The Christmas New Year holidays give us time to relax and often consider what we will do in the year ahead. Many are returning to work and looking to undertake study to improve career prospects, change jobs or improve a business. You may be looking to set up a new business or expand an existing one. Talk to us at the Business Growth Centre to discuss your training options and take a look at our available offices and light industrial sheds. Could be just what you are looking for to start 2019.
Dear colleagues and members,
With a heavy heart, we announce with great sadness the loss of one of the longest standing Board Members at the Business Growth Centre, Gordon Hughes. We are deeply saddened to announce that Gordon Hughes passed away yesterday.
Gordon’s brilliance, passion, and energy were the source of countless business opportunities that enrich and improve all our lives. His enthusiasm to serve and deep love for the Business Growth Centre will be remembered forever.
Our hearts go out to all his family and to all who were touched by his extraordinary gifts. Our thoughts and prayers are with his family and friends during this sad time. Rest in peace Gordon.
Chief Executive Officer
Business Growth Centre
Photo: Lake Macquarie Business Excellence Awards – 2017 Gala Dinner // Business Growth Centre – Board Members.
Instant asset write-off extended
The immediate write-off of depreciable assets costing less than $20,000 purchased by small business entities (with an aggregated turnover of less than $10m) was due to expire on 30 June 2018.
The concession has been extended for a further 12 months to 30 June 2019. The concession has been in place since 12 May 2015 and has been very popular with small business entities, particularly at this time of year.
In conjunction with this extension, the current “lockout” laws for small business depreciation rules (these prevent small businesses from re-entering the small business depreciation regime for 5 years after they opt out) will also not apply until 30 June 2019.
This means that these small businesses can also potentially still access the immediate write-off.
Small business CGT concessions
From 7.30pm on 8 May 2018, the Government proposes to tighten the small business capital gains tax (CGT) concessions to ensure partners that alienate rights to future partnership income will no longer be able to access the small business CGT concessions in relation to these rights.
This is intended to stop the concession being inappropriately accessed in relation to the assignment of a right to future partnership income to an entity, without giving that entity any role in the partnership.
Division 7A UPE rule strengthened
Division 7A is an integrity rule that requires benefits provided by private companies to their associates to be taxed as dividends unless they are made subject to a complying division 7A loan or another exception applies. Since 2009 the ATO has considered that unpaid present entitlements (UPEs) to corporate beneficiaries of a trust (distributions that were made to the company but not paid) may be subject to Division 7A but also subject to special rules.
From 1 July 2019, the Division 7A legislation will be amended to ensure that UPEs come within the scope of Division 7A.
The Government also announced that it would defer the start date of proposed changes to Division 7A announced in the 2016-17 Budget from 1 July 2018 to 1 July 2019.
Circular trust distributions
From 1 July 2019 specific anti-avoidance rules regarding circular trust distributions will be extended to include family trusts.
The measure applies to stop ‘round robin” trust distributions, where a distribution ultimately returns to the original trustee – in a way that avoids tax being paid on that amount. Tax on such a distribution will be imposed at a rate equal to the top personal tax rate plus Medicare.
For more information please contact us 02 4942 3133 or email us at firstname.lastname@example.org
We want to wish you a happy Easter break. Our Centre will be closed 4:30 pm today 29 March and reopen 8:30 am Tuesday 3 April.
For more information, please contact us on (02) 4942 3133 or email us at email@example.com
When it comes to managing and growing a successful business, cash is king! While you might plan to bring in a large profit over the next year, you will find reaching your goals difficult without the cash coming in to cover any expenses and costs.
No matter your industry, business size and the services or products you provide, maintaining a healthy cash flow is key to planning, budgeting for future growth and being prepared for any business fluctuations.
From staying on top of your accounts and collecting your receivables as fast as possible to slowing down your costs without damaging the relationships you have with suppliers, there are a few ways you can boost your cash flow.
1. Create a cash flow forecast.
First things first, do you have an idea of how much money your business will bring in and spend next month? What about over the next 12 months? It’s essential to first get a grip on how your cash flow is currently performing and where it is likely to go in the future.
Creating a cash flow forecast will help you offset uncertainty by predicting any potential peaks and troughs for your business’ finances. Often small to medium sized business owners aren’t prepared for the costs associated with growing your business quickly, however movements in your cash flow can be predictable if you plan ahead.
Your cash flow forecast should list any payments you expect to make over the next year – this might include equipment, wages, office rent, taxes and loan repayments. Next, list the income you expect to achieve from your services or products. Now subtract the cash going out from the cash coming in to determine how much you can expect to have in the bank at any one time. Keep an eye on your cash flow so you can track when your highs and lows are and better plan for bigger investments in resources or downtime for your business.
2. Speed up your cash flow processes.
Does getting paid on your terms and to your timeline sound too good to be true? As a business owner, you might need to become more ruthless with your invoicing policies to ensure you have the cash flowing in when you expect it.
Introducing a payment policy with strict terms and a shorter timeframe will help speed up cash coming into your business. List your payment terms clearly on your invoices and follow-up any late accounts. Make it as easy as possible for your customers to pay you by offering a range of payment methods. Also consider offering a small discount to customers who pay your invoice sooner or charge interest to any customers who pay late.
3. Negotiate payment terms with your suppliers.
If you outsource work to a supplier or contractor, you may find yourself having to pay their invoice/s prior to receipt of payment on your customer’s invoice. If this is not managed effectively and you don’t already have an emergency budget in place, you may find yourself in a challenging financial position.
It’s important to understand each of your supplier’s processes and, where possible, negotiate longer terms to provide time for you to bill your clients and collect payment prior to paying your suppliers.
4. Use an online tool to manage your finances.
While an Excel track sheet can work perfectly fine, it can also be resource-heavy. Invest in your cash flow by using a digital tool that will help streamline your financial processes. Tools like QuickBooks and Xero can help organise and automate your billing schedule, reducing your workload and allowing you to better keep an eye on what is coming in and what is going out of your business.
5. Improve your financial skills by getting expert advice.
Cash flow management strategies are critical for businesses, but they are often an ongoing challenge. While there are plenty of digital tools and resources that aim to help you tackle your cash flow needs, sometimes spreadsheets and templates aren’t enough. Accessing expert advice can help you to become more informed and make better decisions about the outgoing and incoming of cash for your business.