Tax Accountants and Advisers Ballina NSW Collins Hume

Surf the Wave to Success 2012

2012-05-16T00:00:00+10:00

Collins Hume's International Business Development Conference in 2012
Surf the Wave to Success conference for business owners, to be held in the beautiful Telo Islands off the coast of Western Sumatra in October, promises to be a world-class event!

With personalised tuition from Peter Fowler, one of Australia's premier Business Strategists and nationally recognised Young Business Leader, attendees will undergo workshops to allow them to identify areas of business improvement and provide great strategies that can be implemented immediately to achieve results when they return.

Conference sessions, run in daily workshops at the end of each day, ensure you get in daily surfs whilst still learning proven strategies to improve your business. Attendees will be provided with full conference materials and industry-specific market research and benchmarking reports.

Peter says, "We have fully booked a luxury boutique resort on a privately owned island and have exclusive use of all facilities. The resort's three speed boats deliver attendees to any one of the 40-plus surf breaks in the Telo Islands group with all skill levels catered for."

As well as exclusive use of Resort Latitude Zero for the conference, attendees receive exclusive, complimentary conference merchandise. The five-star service includes three chef-prepared meals every day. For business owners the trip is tax deductible! Click here to find all the information you need to organise your place. For a preview of Resort Latitude Zero and the island, visit www.resortlatitudezero.com.

2011 conference attendee Nick Breen-Kurucsev of Public Image Productions said, "Surf the Wave to Success made me realise we constantly need to work on improving our business and not get bogged down on day to day activities. I have heaps of ideas to implement. Everything about this event is awesome… even the surf!"

Don't wait till it's too late!
Places are limited for 7 and 11-day packages and will book up fast. To book or for more information email wendy.gleeson@collinshume.com.au or phone 02 6686 3000.

Building and Construction

2012-05-08T00:00:00+10:00

New ATO reporting requirements for building and construction industry
Builders get on the front foot now to meet your new ATO reporting obligations with confidence

Businesses operating primarily in the building and construction industry that make payments to contractors for building and construction services will be required to report these payments to the ATO from the year starting 1 July 2012. Your first 'Taxable Payments Annual Report' is due 21 July 2013 for payments made in the 2012-13 financial year.

The Taxable Payments Annual Report will require you to provide ABN, name, address, gross amounts paid and GST included in gross amounts paid to each contractor for building and construction services.

Those who have heard Collins Hume Partner Christopher Atkinson discuss this very topic at building industry information nights, training courses, road shows, or in private consultation will know that Chris was on the front foot when it came to the ATO's unwavering campaign to standardise Payment's to Sub-Contractors across the industry, "I've talked about the ATO's Contractor Decision Tool, Super Guarantee cases, and the effect of WorkCover as key industry topics."

"Many have taken proactive steps to protect themselves; others have taken the information and done nothing. Well guess what? The ATO is going back to the future with a system resembling the old PPS regime, only with a wider net due to the ABN system."

You're not required to report on payments where invoices are for materials only. Do not report any unpaid invoices as at 30 June each year, nor payments to employees or workers for whom you complete PAYG reports. You do not need to report if you are a homeowner making payments to contractors for domestic projects. If you are in a consolidated group or multiple entry consolidated group for income tax purposes, you do not need to report payments you make to another member of that same group.

Review your records now!
Ensure you can readily obtain the information necessary to comply with new reporting requirements from 1 July 2012. For examples of building and construction services requiring compliance with the new reporting, visit www.ato.gov.au and click on 'Businesses'. To discuss your business and your obligations from 1 July 2012, call Collins Hume on 02 6686 3000.

Changes to Trustee Resolutions

2012-05-01T00:00:00+10:00

New obligations for trustees of discretionary trusts

Until recently the ATO has generally allowed trustees of discretionary trusts until 31 August to document resolutions of income distributions for the year ended 30 June

However following the decision in Colonial First State Investments v FC of T 2011 ATC 20-235, the ATO now take the strict view that trustees must resolve to distribute the current year's income on or before 30 June.

The ATO has advised that it will be running an education campaign to ensure trustees are aware of this requirement. They have also indicated that they will be actively reviewing compliance with this requirement in future years.

Within the first few weeks of July 2012 the ATO is intending to request a significant number of trustees provide a copy of their resolution of distribution for the year ended 30 June 2012 to confirm that it was made prior to 30 June.

If the resolution is not made by 30 June the trustee may be assessed on all income of the trust and be liable for tax at the top marginal tax rate of 46.5%.

Collins Hume are keen to help you ensure you meet your obligations as a trustee. If you are a trustee of a discretionary trust and Collins Hume client, we will be in touch with you prior to 30 June. Meantime we invite you to call us on 02 6686 3000 if you have any questions or would like further advice in this regard.

Building and Construction Industry

2012-04-27T00:00:00+10:00

New reporting requirements for businesses in the building and construction industry

If you are a business that is primarily in the building and construction industry and make payments to contractors for building and construction services, you will be required to report these payments to the ATO from the year starting 1 July 2012.

Your first 'Taxable Payments Annual Report' will be due by 21 July 2013 for payments made in the 2012-13 financial year.

The Taxable Payments Annual Report will require you to provide the ABN, name, address, gross amounts paid and GST included in gross amounts paid to each contractor for building and construction services. The ATO intends to use the information reported for data matching to detect those contractors who may not have included all their income or lodged tax returns. You should review your record keeping procedures now to ensure that you can readily obtain the information necessary to complete this new report from the year starting 1 July 2012.

For more information contact Collins Hume on 02 6686 3000 or click here to see the full directive from the ATO 0412 BLOG_Taxable payments reporting.pdf.

Collins Hume Case Study

2012-04-23T00:00:00+10:00

Tardy super contribution timing costs taxpayer dearly
Taxpayer who simply 'got it wrong' ruled "ignorance of that kind is not a special circumstance" by ATO Tribunal. Collins Hume explains how to avoid it happening to you.

A recent tax case dealt with a superannuation contribution of $7,215 mailed by the taxpayer's employer on 28 June 2007 but which was not recorded as income by the fund until 5 July 2007. Unfortunately, the taxpayer ignored the amount as a contribution for the 2007/08 year and contributed another $50,000 to the fund - exceeding that year's super cap by more than $7,000. The ATO issued an Excess Contributions Assessment on the contributions above the $50,000 cap. The Tribunal held that there were no special circumstances which would allow the Commissioner or the Tribunal to allocate the amount to another year.

What can you do to prevent this from happening to you?
Taxpayers must constantly monitor their contributions in any given financial year against their relevant contributions cap. You can refer to your member statements issued by your super fund to help check amounts contributed or contact your fund directly for up to date amounts. Members of Self-Managed Super Funds (SMSFs) should closely monitor deposits into their SMSF's bank account to ensure they are not going to exceed their contributions caps.

Be aware of your relevant contribution caps. Concessional cap limits for the 2011/12 year are:

$50,000 for taxpayers aged 50 years or more at 30 June 2012 (NB this will change for the 2012/13 year)
$25,000 for taxpayers aged under 50 years of age at 30 June 2012

Be particularly careful if you salary sacrifice amounts to super as these amounts can quickly add up and also count towards your concessional contributions cap (along with employer contributions and member contributions that are to be claimed as a personal tax deduction). You may even need to cease or modify an existing salary sacrifice agreement if it means you would otherwise exceed your cap.

Timing of contributions is crucial and consistency may be the key
Employers - especially if you employ related employees - should get into the habit of paying contributions on a consistent basis. For example, if you normally make employer contributions for the June quarter in July, it would be prudent to do the same each year as a general rule so as not to inadvertently create an excess contributions problem for an employee.

How contributions are made impacts when the contributions are made and, hence, in what year the contributions counted against the relevant contributions cap, as outlined in the table below:

How the contribution is made	When the contribution is made
Cash	When received by fund trustee
Cheque	When the cheque is received by the fund trustee
Electronic Funds Transfer	When the money us credited to the fund's bank account

We cannot stress enough the importance of progressively adding up contributions during the year. Proactively monitor contributions made on your behalf, especially where salary sacrifice arrangements are in place. If you are coming close to a cap, take the necessary action to avoid exceeding it (prevention is the best solution).

We help SMSF members to comply with their obligations and make the most of timely contributions. Call Collins Hume on 2 6686 3000 for an obligation-free appraisal of your SMSF set-up.

Social Media Competition

2012-04-21T00:00:00+10:00

Top reasons to 'Like' or 'Follow' Collins Hume by 31 May 2012 to win!

Businesses are always asking us to follow them on various social networking sites, but have they ever said why? Be informed with just some of the reasons why astute business owners should be following Collins Hume:

1. Like facebook.com/CollinsHumeAccountantsBusinessAdvisers for up-to-the-minute news

2. Follow @CollinsHume on Twitter for a stream of accounting, tax, business building tips and real-time conversations with our team

3. Connect with Peter Fowler at linkedin.com/in/peterjfowler to ask business-related questions

4. Connect with Collins Hume the company on LinkedIn to join our like-minded clients and contacts

Be among the FIRST to know about our services, news and events and keep updated on what we're doing to help business and our surrounding community.

Like or follow Collins Hume by 31 May 2012 and be automatically entered in the draw to win your choice of either an IPod 2.0 or a Samsung Galaxy Tab 10.1. Good luck!

Take control of your tax and get ahead in 2012

2012-04-16T00:00:00+10:00

Sick of paying too much tax? Tired of working for the tax man? Take control and of your tax and get ahead

Dynamic, organised business owners have accountants and advisers who understand the intricacies of an increasingly complex tax system. You want someone who makes sense of the technicalities and practically applies those to your business.

Modern business demands real time, accurate financial information. Collins Hume understands that you are busy and need your tax and compliance work done efficiently and effectively without fuss. We make the process as painless as possible by relieving you and your staff of an enormous burden by managing your bookkeeping and accounting needs by preparing your annual and periodic management accounts for tax, business appraisal and planning purposes.

Tax and accounting compliance is not just about filling out forms for the' taxman'. It's about understanding how you operate, how you should be operating, and the most effective ways to fulfil your obligations.

Our experienced team pinpoints potential problems and recommends viable solutions. If you're operating multiple entities, this is particularly important. We can turn your numbers into valuable information that will assist you in being proactive and help you make the right decisions moving forward. Many accountants record history and seem to always be looking at the past. We help you look to the future and help your track your path to success.

Tax is often a major business cost, so we work in partnership with you to legally minimise it whilst helping you to achieve your business objectives. Delivering proactive, expert advice in tax minimisation and helping you make the most out of your business is our speciality.

Get on the front foot and take back control of your tax and accounting. We take a more in-depth approach with access to more resources and offer a range of additional services that add significant value to our clients. Can you afford not have the right advice? Call Collins Hume on 6686 3000 to take the stress out of your taxation and accounting needs in 2012.

Choose an accountant with confidence
Even the biggest and best of us can benefit from a little guidance now and then

New ATO income tier thresholds

2012-04-12T00:00:00+10:00

Changes to Private Health Insurance rebate and the Medicare levy surcharge

From 1 July 2012, higher income earners may receive less private health insurance rebate or, if they do not have the appropriate level of private patient hospital cover, their Medicare levy surcharge (MLS) liability may increase.

Singles/families with incomes for (Medicare Levy) surcharge purposes of over $84,000/$168,000 and who hold private health insurance will be subject to a reduction in the amount of private health insurance rebate they will be entitled to. This rebate is most commonly received in the form of reduced premiums you pay your private health insurer and to date has most commonly represented 30% of your premiums.

For MLS purposes, singles/families with incomes for surcharge purposes of over $97,000/$194,000 will face an increased rate of MLS (of up to 1.5%) where they do not hold the appropriate level of private hospital cover for the full income year. The MLS will continue to apply at the current rate of 1% for those with incomes for surcharge purposes of between $84,000-$97,000 for singles and $168,000-$194,000 for families in the 2013 income year.

Your income will be tested against three new income tier thresholds to determine your private health insurance rebate percentage entitlement and/or MLS surcharge rate when you lodge your 2013 income tax return. This may result in an additional refund or liability for you. Please click on the link below if you would like to find out more about the new income tier thresholds and call us on 02 6686 3000 if you have any questions.

0412 ATO Private health insurance and Medicare levy surcharge changes.pdf

CPA Australia's 40 Young Business Leaders 2012

2012-04-10T00:00:00+10:00

Peter Fowler named one of Australia's top young business leaders

Peter Fowler won a much sought-after industry accolade last week when he was named one of CPA Australia's 40 Young Business Leaders in its flagship publication, INTHEBLACK.

The prestigious list showcases the achievements of Australia's top 40 young business leaders working across a broad range of industries around the globe.

Peter's inclusion in the list of high achievers was a pleasant surprise for the Collins Hume team, who spotted his game-changing potential early on, making him a partner at the young age of 25.

Peter has confidently taken on a leadership role in Collins Hume's strategic planning and marketing arms, and his astute accountancy and business advisory approach to his clients' businesses has produced excellent results.

Peter plays a key role in the Collins Hume International Business Development Conferences, is a popular speaker, and was recently appointed a strategic facilitator of the Northern Rivers Tourism Industry Roundtable.

Peter's inclusion in the 40 Young Business Leaders list is a shining example of the high standard of professionalism and thought leadership Collins Hume offers clients and business owners.

"I couldn't have achieved such an accolade without the support and assistance of the great team at Collins Hume, and this award is a reflection of their support and commitment to assisting our clients in achieving their business goals," said Peter.

With the Collins Hume name being recognised nationally by CPA Australia, Northern Rivers business owners can be certain they are receiving a world-class service when they seek accounting and business development advice with Collins Hume.

Your business deserves the very best advice. Peter is one of Australia's leading business advisors - can you afford not to have him as yours? Click here to see the 40 Young Business Leaders List: http://www.itbdigital.com/lists/top-40-business-leaders.

Struggle or Success Ballina 28 March

2012-03-30T00:00:00+11:00

Struggle or Success a boon for Northern Rivers business

WEDNESDAY 28 MARCH 2012 Collins Hume held its business performance and benchmarking event Struggle or Success at the Ballina Beach Resort. The evening featured esteemed business speakers, and informative and entertaining presenters who were joined by approximately 100 Northern Rivers business owners and members of the business community.

The evening kicked off with a warm welcome from Collins Hume CEO and Partner Shane Bartrim (pictured). Guest speakers Mark Holton and Grant Bloxham told assembled guests why it is crucial to know the impact of financial decisions before they are actually made. The presentation concluded with local builder Peter Blakey winning an iPad 3 and environmental consultant Rob McLelland picking up the free business valuation assessment.

Following the seminar, the audience was treated to light refreshments and an opportunity to pose questions to the guest speakers and Collins Hume team.

Collins Hume CEO Shane Bartrim said, "Given the resounding success of Struggle or Success, it's hoped that upcoming years will provide even greater opportunity to customise topics and lead our local business community into an age of greater awareness - and consequently - better business results."

For the latest industry benchmarking and business performance insights for your business, please contact Collins Hume on 02 6686 3000.

Struggle or Success in Ballina 28 March

2012-03-26T00:00:00+11:00

Are you part of Ballina's Struggle or Success buzz?

It's only a few days until Collins Hume's Struggle or Success in 2012 event at Ballina Beach Resort.

There is still time to reserve your seat for what will be a unique presentation tailored specifically for Northern Rivers business owners.

The evening promises to be informative as well as entertaining with:

Presentations from two of Australia's leading authorities on business improvement and performance
A great wealth of business how to's to take away and implement in your business
You could win an iPad 3 or a Samsung Galaxy Tab 10.1 - all attendees will be eligible to enter

Places are now limited, so send your urgent RSVP to wendy.gleeson@collinshume.com.au to reserve your seat.

Collins Hume is dedicated to ensuring business owners are prepared for the future both personally and professionally, and are equipped with the tools and resources to move forward in effective and profitable ways.

Fringe Benefits Tax 2012

2012-03-21T00:00:00+11:00

Do you provide a motor vehicle for use by your directors and / or employees? Or do you provide other non-cash benefits?

The Fringe Benefits Tax year ends on 31 March which means, for Collins Hume clients, you'll be receiving your annual Fringe Benefits Tax Questionnaire. Meantime take some time to consider our checklist below with some tips if you either provide or are thinking about providing motor vehicle fringe benefits:

A 'car' is generally defined as a motor vehicle designed to carry a load of less than one tonne and fewer than nine passengers.
Although certain commercial motor vehicles (e.g., taxis, panel vans, utilities and other commercial vehicles not designed principally to carry passengers) can be 'Exempt Motor Vehicles', this exemption only applies if the private use of the motor vehicle is limited to travel between home and work, and private travel which is minor, infrequent and irregular. There are no special record requirements for 'Exempt Motor Vehicles', but you must still be able to demonstrate that private travel has been within the set guidelines. This requirement also applies to the provision of a motor vehicle which is not a 'car', such as dual cab vehicles.
A car will be taken to be available for private use if it is garaged or kept near a place of residence of the director or employee at any time on a given day.
Keep logbooks, and once kept, they are valid for up to 5 years. There are two ways of calculating a potential car fringe benefit and a logbook which has been maintained for 12 weeks will allow us to choose the method which will provide the best outcome for you.
Although the Federal Budget 2011 has introduced some changes for the statutory rate method of calculating car fringe benefits, these changes are being phased in over a number of years and providing us with an odometer reading as at 31 March 2012 will help us to determine the annual usage of the car.
Are you thinking of providing a car fringe benefit to your employees as part of a salary package by way of Novated Lease or otherwise? There are a number of ways in which you can structure such an arrangement and structuring it correctly could save thousands in tax.

Please contact us on 02 6686 3000 if you would like to find out more about salary packaging and the potential benefits for you and your business, or if you have any concerns or queries about FBT leading up to 31 March 2012.

Struggle or Success with Mark Holton

2012-03-19T00:00:00+11:00

With most of 2012 still ahead it is time to evaluate your business plans and goals to ensure you're on track!

Benchmarking is an astute tool in the search for excellence - taking the absolute best standard and trying to surpass it. Few businesses are likely to succeed unless they are willing to do just that.

The Good, the Bad & the Ugly report by Business Fitness states, "Everything familiar and secure is behind us...that which is in front of us is less so. Businesses wanting to stay profitable in the future will need to consider how they change their structure and nature."

Collins Hume provides you with all the steps, tools and tips to implement effective benchmarking in your business. By attending Struggle or Success you'll find out how to obtain credible and reliable benchmarking data to improve your business performance. The experience for those business owners who already benchmark is that you can massively improve quality of service and efficiency by:

Analysing your business's financial performance
Assessing strengths and weaknesses, then enhancing the strengths and addressing the weaknesses
Looking to the future to safeguard the health of your business

We have been fortunate enough to secure the services of Mark Holton (pictured) - one of the leading authorities in Australia on business and profit improvement - with whom we have worked closely for several years now and is our keynote speaker at Struggle or Success.

Make the decision to adopt benchmarking into your business strategy for 2012 - a key proponent to making informed decisions and knowing the outcomes in advance.

Collins Hume is dedicated to ensuring business owners are prepared for the future both personally and professionally, and are equipped with the tools and resources to move forward in effective and profitable ways. The way we work is more in-depth than other accountants with access to more resources and offering a range of additional services that add significant value to our clients.

Places are now limited so email your urgent RSVP to wendy.gleeson@collinshume.com.au at Collins Hume to reserve your seat.

Struggle or Success in 2012

2012-03-12T00:00:00+11:00

Know the financial impact of every business decision before you make it
FREE business performance improvement seminar 28 March 2012

2012 promises to be another white knuckle ride for business owners - budgets are tight and market uncertainty fuelling consumer uncertainty will continue for a long time to come.

The message for business owners remains the same: those who to invest in periods of downturn are the ones more likely to benefit when normal service resumes. Using the right management information and making the right business choices is an enormous part of making it through period of uncertainty.

Optimise your business performance and grow despite this lingering financial crisis.

At our free seminar 'Struggle or Success in 2012' on 28 March, Collins Hume will give business owners specific steps on how to start making the right choices consistently so that your customers' and team's interests, as well as your own, are achieved.

We'll cover business valuation, growth, improvement and succession planning - already hot topics with business owners who want to galvanise for the year ahead and optimise their performance.

No business owner can afford to miss this event given the current economic climate. We have been fortunate enough to secure the services of one of Australia's authorities on business and profit improvement who we have worked closely with for several years now.

We don't believe Ballina or even the North Coast has had an event like this in the past so it is definitely something new for the area. We're encouraging all business owners who are serious about improving their business to attend.

Click here to send your RSVP now to Wendy Gleeson at Collins Hume to reserve your seat.

Peter Fowler on running a better business

2012-03-05T00:00:00+11:00

Peter Fowler leads national industry conference on how to run better businesses

Peter Fowler was busy warming up his presentation pipes when he appeared as guest speaker at BStar's conference held in the Hunter Valley last weekend.

Peter spoke to the 70 assembled accountants on the topic of the firm of the future and how to operate a successful business.

This bodes wonderfully well for Northern Rivers businesses when Peter also presents at Collins Hume's business event Struggle or Success in 2012 on 28 March in Ballina.

Peter said, "Whether you run an accounting firm or a plumbing business, the strategic planning issues are the same - valuation, growth, improvement and succession planning - hot topics growing in interest with local business owners who want to galvanise for the year ahead and optimise performance".

Business owners wishing to come along to Struggle or Success in 2012 on 28 March can do so by registering for FREE with an RSVP to wendy.gleeson@collinshume.com.au.

Collins Hume Client Case Study

2012-02-29T00:00:00+11:00

Mind what your kids wish for - it could lead YOU down a completely new path

Ask Collins Hume client Allen Maunder what he did in his former career and he'll answer, "For many years I worked in the insurance sector as a regional manager for GIO. When GIO was acquired, I took my payout and some gardening leave only to find myself asking, "What am I going do?". When my teenage son had the idea to import gaming products from China I, being the doting dad, took a reconnoitre to see if the idea had legs."

It was during that trip that Allen met an inventor and ANT was born. ANT Enterprizes Australia commenced operations in 2005 initially specialising in the importation of audio visual and gaming products predominantly from China and the USA.

From ANT's inception, Allen found himself working with numerous inventors who'd shared similar experiences (and difficulties) getting their ideas off the ground, "Typically ideas come unstuck due to poorly prepared submissions in design, copyright or patent. With every submission and resubmission depleting inventors' funds, little is left to put designs into production and, ideally, generating a return."

From importing, ANT then found themselves in the position of helping inventors across a number of sectors with their national and international design and patent submissions. Uniquely ANT could help inventors reduce costs by involving the patent attorneys only to finalise submissions. Soon Allen was assisting inventors with grant submissions and attending trade shows internationally to promote Australian design exports. Luckily for ANT, Allen used his insurance broking experience to assist inventors to put their design submissions effectively in writing and to help with insurances with Australian law deeming the importer to be the manufacturer of the product they import.

"ANT had taken on a life and a niche of its own, quite successfully, and yet my insurance training nagged me to take stock and review our structure", Allen said.

It's not uncommon for a career change to take on a life of its own

Often that can mean setting up more than one entity from which to trade, especially in a business such as ANT who also relies on international trading partners and advisers.

When Allen called on Collins Hume to properly review the structure of his businesses, we looked at possible scenarios that would work most effectively with respect to minimising tax yet providing extra protection should any litigation extend beyond his business which involved:

Creating a trust
Taking out relevant insurances
Putting in place confidentiality agreements and employment contracts for staff of the business here and overseas
Set up a company in China with banking facilities in Hong Kong, appoint accountants in Hong Kong and China, plus an onsite Chinese sourcing contact
Establish patents in China in the event that designs were stolen to protect IP (covered by Chinese accountant)
Schedule an annual review of ANT's business structure

Collins Hume's Peter Fowler added, "With a marked focus on businesses being the major source of income and wealth creation, business owners need to be anticipatory, proactive and better positioned to address future needs leading to sales and profit growth in an environment where traditional revenue and profit streams are changing or declining."

These days, even the government refers inventors to Allen who require his insight and expertise. ANT is growing and is the only business of its type in this region - something on which Allen and Collins Hume are delighted. If you are or know someone who could use ANT to fast track getting their product off paper and into the market, please phone Allen Maunder on 0404 881 839.

Business Performance and Optimisation

2012-02-10T00:00:00+11:00

Unleash the Beast ... in your business

As Australian small businesses enter 2012, they do so against a backdrop of uncertainty. Factors contributing to this sense of unease include the European debt crisis, the looming (and as most commentators are saying inevitable) GFC2, and the announcement of Australia's weakest employment growth in two decades.

There is no doubt that budgets are tight. And it appears that the market uncertainty that is killing consumer confidence is set to continue for a long time to come and businesses will be hit harder than ever.

The message for business owners remains the same though: those who continue to seek expert advice and invest in periods of downturn are the ones more likely to reap the benefits when consumer confidence improves. And making the right choices is an enormous part of making it through this period of uncertainty.

As business strategists we're often asked, "Why is it that some businesses achieve levels of performance that far exceed others?" The answer is simple. It's not because they're in better markets or that they have more resources or that they are smarter than anyone else. The answer is they think differently, make the 'right' choices more often and they seek expert advice constantly.

Ask yourself, how would your business performance and value improve if you had the capability of knowing the financial outcome of every decision before the decision is even made? It's almost 'crystal ball' stuff but the technology and expertise does already exist. The adviser of the future has been doing this for their clients for years.

Competition is now becoming fierce and the high Australian dollar combined with an ever more internet savvy consumer is flooding our markets with cheaper imported alternatives.

For you to survive in business your adviser needs to be able to answer your 'what-if' questions. This is where the real worth of an adviser comes to the forefront adding significant value to your business and bank account. Can your current adviser do this or are they too busy doing mundane tax returns that offer little value to your business performance? Is it time for you to find a 'real' business adviser and watch your bank balance and business value grow.

Business owners who want to galvanise for the years ahead and optimise performance by constantly making the right decisions use us for our expert knowledge on optimising business valuation, growth improvement and succession planning. Have you already sought this advice and, if so, why not seek a second opinion from us? Knowledge is power.

How should you brace for the year ahead and unleash the potential in your business?

The first symptom that a business is in trouble is usually cash flow issues, but the cause often resides in unwillingness to seek expert help in crucial areas of business such as budgeting, financial modelling, strategic planning and value improvement. The following points should form part of your focus for 2012 if you want to improve your business and be ready to maximise your sale value in the future:

Benchmark your business against industry competitors to identify areas of improvement using real time benchmarking figures, not out -dated or pre-GFC data.
Value your business today and implement a plan to increase its profitability and cash flow. Then re-value every 12 months to measure your progress and to identify further areas to improve.
Take advantage of 'what if' technologies to show you impact on cash flow by major business decisions before you make them i.e. increase in prices, adding or removing a product range, the purchase of major equipment, or taking on a new employee.

Collins Hume works with owners to unleash the hidden potential within your business. Call us on 02 6686 3000 for an obligation-free business performance appraisal, including a free industry benchmarking report to identify the top 18 key performance indicators for business to excel.

New Year planning for your business

2012-02-06T00:00:00+11:00

Ready. Aim. Firing in 2012!

Conducting a sense-check of your business in Quarter 3 is a prime time to make any necessary changes. It is an especially good time to review the cash flow requirements of your business so that you can take that into account when it comes around to interim accounts preparation in a few month' time.

If your relationship with your current accountant is lacking and you're at a loss knowing what direction your business will take this year, consider using Collins Hume for your business, accounting and tax affairs. With over thirty years' experience, we are in tune with business owners by providing a sharp focus on your needs:

our highly organised service gives you a quick response and peace of mind
we offer business owners a way to grow, secure and protect assets which you may have built up over a long period
we keep up with you as your business grows by looking at the big picture and helping you to reach your goals
we're a firm of proactive accountants delivering more than a basic tax compliance service
we dispense our advice much like a good doctor; we listen and then explain the theory in ways you can fully understand
we respect your perspective on matters by putting forward the options you can take, explain the risks and understand your position to reach the best outcome

For many, changing accountants can seem a potentially arduous process, complicated by red tape. The reality is that a standard protocol exists within our profession to enable the switching process.

Get organised and take control with a Collins Hume business assessment this quarter by phoning us on 02 6686 3000 or visit www.collinshume.com.au/services/trust/index. By the time 30 June rolls around, you will know your position and have prepared well in advance for it.

Wishing you a prosperous 2012!

Giving FEEDback

2012-01-27T00:00:00+11:00

Shikshan Gram’s thanks say Collins Hume is making a difference

With the dawn of 2012 seeing Collins Hume exceeding 100,000 giving activities, we are thrilled to receive some feedback about how our contribution helps one of our recipients. For the latest summary of our giving impact, please visit our Giving Back page on our website. For now, please enjoy reading the letter from Shikshan Gram Shelter for Homeless Children:

"Yesterday we received notification that funds had arrived via B1G1 and Sage Foundation for the children here at Shikshan Gram Shelter for Homeless Children. Frankly we were overwhelmed at your generosity and are thrilled that B1G1 and Sage have been so helpful in assisting us and bringing the work that we are doing with these children to your attention.

We have 86 children here at the Shelter currently and soon that will be increased to 150 – as we are currently building a new Shelter to house more children. Your donations help us significantly to maintain the children’s well being.. their daily milk is so important for them and as you can imagine, feeding them high quality nutritious food, even here in India where food is relatively cheap, is essential to their growth and their all important development .. medical treatment and keeping them healthy is also so important. Once their brains a bright with good nutrition and their bodies are healthy with needed assistance, then they are able to really absorb that which they are taught.

So – milk, food, medical treatment and learning... all factors so essential to these little children’s well being. Your help is very much appreciated. And we thank you so much.

There are lots of photos of our children and the building project that we are doing for them on the internet at our Facebook page and our website... see the links below. But here is one for you now."

Shazar For Sage Foundation and Shikshan Gram Shelter for Homeless Children.

Our Children are Your Children - a photo journal for you. Look at Our New Building the vision is growing.

Only from the heart Can you touch the sky. Jalal ad-Din Rumi

Succession planning, estate planning, risk insurance case study

2012-01-09T00:00:00+11:00

"I was galloping on a crystal horse, and then crashed into a brick wall. My wife had to pick up all the splinters"

Succession planning, estate planning and risk insurance - why it's best to address them today for tomorrow's success

Retirement often seems like a distant speck on the horizon, let alone plans to hand over the business. However, establishing a sound business succession plan is beneficial for most business owners and can be absolutely necessary for some.

Take for example a business owner who was running a number of very successful activities all within his business, organised very adeptly by his doting wife and providing a lifestyle for both them and their children. Life was simple but very good.

When some niggling health issues persisted and could no longer be ignored, further diagnosis confirmed that the problem was extremely serious and required immediate treatment which took the business owner out of commission straight away.

It did the same for his wife who was constantly by his side as treatment got underway and a slow recuperation was prescribed. Often we think that if one business owner is winged, then others can carry on but this is not always the case, especially in a family business. His take on all of this was, "I was galloping on a crystal horse, and then crashed into a brick wall. My wife had to pick up all the splinters".

We all retire whether we plan to or not - plan today, relax tomorrow, retire whenever

Fortunately there is a somewhat positive ending to the drama. But the warning did not go unheeded. As soon as it became sensible to do so, the business owners met with Collins Hume about their existing succession and estate plans, and to review their provisions for risk and insurance.

Prior to our meeting and seeking advice, they were not planning to sell their business for at least another 5-10 years and were certainly at a loss as to how to best to operate at minimum capacity in order to build business value to be in good shape to sell. Yet through our discussion and subsequent planning we were able to help the business owners achieve all of these objectives:

improve and streamline internal operations to reduce reliance on the owners
provide key staff members with the training and support they needed to run the business and maintain an income for the owners
maximise the business valuation by reducing the inherit risks associated with the reliance on the owner
prepare two of their business interests for immediate sale and obtain a price superior than what the owners were expecting
have their third business interest ready for succession to their employees and maximise the finance they were able to obtain to purchase the business

Succession planning, whilst vital to business, is unstructured and lacks investment

Research reveals that companies are realising that succession planning is no longer simply a 'rescue plan' to manage the exit of key stakeholders from a business. Yet, although 94% of respondents said succession planning was important to their business, as little as 5% of HR budgets were invested in this activity.

Astoundingly, succession planning is still in its infancy, with only 51% of businesses currently implementing succession programs and 83% having only implemented the programs in the past five years. Whilst they continue to invest heavily in growth for example, many aren't taking the necessary steps to protect and retain that investment through succession planning.

Peter Fowler, Collins Hume Partner and Business Strategist says, "Whilst we obtained a great outcome for our clients we cannot stress the importance of having a thorough succession plan, estate plan and risk management plan for any unexpected events. You don't want to leave your loved ones to pick up the pieces".

Talk with one of our experts about succession, estate planning or risk protection for you and your business today by phoning 02 6686 3000 or emailing us.

Manage your super fund with confidence

2011-12-23T00:00:00+11:00

Are tax bills and bad investment returns eroding your retirement savings?

It's true we are living longer. And more than ever, you should be thinking and planning for retirement well in advance. However, this longer lead time means the journey can be fraught with investment decisions and tax liabilities that may not be properly considered. Even if your retirement fund weathers these set-backs, what is the long-range forecast on the outcome and the damage such erosion might be doing? Will you have enough money to retire comfortably or is the tax man benefiting from your savings regime?

To ensure tax bills don't erode your retirement nest egg it is worth obtaining professional advice to effectively structure your retirement plan.

A case in point, we were recently approached by a couple who were self-funded retirees wondering if they had received the best possible advice from their current adviser, so sought a second opinion to gain our specialist input into their affairs.

The result of our 'second opinion' led to the creation of a strategy devised by Collins Hume to ensure they minimised tax payable on their income, whilst maximising their retirement funds. Added to this, we were able to ensure the tax payable by their children and estate when they passed was minimal and that their assets were adequately protected if anything unforeseen was to happen.

Peter Fowler said, "Whilst reviewing and addressing the issues they had initially raised, we identified a further tax saving available to them by restructuring their assets to guarantee a tax saving of over $200,000 over the next five years, with additional potential savings to their estate of over $500,000. Needless to say they were very happy with our advice."

Talk with Peter Fowler, Collins Hume's accredited SMSF Specialist Advisor, for a second opinion on your retirement plans by phoning 02 6686 3000 or email Peter at peter.fowler@collinshume.com.au. Peter is a Collins Hume Partner and SMSF Specialist Advisor accredited by the Self-Managed Super Fund Professionals' Association of Australia.

Tourism Industry assistance from Enterprise Connect

2011-12-16T00:00:00+11:00

A segment of the Tourism Industry now eligible for Enterprise Connect grants

The Australian government has announced that a sector of the Tourism Industry is now eligible to seek assistance from Enterprise Connect. To be eligible, the Tourism sector must derive a significant portion of its turnover from tourist accommodation, tourist attractions, wineries, tour operations and travel agency services.

To be eligible for support under the Enterprise Connect programme, businesses must derive a significant portion of their revenue from tourists who are defined as 'people who have travelled for a round trip distance of at least 50km from home' and would either cease to exist in its present form, or would be significantly affected if tourism were to cease. Grants from Enterprise Connect are not available to those businesses whose primary trade is retail, cafe/restaurants or take away food suppliers. An eligible business must have a minimum turnover of $1M. The maximum turnover allowed for an applicant is $100M. The business must have filed Business Activity Statements for at least three consecutive years, must be solvent and not have previously received a Business Review under the Enterprise Connect programme. Assistance can be given by Enterprise Connect for a range of activities including:

strategic business reviews
human resources reviews
internal systems
production/operational
advertising and marketing
financial management issues
exploring new markets
product and service development

An eligible business can submit an application to Enterprise Connect. If the application is approved by Enterprise Connect you will then be offered a 'business review', which is undertaken by an Enterprise Connect Business Adviser and, at the conclusion of the free business review, (which can take 2 to 3 days) Enterprise Connect will then advise whether the business is eligible for a Tailored Advisory Service programme which covers the abovementioned activities with subsidy of up to $20,000, on a 50/50 basis.

If you would like to discuss with Collins Hume the possibility of applying for assistance from Enterprise Connect for the tourism sector please contact us on 02 6686 3000.

Business sale and retirement planning case study

2011-12-12T00:00:00+11:00

Collins Hume by client's side during business sale puts retirement planning end clearly in sight

Attractive opportunity to wrap up and sell the business suddenly made everything a priority, including retirement planning

Our client recently sold his business to a competitor who came along at the right time offering the right price.

We had been discussing negotiations back and forth for some time as is usually the case in these situations. Our client owned their commercial premises but we recognised early on that there were also issues around accessing funds, Capital Gains Tax (CGT) and maximising super contributions.

As our client needed to start taking steps to retirement and the business sale negotiation was a tough, drawn out process, CGT, commercial property transfer and super were becoming secondary to getting the deal done.

Then the contract was signed.

That's when our client found themselves asking, "What's the end position?" as we still had those secondary issues with which to deal now posing greater tax planning questions after the recent sale of the business.

This gave rise for Chris Atkinson to help our client to look at things completely differently

'Instant' retirement is usually the catalyst for so many factors being triggered as far as tax treatment and super goes. Generating a tax-free income was now one of these factors so our client had the opportunity to make a large one-off contribution to super to bolster their fund which then put them in a nice position to acquire the building from the members in two streams:

CGT free as CGT conditions were favourable

Commence retirement income streams and therefore rent became tax free

This deal fit like a glove as other factors came into play under the watchful eye of Collins Hume. Our client was under the net asset threshold, the valuation of the building worked well in their favour, the super fund could be utilised to pay cash for the building, and NSW stamp duty incentives with respect to transferring the building across were used to advantageous effect.

Use Collins Hume for business projects with confidence

Action points all slotted into place at timely intervals including:

A solid lease-back arrangement ensures our client is earning market rent now as a retiree
Ability to get cash back into super fund under non-concessional caps
Now we have tax free interest and rent, and no CGT

Chris Atkinson is a Collins Hume Partner and Strategic Services Specialist. Being a natural entrepreneur, our client is now well positioned and already looking out for their next project, after some overseas travel and a bit of extended time with the kids and grandkids.

Collins Hume's business buy / sell expertise, contractual insight and proficiency in acting for our client during negotiations helped our client make the most of this opportunity with a sound retirement income plan in place. Visit our website to read more or talk with one of our experts about succession, business buy / sell or retirement planning for your business by phoning 02 6686 3000 or email us.

The ups and downs of Christmas cash flow

2011-12-09T00:00:00+11:00

The ups and downs of Christmas cash flow (and a gift from Collins Hume)

Christmas has a psychology of its own. Christmas and gift giving (aka 'spending') stretches well beyond the designated dates. For retailers, the sooner we're in the spirit the more likely it is that we'll spend on gifts and entertaining.

As consumers, the lights, decorations and advertising already in the shops remind us that Christmas comes round fast.

Your financial budget is the money map of the journey your business takes. Your cash flow plan is equivalent to a fuel gauge telling you how much cash is available. This is important, as not only low profit businesses need to carefully monitor cash. The risk of running out of 'fuel' can be highlighted by an up-to-date cash flow plan.

The keys to effective cash flow management are reducing accounts receivable days, maximising inventory turn and establishing reasonable creditor terms. The technical term for the accumulated days in inventory and receivables less days in payables is known as lock up. For a business with $1m turnover, every day in lock up is effectively $2,739 of inaccessible cash flow. Put another way, working together with us, if you reduce lock up by just ten days you'll free up close to $30,000 cash. What would that mean to you?

For many, Christmas is a time of slow-down. The longer the Christmas period stretches, the more sluggish sales become in the last quarter of the calendar year. Customers influenced by the slow-down delay decisions or purchases till New Year.

So it is important to be vigilant with accounts receivable, inventory and payables knowing that revenue may be slow over the opening months of 2012. Act now by taking a close look at what you can do to pull sales forward before then and during the poor cash flow months of February and March. Even if the sales don't eventuate this calendar year, some targeted marketing will give you a good base from which to lock in sales in the New Year.

Free cash flow plan offer: Kick start the quality of your business information in 2012! For any business that signs up for quarterly management meetings, have the fee of your cash flow plan waived offer valid until 22 December 2011. Call Collins Hume on 02 6686 3000 to find out how.

The importance of cash flow planning

2011-12-09T00:00:00+11:00

If cash is king, make your cash flow planning keen

Project. Forecast. Finger in the wind or a crystal ball approach? Call it what you will. Any accountant or business adviser can tell you why you need to prepare a cash flow projection.

At Collins Hume we understand the practicalities of running a business. We see firsthand not only the frustration but the outcome of neither using nor preparing a comprehensive cash flow forecast.

At its essence, a properly prepared cash flow forecast identifies the sources and amounts of cash coming into your business and the destinations and amounts of cash going out over a given period.

At Collins Hume we combine the theory with practical hands-on project management to ensure that our clients work with their cash flow forecasts on a monthly or quarterly basis. By the time 30 June rolls around, you already know your position and have prepared well in advance for it.

Partner Ian Wunsch said, "A business may have adequate profits but if it doesn't have enough cash to pay its debts then there can be dire consequences."

If preparing a cash flow forecast for your business is hampered by time restraints, disinterest or lack of know-how, call us on 02 6686 3000 to get the process moving.

Until 22 December 2011 we are offering a FREE cash flow forecast for any business that signs up for monthly or quarterly management meetings. Normally valued at $1,650 plus GST, the preparation fee for your initial cash flow forecast is fully waived, will kick start the quality of your business information and feeds into regular management meetings throughout the year.