Available support for businesses during Covid19

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Start with Purpose, not Profit

Start with Purpose, not Profit

Do your customers understand why your business exist for them?

What are you impacting their lives?

If you focus on their needs, better profitability will be a by-product.

 

Why does your family business exit?

Here are some powerful purpose statements that pull their customers towards them

1. Tesla: To accelerate the world’s transition to sustainable energy
2. TED: Spread ideas
3. Walt Disney: To make people happy.

You might be brought into the family business by default and you believe that purpose is to make profit. Let’s put ourselves into customers’ shoes for a moment – they are hard wired to take a self-interest and aren’t interested in you making profit or not. Quietly frankly, they are too worried about their own profit. They will be perfectly happy for you to make a profit if their needs are met first.

Your customers more likely to engage your business if your Purpose resonates with them. ‘People don’t buy what you do, they buy why you do it’ – Simon Sinek. Strong purpose statement will drive strong loyalty. Loyal customers are the most valuable asset of your family business which drives stronger financial performance for generations to come. So defining your purpose is a smart business strategy.

 

What if you are not just a company but a cause?

Sharing your business Purpose to your team allows them to see they are contributing something bigger than themselves. It enables them to see how their role is attributing to the overall vision of the business – how they are impacting your customers’ lives.

Strong sense of purpose drives employee satisfaction which help improve their loyalty.

 

How can you build an emotional connection with you customer?

Being able to clearly articulate why you exist for your customers in your marketing will tie customers to your brand. For example, your new customer might be doing their due diligent , stalk your website or social media, It’s more likely they’ll develop an emotional connection to your business and buy from you.  ‘Logic make you think, emotion make you act’.

We are in the times of rapid change and disruption, having a crystal clear purpose will help your business to transform, adapt and thrive.

Get in touch if you need help in developing your Purpose Statement

How can we make payment right now?

How can we make payment right now?

I’ve heard clients saying It’s not easy to request payment right now and I can totally understand. But at the same time, I cannot stress enough the importance of keeping cash flowing into the business so we can cover expenses and meet our obligations to others.

I want to share the following tips which might be useful to keep in mind when you are asking for payment.

Communication – Try to make it personal to their situation rather than a one-size-fits-all email. Connecting on a more personal level shows you value them and are conscious of the impacts that the current situation may be having on them.

Add value – Surprise and delight your customers by offering something over and above your usual services. It could be as simple letting customers know you want to help and being open to requests, offering a one-off discount or an offer just to chat one to one.

Offer flexible payment options – For customers who can’t pay in full, consider breaking invoices into multiple payments. Offering a discount for early payment might provide the incentive for customers who can settle, to pay your invoice before others. After all, the easier you can make it for them to pay you, the quicker you will get paid.

As with all business dealings right now, a little empathy and a lot of open communication can go a long way.

JobKeeper Payment for Sole Traders

JobKeeper Payment for Sole Traders

The JobKeeper Payment received from ATO will part of assessable income of the sole trader.

According to latest ATO update, sole traders maybe now entitled to JobKeeper Payment scheme if they meet the following criteria:

  • Carried on a business in Australia on 1 March 2020;
  • Experience the fall in turnover requirement
  • Had ABN on 12 March 2020
  • Had lodged either a 2018-19 income tax return, or GST return for any period that started after 1 July 2018 and ended before 12 March 2020.

There’s no requirement for the sole trader to register for PAYG withholding, start reporting through Single Touch Payroll, or pay salaries, because sole trader won’t be getting a wage from this structure.

The JobKeeper Payment received from ATO will part of assessable income of the sole trader.

Enrolment to JobKeeper payment will begin from 20 April via ATO website. Eligible sole traders will need to complete enrolment by the end of April, to receive the JobKeeper payment for fortnight starting 30 March 2020 and 13 April 2020.

Example

Jameela is a sole trader and operates a cupcake business. She is an Australian resident with an ABN and have been running her business since 2017. Jameela runs her business as a sole trader with no employees.

Jameela projects a fall in turnover in her cupcake business of approximately 80% in April 2020 compared with April 2019 as a result of the covid19.

Jameela is qualified for the Jobkeeper scheme.

Common Questions:

Can a sole trader with more than one business receive multiple JobKeeper payments?

No. You can only receive the JobKeeper Payment once

Can a sole trader receive JobKeeper payments when they are also an employee of another business?

No. If the sole trader is bother a long term casual employee of another business and also an eligible sole trader, they can choose to either let their employer claim the JobKeeper payments on their behalf, or they can claim as a sole trader, but not both.

Feel free to reach out if you have any questions.

According to latest ATO update, sole traders maybe now entitled to JobKeeper Payment scheme if they meet the following criteria:

  • Carried on a business in Australia on 1 March 2020;
  • Experience the fall in turnover requirement
  • Had ABN on 12 March 2020
  • Had lodged either a 2018-19 income tax return, or GST return for any period that started after 1 July 2018 and ended before 12 March 2020.

There’s no requirement for the sole trader to register for PAYG withholding, start reporting through Single Touch Payroll, or pay salaries, because sole trader won’t be getting a wage from this structure.

The JobKeeper Payment received from ATO will part of assessable income of the sole trader.

Enrolment to JobKeeper payment will begin from 20 April via ATO website. Eligible sole traders will need to complete enrolment by the end of April, to receive the JobKeeper payment for fortnight starting 30 March 2020 and 13 April 2020.

Example

Jameela is a sole trader and operates a cupcake business. She is an Australian resident with an ABN and have been running her business since 2017. Jameela runs her business as a sole trader with no employees.

Jameela projects a fall in turnover in her cupcake business of approximately 80% in April 2020 compared with April 2019 as a result of the covid19.

Jameela is qualified for the Jobkeeper scheme.

Common Questions:

Can a sole trader with more than one business receive multiple JobKeeper payments?

No. You can only receive the JobKeeper Payment once

Can a sole trader receive JobKeeper payments when they are also an employee of another business?

No. If the sole trader is bother a long term casual employee of another business and also an eligible sole trader, they can choose to either let their employer claim the JobKeeper payments on their behalf, or they can claim as a sole trader, but not both.

Feel free to reach out if you have any questions.

COVID19 Business Continuity Plan

COVID19 Business Continuity Plan

COVID19 Business Continuity Plan

Available support for businesses during Covid19

Learn More

Clients

1300 668088

These are unprecedented times for businesses and their people.

We’ve developed a Business Continuity Planning service to help you identify the actions you need to take to prepare your business for the impact of Covid-19. We can help you maximise your Government entitlements and other support to minimise the downstream impact of a downturn in business.

We understand business owners are feeling overwhelmed at the moment, so we’re offering the following service options to support our clients to develop their Business Continuity Plan:

  1. We can meet with you online to create your Business Continuity Plan in a collaborative approach, bringing together your operational knowledge and our financial acumen.
  2. You can draft your Business Continuity Plan and we can meet online to review and finalise your plan
  3. You can use our Template and Guide to create your Business Continuity Plan yourself.

You must take steps NOW to prepare for the impact the Covid-19 pandemic will have on your business. Doing nothing is simply not an option.

JobKeeper Payment for Trusts, Partnerships or Companies

JobKeeper Payment for Trusts, Partnerships or Companies

According to latest ATO update, entities such as partnerships, trusts or companies may be entitled to JobKeeper Payment scheme under the ‘Business Participation entitlement’.

These entities will be eligible, if they meet the following criteria:

  • Carried on a business in Australia on 1 March 2020;
  • Experience the fall in turnover requirement
  • Had ABN on 12 March 2020
  • Had lodged either a 2018-19 income tax return, or GST return for any period that started after 1 July 2018 and ended before 12 March 2020.

These entities then need to nominate an eligible business participant, who needs to meet all of the following:

  • Must not be employed by the entity
  • Actively engaged in the business
  • Either a partner in partnership, a shareholder or director in the company, an adult beneficiary of the trust

Unlike employers who need to pay minimum of $1,500 per fortnight to each eligible employee to receive the JobKeeper Payment, there’s no equivalent requirement for these entities based on the Business Participation Entitlement.

There is no requirement for these entities to register for PAYG withholding, start reporting through Single Touch Payroll, or pay salaries to the business participant.

The JobKeeper Payment received from ATO will part of assessable income of the business entity.

Enrolment to JobKeeper payment will begin from 20 April via ATO website. Eligible entities will need to complete enrolment by the end of April, to receive the JobKeeper payment for fortnight starting 30 March 2020 and 13 April 2020.

Example – Adult beneficiary of a trust

Fabian is a personal trainer and operates both a gym and an online training program. Fabian runs his Australian business through a discretionary trust where he is a beneficiary and receives trust distributions.

The trust was settled and acquired an ABN in 2011. Fabian is not employed by his business but actively manages the business, and is not employed elsewhere. He also has one permanent part time employee.

The gym closed on 20 March 2020. The online personal training platform is still operating and Fabian is focusing on growing this part of his business. As a result of the gym closure, the trust’s turnover is expected to fall by 70% in April 2020 compared with April 2019.

Fabian is 36 years old and an Australian resident. Fabian is an eligible business participant and the trust qualifies under the JobKeeper scheme, with the trust receiving the JobKeeper payment.

The trust could also qualify for an additional JobKeeper payment if the part time employee is eligible.

Feel free to reach out if you have any questions.

Reference:  https://www.ato.gov.au/General/JobKeeper-Payment/

JobKeeper Payment Q&A

JobKeeper Payment Q&A

ATO has recently released the initial JobKeeper Payment guidance. We have prepared the following to help you understand and navigate the scheme.

Is the JobKeeper Payment Scheme compulsory?

No. Employers can choose to participate in the scheme and then nominate the employees they are entitled to claim for. An employer can choose not to participate the JobKeeper payment.

Who is eligible?

Employers will be eligible if all of the following apply:

  • On 1 March 2020, you carried on a business or were a non-for-profit organisation
  • Employed at least one eligible employee
  • Has faced at least 30% fall in turnover(turnover under $1billion)

What about Sole Traders?

Sole traders can be eligible for the JobKeeper payment if their business has experienced a downturn. ATO will provide more information soon.

What about other form of businesses, i.e trust or partnership?

Company, trust or partnership can also qualify for JobKeeper payments where a business owner, shareholder, beneficiary or partner is activity engaged in the business, and business has experienced a downturn.

It’s limited one entitlement for each entity even if there are multiple business owners or participants.  ATO will provide more information soon.

Do employers need to pay their staff before getting pay for JobKeeper payment?

Employers will need to pay eligible employees a minimum $1,500 (before tax) per fortnight.

JobKeeper payment will be paid to employer in arrears each month. The first payments will commence in first week of May 2020.

How to calculate a fall in turnover?

To work out your fall in turnover, you can compare either: 

  •  Turnover for March 2020 with March 2019
  • Projected turnover for April 2020 with April 2019
  •  Projected turnover for the quarter starting April 2020 with the quarter starting April 2019.

Who are eligible employees?

Your employee is eligible under the JobKeeper Payment scheme if they:

  •  Are employed by you (including those stood down or rehired)
  • Are permanent full time, part time or long term casual employee at 1 March 2020
  • Were Australian resident as at 1 March 2020
  • Agreed to be nominated by you

Do I need to inform my employees?

You must tell those employees that you have nominated them as an eligible employee to claim the JobKeeper payment. They must agree to be nominated by you by completing the JobKeeper employee nomination notice and returning it to you for your records.

Can I nominate my employees who were stood down or on long term leave?

Yes, employee who have been stood down from work without pay may still be eligible employees as they were in your employment on 1 March 2020. You will need to have paid them at least the minimum amount of $1500 for each fortnight you claim for, to receive the JobKeeper payment.

What about employees who have been terminated?

If you terminated an employee after 1 March 2020, you can re-engage them and they will be eligible if they met the eligibility criteria on 1 March 2020. You will need to have paid them at least the minimum amount of $1500 for each fortnight you claim for, to receive the JobKeeper payment.

What if employees normally earn less than $1,500 per fortnight?

If your eligible employees earn less than $1,500 per fortnight before tax, you must pay them at least $1,500 for each fortnight to claim the JobKeeper payment. This is a ‘top up’ of their wages and will ensure they remain eligible.

You CANNOT pay your employees less than $1,500 per fortnight and keep the difference.

What if employees normally earn more than $1,500 per fortnight?

If your eligible employees earn more than $1,500 per fortnight, you should continue to pay them their regular wages. However, you will only receive $1,500 for each eligible employee. Any amount you pay above $1,500 per fortnight is not subsidised by the JobKeeper Payment.

What actions do I need to take right now? 

  • Register your interest to JobKeeper Payment if you haven’t done so.
  • Check if you and your employee meet the eligibility requirements.
  • Continue to pay at least $1,500 per eligible employee per fortnight
  • Notify your eligible employee and ask them to fill out the JobKeeper nomination notice.
  • Most importantly, You or registered tax professional need to ENROL the JobKeeper Payment via business portal, by filling up online application form, with your bank details, estimated number of employees, and other details. The enrolment starts next Monday 20 April. You need to complete the enrolment by end of April.

We understand we are playing an important role in helping businesses affected by COVID-19. We want to help businesses to be able to access the JobKeeper payment to continue to pay their employees.

Here’s how we can assist you:

  • Workout if you are eligible
  • Identify your eligible employees
  • Ensure you correctly pay your eligible employees to remain eligible
  • Establish cashflow forecast for coming months
  • Enrol JobKeeper Payment on your behalf
  • Apply JobKeeper Payment on your behalf

Feel free to reach out if you need any assistance.

Reference:  https://www.ato.gov.au/General/JobKeeper-Payment/

How to keep your business afloat in the coming months?

How to keep your business afloat in the coming months?

Specific advice will be tailored around topics such as:

– What stimulus package your business is eligible for, when to expect them, and how you can maximize it
– How to your pay bills if sales start to decrease
– How to communicate with clients and employees in a positive and reassuring way
– How to keep the cash-flow coming in
– How to secure a bank loan

With good planning and working together, we’ll help you prepare for the weeks and months ahead.

What does second stimulus package mean to you?

What does second stimulus package mean to you?

Boosting Cashflow Flow for employers

  • Tax free cash payment at least $20,000 up to total $100,000
  • Eligibility: Small to medium business with annual turnover under $50 million and employ workers
  • Eligible business that pay wages will receive at least payment $10,000 even if they are not required to withhold tax.

Tax Support  

  • ATO is providing relief for some tax obligations for businesses affected by the outbreak

Government Guaranteed unsecured bank loan

  • Loan amount up to $250,000
  • Up to three years, no repayment required for first 6 months

Payroll Tax

  • Payroll tax relief for eligible businesses

Early Access to superannuation

  • Access up to $10,000 from your superannuation in 2019-20 and 2020-21

Sole Trader

  • $550 Fortnightly coronavirus supplement payment

Is that it?

No. The government says there will be more support coming. Stay Tuned. We will keep you informed.

Please contact us if you want to how your business can be benefit from stimulus package.

Covid 19 business update

Covid 19 business update

In light of outbreak of COVID19 and the uncertainty we are all facing day to day, we want to make sure we are giving you the best possible support.

As a small business owner, your priority right now is to keep the business afloat during these difficult times. It’s vital that you build a cash ‘war chest’ which allows you get through the coming months.

Government Stimulus Package – Planning is VITAL!

The Australian Government has just released a $17.6 billion economic stimulus package. The package has been marketed as a measure to protect the economy by maintaining confidence, supporting investment and keeping people in their jobs.

Boosting Cash Flow for Employers

This measure will provide up to $25,000 back to business, with a minimum payment of $2,000 to eligible business that employ staff.  The payment will be tax free.

Supporting Apprentices and Trainees

Eligible employers can apply for a wage subsidy of 50% of an apprentice or trainees wage paid during the 9 months from 1 Jan 2020 to 30 Sep 2020.  Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer.

We can assist you with opportunities to restructure the business so that you can receive the maximum cashflow assistance amounts. If you have not already engaged us for cashflow and business planning session, we strongly recommend you contact PRIOR to preparation of your March BAS to ensure you take the full advantage.  Contact us TODAY on 1300 668 088

 

Business Loan Relief

The Australian Banking Association has announced on 20th March that the Big 4 Banks will be offering repayment holiday to small businesses on their small business debts. The advice at this stage is that you will start hearing from your bank from Monday 23rd of March.

 

Business Continuity Planning – Complimentary 30 minutes Web Meeting

As a business owner, now it’s the time to work ON your business to plan for employees being away from your workplace, shortage of supply, reduction of sales, and the possibility of your workplace being closed for a short period of time.

We have developed a COVID-19 Business Continuity Plan that will address the critical areas that affect you. We would like to meet with you to discuss the following:

·       – How to pay bills if sales start to decrease

·       – How to communicate clients and employees in a positive and reassuring way

·       – How to keep things moving with your business

·       – Cashflow

·       – Funding

We might not have all the answers, by working together you will be well prepared for what will happen in the weeks and months ahead.

Contact us TODAY on 1300 668 088 to book your complimentary 30 minute meeting.