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Dec 16

Managing your business cash flow over the holiday period

Posted by Paola Coco on Sunday, December 16, 2018



December is usually the busiest time of the year for retail and hospitality businesses. But businesses in other sectors often find that their sales slowdown and their customers stop paying them for a few months. So cash flow dries up.

Whether your business is large or small, well-established or in start-up mode, you need to take a planned approach to managing cashflow during the holiday season. Here are few tips for keeping on top of cashflow management during the Christmas/New Year holiday period.
1. KEEP INVOICING IN THE LEAD UP TO CHRISTMAS
Don’t let your business admin slip in the rushed lead-up to Christmas. This is the most important time of the year to stay on top of your invoicing. You may find that many customers will be slow to pay because their businesses are closed over the Christmas period.
2. SET CLEAR EXPECTATIONS WITH YOUR CUSTOMERS
Be clear with your customers that you expect them to pay within the pre-arranged credit terms over the Christmas period. Phone regular slow payers a few days before payment is due to confirm that they’ll be paying on time. The phone is always a more effective method than email. If you’re not comfortable having this conversation with your customers, your accountant or bookkeeper may be able to assist.
3. SERVICE BUSINESS – OFFER A DISCOUNT FOR THE “QUIET TIME”
If your business is usually quiet in January, why not offer your clients a 10% discount if they book you in for January? Why not offer them a 15% discount if they also refer a neighbour or a friend? Set whatever discount amounts work for you. This is the thing: A strategy like this will keep your business busy and some cash coming through during the usually quiet period.
4. USE THE QUIET TIME TO WORK ON YOUR BUSINESS
If sales are a little slow in the lead-up to Christmas, use the time wisely to hit the ground running in the new year.
The pre-Christmas slowdown is a great time to work through the to-do list you’ve been compiling all year. This might include taking a thorough inventory, searching for more suitable lending alternatives, completing a comprehensive competitor analysis or researching the market for new products and suppliers.
WANT TO TALK?
Feel free to contact our office anytime by phone or email – We can’t wait to provide you with better advice now for a beautiful future!

Written by 
Paola Coco
Senior CPA, Accountant
By The Numbers Accounting

Dec 10

What do you need to know when hiring working holiday makers?

Posted by Carolina Areiza on Monday, December 10, 2018




A
s you might have heard already, working holiday makers need to pay higher tax rates, which means changes in withholding amounts for employers. The ATO has been checking files and data matching this information with the Payment Summaries. 

When hiring a new worker from overseas, you need to make sure you know their visa status and number before you enter them into Payroll. Usually, they have either a confirmation email from Home Affairs or an app called myVEVO with this information. There you can check the correct status and, proceed to mark the residency status in Xero properly. Once set in the employee file in Xero Payroll, the employee’s PAYG withholding will update automatically for you and tax them correctly. 

Now, here is the fun bit, working out which category to choose.  The categories that Xero use, in accordance with the tax law are:

  • Foreign Resident: People who are holidaying in Australia or visiting for less than 6 months that do not intend to migrate to Australia or to study long term here. Typically, we can say that everyone who holds a Visa Subclass 600 is a foreign resident.
  • Working Holiday Maker: These are people that are under the Visas 417 and 462.
  • Australian Resident: Every Australian or New Zealander or even temporary residents* that are not in the previous categories. 
* Temporary residents are those on student visas and graduate visas. They are residents for tax purposes, even though they’re not technically a resident of Australia for Immigration purposes.

What to do next? After doing this, if you have anyone in the working holiday makers category, you MUST notify the ATO and be registered as employer of working holiday makers. 

The most common industry affect by these changes are hospitality, but other industries that might be affect are tourism business, farming, businesses with seasonal workers.

But do not worry, we’re here to help you with this. Give us a call at BTNA and we’ll organise everything with the ATO and make sure your registration is completed. 

Do not hesitate to contact us if you need any further information regarding this topic, we’re only a phone call away!

Written by
Carolina Areiza
Senior Accountant
By The Numbers Accounting