Eco Efficiency

What is Eco Efficiency?  It is…

  • Reducing Energy use
  • Reducing the use of toxic substances
  • Enhancing material recyclability
  • Maximising the use of renewable resources
  • Enhancing the material durability
  • Reducing material intensity
  • Increasing service intensity

If you are thinking of implementing a project, then you need to consider the cost, versus the savings and decide how long it would take and how many sales it would take to be a benefit to your business.

Your project may include:

  • Energy efficient lighting
  • Solar PV
  • Waste Reduction
  • Reducing paper use
  • Raw material efficiency

Some examples of the costs of the projects are:

  • No cost opportunities include turning off equipment or fixtures when they are not in use.  Carefully handing and storing of materials to reduce waste.
  • Low cost opportunities include, monitoring and prompt repair of water leaks, maintaining and servicing equipment so it operates efficiently, good inventory control to reduce waste
  • Investing to save opportunities include, solar energy generation or heating, water harvesting or recycling systems, onsite composting

When looking at opportunities to save your business money and increase its green footprint, assess the potential costs and savings determine who needs to be involved in the project, implement it and measure and confirm the savings.

When considering a project ensure you have assessed whether it is feasible and practical:

  • Will it affect the work place health and safety?
  • Will it affect the quality of your product or the service you offer?
  • Is it technically feasible?
  • Will it affect customer perceptions of your product? eg a greener image
  • Will it impact on other ares of resource use?

Find out whether you qualify for any funding programs such as Clean Energy Finance Corporation and Solar PV Leasing.  Also visit http://grantslink.gov.au to see if you qualify for an grant.

If you would like a FREE site visit from a sustainability expert who can audit your premises and recommend areas where simple changes can make a huge difference to your waste, water and energy use and ultimately your bottom line.  Visit www.cciqecobiz.com.au to book.

Posted in Uncategorized

Thinking of starting your own business

Quitting your day job to start up your own business venture can be a scary and daunting process.

Statistics show that 50 percent of all new businesses fail within the first five years and only 3 per cent of those remaining ever make it tot he 10 year mark.

A simple lack of planning is the reason that a vast majority of businesses fail.  So first and foremost, have a business plan.  Outline your goals, budget, strategy, target market and marketing strategy.

Next, start out part time so that you can still generate an income while things are starting out slow.

Without a safety net of income you are going to need some backup capital to cover the slow times of your new business.  Income does not come flooding in the first day you start your business.  Save every penny you can so that you have some capital to survive off.

Test and measure which advertising and marketing strategies work for you and don’t keep pouring money into things that do not work.  And finally, seek advice from a specialist and business coach to keep you on track.

Plant and Associates Pty Ltd

07 5596 5758

www.plantandassociates.com.au

Posted in Accountant

Do you want to save paying Fringe Benefits Tax of 49%

Fringe Benefits Tax (FBT) applies to any business (including sole traders) who provide non-cash benefits to employees, business owners, some contractors and their associates (including family members). The FBT year runs from 1 April to 31 March and the FBT rate  for the 2016 year (ending 31 March 2016) is 49%. We have recently contacted business clients that we think may be subject to FBT in order to review their circumstances and reduce the amount payable. If you are concerned that you may be subject to FBT, please contact our office to discuss.

There are many types of fringe benefits, however the 2 most common benefits provided are motor vehicles and entertainment and these are discussed below.

Motor  Vehicle Benefits

Motor vehicle benefits are provided where a business owns a vehicle (e.g. a car, ute, truck or motorcycle) and it allows an employee to have access to that vehicle for private use. The FBT law applies when the vehicle is “available” for the private use of the employee, even if it is not actually used for private purposes. E.g. if a business vehicle is garaged at the employee’s home overnight (rather than at the business premises), then it is deemed to be available for private use and will therefore be subject to FBT. There is no exemption where the business premises and the employee’s home are the same address.

The best way to reduce the amount of FBT payable on motor vehicle benefits is to ensure that a log book has been kept for the vehicle for a minimum of 12 weeks. It is not sufficient for the employment agreement to simply state that the vehicle cannot be used for private purposes. In the event of an ATO audit, the business will need to prove what the actual business usage of the vehicle was via a log book.

Whilst there are some exemptions available for certain types of vehicles (mostly utes and trucks), they are dependent on the only private use of the vehicle being for the employee to travel directly from home to work, with no other private usage. Unfortunately, if an employee drops their children off at school each day in the vehicle, or they do the shopping on the way home from work, then the vehicle would not be exempt from FBT. Again, the only way to ensure that the vehicle will satisfy the exemption is to ensure that a log book has been kept.

The FBT on a motor vehicle benefit can be quite extensive. E.g. A business purchases a car for $22,000 and allows an employee (or business owner) to drive the car home everyday. No log book is kept for the vehicle. The FBT payable on this benefit for the year would be $4,627.07.

Entertainment Benefits

Entertainment benefits arise when an employer provide food, drink, gifts and/or recreational activities to employees, associates, contractors, clients and suppliers. Some common types of entertainment benefits are as follows:

  • Staff Christmas party held at a restaurant or function centre
  • Restaurant meal at a business lunch
  • Tickets to a sporting or theatrical event
  • Staff conferences and weekend retreat

There are various ways that these benefits can be valued for FBT purposes and there are also some exemptions available. It is important to record the following in regards to each of these benefits provided during the year:

  • Number of people provided with the benefit (including how many were employees and how many were clients);
  • Location of the event (e.g. on business premises or at another venue)
  • Total cost of the function, including a break up of the costs for each where possible (e.g. if the event includes a meal and a game of golf, the cost of each should be listed separately).

If you have any questions regarding this matter please do not hesitate to contact our office.

Please rate our service on Google Plus by clicking here.

Claire Chapman  CA

Nerang (Head Office) | PO Box 3284 Nerang East QLD 4211 | Suite 5, 39-41 Nerang St Nerang East

Brisbane Office | Suite 4, 13 Cameron Street, Beenleigh     

P: (07) 5596 5758 |  www.plantandassociates.com.au

Posted in Accountant, Bookkeeping, Business

Business Exit Strategy

If your business is part of your retirement plan then you need to make every effort to ensure that you have planned for an effective exit strategy.

Create a plan:

  • When do you plan to sell the business
  • What are you selling?  A job, A client list or a business
  • Know when and why to sell the business

Remember:  A high risk business will get a lower price.  To get the best deal for your business you need to be prepared.  If your business has a high dependence on staff members (including you) or a high dependence on just 1 – 2 clients then your business will be high risk.

Get Prepared:

  • Ensure your cash management is not sloppy
  • Ensure the business has clear title to key assets
  • Ensure any loans are properly documented
  • Ensure there are no lease issues
  • Have a Budget and show growth over the last few years
  • Avoid high client dependency (eg if 50% of your income comes from just one client you have a high dependency on that client.)
  • Ensure there are no lawsuits or disputes, ensure your Intellectual property is protected and that you have shareholders agreements.

You can increase the price you receive for your business by:

  • proving stable, sustainable and predictable cashflow
  • Excellent profit margins
  • stable management and quality workforce
  • defined systems and procedures
  • repeat clients
  • current facilities and equipment
  • reliable compliant systems and records
  • a realistic and detailed growth plan
  • lack of reliance on owners to generate revenue

The above is an example of the business advisory and virtual Chief Financial Officer services that we offer at Plant and Associates.  Give us a call and discuss your circumstances.

Posted in Uncategorized Tagged with: , , , , ,

Grow Your Business

Grow your Business

Growing your business takes time, discipline and hard work.

Most businesses fail due to lack of discipline, budgeting and planning.

  • Break your 5 year business plan down into a monthly plan for 1 year to focus on the next 12 months.
  • Ensure you set aside time each month to ensure that you reach the targets.  Consider when you need to raise prices, what new products or services you should introduce and when, consider your marketing strategy and how you are going to achieve the growth you desire.
  • Implement the strategies you have identified in your plan, review each month and where necessary adjust your strategy to adapt to changing circumstances.
  • Ensure you update your cashflow forecasts and budgets regularly
  • Have an exit plan for your business – the best time to sell is when you can show steady growth and stable cashflow.

If you need help getting your cashflow forecasts and budgets started then give us a call to get assistance.

www.plantandassociates.com.au

admin@plantandassociates.com.au

07 55965758

Posted in Uncategorized

Avoid Payroll errors – simplify your payment summary preparation

Another financial year is almost over and it will soon be time to prepare your payment summaries.  Minimise the time spent fixing errors by checking your files now.

Ensure the following details are collected and current:

  • Tax File Number
  • Full Name
  • Employment start and termination date
  • Date of Birth
  • Current Address
  • Pay information: gross salary, allowances, hourly rate, period of employment, salary sacrifice and FBT items

Ensure you report your payroll obligations in a timely manner:

  • PAYG withholding deduction from employee wages is reportable monthly/quarterly on the BAS/IAS
  • Payment summaries must be prepared and given to employees by 14/07/2016 and lodged with the ATO by 14/08/2016
  • Superannuation must be reported and paid by the 28th of the month following the quarter (eg 28/07/2016 for the June QTR).  If you are late you must complete the charge statement for late contributions.

We can prepare your payment summaries for you (Cost is $11 per summary)

We can also attend to the reporting of your superannuation contributions quarterly to a super clearance house at a cost of $132 for 1-9 employees or $187 for 10-19 employees.

If you are late remitting your superannuation we can assist you with the completion of the charge statements at a cost of $132 plus $11 per employee per reporting period.

www.plantandassociates.com.au

admin@plantandassociates.com.au

07 55965758

Posted in Super, Tax Tagged with: , ,

Sole Traders under scrutiny – don’t get caught out!

The ATO have caught over 250,000 tradies for not paying their income tax and GST, totalling $2.3 billion in tax liabilities.

The ATO is harshly scrutinising contractors.  You cant afford to make a mistake so ensure you do the right thing.

Get your book keeping up to date.

We understand that small contractors do not have enough record keeping to hire a book keeper but also don’t have the time to complete it regularly themselves. Also they are keeping their costs down so do not want to purchase an accounting package (most online systems are around $60-$80 pm.)

So we offer this service to our contractor clients.  Simply submit your invoices and documents each quarter for us to data entry directly into our system when you engage us to prepare your bas.  You won’t have to purchase an accounting package, your recordkeeping will be up to date each quarter, your bas lodged on time and all for one very low cost ($176 per BAS plus $66 per hour for the book keeping – for most sole traders that take up this package they only require one hour book keeping meaning a total of $242 per quarter).

For sole traders who require more book keeping than the above, a cloud solution using bank feeds can save you time on data entry (providing the system has been set up correctly from the beginning).  We can assist with setting you up on a cloud based solution and provide you with training.  We also have a number of book keepers that we can refer you to for setup and training.  Likewise if you require more assistance with book keeping then we strongly recommend you engage a qualified and registered book keeper.  Most charge a minimum of $66 per hour.  Be very wary of engaging a book keeper who is not properly licenced with the Tax Agents Board as without a licence they are not regulated.  It is illegal for a unregistered bookkeeper to prepare your bas and charge you a fee.  Likewise only registered tax agents can provide you with tax advice, so your book keeper should not be providing advice without a tax licence  on matters to do with tax. (note that licenced BAS agents are able to advise on matters such as GST and PAYG Withholding etc.

Posted in Bookkeeping Tagged with: ,

Questions to ask a Book keeper before you hire them

Hiring a book keeper can be a costly mistake if you hire an unqualified and inexperienced one.

Ask your potential book keeper the following:

  • What are your qualifications?  – If they will be preparing your BAS then they must be either a registered tax agent or a registered bas agent.
  • Do they have experience in your industry
  • what kind of clients do they look after
  • can they use your accounting software and can they assist you with your queries with the software
  • What fees do they charge
  • Will you get savings from your accounting bills?  (the number of clients we have come across in the past who thought they were doing the right thing by hiring a book keeper only to find out from us that the record keeping is well below standard and as a result additional accounting fees or book keeping fees will be required to rectified. )  Your book keeper is not just a data entry person, they need to ensure that all bank accounts, credit cards, and loans are reconciled, they should also reconcile the tax accounts, debtors and creditors, and superannuation.  Your book keeper should be able to provide you with regular reports from your accounting program to assist you in monitoring your business.

For referrals to book keepers please give us a call as we have worked with some very good book keepers who we are sure will be able to ensure your accounting fees stay low.

www.plantandassociates.com.au

admin@plantandassociates.com.au

07 5596 5758