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Cashflow Tips – The Importance and Productive Boost of Team-Building

Cashflow Tips – The Importance and Productive Boost of Team-Building

Cashflow Tips – The Importance and Productive Boost of Team-Building

A team is an important, dynamic unit working together to achieve success in accomplishing a goal. What determines how effectively a team will work together? Lots of things. To create an autonomous, hard-working, high-producing group of individuals is challenging, and there are many factors that will influence your team’s success. Here are 6 considerations to help you get started.

1-   Begin With the Right People

Know what you are looking for. When recruiting to your team, look for candidates who match your organizational culture. If you’re adding to an existing team, you might consider getting team members to help with the selection of a new recruit. While group cohesiveness has an effect on group performance, any group that works productively will suffer less turnover because they have enjoyed success. Look for people who will help to balance your team professionally.

2-   Be SMART About Goal-Setting

Without goals, teams are aimless. Prepare your team for success with a clear objective, and be sure to attach a value to the goal. Without seeing the value in the work they are doing, a team will lack the motivation to succeed. In goal-setting make your goal SMART:

·                     Specific: Your goal must be well-defined so that the team’s direction is clear. Ask: Where do we want to end up? What steps will we need to take to get here?

·                     Measurable: In order to measure their degree of success, a team needs precise objectives (amounts and dates). Be specific. If you describe your goal in general terms, such as “Increase sales” without indicating by how much or by when, it’s unlikely you’ll get the results you want.

·                     Attainable: Be realistic. Aim too high (set a goal that your team has no hope of achieving) and you will only demoralize your team and eat away at their confidence. Make sure to state how and why you think a goal is attainable.

·                     Relevant: Goals should be aligned with your vision of success, and relevant to the direction you want your team to take.

·                     Time-Bound: Success will come that much quicker if you have a deadline.

Arrange to have your team revisit their goals regularly. The pursuit of achievement is ongoing, and reminders will help to keep things on track. Encourage open discussion about the team’s progress.

3-   Define Roles Clearly

Without goals, it’s impossible to establish meaningful, valuable roles for team members; in their absence, team member accountability becomes an issue, as do overlap and time-wasting. Clearly defined roles make it easier for each team member to set their own goals for accomplishing work effectively and for making a strong contribution to the larger goal. It is important that each team member accept the role and responsibilities of their own role, and those of their counterparts. You might consider explaining why each team member has been selected, so that their value to the team is clearly established. Clear roles help to:

·            Identify knowledge, skill and capability needed (helps you hire the right people)

·            Determine what resources and strategies are required for success and determines who will be sharing these (helps you get the proper tools to the right people)

·            Eliminate confusion, establish boundaries, and reduce overlap (so a member can focus time and energy on learning/ performing a specific task)

·            Identify any weakness that threatens efficiency and any need for training, support or reassignment

Perhaps the most important role on a team is the team leader. A quality leader who will value the ideas and opinions of its members and hold team members accountable will influence engagement (and efficiency).

4-   Build an Atmosphere of Cooperation

Efficient teams co-operate. In this environment, team goals are of utmost importance and team members support each other in working toward these goals. A member will be measured by their contribution to achievement. Have processes and protocols in place to promote co-operation. Consider the following:

·            Team charter: A charter defines how work will be done. It is created by the team, for the team. All members should be expected to contribute. The team charter addresses how work will be done. It deals with topics such as:

o   Purpose (A team that understands how a job will align with your organization’s key objectives and strategies is more likely to produce exceptional work. Reinforce corporate values, and business objectives.)

o   Duration and Time Commitment (Ask: How long will this take? What time is required?)

o   Scope (How big is too big?)

o   Stages of development (deliverables)

·            Communication: This is the most important factor in successful teamwork. The most effective teams exist where members are able to share information and expertise openly with their team, and with their organization as well. Personal expression must not be undervalued. (Points are listed to consider…)

·            Conflict resolution: Conflict is part of learning to work well together. It is powerful, and can contribute to a team’s success or be its undoing. Deal with conflict quickly. Where a team is relatively uniform in experience, problems may be resolved more quickly than where a team’s members differ widely in experience and approach to problem-solving. If team members cannot resolve an issue, they should have prompt guidance. Encourage openness, and have a method of feedback so that concerns can be brought to your attention. Be responsive.

·            Team-building: Enable your team to perform their job well. The degree to which you need to invest in team building depends on the size of the team, and member turnover. The dynamics of a team will change with the coming and going of members, and in either circumstance, you want your team to adjust, and continue to be productive. Help them build strong team systems and processes so that work goes on uninterrupted.

5-   Define Expectations

Performance expectations are, basically, the ‘Rules of Engagement’ for team work. They govern professional issues. Be clear about what contributions are expected from individual team members, and consider presenting these expectations to each prospective member during their interview to help assure that you will be working on the same page. These expectations should be laid out in your organizational policies and procedures.

Team expectations should be concrete and directly related to the achievement of team goals. They define how a team will work to achieve their goals.

Expect team members to:

·       Contribute (do their work)

·       Communicate with each other

·       Cooperate (support each other)…

It is very important to the success of your team that you enforce expectations. Make sure that you treat everyone fairly (without favoritism), and that you welcome and accept observations from team members about performance issues. Poor performance must be effectively addressed for team members to feel supported, and so to manage potential conflict. Team members must be held accountable for achieving goals and meeting expectations for the team to be effective.

6-   Recognize Good Works

Effective team members perceive their service to the team as being valuable to their organization, and to their own careers as well. Reward the results of their efforts. To attract and retain motivated and effective workers, your organization must invest in a culture that promotes improvement, and has a means for capturing individual contributions. Recognize and reward individual successes and team successes as well. Learn what keeps your team members motivated. You might consider the following:

·       Profit-Sharing (Share the wealth!)

·       Skills development (training, conferences, webinars)

·       Opportunity (promotion)…

Never let good performance go without recognition, and follow-up. If you or your team sees good performance from an individual contributor, they should be sure the individual is both recognized and rewarded.

Effective teams benefit from front-end investment. Spend time structuring a work environment to foster success, and you will be more likely to see your team flourish. Recognize that you are part of the team (even if you are apart). Invest in your relationship with team members, and seek to build trust and loyalty by being accessible, supportive, and responsive. Reward good performance and deter poor performance. Review processes and procedures regularly. Take comments and criticisms, and allow yourself, and your team to grow towards success.

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MYOB – How does tax calculate when pays are split?

MYOB – How does tax calculate when pays are split?

MYOB – How does tax calculate when pays are split?

Client emailed Since staff only worked some days on the holiday break period, our fortnightly pays were split into two payments, but wonder how does the tax calculate. To do the pays, I paid 40% of a normal fortnight pay plus entitlements, as there were only 4 days worked for that fortnight, and paid that on the last work day. Then on our return, when the next pay was due, I paid the 60% balance plus entitlements, as most employees worked only 6 days of that fortnight. I used the ‘Pay Leave in Advance’ function in payroll, ie Fortnights of standard pay: ( 0.04 or 0.60). How does the system calculate the tax component when pays are split, as it looks like the tax deducted from the second payroll is too high?

Answer It depends on the settings. MYOB takes the gross figure and takes that as the figure earned for the period, then works out the tax accordingly. Then in each pay it applies the ATO formula which subtracts the tax free threshold then calculates the PAYG payable on the remainder. This could mean that some of your lower paid staff may not have had tax deducted on their first pay. It is best to check – set up an excel to look at gross pay and gross PAYG for the period and compare it to Fortnightly Tax Witholding table from here –​ownloads/BUS39409n10060514.pdf. Any significant adjustments can be made in future pays.  

Payroll will tax the individual pay that you are entering. For example if the gross of that pay was $500, it would tax the employee for a gross of $500 according to the tax table the employee is on and the pay frequency. 
If you use Pay leave in advance it will allow you to process two pay frequencies at once and count it as separate weeks for tax. For example if you get paid $500 gross each week and your tax amount is $100 per week. If you used the Pay leave in advance and paid it for 1 standard week and 1 week leave in advance and you are actually getting the same amount of gross as a normal week i.e. 500. Your gross would be $1000 but the tax would be $200 instead of $350 (which it may have been if you paid $1000 in a normal week). This is due to the fact that the tax amount is $100 for $500 gross and you are getting $1000 so 2 x normal gross therefore $200 or 2 x normal tax.

Be also mindful of entitlements – for those set to Hourly there should be no problems, but for salary people you would have needed to alter the accrual for each of the pays.

Get a FREE 30 min answer to your query, and FREE ongoing email or phone support – No-one offers as much! Call and you also get FREE “Avoid these GST mistakes” – There’s 18 that the Tax Office see regularly – Get them right!

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Business Tax Tips – Home Office Expenses the ATO allows you to claim

Business Tax Tips – Home Office Expenses the ATO allows you to claim

Home Office Expenses the ATO allows you to claim

Wanting to know what home office expenses the ATO allows you to claim for your small business? There is great information on the ATO website, and links for more info and a cool expense calculator, as part-reproduced here –

If you operate your business in full or in part from home, you may be able to claim a deduction for:

  • Occupancy expenses, such as rent, mortgage interest, rates, land taxes and house insurance premiums;
  • Running expenses, such as phone rental and business calls, internet fees, depreciation of office furniture and equipment and any additional heating, cooling, lighting and cleaning expenses.

Before claiming expenses relating to your home work area, we recommend you read Home-based business.

Claiming running expenses and occupancy expenses depends on whether or not your home is your place of business and if you have an area set aside exclusively for business activities.

If your home is your place of business and you have an area set aside exclusively for business activities, you may be able to claim both running and occupancy expenses.

If you carry on your business elsewhere and also do some work at home, you cannot claim occupancy expenses even if you have a home work area set aside.

Our online calculator will help you determine if you’re entitled to occupancy expenses and then calculate your allowable deduction.

Work it out Home office expenses calculator

You can keep a diary to work out how much of your running expenses relate to working at home. All you have to do to support your claims is keep a diary for a representative period of about four weeks each income year.

Alternatively, for home work area expenses, such as heating, cooling, lighting and depreciation of furniture, you can claim a fixed rate, instead of keeping details of actual expenses.

The following table shows the deductions you can claim for the three ways you can work at home.

Business Tax Tips – Home Office Expenses the ATO allows you to claim

There is also a video to explain the deductions.

And the ATO page also alerts you to Personal Services Income that may not allow occupancy expenses, and that Capital Gains Tax may apply – read more HERE.

Need help? Not sure? Call for FREE 30min advice / strategy session today! 0407 361 596 Aust.

***BEFORE you BUY – Ask us for a competitive software price BELOW retail – No obligation!

You also get FREE 30 min to assist in setting up your company in the software, and FREE ongoing email or phone support – no-one offers as much! Call and you also get FREE “Avoid these GST mistakes” – There’s 18 that the Tax Office see regularly – Get them right!

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Business Finance 101 – Four ways to send your business broke

Business Finance 101 – Four ways to send your business broke

Four ways to send your business broke

An OECD report showed a very high correlation between financial knowledge and success in wealth creation – in summary, the less you know about managing money the more likely one is to go broke! Even more disturbing, are several recent studies where, countries with apparent high levels of wealth have ‘forgotten’ the basics of Financial Management, and budgeting and money management levels are falling.

Financial literacy is a combination of financial knowledge, skills, attitudes and behaviours necessary to make sound financial decisions, based on personal circumstances, to improve financial wellbeing. see further at page 12 – OECD

Aussie research found that only about half of Australians set a budget, what’s more only 38 per cent budget for leisure activities and these stats are also mirrored in the US, Ireland, Norway, Peru, Czech Republic and the UK.

So running your business – Four ways to send your business broke –

  1. Have no plan: No business plan, marketing plan, nor understanding of your competition, customer needs, or even your business needs – no big picture/strategic direction is sighted by insolvency administrators as the number one reason businesses go broke;
  2. Take Credit as your Friend: Always offer credit to your customers and then ignore debt collection processes (and don’t charge interest on overdue accounts), and start with insufficient seed-money. Don’t analyse cash flow – high cash use was the second highest cause of business insolvency;
  3. Think nothing about spending: Increase your stores of stock (especially stock that can’t be sold), spend up big on office or shop fit-outs, the very latest in software and equipment, and employ too many staff;
  4. Guess your prices to charge: To speed up going broke don’t ever think about how you set prices, simply ‘price everything to sell’ irrespective of what it costs to produce and deliver in your business.

Need help? Not sure? Call for FREE 30min advice / Strategy session today!

Call 0407 361 596 Aust and also get FREE “Avoid these GST mistakes” – There’s 18 that the Tax Office see regularly – Get them right!

Email or call 0407 361 596 Australia