Author Archives: Angus Jones

About Angus Jones

Angus started his first small business in 1989 and has since gone on to have a successful career in marketing. He realised although there were many websites for small business none was addressing the question of how to. Angus has a passion to articulate benefits that add value to customers/readers.

Business Insurance – protect your business

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In many of the guides available from this website we have been discussing liability associated with running a business.  We have used extreme examples, like losing your house, so you understand worst-case scenarios.  The good news is that we can protect ourselves against most of these liabilities and this guide will explain the key insurance types you should consider.

Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.
An entity which provides insurance is known as an insurer, insurance company, insurance carrier or underwriter. A person or entity who buys insurance is known as an insured or as a policyholder. The insurance transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer’s promise to compensate the insured in the event of a covered loss. The loss may or may not be financial, but it must be reducible to financial terms, and usually involves something in which the insured has an insurable interest established by ownership, possession, or pre-existing relationship.
(source Wikipedia)

(source Wikipedia)

WHY do I need Business Insurance?

First consider your personal life.  Do you insure your car, home, health, income, or life?  Yes, most of you do protect yourself from unexpected expenses in the unlikely event something goes wrong.  A business is no different!

WHAT might we need insurance cover for?

In business the sorts of things we would consider protecting include your workers, your personal liability, company assets like buildings, company revenue, and your customer.

HOW do I know which insurance policies I will need?

Some insurance is compulsory and includes Public liability, Third-party Personal Injury (if you own a car), and Worker’s Compensation (if you have workers).

Public Liability Insurance

Public liability insurance covers you for third party injury or death. It helps protect you and your business when you are liable for negligence. This can be as simple of someone falling over in your shop but other examples include:

  • food poisoning
  • property damage, such as causing a fire
  • providing bad advice, e.g. selling a commercial fridge to a restaurant that fails to keep its temperature meaning the restaurant incurs a loss of inventory
  • nervous shock, such as emotional distress or a recognised psychiatric illness
Third-party Personal Injury insurance

You cannot register a vehicle in Australia without this insurance however please make sure you declare you will be using the vehicle for business purposes.

Workers Compensation Insurance

If someone is injured or illness occurs in a workplace you have responsibilities to cover the costs which will be incurred, you cannot just send them off to a bulk billing doctor and pretend it happened at home.  This insurance will cover worker’s compensation, first aid, and rehabilitation.  There are authorised providers of this type of insurance and a list is available from APRA https://www.apra.gov.au/register-of-general-insurance

Some quick callouts.  Sole Traders cannot cover themselves individually.  Independent contractors may require their own insurance. 

Other insurance policies you may consider include (not compulsory):

Accident and Liability Insurance

If your business is likely to be sued,  then you should consider this insurance.  For some industries this is mandatory, for others optional. Further information by industry resources can be found here https://www.business.gov.au/Planning/Industry-information

You might consider this insurance if you:

  • are a company director or senior manager
  • work in an industry that attracts large government fines
  • collect personal data of customers
  • sell, supply, deliver or in some cases service goods or services that could cause damage, injury or emotional distress
  • provide professional advice
  • sign contractual obligations that possibly could go wrong or not be met
Stock, Product and Asset Insurance

If your business would fail from loss of an asset or stock, insurance may reduce that risk and could include insuring for:

  • Building and Contents
  • Farm crops, livestock, machinery
  • Goods in transit either as delivery or perhaps you own assets being moved like a bulldozer
  • Electric or machinery breakdown and or including spoilt stock, for example food
Personal or Loss of Income Insurance

In the event of a disaster to you or your business could you or your family survive a loss of income?  These are both personal and business insurances you may want to consider:

  • Income Protection
  • Life Insurance
  • Disability insurance
  • Business interruption or loss of profits (for specific insured dangers like fire)
  • Management liability (protects personal assets)
  • Employee theft or Fraud
Technology and Cyber Crime Insurance

Criminals are more likely to break into your computer network and damage or steal from your business than break into your premises today. Every year this becomes a bigger issue and you should take steps to protect both your expensive computer hardware and the even more valuable data that supports your business.

SUMMARY – Talk to an Insurance Brocker

Knowing what insurance policies you need can be complicated and we recommend that you speak with a licensed insurance broker or advisor. We also recommend they are licensed which can be checked on the ASIC website. https://connectonline.asic.gov.au/RegistrySearch/faces/landing/ProfessionalRegisters.jspx?_adf.ctrl-state=xxgvmg709_4

Payroll – paying employees

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Within your small business, people are your most valuable resource but unless they are a family member they are unlikely going to work for free.  This means that you will need to pay them.  That sounds easy but you have to deduct income tax, pay superannuation, accrue holiday and sick leave and the list goes on. In this guide, we will look at payroll requirements, explain how you pay tax, and look at some of the solutions to make it easier.

There are 10 minimum entitlements you have to provide to all employees called The National Employment Standards (NES). The 10 minimum entitlements of the NES are:
Maximum weekly hours.
Requests for flexible working arrangements.
Parental leave and related entitlements.
Annual leave.
Personal/carer’s leave, compassionate leave, and unpaid family and domestic violence leave.
Community service leave.
Long service leave.
Public holidays.
Notice of termination and redundancy pay.
Fair Work Information Statement.
Note there are some exceptions for casuals. More details can be found on the NES website

WHY should I care about payroll?

The payroll process is important as a small business need to do two things:
  1. Pay employees the right amount at the right time, every time. Fairwork provides a base pay calculator which can be found here. https://calculate.fairwork.gov.au/FindYourAward
  2. Withhold the appropriate amount of tax, provide that to the Australian Tax Office with the required reports, and as part of this keep accurate records.  You also need to provide the employee with a payslip and keep records for 7 years.

WHAT you need to know about Payroll and Tax

Three types of tax must be paid:
  1. PAYG withholding – Pay As You Go tax is the employer assisting the employee meet their end of year tax liability. You must register to start the process, you must ensure the worker is entitled to work in Australia and you must withhold the tax every time you issue payment to your staff. Details on how to pay this tax can be found later in this guide. More details can be found on your obligations here. https://www.ato.gov.au/business/payg-withholding/
  2. Payroll Tax – This is a state-by-state tax and is a tax on your business not the employee. It is calculated as a percentage of your total wage bill once you exceed a certain threshold. Further details can be found here. Threshold and payroll tax rates, as well as payment requirements, can be found here:
    1. ACT Revenue Office
    1. Northern Territory Revenue
    1. NSW Revenue
    1. Business Queensland payroll tax
    1. Revenue SA
    1. State Revenue Office of Tasmania
    1. State Revenue Office Victoria
    1. WA Office of State Revenue
  3. Fringe benefits Tax – FBT is a tax that employers pay when they provide certain benefits to their employees, including their employees’ family or other associates. The benefit may be in addition to, or part of, their salary or wage package. More details and how to pay can be found here https://www.ato.gov.au/General/Fringe-benefits-tax-(FBT)/ A common example of this may be FBT payable on a company car used for work and pleasure.

A further requirement in the payroll process is the payment of Superannuation.  If you pay an employee more than $450 a month then you must contribute a further legislated amount to an employee’s chosen superannuation fund. https://www.ato.gov.au/Business/Super-for-employers/

Leave is also an entitlement that must be calculated but is not compulsory on the payslip. The types of leave include:
  • Annual Leave – workers accumulate leave from the day they start at a rate of 4 weeks for every 12 months worked. It does not apply to casuals and should be accrued in your accounts so you know that you have a debt that must be paid at some time.
  • Parental Leave – Also known as Maternity leave, it is an entitlement of leave when a child is born or adopted. To be eligible you must have worked for at least 12 months for your organisation and the leave is up to 12 months unpaid. https://www.fairwork.gov.au/leave/maternity-and-parental-leave
  • Sick and carer’s leave – Full-time and part-time employees can take paid leave to help with personal illness or injury, caring responsibilities, and family emergencies. Employees are entitled to 10 days of sick leave for every year of service. Casuals get none. https://www.fairwork.gov.au/leave/sick-and-carers-leave/paid-sick-and-carers-leave
  • Public, Religious, and cultural holiday – Employees are entitled to paid leave on Public holidays that fall on a normal working day.  Religious and cultural holidays do not have entitled leave however if you do not allow employees to celebrate these it can be discrimination.  A simple solution is to celebrate them together through work events.
  • Long service leave – Employees get long service leave after a long period of working for the same employer. Most employees’ entitlement to long service leave comes from long service leave laws in each state or territory.  https://www.fairwork.gov.au/leave/long-service-leave
    (Casuals are entitled to LSL in some states and territories)

Allowances and deductions may also form part of the payment process with additional funds provided for uniforms or travel, normally the subject of some sort of award.  https://www.fairwork.gov.au/awards-and-agreements/awards  Deductions may include a car lease payment or an extra employee-contributed super payment coming out of their scheduled pay.

HOW do you pay an employee properly?

The more employees you have, the more complex your payroll becomes. You might have a mix of employees on hourly wages and salaries. Throw in some contractors, staff on commission, overtime, expense claims, allowances, and leave entitlements, and your payroll can be different every time you run it. Your options are:

  • By hand: Either on paper or a spreadsheet. Note this may not meet tax office requirements.
  • Payroll software:  Apps can calculate pay and deductions and even fill out tax forms for you. Be sure to read our essential guide on payroll software.
  • Payroll service providers: You can outsource your payroll to experts. Some providers will do absolutely everything for you. Others will help with specific tasks.
  • Accountants and bookkeepers:  You do not have to go to a specialist payroll company. Many accountants and bookkeepers can do payroll for you.

Now that you have managed to work out how to pay your employee you also have to report and pay the Australian Tax Office.  You will have to abide by the Single Touch Payroll reporting guidelines. https://www.ato.gov.au/business/single-touch-payroll/in-detail/single-touch-payroll-employer-reporting-guidelines/  You will report to the ATO every payday how much your employees were paid, how much tax was withheld and what contributions were made to superannuation.

HINTS

Be sure to read our essential guides on Superannuation, roster management, and Payroll software.

SUMMARY – Adhere to Government Regulation around Payroll

Paying an employee is a complicated process with government regulation around conditions, awards, and taxation. It is important that you understand and follow the regulation and ensure your employees are paid the right amount on time every time.

There are lots of great tools and assistance available to help make this process easier.

Cloud based solutions

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It is in the cloud, but what is the cloud and why is it useful to me?  There is so much confusion around exactly what cloud-based solutions is so in this guide we will break it down into simple terms and help you understand what it can do for your small business.

Cloud computing is the on-demand availability of computer system resources, especially data storage and computing power, without direct active management by the user. The term is generally used to describe data centres available to many users over the Internet.
A cloud application, or cloud app, is a software program where cloud-based and local components work together. This model relies on remote servers for processing logic that is accessed through a web browser with a continual internet connection.
Wikipedia

WHY should I care there is a cloud?

The cloud has enabled computing power and applications to be accessible to small businesses that previously only large enterprises could afford to own. So what might have cost you upfront tens to hundreds of thousands of dollars before is now available for a low monthly subscription.

Not only can you get access to computing ability cheaply the other big development that has made this all so accessible is not cloud-specific, it is the improvements in the user interface.  Users no longer have to be super technical instead we have user-intuitive ways to take advantage of solutions that help us in our businesses and lives.  The best example here is thinking of using a smartphone now versus using a dumb phone more than 10 years ago.

WHAT is the cloud and a cloud application?

The cloud is a real thing and literally is a whole bunch of computers sitting in large purpose-built buildings that you can essentially hire usage.  For any computing solution to work, you need a computer that runs an operating system and then application software to run a solution.  A solution might be to share/store files, to act as a post office for email, to keep track of how much money customers have in their bank accounts, to bill customers for electricity, to manage inventory, or keep track of the finances.

Traditionally a business would own this computer know as a server and manage it in house – many still do. The cost of buying this, keeping it running, and securing it is expensive. These servers might be busy for certain times of the day and do almost doing nothing other times of the day.

What cloud computing does is enable servers to be shared amongst many users meaning that each server is better utilised thus reducing costs.  It also allows businesses to only pay for the time they use.  The internet provides a means to use this computer power sitting anywhere in the world.

A Cloud Application is the same concept but rather than just buying computer power and storage, you are renting the use of an application to do a job.  Similar to the computers, to create an application is expensive but if you can share that cost with many more users it will dramatically reduce the cost.  Thus business applications that traditionally could only be afforded by the biggest businesses are now via the internet made accessible to small businesses for low monthly fees.

HOW do I take advantage of Cloud-based solutions?

The following essential guides are available on this site for common business solutions including:

Depending on your industry there are many more cloud solutions which if used correctly could save you time and money allowing you to do more to improve your business.  An internet search will help you find them.

Other advantages that cloud computing provides other than the specific solution and cost savings include:
  • Fast integration of the solution.  No hardware setup or software loading required.
  • Access from anywhere you have internet.
  • Application software is always the latest version.
  • Backup solution normally provided.
  • Better reliability of the hardware. Cloud vendors will guarantee less downtime of solution.
  • Expandability of computing or storage as you need it
  • Enables easy collaboration with others, for example, accountant
Disadvantages can include:
  • Performance can vary by vendor
  • You have no control of technical issues (also an advantage)
  • Security of your data not being in-house (also an advantage)
  • No control of downtime
  • Relies on good internet connectivity
  • Increases your internet allowance usage
  • Support may not be to the level you need

HINTS

A consideration you should have is where is your data being stored.  Is it in Australia in the USA or maybe China?  If this is important to you, possibly from a security perspective, you should ask this question before committing.

Most cloud solutions offer a free trial period so you can test drive the solution.

Always make an extra backup copy of your cloud data in your home or office.

SUMMARY – affordable solutions to drive your business

Cloud-based solutions have allowed enterprise technology to be available to small businesses affordably.  By sharing resources to many customers, prices have fallen.  Competition has ensured vendors provide easy-to-use solutions that will benefit your business.

Payroll Software – simplify paying people

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our guide on payroll we discussed the process of paying an employee. Part of that discussion was the actual calculation and processing, we discussed options like using a third party or using software to do it yourself. In this guide we will review what you need to consider in selecting a Payroll software solution.  

Chances are if you are considering payroll software you already have or are also considering an accounting package solution.  Either way you are best to ensure the solution is either built into the accounting package or can be integrated.  This will save you lots of time. See our essential guide on accounting software solutions.

Small business payroll software is a solution used in-house that helps you streamline and automate payroll processing tasks. The software saves time and effort through automation as well as reduces errors vs doing manually. It often includes modules for time tracking, tax filing, and benefits administration.

WHY do I need software to do my payroll?

Benefits of Small-Business Payroll Software

  1. Automation of processes
  2. Reduced labour costs associated with payroll processing
  3. Greater accuracy and lower risks eliminate the possibility of human error. The software can also remind you of deadlines, so reduce your risk of fines.
  4. Integration with existing software, for example, accounting packages or POS systems
  5. Some packages will provides updated tax tables when the legislation changes so that the right PAYG Withholding is used.

WHAT you need to know about the ATO and Single Touch Payroll

As a small business in Australia you need a package that will comply with the Australian Tax Office Single Touch Payroll (STP) https://www.ato.gov.au/business/single-touch-payroll/in-detail/single-touch-payroll-employer-reporting-guidelines/. Larger business may consider a package that includes other HR functions but it is unlikely a small business you would consider this. Like the accounting, POS, and eCommerce software solutions the Payroll solution is most likely to be cloud-based bringing functionality at a reasonable price.

HOW do I make a decision on which Payroll Software

Features you should consider:

  • Designed for the Australian Tax System and reporting requirements
  • Performs Single Touch Payroll reporting
  • Direct deposit functionality into employees’ bank accounts
  • SuperStream standard compatibility for Superannuation compliance
  • Ability to integrate with other cloud-based software solutions you are using. This will reduce the workload
  • Additional information can be printed on the employee payslip such as annual leave owing
  • The ability to support employee deductions or allowances for example, car leasing or uniform allowance
  • Leave management including annual, sick, and long service
  • Employee portal to update banking details or enter leave
  • Mobile access from your smartphones, both for administration and employee
  • If employees clock on and off, the ability to integrate this process
  • Flexibility to handle employment options including variable hours, bonus payments, contractors, etc
  • New hire integration without external assistance
  • Reporting functionality including leave reporting
  • Alerts or reminders, for example, payment was not successful or Super payment is due
  • Security. Remember all your wage information is on the cloud.  Consider in which country the information is hosted
  • Legislation updates.  How quickly will the software be updated to abide by any new Government legislation?
  • Support.  Various support or training might be available either included or at a cost.
  • Cost and cost of extra features

HINT

Make sure your software choice will does not have any compatibility issues with your and your employee’s bank account intergration. Also ensure the bank will process payments overnight so employees can draw cash the next day.

SUMMARY – Easy Payroll

This software can be accessed inexpensively and will make your life easier. More info on vendors can be found by searching for small business payroll software Australia.

Roster Management for scheduling staff

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John wants Friday off to go to the dentist, Beth cannot work Fridays and Liam is on holiday.  So, who can work on Friday?  For many small businesses rostering staff is a constant challenge. This guide will help you select a roster management software solution by helping you understand what you should take into account.

Rostering software provides a small business with a simple and intuitive method to manage staff rosters and shift structures. Most modern scheduling software also integrates with a host of other services like POS, accounting, payroll, data storage, HR systems, and more.

WHY do I need Roster Management Software?

WHY do I need Roster Management Software?

When done successfully, productivity is maximised and sales are not overrun by labour costs. Week after week, month after month, this task needs to be repeated again and again. This can become a tedious and error-prone process if done manually or on a spreadsheet.

WHAT are the benefits of scheduling software?

  1. Improving communication. Developing and maintaining a strong line of communication with your staff is one of the most important aspects of running a successful business. Many common staff scheduling miscommunications can be prevented.
  2. Increasing accuracy and efficiency. Quickly create, view, and modify schedules, handle leave requests, and keep in contact with employees about scheduling needs. Some programs include automatically populating fields, which help you spend less time manually entering names and numbers.
  3. Maintaining compliance with government regulation. Scheduling applications can be used to automatically track employee hours to prevent law violations. This feature is especially useful for companies that have employees who can legally only work a certain number of hours, such as minors or people receiving disability pensions.
  4. Monitoring labour costs. Scheduling software makes it easy to record hours and payroll data, providing valuable insight into current and future expenses. This allows you better control over budgeting and overtime costs.

HOW do I select the right Roster management solution?

Cloud-based solutions have made this software accessible and affordable to small business and you should consider the following when selecting a vendor:

  • Support – Services to help get you set up and provide the ongoing support you no matter what time of day.
  • UI – User Interface is how the information is presented. Understand how easy it is to use and its ability to be customised.
  • Job library – Ability to have different job roles and to flag which employees can perform which roles. For example, differentiating between a cook and a server.
  • Locations – If you have multiple locations the ability for an employee to be set to only work at one location or both.
  • Employee onboarding – allows paperless capture of essential contact details, tax file number, and superannuation details for new employees.
  • Shift swapping – Allows employees to swap shifts amongst themselves with or without the manager’s approval.
  • Employee availability – Both the ability to drop a shift an employee cannot make or set rules like I am not available every Friday.
  • Employee rules – Ability to set a rule such as Jane is not to be rostered on with Rudy.
  • Forecasting – The ability to have the right number of staff scheduled for a busy Saturday versus a quiet Monday.
  • Employee portal – The ability of the employee to log on via a PC or smartphone to view or administer their schedule.
  • Access – Ability for manger and workers to adapt to last-minute changes like replacing
  • Smartphone access – Ability for manger and workers to adapt to last-minute changes like replacing a sick employee remotely.
  • Auto schedule – Allows artificial intelligence to recommend the best roster with a single click.
  • Schedule alerts – employees decide how they want to get alerts of schedule updates—either via email, SMS, or simply through in-app messages.
  • Group announcements – share company-wide posts including files.
  • Leave management– keep track of employee leave entitlements.
  • Payroll & accounting integration– Integration with your other software solutions to provide integrated information for simplicity and planning. (See our essential guides on Accounting, Payroll, and POS software)
  • Time Clock – Real-time capture of working hours electronically.
  • Reporting – One area that separates good shift planning platforms from average ones is reporting. When they are forecasting shifts, businesses such as restaurants and retail stores need to know what their labour costs will be and how that relates to sales. When integrated with an accounting or POS solution, rich data can help you better plan for events like Christmas sales.
  • Security – Ensure employees can only log in as themselves and that it is simple and secure.
  • eLearning – Ability to have an online training library to ensure staff have the right skills.

This software solution is usually priced per employee per month.

HINT

Roster management software only makes sense when your staff do not work standard working hours like 9 to 5.  We also see the benefit really kicking in when you are trying to manage a larger workforce.

Various vendors can be found by googling small business roster management Australia.

SUMMARY – Save time and frustration

This software solution will reap more benefits the more complicated your staff rosters are and the higher the number of people.  This is one of those tools that, once you implement, you will not survive without.

Internet Plan and Provision

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Just like at home you need to choose an internet provider for your business.  The exception to this is if you run your business from home and can use your existing Internet account. This guide will help you understand the lingo and suggest what to look for in an internet broadband plan.

An Internet or Broadband Plan is a service agreement you have with an internet retailer to provide you with access to the internet. The plan is normally paid by the month.

WHAT are my choices in connecting to the internet?

How can you physically connect to the internet?  Either by a fixed connection (a wire) via the NBN – National Broadband Network – sold to you via a retailer like Telstra, TPG, etc. or via a wireless solution, most likely over mobile phone networks like Optus.  For example, Optus offers mobile data (internet) to a mobile phone or by a wireless broadband modem.

Generally speaking wireless solutions are more expensive but give you more flexibility in access from anywhere there is coverage.

HOW do I choose which internet plan from retailers?

Internet retailers will offer you various connection plans and these will include the following terminology:

How to choose an Internet provider?

  1. Data usage

    This is how much data you may use in a month and is usually expressed in a measure of GB or GigaBytes.  1 GB of download would be equivalent to watching 1 movie on Netflix or about 13,000 emails. How much you need will depend on how many are using your connection and what they are sending and receiving.  The good news is most providers offer an unlimited plan.

  2. Speed

    This may be represented as NBN50 or NBN100.  This refers to how quickly you can send and receive data.  The bigger the number the faster.  Remember in your small business you may be sharing this connection with others so what might be fine at home may not be enough at work.  There is also a difference between download and upload speeds. For example, if the plan is represented as 50/20 it means you will get 50 download speed but only 20 upload speed.  The implication here is if your business sends many large files to clients that 20Mbps (million bits per second) may not be enough.  For those technically minded there are 8 bits in a byte. So to send a 1GB file on a 20Mbps link would take a minimum of almost 7 minutes. Most small offices should be considering a 100/40 plan and even a 250/100 plan if you will use a lot of cloud-based services and video conferencing.

  3. Dynamic vs static IP address

    Think of this like always putting your keys in the same spot (static) versus variable locations (dynamic). You always find your keys but if you always put them in the same spot they are easier to find. It is more cost-effective for internet providers to offer a dynamic address.  However, as a business, if you have an onsite email, web server, or are transferring files out to others a static address is better.

  4. Phone service

    Most providers will either package a phone service or have various options.  In this world of mobiles, you need to consider if that is important to you and at what sort of functionality you require like group hunting (ability to try different numbers till someone answers)

  5. 4G/5G Backup

    This is a service offered by some providers where in the unlikely event the fixed internet goes down you will still have access via the mobile phone network most likely at a slower speed.

  6. Contracts

    Some will offer no lock-in contracts others will offer contracts.  Generally if you lock into a contract you may get a better upfront deal however you cannot change easily if a better deal comes along.  Some providers will also allow you to change plans as your circumstances change.

  7. Customer service

    All is good until something goes wrong.  What hours can you get support?  Is the service prompt (some offer businesses a priority). What country will the call be answered in?

WHEN should you consider a wireless solution? 

If you run a small business out of a truck or small van this would be the obvious choice.  You could do this by either using a hotspot from your phone or have a dedicated mobile broadband device with a separate sim card.  If you run an office that has difficult access for a fixed connection or you move regularly you can also consider a wireless broadband solution. This is a modem that uses either the 4G or 5G mobile phone network but is designed to support more users and has a more cost-effective plan than wireless broadband.

HINT

How do you work out what deals are available?  The good news is there are some great websites like Finder and Whistleout that will allow you to set parameters around what you need and they will present back to you the best deals available from various internet providers. 
https://www.finder.com.au/broadband-plans/business-broadband-plans
https://www.whistleout.com.au/Broadband

There is a lot to consider, but our advice is to evaluate the impact of a slow speed connection, unreliable connection, or time to resolution and what cost/impact that will have on your small business when choosing your provider.  Ask others or check internet forums if they have had bad or good experiences with internet providers especially in the area your business is located. Experience can change by location.

If you already have an internet provider don’t hesitate to shop around for a better intern plan as many businesses are on old uncompetitive plans.

SUMMARY – Reliable Internet plan deal

Reliable internet at a speed and capacity that suits your small business is your goal.  A few minutes comparing deals may save you hundreds of dollars.

Internet Security protects from cyber threat

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What is the most valuable item in your small business?  Is it a piece of machinery or perhaps the data on your computers.  How do you protect that valuable item?  With thick steel bars or a thin sheet of glass?  This guide will discuss Internet Security protecting you from a Cyber Threat.

A Cyber Threat is the possibility of a malicious attempt to steal information, damage or disrupt a computer network or system. This threat will come via the internet , but you can protect yourself via security software and good practise.

 WHY should you care about internet security?

All the benefits of being able to connect with the world via the internet also mean that all the criminals of the world can target you. 

Not only do you want to protect your reputation and secure your private information you also must protect any customer data you have and can be fined for a breach.

WHAT are the types of cyber threats?

Malware

Refers to viruses, spyware, trojans, and worms. Malware can allow someone to take control or spy on an individual’s computer.  Key information stolen includes bank details, credit card numbers, and passwords.

Phishing (pronounced fishing)

This refers to receiving an email from someone pretending to be familiar with you.  They quite often pretend to be a well know Australian brand and encourage you to click on a link.  You will then be asked to provide information like passwords, birth dates or to pay a fake bill. For example, you receive an email from your bank but it is actually a phisher.  They ask you to confirm your banking details including password.  The phisher then uses these details to log into your real account and steal money.

Phishing may occur via email, SMS, instant messaging or social media

Ransomware

This is where your computer is essentially hijacked and you are asked to pay a ransom. Do Not Pay a ransom as they may never give you access even if you pay! It works by you clicking on a link or opening an attachment that installs software which denies you access to your computer or files.  A message is displayed indicating if you pay money they will give you access back.

How do you protect yourself against internet security threats?

To protect your small business from cyber threats you should consider implementing the following:

Antivirus software – Also known as anti-malware software, this is computer software used to detect, prevent, and remove malware.  Bought as a per year subscription you should ensure all PCs are running it and subscriptions are up to date. See Gadget Guy for reviews of the latest antivirus software solutions.

Automatically update your operating system – The likes of Microsoft and Apple are continually providing software updates to counter new threats.  Most modern operating systems are set to automatically update by default but ensure this has not been deactivated.

Automatically update your software applications – Just like your operating system, applications like Microsoft Office need regular security updates. Since the release of Microsoft Office 10, this is automatic by default (from office click file then account to check).

Regularly back up your business’ data – This is a digital copy of your data from your PCs and shared storage devices preferably kept externally to your place of business.  Back up is a critical strategy to restore your business and we cover this in a separate essential guide on Backup.

Multi-Factor Authentication – This is a security measure where two or more proof of identity must be provided to gain access. It would include some combination of password, pin, secret question, physical key (card or token), SMS, and a fingerprint.

Be cautious – If you are asked for money, your password, account details, or login details don’t provide them.

HINT

Implement a password strategy within your business which requires passwords to be strong. The key aspects of a strong password are length (the longer the better); a mix of letters (upper and lower case), numbers, and symbols, no ties to your personal information, and no dictionary words.

Make sure you have a strong password set up on your wi-fi

Decide who you will give access to what data

Teach your staff about the importance and predetermine a plan if you are affected.

Consider taking out technology and cyber crime insurance (see our essential guide on insurance)

SUMMARY – Secure your business against a cyber threat

Do not believe it will not happen to you.  TAKE PRECAUTIONS AGAINST A CYBER THREAT TO YOUR COMPUTERS.  Implement simple internet security steps to protect yourself like having virus software, keeping software up to date, ensuring you have secure passwords, and backing up your data will ensure your reputation and continuity of business.

Computer Network for small offices

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Chances are you have a network at home but you don’t understand what you have. In this case we are referring to a computer network.  Let’s chat about the different types and factors you should consider in making your decisions.

A computer network or data network is a set of computer or network devices connected together to share resources. This is how we allow several devices to connect to the internet in our offices or at home. Other shared resources can include a printer or a file server. Devices we may find connected on a network might include PCs, notebooks, tablets, mobile phones, printers, surveillance cameras, smart devices, NAS shared storage, a backup device, POS terminals, and EFTPOS terminals.

WHY do I need a computer network?

It makes a lot of sense to be able to share resources.  Without a network you might need a printer on everyone’s desk. A network will enable everyone to have the internet and collaborate on shared documents or files.

WHAT are the components of a computer network?

Clients – devices we connect to the network that share the resources, for example, a PC or tablet connecting to a shared printer.

Wi-Fi Modem Router – This can be all in one box or separate devices.  If these are separate devices you would connect them to each other by an ethernet cable.

  • Modem – This is the device that connects to the Internet from the street. Most likely it is the box provided by the NBN to connect to the NBN internet network.
  • Router – you must have at least one router.  It is a cross between a traffic cop and a power board.  It takes one internet connection and turns it into many, directing the traffic around your internal network to make all the magic happen.
  • Wi-Fi access point – If you don’t want to run ethernet cables you can connect your devices by wi-fi. This makes everything wireless except for electricity.  A wi-fi point does have a limit on how many devices can connect, how far they can be from the access point, and the speed the data can be transferred.  Thus is convenient but maybe not as reliable.

Ethernet Cable – this is a physical cable that will connect your various devices so they can talk to one another.  An ethernet cable could run to your PC then to the router then the router to a printer thus allowing you to print. An electrician may run cables in ducts or behind walls so your office does not have visible wires running everywhere.  An ethernet cable has the advantage of being a more reliable and faster connection.

Switch – Your router is likely to have a small switch in the back allowing multiple ethernet cables to be attached.  Also, you may have additional switches to give you additional ports to connect more devices via ethernet cables (think of it like how a power board gives you more sockets)

Transfer speed on your network is shown as Mbps (mega bits per second). The bigger the number the better. As with any system the speed is governed by the weakest link which can be your internet plan speed, your method of transfer being wi-fi or ethernet cable, or the devices such as the router which the data transfers through. Most modern products are designed to support up to 1Gbps (1000 Mbps). In summary, speed is how fast you can transfer a file from A to B.

HOW to make your own network – Which Wi-Fi (wireless) Modem Router?

Without a doubt, the easiest, most economical, and fastest way to get up and running is to buy a wireless router. It will enable you to have a connection with both wi-fi and ethernet cable.  Before you go out and buy one you need to understand the options and features:

  • Mesh Network – This is a recent wireless networking architecture that allows you to gain greater coverage by offering the main router and a satellite unit.  The wi-fi network name remains the same and as you walk around your premises with your device connected wirelessly the connection will be seamlessly handed between the satellite and the main unit dependant which has better signal strength.  This is a more reliable way of offering greater coverage in a larger area.  Some units also use a dedicated wi-fi channel to ensure the best possible speed to the satellite.
  • Wireless extender – This is an optional extra device. As the wireless signal has a limited range you can use an extender box to increase the distance away from the original wi-fi router.  Note that an extender will require you to connect to a different wi-fi network name and enter a password.
  • 2.4Ghz vs 5Ghz –Ghz (gigahertz) refers to the radio frequency.  A 2.4Ghz connection will travel further and better through walls but at a slower speed. 5Ghz will be faster but not have a good range (distance between PC and wi-fi router) and cannot support as many connections per channel.  A dual-band router would normally mean 1 x 2.4GHz and 1 x 5Ghz channels available to connect to.
  • Processor and Ram – Remember we talked about a router being like a traffic cop.  Well the stronger and more intelligent the router is the better it will handle moving all the traffic around. You should choose a device with a multi-core processor and a quantity of RAM for example, 128MB
  • Wi-Fi router speed – Be aware the top speed quoted on the carton is theoretical and you are unlikely to duplicate it in real life.  If speed is a primary concern you should use an Ethernet cable to connect to your wireless router.
  • Smartphone App – Networking has traditionally been the domain of experts.  However most modern units are easy to be set up and can easily be monitored and controlled from a smartphone app.
  • USB port – allows direct connection of a hard drive, printer or back up modem
  • VPN – a feature on high-end routers that allow you to set up a secure connection remotely (from home) back into your office environment.
  • Security – common on all routers that by default ensures only those with the appropriate passwords and permissions can connect to your network or devices on your network.  You don’t want your competitor stealing all your ideas by simply parking their car out the front.

HINTS – 3 Tips to help with your setup

  1. Some form of mobile phone modem is a great backup to keep your business running if the fixed service goes down (some internet providers offer this as standard in their package).
  2. Be sure to read our essential guide on Backing up your Data.  Always back up your data and store it at a secure external location.
  3. Be forward-thinking – Buy quality hardware that will last for many years and allow for expansion in your business when you implement your network. For example, if you get an electrician in to do some ethernet cabling, maybe get some extra points installed.

SUMMARY – Visit Gadget Guy for the latest products

A good quality mesh wi-fi router will meet most small business needs and give you a simple and reliable way to share.

If you require something more complicated or you simply need help be sure to read our essential guide on IT Support.

Our sister publication Gadget Guy has reviews of the latest products to suit your small business. They also have more information on the technology https://www.gadgetguy.com.au/mesh-wifi-need-know-tutorial/

How to buy a photocopier

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title of this topic is a little misleading, as, although you might be interested in a photocopier for your office, these machines do much more. They scan documents, print documents, collate documents and potentially even do some editing. In this guide, we will look at how to get the right photocopier machine in your office by looking at the considerations you should make in your decision.

A photocopier is a machine that makes copies of documents and other visual images onto paper or plastic film quickly and cheaply. Most modern photocopiers use a technology called xerography, a dry process that uses electrostatic charges on a light-sensitive photoreceptor to first attract and then transfer toner particles (a powder) onto paper in the form of an image. Heat, pressure or a combination of both is then used to fuse the toner onto the paper.
Wikipedia

WHY do I need a Copier?

Photocopier versus a printer?

If you are a small company and don’t print or copy much, chances are that you don’t need a dedicated photocopier. Instead, you can manage with an all-in-one printer, which you can read all about in our essential guide to printers.

If however, you print large volumes on various sized paper, need-collated documents such as a brochure, or make regular copies of documents, then a photocopier is a good option.

WHAT you need to know about ways to buy a photocopier?

A copier in its simplest form will cost between $500 to $1,000 but as you start adding multiple sized paper, this can easily climb from $3,000 to $40,000 for a high-speed colour machine.

There are generally four ways you can procure a machine for your business:

Buy or rent a photocopier

  1. Buy a new machine outright

    Take advantage of tax incentives, no contracts or leasing fees

  2. Buy a 2nd hand machine. Note a machine from new will often last 5 to 10 years

    Cheaper but may have reliability issues

  3. Lease a machine. Be sure to read our essential guide on leasing.

    Low upfront cost, latest technology, and bundled maintenance

  4. Managed print services. All-inclusive where you pay by the page

    Only pay for pages printed and includes all consumables

Some vendors will combine these options such as a lease including an agreed number of pages after which you pay by the page.

Photocopiers (including printers) require regular maintenance to ensure reliability. It is normal to pay for a service contract to cover this.

HOW to make a decision on which copier

Once you identify that a photocopier is right for your business, consider the following features in your decision-making process:

  • Multifunction – a machine that will do one or more of the following
    • Photocopying
    • Scanning –  photocopier can directly send the scan to your email or computer
  • Black & white vs colour – ability to produce mono and/or colour. Cheaper machines will be mono only
  • Network – Can have a Wi-Fi and/or Ethernet port to connect to your network
  • Paper size – Support single or multiple paper sizes. A4 (standard), A3 (2xA4), A5 (1/2 of A4)
  • Copy speed – the number of copies that can be printed in one minute expressed as ppm (pages per minute). Consider how much the machine will be used per day, and if a lot of large brochures, flyers, or brochures need to be printed
  • Paper capacity – based on your expected usage, how much paper it holds in its trays
  • Auto doc feeder – instead of placing each page on the glass, a feeder does the work for you
  • Sorter – If printing a 10-page document 5 times it will collate the 5 documents for you
  • Stapling – Ability to staple a collated document for you
  • Reduce or enlarge – the ability to shrink or enlarge text/image on a page from the original
  • Envelopes – If needed can you mass print addresses on envelopes
  • 2 sided – This could be 2 sided scanning or 2 sided printing.  2 sided printing will save paper
  • Toner saving – Toner can be applied at a lower percentage thus saving toner and money at the expense of quality
  • Standby – The machine can go into standby mode to save electricity when not being used
  • Staff identification – allows usage/costs to be identified by individual or job
  • User interface – Consider how simple it is to operate for everyone in the office
  • Security – A feature that enables printing from a PC to be delayed until the user is at the printer to collect confidential documents
  • Manufacturer and support – Ensure the reputation of the vendor and the repair staff.  How quickly will they come to repair a machine?  Do they have the technical ability to keep the machine reliable?
  • Managed machine – By being connected to the internet, the machine will send alerts to an internal employee or maintenance company to indicate an issue or even restock toner
Ongoing costs that should be factored in:
  • Paper
  • Toner
  • Service
  • Drum replacement (every 2 to 3 years)

HINTS

When talking with a photocopier salesperson it’s good to have an idea of the following:
  1. Do you need black & white (mono) or colour printing?
  2. How fast do you need your machine to print (copies per minute)?
  3. How many copies will you print per month?
  4. What size and type of paper will you need to print?
Questions you may ask the dealer/vendor include:
  • How long have you been in business and your staff been working for you?
  • Do you sell multiple brands or only one? Which do you recommend and why?
  • What happens if it breaks down? What are your service agreement T&C’s
  • Do you have a replacement guarantee?
  • Am I responsible for sending a machine in for repair or will it be collected?
  • What is your service response time?
  • How many in-house technicians are available for this model in the local area?

SUMMARY – Reliable Photocopier

For a small business that relies on a lot of printing and copying, a dedicated photocopier will ensure good performance and that you’re not spending too much per page.  However, don’t be oversold on what you need and make sure that the machine can be quickly repaired in the event of a breakdown. More information on Photocopier pricing can be found here https://www.copierchoice.com.au/

POS system or terminal

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In the old days we had a cash register which is a cross between a calculator and a cash box.  These days we have a POS System to transact a sale or order and take cash or credit card payment. In this guide, we will look at why you might need a POS terminal, what you kneed to know and how to buy the right one for your retail environment, cafe or restaurant.

A Point of Sales system (terminal or machine) is an electronic device that allows a physical transaction to occur between a merchant and a customer for a product or service. This is much more than an EFTPOS terminal which we have covered in a separate guide. Put more simply it’s the device they use at McDonald’s to enter your order and take your money.

WHY do I need a POS System or Terminal?

A POS system will automate your process of completeing a transaction rather than writing on paper, using a calculator or simple cash register.

Retail POS software brings many benefits to retailers aside from simply completing transactions. These include:

  • Sales reporting and analytics: Provides retailers with insight into their sales, helping users make informed decisions that strengthen the business.
  • Inventory management: Automates stock control and helps retailers determine optimal product counts and when and how to reorder top-selling products.
  • Customer management capabilities: Help retailers automatically record and track valuable customer information, enabling stronger relationships, and encouraging repeat business.

WHAT do I need to know about POS systems?

 They come in various flavours and can be from simple to very complex.  You could have a solution as a stallholder, a restaurant, or a retail store.  In a retail store with such a system you could scan a bar code to have the item automatically added to a sale, take payment, adjust instore inventory, and pass sale information through to your accounting system. Additionally, in a restaurant you could take an order via a smartphone, add a table number and have the order print out in the kitchen.

Many POS solutions today will help you run and grow your entire business, with information such as detailed sales reports and analytics, employee management and tracking software, inventory management, and gift cards.

HOW to choose the right POS system?

As a small business, it will make much more sense to try to find an off the shelf system rather than going for a custom solution that will have large upfront costs.  The benefit of using a POS system is that it can simplify and automate many of your administration tasks freeing your time up to spend growing your business rather than maintaining it. These cloud solutions will also integrate with your accounting package (see our essential guide on accounting packages and cloud solutions) prepopulating all the data so no manual input is required.

Even though this solution is cloud-based it will still require some hardware at the point of sale like a smartphone, tablet, PC, or dedicated terminal which you will interact with. A cloud-based solution is one where the computing and software sit external to your business and for a monthly fee, you get the functionality without having to invest and maintain expensive backend computing hardware and dedicated software.

When choosing a POS system you should consider
  1. Stand-alone system or Cloud-based?
  2. Does the package suit Australian conditions, for example GST?
  3. Will it work offline?  You need it to still function if the internet goes down.
  4. Does the provider have appropriate security in place to stop others from accessing your data?
  5. Does the solution come with hardware or do I need to buy separate hardware like a tablet?
  6. Cost – how much per month per terminal/store?
  7. Usability – Can it easily be used day to day with minimal training?
  8. Fast & efficient –  How quickly can the operator complete a transaction? Nothing worse than keeping a customer waiting
  9. Will it meet your future needs?  Can you easily add extra terminals?
  10. Does it support value add functionality that might assist your business? For example, inventory tracking
  11. Will it integrate into your existing or planned accounting package?
  12. Does it support EFTPOS or can EFTPOS be integrated?
  13. What reporting is available and how easy is it to interrogate and interpret?
  14. Is customer support available and during what hours?

Some of the companies providing cloud POS solutions in Australia today include Hike Up, Kounta, Retail Express, Square, and Vend.

HINT

Now that you have selected a POS system you also need to consider what additional physical hardware you might need beyond the terminal, tablet or smartphone, such as a cash draw, printer, EFTPOS terminal, bar code scanner, tablet mounting bracket, or contactless credit card reader.

SUMMARY – Off the shelf POS solution

A bit of time invested in this solution will pay dividends in years to come, streamlining your business and freeing up manpower to work on other parts of your business. An off the shelf solution will meet the needs of most small businesses.