MGI News December 2014

MGI News December 2014

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  Well - anotheryear has come and (nearly) gone. What progress has your business made and what changes can you make in 2015 to take it to the next level? A new year provides a great opportunity to wipe the slate clean, clear all those issues that have held you back and re-set the course for the next 12 months. One of the key things businesses can do is take “time out” from the day-to-day operations and lift their focus to a higher level “helicopter” view of their business and where it is headed. So, here are my top six tips for a happy New Year. 1. Take the opportunity to future proof your business “Future proofing” is all about anticipating the future and developing strategies to minimise Six Super Business Tips for a Prosperous New Year news Welcome to the December edition of MGI news. With Christmas just around the corner, this edition Grant Field shares six tips to take your business to the next level in 2015. You will also see an update on the latest changes to Self-Managed Super Funds and the imminent end of the ATO’s Project Do It campaign (and the opportunity to report all undeclared investments). Happy reading. BRISBANE OFFICE: Location: Level 1, 200 Mary Street BRISBANE QLD 4000 Australia Phone: +61 7 3002 4800 Fax: +61 7 3229 5603 Email: [email protected] GOLD COAST OFFICE Location: Ground Floor, 64 Marine Parade Southport QLD 4215 Australia Phone: +61 7 5591 1661 Fax: +61 7 5591 1772 Email: [email protected] ISSUE 12 / DECEMBER 2014 shocks and capitalise on opportunities. Sounds a bit like planning doesn’t it? That’s exactly what it is. The problem is many businesses don’t plan. Often this can be because they don’t know where to start. This is where having a process (and an external facilitator) can help. We use a simple process – Now, Where, How. This requires thought about where the business is NOW, WHERE you want the business to be in the future and an action plan to work out HOW you’re going to get there. 2. Ensure you are in a sound financial position Part of future proofing your business is to ensure you are in a sound financial position so that you can weather PROFITABILITYESTATE PLANNINGWASTEFUTURE PROOFFINANCIALPOSITION STRUCTURE
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  news mgi newsISSUE 12 / DECEMBER 2014 www.mgisq.com.au 2 any business storms that may come your way. If you don’t know where you are currently and where you’re heading, you’re flying blind. So make sure you know some key financial parameters for your business. Here are three key areas worth looking at to assess how your business is going. If you’re not already looking at these, please talk to us. a. Know your return on capital employed (ROCE). Think of your business as a pot of money – your money. You need to ensure you make an appropriate return on your money. b. Know your free cash flow (FCF), or available cash. This will help you understand where the money has gone. c. Know your working capital requirements, particularly if your business is growing. It’s no use aiming to grow the business if you don’t know how much cash you’re going to need to fund that growth. 3. Focus on profitability, not turnover Don’t chase sales just for the sake of it. Make sure you’re making money out of your sales. Turnover is vanity but profit is sanity. 4. Make sure you’re in the right structure What might have been appropriate years ago may not be appropriate now. Times change – tax laws change, asset protection laws change and your personal circumstances change. Whilst we constantly review your business structures, it’s useful to catch up with us to ensure they still work for your current circumstances. 5. Consider your estate planning We’ll all die sometime. Make sure your estate goes to who you want it to when you die. Many people don’t realise that a lot of our assets are not really “our” assets. Things like your jointly owned family home, your super and anything held in a family trust are most likely not “your” assets to leave, so be sure that you have thought things through when drafting your Will. Ideally, ask us to review it for you and work with your lawyer when drafting it. We would generally recommend to clients to review their Will every couple of years. If we haven’t done this recently, we recommend you send it in to us. For most business owners, the bulk of their wealth is increasing held in super and the jointly owned family home, neither of which usually form part of your estate. 6. Reduce waste in your business If you don’t think you have waste in your business, try thinking about the waste in your home – wasted power, wasted water, wasted food and wasted money. Now try putting a dollar figure to this. Then do the same with your business. You’ll be amazed at how much waste you’ll find. Over the years we’ve worked with many, many business owners to get their (business) ducks in a row. If you’d like to know more about any of the above six tips, take advantage of our complimentary New Year business health check available at www. mgisq.com.au. If you discover areas of your business needing a ‘clean up’ why not take advantage of this traditionally slower time of year and speak to your MGI advisor today about how to get your business in top shape for a prosperous new year. Christmas message The team at MGI would like to thank all our clients for trusting us to help manage their financial affairs in 2014. We hope you have a safe and merry Christmas and look forward to working closely with you again in the New Year. Please note our offices in both Brisbane and the Gold Coast will close on 23 December and will reopen on Monday 5 January. Six Super Business Tips for a Prosperous New Year (continued from front page)
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  Changes to SMSF’sand insurance With effect from 1 July 2014, Self-Managed Super Funds (SMSFs) will be prohibited from holding the following types of insurance on behalf of a member: • Trauma insurance, and • Own occupation total and permanent disability insurance (TPD). However, transitional measures mean that these changes will not affect fund members who had such cover in place prior to 1 July 2014. The changes will also not prevent a member holding an “any occupation” TPD insurance policy in their SMSF. Trauma insurance typically involves a lump sum payout and is awarded when a person is diagnosed with a critical illness or injury and is paid regardless of a person’s capacity to continue to work. In the past, some members obtained a funding benefit in having their super fund pay their trauma insurance premiums for them. However, there were some practical problems in that in the event of a claim, the fund rules often prevented the proceeds being paid to the member and therefore the insurance proceeds were “trapped” inside the fund. These are some of the reasons for the change. If you currently hold these types of policies within your SMSF, you should also be aware that once you cancel them you will not be allowed to take out fresh policies of the same type in your SMSF. We recommend that you check the insurance policies held within your SMSF and consult your life insurance agent or contact us in need. Melbourne accounting firm MPR joins the MGI Group MGI recently welcomed Melbourne based accounting firm, the MPR Group, to its network, filling an important gap in the Melbourne market. MPR Managing Partner Matt Murphy and MGI Australasia Chairman Grant Field announce MPR Group’s admittance to the MGI network As we all know, the world is now a “global village”. Being part of MGI enables us to better service those of our clients who may be looking to do business overseas or interstate within Australia. It also enables us to service foreign clients looking to do business in Australia. MGI is also in discussion with a number of other potential member firms in major provincial cities throughout Australasia Cloud computing: The opportunities are sky high Have you moved to a cloud-based accounting system yet? If not you could be missing out on key benefits that cloud accounting offers compared to the more traditional accounting software packages. Three years after the introduction of cloud accounting the number of businesses jumping on board is on the rise. What is cloud computing? Cloud computing is essentially data that is stored and accessed online. You access cloud-based computing packages through monthly subscriptions. This is different to software applications that are purchased upfront and installed on your computer. Is it secure? You can control who accesses your data by granting levels of permissions to internal staff, bookkeepers and your accountant. Additionally, many cloud-based accounting packages are encrypted to the same standard applied by internet banking. What are the benefits? • A real-time view of your cash flow and business performance • Simultaneous access of your financial information by multiple users anywhere in the world, anytime of the day • Improved efficiency and security with sensitive data entered directly online rather than mailed in hard-copy, on USB or via email • Increased accuracy and speed with the ability to establish automatic bank feeds • Cost-effective options depending on the size and complexity of your business and accounting needs How do I find out more? We can help you select an accounting solution that is right for your business. If you would like to investigate the possibility of moving to cloud accounting, speak to one of our experts today. www.mgisq.com.au ISSUE 12 / DECEMBER 2014 mgi news 3
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  Key Dates &Tax Deadlines 21 December 2014 Due date to lodge and pay monthly statements for November 2014. 15 January 2015 Due date to lodge 2014 income tax returns for all entities (other than individuals) that were classified as “taxable large/ medium entities” in the previous year. 15 January 2015 Due date to lodge 2014 income tax returns for taxable head companies of consolidated groups (including new registrants), that have a member classified as a “large/ medium entity” in the previous year. For a full list of key dates head to www.mgisq.com.au/resources/key_dates Time running out on ATO offer to declare offshore investments The ATO is currently running an amnesty project offering taxpayers the chance to disclose previously undeclared offshore investments with the offer of reduced penalties and no criminal prosecution. While 1,500 Australian taxpayers have reported undisclosed offshore income and assets, only a handful of Australian taxpayers have come forward to declare their overseas property assets, as part of the Project Do It Campaign. Whilst we do not believe this project affects any of our clients, you may be aware of someone who might be affected. As the amnesty closes on the 19th December, those who may be affected should contact us without delay and/ or visit the ATO website. It is the ATO’s stated intention to prosecute those who do not come forward under the amnesty. news BRISBANE OFFICE: Location: Level 1, 200 Mary Street BRISBANE QLD 4000 Australia Phone: +61 7 3002 4800 Fax: +61 7 3229 5603 Email: [email protected] GOLD COAST OFFICE Location: Ground Floor, 64 Marine Parade Southport QLD 4215 Australia Phone: +61 7 5591 1661 Fax: +61 7 5591 1772 Email: [email protected] MGI refers to one or more of the independent member firms of the MGI international alliance of independent auditing, accounting and consulting firms. Each MGI firm in Australasia is a separate legal entity and has no liability for another Australasian or international member’s acts or omissions. MGI is a brand name for the MGI Australasian network and for each of the MGI member firms worldwide. Liability limited by a scheme approved under Professional Standards Legislation. ABN 68 295 962 698 mgi news ISSUE 12 / DECEMBER 2014 www.mgisq.com.au 4 2 Minutes with Stacey Regan If you’ve been into our Brisbane office in recent months you’ll have no doubt met Stacey. She’s our Receptionist and valued member of our administration team. What is your favourite music on your ipod at the moment? Beyonce and Sam Smith Name 2 things that people would not know about you. 1. I have my own nutrition page on Instagram. 2. I am currently studying Nutritional Counselling. What are your interests outside of work? I love going to Harlow hot yoga classes. I also love making healthy meals and treats. Who or what inspires you? I am very inspired by people who do not give up, no matter what life has thrown at them. What is the one thing you cannot live without? Moisturizer Team News MGI South Queensland recently welcomed a number of new team members. Ria Simona has joined us as a Bookkeeper at our Southport office, whilst Nikala Chenoweth and Amanda Salmon have joined our Brisbane office as Marketing and Business Development Manager and Administration Assistant respectively. Sadly Natalia Kolakowski is finishing after three and a half years with the firm. We wish her all the best and she will certainly be missed by our audit team. Quote of the month “If one does not know to which port one is sailing, no wind is favorable.” Lucius Annaeus Seneca