Monthly Archives: May 2017

Last Minute EoFY Tips For Small Businesses

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The end of financial year is near, and it is time to get your tax affairs organised. Since we know that getting down to the nitty gritty may be stressful, we’d like to help by giving you some information that can make the next couple of days or weeks easier.

$20,000 asset write-off. Changes in the Federal Budget now allow small businesses with an annual turnover of less than $10M to immediately write-off any purchases of items $20,000 and under till June 30 2018. Even if the invoice totalled $100,000 yet each item falls under $20,000 you can write off the entire Tax Invoice as a Tax Deduction in the Financial Year purchased.

Bring forward your deductibles. You can “prepay” for supplies and services that you’ll need in the next financial period. This may include investing in new asset and equipment, planning for repairs and maintenance, as well as prepaying monthly expenses such as wages, utilities, or even rent. By bringing these deductible expenses forward, you can potentially lower your taxable income. Other financial solutions such as chattel mortgage might also be useful to make your business eligible for a beneficial deduction.* However, do not spend just to gain deductions – make sure that each dollar spent is beneficial for your business.

Organise your tax reporting. You need to make sure that you are compliant with your record-keeping. This means you have to summarise all financial flows by preparing a profit and loss statement, listing your creditors and debtors, outlining your asset purchases, and completing your Business Activity Statement. Whilst this may get hectic, you can always hire a bookkeeper or accountant to help you out!

Use your Point of Sale System.  This is especially relevant if you are a retailer or hospitality business owner. Another benefit of having a POS system is that it helps you with your sales reporting by automatically separating sales tax and allotting credit amounts for all transactions.

Reflect and move on! EOFY is the perfect opportunity for you to review your financial performance and evaluate the areas in which improvements can take place. From there, you can start setting goals for the new financial year and devise operational and marketing plans that are appropriate for the size and stage of your business.

*This information is not meant to constitute taxation advice and does not take into account your individual circumstances. Please refer to your  Accountant for taxation advice. Finance approval is subject to commercial lending criteria. 

Four consumer trends that restaurant and cafe owners should be aware of!

The food and hospitality industry is in for another wave of change. To help you get the big picture of what to expect, here are four consumer trends to watch out for this year.

The rise of ethical consumer

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Consumers want to know almost everything. They are getting more and more interested in knowing where their food is coming from and how it is made; and businesses need to be able to fulfil these promises.  You ought to be prepared for when your consumers ask questions around your ingredients and whether you sourced them ethically. Fairtrade coffee, free range eggs, organic chicken and local produce are the buzzwords that these ethical consumers will look for.

No-Meat Trend

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It is predicted that there will be a constant increase in the number of Australians adhering to a vegetarian diet. This means that vegetarian is now a growing segment whose influence to your business can be massive! Responding to their needs and wants is not an option, but is a necessity. You need to apply innovative cooking techniques and be creative with your menus. It is important that you include at least two vegetarian dishes in your offering. Whilst coming up with an interesting vegetable-only dish may be tricky, try and look at it this way – as vegetables are usually cheaper than meat, you can milk higher margins from these dishes. And if you can also get non-vegetarians to start ordering these dishes, the financial benefits will multiply!

Increased demands for on-the-go meals

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Many consumers are living busier lifestyles and are becoming more time constrained. With higher workloads and diminishing leisure time, these time-poor consumers are turning to restaurants and cafes for meals. As this trend is expected to continue throughout 2017, the demand for quick and convenient eating options is now greater than ever. To cater to this trend, you can start diversifying your menu and start adding on-the-go ready meals. On top of that you should also focus on delivering fast and efficient services so that you are not wasting your customers’ time!

Trend towards premium food

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Dining out is not just about the food. It’s becoming more of a cultural experience. The growth of foodie culture has significantly impacted how restaurants and cafes are being planned around, as consumers now hold higher demands toward fashionable restaurants and new cuisines. With the help of social media as well as foodie platforms such as Zomato and Broadsheet, consumers have a greater need to keep up with new venues. You can try and cater to this trend by refining your menu and replacing basic dishes with something more gourmet. Using advanced cooking methods, or even simply replacing basic ingredients with rare and exotic ones can help create a more premium image for your business.