It’s that time of the year when keen business owners start to think about how to best position themselves for the financial year ahead. Getting the books up to date, engaging with your tax accountant early and being proactive around your finances and technology strategy are good starting places, but let’s dig into some practical tips to get your accounts ready for the financial year ahead and ultimately make the most of your returns.

1. Good foundation and clean data

Start with a good foundation and clean data. It makes your (and your advisor’s) life easier. Keeping on top of reconciliations and having the books up to date serves a few purposes. It allows you to see where you are from a financial position and assists your accountant when they are digging into the numbers around tax planning time. Introducing technology into this process, it can make your life easier and further drive efficiencies. Our favourite software to use in this space is Xero, as it has loads of functionality and has the ability to bolt-on external applications to level up its capabilities. If you are a bit stuck on your technology stack, a good place to start this journey is at the Xero App Store.

2. Don’t buy just to get a deduction

Don’t buy something just to get the deduction, it is important that any business expenditure is in line with your strategy and forecast. I know, every advertisement at this time of the year as a small business owner is telling you to buy now to get the deduction pre 30th June. But remember the additional benefit is only 25-30%, dependent on your structure. If you do, however, have business expenses you need to purchase, then talk to an advisor about bringing these forward to claim the deduction this financial year.

3. Understand your financial position

Know your numbers and make sure you bring your advisor along with you. Pricing and margin review work is top of mind for most businesses at the moment. With labour shortages, rising inflation and supply chain issues, there is an opportunity now to connect with your accountant pre-year end so that you can plan for the coming financial year and beyond.

Set realistic budgets and forecasts that build in reserves and buffers during uncertain times. Cash is king, so make sure you have a keen focus on your cash conversion cycle and ensure you build our scenarios based on different variables so you know when the business hits certain trigger points what actions then need to be taken by the business.

It’s a busy time of the year, but with a little planning, discipline and working on the business, small business owners are in the best position possible to reset, reflect and start the new financial year off with a strong financial foundation.

Contributed by Sarah Lawrance, Founder & CEO of Hot Toast and member of the Xero Partner Advisory Council

This article is not financial, legal, or tax advice, we have not considered your personal circumstances and strongly advise you to seek your own professional advice.

The Australian Taxation Office (ATO) has been writing to employers to let them know that Single Touch Payroll (STP) Phase 2 is here. Employers that can switch but have not yet done so are urged to start reporting as soon as possible.

As of 14 June, there are over 144,000 employers reporting STP Phase 2 information for over 1.7 million individuals.

ATO Deputy Commissioner Emma Rosenzweig explained that the 2019-20 budget expanded the data collected by the ATO through STP. This expansion of data collected is also known as STP Phase 2 and began on 1 January 2022.

“For employees, STP and STP2 mean that pay, tax, and super information is reported to us each time they are paid. They can easily view their year-to-date tax and super information in ATO online services, or through their registered tax agent, whenever they want to check.”

“For employers, STP2 will streamline reporting about their employees to multiple government agencies, saving time, money and red-tape, letting employers focus on their business.

“For those who receive Centrelink payments, reporting will be simpler and easier,” Ms Rosenzweig said.

“Payslip details will be pre-filled into Centrelink’s online account and app, so people will simply need to check, confirm or change this information before submitting, saving time, money and stress.”

Digital service providers that need more time to update their products have applied for deferrals, which cover their customers. Employers using these digital service providers should transition to STP2 when their payroll product is ready.

The ATO has consulted widely with the industry and is taking a flexible approach to transition, which mirrors the approach to STP Phase 1 implementation. Employers and their registered agents can apply to the ATO if they need more time.

Ms Rosenzweig said there are a few things that employers setting up STP Phase 2 for the first time need to do to ensure a smooth transition:

• check when your payroll product will be ready for STP Phase 2 reporting. Many products are ready now, with more becoming available over the coming months
• review pay codes – do you already have pay codes set up for amounts that now need to be itemised separately such as bonuses, commissions, Director’s fees, and overtime?
• review allowances as they will be reported differently
• understand changes to salary sacrifice reporting
• check if you have all the relevant information stored in your payroll system
• talk to your tax or BAS professional or payroll provider if you need a helping hand.

To help employers better understand the changes, the ATO has developed a range of handy fact sheets, checklists and other resources. These are available on ato.gov.au/stpresources

We’re getting close to the end of financial year (EOFY), and as a small business, this can be an overwhelming time to manage, on top of the day-to-day responsibilities of running a successful business. one thing we can do is make tech work for you this EOFY

Research commissioned by Dropbox revealed 38% of Aussies admit their digital documents are a “hot mess” meaning they usually have to hunt for what they are after – and at this time of year, small business owners and sole traders begin to scramble towards the end of June. There’s no better time than right now to invest in technology that can make tax time a breeze.  

Make tech work

1. Digitise to free your mind

Do you and your employees always have access to important documents and files? If not, you’re not alone – more than seven in ten (72%) Australians admit to not having digital backups of all their important documents. To make sure all files and documents are always available and secure, digitise them and store them on a trusted cloud platform. 

2. Automated features and functions 

Pick a tech platform with features that can be a help, not a hindrance so you can save yourself the hassle and leave all the ‘busy’ work to the tech. For example, the Dropbox platform automatically syncs files from devices straight to the cloud, so you can ‘set and forget’. Becoming familiar with all the features and functions will allow you to focus more on growing your business and less on admin. 

3. Organise, organise, organise

Once you’ve digitised, it’s time to organise! Use your chosen platform’s key functions to create folders and subfolders separating out key files and documents required for tax time for your small business. Dropbox has an automatic filing function which can be a real-time-saver, as well as an awesome search function so you can easily find what you need. 

4. Transfer files with ease

Now the fun part – sending off your documents to the accountant. Dropbox Transfer can send your consolidated files at the click of the button, and your tax agent won’t even need a Dropbox account to receive them. 

5. Electronic signatures 

Ditch the old hard copy of your tax return for a digital copy instead. In addition, ask your tax agent if they offer electronic signatures so you can sign your tax documents virtually. Dropbox has a HelloSign integration which allows you to get your taxes signed off with a couple of clicks. 

Taking these simple steps and investing in technology to make tax time easier for yourself and your team, allows you to focus on taking your business to the next level.

This article was written and provided by Dropbox

Shopify has revealed the next era of commerce and unveiled a major set of products for Australia at the company’s new twice-yearly global product release, Summer ‘22 Edition.

Against a backdrop of global inflation, supply chain issues, and advertising regulations, Shopify is deepening its commitment to Australia with a set of new products to help merchants shift from the direct-to-consumer (D2C) era to a critical new phase: Connect to Consumer (C2C).

“At Shopify, we believe in the infinite game. That means we’re constantly pushing the boundaries of what’s possible for entrepreneurs,” said Tobi Lütke, Founder & CEO of Shopify.

“We work hard to solve the complex challenges merchants face today while constantly imagining entirely new ways for them to grow their businesses. With Shopify Editions, we’re sharing our big bets and latest innovations in commerce so that those ambitious enough to try their hand at entrepreneurship can start and scale faster than ever before.”

The global commerce platform powering millions of merchants said the relationship between brand and customer is more than just the transaction as customers want to feel connected, considered, and appreciated by the brands they support. C2C is an entirely new phase of commerce where opportunities to connect exist everywhere. If D2C gave merchants a direct line to consumers, C2C gives merchants endless pathways and puts authenticity, loyalty, and trust at the heart of every interaction between merchants and consumers.

“We’re strengthening our investment in innovation and product development to help Aussie merchants build a future that moves beyond transactional relationships to cultivate the power of connection,” said Shaun Broughton, Shopify’s Managing Director (APAC).

Shopify’s latest set of updates is focused on personalisation and giving independent businesses full control to create novel experiences across every potential touchpoint with consumers in ways that keep them coming back.

Here’s a snapshot of what Shopify launched at Summer ‘22 Edition:

Shopify unlocks NFT-powered opportunity for brands to reward loyalty with tokengated commerce

In this new era of commerce, non-fungible tokens (NFTs) represent a unique opportunity to build even deeper connections through brand loyalty. This is increasingly important in a world where customer acquisition costs are on the rise and fostering a loyal brand community is key to business growth.

Shopify research found that more than one quarter (27%) of Australian consumers said they’re likely to purchase an NFT in 2022. Tokengated commerce on Shopify offers a fundamentally new way to deepen connection between brands and consumers, and reward true fans and VIPs, by giving NFT holders exclusive access to products, perks, and experiences. For these consumers-turned-fans, all they need to do is connect their crypto wallets to a Shopify online store, and they can use their NFTs to unlock exciting experiences. Shopify is making it possible everywhere — from online to mobile to physical retail through POS.

“Tokengated commerce on Shopify allows Australian merchants to offer a fundamentally new way for loyal customers to expand the utility of their NFTs and access personalised experiences from their favourite brands,” saidBroughton.

Tokengated commerce on Shopify will also be multiplayer and collaborative. One brand’s NFT can unlock another brand’s store, making it easier than ever for brands to partner and collaborate.

Shopify expands into B2B to unlock massive market opportunity for Australian merchants

For independent merchants, connecting to consumers isn’t just something that happens one-to-one. There is a whole world of opportunity that exists in merchants connecting with other businesses — billions of untapped revenue and several times that of D2C (source)   — which is why Shopify is introducing B2B.

Directly integrated into Shopify, B2B makes it even easier for Shopify merchants to sell to other businesses using the same platform they use for their D2C storefront. B2B on Shopify offers a similar online store experience that merchants use to sell to consumers, but with customised tools that make it easier to sell wholesale or in bulk directly to large businesses.

“We are now at the point where it should be just as simple for a business looking to sell B2B to manage their products, prices and sales through an e-commerce platform, as it would be for any business selling individual products to consumers. With B2B, Shopify’s helping Aussie merchants expand into an entirely new market category on the same platform they already use to reach consumers.” said Broughton.

With B2B on Shopify, merchants can set customer-specific prices at fixed rates or discounted retail prices, easily modify currencies and exchange rates for international buyers, and add automated payment terms while integrating with ERP solutions like Acumatica and Netsuite.

Shopify teams up with Google to help Australian brands turn browsers into local buyers

Australian consumers make billions of local searches every month, and nearly 60 per cent of Australians (source) use search engines to find a business online.

With local inventory sync on Google, Shopify merchants can automatically let nearby customers know when a product is available in-store, making it easier than ever to shop and support local brands. Google local inventory sync is available globally to merchants using Shopify’s point-of-sale app.

Shopify Functions is a radical step forward for C2C commerce on Shopify

Shopify is allowing developers to extend or replace Shopify’s backend layer with custom code so they can create out-of-the-box Shopify features to tailor commerce experiences like never before.

Functions creates the flexibility of an open source platform without needing to deal with any of the hosting, security, or code versioning challenges. The custom code runs on Shopify’s global infrastructure, allowing merchants to handle high volume traffic spikes from flash sales while still providing a checkout experience in under five milliseconds.

Starting with Discounts, Functions will let developers build powerful custom offers like volume discounts (e.g., spend $100 get $20 off) or free gift with purchase. Merchants can use these alongside existing Shopify discounts, such as free shipping, without ever needing to touch a line of code.

Functions can be developed for a single merchant or shared with millions of merchants today through the Shopify App Store, meaning developers will have even more ways to generate income with Shopify.

Shopify takes Australian merchants and developers into the C2C era

The Summer ‘22 Edition features more than 100 products, including some recent updates Shopify launched to help merchants find new customers, turn conversations into conversions and make commerce simple:

• Shopify Markets, a cross-border commerce hub that makes global selling the default for our merchants.
• Dovetale, which makes it easy for merchants to grow their business using influencer and affiliate marketing. And Linkpop, our new link-in-bio tool.
• Hydrogen and Oxygen, Hydrogen provides tools to accelerate headless storefront builds, and Oxygen is Shopify’s globally distributed hosting solution for Hydrogen storefronts.
• New developer tools, inviting even more innovation on Shopify

DataMesh group, the Sydney-based payment services software company and Ingenico, a Worldline brand today announces a strategic partnership to support DataMesh’s growth strategy within the Australian payment ecosystem. As a part of the partnership, Ingenico has rolled out its latest Axium range of Ingenico’s DX8000 Android Smart Point Of Sale (POS) terminals to DataMesh’s merchant and retailer network across Australia.  

In combination with Ingenico’s DX8000 Android-based terminals and DataMesh’s payment solution software, merchants are offered a state-of-the-art frictionless payment solution, focusing on real-time transactions while maintaining the highest security levels, enabling acquirers to focus on the relationship with the merchants.

For Ingenico, this partnership furthers its strategy to enable seamless payments and to continue to support the highly dynamic Australian market further cementing its position as an ecosystem enabler empowering commerce and retailers across all channels, simplifying payments and delivering innovative customer journeys.

Commenting on the successful pilot between DataMesh and Ingenico, Anushka Weeratunga, Managing Director for Ingenico Pacific said: “We are delighted to form this long-term strategic partnership with DataMesh into the highly dynamic Australian market as well as support Datamesh with the full set of Ingenico’s market leading capabilities. This is one of many milestones we look forward to delivering into the region in partnership with Datamesh.”

The partnership with Ingenico is bolstering DataMesh’s ability to offer new capabilities to merchants as well as take away the burden put on acquiring banks processing transactions.

DataMesh founder and CEO, Mark Nagy says of the partnership: “Ingenico is trusted amongst merchants and acquirers globally, so naturally this partnership  helps us expand our offering and confidently seed our payments technology into new markets. At DataMesh, we are determined to make elegant and seamless solutions for all parties involved in financial payments, and we believe Ingenico shares this belief. We look forward to working with them over the course of this partnership.”

The Uniden XTRAK 50 is a UHF handheld radio with industry-leading features. It is now possible to turn the handheld UHF radio into a fully functional in-vehicle radio, which ensures users are never out of contact and are always able to communicate while on the road or in remote locations.

Ideal for work vehicles, fleet cars and 4WD situations, the waterproof XTRAK 50 transitions easily from portable use to an in-vehicle hands-free device when accompanied by the Uniden ACCX50 car kit, including a charger, magnetic mount bracket, and magnetic antenna that sits on top of the vehicle. This flexibility also enables the radio to be used between vehicles, handy for both professionals and recreational drivers.

The accessory instantly enhances the accessibility and stability of the smart UHF radio, which includes an Australian-first one-touch instant replay button on a handheld UHF radio. This feature can record and replay up to four minutes of recent messages and avoids missing important transmissions in noisy environments, with the ability to listen to communications received up to six minutes prior. Away from the vehicle, the XTRAK 50 is a compact companion to keep users in touch in the outdoors, thanks to a range of up to 17km.

The UHF accessory car kit also secures and mounts the XTRAK 50 for easy visibility of the large anti-glare OLED display. The radio provides 5-Watt power, 80 UHF channels, and a Smart Key to toggle between instant channel, monitor, call tone or equaliser. The long-life battery achieves exceptional performance with a standby time of 30 hours, making it the perfect unit for rugged conditions and heavy-duty use.

Uniden XTRAK 50 5-Watt Waterproof Smart UHF Handheld Radio with Large OLED Display and One Touch Instant Replay Function RRP: $329.95

Uniden ACCX50 UHF Accessory Car Kit – Charger, Magnetic Bracket & Antenna for XTRAK 50 Series RRP: $129.95

The Salvation Army’s annual Red Shield Appeal is now in its final week, aiming to reach the $36 million goal by 30 June. The Salvos are asking Australians to consider a different kind of End of Financial Year deal – using their tax-break donations to make a difference in someone’s life. 

“While Australians prepare for this year’s tax return and decide on their End of Financial Year spending and saving, we ask them to consider making a tax-deductible gift to the Red Shield Appeal,” says Major Bruce Harmer, The Salvation Army’s National Public Relations Secretary. 

“A gift of $50 can help someone experiencing financial hardship pay for essential groceries, while $75 can provide hearty meals for a week for someone doing it tough. These gifts are particularly important at this time, given the mounting pressure on families and individuals across the nation, because of the rising cost of living,” says Major Harmer. 

Recent research from The Salvation Army revealed that nine in ten respondents (93%) were living below the poverty line, while 48% went without meals because they couldn’t afford it.

Over half (56%) could not afford medical or dental treatment when needed, and over a third (36%) could not afford medicines when prescribed by a doctor. 

Unsurprisingly, 32% could not afford to pay their rent or mortgage on time– a trend that will worsen with rising interest rates and growing housing stress. 

“This research paints a picture of just how tough it is for individuals and families. Australians have felt the pinch the last few years, but for some the situation is so dire that they find themselves living below the poverty line – in a country that’s as ‘lucky’ as ours.” 

“That’s why we ask, if you are able to please consider making a tax-deductible donation to our Red Shield Appeal. Your donation will make a difference in someone’s life – and what better deal could you possibly ask for this End of Financial Year?” says Major Harmer.

Around one person is assisted every 17 seconds through The Salvation Army’s nationwide network of services.* That’s approximately three people each minute, and over a million Aussie’s each year.

“On behalf of The Salvation Army, thank you for helping us leave no one in need,” says Major Harmer. “We couldn’t do it without you.”

To donate to The Salvation Army’s Red Shield Appeal, or if you need support from The Salvos, visit salvationarmy.org.au or call 13 SALVOS. You can also donate at any Salvos Store.

Supply chain shortages on heavy machinery and transport equipment have driven demand for end of financial year auctions through the roof as businesses struggle to get their hands on assets to complete projects.

Supply chain shortages are hindering global vehicle and equipment production and is expected to persist through 2022 and into early 2023 until supply can catch up with demand.

Lloyds Auctions are seeing a rise for demand in their auctions which is driving up prices on equipment in the civil and transport industries.

“Over recent months we have seen a massive demand from our bidders who are constantly actively looking to secure ready to work equipment in order to complete major projects and keep hard-working Australians in jobs,” said Mr. Lee Hames, Chief Operations Officer for Lloyds Auctions.

“As we come towards end of financial year the demand for this equipment is skyrocketing as businesses are looking to claim tax benefits before June 30, so we have actually enlisted 5 heavy equipment and transport auctions across the country online right now,” continued Mr. Hames.

“Many businesses are unable to wait until early next year for equipment to come in, they need it now, and we hope through these auctions we can help the community get the equipment they need,” said Mr. Hames.

Lloyds are holding online auctions in locations across the nation including Western Australia, Darwin, Southeast Queensland, Mackay and Northern New South Wales from the 27th – 29th June.

The auctions feature equipment including dump trucks, wheel loaders, tipper trucks, prime movers, excavators, utility vehicles and more.

“Bidders can expect to get their hands on some ready to work machinery and transport equipment that they normally wouldn’t be able to get until next year due to the currently supply chain shortage around the world,” continued Mr. Hames.

The auctions run from the 27th-29th June and you can view all of the auctions here

Australia Post has today announced its 2022 Local Business Heroes, celebrating and supporting dozens of local Australian businesses, including many in regional areas.

A total of 57 Local Business Heroes were chosen from nearly one thousand entries, with each recipient now set to receive a ‘Heroes Package’ worth up to $5,000 thanks to their unique and valued connection to their local community.

Australia Post’s Heroes will each feature in a marketing campaign in their local Post Office for a month, receive personalised sending offers and gain access to business coaching through Small Business Australia.

Research conducted by Deloitte Access Economics last year showed that two out of three businesses visited the Post Office at least once a week with 82 per cent of businesses stating that Post Office services positively impacted their business.

Australia Post Executive General Manager Retail, Catriona Noble said the organisation was delighted to be supporting these deserving Local Business Heroes, with the help of local Post Offices.

“This program is a great reflection of the important and essential role Post Offices play in connecting communities and supporting local business,” Ms Noble said.

“Many of the small business heroes were nominated thanks to an established and strong relationship with their local Post Office team, so it’s wonderful to see these connections strengthened even further.”

Executive General Manager Customer and Commercial, Gary Starr said the program, now in its second year, played an important role in supporting local businesses to grow.

“We know small and medium businesses are the backbone of Australian communities and we’re committed to helping them succeed,” Mr Starr said.

“I look forward to seeing each of the Local Business Heroes feature across our network and connecting them with even more customers.”

The full list of Australian Local Business Heroes is available now at auspost.com.au/localbusinessheroes