Budgeting and forecasting

This week in finance: Tech stocks get the wobbles, Fed to lift rates and jobs data out

This economy data has both positive and negative outlooks for businesses in the coming month, with...read more

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Budgeting and forecasting

Federal budget can’t fix 'dangerously dumb' housing prices

Any measures in the federal budget aimed at housing affordability will have little impact on...read more

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Budgeting and forecasting

Here's what to expect in the 2017 budget

The concept of home and all that it means will come into focus at this year’s federal...read more

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Questions

Housing affordability: Should we limit/scrap negative gearing?

Asked by:
SavvySME Official Official Account at SavvySME
Deborah VellaOwner at Support Legal
Negative gearing is one of the factors that feed into the property market. It can be aligned with lack of housing affordability, but so can a number or combination of other factors. Whether negative gearing should be scrapped or limited over time will depend on the plans for other factors affecting the property market. If the aim of limiting negative gearing is to reduce the tax deductions available for the individual wealthy taxpayers in favour or creating more equality with tax payers who don't own property, then it might be worthwhile to consider. However if the aim of limiting negative gearing is to completely eliminate the housing affordability problem, then more consideration will need to be given.
Yes, I think negative gearing should be scrapped... over time... I think a wind down period of 10 or even 20 years maybe, will have a positive effect, couple with making mortgage interest on your own home, principle place of residence, tax deductible, to encourage home ownership... I think it will also lead to higher quality and better considered and designed home building in this country.
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Questions

How will your business be affected by interest rate rises?

Almost every expert says the interest rates will go up within the next few years. How will your... read more

Asked by:
SavvySME Official Official Account at SavvySME
Helene LiatsosOwner at Home Office Management Experts
If your business has loans or credit cards, the interest rate is highly important. This is money you pay out of pocket so the lower it is the better it is. What I try to do each month is pay more than the interest rate charges/minimum payment due....even a few dollars will help lower the principal on the account. If possible, look into getting a credit card with a lower interest rate or refinancing the loan. Another thing I try to do is to pay cash for items that I need so I am not constantly loading up the credit card. Best, Helene
Jef LippiattOwner at Startup Chucktown
This wouldn't currently impact me as I'm bootstrapping all my financing myself. However, I can see how if you were carrying significant inventory or trying to expand your business this could be a very negative impact.My suggestion is that if known interest rates will be going up but haven't yet, you need to fast track your plans and lock in the lowest possible rate you can while they exist. It may seem scary to speed up something like that, but the payoff could be great but non-existant if you wait... just something to think about.
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Questions

Should we legislate the time it takes to pay to protect SME’s cash flow?

Numerous surveys and report have showed again and again that overdue payments are detrimental to... read more

Asked by:
SavvySME Official Official Account at SavvySME
Scott O'Reilly
Interestingly, the construction industry in Victoria (and I believe mirrored in many other states) has a form of this called the Building and Construction Industry Security of Payment Act 2002 (VIC) - it is based on the premise that construction contractors already 'cashflow' projects for their clients by expending resources before receiving payment, so it sets a clear set of timeframes for payment or part payment. Failure to pay in accordance with this Act is easily enforceable at the Victorian Civil and Administrative Tribunal or the Magistrate's Court, on the basis that the legislative timelines are very clear and strict.A core tenet of this Act is 'pay now, argue later' - that is, a client can issue a 'payment schedule' outlining a different (reduced) amount or alternative payment terms but that at least provides protection to the contractor for the agreed amount, rather than putting the whole invoice on hold. If a client doesn't lodge a payment schedule, they are deemed to have accepted the invoice and it becomes very quickly enforceable.More info at:http://www.austlii.edu.au/au/legis/vic/consol_act/...http://www.constructionlawmadeeasy.com/SecurityofP...http://www.vba.vic.gov.au/practitioners/security-o...
I have to say I'm not a fan of legislating for good behaviour, especially not as it relates to business to business commerce. Besides that that I don't understand how a law like that could ever be enforceable.I think the biggest problem is with small business itself. Small business owners simply do not take the time to develop, implement and consistently apply realistic payment terms and collection systems.I have found that when thinking properly about how to set up your payment terms, how to ensure that clients understand them and how to ensure that payments are collected as per the terms, that 75% of the problem of overdue payments goes away. The final 25% never goes away and as a small business owner you must simply resolve to stop doing business with customers who don't pay on time.... Life's too short.A well thought out collections system that's applied and run like a well-oiled machine... relentlessly, and that includes as a final automatic step sending the bill off to a collections agent, whose fees are added to the outstanding debt, automatically, sends a message to recalcitrant payers that they m,ight as well pay up, because it's only going to cost them more money in the end and most recalcitrant payers are not of bad faith, but they simply have their own cash flow challenges and they pay the squeaky wheel first
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Questions

What “burdens” would you like to see scrapped as a small business?

Last year’s budget announced plans to reduce red tape for businesses. The GST reporting will be... read more

Asked by:
SavvySME Official Official Account at SavvySME
George Grimekis CPAAccountant at Alpha Omega Accounting & Business Solutions
I hope I live to see the day when Payroll Tax is abolished.I cannot understand why taxing businesses for employing people is still OK in this day and age.
I operate as a sole trader and for now that suits me. I find it very irritating when the politicians go on TV talking up how much they are helping "small business" when in fact, they are helping small companies. Many of the so called benefits and tax breaks are of no help to me because I am not a company and don't pay company tax. I'd like to see more support, breaks and benefits for the small business owners who are not incorporated; or at he very least, say what you mean and talk about small companies not small business. Bec
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Questions

Economic growth vs budget deficit?

As the government tries to reduce the budget deficit, what do you think is the best use of our... read more

Asked by:
SavvySME Official Official Account at SavvySME
Jef LippiattOwner at Startup Chucktown
I think one thing that would be great for all small businesses is reduced redundancy (aka more intuitive processes).Many times there are multiple applications you have to log in to (everything from filing forms, requests, paperwork, taxes, etc.) Those should be streamlined into a single application (1 username 1 password).Make all deadlines publicly published and send out systematic, automated emails reminding business owners of the upcoming deadlines.Eliminating bureaucracy that stands in the way of getting a business officially started would be a great help for many.I would say one other option would be to provide Innovation Incentive Grants/Funding. If a business creates a service or product that leads to more jobs within that State/Coun.try (of a certain level) or has the potential to make a meaningful (positive) impact on the overall economy
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Questions

turnover not paying bills

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Questions

How do I work out what to pay my self as a wage and how do I go about it?

Jef LippiattOwner at Startup Chucktown
One of the first questions I would ask is, are you profitable? Meaning, are you currently making more money than you are spending? If not, it isn't time to draw a wage. Keep in mind if you need to scale (add employees) they are the first to get paid and you are the last to get paid (as a founder / owner).If your business is making a profit, do you have more than enough to keep the company profitable for 1 to 2 months and still have extra money left over? If not, keep not drawing a wage. If this sounds like a board game, you aren't far from the truth.Lastly, if your business has met and exceeded both of those conditions it may be time to start drawing a wage. However, I would recommend starting small and gradually scaling it up to avoid having to ramp your wage back down.If there is still too much "haze" around this topic, I'd recommend talking to an accountant or tax advisor.
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Questions

Do you have a "get out of bed" price?

ie If a project isn't going to generate a bare minimum of X income then the conversation ends right... read more

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Questions

Whats the average hourly rate for a good Xero bookeeper

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Questions

What sort of budget is required to have someone work on SEO optimisation?

website touch ups etc in order to show up on the first page in google? I just starting paying $200... read more

Steven FreemanOwner at Evolved Sound
Its can be ongoing spend from $100 to $5k+ per month. Spend is only one part of the equation. - What are they exactly doing for your spend?- Can you accurately measure the performance and success?- Is it in line with your sales & marketing goals?The results that you accurately measure can only dictate the value and justify the spend. Otherwise its easy to burn lots of cash on SEO for little tangible results, other than what they tell you to make you feel good.There is a lot you can do yourself as a foundation, but not recommended for most business owners starting out in competitive markets. Their time is best used in their area of expertise instead.
Something to remember is that your competitors are also spending time and money trying to reach that top spot. And some probably have done for years. It will take lots of effort to get ahead. Here are some tips: 1. Do lots of research on your target market and what they want help with. Provide them with well written content on what they want to know in a blog on your website. 2. Make it user friendly 3. No broken links or errors 4. Consider Google AdWords as you'll then show on top of the search results.
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Questions

How did you get the start-up capital? I plan to be self-employed

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Questions

When employing someone permanent part time is there a minimum amount of hours you need to promise in a week?

You might be best to ring the appropriate government body about this. Laws change all the time and it's best you keep up to date with it all.Consider hiring them as casual if the hours are inconsistant from week to week.
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Questions

How much is a book keeper that uploads about 8 to 10 invoices to a spreadsheet per week?

from a google documents scanned image of the receipt. read more

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Questions

Preferred day of the week and time of day? During working hours or after hours ?

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Questions

If you could get warm leads to quote on in your area that you want to cover for your industry, woud you use it?

For a subscription price? if so, what is your industry, where are you located (just suburb and... read more

I have paid for warm leads in the past for my Computer Support business.I am based in Perth Metro, Atwell, Western Australia.I haven't had any success with warm leads turning into a job.They were quite expensive. $10 or more a lead.Each job might earn me profit of between $50 and $150 so it wasn't worth it, especially when they were not converting.I would likely give it a go depending on the cost.
Jef LippiattOwner at Startup Chucktown
I'm not sure I would, but based on the industries I'm in (ecommerce retail of stationery and paper goods and publishing children's books) I am not really in the type of industries that pursue that type of lead funnel. Or at least if I am, I haven't heard of it being used by anyone in my professional networks.I suppose if the items I was selling were big ticket items or recurring subscriptions it would be a different story.
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Questions

I have paid but not yet reconciled as the bank feeds have not updated - is it a problem?

If I have an invoice that has been paid, but not yet reconciled & items, read more

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Questions

I was wondering if there is any apps or programs to keep track of your time?

I have a lot of clients I charge on an hourly rate and I always loose track of time and I end up... read more

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