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  Boost Your Business' Cash Flow
 
Maintaining appropriate cash flow is a critical component of running a successful business.

Despite this, running out of liquid capital is one of the most commonly cited reasons why small businesses fail. Monitoring cash flow and planning accordingly is important at every stage of the business life cycle; however, it is especially critical that businesses experiencing rapid growth remain acutely aware of their cash availability.

Maintaining positive cash flow can be a struggle for many businesses but setting realistic goals for cash flow management can help make a business profitable and generate enough cash to offset monthly expenses.

Make it easy

Making it easy for customers to pay you on time is one of the best ways to ensure they do. Whether that involves investing in some new technology, taking your invoicing online or implementing some new payment methods; making sure it is easy for customers to pay you on time can pay off in the long-term.

Use an automated follow-up system

An automated follow-up system will send recurring reminders to your accounts receivable at pre-set dates. This helps to keep track of the status of your accounts and can reduce time and human error.

Invoice quickly

You need to invoice your clients as quickly as possible, as there will already be a delay between them receiving the invoice and making the payment. Many businesses inadvertently shoot themselves in the foot by failing to invoice in a timely manner.

Prepare cash flow projections

Seasonal businesses should estimate year-round revenue and expenses in a detailed cash flow forecast and budget. This involves forecasting and reporting month by month and including the balance sheet, profit and loss statement and cash flow forecast. Also, be sure to prepare for cash demands that may not appear on the profit and loss statement.

Re-evaluate your pricing

Evaluate your business' current pricing strategy; are your prices too affordable or expensive? Think about how they compare in terms of price and value to your competitors. To remain competitive, prices need to be constantly reviewed to ensure your price point improves (not hinders) your cash flow.

If you need help in analysing your cash flow, contact your Harris Black team member today.


 
  Habits To Kick If You Want Success  
 
As good as it sounds, you aren't going to gain all of your success overnight. You will need to work hard and push yourself to achieve greatness. There are some common bad habits that can interfere with your business success, so focus on the following tips:

Distance yourself from negative energy

You may not realise the influence that negative energy can have on you and your drive to succeed. Doubters and naysayers can seriously tarnish your vision and adversely impact on your own energy. The type of people you need to if you want to surround yourself with assertive, resilient, risk-takers.

Stop saying yes to everyone

To reach your goals and succeed, you will need to be picky; saying yes to everyone and everything will mean that you spread yourself too thin. You will end up not devoting enough time, energy, resources and passion to what it is that will truly make you succeed. Focus in on what you need to do to achieve your goals.

Quit neglecting your health

You cannot overlook your health if you want to succeed, and enjoy your success. A healthy body and a healthy mind means that overall you will be a happier person, and happy people are a lot easier to work with and to work for. Getting to a stage where you feel like you've achieved what you wanted career wise can be draining, and a lot of people burn out without ever making it to where they wanted. Ensure you make time to fuel yourself correctly and keep active.

Stop making excuses

When you stop making excuses and blaming other people, other situations and the universe for why things don't go the way you picture, you will open yourself up to being practical and present in achieving your goals. You can complain all you want about why things are the way they are but it's just wasted energy; it isn't going to bring you any success.

Give up being a perfectionist

Fear of failure will prevent you from achieving greatness. Failure is a powerful tool; use it to help you grow and learn from your mistakes. It can provide you with an insight on how to do better and be better.

Quit repeating the same mistakes

Making mistakes is a part of business; no one is perfect, and failure is an opportunity for growth. However, making the same mistakes over and over is cause for concern. If something does not work; tweak and rework your approach. If you want to see improved results, stop trying the same thing repeatedly.

Limit mindless use of technologies

Down time and relaxing is important, but at the same time you can easily lose countless hours or even half a day just by getting lost on social media or gaming. It's important to have an outlet because it helps you unwind and de-stress, but be mindful of how much time you spend on (or waste) on technologies. Certain technology and web use may be helpful for brand development and marketing, just make sure if you're spending hours on social media, it's going to benefit your business.


                
    Harris Black's Digital Tool Box – 'Xero'  
   
Digital technology provides great opportunities to amplify the impact of your business activities and practices.

Gone are the days where you need to do everything manually within your practice like ordering, logistics, payments and receipts, marketing, HR, motor vehicle log book and so many more.

Every month, Harris Black will showcase a digital tool that will surely improve awareness, knowledge management, communication, and productivity within your business practice.

In this issue, we give you Xero.

Xero is a cloud based accounting system that makes it incredibly easy to keep your accounts up to date and makes your financial information available everywhere.

Xero is all you need to run your business:
  • Dashboard – A real-time view of your business at a glance, including bank balances and money coming in and going out.
  • Online – Access to your accounts anywhere and at any time. Your data is secure even if your computer is lost or stolen.
  • Work together – Give your accountant access so they can work on your books from anywhere and offer better advice.
  • Unlimited users – All for one monthly fixed price.
  • Banking – Connects with your bank accounts making reconciliations simple and accurate.
  • Reporting – Generate and view interactive reports with ease.
  • Invoicing – See at a glance who owes you money. Customise, create, send and receive invoices.
  • Support – Unlimited, around the clock email support and detailed online help centre.
 
Source: Xero Youtube Channel

Xero is a competent accounting management system that works in line with businesses' rules and priorities, and manages money in and out of their budgets in a way that will coincide with your business goals and long-term mission.

Harris Black is proud to be a Xero silver partner.
 







    Harris Black Top 10 – Tips To Improve Business Cash Flow 
   
Business of all sizes is a game of profit, revenue and expenses. If these three aspects of your business are out of tune, sustaining a business will prove to be difficult.

Cash flowing into your business is necessary to pay your employees salary, purchase new stocks and materials, etc. – the bottom line is… for your business to keep on going.

In this month's edition of Harris Black Top 10, we will give you some top tips on how you can improve your business cash flow.

Let the cash flowing begin!

1.   Arrange for a longer credit days with supplier.
2.   Set a budget and try to stick to it.
3.   Lease equipment rather than purchasing.
4.   Send invoices out immediately.
5.   Deposit cash balances in an interest-earning account.
6.   Sell or retire excess and obsolete equipment or inventory.
7.   Require an initial fee on projects or services and set your terms to be   paid in full upon completion.
8.   Re-evaluate and fine-tune the pricing of your products and/or services.
9.   Create incentives for early payments and penalties for late payments.
10. Identify and minimise any waste in your business.
  
Contact your Harris Black team member if you would like assistance with a waste audit. 



    Avoid Taking These Business Shortcuts 
   
When looking to establish or improve your business - saving money is a smart strategy, but trying to cut certain corners can also be a downfall. There are certain areas you should invest in and perfect, those being:

Technology

You will only survive for a short time if you do not have current and efficient technology. To stand out in a good way. To effectively stand out against your competitors, you will need a website that looks contemporary and on trend. To have the most productive workplace, you will need great technology; you will need fast Wi-Fi and the best tools to develop your product.

Marketing

Businesses with a strong marketing strategy do well; better than those with no or a poor marketing strategy. A powerful marketing plan will be one that knows important factors that will allow your product or service to be successful, such as knowing your target audience, knowing your competition and what they are providing, etc.

An accountant


Hiring an accountant means one extra expense, which is why many business owners are tempted to go without. Investing in accountant is beneficial; not only will they ensure you meet your compliance obligations but they can also help you to make practical financial decisions for your business. That way you can focus on your business goals and leave the financial aspect to a professional.


    
    Scam Alert: Scams Targeting ASIC Customers 
   
Scammers pretending to be from ASIC have been contacting Registry customers asking them to pay fees and give personal information to renew their business or company name.

These emails often have a link that provides an invoice with fake payment details or infects your computer with malware if you click the link.

Warning signs the email is not from ASIC

An email is probably a scam and is not from ASIC if it asks you:
  • to make a payment over the phone
  • to make a payment over the phone
  • for your credit card or bank details directly by email or phone
How do I protect myself from email scams?

To help protect yourself:

  • keep your anti-virus software up to date
  • be wary of emails that don't address you by name or misspell your details and have unknown attachments
  • don't click any links on a suspicious email
You can also check your registration renewal date; ASIC will only issue a renewal notice 30 days before your renewal date. You can search for your business name on our register and if it's outside our usual timeframe, it might be a scam.

If you have any question regarding this matter, please contact your Harris Black team member.


     
    Bill To Increase Medicare Levy 
   
The Medicare Levy Amendment (National Disability Insurance Scheme Funding) Bill 2017 has been introduced to implement the Government's 2017–2018 Budget announcement to increase the Medicare levy by 0.5% to 2.5% from 1 July 2019 in order to help finance the National Disability Insurance Scheme (NDIS). Nine other Bills have been introduced to increase the following rates that are linked to the top personal tax rate.

TIP:
Think you may be affected by personal tax rate changes? Contact your Harris Black team member to find out more.


 
    Budget Changes To Foreign Resident CGT: Draft Legislation 
   
Draft legislation has been released to implement 2017–2018 Federal Budget measures relating to the CGT liability of foreign residents. The measures, which applied from 9 May 2017:
  • remove the entitlement to the CGT main residence exemption (MRE) for foreign residents that have dwellings that qualify as their main residence; and
  • ensure that, for the purpose of determining whether an entity's underlying value is principally derived from taxable Australian real property (TARP), the principal asset test is applied on an associate inclusive basis. 


     
    Foreign Resident CGT Withholding: Early Recognition Of Tax Credit  
   
The Commissioner has made a determination to modify the time at which the vendor is entitled to a 
tax credit in respect of an amount withheld under the foreign resident CGT withholding rules.

The modification, applicable for transactions entered into on or after 1 July 2016, ensures that, where a settlement period for a transaction covers more than one income year for the vendor, the credit entitlement will be available in the same year as that in which the transaction giving rise to the payment to the ATO is recognised for tax purposes for the vendor.



 
    ATO Increases Its Scrutiny On Work-Related Expenses 
   
Despite wide publicity on the issue, the ATO has reminded taxpayers that it is increasing its scrutiny on work-related expenses. Last year over 6.3 million people made a work-related expense claim for clothing and laundry expenses, totalling almost $1.8 billion. Common mistakes the ATO has seen include people claiming ineligible clothing, claiming for something without having spent the money, and not being able to explain the basis for how the claim was calculated.

TIP:
Unsure about what you can claim as work-related expenses? Talk to your Harris Black team member to avoid making a mistake.


 
    New Downsizing Cap Available 
   
If you are aged 65 or over, your home is your main residence for CGT purposes and you have owned it for a minimum of ten years, you could benefit from new draft legislation. You will be able to make additional non-concessional contributions, up to $300,000, from the proceeds of selling your home from 1 July 2018.

The downsizer contribution cap of $300,000 will be in addition to existing caps; the capital must come from the proceeds of the sale price and application must be made within 90 days after the home changes ownership. There will also be exemption from the contribution rules for people aged 65 and above, and the restrictions on non-concessional contributions for people with total super balances above $1.6 million.

TIP: Thinking of downsizing? Speak to us about what this could mean for you in terms of tax concessions.


   
    First Home Super Saver Scheme – Draft Legislation  
   
Treasury has released draft legislation to implement the 2017–2018 Federal Budget superannuation measures aimed at improving housing affordability by the establishment of the First Home Super Saver Scheme (FHSSS).

The FHSSS will allow voluntary superannuation contributions made from 1 July 2017 to be withdrawn for a first home deposit starting from 1 July 2018. The scheme provides for up to $15,000 per year (and $30,000 in total) to be withdrawn from superannuation.

TIP:
To be eligible to use the FHSSS, a person must be 18 years or over, have not used the scheme before and never have owned property before in Australia. 



    Harris Black Is Proudly Supporting Camp Quality  
   
The Harris Black team are proud to be supporting Camp Quality over the next few months, raising funds for
children up to the age of 13 years of age who have been diagnosed with cancer. Funds raised will go towards providing family experiences, increasing awareness of cancer via education programs, child life therapy and even hospital support.  




    Important Tax Dates 
   
30 September 2017

  • Lodge PAYG withholding payment summary annual report if prepared by a BAS agent or tax agent

21 October 2017
  • Pay annual PAYG instalment notice (Form N). Lodge only if you vary the instalment amount or use the rate method to calculate the instalment.

28 October 2017
  • Lodge and pay quarter 1, 2017–18 activity statement if lodging by paper. Pay quarter 1, 2017–18 instalment notice (form R, S, or T). Lodge the notice only if you vary the instalment amount.
     
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This newsletter is for guidance only, any professional advice should be obtained before acting on any information contained herein. Neither the publisher nor the distributors can accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this newsletter. We recommend that you contact your Harris Black team member before making any decision to discuss your particular requirements or circumstances.  



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Since 1994, Harris Black has been providing accounting and advisory services to our valued clients to help them achieve their business and personal wealth goals.

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