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It's a reminder the ATO has a number of areas and Taxpayers in its focus this year!
Included in their sights using a new data-matching protocol and cross checking system are;
- work related expenses,
- rental investment property deductions,
- private use of Business assets,
- cyptocurrency activities,
- ‘side gig’, second incomes gained, such as ‘influencers’.
Importantly don’t blur your deductions when making your claims!
Follow these 5 simple Steps to get the best, clearest and correct picture:
- Keep accurate records, logbooks and diaries
- Claim only work-related expenses, don’t mix private and company
- Adopt the revised fixed rate of 67cents per hour working from home
- Know and understand your obligations
- Contact Blackburn Accounting if you have questions or need professional advice
Technology, YES, it has redefined the way we do business and will continue to do so! It’s a fact.
Smart Small Businesses are getting on board adopting various technology solutions to harness digital transformation to support and enable Business growth and efficiency. If you are a Small Business owner, you can’t afford not to take-up what Technoloy offers, the benefits it brings to keep you competitive, by running your Business more smoothly and effectively.
Are you one of them!. Keep reading to find out more, why and how Small Business should take on Technology today!
Technology, is described as ‘the application of scientific knowledge for practical purposes, especially in industry.’ (def: Oxford languages).’ And no-one can dispute its application.
From the earliest beginnings of stone tools, fire and weapons to the present day with advances in artificial intelligence, virtual reality, blockchains and robotics, technology has continuously changed and transformed our lives.
It was Technology that came to the forefront as we sought answers to counter the impact of COVID. The pandemic fallout brought changes to how we did business, bought, sold and delivered. It reshaped how, where and when people worked. With lockdowns and restrictions Online digital operations became the norm. Going forward, these practices along with technological developments are the new world order.
5 Reasons Why Every Small Business should take on Technology today
- Tech plays a crucial role in redesigning and reinvigorating a Business
- Tech can save you time, money and effort by streamlining systems & processes
- It takes the hassle out running day to day Business operations through more efficient data collection and analysis, offers better customer support and improved organisational infrastructure
Most importantly, what are the lessons learned from the pandemic to better prepare us for future challenges.
Read on for our Top 6 Lessons Learned.
In reflection, the changes brought about by COVID, saw small Businesses forced to learn some hard lessons very fast to counter the devastating impact. Some survived and thrived, and some didn’t. The common thread is that Small Businesses learned some lessons that they need to apply going forward to brace for the next ‘unexpected’ challenge. We also saw the Australian Government provide Grants and Supplements to help support businesses during this period.
But to look to the future let’s first capture a glimpse of the ‘past’ world, major events that influenced and shaped us!
Pre COVID and post WW2 Australia was embraced by migrants escaping war-torn Europe looking for a better life. The 1960’s brought growth and prosperity, a mining boom in WAs north, a housing boom, Holden cars and employment opportunities. With few major fluctuations it was a stable environment, providing certainty.
This lasted over the decades although housing booms and busts created interruptions.
Between August 1968 to May 1989, Australians saw the average mortgage rates rise from 5.38% to 17%. Then followed the 1990’s Recession we had to have according to the then Treasurer Paul Keating. This followed the stock market collapse of October 1987, caused by the international recession and high-interest rates.
In the years leading up to the GFC (2007-2009), economic conditions in the United States and other countries were favourable. Economic growth was strong and stable, and rates of inflation, unemployment and interest were relatively low. In this environment, house prices grew strongly.
The global financial crisis (GFC) refers to the period of extreme stress in global financial markets and banking systems between mid-2007 and early 2009.
Australia didn’t experience a large economic downturn or a financial crisis during the GFC due to several factors, including the relatively strong performance of the Australian economy and financial system. However, the pace of economic growth did slow significantly, the unemployment rate rose sharply and there was a period of heightened uncertainty.
2019: the world as we knew it changed dramatically. COVID 19 a viral infection emerged and spread throughout the world with devastating effects, reaching Australia in January 2020! The rest is history!
COVID a Wakeup call!
If so, how prepared are you and your Business for the next major challenge or sudden unprecedented crisis?!
Ask yourself, how prepared am I to make critical decisions to respond to the effects of climate change, world population growth, fluctuating economic cycles, energy supply disruption, workforce instability, Technological changes, and Artificial Intelligence advancements, to name some.
To answer, let’s consider ‘lessons’ learned from the COVID pandemic fallout. Words that come to mind include Resilience, Flexibility, Creativity, new Mindset and Adaptability. Thinking and acting differently, changing direction and behaviours. Nothing is the same, it’s not Business as usual!
To be stronger and better placed Businesses can adopt strategies, such as;
6 Top Lessons Learned Strategies:
- Be prepared: by planning for the hard times, both financially and operationally. Don’t take things for granted, the unexpected can and does happen. Conduct a thorough risk assessment. Keep your Business model agile and flexible to better respond and adapt to changed circumstances and facing uncertainty. Recovery and continuity need to be part of your strategy.
- Build resilience: Develop and support human capacity and capabilities. Work with your staff to provide and maximise resources, offer flexible working arrangements and social interaction opportunities. Stay connected, whether face to face or digitally. Build and bond with your Team.
- Strengthen your Business model: by creating more and different revenue streams. Don’t let your Business stagnate, always be looking for new ideas, products and ways of doing things. Explore digital platforms to promote, sell and engage. Reach existing customers and find potentials thru social media.
Yes!
READ on for 6 Ways to Avoid Toppling over the pricing Edge!
As we face the mountain of inflation and rapidly rising price increases no one is immune. Business is grappling with supply, wage and production costs that in turn are passed onto their customers.
Some Small Business many may be facing their Pricing Tipping Point!
But what to do to avoid toppling over the edge!
Your most valued asset is your customers and clients. Without them, there are no sales and no revenue. Simply raising prices if used as a blunt instrument can be damaging and harm customer relationships. No Business wants disgruntled unhappy customers! or to lose them.
Keep reading, there are pricing solutions.
Smart Businesses see an opportunity to develop new customer relationships that acknowledge price pain points while still preserving margins. This approach is the art and science of pricing management.
6 Tipping Point Pricing Solutions:
- Communicate honestly with your Customers: Be upfront and open about price changes, and why they are needed. Clear and transparent communication is vital and will help mitigate any backlash. Most will understand and appreciate you are running a business.
- Deliver Excellent Service, Value and Quality for Money: Ensure you deliver on all of these. Focus on customer satisfaction and provide a shopping experience that brings them back for more. Back this up with customer surveys to know what your customers really want and need or would like!
- Creative Pricing policy: One price size doesn’t fit all! Take the time and effort to explore the science of pricing and develop your pricing strategy accordingly. For example, price changes tailored to product segments or items. Customers will react differently to price increases depending on how price sensitive they are. In simple terms, adjust price based on customers willingness to pay on product differentiation.
- Monitor the Market: keep abreast of your competition and their pricing and marketing strategies. In the world of ECommerce shoppers are just a click away from a range of best deals and offers. Know what’s going on to be in the game.
Recognise Your Tipping Point and Take Action before it’s Too Late!
Read on for our 5 Action Strategies!
Tipping Point, Breaking Point or Boiling Point, terms most likely you have heard. Described by Cambridge Business English Dictionary as, ‘a time during an activity or process when an important decision has to be made or when a situation changes completely’.
This Tipping Point once reached can be the difference between success or failure. To go forward or stop! There is a reaction. One that takes you onto bigger or better things or is the opposite, the equilibrium unbalance causing you, the scales to topple over into a downslide or stagnation.
For Small Business: What does it Mean in Reality?
If you are a Small Business struggling with the current inflationary pressures you may be reaching your tipping point. For example, how to respond to spiraling costs of supplies, wages and overheads. At what point do you tip over the edge. Customers are becoming thriftier and more selective in their shopping habits, while still chasing value and quality.
In seeking solutions do you increase your prices and at what point will you tip the balance and lose customers. Alternatively, keep absorbing the costs, reducing and losing your profitability until closure.
Example:
Cafe 1, cup coffee $6 increases to $8 a 33% increase.
Cafe 2, same cup $6 increases to $6.50 (16% increase), with gradual increases over two rises. i.e.incremental increases to reach the tipping point.
Alternatively, a lump sum increase can the tip point and lose customers.
What is your breaking point?
What to do!
Take action by understanding what a Tipping Point is and how to identify it.
A Tipping point is the turning point at which a product, brand, or company becomes either highly successful or faces failure. The ‘scales’ will topple or tip over to positively or negatively! With the latter, reaching a Tipping point at which damage is irreversible or accelerating.
Better to see and heed the warning signs!
- Profit margins reducing
- Cashflow challenges
- Sales turndown
- Customer complaints
- Supply issues
5 Action Strategies:
- Identify the problem. Gather all relevant information. Avoid putting it off.
- Bring your Team together. Put the issue on the ‘table’ to brainstorm problems and seek solutions.
- Reach out to your Customers. Be upfront, connecting with honest and open communication. Don't apologise.
- Engage a Business professional advisor if needed.
- Speak with Blackburn Accounting let us help you get on top of your Business matters
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