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BUSINESS BENCHMARKS
Small business benchmarks are key financial ratios developed to help business owners compare their performance against similar businesses in their industry.

HMW Partners can equip you with the tools you need to ensure your business is performing in line with industry standards.

Industry Profiles 
Industry Profiles will give you an understanding of what is driving success in your industry and how you can apply this to your own business. You can make better, more informed decisions about where you are heading.

• The Industry Profiles contain
• An overview of the industry
• Explanation of the finding on businesses of all sizes
• Examination of the characteristics of profitable businesses
• The average results grouped by turnover, profit and location

Small Business Analysis
The Small Business Analysis (SBA) is a highly customised report that utilises your financial data to calculate industry specific KPIs (Key Performance Indicators) which are then compared to the industry standards.

The comprehensive report is completed by a Benchmarks Analyst who compares your business to the most recent benchmarks of your industry and outlays strategies to improve your business performance.

Key areas of analysis are:

• Profitability
• Productivity
• Personnel structure
• Expense optimistation

Personalised Business Benchmarking
Our personalised benchmarking reports allow us to provide you with current market information and direct comparison of your business against industry leaders.

We give you the necessary information to discuss what is driving success in your industry and what action to take to emulate that success, including:

• 85+ Industry Profiles and benchmark tables
• A comprehensive and personalised benchmark report
• Budgets – The ability to adjust all financial data to create a customised budget for or investigate “what if” scenarios
• Financial Ratios function - Investigate in and adjust key financial ratios
• Sustainable Growth Rate feature

Please contact us if you are interested in discussing which of the above would best suit your business needs.

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 Caution: Small business scammers

Overpayment scams

A scammer will purchase goods and services from a company and send a cheque, money order or credit card payment for more than the agreed price.

The scammer will then request a refund for the overpaid amount in hope that the owner will do so before realising that the cheque in fact bounced or that their money order or credit cards were phony.

Office supply scams
These will involve the receipt and billing of non-ordered goods that are usually and regularly purchased by the business. Such items may include paper, printing or maintenance supplies and advertising.

The caller will claim to be the company’s regular supplier and offer ‘limited time only’ offers that are in fact overpriced and of bad quality.

Requesting an order number, inspecting the quality of goods and checking that they were actually ordered before paying any invoice is good idea.

Direct entry/ unauthorised advertising
A scammer sends a subscription proposal, disguised as an invoice or renewal notice, for listings and advertisements in magazines or on questionable websites and business registers that were not authorised or requested.

These are often overseas requests and, although sometimes appearing to be free, will demand payment after the subscription is signed off on.  The scammer may even call to confirm details of a pre-booked advertisement or offer a ‘free trial’ for which they will in fact charge you for later.

Company records should always be checked to ensure that these orders were actually placed and any ‘free trial’ offer should be checked for hidden terms.

Domain name scams
A business will be sent an unsolicited invoice for an internet domain name registration or renewal. The notice could be from a domain name supplier attempting to trick them into signing up to their service, or from a scammer trying to steal money. 

Businesses should always match renewal notices with their current domain name and look for differences such as ‘.com.au’ instead of ‘.net.au’.

To ensure that a business is protected, business owners should also: 

• Keep their filing and accounting systems well organised so that they can easily detect bogus accounts; 
• Limit the number of people authorised to place orders and make payments for the business; 
• Ensure that computer firewalls and protection software is up to date; 
• Report any known scams to the appropriate government agency by visiting the SCAMwatch website.

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PERSONAL PROPERTY SECURITIES ACT (PPSA)
The new Personal Property Securities Act (PPSA), effective from October 2011, will dramatically change the way security is taken over personal property, impacting many businesses and individuals nation-wide.

The PPSA reform will require all forms of security interest, in respect to personal property, to be registered under the Personal Property Securities Register, a new and single online register controlled by the Insolvency and Trustee Service Australia.

Replacing almost all existing Commonwealth, State and Territory laws and registers, the PPSA will affect such securities as:

• Company charges; 
• Motor vehicles; 
• Stock mortgages; 
• Crops and livestock; 
• Bills of sale; 
• Intellectual property; 
• Licences; 
• Household items; 
• Business and retail stock; 
• Financial instruments such as shares; 
• Business equipment; and 
• Other securities, both tangible and intangible, which affect personal property rights.

Those that are refinancing, leasing assets, selling goods on credit or providing them on consignment should be most aware and should take the necessary steps to protect the interests of their business and to ensure compliance with the new provisions.

Businesses and individuals will need to: 

• Review their business arrangements between group entities; 
• Review their terms of supply; 
• Review their financing arrangements and contracts; 
• Identify the assets that will be affected by the new laws; 
• Identify any transactions which need to be registered; 
• Update their procedures for making new transactions; 
• Update their existing arrangements, not currently considered to be security interests, and ensure that they are registered; 
• Review and redraft their standard terms; and
• Ensure that registered security interests do not exceed expectations.

Businesses and individuals with ownership of an affected security interest and those that use retention of title arrangements in their business operations, or have used one which will remain in place when the PPSA commences, should seek professional advice now.

Failing to prepare for and accommodate these new laws may result in a loss of assets.

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MAKING USE OF TABLET TECHNOLOGY
After almost two years since the release of Apple’s first iPad computer, the rising demand for tablet technology continues to soar.

With their convenient size, in-built keypad functionality and handwriting recognition technology, incorporating tablet devices into everyday business activities is proving beneficial to many businesses around the world.

Tablet computers have been seen acting as mobile portfolios for designers and architects, note-taking tools for use in company board meetings, for displaying presentations and as on-the go computers for mobile warehouse employees, salespeople, real estate agents and medical staff.

The benefits of using tablet technology in business can mean a reduction in paper and printing costs, improved customer service, better staff-efficiency and, in some cases, even removing the need for employing certain staff.  In addition to this, these aesthetically pleasing devices can lend businesses a certain air of high-tech sophistication and elegance which can assist in improving their company image and developing client trust.

Below are some examples of innovative ways in which businesses are taking advantage of tablet technology that one might consider for their own business: 

• Scheduling client appointments with task manager apps like ‘Things’. 
• Supplying delivery drivers with the ability to tap into a company’s CRM system from the road, obtain customer signatures which can sent directly back to the office and email invoices at the customer’s door. 
• Replacing wait staff with self-serve menus in restaurants - this could not only cut down costs of wages and printing hard-copy menus but it could also save time by allowing customers to quickly transmit their culinary desires directly to the kitchen and increasing the speed at which tables turn over. 
• Participating in online business meetings is possible by either the 2-way audio function or via instant chat. 
• Accessing and sharing files through the tablet’s easy synch and back-up capabilities. 
• In industries such as the media, tablets can be given to news anchors and radio hosts to replace paper scripts and can also double as audio recording devices for a journalist’s vox-pops. 
• Databases and inventory can be kept by retailers with apps like ‘Bento’ and customers can be given the opportunity to search for in-store items, make direct purchases and find out specific details about products. 
• Some hotels have incorporated tablets into their guest rooms and suites, offering guests the opportunity to order room service items, make reservations, request wake-up calls and even control the lights and room temperature in their room. 
• Car dealerships are utilising the technology as sales tools which can provide a salesperson with information about various car models, provide customers with interactive customisation and quicken the credit-approval process.
• One of the most impressive features is the ability to turn the device into a cash register. By attaching a special card-reader or by simply keying in the card numbers, applications such as ‘Square’ can process credit card payments and other transactions without the merchant fees involved in EFTPOS rental.

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WHAT IS YOUR POSITIONING STRATEGY?
Businesses that fail to declare or report all their cash transactions will be exposed this financial year when the ATO commences their crack down on the cash economy.

An estimated 110,000 taxpayers who are suspected of participating in the cash economy will be contacted by mail in efforts to deal with under-reported or omitted income, and cash transactions used to hide or evade tax obligations.

Business taxpayers will be identified through one of the ATO’s cash economy indicators: 

• Small business benchmarks; 
• Data matching; and
• Allegations of tax evasion by members of the community.

The majority of letters sent will be to businesses identified as reporting outside the small business benchmarks for their industry. Letters will contain information on how their business transactions compare with key benchmark ratios, the selection process for business auditing, how benchmarks are used to calculate default assessments and how they can correct their mistakes or make voluntary disclosures.

Eight thousand letters were recently sent to businesses that had reported transactions outside the small business benchmarks for their industry and plenty more are to come. Taxpayers are encouraged to review their records to ensure they have correctly reported all income – especially cash transactions.

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SERVICED OFFICE SPACE AVAILABLE
HMW Partners currently have boutique serviced office space available for sublease.

The sublease gives tenants the opportunity to occupy approximately 25sqm in a 4.5 star ABGR Rated premium level building.

The tenance, located on Level 22, has an elevated position providing a beautiful view corridor of the Brisbane River and the Storey Bridge.  The space is designed to suit 3 people and includes 3 workstations,printing area and ample shelving space.  It is full wired to telephone and computer networks and access to kitchen facilities and boardrooms is included. 

If you are interested please contact Erin Headley on (07) 3234 8988 or erin@hmw.com.au

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REMINDERS FOR YOUR DIARY

 

November

21 - Monthly activity statement for October 2011 due.

25 - Quarterly activity statement, quarter 1, 2011-12 due.

28 - Superannuation guarantee charge statement and payment due for quarter 1, 2011-12, if the employer did not pay enough contributions on time.

 

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This newsletter is for guidance only, and professional advice should be obtained before acting on any information contained herein. Neither the publishers nor the distributors can accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this publication.

Liability limited by a scheme approved under Professional Standards Legislation.