Profitology

Tag: Small Business

  • We’ve always done it that way…

    We’ve always done it that way…

    One thing 2020 taught us that the old adage “we’ve always done it that way” simply doesn’t stack up anymore. The year of 2020 proved to us that there is always the possibility of undertaking tasks in more than one way, and that taking a step back to consider alternate approaches can be extremely beneficial to your business.

    When COVID-19 first struck in March 2020 I was employed as a business advisor providing support and guidance to business owners from various industries. We quickly adapted to providing this service via Zoom as many others did. One of the areas I advised in was the provision of Xero training. I was adamant up until this time that this had to be on a face-to-face basis in order to be effective. However, I was directed by my manager that I had no choice and to do my best to make it work.

    Having no other option showed me that providing Xero training over Zoom was possible and just as effective as if we were to do it in person. I have successfully delivered Xero training via Zoom on many occasions since.

    Although, this is a reasonably simple example of how I found myself needing to adapt, it highlights how even the simplest of tasks can be performed in a more effective manner if we take a step back and consider “What If?”

    It has also encouraged me to consider which other aspects I can change to create efficiencies or provide a greater service.

    As you prepare to get back in to the swing of things for 2021, I challenge you to consider how you may be able to do things differently in your business.

    Following are some prompts which may help the ideas flow:

    1.      Who made the rule…

    2.      Why do we do it this way…

    3.      What if we try…

    4.      Yes, and…

    5.      How can we achieve…

    Remember, keep an open mind and allow ideas to sit and ponder before automatically striking them out. You will be amazed at what you come up with. 

  • End the EOFY Tax Planning Panic

    End the EOFY Tax Planning Panic

    With 30 June fast approaching, we are hearing from many accountants and tax professionals about the need to undertake tax planning to minimise the amount of tax that you will pay for this current financial year.

    Now is the time to be reviewing your business profits and considering what actions, if any, you need to take prior to 30 June.

    WRONG!

    Tax planning should be a year long process. There shouldn’t be a mad panic in the last few weeks of June to spend spend spend. Your accountant should be speaking to you throughout the year to review your business results and discuss the decision making processes you choose to implement in your business, considering the most tax effective options at the time.

    Did you have plans to buy that new car? Do you really need that new laptop?

    Spending up in June to get that tax saving of 27.5% for the sake of it, is like going to the boxing day sales and showing off the bargains you got when you had no intention of buying the items in the first place.

    Sure, if you intend to buy that new office furniture then purchasing it in June instead of July makes sense. If you can hold off invoicing your customers without hindering your cash flow then this will help reduce your tax. Making your superannuation contributions prior to 30 June to get the tax deduction this year is also a sensible business decision.

    A Switched-On business owner is reviewing their business profits and business results on a monthly basis.

    A Switched-On business owner is making informed decisions considering the impact on staff morale, customer satisfaction, supplier relations and of course, cash flow.

    A Switched-On business owner is making decisions which will help them achieve their overall business objectives.

    A Switched-On business owner is making tax planning decisions all year long.

    Want to become that Switched-On Business Owner, or already are but feel that you aren’t getting the support and guidance from your accountant? Reach out for an obligation free chat.