2008

AUGUST Biz Tip

In June 2008, the South Australia Government passed some significant legislative amendments to the WorkCover Scheme. Are you up to speed with how these changes may affect your business?

The amendments introduced affect both the Workers Rehabilitation and Compensation Act 1986 and the WorkCover Corporation Act 1994. It is claimed that the new legislation will assist in significantly increasing return to work rates in South Australia, thereby minimising the negative impacts of injured workers remaining on the Scheme and enabling a reduction in the cost of levies paid by employers. There are also changes that affect injured workers and employers. WorkCover SA has published a guide called The WorkCover Scheme – A Guide to the Changes, which is available at www.workcover.com  

 

July Biz Tip

Imagine your frustration at discovering that while the vehicle is covered, the tools, laptop, phone and business records left inside were not, nor is the time you will now lose while you replace these items and the vehicle.

Talk to your insurance broker about the types of insurance your small business should have. Ask about…

• Business contents – fire, theft and damage, especially specific circumstances that might affect important assets such as laptops and phones
• Business interruption cover – if your premises or stock is damaged/ destroyed and you need funds to cover re-establishment or temporary relocation
• Business records cover – to re-enter all your business data if it is lost
• Travel insurance - especially medical and health matters
• Public liability - protecting you and your business against the financial risk of being found liable to a third party for death or injury, loss or damage of property or ‘pure economic’ loss resulting from your negligence
• Professional indemnity – if you provide any type of advice that affects your customer’s operations
• Income protection and Key man – to cover both business and personal income streams.

A broker is well placed to tailor products to your business needs, offer advice on legislative requirements and help identify your risks. A good broker will also see you through any claim, big or small.

The specialist knowledge and convenience offered by a broker will leave you free to get on with the job. Take the hard work out of insurance – talk to a broker now before it’s too late.

 

JUNE Biz Tip

Talk to your accountant and/or financial planner about the tasks you can do for your business or yourself at this important time of year, such as:

• Review your assets register and write off any obsolete, broken or lost items
• Pay any superannuation entitlements before 30 June to get the deduction
• Maybe pay yourself a bonus – you deserve it! Consider salary sacrifice to superannuation to maximise the benefit
• Make a tax-deductible charitable donation – help others whilst receiving the deduction.

Once 30 June is here, you should undertake a year-end payroll reconciliation of payroll, PAYGW, superannuation, payroll tax and WorkCover. This will ensure you are ready to issue Payment Summaries to your staff by 14 July.   

 

MAY Biz Tip

Until it is written down and refined, a procedure cannot be easily or efficiently replicated. A good procedures manual will greatly assist your ability to produce quality business outcomes, whether it’s processing payroll, finishing a product with perfect precision, or consistently delivering high quality customer service.

Your procedures manual will be there when you need it, such as when staff members take holidays, call in sick, or resign. You may want to take a break or free yourself up for more important tasks. Your manual will help you delegate with confidence.

Some of the benefits of your procedures manual are:

• Continuous improvement. You will know what is to be done, how it is done, in what order and what the quality outcomes must be.
• Reduced time in training new or developing staff.
• Clarification of performance management and quality expectations for your staff.
• Support with meeting compliance and statutory requirements.
• Assistance with succession or crisis planning.
• Enhanced business presentation. A potential buyer can clearly see how things are done.

So, what are the challenges in preparing a procedures manual?

Making a start.
Solution: The best plan is to just start anywhere - look for what is really important to your business.

Being daunted by the detail.
Solution: Make sure it is not too lengthy. Use dot points, lists, flowcharts and screen capture tools like Snag-it.

Overall, keep in mind that your procedures will change as your business does. The manual should always be alive and under continual improvement.

 

April Biz Tip

The FBT Year runs from 1 April 2007 to 31 March 2008. If you have an FBT liability you must calculate this, lodge a return and pay any tax due by 21 May, 2008.

Talk to your accountant regarding this calculation and to ensure you understand those expenses that may attract Fringe Benefits or are Fringe Benefit Tax Exempt, such as a laptop, mobile phone (used primarily for business), PDAs, or briefcases.

Your accountant can also advise you about the changes that have been made to minor fringe benefits, in-house benefits, the reportable fringe benefit threshold and other matters.

It is important to remember that you must keep adequate records and employee declarations to assist with your calculation.

You may be able to provide benefits to your staff as ‘staff rewards’ that are also good for business. The new Fringe Benefits Year commences 1 April 2008, so this is an excellent time to review this with your accountant.

March Biz Tip

What would happen if your laptop, computer or network crashed or was stolen? Unfortunately, it's often only when you experience this first hand that the painful consequences of inadequate procedures become obvious.

You will be coping with the loss of information and intellectual property, as well as time lost and stress gained, coupled with the frustration that it happened in the first place.

Even if you believe your business has good backup procedures, have you tested them recently?

Here are some obvious tips and procedures.

1. Chose a backup media appropriate for the size of your business.
2. Make someone responsible for backing up regularly. If it’s you, do this often - daily is best - and don’t forget to back up your emails too (for example, back up Outlook to a PST file if not using a domain.)
3. Have more than one backup.
4. Store backups securely offsite, in another office, at home or in a bank or PO box, preferably in fireproof storage.
5. Document your computer backup system and business backup plan.
6. Test your backup systems regularly.

Your business data is likely to be irreplaceable. Don’t risk it. When was the last time you backed up your data? Do it now – then review your procedure immediately!

February

Retaining an engaged and good quality workforce is a constant challenge and as an employer, you must be vigilant and creative about the benefits you offer the people working with you.

It's no longer just about an excellent salary package and a sound business culture and values. More and more employees want professional development opportunities, support for study and flexible work arrangements, such as working from home.

Many employers are looking at ideas like paid days off on employment anniversary dates or birthdays, or three to five paid days a year for community volunteering.

Is it time to review what you can offer and still be a productive, profitable business?

JANUARY

So, you've decided that 2008 is going to be a year of growth for your business. Are you well prepared? Of course, you have your complete financial plan, with cash flow to weather the inevitable 'bumps in the road', and you know your customers like the back of your hand. But are you really psyched up for growth?

Can you clearly articulate your business model? Do you have the passion for owning a business, especially the one you are in?

It's time to change your role to avoid doing everything yourself. Consider how you can delegate day-to-day operations to others and become the leader, strategic thinker and planner. If not, find someone who can work through this with you, such as a coach, or seek help from other business people, business advisers or business support organisations.

Take time out from just “doing it”. Allocate thinking, planning and review time every week. Do not allow anything to interfere with this time. You run the business. Don't let it run you.

 

2007

december

Managing customer expectations to that ‘by the end of the year’ deadline is a definite skill. It you are still handling this in December, then it’s time to realistically achieve what you can and re-negotiate the rest into 2008.

But what about your own deadlines?  Maybe it’s time to let these go and don’t make the silly season even sillier by setting yourself and others up for disappointment.  Focus on what you have achieved rather than what hasn’t happened.  Give yourself a break and then be inspired by the start of a brand new year.    

november

Check your budget every month. Go over your business plan and examine your cash flow, making certain your available funds are sufficient to meet your liabilities. It’s also important to create an emergency fund to take care of
monthly overruns. Use it when monthly costs are greater than expected and put money into the fund if you come in under budget.