June is a great time to take time out and think about the challenges you may face in an economy that is presenting many challenges for a large number of small businesses. Some of the challenges include:-
Business Goals – The debate on the Resource Super Profits Tax has highlighted not only the projected difficulties for many major resources companies, but also a large number of SMEs who supply products and services to the resources industry. If you are likely to be effected by the cutback in supplier services to resource companies, what changes can you make to your business goals?
Getting Paid – If you are giving credit to customers, you need to develop a policy on chasing late payers and contacting them immediately the outstanding debt exceeds your business’ payment terms.
Profitability Analysis – Have you analysed the profitability being achieved from various products and individual customers?
Customers – Have you sought your customers’ input on business improvements?
Cashflow Management – is still one of the major problems for many SMEs. If you are utilising bank, or other lender facilities, you may need to budget for increased interest rates later this year and into 2011.
Government Grants and Assistance – The Australian Government and most of the State Governments have a wide range of programs to assist small/medium enterprises.
Human Resources Review – Some transitional arrangements in Fair Work Australia “modern awards” come into force on 1st July 2010. These relate to rates of pay and some other conditions. If you need additional information, please contact us or Workforce Guardian at www.workforceguardian.com.au.
There is also an expectation that there will be increased competition for outstanding employees because of the expected improvement in some segments of the economy. As part of your planning for 2010/11, consideration should be given to reviewing employment packages and training.
The Australian Taxation Office has started to wind back the leniency policy for late payments that it implemented last year. Insolvency experts are warning that the wind back of the leniency policy will affect many SMEs during 2010/11. If you are having difficulties in paying taxation debts, don’t ignore the problem. Contact your accountant and get some advice.
Have you given thought to developing plans and strategies for 2010/11? Now’s the time!
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Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
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