Dollars & Sense for Small Business

Annoucement: This blog has relocated

2008-05-18T11:21:00.000+10:00

We have a new look and location. Now you can read the Dollars & Sense blogs at Dollars & Sense.

Office 2007 Tips & Tricks

2008-04-20T18:42:00.003+10:00

Simple tasks can become very frustrating if you're not sure how to go about them. Sometimes you simply need to know how to fix your page numbering in Word or produce a particular chart in Excel.

Small business operators especially simply cannot afford to waste a single moment more on administrative tasks than necessary. For this reason, I have created a blog to handle queries and showcase tips, tricks and tutorials to save you time and stress at the computer.

Practical Computing lays everything out in a clear manner with regular video demonstrations and plenty of screenshots to accompany instructions.

Writing Off Bad Debts in MYOB

2008-04-18T02:08:00.004+10:00

The above screencast demonstrates how to write off bad debts in MYOB. Full instructions along with more screencast tutorials will be made available from our web site soon. Be sure to send in any requests!

Office Closed 6th - 13th April

2008-04-04T15:03:00.002+11:00

Please note that our office will be closed from Sunday 6 April until Sunday 13 April. Clients who wish to speak with Alan are welcome to try reaching him on his mobile phone.

If you don't get through (we are staying in an area with little reception) please leave a message on the mobile and Alan will call you back as soon as he can.

Alternatively, voice messages left on the office answering machine will be followed up on the 13th when we return. Thank you for your understanding.

2008 Next Big Thing Awards

2008-01-28T20:59:00.001+11:00

Applications are being sought nationwide from businesses and individuals who have designed new products with the potential to become the 'next big thing'.

The Next Big Thing Award, created by the Victorian Innovation Centre INNOVIC, is designed to celebrate and promote Australian innovative ideas.

Winners receive over $50 000 in cash and prizes plus media exposure. An exhibition of the 21 finalists' innovations also be held at the Melbourne Museum.

Applications close on 14 March 2008. For more information on eligibility and the application process, refer to the Next Big Thing Award website or phone INNOVIC on (03) 9650 4733.

December quarterly superannuation contributions due soon

2008-01-22T00:11:00.000+11:00

ATO Media Release 2008/05

The Tax Office today reminded employers that December quarterly superannuation contributions for their employees must be paid to a complying superannuation fund by Tuesday, 29 January 2008.

Tax Commissioner Michael D’Ascenzo said that since the 28 January deadline falls on a public holiday, contributions can be made without penalty until close of business on Tuesday, 29 January 2008.

“Even if you contribute more frequently than quarterly, you should pay all super guarantee contributions for the December quarter on or before the due date,” Mr D’Ascenzo said.

“If employers don’t make sufficient superannuation contributions by the deadline, they must lodge a superannuation guarantee charge statement and pay the super guarantee charge to the Tax Office by 28 February 2008.”

Employers unsure how to meet their super guarantee obligations can visit the Tax Office website at www.ato.gov.au/super or phone 13 10 20 for more information.

Company, Super and Trust Returns Due

2008-01-14T23:13:00.000+11:00

REMINDER:

If you are not using a registered tax agent to prepare and lodge for you, the due date for company, superanuation fund and trust income tax returns is January 15th, 2008.

Centrelink info for business

2008-01-12T17:38:00.000+11:00

As a business owner and/or employer, you should be aware of information available to you from Centrelink.

Without ever leaving your computer, you can discover a range of information on assistance, services and business opportunities available to you and download a number of business publications.

For more information check out the Centrelink Business Index.

Risk Management Guide for Small Business

2007-12-08T23:27:00.000+11:00

As a business owner you need to be aware of the risks (and not just financial ones) associated with your business. The NSW Department of State and Regional Development have made a free Risk Management Guide available.

The guide can help you identify risks to your business and meet legislative and regulatory requirements in the areas of:

- occupational health and safety
- fair trading
- contracts
- insurance

To read the guide online or download a free PDF version to your own computer, you can head directly to the Risk Management Guide at the NSW Small Business site by clicking here.

Super Contributions Due Soon

2007-10-26T17:22:00.000+10:00

REMINDER:

If your business employs staff, you will need to make your Quarter 1 superannuation guarantee contributions by 28 October 2007.

Tax Office Announces External Debt Collection Panel

2007-10-12T13:14:00.000+10:00

Source: ATO Media Release 2007/48

The Tax Office today announced the appointment of a panel of external collection agencies to assist with the collection of debt, including tax debts over two years old and employer superannuation guarantee charge debt.

Acting Tax Commissioner Jennie Granger said the appointments follow a successful 3 month trial conducted in 2006, which resulted in $21 million in outstanding debt being collected.

“We do understand there are situations when it can be difficult to pay an outstanding debt. What is really important is that people contact us as early as possible so we can agree on a suitable arrangement to get them back on track,” Ms Granger said.

“The panel will help us follow up more quickly and encourage people and businesses to pay their debts.

“Some of the debt to be referred for collection will be superannuation money owed to employees so will help protect retirement savings,” Ms Granger said.

The Tax Office was allocated an additional $42 million over four years in this year’s federal budget to establish and pay for the services of the panel, and expects to commence referring parcels of debt for collection activity towards the end of 2007.

The panel is required to adhere to strict privacy and professionalism guidelines and will have to report back to the Tax Office monthly on their progress and adherence to these guidelines. They will also need to meet all Commonwealth secrecy and privacy requirements.

“Our debt collection strategies, including the establishment of this panel are about fairness and creating a level playing field for everyone.

“I encourage anyone experiencing difficulties to contact us as soon as possible on 13 11 42 and we will work with them to clear any tax debt before it becomes unmanageable,” Ms Granger said.

Business Encouraged to Reassess Attitutes to Mature Workers

2007-10-05T10:57:00.000+10:00

Today sees the release of the Mature Age Employment Practical Guide, an online, one-stop resource for employing people over 45 in Australia.

The guide is designed to address the needs of small and medium-sized businesses. It includes information on how to find and keep experienced, older workers and what HR policies and practices employers need to implement to respond to the smaller, older workforce.

The message is, if you don't keep your older workers you're heading for trouble.

“The country can’t afford to retire its most experience workers. We simply do not have queues of similarly experienced workers waiting in the wings,” Minister Stone said today in a media release.

“As the population ages, and the generations following the baby boomers continue to shrink, Australian businesses need to reassess their attitudes to mature age workers. Successful businesses will be those who retain older workers.

According to Dr Stone, “Businesses must appreciate the importance and financial benefits of keeping or recruiting mature age staff to meet their skills needs."

Tax Help and Equine Influenza

2007-09-21T12:43:00.000+10:00

The Tax Office is offering assistance to businesses directly affected by equine influenza and the resulting quarantine measures.

Tax Commissioner Michael D’Ascenzo has reassured people affected that we will work with them during this difficult time to help them meet their tax obligations.

“We understand that equine influenza has directly affected the income of many people involved in the horse and related industries,” Mr D’Ascenzo said.

“Anyone who is having problems meeting their tax obligations should call us as soon as possible on 13 11 42 so we can make arrangements to suit their individual circumstances.

Your tax agent can also contact the ATO on your behalf.

Remember, even if you can’t pay the amount owning in your activity statement, it’s important to make every attempt to lodge it by the due date.

Tax Dobbers Turn on Bosses

2007-09-11T09:50:00.000+10:00

The Daily Telegraph yesterday reported that more than 120 people a day turned informant on their bosses, neighbours and even former lovers last financial year to accuse them of tax fraud through a confidential hotline.

Over the past three years a whopping 140,616 Australians called the Tax Evasion Hotline to accuse others of cheating on their tax. It seems the ATO are keen to follow up on these leads with more than $4.4 million in lost revenue already identified as a result of the information supplied in 2006-07.

Businesses failing to report cash income was the most common tax evasion practice followed by paying cash-in-hand wages.

Fax Spamming - Have Your Say

2007-09-07T12:08:00.000+10:00

We receive a fair amount of "junk mail" via our fax machine. Most of the time, the interuption is minimal and I give it little thought. However, it does interupt productivity, uses our print resources and ties up the fax machine... none of this leaves me with a positive impression of the sender.

How do you feel about commercial fax spam? Should the Government take action to reduce the volume of unsolicited commercial faxes?

The Business Consultation website is asking for businesses to provide comments on a consultation regarding unsolicited commercial fax messaging. The closing date for comments and submissions is 17 September 2007 and businesses are able to submit their answers online.

While you are at the website you can register your interest to be consulted on government policy or regulation affecting business and also view current and archived public consultations.

MYOB Professional Partner

2007-09-03T22:06:00.000+10:00

We are pleased to announce that Alan Lewis Accounting & Taxation now operates as an MYOB Professional Partner and Authorised Reseller.

As a Professional Partner we are better equipped to evaluate your specific software needs, supply and install MYOB, set up files and accounts and train clients in the use of the software.

Keep an eye on our site for product updates, tutorials and additional resources.

Business Name Checks Online

2007-08-13T01:23:00.000+10:00

Do you want to find more information on a registered business?

You can now search online using the NSW Office of Fair Trading's Business name details check. The search can provide a range of information including:

- business name and registration number
- registration date and status

- ABN
- business addresses, and
- nature of the business.

For more information and to use the search, visit the Office of Fair Trading website today.

August Lodgement Dates

2007-08-01T22:45:00.000+10:00

11 August:
Quarter 4 (April – June 2007) activity statements: final date for paper or ECI lodgment and payment.

14 August:
PAYG withholding payment summary annual report – final date for lodgement.

Due date for reporting departing Australia superannuation payment (DASP) data records for the 2006/07 year that form part of the PAYG withholding payment summary annual report.

21 August:
July 2007 monthly activity statements: final date for lodgment and payment.

Final date for monthly GST reporters to elect to report GST annually.

28 August:
Due date for lodgment of the Superannuation guarantee charge statement – quarterly and payment of the superannuation guarantee charge for quarter 4 (April/June 2007) if sufficient contributions were not paid on time.

31 August:
Reasonable benefits limits (RBL) reporting – due date for funds to correct any errors on previously lodged reasonable benefits limits reports.

MYOB Account Numbers

2007-07-29T17:12:00.000+10:00

Within each of the major account types (header or detail) there are a number of account types that may be nominated. The account number in MYOB is a four-digit number that is added to the prefix that identifies the type of
account it is.

The number you give an account will determine it's order and grouping in the financial statements. So what are the types of account and their prefix in MYOB?

1. Asset:
In the simplest of terms, assets are what is owned. Assets are resources controlled by the business from which future economic benefits are expected. Examples of assets include cash, accounts receivable, furnishings, vehicles and equipment. Assets will probably be grouped as current or non-current (but we'll get to that in another lesson).

2. Liability:
In everyday terms, this basically means what is owed. Liabilities are the future economic sacrifices that the business is obliged to make. Examples of liabilities include accounts payable, credit card debts and bank loans. As with assets, liabilities will also be grouped as being current or non-current in nature.

3. Equity:
Equity (frequently called owner's equity or proprietorship) is the owner's claim on total assets of the business. A simple way to look at equity is 'what the business owes to the owner.' Common equity accounts include capital, retained earnings and drawings.

4. Income:
Income (also called revenue) arises from the ordinary activity of the business. This usually comes from sales or services provided in the ordinary course of business.

5. Cost of Sales:
Cost of sales (commonly called COGS or Cost of Goods Sold) are the expenses to the business directly related to the goods being sold. As service businesses do not have inventory, they have no need for COGS accounts. Typical cost of sales accounts include Purchases and Freight Inwards. Cost of Sales are taken from Net Sales on the Profit & Loss in order to arrive at the gross profit figure.

6. Expense:
Expenses are assets consumed or services used in the process of generating revenue. Typical expenses might include things like rent, wages paid, office supplies, bank fees, advertising expenses and electricity. Expenses are taken from gross profit to arrive at net profit.

8. Other Income:
Other income is where you would put income received which is unusual or outside the ordinary revenue-generating activies of the business. Examples
might include interest received or the proceeds from disposal of a long-term asset.

9. Other Expense:
Other expenses is often used for out-of-the-ordinary expenses or those not related to the income producing activity of the business.

For more MYOB information, visit our MYOB Tips and Tutorials Page.

Disastrous Domain Names

2007-07-27T20:30:00.000+10:00

If you are planning on registering a domain name, it's so important to look at it closely... see it as others will.

What follows is a series of actual unfortunate business domains.

Looking for a pen? Look no further than Pen Island at
http://www.penisland.net/

If you’re looking for computer software, there’s always
http://www.ipanywhere.com/

Experts Exchange is located at.. wait for it...
http://www.expertsexchange.com/

The Mole Station Native Nursery, based in New South Wales has since removed their site at
www.molestationnursery.com

The First Cumming Methodist Church has their website at
http://www.cummingfirst.com/

Need a therapist? Try Therapist Finder at
http://www.therapistfinder.com/

A site called ‘Who Represents' where you can find the name of the agent that represents a celebrity has the domain name
http://www.whorepresents.com/

Locate speedy art designers at
http://www.speedofart.com/

Then of course, there’s the Italian Power Generator company…
http://www.powergenitalia.com/

I can't help wondering, why didn't somebody tell them?

REMINDER: Quarterly BAS Due Soon

2007-07-21T23:07:00.000+10:00

Remember to lodge you fourth quarter Business Activity Statement (BAS) with the Tax Office by the 28th July.

If your business employs staff, you will need to make your quarter 4 superannuation guarantee contributions by 28 July also.

MYOB and Windows Vista

2007-07-14T20:54:00.000+10:00

It seems the change to Windows Vista is proving a headache for a number of people using older versions of MYOB.

It would appear MYOB Australia will only be supporting users of MYOB Accounting and AccountingPlus Version 16 or Premier version 10.

For details of Vista supported products and links to any upgrade downloads, see our newly uploaded page MYOB and Windows Vista.

MYOB: Save Time with Batch Reporting

2007-07-12T20:42:00.000+10:00

Do you find you are printing the same reports each time? You can save time by printing all of your nominated reports at the same and with just one click of the print button.

How do you do that? It is called batch reporting and setting it up is simple.

Step 1:
From the Reports drop-down menu at the top of the screen, select Report Batches.

Step 2:

Click on the New button. In the Batch Name field, enter a name for the batch.
In the example I have called the new batch "Usual Monthly Reports."

Step 3:
Now you just need to put a click next to each of the reports you want to include and select OK.

As you can see above, I have chosen a Trial Balance, Balance Sheet and Profit & Loss.

HINT: You can add or remove reports from batches at any time by selecting the batch from the list and clicking on the Edit button.

Printing a batch for a selected period

Step 1:
Printing a batch is quick and easy. Firstly, go to Reports > Report Batches.

Step 2:
In the period field, select the period to date that you want to print the batch for. Highlight the name of the batch you wish to print and click on the Print button.

As you can see, using batch reports is a real time-saver and easily customised to suit your own needs.

Note: This tip applies to MYOB Accounting and MYOB Accounting Plus Version 10 or later.

For more MYOB hints, visit our Tips and Tutorials page.

Are you a Guerrilla!?

2007-07-11T21:10:00.000+10:00

by Stuart Ayling of Marketing Nous

On numerous occasions I've heard clients describe their marketing by saying, "I do guerrilla marketing". What they often mean is - I'm not big so I don't need to plan, I'll just think of things as I need to.

In fact, the term 'Guerrilla Marketing' is the title of a book published in 1984 by Jay Conrad Levinson...and his concept was anything BUT reactive.

The book explained Jay's three secrets for great marketing results:

1) Be committed to your marketing program.

2) Think of the program as an investment.

3) Make sure your program is consistent.

"But where do I start?" I hear you ask.

To succeed, make sure you are on track with the right plan of attack. It doesn't matter how small (or large) your marketing budget is - you want to make the most of it.

Then be consistent and enthusiastic with implementing your chosen marketing activities. Customers will notice and you will benefit.

Remember, Guerrilla Marketing is more about investing your time and effort than investing your hard-earned money. So be prepared to do some legwork and watch the benefits unfold!

For more guerrilla tips see Jay Conrad Levinson's web site at http://www.gmarketing.com/.

MYOB How-to: Set up BAS Information for GST

2007-07-09T20:35:00.000+10:00

In addition to the GST, a business will report other obligations such as its income tax instalment, Fringe Benefits Tax instalment, PAYG Withholdings, Wine Equalisation Tax and Luxury Car Tax.

The BAS Information window is used to set up the main reporting options for GST.

Step 1:
From the top menu select Setup and scroll down to click Company Information.

Step 2:

Click on the BAS Info button at the bottom of the window. (Note: You can also change the existing
business address or contact details from the current area).

Step 3:

There are a number of options in the Bas Information set up and these are selected using the drop-down
arrows at the end of each selection field.

In the Goods and Services Tax section, select the reporting frequency, the accounting basis (cash or accrual), the calculation
method and the GST reporting option (1, 2 or 3).

Step 4 :
Now do the same in the PAYG Instalments and PAYG Witholdings section to select the options which apply to you.

Needless to say, it is important the BAS information and reporting options are set correctly and kept up to date if you are relying on them to prepare figures for the ATO.

For more MYOB how-to's and tips, visit our Tips and Tutorial Page.

MYOB How To: Add Users with Passwords

2007-07-09T11:43:00.000+10:00

MYOB allows you to add users with passwords and set the level of access the new users have.

This can be quite useful if you have staff members who enter invoices but do not wish to permit them access to alter
banking functions or other sensitive data.

Step 1:
Open preferences by clicking the Setup pull down menu at the top of the screen and choosing Preferences.

Step 2:
Click on the tab for Security.

Step 3:
To add users and set passwords, click on the Password button at the bottom left of the security window as shown below.

Only the person logged in as the Administrator can add or edit users and their passwords.

Step 4:
To add a user click on the New button. The program will prompt you for the
new user details.

Step 5:
Enter a User ID and tab to the password field.
Type in a password and TAB.
Type in the password again to confirm.
Click on the OK button.

Step 6:
To stop a user using a particular function, make sure that user is selected on the left-hand side of the User Access window.

Click in the column titled "Not Allowed" against the functions you want to bar.

HINT: Clicking a function heading selects all of the functions under that heading.

In the example above, I have restrict access to all of the banking functions for the user CHRISTIE.

Click on the OK button when you are done and that's all there is to it.

Quick Biz Tips - Hours of Operation

2007-07-08T12:56:00.000+10:00

Hours of Operation

Give serious thought to your hours of operation.

Most businesses operate Monday - Friday from nine to five. The problem with this is many of your customers are working these same hours. They are unable to buy from you at these times.

Make doing business with you convenient for your customers.

MYOB How To: Delete Unnecessary Tax Codes

2007-07-07T11:50:00.000+10:00

When you first install MYOB, the program is already set up with several tax codes.

Some of these may not be necessary for your business. You can delete tax codes you do not need and "tidy up" the tax list if this makes data entry a little easier for you.

Here is how to do it:

Step 1:
Select the Lists pull own menu from the top of the screen and scroll down to choose Tax Codes.

Step 2:
Click on the detail arrow next to the code you want to delete.
In this example I will be deleting the Luxury Car Tax code.

Step 3:
Now simply select the Edit pull-down menu and click on Delete Tax Code as shown below.

Click OK to exit the Tax Code Information window and you're done.

HINT: A consolidated tax code is used to group together more than one code.
A consolidated code will be identified in the Type column of the Tax Code List. You will find that a consolidated tax code must be deleted before the individual codes can be deleted.

Watch Your Customers Grow - Part 2

2007-07-06T23:13:00.000+10:00

by Stuart Ayling of Marketing Nous

Now that we're thinking on the same wave-length you will see there are many places where you can nurture your customers.
Try it:
- On your web site.
- On your packaging.
- In your communications.
- During the sale process.
- When you make deliveries.
- When you are running special events.
- When your customers come to visit you at your store, office or facilities.

Just like raising children, when you look after your customers - with their best interests at heart - they will recognise the integrity of your actions and reward you in many ways. (Although children are sometimes slow to respond!)

You can expect to get:

Greater loyalty - within reason. You always need to offer value.
Higher average sales - as your customer will be more likely to purchase other items.
Higher profit margins - within reason. Loyal customers who appreciate that you do look after them are more willing to pay a premium for buying from you. At least they will be less likely to shop around purely for the lowest price.
More cost effective marketing. You will attract more customers for your marketing dollar, and achieve higher value sales.
Lower customer churn rates. Why would your customers buy elsewhere when they recognise the value you provide? (Competitively priced for your offering, of course)
A deeper, more meaningful relationship with your customers - enabling you to weather the inevitable problems that arise. You must earn the trust of your customers.
A more secure future for your business - which means less worry for you and your staff.

Have a good look around you. How many businesses do you see nurturing their customers? See the opportunity for you?

Watch Your Customers Grow - Part 1

2007-07-05T22:48:00.000+10:00

by Stuart Ayling of Marketing Nous

Nurturing your customers and helping them to develop into better people (who use more of what you sell) is often like raising children - but without the teenage worries! Customers need help to know how best to use your products and services. Look out for their needs and you will be rewarded in multiples.

I can hear some of you thinking "Me! Nurture customers! How can I do that?" The good news is that it's not too hard. Just give yourself some time to get into a few good habits and…before you know it...you'll find yourself wanting the best for your customers every day.

Nurturing activities come in many shapes and sizes. Try some of these for fit:

Make it super easy for your customers to select which item they need from your range.

Give information and tips to put them on the right track.

Give your customers a guarantee of quality. If you don't think you can do this have a serious think about how good your products are. Did you know that even for those companies offering a 100% money back guarantee, a very small percentage of customers ever use it. It's the perception that counts!

Have a returns policy for your goods that is easy to follow and accessible to your customers.

Make sure your staff have the 'right' attitude. Keep them up to date with regular training that is good for them and for you.

Communicate with your customers regularly on topics that are timely and of value to them. Don't just call them when you want something done - like a sale or special offer to fill your slow periods. Email is often the tool of choice these days as it is convenient, ubiquitous, cost-effective and potentially interactive.

Surprise them. Give them a bonus when appropriate. Give them something special to tell their friends and neighbours about. It might be a bonus product, special offer, upgraded delivery or service, fast-response time etc

Make customers feel at ease in your store, office or service area. Are they comfortable? Is it intimidating? Consider the effect of furnishings, décor/fittings, layout or location. Find out what works best.

Continued in Part 2

Quick Biz Tips - Hiring the Right Staff

2007-07-04T09:47:00.000+10:00

Hiring the right staff

Technical skills are great but when hiring new staff it is just as important (if not, more so) to consider personality, enthusiasm, shared values and the ability to work well with others. You want the right 'fit' for your individual business.

Remember, most skills can be learned or developed. It is a lot harder to alter personality types or bad attitudes.

More Help for Business Thanks to Online Tools

2007-07-02T00:38:00.000+10:00

The Tax Office has released three new web-based tools to help employers understand and meet their tax and super obligations.

Tax Commissioner Michael D’Ascenzo said that a priority for the Tax Office was to help business people meet their obligations easily and cheaply.

“Different tax and super obligations apply to workers depending on whether they are an employee or an independent contractor.

“The free interactive tools we have developed for business provide an easy way for employers to determine and calculate their obligations,” Mr D’Ascenzo said.
The tools are:

an employee/contractor decision tool, to help people work out whether their new or existing workers are contractors or employees for tax and super purposes
a superannuation guarantee eligibility decision tool, to help employers work out if they have an obligation to make super contributions for their workers, and
a superannuation guarantee contributions calculator that calculates how much super employers should be contributing for their eligible workers.

Each tool takes less than 15 minutes and guides people through a series of questions. Employers will receive an online report at the end of each session.

People who are not sure whether their workers are employees or contractors should use the employee/contractor decision tool first, before using the super tools.

The tools are available on the Tax Office website at no cost, 24 hours a day, 7 days a week.

To use web-based decision tools and calculators, visit http://www.ato.gov.au/ and select: For Business – Employer essentials – Tax rates, calculators and tools – Other calculators and tools.

New personal income thresholds to apply from 1 July 2007

2007-07-02T00:06:00.000+10:00

The Tax Office today reminded employers to apply the new personal income thresholds to all payments they make to their employees from 1 July 2007.

The new rates have been introduced following changes to the income tax thresholds announced in the May Federal Budget.
Employers should be aware that changes to superannuation from 1 July means there are also three new withholding schedules (tax tables) for payments made to superannuation funds.

Deputy Commissioner Erin Holland said the new weekly and fortnightly tax tables have been mailed to all employers in the last fortnight.

“The new rates apply to all payments made on or after 1 July even if some of the payment relates to work performed before this date.”

These new weekly and fortnightly tax tables are also available from most newsagents, the Tax Office website http://www.ato.gov.au/ or by calling 13 72 26.

Where Great Marketing Starts

2007-07-01T21:57:00.000+10:00

by Stuart Ayling of Marketing Nous

"I was thinking about advertising in this paper."
"I'm just about to print this brochure, can you give me your comments."
"We've done direct mail before, but we weren't happy with the response."

As a consultant I'm often faced with comments such as these. But it's vitally important to recognise that marketing is a process. It's not just an activity or two.

Most businesses that have marketing problems haven't fully considered their marketing process. As a result they focus on a short-list of marketing tactics that are often being used for the wrong reasons.

Great marketing starts at the beginning. And the beginning is the same as the end - your client.

Marketing is the process that attracts new clients, manages the process of client satisfaction, and keeps those clients coming back (or referring others to you). So the focus of great marketing is on the client, not just on the marketing tactic.

This means that to develop more effective marketing tactics you need to think more closely about your clients (or prospects). What should you think about? Try something along the lines of:

What are their real problems?
Who would they normally turn to for help?
Why would they use your type of services?
Where can you find them?
How can you get your message to them?
How can you help them, and in turn get them to recognise your business?
What concerns would they have about using services like yours?

The answers to these questions will help guide you to a sensible choice of marketing tactics, and give you a better idea of what you need to include in your marketing messages.

Quite often simple marketing can be very effective. For example, one of my clients had been advertising in a trade journal for around 12 months. Over that time they had zero response from their ad. Not one call. Of course prospects may have read the ad's, but there were no leads generated.

As part of a progressive marketing makeover for that client I designed another type of ad. It was very different from the previous one, and very different from competitors' advertisements. But it was very simple. It focused on the prospects needs.

From the very next issue of that same journal my client started receiving leads from the ad. They were happy. I was happy. They had improved their results.

Great marketing starts with your client. Without a doubt.

Quick Biz Tips - Know Your Competition

2007-07-01T19:44:00.000+10:00

Know your competition

Don't be in the dark about what the opposition is doing. I can assure you that your customer's will know!

Visit their business, read their brochures, check out their website, get on their mailing list and become familiar with their products. Why not even become a customer and make a purchase from them?

You need to know how you are different to them in order to tell your customers about it.

MYOB End of Financial Year Guide 2007

2007-07-01T03:26:00.000+10:00

I've just uploaded the MYOB End of Financial Year Guide for 2007 to our server.

You can download the PDF at directly from our site (750 KB so give it a moment) or right click the image to the left and select "save target as".

If you need any help rolling over the financial year, feel free to send us an email or give our office a call.

July Lodgement Dates

2007-07-01T01:51:00.000+10:00

14 July:

PAYG withholding payers must issue payment summaries to payees (ie employees and other workers).

Reasonable benefit limits (RBL) reporting – all RBL reportable benefits paid in June 2007 must be reported to the Tax Office on or before this date.

Superannuation benefits paid up until 30 June 2007 are still required to be reported for RBL purposes. The final reporting date for funds that are up to date with their reporting obligations should be 14 July 2007.

21 July:

June 2007 monthly activity statements: final date for lodgment and payment.

Quarter 4 (April – June 2007) activity statements containing a monthly GST obligation: final date for lodgment and payment. To ensure you receive the correct amount of credit in your income tax assessment, finalise all your PAYG instalments before you lodge your tax return.

Quarter 4 (April – June 2007) consolidated instalment activity statements: final date for lodgment and payment by a head company of a consolidated group.

28 July:

Quarter 4 (April – June 2007) activity statements: final date for lodgment and payment. To ensure you receive the correct amount of credit in your income tax assessment, finalise all your PAYG instalments before you lodge your tax return.

Quarter 4 (April – June 2007) instalment notices – forms R and T. Final date for payment and, if varying instalment amount, lodgment (two-instalment payers are also required to pay 25% of their PAYG instalment liabilities). To ensure you receive the correct amount of credit in your income tax assessment, finalise all your PAYG instalments before you lodge your tax return

Quarter 4 (April – June 2007) instalment notices – forms S and T. Final date for payment and, if varying instalment amount, lodgment (two-instalment payers are also required to pay 25% of their PAYG instalment liabilities).

30 July:

Superannuation guarantee contributions for quarter 4 2006–07(1 April – 30 June) are to be made to the fund by this date.

9 Ways to Keep Clients Coming Back for More #9

2007-07-01T01:40:00.001+10:00

by Stuart Ayling of Marketing Nous

9) Send reminders.

Many businesses have the opportunity to offer ongoing services for previous clients. Send a reminder about servicing, maintenance, periodic reviews, or changes to relevant regulatory requirements.

Related posts: Tip #1, Tip #2, Tip #3, Tip #4, Tip #5, Tip #6, Tip #7, Tip #8, Tip #9.

9 Ways to Keep Clients Coming Back for More #8

2007-07-01T01:38:00.000+10:00

by Stuart Ayling of Marketing Nous

8) Promote your business.

Demonstrate the value you can provide. If you have recently written a useful report, or presented a topic at a conference, or issued a press release, or conducted some research, or completed an interesting project, tell your clients about it. Don't keep your hard work a secret.

Related posts: Tip #1, Tip #2, Tip #3, Tip #4, Tip #5, Tip #6, Tip #7, Tip #8, Tip #9.

9 Ways to Keep Clients Coming Back for More #7

2007-07-01T01:37:00.001+10:00

by Stuart Ayling of Marketing Nous

7) Ring them up.

Where possible get on the phone to previous clients and have a chat. Make it brief but meaningful. Keep posted on their current projects and priorities. Seek out ways you can help.

Related posts: Tip #1, Tip #2, Tip #3, Tip #4, Tip #5, Tip #6, Tip #7, Tip #8, Tip #9.

9 Ways to Keep Clients Coming Back for More #6

2007-07-01T01:35:00.001+10:00

by Stuart Ayling of Marketing Nous

6) Write a note.

Get a pen and write a personal message. This could be triggered by seasonal activities, birthdays, business events, or personal circumstances. Let your clients know you are still thinking of them.

Related posts: Tip #1, Tip #2, Tip #3, Tip #4, Tip #5, Tip #6, Tip #7, Tip #8, Tip #9.

9 Ways to Keep Clients Coming Back for More #5

2007-07-01T01:33:00.000+10:00

by Stuart Ayling of Marketing Nous

5) Run special events.

Offer a free (or low cost) seminar to your clients on current issues. Invite complementary businesses, local business people, or celebrities to present new ideas. Use breakfast meetings, lunchtime executive briefings, or evening functions. The key here is to add value for your clients, outside of their usual dealings with you.

Related posts: Tip #1, Tip #2, Tip #3, Tip #4, Tip #5, Tip #6, Tip #7, Tip #8, Tip #9.

9 Ways to Keep Clients Coming Back for More #4

2007-07-01T01:31:00.000+10:00

by Stuart Ayling of Marketing Nous

4) Make special offers.

Find ways to encourage previous clients to buy from you. Examples may be: package offers; time sensitive deals; introducing new services; pre-releasing information or products to current clients before the general public.

Related posts: Tip #1, Tip #2, Tip #3, Tip #4, Tip #5, Tip #6, Tip #7, Tip #8, Tip #9.

9 Ways to Keep Clients Coming Back for More #3

2007-07-01T01:29:00.000+10:00

by Stuart Ayling of Marketing Nous

3) Use direct mail.

This is your pipeline to future sales. Create regular opportunities to communicate directly with your previous clients, especially if your service has a long sales cycle. Keep in touch between purchase decisions.

Related posts: Tip #1, Tip #2, Tip #3, Tip #4, Tip #5, Tip #6, Tip #7, Tip #8, Tip #9.

9 Ways to Keep Clients Coming Back for More #2

2007-07-01T01:27:00.000+10:00

by Stuart Ayling of Marketing Nous

2) Maintain your database.

This can be as simple or complex as you like. Just make sure it meets the needs of your business. You must have suitable contact details, and preferably some measure of sales value. For example, I use email extensively with my clients, so having current email addresses is paramount. But I have clients who must use regular postal mail to communicate with their clients, as their clients do not widely use email. So postal address details are critical in their situation.

Related posts: Tip #1, Tip #2, Tip #3, Tip #4, Tip #5, Tip #6, Tip #7, Tip #8, Tip #9.

9 Ways to Keep Clients Coming Back for More #1

2007-07-01T01:23:00.000+10:00

by Stuart Ayling of Marketing Nous

A lot of effort is put into getting new clients. We all know our client base will change. Previous clients can move to a new area, sell their business, close down, or change their priorities. So finding new business is always important - but so is keeping your previous clients. Here are nine ways to keep previous clients coming back for more!

1) Provide exceptional service.

Sounds obvious, but is very hard to do consistently. If clients believe they can't do better elsewhere, they won't succumb to the temptation of trying another provider.

Related posts: Tip #1, Tip #2, Tip #3, Tip #4, Tip #5, Tip #6, Tip #7, Tip #8, Tip #9.

8 Mistakes to Avoid when Naming a New Business #8

2007-06-25T18:14:00.000+10:00

Article by Phillip Davis. Reprinted with permission.

Mistake 8: Sit On It. (When in doubt, make no change at all)

Many business owners know they have a problem with their name and just hope it will somehow magically resolve itself. The original name for one of my clients was "Portables," which reminded some people of the outdoor restrooms or the portable classrooms - neither one a good association. This added to the confusion when phone operators tried to explain their new concept of moving and storage. After some careful tweaking, we came up with the name PODS, an acronym for Portable On Demand Storage. The rest is quickly becoming history as they expand both nationally and internationally. Peter Warhust, President and one of the original founders states, "For the record, changing our name to PODS was one of the best moves we ever made."

Exercise Experience, a former Florida-based company, was frequently confused with a health club. In reality, they sold very high-end fitness equipment. This brings up a very key point - it's better to have a name that gives no impression than a name that gives a wrong impression. Much of the ad budget we spent on Exercise Experience was used to clarify that they sold fitness equipment. This was valuable airtime that could have been put to better use selling the equipment rather than explaining the business. Ultimately, the company folded. It's not to say it was solely because of the name, but I believe it was a factor.

Mike Harper of Huntington Beach, CA, bought a thirty-year-old janitorial and building maintenance company named Regency. We both agreed it sounded more like a downtown movie theatre than a progressive facilities management firm. After a thorough naming search, we developed the name Spruce Facilities Management. Spruce not only conveyed the environmentally friendly image of a spruce tree (something important to the client), it also meant, "to clean up." The new tag line fell right in place Spruce "The Everclean Company."

It's only a matter of time before Southwest Airlines and Burlington Coat Factory and others who have successfully outgrown their original markets begin to question their positioning. Much like 3M and KFC, they may need to make a change to keep pace with their growth and image.
In the fever to start your new business or expand a current one, take time to think through some of these issues. According to the late Henry Ford, "Thinking is the hardest work there is, which is probably the reason why so few engage in it." Albert Einstein took it one step further claiming, "Imagination is more important than knowledge." By tapping into your creativity and avoiding these potential pitfalls, you'll be able to create a name that works both short and long term ï¿½ one that allows for future growth. Like the original cornerstone of a building, it will support upward expansion as your company reaches new heights.

About the author: Phil Davis President Tungsten Brilliant Brand Marketing Phil’s life goal of “creating environments where people thrive” reflects his desire to assist in personal, professional and business growth. Phil founded and ran a full service ad agency for over 17 years and now works full time as a business naming and branding consultant. Phil resides with wife Michelle and four energetic offspring outside Asheville, North Carolina Website: http://puretungsten.com/ Email: Phil@PureTungsten.com

Related Posts:
Mistake #1, Mistake #2, Mistake #3, Mistake #4, Mistake #5, Mistake #6, Mistake #7, Mistake #8.

8 Mistakes to Avoid when Naming a New Business #7

2007-06-25T18:10:00.000+10:00

Article by Phillip Davis. Reprinted with permission.

Mistake 7: The Campbell's Approach (Using alphabet soup to name your firm)

This is a trend that is thankfully wearing off. Driven by the need for a matching domain name, many companies have resorted to awkwardly constructed or purposefully misspelled names. The results are company names that sound more like prescription drugs than real life businesses. Mistake 2 sometimes gets combined with this one and results in a name like KwaliTronix (or worse - mistakes 2, 4 ... 7, resulting in KwalTronixUSA). It's amazing how good some names begin to sound after searching for available domain names all night. But resist the urge. Avoid using a "K" in place of a "Q" or a "Ph" in place of an "F." This makes spelling the name and locating you on the Internet all that much harder.

It's not that coined or invented names cannot work; they often do. Take for example, Xerox or Kodak. But keep it mind, names like these have no intrinsic or linguistic meaning, so they rely heavily on advertising ï¿½ and that gets expensive. Many of the companies that use this approach were either first in category or had large marketing budgets. Verizon spent millions on their rebranding effort. So did Accenture. So check your pocketbook before you check into these types of names.

8 Mistakes to Avoid When Naming a New Business #6

2007-06-25T17:33:00.000+10:00

Article by Phillip Davis. Reprinted with permission.

Mistake 6: Hide the Meaning (Make it so obscure, the customer will never know!)

It's great for a name to have a special meaning or significance. It sets up a story that can be used to tell the company message. But if the reference is too obscure and too hard to spell and pronounce, you may never have the opportunity to speak to that customer. They will simply pass you by as irrelevant. So resist the urge to name your company after the mythical Greek god of fast service or the Latin phrase for "We're number one!" If a name has a natural, intuitive sound and a special meaning, it can work. If it's too complex and puzzling, it will remain a mystery to your customers. This is especially true if you are reaching out to a mass audience.
I pushed the envelope a little on this one myself, naming my branding firm Tungsten, after the metal that Thomas Edison used to create brilliant light. However, my clientele consists of knowledgeable professionals who appreciate a good metaphor and expect a branding firm to have a story behind its name. It's also a way to differentiate my services (illuminated, bright, brilliant). So while it works for a branding firm, it would not do well as an ice cream parlor.

8 Mistakes to Avoid When Naming a New Business #5

2007-06-25T17:26:00.000+10:00

Article by Phillip Davis. Reprinted with permission.

Mistake 5: Cliche' You Say? (A good name is worth a thousand words)

Once past the literal, descriptive stage, the thought process usually turns to metaphors. These can be great if they are not overly used to the point of trite. Since many companies think of themselves as the top in their industry, the world is full of names like Summit, Apex, Pinnacle, Peak, etc. While there is nothing inherently wrong with these names, they are just overworked. Look for combinations of positive words and metaphors and you will be much better served. A good example is the Fortune 1000 data storage company Iron Mountain, which conveys strength and security without sounding commonplace.

Related Posts:
Mistake #1, Mistake #2, Mistake #3, Mistake #4, Mistake #5, Mistake #6, Mistake #7, Mistake #8.

8 Mistakes to Avoid When Naming a New Business #4

2007-06-25T17:14:00.000+10:00

Article by Phillip Davis. Reprinted with permission.

Mistake 4: The Atlas Approach (Using a map to name your company)

In the zeal to start a new company, many businesses choose to use their city, state or region as part of their name. While this may actually help in the beginning, it often becomes a hindrance as a company grows. One client came to me with complaints he was serving more of the market than his name implied. He had aptly called it St. Pete Plumbing since he hailed from St. Petersburg, Florida. But yellow page shoppers assumed that was also his entire service area. With a little creative tinkering we changed the image of St. Pete from a city to the image of St. Pete himself, complete with wings and a plumber's wrench. The new tag line? "We work miracles!"
Other companies have struggled with the same issue. Minnesota Manufacturing and Mining was growing beyond their industry and their state. To avoid limiting their growth they became 3M, a company now known for innovation. Kentucky Fried Chicken is now KFC, de-emphasizing the regional nature of the original name. Both of these companies made strategic moves to avoid stifling their growth. Learn from them and you can avoid this potential bottleneck.

8 Mistakes to Avoid When Naming a New Business #3

2007-06-25T17:05:00.000+10:00

Article by Phillip Davis. Reprinted with permission.

Mistake 3: Where's Waldo? (Names so plain they'll never stand out in a crowd)

The first company in a category can get away with this one. Hence, you have General Motors, General Electric, etc. But once you have competition, it requires differentiation. Imagine if Yahoo! had come out as GeneralInternetDirectory.com? It would be much more descriptive, but hardly memorable. And with the onslaught of new media and advertising channels, it's more important than ever to carve out your niche by displaying your uniqueness. Nothing does that better than a well-conceived name.

Related Posts:
Mistake #1, Mistake #2, Mistake #3, Mistake #4, Mistake #5, Mistake #6, Mistake #7, Mistake #8.

8 Mistakes to Avoid When Naming a New Business #2

2007-06-25T17:00:00.000+10:00

Article by Phillip Davis. Reprinted with permission.

Mistake 2: The Train Wreck (Taking two words and colliding them head on)

When forced to come up with a creative name, many aspiring entrepreneurs will simply take part of an adjective and weld it onto a noun. The results are names that have a certain twisted rationale to them, but look and sound awful. Someone starting a high-end service franchise then becomes QualiServe. It's a bit like mixing chocolate syrup with ketchup - nothing wrong with either, but they just don't go together. Other common truncations include Ameri, Tech, Corp, Tron, etc. The problem with this approach is that it's simply forced ï¿½ and it sounds that way.

8 Mistakes to Avoid When Naming a New Business #1

2007-06-25T16:45:00.000+10:00

Article by Phillip Davis. Reprinted with permission.

Naming a business is like laying the cornerstone of a building. Once it's in place, the entire foundation and structure is aligned to that original stone. If it's off, the rest of the building is off, and the misalignment becomes amplified. So if you have that gnawing sense that choosing a name for your new business is vitally important - you're right. With 18 years in the naming and branding business, I've witnessed the good, the bad, and the really bad. Here's how you can avoid the worst of the mistakes and get off to a good start.

Mistake 1: The Committee (Getting all your clients, employees and family members involved)

We live in a democratic society and it seems like the right thing to do - involving everyone in an important decision. This approach, however, presents a few problems. The first and most obvious fact is that you will end up choosing only one name - so you risk alienating the very people you are trying to involve. Second, you often end up with a consensus decision, resulting in a very safe and very vanilla name. A better method is to involve only the key decision makers, the fewer the better, and select only the people you feel have the company's best interests at heart. The need for personal recognition can skew results - so you are best served by those who can park their egos at the door. Also, make sure you have some right brain types in the mix. Too many left brains and the name often ends up too literal and descriptive.

Related Posts:
Mistake #1, Mistake #2, Mistake #3, Mistake #4, Mistake #5, Mistake #6, Mistake #7, Mistake #8.

Terms of endearment # 5

2007-06-22T20:16:00.000+10:00

PAYG Withholding: Pay As You Go Withholding is what was once called Group Tax and is the amount that must be withheld from employee's wages or salaries and sent to the ATO via the BAS.

At the end of the financial year what were once called Group Certificates have now been replaced by PAYG Payment Summaries. Each employee's gross income, and the amount withheld in tax, is recorded along with other information such as allowances, Reportable FBT amounts and Lump Sum Payments.

PAYG Instalments: Pay As You Go Instalments are amounts of tax payable for individuals who are not on wages or salaries and for companies or superannuation funds. It allows payment of tax ahead of time to be credited on a person or entity's tax return.

MYOB Tip: Tracking More Than Salesperson Data

2007-06-14T11:19:00.000+10:00

The majority of small business owners do not need nor use the Salesperson field to track employee sales. Did you know you can use this feature to track all kinds of other useful information such as which methods of advertising are paying off?

Example: Assume I want to track my marketing efforts. I use the Yellow pages, newspaper advertisements and my website for promotion. To do this, I would create an employee card for each item I want to track. I simply go to 'lists' in the top menu and scroll down to 'cards.' Click the employee tab and "add new."

You can see above I have added a cards for Newspaper Ad, Website and Yellow Pages. When you create a sale, simply use the salesperson field to begin tracking. In my example, I am tracking marketing. If my buyer heard about my products from the Yellow Pages, I would enter this into the salesperson field as shown below.

Now I can generate reports such as Analyze Sales [Salesperson] to see information at a glance on the new data I am collecting.

This is a handy little feature and can easily be adapted to track information of interest to you and your business.

Possibilities include easy monitoring of:

Referrers
Payment methods
Preferred appointment times
Geographic location of customers

If you are not tracking the sales prowess of your employees, it makes sense to put this feature to good use elsewhere.

If you would like to see more MYOB tips and tricks in the blog, please leave your feedback in the comments field or contact me at christie@lewistaxation.com.au.

Your thoughts and suggestions are always very welcome.

Changes to Super for Employers

2007-06-14T10:16:00.000+10:00

From 1 July 2007:

you must give your employees' tax file numbers to their super fund when you are given a Tax File Number (TFN) Declaration.

you will be bale to claim a full income tax deduction for all super contributions you make on behalf of your employees provided certain conditions are met, and

'eligible termination payments' will become 'employment termination payments' and can no longer be rolled over into super funds.

Other new rules also apply.

Visit www.ato.gov.au/bettersuper or give us a call to find out more.

Source: Activity Statement Update - Quarter 4 2006-07

Tax Concessions for Small Business

2007-06-14T10:00:00.000+10:00

From 1 July 2007, small businesses with turnover of less than $2 million a year will be eligible for a range of tax concessions under the Government's proposed changes to the law. Small businesses will also be able to pick and choose which tax concessions best suit their business.

It's important to find out more about the new tax concessions now if you are currently registered for GST because the proposed changes may affect the way you report and account for GST early in the 2007-08 income year.

Visit www.ato.gov.au/SBconcessions or give us a call to find out more.

Source: Activity Statement Update - Quarter 4 2006-07

Terms of endearment # 4

2007-06-13T23:17:00.000+10:00

Something that often causes confusion with taxpayers are the accounts that the ATO maintain in each taxpayer's name. There are sometimes more than two, but for the moment we will cover the two most common.

Integrated Client Account (ICA): This account is active if you receive a BAS or IAS and is a kind of dump account for all the obligations that you have in regard to your BAS. If you are registered for GST, PAYG Withholding and are asked to pay PAYG instalments, then all three components are debited to this account and your payments are credited against them.

Taxation Account: This account is active if you have ever lodged a tax return in Australia. It holds each year's income tax result (whether refund or payment) and credits any payments made to clear outstanding amounts. If you have paid PAYG instalments, these are credited across at the same time as lodgement.

What catches a lot of people is why they are having to pay two different accounts. If you have not made all of the payments to the ICA account and part of your obligation was PAYG Instalments, the ATO will still credit the instalments to the Taxation Account despite you not paying them. The result of this is that you still need to pay the ICA account. If there is still an amount payable even after the PAYG Instalments are credited then that residual amount will be payable on the Taxation Account.

If there is a credit in either the Taxation Account or the ICA, the ATO will transfer any credit against any existing payment liability.

And remember, if you are operating as a partnership then the partnership will have an ICA account which will deal with GST and/or PAYG Withholding but each partner will have their own Tax Account in their own name (a partnership doesn't pay income tax, only the partners do).

Tax Help for NSW Flood Victims

2007-06-13T08:57:00.000+10:00

ATO Media Release:

The Tax Office has assured people affected by the floods in New South Wales that they do not need to worry about their tax at this time.

Tax Commissioner Michael D’Ascenzo said this is a very difficult time for residents of the central coast and Hunter region, especially those who have suffered damage to their home or business.

“We understand that people have other priorities to sort out now and it may be some time before they are able to focus on tax matters.

“People who are having problems meeting their tax obligations because of the flood can call us on 13 11 42 to make arrangements that suit their individual circumstances,” Mr D’Ascenzo said.

Your tax agent can also talk to the Tax Office on your behalf.

The Tax Office can help by:

fast tracking refunds for people impacted by the flood
giving extra time to pay debts - without interest charges
giving more time to meet BAS and other lodgement obligations – without penalties
helping reconstruct tax records where documents have been destroyed, and
offering personal visits from field officers to help reconcile lost records.

Ye gads! My BAS is late!

2007-06-11T22:48:00.000+10:00

It's a week past the BAS deadline and the form is still sitting on the kitchen counter... uncompleted!

What are you going to do?!!

Don't do what many tax payers do and stick your head in the sand. It won't go away!

The BAS has to be done, but don't make the situation worse or more expensive. The first thing that you need to do is contact the ATO and let them know that you are running late. If you make the first move, generally the ATO is fairly considerate and they will probably give you an extension of two weeks without hitting you with fines.

Make sure that you get it in within that time. Whether it's sitting at the kitchen table with a calculator and receipts completing the form yourself or getting a BAS provider or Accountant to do the BAS for you, the form must be lodged.

If this is an issue that tends to occur each quarter, consider nominating the GST instalment option. That way the actual calculation of the GST is not required until the lodgement of your tax return.

One common reason that I hear in regard to not lodging a BAS is that the return is complete but the client didn't have the money to pay it. My advice is always the same. Lodge the return, even if you don't have the money.

By not lodging you attract $110 fines every 28 days up to a maximum of $550... and this is an expense you can not claim against your business income. Even if you are charged interest in regard to the outstanding amount it will most probably be far less than the fines... and the interest is tax deductible!

If you find yourself in this situation, lodge the return and then contact the ATO to organise a payment arrangement. As I said before, if the ATO don't have to do the chasing then they are very reasonable in working with you to payoff the amount.

Keep in mind that from 1 July 2007 the compulsory income threshhold for BAS registration has risen from $50,000 to $75,000. So if your revenue (what you receive before any expenses) is less than $75,000 you may want to consider deregistering for GST.

Contact your Accountant or Tax Agent to discuss whether you may benefit from this.

So you want to start a business?

2007-06-10T20:06:00.000+10:00

You've got a great idea! No-one else appears to be doing it at the moment. The people you have told have said that they think it would be a winner!

It's a sure fire business success... right?

Well, it all depends on what you do right now.

Interestingly enough, one of the last people that anyone in this situation talks to is an accountant. Yet they should be the first! There are probably two reasons why this is so: fear of the cost of seeking advice and fear that what they will hear will be negative.

Afterall, no-one likes to have it rain on their idea.

However, 1 in 3 of all small businesses started fail in the first year, 2 in 4 fail by the second year and 3 in 4 fail by the fifth year (CPA Australia). Within those statistics you can pretty much guarantee that there were quite a few businesses that believed they had a 'sure fire' concept that would be successful.

The reality is that the success of any business venture is not directly related to the concept... it is related to the planning. The problem is that when you are fresh with a huge marketing idea, planning is the last thing you are wanting to do!

This is where you need to ask yourself "do I want a great idea or do I want a great business?" If the answer is the latter then you need to start being serious about how this great business is going to occur.

One of the earliest things that you need to do is work out a business plan followed by a marketing plan (a little hint: if you can complete both these plans and still have room at the bottom of an A4 page then you've not really done a business or marketing plan!!!)

I will be writing blogs on developing both business and marketing plans in the future.

In the mean time if you are looking at starting a new business you can get get some great resources at http://www.business.gov.au/. A comprehensive business plan template is available at nt.gov.au and an extensive example of a marketing plan is available at business.vic.gov.au.

An interactive New To Business checklist by business.gov.au is available from our site.

MYOB How To: Account Names Instead of Numbers

2007-06-10T19:56:00.000+10:00

An important MYOB preference you can change is the choice of listing and selecting accounts by either the name of the account or the account number.

Altering the default settings and listing your accounts by name is a quick and simple procedure.

From the top menu click set up and then scroll to preferences. The preference settings will open and you should select the "windows" tab.

As you can see above, the fourth option is "Select and Display Account Name, Not Account Number."

To activite this preference simply place a tick in the box. When the tick is removed, the accounts will be listed by account number.

Terms of endearment # 3

2007-06-10T17:33:00.000+10:00

The ATO can send two different forms to certain taxpayers each quarter, both of which can cause confusion to those who receive them.

Business Activity Statement (BAS): The BAS is a composite form collecting figures on a variety of different taxes and rebates. This form is sent to companies, trusts, partnerships and individuals who operate a business in Australia.

The return obtains details regarding:

Goods and Service Tax (GST)
Pay As You Go Withholding Tax (PAYGW) - this is employee group tax
Pay As You Go Tax (PAYG) - this is personal or company tax instalments
Fringe Benefits Tax (FBT)
Wine Equalisation Tax
Luxury Car Tax
Fuel Tax Credits

As you can see it covers a wide assortment of taxes primarily related to business activities of which an entity may have three or four at any one time.

Income Activity Statement (IAS): The IAS is sent to anyone receiving taxable income that does not have tax withdrawn through the year (either through PAYGW amounts from wages or PAYG instalments on BAS statements).

IAS statements are primarily sent to individual partners of a partnership, trust beneficiaries, sole traders who aren't registered for GST or employ anyone, self managed superannuation funds and individuals who receive income such as dividends, interest or positively-geared rental receipts.

Therefore partners of a partnership may receive a BAS in regard to the partnership if they are registered for GST or employ someone, and also each receive an IAS to obtain PAYG instalments for themselves personally.

Terms of endearment # 2

2007-06-09T23:22:00.000+10:00

Let's see if we can unravel another one of those 'not-so-clear' terminologies that the ATO love to throw at us. These two sound the same but are vastly different.

Imputation credits: These are credits that are raised from franked dividends that a person or entity may receive.

Basically, a dividend is a distribution of profits held within a company to the shareholders (the owners of the company). If the dividend is paid from profits that have not been taxed, it will be an unfranked dividend which is simply added to the person/entity's income (much the same as interest).

If the dividend is paid from profits that have been taxed, it will be a franked dividend. Franked dividends have imputation credits attached that allow a tax credit of 30% of the dividend amount to be used. The reason for this is as the company has already paid tax on the profit at the 30% company tax rate, it would be unfair that the shareholder be slugged with tax again on the same amount. Therefore the imputation credit allows the shareholder to claw back the company tax amount in their own return.

Input tax credits: When calculating a person's Goods and Service Tax (GST) position, input tax credits are the amount of GST paid on goods and services that have been purchased by the client in relation to the business they are operating. Therefore they can claim those amounts as credits against the GST they have collected from the business income.

Sometimes a person/entity may have more input tax credits than GST collected which will generate a refund for that period.

More definitions coming soon!

Business Boo-Boo: Competing on Price

2007-06-08T15:12:00.000+10:00

According to customer service consultant Paul Levesque in this month's CEO Refresher journal, competing on price makes the list of The Five Biggest Customer Service Blunders of all Time.

If "cheapest price" is not your market niche, competing on price can actually be damaging to your business. Market research confirms time and again that price is typically not even in the top three things a customer is looking for - in fact, quality is number one.

Paul Levenesque explains:

"It's one of the most common (and most costly) mistakes in business. Price becomes the deciding factor in purchasing decisions only when everything else is equal - and everything else is almost never equal.
Businesses compete on the perception of value, and this includes more than price. It's shaped by the total customer experience - and aspects such as "helpfulness," "friendliness," and "the personal touch" often give the competitive advantage to businesses that actually charge slightly more for their basic goods and services.
Those businesses that deliver a superior total experience from the inside out (that is, as a product of a strongly customer-focused culture) are typically those that enjoy a long-term competitive advantage - along with virtual immunity from the kinds of headaches that plague everybody else."

The bottom line is this: customers go elsewhere when you don't satisfy them. The solution to customer retention is not always to drop your prices. The secret is to deliver better service than your competitors.

MYOB Tip: Unsure of Tax Code

2007-06-04T16:39:00.000+10:00

Most business transactions recorded in MYOB will use either a GST tax code or the N-T tax code.

If you are entering data yourself there may be times when you are unsure of the exact tax code to use. It is a good idea to have a specific tax code set up just for such an occassion. In the following example I have used a tax code called QUE (to represent question mark).

Here's how it is done:

1. With your MYOB data file open, select 'Lists' from the top menu and scroll down to 'tax codes.' The tax code list will display on your screen with all the tax codes listed.

2. From the bottom of the page select "new" to add your unique tax code.

3. You can call it anything you like but be sure it is something you will remember or recognise when you need it. I suggest you use your usual linked accounts but set the tax rate at 0% for this code, although ultimately the accountant will fix it up when they apply the correct codes.

4. Save the new code and your screen should something like this.

The next time you are unsure of the correct tax code to use when recording a transaction, you can use your new (question mark) code. This can be assigned correctly by you or the accountant at BAS time.

Knowing your business

2007-06-03T22:31:00.000+10:00

During my searching the web recently I stumbled upon several small business sites. I was struck by the realisation that many of these businesses do not know what their business is.

A fine example of this was the 'bookkeeping specialist' offering secretarial services, web design and maintenance, resume writing, marketing advice, business analysis and yoga training! I'm serious.

While there is something to be said for offering a variety of services and having multiple income streams, tossing random services on a single webpage together is clearly not the way to convince prospects you are a 'specialist' in anything.

If you don't have a clear business niche, you risk standing for nothing. This makes you vulnerable to competitors. Give serious thought to what it is you want your business known for. Whatever that may be, be sure you KNOW IT and that you clearly COMMUNICATE IT.

June Lodgement Dates

2007-06-01T09:07:00.000+10:00

14 June:

Reasonable benefit limits (RBL) reporting – all RBL reportable benefits paid in May 2007 must be reported to the Tax Office on or before this date.

21 June:

May 2007 monthly activity statements: final date for lodgment and payment.

30 June:

End of financial year.

Terms of endearment # 1

2007-05-26T17:11:00.000+10:00

I really do think that the ATO has someone on the payroll who's whole job description is to come up with new names and acronyms!

Even though the two below have been around for a few years now, they still create confusion regarding their exact meaning. I thought that I would start my first series on listing some ATO terminology and clarifying what they actually mean.

Offsets - (formerly called rebates) This was one of those terms that was difficult enough to understand when they were all named 'rebate', but the ATO thought 'hey, let's really screw with their minds and change the name... of just some of them!'

Offsets (as well as those that remained named as 'rebates') are amounts allowed by the ATO to reduce the tax payable (but not the Medicare Levy). Their purpose is to provide tax relief for people who's situation may make the full payment of tax difficult (either because of low income or excessive expenses).

Some available offsets are:

Low income offset (from 1 July 2007 anyone with taxable income under $30,000 will receive this)
Dependant rebate (for single income families without dependants)
Senior Australians offset
Pensioner rebates
Entreprenuers' tax offset (up to 25% of tax payable on any income from businesses whose turnover is less than $75,000 in total, if they are in the STS system)
Medical expenses rebate (20% on out-of-pocket medical expenses after first $1,500)
and many, many others

(Please note that some offsets are subject to shading ie: they reduce as income increases.)

Basically, offsets (rebates) reduce the amount of tax payable after it has been calculated on the taxable income.

Expenses - Reduces the taxable income and are allowable if they are associated with generating that income. There can be restrictions on what can be claimed and you will usually need to have receipts or records to prove (substantiate) them.

Unlike offsets (rebates) which come directly off the tax payable, deductions reduce the income to be assessed therefore you will ever only receive a tax benefit of the marginal tax rate.

For example - someone who has a taxable income of $70,000 has an expense for $100; the tax benefit they will receive will be $31.50 off their tax ($30 because they are in the 30% marginal tax bracket and $1.50 because they would have to pay the 1.5% Medicare levy).

Stay tuned for more terminology definitions.

What are the Dollars & Sense Blogs all about?

2007-05-26T15:33:00.000+10:00

Some of the most useful bits of information are usually found in small excerpts, mostly where you would least expect them.

That's where blogs come into their own!

Blogs are an ideal format for professions to highlight useful snippets of information without having to plow through endless pages of non-relevant material.

Many times I have found that people have questions that only need a short reply, but not knowing where to access the correct information and thinking that contacting a professional would be a pricey over-kill, stops them from getting an answer.

The accounting and taxation industry is a labyrinth of information, much of which may not be relevant to you... but some of it may be! By publishing various 'snippets' in a blog format, it may provide the very thing you were looking for and give you a lead to obtaining further information.

The focus of this blog is business and in it I hope to present a variety of topics and issues that may be useful for small business and their owners, whether just starting or already established. My aim is to present topics that people may not have thought of, expand on things that may be confusing and assist with resources that may provide further benefit.

The theme is for small business growth through knowledge and resource.

If any topic captures your attention, please make comment and add your own thoughts. If you wish to ask a question on an issue, use the comments to post your query and I will attend to it as soon as possible.

We also run a similar blog dealing with personal taxation and accounting issues at Dollars & Sense for Individuals to which I also post. Please visit. You may come across useful information of interest to you there too!

Please subscribe to the blog to receive new post either through rss or email. I hope this may become a useful resource for your business.

$billions in lost superannuation

2007-05-24T21:49:00.000+10:00

With $9.7 billion of lost superannuation lying in Australian funds, you'd think people would be lining up to claim their share but the amount of money in lost super accounts is steadily growing.

I posted recently in Dollars and Sense for Individuals that this affects 4.3 million Aussies. Fortunately, there is an easy way to track it down.

Accounts become lost when the superannuation fund loses contact with the individual account holder. This can happen for a variety of reasons and while funds do try to contact lost account holders, they are not always successful.

You don't have to wait for a fund to find you. The Australian Taxation Office has a service they call Superseeker. SuperSeeker is a tool that will look for your lost superannuation in real time and instantly provide you with possible matches.

To begin the Superseeker online search you will need to provide your:

tax file number
name, and
date of birth.

It's your money so go and claim your share of the lost billions!

Get Your Business Name Out There for FREE

2007-05-20T22:46:00.000+10:00

According to True Local over 90% of the Australian Internet audience are using online directories to find a local business, service or product. Not all micro business can afford an expensive yellow pages ad - particularly those which are home-based. Many small local traders have no online presence or offline listings at all. Don't let an impossibly tight budget hold you back. Make the most of the free resources which are available to you.

Free Directory Listings

For an investment of a little time, you can get your business name out there by submitting your details to online business directories.

I've sourced several sites which provide a FREE listing in their directory.

Hot Frog (http://www.hotfrog.com.au/) gives you a free basic listing, including a clickable link direct to your own website. Another cool feature is the 'latest news' button you can use to include more information and add current business promotions. The listing includes all your contact details aswell as space to add your own business description or blurb. Listing was quick and simple and, to my amazement, Google picked our Hot Frog listing up almost immediately and ranked it high in search results according to the search criteria I used.

Web Find (http://www.webfind.com.au/) was one of the most generous free listing providers I located. Your basic listing has the option of including a logo graphic, hours of operation, a lengthy blurb about your business, bulleted unique selling points and the products and services you provide. It all comes together under a cute little â€œcontact cardâ€� complete with a clickable link to your own website.

Local.com.au (www.local.com.au) offers a free listing with plenty of room to add your business description. It includes a direct link to your website and email, aswell as other contact details. Adding a listing was pretty fast. Although the site says it may take up to 2 days to add the listing, we had ours up within 2 hours (pretty impressive for a Sunday night).

Rave About It (www.raveaboutit.com.au) deserves raving about. Submitting a listing was painlessly simple and allowed plenty of great options such as including pictures and adding promotions. A free listing allowed me to add all my details, link directly to our site, include a lengthy description and manage opening hours.

Aussie Local (http://www.aussielocal.com.au/) allows you to submit a basic free listing in up to five different categories.

The Ozebiz Index (http://www.ozebiz.com.au/) allows you to include either your web address OR your contact details.

Business Search (http://www.businesssearch.com.au/) offer a free listing which does not include a web link, but does include your name, address, phone and region serviced. Adding a link to this site was quick, simple and almost instant. The locality search worked a treat to quickly find the listing again.

For something specifically local, go to Oomah.com From there you can access www.thecentralcoast.org, www.gosford.org, www.wyongshire.org and a host of other Central Coast regional directories. A basic listing is free but you'll have to pay if you want an active link to your site or other bells and whistles.

Other sites offering a free listing include:
dLook (www.dlook.com.au)
hhh Services.Com.Au (www.hhhservices.com.au)
Australia Map Guide (www.street-directory.com.au)
Aussie Web Local Search (www.aussieweb.com.au)
True Local (www.truelocal.com.au)
NSW Central Business Directory (www.nsw.australiancbd.com.au)
Come on Aussie (www.comeonaussie.com)
Laton Australian Business Directory (www.laton.com.au)
Local Biz Online Shopping and Services Directory (www.localbiz.com.au). This last site requires a reciprocal link to maintain a free listing so you must have a website. Alternatively, a basic listing with no reciprocal link is $2.50.

Okay, so it's not a full page colour advertisement in the Yellow Pages but it is a start. From experience, I can say that these "free" directory listings do generate some business (not always a lot, but some). For zero financial outlay they are not a bad investment at all for small business on a shoestring budget.

Christie Lewis is a business partner with Alan Lewis Accounting & Taxation Services. Located on the NSW Central Coast. More than just a tax time necessity... we remain at your service for the entire year. Visit us online today at www.lewistaxation.com.au

Budget Highlights: Cutting Red Tape for Small Business

2007-05-19T23:53:00.000+10:00

From 1 July 2007:

The annual turnover thresholds for registration for the GST is increasing from $50,000 to $75,000 for businesses.

This is great news for many small business who are heavily burdened with compliance obligations and mounting late fines.

From 1 July, qualifying businesses may elect to de-register for GST and save themselves the headache. Every situation is different so it is important to speak with your accountant before making this decision.

Any clients considering this should give Alan a call first to discuss it. He will be able to advise you if deregistering is the best option for you personally at this time.

Feel free to give our office a call on (02) 4390 4156 or email alan@lewistaxation.com.au.

Budget Highlights: Personal Tax Cuts

2007-05-18T00:10:00.000+10:00

The Government has announced $31.5 billion of tax cuts over the next 4 years:

• From 1 July 2007, the 30 per cent threshold will rise from $25,000 to $30,000.

• From 1 July 2008, the 40 per cent threshold will increase to $80,000, and the 45 per cent threshold will increase to $180,000

The 100 Guerrilla Marketing Weapons

2007-05-08T22:15:00.000+10:00

According to "Guerilla Marketing" principles there are at least 100 marketing weapons in the small business arsenal. So, what exactly are all 100 weapons?

I've compiled a full list below of those recognised by author Jay Levinson (the father of Guerilla Marketing) in his Guerilla Marketing Weapons: 100 affordable marketing methods for maximizing profits from your small business.

Clearly, some are more suitable for micro-business than others but they are all worth giving some consideration to. Best of all, more than half of them are free.

I'll be exploring some of these 100 weapons in more detail over the coming months. For now, here is the list:

Marketing plan
Marketing calendar
Niche/positioning
Name of company
Identity
Logo
Theme
Stationery
Business card
Signs inside
Signs outside
Hours of operation
Days of operation
Window display
Flexibility
Word-of-mouth
Community involvement
Barter
Club/Association memberships
Partial payment plans
Cause-related marketing
Telephone demeanor
Toll free phone number
Free consultations
Free seminars and clinics
Free demonstrations
Free samples
Giver vs taker stance
Fusion marketing
Marketing on telephone hold
Success stories
Employee attire
Service
Follow-up
Yourself and your employees
Gifts and ad specialities
Catalog
Yellow Pages ads
Column in a publication
Article in a publication
Speaker at any club
Newsletter
All your audiences
Benefits list
Computer
Selection
Contact time with customer
How you say hello/goodbye
Public relations
Media contacts
Neatness
Referral program
Sharing with peers
Guarantee
Telemarketing
Gift certificates
Brochures
Electronic brochures
Location
Advertising
Sales training
Networking
Quality
Reprints and blow-ups
Flipcharts
Opportunities to upgrade
Contests/sweepstakes
Online marketing
Classified advertising
Newspaper ads
Magazine ads
Radio spots
TV spots
Infomercials
Movie ads
Direct mail letters
Direct mail postcards
Postcard decks
Posters
Fax-on-demand
Special events
Show display
Audio-visual aids
Spare time
Prospect mailing lists
Research studies
Competitive advantages
Marketing insight
Speed
Testimonials
Reputation
Enthusiasm & passion
Credibility
Spying on yourself and others
Being easy to do business with
Brand name awareness
Designated guerrilla
Customer mailing list
Competitiveness
Satisfied customers

For more information visit www.gmarketing.com