More Great Facebook Questions & Answers

My husband has a busy little plumbing business that relies on repairs, maintenance and emergency work.  We are heading into our 3rd yr.  I’d like to know if there’s a way to project our future earnings so we can put someone on, get a home loan and or go on a holiday?  Belinda

Hi Belinda

After 3 years of trading you should have a good bank of data to be able to see the trends in your business and make a projection for the next 12 months.

From that you can then start to develop a savings plan.

You should include the potential employee, mortgage & savings into the projection so that you can see the actual cash flow effect and determine if there are changes you can make in order to achieve your goals.

We have plenty of tools to assist you with this, so if you’d like a hand give us a call.

Mel

I keep hearing about the Superanuation rate going up from 9% to 12% but don’t know the details. I’m pretty sure that this is a progressive thing over a few years but am not sure. As an employer, what do I need to know?  Is it a 1% raise per year? Does the employer just have to pay the extra money or does the government contribute? If employers have to pay an extra 3% then this will have to have a follow on effect so the employer can make the extra dollars to cover the cost.  Can you please explain this to me? Greg

Hi Greg
You’re right!  There is a lot of confusion about the superannuation guarantee rise. From 1 July 2013 the rate will increase by 0.25% to 9.25%. It is quite a steady rise over the next few years, as follows:

2014 = 9.5%
2015 = 10%
2016 = 10.5%
2017 = 11%
2018 = 11.5%
2019 = 12%

The employer has to foot the bill.  There is no assistance from the government. The most important thing for business will be to remember these rises when determining pay increases – the employees are effectively already getting a pay rise through the SGC increase.

It’s not the best economic timing for business, but one thing we know at least is that we will have the 0.25% rise come July this year – what happens thereafter is yet to be seen

Mel

I wish this question could be anonymous! The year before last I was finalising all my accounts in MYOB and as I was reconciling my computer crashed and wiped EVERYTHING – nothing was found and I didn’t back up! I went through a MYOB depression and have been avoiding it! I am SLOWLY getting back on track but haven’t taken in my 2011/2012 return yet. What fees and TROUBLE will I be in as I am a year late. Trish
Hi Trish,

You are not alone!  It is only when something drastic like this happens that we realise the importance of backing up not only our MYOB regularly but also our whole computer system.

Your business structure will determine what the due date of your return was. Sole traders have a different date than companies for example.

The best thing to do is let the ATO know what happened & get an extension. Your best opportunity for success with this & the avoidance of penalties is to get a registered tax agent to apply for you (let us know if you don’t have one & we can help you out).

This should give you the time you need to get it all back on track & eliminate any penalties.

Mel
Where do I begin when trying to understand superannuation?  Are there sites that aren’t just ads?  Beth

Hi Beth

It’s great that you want to have more control and understanding about your super.

The ATO has some good information for individuals on super choice.

There is also a site ASIC have published that helps with comparing & choosing a super fund.

Mel
What are the important elements to growing your business from a small business to a larger business and what are the alternatives in financing growth of your business?
Dana

This is a great question Dana!

I will summarise some of the main points here, but encourage you to listen to a series of recent podcasts I did on this very topic.   I will give you some main points here, but for a recent podcast I did on this very subject.   (Look for: 27/2/13, 4/3/13 & 6/3/13).

Key things to consider:
* work to build your word ofouth referrals – use social media to amplify this
know when to say know to certain types of work
* focus on results
* make the most of your point of difference
* do your sales yourself
* make sure you don’t price too low
* stick to payment terms
* make the most of opportunities that come your way
* take care of your suppliers
* don’t over commit
* know what you want
* prepare for the worst

When it comes to financing you need to choose the right funding for the purpose.  For plant & equipment consider chattle mortgage, equipment finance or leasing.  For short term cashflow/working capital needs an overdraft or small credit card balance would suit.  If you’re looking at buying a premises then a commercial property loan is best.

There are options to use security & equity from personal assets as well as any cash savings your may have. The decision will come down to how much the financing will cost (what that will mean to your cashflow) and the risk involved.

If possible it’s always best to try and keep personal assets separate from the business.

Mel

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