Blackburn Accounting

ato

ATO taking firmer steps to recover debts!

As we emerge from the COVID crisis the ATO has announced it will be more active with its debt collection recovery actions,

particularly targeting those refusing to engage with them or those posing higher risks.
These actions include recovery of director penalties, disclosure of business tax debts, garnishes and legal steps including creditors petition, summons and insolvency action.

The ATO’s preferred position is resolution through engagement rather than enforcement, acknowledging many small Businesses have been doing it tough during the pandemic.

To back this approach and help Debtors, they are offering tailored support and assistance to those with overdue debts.

You can take steps to avoid aggressive action.

Options include:

importantly contact the ATO to discuss your situation so payment arrangements can be set-up.

Alternatively, taxpayers with debts should speak with their registered tax agent who is authorized to act on their behalf.

Need help!

Blackburn Accounting is a tax specialist. Contact us today.

The ATO can be contacted on 13 11 42 or go to their website ato.gov.au/debt

Getting the most out of your money and resources - who doesn’t want that?

Living beyond your means! are you overcommitted, caught up in a lifestyle that is financially beyond your means?

Do you want to cut expenses, curb costly habits and have more money, and get more out of it?

Yes! Keep reading, frugal living may be the solution you are looking for!

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What is Frugal living?

Frugality, frugal living, it’s an old-fashioned concept, a thing from the past but now back in ‘fashion’ in these times of spiralling costs of living. Many households stretching their budgets are looking for ways to find savings, refine their spending patterns, and rethink the use of resources. Others, a new generation see this lifestyle as a means to save to retire earlier. For some, it’s a philosophical approach to life. Whatever your reason following frugal living habits can offer benefits.

Frugal living is about being resourceful and economical with your money and spending habits, knowing what you are spending on, maximising the money you spend and avoiding spending on things that aren’t important to you. Its about being smarter, intentional, with greater control.

To reiterate, it's mastering the art of resource maximization!

What are the benefits of frugal living:

By spending less you are on the path to becoming more financially independent
Wasting little and recycling
Avoids unnecessary consumption
Find fulfillment that doesn’t come from consumption!
Escape extravagance, excess and lavishness

Being frugal doesn’t mean being tight-fisted, mean with money, or a ‘cheapskate'. Frugalists are more considered in their approach to money and its use. Cheapskates on the other hand usually hate and avoid spending money, and when they do buy they always buy the cheapest product. The frugal however will consider the options and may purchase more expensive items if it offers better quality and value for money. They adopt values-based spending patterns, spending on what is important to them rather than just spending and buying for the sake of it, and accumulating material goods.

Frugal is about being discerning with your spending. You don’t have to sacrifice everywhere or everything!

For example, if you are running a marathon buying the cheapest pair of runners may not be smart or have any savings, for either your feet or budget. The frugal shopper considers what is better, ‘smart’ value. Purchasing a better-quality shoe, the more expensive style will come with features to help support and protect your feet and you in undertaking an epic event.

A frugal approach is worthy but being cheap isn’t, particularly at the expense of others! Dining out with friends on a regular basis, when the bill comes, make sure you have a turn at paying! Don’t be the cheapskate always looking for a free meal. Cheapskates will soon find they don’t get invited back!

Same with the shout of drinks! When it’s your turn to ‘shout’ the round and pay the tab, don’t disappear or head for the exit!

8 Top Tips to Living Frugally

1. Get back to the basics. Ask yourself, what do I need to have a safe, comfortable lifestyle?

2. Create a realistic Budget, and track all your money, income, and spending.

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Standing out in the crowd, being noticed and gaining a competitive edge are key to a successful Business! and more critical than ever in the current economic environment.

Finding your difference, attracting customers and keeping them! What to do! Try our 10 Strategies!

Define your Identity (Unique Point of Difference)
Select your Space
Find your Niche
Sell your Point of Difference
Build your Brand
Use various marketing mediums
BE bold, brave, creative and PASSIONATE about your product!
Connect with your Customers
Value your Team
Keep in touch with the latest trends and issues

1. Define your Identity (unique point of difference)

This is about defining your vision and goals and then developing and stating your value proposition. This statement clearly tells customers what you do, and how you are different which set you apart from others, including your competitors. It might be a new method or a product’s particular feature. To create meaningful points of difference you need to understand not just what benefits and features customers value, but why.

2. Select Your Space

Are you a small Business owner and like many others caught in the current maze of high inflation?

Are you looking for answers and solutions to help get you thru! Yes, then read on.

In this environment, it’s vital to remember you are in Business to make money, earn a living and like most, want to remain profitable. You may be able to absorb some price increases and hope you can ride out the inflationary storm but ultimately if you are making less money, you are potentially putting your Business at risk of failure. I’m sure that’s not the path you want to go down.

cost living 3

Economic forecasts are mixed on what lies ahead but most predict high inflation isn’t going to disappear overnight or in the short term.

History tells us there is no magic fix

BUT there are ways to help you better manage and respond during these challenging times!

7 Strategies to consider implementing.

Lower Your Costs
Increase Prices
Boost your Cash position
Remodel your Services/Products
Implement Technology solutions
Market your Unique Selling Point
Contact Blackburn Accounting

consumer confidence 2

Just released Bulletin. On 14 February 2023 Westpac released a statement in the Bulletin that: ‘Westpac-Melbourne Institute Consumer Sentiment Index falls 6.9% in February. Sentiment back at historic lows – weaker reads only ever seen during recession’. What does this mean to you?

Consumer confidence, it’s the economic indicator used to measure the degree of optimism consumers have regarding the overall state of a country’s economic and their personal financial situation. Ironically, remarkably it is consumer confidence, and sentiment, that drive consumerism, the habit of spending. How this sentiment plays out affects the health and wealth of a Business.

In todays current economic climate if you are a Business owner its vital you are doing all you can to build your customers confidence to boost business! Read on to find out more!