t make it to the office? No problem!

Please feel free to simply post or email your information to us. We will check the information provided and if we need further information or clarification, we will contact you.

Or, if you prefer, we can still do over the phone or online appointments, just let us know when you book your appointment.

We would like to take this opportunity to thank you for your loyalty and support over the years and look forward to hearing from you soon.

The post Tax Time 2020 appeared first on BeWise Accounting & Wealth Solutions.

JOBKEEPER PAYMENT OVERVIEW

JobKeeper is a Federal Government subsidy paid to eligible businesses effected by COVID-19 to cover the costs of their employee’s wages.

Affected employers will be able to claim a fortnightly subsidy payment of $1,500 per eligible employee from 30 March 2020, for a maximum period of 6 months. This full amount of $1,500 must then be paid to all eligible employees, whether they are full time, part time or long-term casuals.

Here is a brief summary of how the JobKeeper payments are made:

• They are paid by the ATO within 14 days of month end.
• The first payment will be starting in the first week of May 2020.
• The eligible payroll periods are every 14 days, commencing 30 March 2020.
• Monthly employer payroll reporting is required to trigger the payment by the ATO – using Single Touch Payroll (STP)

The employer will continue to receive the subsidy payments for eligible employees while they are eligible for the payments. While the program is expected to run for 6 months, payments will stop if the employee is no longer employed by the business.

Business Participation Entitlement

Sole traders and some other entities (such as partnerships, trusts or companies) may be entitled to the JobKeeper Payment scheme under the business participation entitlement. A limit applies of one $1,500 JobKeeper payment per fortnight for one eligible business participant. Sole traders, one partner in a partnership, one beneficiary of a trust, and one director or shareholder of a company may be regarded as an eligible business participant.

VALUE TO YOU OF JOBKEEPER

If you are eligible to receive the JobKeeper payment for all your eligible employees for the entire 6 month period, we have estimated that you would receive the total JobKeeper payment amount below:

This is obviously a huge assistance to you during these difficult times.

OBLIGATIONS + RISKS FOR YOU

If a wrong claim is made or if the ATO in the future decides that you were ineligible to receive the JobKeeper payment, the ATO will require you to repay them any JobKeeper payments that you have received plus penalties and interest.

The key risks to you as the employer include:

1. The employer certifies the facts provided to the ATO and the JobKeeper claim made.
2. The employer receives significant JobKeeper payments over a 6 month period. For example, an employer with 10 employees would receive $195,000, and an employer with 20 employees would receive $390,000.
3. If the employer makes a mistake and is found to be ineligible by the ATO (for example, its turnover is not down by 30%), then they may have to repay all amounts received back to the ATO.
4. An employee ceases to be eligible if they cease employment during the life of this JobKeeper scheme.

Also, the ATO requires you to keep all records in relation to your JobKeeper claim for a 5 year period.

OUR WORK PLAN TO ASSIST YOU

The ATO has specific actions that must take place within tight timeframes for an employer to receive the JobKeeper payment.

These are the actions that we can assist you with:

Employer Eligibility Assessment – NOW

• Review ATO requirements for the business
• Review ATO requirements for employees
• Review ATO requirements for Business Participation Entitlement – Sole Trader, Partnership, Company or Trust
• Document the fall in turnover % in case of future ATO audit

Identify Eligible Employees – NOW

• Prepare list of eligible employees
• Prepare JobKeeper employee nomination notice for all eligible employees and ensure all notices are signed

Make Correct Wage Payments to Eligible Employees – NOW

• Ensure your payroll software is correctly set up to record JobKeeper “top up” payments
• Pay the minimum $1,500 before tax to each eligible employee each fortnight (starting with the fortnight 30 March to 12 April) to be able to claim the JobKeeper payment for that fortnight
• Continue to pay the minimum $1,500 to employees in every subsequent fortnight until 27 September 2020

Enrolment for JobKeeper – FROM 20 APRIL 2020

• Enrol for JobKeeper using ATO online services from 20 April 2020
  • Provide employer bank account details for receipt of JobKeeper payment
  • Confirm if applicant is entitled to a “Business Participation Payment”
  • Specify the number of employees who will be eligible for one period and the number eligible for two periods
  • Get confirmation that all employees the employer plans to nominate are eligible and the employer has notified them and has their agreement

Apply for JobKeeper Payments – FROM 4 MAY 2020

• Apply to claim the JobKeeper payment using ATO online services between 4 May 2020 and 31 May 2020
• Ensure all eligible employees have been paid $1,500 per fortnight
• Identify the eligible employees from a STP prefill or by manually entering into ATO online services
• Update your accounting system Chart of Accounts to ensure JobKeeper payments are coded correctly

Monthly JobKeeper Declaration Report – DUE BY 7TH OF EACH MONTH

• Using ATO online services, report to the ATO using their Monthly JobKeeper Declaration Report on the following:
  • Reconfirm that your reported eligible employees have not changed
  • Input current GST Turnover for the reporting month
  • Input projected GST Turnover for the following month
  • Notify if any eligible employees have changed or left your employment

OUR PRICE

We fully understand that times are tough at the moment, and like for your business, our team’s wages need to be paid as well as other operating costs.

There is a lot of work we need to do for you so that you can potentially receive the maximum JobKeeper benefit, and we want to be as transparent as possible with you about how we have calculated our price for our services and advice.

Upfront Work

Ongoing Work

Please note that if any additional or complex issues arise from our processing any of the above lodgements and work, we will invoice you at a standard hourly rate of $180 per hour plus GST for our additional work.

Seeing that all our clients are wanting their work done ASAP to receive the JobKeeper payments, we are doing our work on a first paid first done basis. We’ll send you our invoice for your upfront payment to us, and as soon as we receive your payment (plus your payment for any outstanding invoices), we’ll put you in our queue to get your work completed. With our ongoing work, we will invoice you at the beginning of each month, and after you pay our invoice we will lodge your Monthly JobKeeper Declaration Report with the ATO.

NEXT STEPS

We have limited time to enrol you for JobKeeper (starting on 20 April 2020) and then making your first Application for JobKeeper Payments (starting on 4 May 2020).

Please let us know ASAP if you would like us to immediately start the above work for you, and we’ll send you our Invoice for upfront payment.

We look forward to hearing from you soon.

The post Claiming JobKeeper – Updated information and how we can help you appeared first on BeWise Accounting & Wealth Solutions.

It is going to be a very tough time for all of us business owners over the next 6 to 12 months and some of us will be affected way more than others, but we want to reassure you that the team at BeWise Accounting are here and will be working overtime to ensure we are supporting all of our clients.

The key Government website that you need to be aware of is https://treasury.gov.au/coronavirus

It contains very useful Fact Sheets and information for business owners and individuals.

In Summary

• Tax-free payments up to $100,000 for small business and not-for-profit employers. An increase in the previously announced initial tax-free payments for employers to a maximum of $50,000. In addition to this, a second round of payments will be made up to a maximum of $50,000, accessible from July 2020.
• Solvency safety net – temporary 6 month increase to the threshold at which creditors can issue a statutory demand on a company from $2,000 to $20,000, and an increase in the time companies have to respond from 21 days to 6 months. Directors also are provided with temporary relief from personal liability for trading while insolvent for 6 months.
• Access to working capital – Introduction of a Coronavirus SME guarantee scheme protecting financial institutions by guaranteeing 50% of new loans to SMEs.
• Sole traders and self-employed eligible for Jobseeker payment – the eligibility criteria to access income support relaxed for the self-employed and sole traders.
• Temporary relief from some Corporations Act requirements

In Detail

Tax-free payments up to $100,000 for employers

• From: 28 April 2020
• Eligibility: Small and medium business entity employers and not-for-profit entities, with an aggregated annual turnover under $50 million.

The Government has increased the previously announced measures to provide cash flow support to business.

Now, eligible businesses with a turnover of less than $50 million will initially be able to access tax-free cash flow support, with the minimum amount being increased to $10,000 and the maximum amount increased to $50,000 (previously $2,000 to $25,000). However, additional support will be provided in the July – October 2020 period so that eligible entities will receive total minimum support of $20,000 and up to $100,000.

In order for a business to qualify for this support it must have been established prior to 12 March 2020. The rules are more flexible for charities because the Government recognises that new charities might be established in response to the pandemic.

The cash flow support measures will be provided in the form of a credit in the activity statement system. The support will be provided in two phases.

• The first phase ensures that eligible employers receive a credit equal to 100% of the PAYG amounts withheld from salary and wages paid to employees during the relevant period, up to the maximum amount of $50,000.
• The second phase ensures that eligible employers receive another series of credits, equal to the credits that were received under the first phase. For example, if a business received $40,000 of credits in the first phase it will receive a further $40,000 of credits in the second phase. These additional credits will be spread over two or four activity statement periods, depending on whether the employer lodges on a quarterly or monthly basis.

If a business pays salary and wages to employees but is not required to withhold any tax then a minimum payment of $10,000 will be made in the first phase and a further payment of $10,000 will be made in the second phase.

The credits are automatically calculated by the ATO and employers will need to lodge an activity statement to trigger the entitlement. If the credit puts the business in a refund position the excess amount will be refunded by the ATO within 14 days.

Businesses that lodge activity statements on a quarterly basis will be eligible to receive credits in the first phase for the quarters ending March 2020 and June 2020. Credits in the second phase will be available for the quarters ending June 2020 and September 2020. The minimum $10,000 payment will be applied to the first lodgement.

Business that lodge on a monthly basis will be eligible for the credits in the first phase for the March 2020, April 2020, May 2020 and June 2020 lodgements. Credits in the second phase will be available for the June 2020, July 2020, August 2020 and September lodgments. The minimum $10,000 payment will be applied to the first lodgement.

Eligibility for the measure will be based on prior year turnover. We will have to wait for the legislation for the finer details.

Not-for-profit employers, including charities, with an aggregated turnover under $50 million will also be able to access the cash flow support.

See: Cash flow assistance for businesses

Solvency safety net

A safety net has been put in place to protect businesses in temporary financial distress as a result of the pandemic by lessening the threat of actions that could unnecessarily push them into insolvency and force the winding up of the business. These include:

• A temporary 6 month increase to the threshold at which creditors can issue a statutory demand on a company from $2,000 to $20,000.
• The time a company has to respond to statutory demands will increase from 21 days to 6 months.
• For 6 months, directors will be provided with temporary relief from personal liability for trading while insolvent.
• See also bankruptcy safety net below

It will be more important than ever for business to stay on top of their debtors.

Debts incurred will still be payable by the business. Only those debts incurred in the ordinary course of the business will be subject to the safety net measures.

See: Temporary relief for financially distressed businesses

Access to working capital for SMEs – supporting lenders

The Government has announced a Coronavirus SME guarantee scheme that will guarantee 50% of new loans to SMEs up to $20 billion. These loans are new short-term unsecured loans to SMEs.

SMEs with a turnover of up to $50 million will be eligible to receive these loans.

The Government will provide eligible lenders with a guarantee for loans with the following terms:

• Maximum total size of loans of $250,000 per borrower.
• The loans will be up to three years, with an initial six month repayment holiday.
• The loans will be in the form of unsecured finance, meaning that borrowers will not have to provide an asset as security for the loan.

Loans will be subject to lenders’ credit assessment processes with the expectation that lenders will look through the cycle to sensibly take into account the uncertainty of the current economic conditions.

This latest measure builds on the previous initiatives to ensure small business can access capital, including:

• An exemption to the responsible lending obligations to enable financial institutions to provide new credit, credit limit increases, and credit variations and restructures,
• $15bn to the Australian Office of Financial Management to invest in wholesale funding markets used by small banks and non-banks to enable these lenders to support SMEs, and
• Australian Banking Association members will defer loan repayments for 6 months for small businesses (affected small businesses will need to apply for relief).

Sole traders and self-employed eligible for Jobseeker payment

The eligibility criteria to access income support payments will be relaxed to enable the self-employed and sole traders whose income has been reduced, to access support.

More: Income support for individuals
More: More financial support for coronavirus affected job seekers

Temporary relief from Corporations Act requirements

The Treasurer has been given a temporary instrument-making power to amend the Corporations Act to provide relief or modifications to specific compliance obligations.

ASIC has announced measures for those companies with a 31 December financial year that need to hold their AGMs by 31 May 2020, providing a two month no action period and enabling hybrid virtual AGMs.

The team at BeWise Accounting are here to help you. Please reply to this email or phone us on (02) 4225 0816 if you need any assistance. We will stay in touch with you with regular update emails, and while we’re limiting face to face appointments for the time being, we will be available for phone meetings or even a Skype/Zoom Meeting if required. We are here to help however we can.

The post Government Support For Business appeared first on BeWise Accounting & Wealth Solutions.

It is going to be a very tough time for all of us over the next 6 to 12 months and some of us will be affected way more than others, but we want to reassure you that the team at BeWise Accounting are here and will be working overtime to ensure we are supporting all of our clients.

The key Government website that you need to be aware of is https://treasury.gov.au/coronavirus

It contains very useful Fact Sheets and information for business owners and individuals.

We have had many enquiries about what benefits might be available to you. Below is a summary of the key measures for individuals faced with loss of employment or significantly reduced income and what assistance is available. This information does not specifically address small business clients.

In Summary

• Sole traders and self-employed eligible for Jobseeker payment – the eligibility criteria to access income support relaxed for the self-employed and sole traders.
• Early release of superannuation – individuals in financial distress are able to access up to $10,000 of their superannuation in 2019-20, and a further $10,000 in 2020-21. The withdrawals will be tax-free and will not affect Centrelink or Veterans’ Affairs payments.
• Temporary reduction in minimum superannuation draw down rates – superannuation minimum drawdown requirements for account based pensions and similar products reduced by 50% in 2019-20 and 2020-21.
• Deeming rates reduced – from 1 May, superannuation deeming rates reduced further to a lower rate of 0.25% and upper rate of 2.25%.
• Supplements increased, access extended and eased – for 6 months from 27 April 2020:
  • A temporary coronavirus supplement of $550 will be paid to existing income support recipients (people will receive their normal payment plus $550 each fortnight for 6 months).
  • A second one-off stimulus payment of $750 will be paid automatically from 13 June 2020 to certain income support recipients (in addition to the payment made from 31 March 2020).
  • Eligibility for access to income support eased to include sole traders and the self-employed, and to those caring for someone infected or in isolation.
  • Waiting periods and assets tests temporarily waived.
• Bankruptcy safety net – temporary 6 month increase to the threshold for the minimum amount of debt required for a creditor to initiate bankruptcy proceedings against a debtor from $5,000 to $20,000.

In Detail

Sole traders and self-employed eligible for Jobseeker payment

The eligibility criteria to access income support payments will be relaxed to enable the self-employed and sole traders whose income has been reduced, to access support.

More: Income support for individuals
More: More financial support for coronavirus affected job seekers

Early release of superannuation

From mid-April, individuals in financial distress will be able to access up to $10,000 of their superannuation in 2019-20, and a further $10,000 in 2020-21. The withdrawals will be tax free and will not affect Centrelink or Veterans’ Affairs payments.

To be eligible to access your superannuation you need to meet the following requirements:

• you are unemployed; or
• you are eligible to receive a job seeker payment, youth allowance for jobseekers, parenting payment (which includes the single and partnered payments), special benefit or farm household allowance; or
• on or after 1 January 2020:
  • you were made redundant; or
  • your working hours were reduced by 20% or more; or
  • if you are a sole trader — your business was suspended or there was a reduction in your turnover of 20% or more.

For those eligible to access their superannuation, you can apply directly to the ATO through the myGov website from mid-April.

More: Early access to superannuation

Temporary reduction in minimum superannuation draw down rates

Superannuation minimum drawdown requirements for account-based pensions and similar products will be reduced by 50% in 2019-20 and 2020-21.

The upper and lower social security deeming rates will be reduced further. As of 1 May 2020, the upper deeming rate will be 2.25% and the lower deeming rate 0.25%.

More: Providing support for retirees

Time limited fortnightly $550 ‘coronavirus supplement’

For the next 6 months, the Government is introducing a new Coronavirus supplement to be paid at a rate of $550 per fortnight. This supplement will be paid to both existing and new recipients in the eligible payment categories.

The payment will be made to those receiving:

• Jobseeker payment (and those transitioning to the jobseeker payment)
• Youth allowance jobseeker
• Parenting payment
• Farm household allowance
• Special benefits recipients

In addition, eligibility to income support payments will be expanded to:

• Permanent employees who are stood down or lose their job
• Casual workers
• Sole traders
• The self-employed
• Contract workers who meet the income test

The Government notes that these criteria could include those required to care for someone affected by the Coronavirus.

Asset testing has also been reduced and will be waived for 6 months. Income testing will still apply.

The payment is not available if you have access to any employer entitlements such as annual or sick leave or income protection insurance.

More: Income support for individuals

Second $750 payment to households

The Government is now providing two separate $750 payments to social security, veteran and other income support recipients and eligible concession card holders residing in Australia (see the full list here). The payment will be exempt from taxation and will not count as income for the purposes of Social Security, Farm Household Allowance and Veteran payments.

• Payment 1 from 31 March 2020 (previously announced on 12 March): Available to people who are eligible payment recipients and concession card holders at any time between 12 March 2020 to 13 April 2020;
• Payment 2 from 13 July 2020: Available to people who are eligible payment recipients and concession card holders on 10 July 2020.

The payments will be made automatically to those that meet the criteria.

More: Payments to support households

Bankruptcy safety net

A temporary 6 month increase to the threshold for the minimum amount of debt required for a creditor to initiate bankruptcy proceedings against a debtor will increase from $5,000 to $20,000. In addition, the time a debtor has to respond to a bankruptcy notice will be temporarily increased from 21 days to six months.

Where someone declares their intention to enter voluntary bankruptcy, the period of protection from unsecured creditors will be extended from 21 days to 6 months.

More: Temporary relief for financially distressed businesses

More information:

• Joint media release with The Hon. Scott Morrison MP Prime Minister
• Treasury: Support for Businesses
• Treasury: Supporting Individuals and Households

The team at BeWise Accounting are here to help you. Please reply to this email or phone us on (02) 4225 0816 if you need any assistance. We will stay in touch with you with regular update emails, and while we’re limiting face to face appointments for the time being, we will be available for phone meetings or even a Skype/Zoom Meeting if required. We are here to help however we can.

The post Government Support For Individuals appeared first on BeWise Accounting & Wealth Solutions.

Our cloud systems mean you can always contact us if you need us

Good advice is needed now more than ever

BUSINESS AND TAX

INDIVIDUAL ASSISTANCE

Important – Review or update your enduring power of attorney (EPOA) and will now

Next steps

The post COVID-19 appeared first on BeWise Accounting & Wealth Solutions.

We’ve put together 4 articles full of ideas to help you grow your business.

The 4 key areas are:

1. Increase your customers
2. Find new markets – with existing products or services
3. Develop new products or services – to open new markets
4. Improve profit

Here’s the fourth area…

Improve Profit

AUTOMATE PROCESSES TO SAVE TIME

Look at current processes you could change to save you time or money. One way could be changing from manual systems to automatic ones to free up time for more important tasks.

LOWER ENERGY USE

Look at each area of your business separately and come up with ways to reduce energy use. For example, if you’re a supplier and you hold your inventory in a warehouse that’s busy 24 hours a day, lighting and heating may be major expenses. Can you switch to cheaper sources?

REDUCE OPERATING WASTE

Identify how to produce more efficiently to reduce left over materials, which will lower your costs of goods sold. For example, if you manage and own a large department store, are there ways you could reduce total staff hours to lower costs.

INVESTIGATE WAYS TO IMPROVE YOUR OUTPUT

Improve your output to deliver your products or services faster. Add staff, upgrade to the latest equipment, or change software, try anything to speed up production.

NEGOTIATE WAYS TO IMPROVE YOUR MARGIN

It sounds obvious but whichever way you choose to increase prices it all goes straight to your bottom line. Consider the impact on demand if you have price-sensitive customers. For example, you might be a goat farmer selling high quality meat, cheese and milk. Does your product have any leverage to negotiate a higher price?

IDENTIFY WHAT OVERHEADS YOU CAN LOWER

Audit all your expenses to see what can be lowered without affecting your business operation. Re-negotiate with suppliers and reassess any subscription services or set pricing plans.

BUILD A PROCESS TO COLLECT MONEY OWED TO YOU FASTER

Take a close look at your debtors to establish which ones need extra motivation to pay you sooner. Consider changing your policy towards new debtors by tightening payment terms or adding a discount for quick payers. Make sure you have internet banking as an option.

Contact us to book in for a 30 minute meeting to brainstorm the above ideas and create a tailored Action Plan to help you increase profits and the value of your business!

The post How to improve profits in 7 practical ways appeared first on BeWise Accounting & Wealth Solutions.

We’ve put together 4 articles full of ideas to help you grow your business.

The 4 key areas are:

1. Increase your customers
2. Find new markets – with existing products or services
3. Develop new products or services – to open new markets
4. Improve profit

Here’s the third area… How to open new markets with fresh new products or services

Develop new products or services

CONDUCT CUSTOMER RESEARCH TO IDENTIFY NEW IDEAS

Ask your customers about what new products or services they would like to see added to your range. Brainstorm ideas with your staff, along with which new markets to target. This article has some advice on how you can unlock innovative ideas.

CHECK FINANCIAL FEASIBILITY OR ANY NEW PRODUCT OR SERVICE

Calculate whether you can make a profit from your planned new product or service. Carry out some market research to be sure of demand. For example, if you’re a manufacturer of sports goods and you’ve created a prototype for a new style of cricket bat, get opinions from a whole range of cricketers, from kids up to professionals.

TEST NEW OFFERINGS WITH YOUR CUSTOMERS

Before introducing your new product or service to the market, make sure you test it first. Listen to consumer responses and take on board any advice before going to market.

PROTECT YOUR INTELLECTUAL PROPERTY

Once you’ve developed some intellectual property (IP), it’s vital you protect it. Have a look at the IP Australia website for detailed information on what you need to do to protect your business idea.

LICENCE OTHER PRODUCTS

Consider licencing another business’s products or services as a way to extend your product or service range. It’s especially effective if they’re complementary to your own offerings. Read our article about some other profitable ideas you can learn from larger companies.

LOOK TO JOINT VENTURE WITH OTHER BUSINESSES OFFERING DIFFERENT PRODUCTS

Keep an eye on other successful businesses within your industry, or those targeting markets that you’re interested in, and look at how to develop a strategic alliance.

IMPORT PRODUCTS UNAVAILABLE IN AUSTRALIA\

Search out products that aren’t available or are difficult to obtain in Australia, but will potentially open up new domestic markets.

Why not contact us to book in for a 30 minute meeting to brainstorm the above ideas and create a tailored Action Plan to help you unlock your innovative ideas – leading to more profits for you and increasing the value of your business!

The post How to open new markets with fresh new products appeared first on BeWise Accounting & Wealth Solutions.

We plan to send out to you 4 articles full of ideas to help you grow your business.

The 4 key areas are:

1. Increase your customers
2. Find new markets – with existing products or services
3. Develop new products or services – to open new markets
4. Improve profit

Here’s the second area…

How to find new markets

CREATE A VIDEO CHANNEL TO INCREASE YOUR PROFILE

If you want to get your goods or services out there in front of a worldwide audience, think about creating a YouTube channel for your business. This is a great way to demonstrate products or share tips with your customers. For example, if you have a background in carpentry and a small business that makes wooden furniture, display some of your products on YouTube to gain a following.

USE GOOGLE GLOBAL MARKET FINDER TO IDENTIFY CUSTOMERS IN SIMILAR MARKETS

Look for customers you’re interested in targeting in markets that are similar to yours. Google’s Global Market Finder generates a spreadsheet based on monthly keyword searches that ranks the opportunities of doing business in certain geographical locations.

USE FACEBOOK AND LINKEDIN TO GROW YOUR CONNECTIONS

Once you’ve connected with your customers on Facebook or LinkedIn, find people in their networks who are interested in your offerings. For example, if you’re starting up a small business making jewellery from your garage, a Facebook page showing your offerings is a logical and cheap place to start advertising. Find out about how to market on Facebook.

EXHIBIT AT TRADE EVENTS OR CONFERENCES

Build connections, demonstrate new products and develop stronger relationships with new markets by presenting your business at trade shows. See what trade events are in Australia over the coming year.

INVESTIGATE OPENING IN A NEW LOCATION

Research the feasibility of successfully opening a new store, office or branch. For example, if you already own a successful wholesale outlet on the western side of your city, think about the value of opening another on the east.

BID FOR GOVERNMENT CONTRACTS TO SECURE LONG TERM SALES

If your products or services are suitable for government agencies, departments or larger corporates that release tenders for work, you might be able to find a totally new market you hadn’t considered before. For example, if you ran an IT company that looks after the electronic data and security of small businesses, are there opportunities to tender for government work? Please contact us if you need assistance to bid for Government contracts.

INVESTIGATE WHOLESALING AND RETAILING

If you’re a wholesaler, consider opening a retail outlet. Or if you only sell through retail channels, investigate entering the wholesale industry. Take a look at https:///www.business.gov.au/planning/industry-information/retail-and-wholesale-trade-industry.

HIRE SALES REPS

Hire sales reps in other regions of Australia to help your business branch out into different markets. If they’re only on commission, it’s a results driven tactic. For example, if you have a growing business in Sydney that manufactures and leases vending machines, is it worth hiring some sales reps in other cities to broaden your potential client base.

EXPORT OUT OF AUSTRALIA

Develop an export plan to identify the feasibility of selling outside Australia. For example, you might cure meats and distribute them around Australia to various supermarkets. Have you considered exporting your cured meats to parts of Asia?

Why not contact us to book in for a meeting to brainstorm the above ideas and create a tailored Action Plan to help you increase your market share – leading to more profits for you and increasing the value of your business!

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