We spoke to The Family Business Transformer Dean Robinson for his top tips in the accounting, finance and tax space and BOY did he deliver!
From decoding some of the benefits from the Budget this year, to sharing tips from some of his most successful clients – we walked away with a completely new perspective.
Get your notepad at the ready and read our full Q&A below.
What are some changes businesses can make to improve their financial position?
- Set an annual budget – then monitor it monthly or quarterly with your actual results.
- Take out debt over a shorter period – the faster you pay it off, the sooner you own it.
- Set up a weekly dashboard to monitor the 7 to 12 key business drivers in your business.
- Make an effort to understand what your finances mean other than numbers on a page.
What are some of the things the most successful clients are doing to drive revenue?
- Asking their customers and clients “how can I help?”
An offer of help is more valuable than a direct approach for work.
- Keeping in touch with their key customers even when they’re not working for them at that time.
If they’re front of mind when their customers don’t need them, they’ll be front of mind when they do.
- Being laser focussed about what they do and don’t do in business.
If they can’t do it, they don’t do it. They don’t deviate from their core business.
- Partnering with other businesses to help deliver a result that a potentially bigger business can only generate:
- combining skill sets;
- allowing cross referral opportunities; and
- providing the ability to access a new client that they would not otherwise have been exposed to.
What are some of the common mistakes new business owners make when establishing cashflow?
- Underestimating what it will cost to set up a business in the first year.
Whatever the number is that you’ve worked out, double it!
- Being completely undercapitalised when they go into business, meaning:
- They haven’t saved enough before starting their new business
- They haven’t set up finance facilities in place prior to leaving their employment for a new business life.
- Spending cash to save tax – rather than saving cash to build a financial buffer.
A new asset might be “nice” and might save tax, but if you can get by without it, you’ll be more profitable, which means you’ll have more scope to do other things with that profit later on.
- Not seeking the right advice at the very start.
It’s free to ask your mate or your family – but their advice may send you broke!
What are some of the tax/finance benefits business owners should be aware of out of the budget this year?^
- Instant Asset Write Off of any eligible asset purchased and first used or installed ready for use between Budget night (7th October 2020) and 30th June 2022 with:
- No upper limit as to the asset purchase price (except for motor vehicles that aren’t commercial vehicles).
- No limit as to the number of times that you can access the incentive.
- Job Maker plan – where the Government will provide a credit of:
- $200 per week for each eligible employee aged 16 to 29.
- $100 per week for each eligible employee aged 30 to 35.
For each new position that is created from Budget Night. Some of the conditions:
- The new employee must have been in receipt of an income support payment for at least one of the three months prior to being hired.
- The claim is for a maximum period of 12 months.
- You must have a net increase in your employee head-count.
- You must have a net increase in your total PAYG Withholding that you pay each period.
- Loss Carry Back rules where a company can, in essence, obtain a tax refund when a company:
- Reports a loss in the 2019/2020, 2020/2021 or 2021/2022 financial years; and reported a profit (and therefore paid tax) in the 2018/2019, 2019/2020 or 2020/2021 financial years.
- You can’t claim back more tax than you have paid previously.
- The legislation for this remains in the Parliament as at today’s date.
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