Talking Concepts

Setpember 2022

Staff Update

Ramona who has been the stalwart of our administration team for the past 25 years has retired.

Our long term clients would remember that Ramona previously worked for D J Marshall & Son, the practice that C&R purchased back in 1998. Ramona has worked a total of 42 years in the accounting practice.

The team at Concepts & Results wish her all the best for her retirement and the next chapter of her life.

Photo taken at her farewell lunch with some of the team

Standing L to R – Angeline, Kelly Shannon, Maggie, Rita, Ramona, Bethany, Ann, Paula, Mikaela

Kneeling L to R – Phillip, Nadia, Sue

We would like to make a warm welcome to Michael, who has joined the Administration team.

We were also sad to see Matthew Cvek leave our team. Matthew is exploring new horizons in Corporate Accounting and we wish he all the best in his new role.

Dates to Remember

21 October 2022 – Monthly BAS – September lodgement and payment due

23 October 2022 – Workcover rateable remuneration forms lodged if remuneration was more than $200,000

11 November 2022 – Quarterly BAS – September lodgement and payment due

21 November 2022 – Monthly BAS – October lodgement and payment due

1 December 2022 – Large & medium taxpayers, companies & super funds tax payment due

22 December 2022 – Office closes for Christmas break

15 January 2023 – Large & medium taxpayers, companies & super funds lodgement due

26 March 2023 – Workcover rateable remuneration forms lodged if remuneration was less than $200,000

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Interest Rates

Interest Rates that start from…

3.69% p/a Fixed Rate
3.72% p/a Comparison Rate

Based on our lender panel, ChoiceLend’s Variable Rate, provides the most competitive Interest Rate. Interest rates are correct as at 19/09/2022 and subject to change at anytime. The comparison rate is based on a loan amount of $250,000, over a 30 year term. WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees and other loan amounts might result in a different comparison rate. Terms, conditions, fees and charges apply and your full financial situation would need to be reviewed prior to acceptance of any offer or product.

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Why you need a great investment team

Source: BMT Tax Depreciation Maverick Issue 52 2022

Even experienced investors need a strong team by their side. When investing in property, the advice of the following financial and property professionals will help achieve the best outcome.

Accountant

An accountant performs a variety of accounting functions for individuals and entities, including keeping track of finances, record keeping and filing of tax returns. They have in-depth knowledge of taxation legislation and are professionally accredited. An accountant is responsible for managing property assets by tracking rent and expenses, as well as working out capital gains tax, land transfer duty, stamp duties and fringe benefits.

Financial planner

A financial planner can help investors understand the most beneficial financial investment options to grow and protect personal assets and wealth. They demonstrate how an investment property fits into an overall investment portfolio and model the cash flow and potential capital outcome over the investment time frame.

Insurance broker

An insurance broker will assess the current market to find the most suitable cover specific to an investor’s property and risk profile. Research shows that up to 83 per cent of properties are under-insured. When an investment property is destroyed, it is essential the replacement value is sufficient. To ensure a property’s replacement cost is adequate, a property investor should speak with an insurance broker with quantity surveying expertise such as BMT Insurance.

Real estate agent / Buyer’s agent

In addition to finding properties that meet the investor’s criteria, a real estate agent or buyer’s agent provides convenience, looks after often-complicated contracts and has extensive specialist knowledge in the property market. They also have access to property listings that are not yet available to the public which may result in exclusive opportunities.

Conveyancer / Solicitor

Conveyancing is an essential step when selling or buying property. A conveyancer prepares all the necessary documents required for the sale, reviews contracts, arranges financial adjustments, and ensures the property is legally transferred to the new owner.

Property manager

A property manager looks after the property on behalf of the investor. They can help make it easier to own an investment property by overseeing day-to-day management of the property including administration, finding tenants, setting and collecting rent, arranging maintenance and repairs, conducting inspections and evictions while ensuring all processes, procedures and tenancy requirements align with current legislation.

BMT Tax Depreciation

Tax deductions should be factored in when assessing the viability of an investment property. A tax depreciation specialist, such as BMT, can give an estimate of the likely tax depreciation deductions before a property is even purchased. A tax depreciation schedule should then be ordered as soon as a property is purchased to start claiming depreciation deductions for capital works deductions (Division 43) and plant and equipment deductions (Division 40). Only a tax depreciation specialist like BMT Tax Depreciation can be relied upon to maximise claims while maintaining detailed knowledge of all current ATO Tax Rulings relating to depreciation.

The team at Concepts & Results can provide you some of the above advice and refer you to specialists in the areas of expertise that we do not provide.

C&R is going Paperless

At the beginning of 2019 the team at Concepts & Results made a commitment to be completely paperless, and we are nearly there. Closing the office during COVID slowed the process, but we are on track to hopefully be completely paperless within the next six months.

We are currently scanning the Company, and Trust Compendiums, which is our final stage. If you have a Trust or Security (Bare) Company you will receive in the mail the original Trust Deed/Settled Sum/Security Deed for safekeeping. The only time you are usually required to provide the original document is when opening a bank account or settling a property. C&R have all the documents scanned electronically and can provide certified copies when and if required.

Relay for Life

We all know someone personally who has been effected by Cancer so after a 2 year hiatus due to COVID, we are back with Relay for Life, raising funds for the Cancer Council and this time we are “Legging it for Loved Ones”!!

On Friday the 3^rd March 2023 our team will be walking for 24 hours to raise valuable funds for Cancer Council research and support.

To donate to our team go to – https://www.relayforlife.org.au/fundraiser/conceptsresults

If you would like to join in the fun and walk with our team, please join us at Akoonah Park, Berwick from 6pm on Friday 3^rd March. We welcome anyone to come along and walk with us for however long you want to.

Important information for company Directors

As a company director, under new legislation, you’re now required to obtain a director identification number (director ID). A director ID is a unique identifier that you keep forever. It’s free to apply and you only need to apply once.

If you are a company director appointed prior to 1 November 2021, you must obtain your directorID by 30 November 2022. New directors should apply before they are appointed.

What you need to do

The fastest way to get a director ID is to apply online using the myGovID app. If you can’t get a myGovID, the best way to apply for a director ID will depend on your situation.

Find out how you can apply for a director ID on our website at abrs.gov.au/DirectorID

You must apply for a director ID yourself. No one can apply for you. The reason for this is you need to prove your identity when you

apply.

Penalties may be applicable if you don’t apply for a director ID. We’ll consider the circumstances of those that don’t apply on time when deciding what action to take.

What happens next

Once you have your director ID, keep it safe until you need to use it. It can be shared with your accountant, company secretary, ASIC registered agent or tax professional.

You don’t need to provide your director ID to ASIC. When the ASIC companies register is transitioned to ABRS in the future, your director ID will need to be linked to the companies that you are a director of. We’ll keep you up to date with any changes that may affect you.

How director ID will help honest businesses

Director ID is the first service delivered by the Australian Business Registry Service and will help to

prevent the use of false and fraudulent director identities
make it easier for external administrators and regulators to trace directors’ relationships with companies over time
identify and eliminate director involvement in unlawful activity

For more information about ABRS and director ID, visit abrs.gov.au/about-us, or contact our office and speak to Sue.

Deciding if you want to buy/rent?

As scams evolve, so can you

Source: Macquarie

Scams are growing in sophistication every day. We’re here to help raise your awareness and increase your scam prevention knowledge so you can spot scams and protect yourself against them. We all have a role to play.

Think twice before you act

Pause: Were you expecting this call, email or offer? Take a second, breathe, and think. Does this feel right? If in doubt, don’t act.

Process: Have you been asked to respond to something urgently such as a delivery notification or request for bank details? Before actioning, take some time to think through whether this is a legitimate piece of correspondence. If you’re unsure, ask someone you can trust.

Proceed: Always navigate to the organisation’s website yourself to log in.

It only takes one slip up –

Scammers are evolving their techniques to become more convincing, with sophisticated emails and carefully crafted imitations.

If something feels wrong, your instinct is probably right.

Make sure you know what to look for. Take a moment to pause and think twice before you act.

Scams have rapidly evolved.

Scammers are always on the lookout for new opportunities, which means you need to stay one step ahead in understanding how to protect your personal information and financial accounts.

Four ways to stop a scammer in their tracks

Scammers prey on our sense of belief, our legitimate concerns, our insecurities and our curiosity. The key to resisting is to stop and think about the validity of an offer or solicitation.

For example, if substantial and low-risk returns were possible, then why wouldn’t a reputable financial institution offer them?

Scams have evolved over the years, but the keys to protecting yourself remain the same: be sceptical, deal only with people you know you can trust, conduct multi-layered due diligence and educate yourself about your investments and options. Here are our top four tips for protecting yourself.

If it seems too good to be true, it probably is

Investment opportunities that offer fast results and returns well above market rates can be at high risk of being a scam. Often, scammers capitalise on the popularity of a trend or asset class – such as cryptocurrency – to make their offer seem appealing and genuine.

The bad news is that once your money is gone, it can be a major challenge to recover your funds. Some people may be tempted to take a high-risk approach, believing their bank can recover their money if an opportunity turns out to be a scam.  

However, if you’ve been scammed – if you’ve handed over money or given strangers access to your accounts – then your chances of getting your money back are limited. 

Invest with professionals you know, not strangers

If you have funds to invest, consider using a licensed financial adviser and always engage with people or institutions you know and trust. Don’t play into a scammer’s hands – these individuals are incentivised to be charming and knowledgeable, to show understanding and empathy. 

Ask yourself: if someone you’d never met knocked on your front door and asked for a substantial deposit, on the promise they would return it 10 days later, plus interest – would you contemplate it? It should be immediately clear that this offer is suspicious and dangerous.

When you respond to an unsolicited offer and hand over money or access to your financial and personal details, you’re engaging with that stranger at your door, and putting yourself at high risk of financial loss.

“If someone you’d never met knocked on your front door and asked for a substantial deposit, on the promise they would return it 10 days later, plus interest – would you contemplate it?”

Do independent research and due diligence

When an opportunity comes along that you’re interested in, make sure the research you do on the offer is independent and from reputable and trusted sources.

For example, government websites including the Australian Competition and Consumer Commission (ACCC) and the Australian Securities and Investment Commission (ASIC) often have information on current scams in circulation.

Using credible and publicly available information is also one way to cross check the validity of the person and business contacting you. Be wary that scammers can go to great lengths to appear legitimate, including using the name and job title of someone who works at a known institution.

The critical part of this is ensuring you source these details independently. For example, if you receive a cold call, take a name and then obtain the business phone number from an independent source to complete your research. Don’t rely on the number provided by the individual you are speaking with on the phone.

In short, don’t assume the information you’re given is legitimate. Cross-check from sources unconnected to the offer. Better still, check with your financial adviser. 

“Using credible and publicly available information is also one way to cross check the validity of the person and business contacting you.”

Don’t rely on someone else to protect you

Banks and financial institutions have sophisticated software systems, designed to protect against fraud and other types of unwanted interference with your bank accounts.

But you should never assume that technology will protect you and keep you safe at all times. Scammers know the easiest way into an account is through the person who holds it. That puts the onus back on customers to treat any offers with a healthy amount of scepticism.  

The good news is that there are many resources you can use, and many steps you can take, to protect yourself. Respect your funds and the effort it’s taken to accumulate them. Be cautious, do your homework, call on the experts and never respond to time pressures or threats. 

After all, it’s your money – and you want to keep it that way. 

THE MYTH OF DEBT CONSOLIDATION

There are many ways to get out of debt and there are a lot of personal finance, debt consolidation and refinancing products on the market that make big promises about slashing your debt and saving you years in repayments but do they actually help you reduce debt faster?

Theirs is a common misconception that the only way to get out of debt is to consolidate it. This is fuelled by advertising claims like “get out of debt—consolidate and slash your repayments!”

Consolidating your debt is just one strategy. It can work well in some circumstances, but it’s not always the best and only solution for everybody. There’s more than one way to get out of debt. That’s why it’s important that you understand and consider your options before making a decision, seek expert advice and build a debt reduction plan that fits you best is the key.

Securing a loan with a lower interest rate that consolidates your debts may be a good option for you as the debt consolidation loan should lower your overall cost of repayments by combining your high interest rate loans (credit cards, car loans etc.) into one loan that has a lower repayment. The new loan should streamline your payments and improve your cash flow to help you make extra repayments that will help you pay off your debt faster.

Most lenders only offer debt consolidation loans to borrowers that have real estate equity as security. It is also known as property refinancing, where equity in a property can be used to pay off credit card and consumer debts. It sounds straight-forward – you pay off your consumer debt, consolidate your high-interest loans into one payment, and have more money left over at the end of the month.

Unfortunately, it’s not always that easy. Consolidating your debts into a lower interest rate loan can certainly help your household budget in the short-term by freeing up cash flow. But what you do with the cash flow is the key.

You should also consider the longer-term opportunities associated with improving your cash flow, such as, being able to invest part of the extra cash flow into capital growth assets, such as an investment property that could be part of your debt reduction plan or perhaps using the extra cash flow to salary sacrifice and boost your superannuation and reduce your personal tax.

Debt consolidation loans are not for everyone as they can be difficult to qualify for. People who are already behind in payments or have defaults on their credit file may not be eligible. There are of course companies that specialise in lending to people with poor credit histories, however those loans usually attract higher than average interest charges which can make the repayments unaffordable and there for defeats the purpose.

Unfortunately, when it comes to paying off debt faster, there’s no magic wand or one-size-fits-all solution. We don’t believe in quick fixes – we want to begin to relieve your financial stress and get you back on track in a way that suits your situation and priorities. We do that by thoroughly examining your alternatives and designing a tailor-made solution that meets your needs.

The first step is a free debt reduction consultation where we’ll analyse your situation in detail. This will include a close examination of your debts, other expenses, sources of income and, of course, a clear understanding of your financial objectives. Even if you decide not to continue with Results Home Loans, a blue print of your debt reduction plan we design for you is yours to keep for free.

Unlike companies that specialise solely in debt consolidation, we explore your options. Our friendly staff will explain everything in simple, easy to understand language. No question or situation is too big or too small for us. We’re here to help.

7 WAYS TO REDUCE YOUR MORTGAGE FASTER

Skip the honeymoon

Beware of lenders bearing gifts. Introductory or honeymoon rates have long been an important marketing tool for lenders. You are initially offered a cheap rate on your loan to get you in the door but once the honeymoon period is over, the lender will switch you to a higher variable rate of interest.

There are two problems with this scenario. First, the variable rate is often higher than some of the lower basic loans available so you could end up paying more. Second, you need to clearly understand that a honeymoon rate applies only for the first year or two of the loan and is a minor consideration compared to the actual variable rate that will determine your repayments over the next 20 or so years.

You may also be hit with fairly steep exit penalties if you want to refinance in the first two or three years to a cheaper loan. So make sure you fully understand what you are letting yourself into before setting off on a “honeymoon” with your lender.

Pay it off quickly

Time is money. There are all sorts of strategies for paying less interest on your loan, but most of them boil down to one thing: Pay your loan off as fast as you can. For example, if take out a loan of $300,000 at 5.13% for 30 years, your repayment will be about be about $1,634. This equates to a total repayment of $588,380 over the term of your loan.

If you pay the loan out over 10 years rather than 30, your monthly payment will be $3,201 a month (ouch!). But the total amount you will repay over the term of the loan will be only $384,130 – saving you a whopping $204,250!

Calculate your loan repayments using a mortgage calculator.

Make more frequent payments

The simple things in life are often the best. One of the simplest and best strategies for reducing the term and cost of your loan (and thus your exposure should interest rates rise) is to make your repayment on a fortnightly or weekly rather than monthly basis. How can this make a difference I hear you ask? It works like this:

Split your monthly payment in two and pay every fortnight. You’ll hardly feel the difference in terms of your disposable income, but it could make thousands of dollars and years difference over the term of your loan. The reason for this is that there are 26 fortnights in a year, but only 12 months. Paying fortnightly means that you will be effectively making 13 monthly payments every year. And this can make a big difference.

Using our example from above, by paying monthly, you will need to repay $588,380 over the term of your loan. By paying fortnightly, you will save $54,151 in interest and 5 years off the loan. Zero pain to you, major benefit to your pocket.

Consolidate your debts

One of the best ways of ensuring you continue to pay off your loan quickly is to protect yourself against interest rate rises. If your home loan rate starts to rise, you can be absolutely positive about one thing – your personal loan rate will rise and so will your credit card rate and any hire purchase rate you may happen to have.

This is not a good thing as the interest rates on your credit cards and personal loans are much higher than the interest rate on your home loan. Many lenders will allow you to consolidate – re-finance – all of your debt under the umbrella of your home loan. This means that instead of paying 15% to 20% on your credit card or personal loan, you can transfer these debts to your home loan and pay it off at 5.13%.

As always, any extra repayments or lump sums will benefit you in the long run.

Split your loan

Many borrowers worry about interest rates and whether they will go up but don’t want to be tied down by a fixed loan. A good compromise is a split loan, or combination loan as they are often known, which allows you to take part of your loan as fixed and part as variable. Essentially this allows you to hedge your bets as to whether interest rates are going to rise and by how much.

If interest rates rise you will have the security of knowing part of your loan is safely fixed and won’t move. However, if interest rates don’t go up (or if they rise only slightly or slowly) then you can use the flexibility of the variable portion of your loan and pay that part off more quickly.

Stay Informed

By staying informed about what is going on in the home loan market, you might be able to stay a step or two ahead of your lender. And if you can stay one step ahead, you are already on your way to paying of your mortgage faster.

Knowing current rates can ensure your lender is still competitive and if they have fallen behind, ask for a discount or request your broker to do this for you! Even a small discount or having some ongoing fees waived can mean the difference of years and thousands of dollars off your mortgage. If they don’t come to the party, it might be worth looking at refinancing however, before you jump the gun, check out what it will cost you to switch loans. For example, there may be exit fees payable on your old loan and establishment fees on your new loan. Work it all out or get your broker to compare any possible savings that might be available to you. If it makes sense, go for it and don’t be afraid of smaller lenders!

Since the advent of the mortgage managers over the past five or six years there’s been a lot of talk about smaller and “non-traditional lenders” and how they have forced interest rates down. With the property boom, plenty of opportunities sprang up for smart lenders with low fees willing to take on traditional lenders and many have done very well indeed.

Some borrowers worry about what might happen if their lender gets into financial trouble. Keep in mind that you’ve got their money – so don’t worry too much. There are some smaller lenders whose names might not be familiar but whose rates might be enough reason to get in touch.

Some lenders also offer discounts to specific professional groups or members of professional organisations. Ask your lender or get your broker to research if your occupation qualifies you for any discounts. You might be pleasantly surprised!

Run an offset account

Instead of earning interest, any money you have in your offset account works to offset the interest you are paying on your home loan. An offset account is a transaction account that can be linked to your home or investment loan. The credit balance of your transaction account is offset daily against your outstanding loan balance, reducing the interest payable on that loan. For example, you might have a $300,000 loan and $15,000 in your offset account. Because of your offset account, you will only be charged interest on the balance of $285,000.

It also pays to have your wages paid into your offset. For example, if you get paid weekly or fortnightly, or even monthly, and those funds sit in your offset account for a few extra days per month, you could save a few hundred dollars in interest every year. It doesn’t sound like much, but it all adds up as the interest debited at the end of the month is usually calculated daily.

Why you should use a mortgage broker

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DO YOU KNOW YOUR CREDIT SCORE

Your credit report (also known as a credit file) is one of your most important financial assets. Safeguarding this report is an important part of the finance application process. The Privacy Act was amended in December 2013 to allow financial institutions to share your credit liability and repayment history including whether your payments have been made on time OR NOT.

All this information is held in your credit report.
Your credit report contains a history of your credit related financial information within the past five years including:

credit enquiries/applications
monthly repayment history
overdue debts and credit accounts
payment defaults (also known as clearouts),
account open and close dates
bankruptcy
court judgements and court writs
commercial credit information
public record information

Your credit score (sometimes referred to as a credit rating) is calculated from your credit report.

Did you know that a score of less than 500 will severely affect your ability to gain finance from many lenders? Do you even know what your score is or how easily it can be affected?

What is a credit score?
Credit scoring is a mathematical assessment of the data included in your credit report. The credit score is calculated by the credit reporting agency using a number of complex formulas. The score shows the likelihood of your defaulting on your credit payments within the next 24 months. While the score range may vary between credit agencies as a general rule scores range from 0 to 1,200. The higher the credit score the lower the risk that you will default. A score of around 550 will indicate that you are an risk.

Credit reporting
In Australia there are two main credit reporting agencies:

Veda
Dunn & Bradstreet

Your credit report is very important as it provides the information used to calculate your credit score. You can access a copy of your personal credit report through www.mycreditfile.com.au – normally at no charge. You will have a credit report if you have applied for any form of credit. This can include:

phone, internet or utilities contracts
credit cards
residential or personal loans
hire purchase

So what factors affect my credit score?
The exact formula used is a closely guarded secret that not even the lenders know.
What we DO know is that there are some behaviours that will affect your score that YOU can control, for example:

late payments
overuse of credit
limiting the number of credit applications

Case Study:
I didn’t realise that was recorded on my credit report!
We have had clients lodge a loan application with us only to be rejected due to a poor credit score. When we investigated the case we found there had been multiple credit enquiries listed in a short period of time. What the clients didn’t realise was that every time they were offered (and accepted) a new credit card (at their local grocery store and service station) these services were individually lodged as a credit enquiry.

Our clients had also sought preapproval from various lenders while they were searching for a new home. These preapprovals were also listed as a credit enquiry. When the time finally arrived to acquire their home loan, it appeared they had submitted many applications for a range of credit over a very short period. This history resulted in a low credit score and subsequent rejection by the lender.

Surely the lender can understand what really happened?
Unfortunately many major lenders are now treating credit scores as a black and white decision.
If your score is too low then the loan application will be rejected – no questions or discussion!

What should I be doing?
Be conscious of the importance of your credit report and make sure you meet all your credit obligations. If you are considering refinancing in the next couple of years, be aware of all agreements, preapprovals and enquiries you make (where you sign a privacy agreement) as these will generally result in an entry on your credit report where they will stay for 5 years.

Disclaimer: This article is generic in nature. All finance and investment decisions should be considered wisely and based on your personal and financial circumstances.
Seek proper advice before committing to any course of investment action.
This is not deemed as advice.

Unpacking inflation: what does small business need to know?

Inflation has hit small business hard, writes Xero economist Louise Southall, but there’s plenty you can do to prepare for (and minimise the impact of) tough economic conditions.

Compared to recent years, the world is feeling a little different in 2022. The worst of the pandemic may be behind us, but ongoing global and local disruption mean the road to recovery remains bumpy. In particular, many small business owners are feeling the effects of economic turbulence, with rising expenses and hiring challenges.

According to a new report from Xero, 92 percent of Australian small businesses experience at least one negative cash flow ‘crunch’ month a year. This is when monthly expenses are greater than monthly revenues. For 20 percent, this happens more than six times annually. So as the cost of living continues to climb, juggling expenses and revenues will likely only become trickier.

That means now is the time to take action and prepare for whatever lies ahead. Here’s what’s happening in the economy (both now and what’s expected in the near future) with tips to help your business stay resilient.

How does inflation impact small businesses?

Every quarter, the Australian Bureau of Statistics (ABS) announces what’s known as the Consumer Price Index (CPI). This is how we measure price rises, otherwise known as inflation.

It’s calculated by looking at the total cost of an average Australian household’s shopping basket compared to the same quarter in the previous year. In June, price rises climbed to 6.1 percent year-on-year. This is particularly high, as the Reserve Bank of Australia (RBA) is trying to set interest rates to see inflation sit between two and three percent.

Inflation largely impacts small businesses in two big ways:

1. Business costs rise

The first is that business costs – like fuel, energy and rent – rise , all while small business owners have minimal negotiating power to change things.

2. Customers spend less

The second is that customers tightening their wallets. More people begin diverting spending away from small businesses in order to pay for their mortgage, bills and other essentials. This leaves business owners in a tricky situation, as many will need to raise their prices to cover escalating expenses, but not so much in case they lose customers as a result.

How is the wider small business community faring with all these changes?

Good question. After almost three years of turbulence, it’s fair to say small businesses have learned to expect the unexpected. So we’re seeing the community adapt to inflation – for now.

According to our latest Xero Small Business Index (XSBI) results – a single measure that uses anonymised and aggregated data to track the performance of small businesses each month – employers are still hiring (as jobs growth rose to +2 percent year-on-year in June) and customers have kept spending (with sales growth at a healthy +10.6 percent year-on-year). However, the months to come may be a different story.

The longer inflation remains high, the harder it will be for small business owners to balance expenses and price increases. The XSBI data shows that once price rises are taken into account, sales are actually falling for our international neighbours in the UK and New Zealand, where costs are rising faster than in Australia. We have an opportunity to learn from their experiences by getting ready for what could come next.

So what can you do to prepare?

There are several things small businesses can do to prepare for (and minimise the impact of) tough economic conditions. Here are some examples:

Understand your cash flow

To make informed decisions on things like spending, budgeting and price changes, you need to have a clear, detailed understanding of your incomings and outgoings. Take a forensic look at your numbers to determine where you’re at.

Create a game plan

During uncertain times, it helps to have a business continuity plan at the ready. Essentially, this is your go-to guide to keep your business running during a disruptive period or event. If you don’t know where to start, plenty of guides and templates are available online.

Go digital

Automating invoice payments and reminders with apps like GoCardless or Stripe can help small businesses get paid faster and boost cash flow. So invest some time into exploring what digital tools are out there and how they could benefit your business.

Get government agencies on your side

If you find yourself with a short-term cash flow dilemma, many government agencies (like the ATO) will be inclined to help you out of it (especially if you have a good track record). The earlier you get in touch, the sooner they can set you up with a solution like a payment plan.

Stay close to your advisor

If you’re unsure where to start with any of the points above, get in touch with your advisor. They can support you with all things numbers-related, as well as systems or processes that will help you run your business more efficiently.

Although uncertainty has become the new norm, it’s important to remember that the small business community has weathered all sorts of challenges with incredible grit and resilience. Now is the time to stay ready to tackle whatever’s thrown your way head-on.

Visit us

Want to discuss the above face to face? Come visit our specialised team members to find out more.

612 Warrigal Road, East Malvern PO Box 61, Holmesglen, Vic 3148

Call us

Have any questions? Further discussions on the above can be may be held over a telephone appointment.

(03) 9569 5676

Contact us

For any and all queries regarding the above, you may contact Concepts & Reuslts by emailing us

concepts@cr.com.au