Today’s BAS webinar can help you get it right

It probably doesn’t get more embarrassing than what popular host and celebrity Steve Harvey had to go through when he misread the score card and named the wrong contestant as winner of the 2015 Miss Universe. Let’s embrace the pain one more time. Yikes!

But many of us know someone who has badly misread or ignored their business scorecard and embarrassment on the world stage would have been the least of their problems. Happily, the amiable and now really, really, careful Steve Harvey, was asked back to host the following year’s event – all was forgiven. The tax office and the commercial environment in which we all operate is rarely as forgiving.

The bright side? BAS is more than just a chore – it can help you

Let’s focus on the chief benefit of BAS. If nothing else, it provides your business with a quarterly scorecard letting you know whether you’re up or down as well as a direct comparison to previous quarters. But leaving it at that is to ignore some other key benefits available to you if you know what you’re doing. By saving your spot at our “Make BAS Work for YOU” webinar today at 2.30pm AEST, Ben and I can help you:

Manage your cashflow – sometimes the line between money for your BAS bill and operating capital become so blurry that things can become difficult. Let’s work on ensuring things are easier.
Free your time – you already have a job. Business owner. The good news is that bookkeeper needn’t appear on your job description and you certainly shouldn’t be forced to wear that hat at night or on the weekends.
Work your advisers – there’s more to delivering maximum benefit than ticking boxes and submitting forms (we think so, anyway). We want to share strategies that will make sure you get the most out of your team.
Increase performance – knowing the score and understanding how to read it will instantly help you play the game better. This is also true in business. Let’s work on that together.
Pay your fair share – Are common mistakes killing your bottom line? DIY business owners are realising more and more that inexperienced or stuck-in-their-ways accountants and even themselves are letting the side down. Time to put a stop to that.

Okay, we’re almost ready to go, enough reading, let’s get you booked in if you’re not already. And if you can’t join us, we’d still love to hear from you, so feel free to contact us when you’re ready.

Will “Siri” get done for tax evasion?

The thing about ground-breaking entrepreneurs is that they think differently about everyday situations by applying very different, often elevated, goals and functionality to common items and situations.

Back in the day we all thought about how sensible phones, phone lists/directories and maps were. So we put them in books and carried them around with us. A certain world famous innovator then said, “I agree with this in principle but like most important items (currency, keys, identification) shouldn’t it fit in our pocket for maximum accessibility and ease of use? Could we just load it onto a small phone?” I wasn’t there but we can’t completely rule this out as a scenario.

This sounds crazy but he has had some winning ideas

Bill Gates suggested during a recent sit down, that robots should/could pay taxes. Ridiculous! Almost as ridiculous as spruiking computer operating systems in the seventies and eighties… Let’s hear him out. Click here.

Just in case you’re super short on time, here’s the summary of that clip. Bill suggests that if factory workers get taxed, then so should the robots (or perhaps their manufacturers) who do similar work. Interesting but why? Well the premise of income tax is that the government can provide benefits to the wider community with the tax collected. Furthermore, those people who no longer need to do the redundant factory work can, instead, set to work helping with community services for example. The problem with this is that since robots do the work and are not taxed, there’s no tax money to provide funding for these other services.

If nothing else, this is a great example of thinking about something quite common and applying different thinking to address an everyday need. And we like that.

We think differently too

We don’t hold the key to modern day communications and content storage but we do think very differently about accounting services. This is important – especially at tax time. Or more importantly, before tax time. Three things to consider talking to us about:

BAS deadlines are fast approaching and we want to ensure that you’re ready to benefit from this quarterly exercise [Webinar – How to make BAS work for you].
Tax season is just over the horizon but with the earth circling the sun at a spectacular 110,000km/h it’ll be June 30 before you know it. Maybe give us a call sooner rather than later to make sure you don’t end up paying too much tax.
Now is the time to make sure your tax deductible dollars do some good in the world. We are committed to ensuring that our income benefits worthy causes that positively impact the lives of those less fortunate and inspiring others to do likewise.

Here at Inspire, we want to make a difference to our clients, their businesses and their families but we feel we have to make a difference for that can’t do so for themselves. And let’s face it, the robots won’t help, they don’t use accountants because as Mr Gates points out – they don’t pay taxes. See you in court, Siri!

If you’d like to hear more about how you can save on taxes, make a difference to people’s lives or both, please do drop us a line.

The Price is Right… or is it?

Not enough thought goes into pricing. Either that or the wrong thought processes are applied to pricing. We see it time and time again in various businesses and particularly start-ups. Over the weekend I thought about the often-seen “closing down sales” as I did a bit of shopping. It occurred to me that there’s more to these sales than meets the eye, in part, because there’s more to pricing than meets the eye.

When it comes to products and services, it’s often a case of what should I sell it for as opposed to what do I need to sell it for. New businesses will often base their pricing on what they see their competitors doing instead of first understanding how much revenue they need to cover the rent, utilities, inventory, wages and the list goes on. Understanding that these items are critical to business owners’ ability to function commercially, covering these off in the price of what they’re selling will determine the viability of the enterprise.

It’s not just the small business owner that is faced with these realities, but at least they have the ability to set their own pricing. By adding value, varying services, getting creative with their marketing, price variations may sit well with the target market. However, there are some instances where the practitioner has a lot less wriggle room because the customer doesn’t understand or accept the true value of the services. So it becomes tricky when the customer bucks at the price. So what can you do?

Doctor Doctor, give me the news

Elizabeth Oliver, a GP based in Sydney, wrote an exceptional article that found its way into the Brisbane Times. It begins with a patient suggesting Dr Oliver was making easy money and ends with the realisation that after all costs have been accounted for, there’s not much left over. A realisation that for many GPs around the country is a bleak reality. From a $70 fee:

“35 per cent goes to the practice for rent, electricity, equipment, and to pay the receptionist and nurse. After tax, my Medicare levy and student debt, I receive $24.56.

But I bulk-billed him (the patient), which means I made $13.01. That dizzying sum covers sick, holiday and maternity leave, superannuation and about $8000 a year in fees, insurance and continuing training.”

Work out what you need to cover before setting your price

And for that matter, work out how much profit you need to make to ensure that you take home an amount that you can live on and live with. Remember, you probably didn’t get into small business to just scrape by. Think about desired lifestyle as well as contingencies.

Talk to us about all aspects of your business numbers because we believe that small businesses can, do and should benefit the owner(s) and their families. So it’s not just a matter of knowing your numbers but what your number should be. If you don’t, it may be you that pays a hefty price.

Why didn’t coalmine canaries have fitbits?

Every Friday we just want to stop the world for a moment and give you a couple of real tips to think about that will make a real difference to your business and in your life.

There’s an old saying advising us all that prevention is better than cure. And it’s absolutely true – in health and in business. The problem is that oftentimes, illness strikes and has us in its grip before we realize what has happened. This also happens in small businesses. You wake up one morning, the sun’s shining, breakfast, off to see the accountant and suddenly you’re being presented with a P&L sheet written in red blood ink. Where’s the warning? Is it too late? Will panicking help or will open-mouthed shock save us? So many questions as hysteria starts shutting off oxygen to the rational parts of the brain. And yes, sadly, sometimes it is too late… sometimes.

Canaries are “lag indicators”

A long time ago in lands far, far away, canaries where taken down mine shafts with coal miners. The theory was that if the canary lost consciousness (okay, died) because of the presence of noxious gases, it was time to evacuate the mine. Okay, two things here. Firstly, yes canaries lack the capacity to survive poisons in the quantities that we can but also they don’t need as much oxygen to stay alive (hmmm). Secondly, and closer to the point, by the time anyone noticed the deceased canary there was very little time, if any, to escape. Kind of like having a reverse parking warning tone go off after you’ve hit the car behind you. Too little too late.

Fun fact: an elevated heart rate (even in canaries) can be a sign that an avoidable oxygen crisis is somewhere around the corner.

If only 19th century coal miners had fitted their canaries with fitbits, they would have noted the elevated avian pulse rates and headed for the nearest exit. Alas…

The value of “Lead Indicators”

Unlike the canary, a fitbit uses facts to offer precursors to what might happen next as opposed to what has already happened. Newspaper reports, P&Ls and almanacs are basically, historical records. From this we can deduce what went right and what went wrong.

You, we, all of us are often better serves by “lead indicators”. A “Value of Sales Pipeline” is a great example. It’s useful because it will tell you what is going to happen (good, bad or indifferent), well before it actually does. This gives you time to make adjustments – strategic, operational etc – that will benefit your business. If you are genuinely interested in how you can proactively drive your business forward and grow and protect your profits, we’d love to chat with you about that proactively instead of re-actively.

For triple extra-small fitbits… can’t help you.

Enjoy your weekend.

…and here’s the other half of your success formula

Because we’re all about helping families derive more benefit from the business they own rather than merely working in a business that owns them, we need to shine a light on the whole truth about commercial success. It’s a little unconventional but there again, I already started a paragraph with “because” so what could be worse than that, right?

It’s not all about the numbers

Knowing your numbers, working with them, understanding that they are indicators and/or contra-indicators of future success is vital to the long term success and growth of your business. That’s the truth! And so is this:

“Your pipeline is your lifeline”

Without a sales and/or services pipeline that is constantly full or being filled, all your tomorrows may be filled with uncertainty. Again, understanding and using your numbers to great effect will ensure the revenue you generate offers maximum benefit – but without pipeline replenishment, you’ll have less and less to work with.

Here’s what we all need to know

Brands make businesses sustainable. It’s true. Whether large or small, your business runs on reputation and what people perceive to be the value of your goods and services within a defined market. I’m pretty sure that’s written down somewhere.

In our opinion, “Dent: key person of influence” is one of the best in the business of business branding and for that matter, so does the Huffington Post. They dubbed them “the world’s leading personal brand accelerator.”

An offer as close to free as we could make it!

Okay, back to making your revenue do more for you and your business: I have a discount code that will save you 50% on the price of admission to Dent Business Brand Accelerator events in Sydney Melbourne and Brisbane.

The focus is on:

Scalability – freeing yourself from the day to day demands of running your business.

Differentiation – it feels like “unique” is becoming extinct. Here’s how to stand out from the crowd.

Influence – helping you to set yourself and your business as a destination which in turn draws the market to you.

Aaaand here’s the code that unlocks the huge discounts and details the dates and venues.

I can’t make the Brisbane event but such is the value to businesses of the principles taught here, I’m heading down to the Sydney event which is Saturday 25 February.

Seriously, what’s not to like?

Like a rolling… tennis ball

To say things got a bit warm over the weekend would be like suggesting too much tax is an inconvenience. As the mercury soared, I stayed close to the air-conditioning while my thoughts were with small business owners.

Something we hear quite often from our new and prospective clients is that they are trying to grow and increase profits but it can feel like two steps forward, two steps back – on a good day.

Why? Well one reason is tax. And one of the reasons we at Inspire exist is because so many small businesses find that they are paying too much tax. That explains the demand for accountants that are committed to easing the tax burden so families can benefit from the business that provides for them.

As people come to this realisation, we are becoming more and more involved in businesses and the business of helping people achieve tax savings (to help give and spread an understanding of necessary steps, we’re making a webinar available to everyone who’s interested but more on that tomorrow).

Tax helps those that help themselves

So, the long held premise upon which the concept of tax was built was that it would help the powers that be provide public works and armies. This morphed into exploring (and probably conquering faraway lands), public buildings and satellite launches (I’ve probably skipped over about 1500-2000years here… to save time).

Here’s the interesting part: over the years (and centuries) governments around the world have become more and more creative when it comes to instituting new and interesting taxes. Yet the average small business owner continues to apply a “medieval” approach to insulating themselves against profit-sapping taxes. I’m not suggesting that an exotic array of tips and tricks need to be employed to ensure you don’t simply “give away” close to 50% of your profits in taxes.

However, let me just reinforce an important point. If upwards of 45% tax on your hard-earned profits seems steeper than your next electricity bill after a summer of stiflingly hot weekends – it’s time to test drive a new accountant .

Quick tip – to help minimise tax, check out the feasibility and benefits of structuring your business as a trust or company as opposed to a sole trader… and be pleasantly surprised!

If you’re not moving up, you’re rolling backwards

World champion basketball coach Pat Riley once offered that teams should think of themselves as a tennis ball on a hill. If they are not actively be propelled up the hill, they are actually rolling down the hill – there is no in between.

This absolutely applies to your business results in general and your tax situation in particular. A “she’ll be right” or “I’ll just keep plugging along” leads to the same curious ending as the example of a child opening a savings account with a $5 deposit, only find that at year’s end not only has the deposit disappeared in a puff of account-keeping fees but an amount is actually owing.

Quick tip – a profit improvement plan, carefully crafted by your accountant can safeguard your hard-earned returns.

Okay, there’s a break in the hot weather, you might want to give your business a break as well by calling us for a chat about how best to keep your cash in your pocket.

Little (coffee) shop of horrors (part two)

If a familiarity if not a deep understanding of the numbers in and around your business was not necessary, we wouldn’t be here. But it is and we are definitely here for you. So grab a coffee if that’s your thing and we can also finish the story about our café.

But before we go there, we wanted to help you understand why numbers are important instead of just saying they’re important over and over again. Now remember, there are two sides to every coin and that goes for numbers that relate to your business as well. Let’s take a look at the pros and cons and find out why numbers aren’t always enough.

The pros and cons of numbers

Numbers can’t be all good though, can they? We think that numbers are all good but it takes a skilled listener and experienced practitioner to interpret and translate them into profitable actions. Nonetheless, here are the pros and cons – shortlisted.

Pros:

Honest – When it comes to profit and loss, the numbers are absolute quantities. They don’t lie because they cannot lie.
Translatable – language, especial the English language is very much open to interpretation. Income of say $800k per annum versus $1.2m in outgoings per annum means trouble in any language.
Indicative and interpretative – a number of financial services providers are at pains to ensure that you (potential clients) understand that past performance is not an accurate predictor of future performance. Numbers however can and should be used to let you know what is working in your business and what needs to be adjusted.

Cons:

In the hands and calculators of the uninformed numbers can be made to paint pictures that are not entirely accurate or even misleading. It’s important that the people working on your numbers are on your side and share your code of ethics.
Numbers can become more and more complex the deeper you dig. Knowing when to say when to avoid “analysis paralysis” is key.
Delving into the figures before arriving at a conclusion isn’t as sexy as just going on gut feel and running with an idea – but dealing with sizable losses isn’t very sexy either.

So whatever happened with the café?

We love coffee and we love numbers but we couldn’t serve two masters. The numbers helped us to decide that doing good for our clients with our accounting skills was logical, practical and best for all.

We still love to give our all to our Inspire clients and we still don’t sic the clock and timesheet on you if you need to enquire about something. And we most certainly still relish the opportunity to have a coffee with you – we’ll just get it from the local coffee shop instead.

Little (coffee) shop of horrors (part one): Numbers never lie

Did we mention we had a coffee shop – of sorts? Yeah, we wanted people we met to be at ease and to share our fondness for constructive chats. So we turned part of our somewhat oversized premises into a café.

It was a really cool idea and one that most certainly would have worked under a different set of circumstances. Under the circumstances that governed our reality at the time though, we realised that in order to highlight our customer service culture, we had gone against other rules that we live by. Diversification is good and creatively liberating etc but if it isn’t in line with your carefully laid plans and imperatives – shelve it for the moment.

Why did we do it?

We often talk about the fact that applying the timesheet to every facet of the business we have built is counterproductive. Simply put, when you’re charging by the six minute increment, clients tend not to talk all that much. Furthermore, understanding only part of their story as a result, limits the depth of service we can provide. This is bad.

We felt like we needed to go further than getting rid of timesheets, doing good in the world and valuing our service based on the measure of satisfaction (tax savings) we provide. “Alright then, let’s run our own café, so people really feel like we’re on their side and are committed to devoting time, effort and energy to what’s important to them.” But there’s a fairly harsh saying that actually has some truth to it:

“the road to hell is paved with good intentions”

Two important definitions that applied to us, that may apply to you:

Good business – working at aspects of your business that you (and your accountant) agree are logical, profitable and efficient
Good intentions – as trying to run additional activities, based on a good idea, that are time-consuming, confusing and are eating into your profits.

So just do my job? Where’s the fun in that?!

Alright, you sound upset. But we’re not saying, don’t step outside the box, don’t push the boundaries, don’t try new things. The point is that if your heart and brain say something’s a good idea, let the numbers confirm that before you charge in.

Numbers are great for double-checking theory, logic and feasibility. Some of you may be thinking that adding a new and interesting wrinkle to your business that you can “learn as you go” will eventually pay for itself. Good but first test that theory with an analysis of the numbers which should also include the time costs. Not everything’s about dollars and cents.

Keep in mind that your business should be a vehicle, an enabler of some of your life goals shared by both you and those most important to you.

To be continued…

The art of making the weekends count

The traditional “week-end” is becoming a fading memory for a lot of the business owners we get to speak with and hear from. That’s not to say that they aren’t getting any time off to enjoy life and/or spend time with family but the consensus is there’s less time to do the things that matter.

Ok, you’re hearing that a lot lately – it’s not new news.

But many of you will also know that we built this business with two goals in mind:

To ensure that business owners we deal with and their families reap maximum benefit from their efforts, sacrifice and dedication; and
Provide a service where our clients aren’t charged according to the time sheet instead, our value is assessed by the difference we make for your business (more on this later).

The first point: in thinking over the weekends count about the benefits to society of family and the preservation of family life, something really struck home.

And it’s ironic.

So many business owners are so committed to providing their loved ones the best possible life that they freely accept that things are going to be hard. As a result, many cultivate a “just get on with it” attitude.

Which is commendable in one sense but it can blind people to what might be the “easier way” and ultimately a better way.

The “easier way” has a bad reputation

And it’s not fair – on anyone. Yes, business owners should be prepared to give it their all but this shouldn’t blind them to the opportunities that outside expertise, automated systems and good old fashion advice provide.

Which brings us to point number two.

One of the reasons people shy away from chatting about their business circumstances with their accountant is because it can cost a lot of money.

Why talk through some potentially complicated business scenarios in your life and rack up a bill in the hundreds of dollars, when you could just suffer through hours of leg work yourself for free.

Stress doesn’t cost you anything does it… or does it?

It sounds a bit cheeky and flippant but unfortunately, at one stage or another, this is what goes on in the mind of the average small business owner.

Giving back is something we can help you do – for you

We love hearing about how people reach a certain position in life and not only are they able to give back to their community but they actually do it.

With the right advice from trusted partners and service providers it is possible to give back to those that mean most to you.

For example, many of our clients have already benefited from an improved cash flow position within their business as a result of our time together.

In turn, they have chosen to “pay back” their families and loved ones (with interest… compounded daily in some cases) by being available to them, by being able to inspire and capture special moments.

That’s why they got into business in the first place and that’s why we got into this business.

We hope you had a memorable weekend (even a sneaky long weekend for some of you) and we look forward to inspiring you daily.

Make it Rain. Invest in Multiple Buckets. Create automatic cash flow

This article contains the revolutionary secret to beating the ever growing statistics of Business’ not making it after their first couple of years. These five simple steps will change the future of you and your business forever.

Step 5 – Invest in Multiple Buckets, create automatic cash flow.

Remember Jesus first miracle?

He turned water into wine.

You’ve got cash in your Profit War Chest; now it’s time to turn profit it into Wealth

Step 5 – Invest in Multiple Buckets.

The act of wealth creation does not require divine favour nor is it a method limited to a select few.

It’s simply a series of small multiplications over time.

But the outcomes are nothing short of miraculous.

To illustrate.

Imagine a chess board.

It has 64 squares.

If you started with one grain of rice on the first square of a chess board.

Doubled it on the second square.

And kept doubling it on each square.

How much rice would you have on the 64th square?

Lots.

18,446,744,073,709,551,615 grains of rice.

Imagine now that rice was $1, and each square represented the remaining years of your life.

This is actually a true story about the Inventor of Chess.

He presented the game to the Emperor of India.

The Emperor was so impressed he offers the inventor any reward he wants.

The Inventor asks for a single grain of rice on the first square of his chess board,

2 on the second,

4 on the third,

8 on the fourth

and so on.

The emperor was amazed at the modesty of the inventors request, and thinking that it can’t be that much rice, granted his wish!

But he soon becomes enraged as the court treasurers report that by the 64th square, he would need to deliver a heap larger than Mount Everest!

Unfortunately, the inventor lost his life.

But not before making the point that exponential growth rapidly leads to results we can hardly believe.

Here’s the recipe for Wealth.

Profit + Good Debt x Return On Investment = Wealth

So ask yourself, are you using the wealth equation to turn profits into wealth?

“Your first priority in any budget should be to set aside a fixed percentage of your income for savings. The rule is PAY YOURSELF FIRST.”

George Clason, Author “Richest Man In Babylon”
“Give me a lever long enough and a fulcrum on which to place it and I shall move the world.” – Archimedes
“Compound interest is the 8th Wonder of the world. He who understands it, earns it. He who doesn’t, pays it.” – Albert Einstein
“Wealth is measured in Time, not Dollars” – Robert Kiyosaki, Author “Rich Dad Poor Dad”

NEXT STEPS:

Book in a Quick 10 Min Chat here with an Inspire Chartered Accountant to talk about Tax Saving Strategies that will work for you.
Attend our Cash Rich Business Workshop where we will spend 2 hours walking you through the exact step by step process to become a far more profitable business than you currently are. https://inspireca.com/events