What does BHR Papalia do for you?
Chantelle, who takes care of everything behind the scenes including orders, yard design, accounts and invoicing, said she could not speak highly enough of BHR Papalia.
“We originally started with Marie Mach, and now we’ve got Reon Tither,” she said. Reon picked up where Marie left off, and he does a great job.
“They’ve been alongside us from the start, and nothing is too much trouble for them. We wanted to go with Xero from the start, and make our business modern. They helped us set that up.
They’re beyond just running books, their advice and knowledge are amazing.”
What are your highlights of the past 12 months?
Chantelle said the growth in the company had been a huge highlight. “We had some goals, and we’ve doubled them,” she said.
“Where we thought we’d be in five years, we’re there in one – it’s a wonderful achievement. We don’t advertise, it’s all word of mouth.”
“If people ask us for their dream yard, we can do it,” Travis said. “We’ve done four swimming pools in our first year. Being able to offer that has been a dream for us.”
There are signification estate planning and asset protection consequences for the two ownerships. BHR Papalia can assist you should you need advice in this area.
Reference is made to View Legal flyer dated 1 January 2015
However, for businesses who provide a mix of direct services/labour and materials, the above type of calculation method is not always appropriate. A different methodology is required to get to the correct outcome: some well-researched assumptions plus consideration of the recent past performances of the business.
One such method is to take an average of the past two or three years Gross Profit, expressed as a percentage of total Sales, and use this in your calculation. For example, if your annual Fixed Costs are $100,000 and your average Gross Profit is 40% of total Sales, then you simply divide $100,000 by 40% to arrive at a required breakeven Sales amount of $250,000.
The key to calculating this successfully is to as accurately as possible work out the true variable costs (those costs which are incorporated into what is being sold to your customer) versus the true fixed costs, which are typically static in nature and not directly incorporated into the product or service being sold.
Typical examples of these two categories of costs are:
The measurement of this number can be more easily calculated due to the way Profit and Loss Statements in business management accounts are compiled. This is done by carefully selecting all the true cost items of production and placing them under the section called the ‘Cost of Goods Sold’ or ‘Cost of Sales’. This determines the correct Gross Profit of the business and as stated above, when expressed as a percentage of Sales it becomes the key metric to working out your Breakeven Sales amount in dollars.
In order to more accurately calculate your Gross Profit you include the following cost items:
It’s often here where errors in assumptions can be made. Getting this right, however, allows you to more carefully and accurately determine not only your breakeven sales amount but also help work out the profit margin you need to make.
At BHR Papalia we have a team of very experienced and qualified accountants and business advisors who can assist you to better understand your business numbers, and find hidden opportunities to improve your bottom line.
Come and talk with us to find how far you can go with your business!
What does BHR Papalia do for you?
BHR Papalia handles all of Algae Busters Pool Care accounting, and ensures Algae Busters meets all the legal, government, and latest business tax requirements. They provide us and our family with a friendly, professional service.
They introduced us to Xero Accounting Software, which saved us an enormous amount of office time so we could have more quality family time. They provide continual support and training, and ensured a hassle-free changeover from the old system.
No question is too hard for BHR Papalia, and they are always eager to help and solve any problems in a friendly, efficient manner.
What have been your achievements or highlights from the past 12 months?
Just seeing our customers happy and satisfied with a healthy, maintained swimming pool! Taking the hard work out of owning a pool so the owners can just enjoy it and have fun brings us a sense of satisfaction and achievement.
We love hearing from customers that are happy to phone us when they have a problem, because of the friendly prompt service they receive and because they have been referred to us by previous happy customers.
If you die leaving:
Someone must apply to the Court to obtain letters of Administration and be appointed as the administrator.
If you have a will, do you need to change it or execute a new one?
You should review your will regularly to ensure it remains up to date with your current wishes. You should consider the following:
Reference: View Legal flyer – Why is Estate Planning Important? – updated 1 September 2016
Business Advisory South West and Peel officially opened its doors on Tuesday July 3 with a launch party at their head office at the Homemaker Centre, Bunbury.
More than 50 people attended the affair, where a welcome to country was given by Noongar Elder Gloria Dann.
The event was MC’d by Doug Green of ipCreative.
Lisa Legena from the Small Business Development Corporation said that she had been happy to announce business consultancy IPS as the successful tenderer, as their innovative and creative approach to presenting business advisory services had impressed her.
IPS Director Kristal Kinsela, who travelled from Port Macquarie to attend the event, spoke to the crowd about how IPS had come from small beginnings to win the Business Advisory contract.
“This is a proud moment for us,” she said.
“Because of the challenges we’ve faced, we’re in a really great position to lead a service like this. We’ve got big goals at IPS, and soon you’ll see our signs up in other places too.”
Kristal introduced Business Advisory’s business partners, BHR Papalia, Southern Cross Austereo, Total Network Engineering (TNE) and ipCreative, before cutting the ribbon to the Business Advisory office with help from Ms Legena.
The event was sponsored by Capel Vale, Citygate, Lonsdale Party Hire and Amorish Catering.
The second restriction on deductions relates to depreciation. From 1 July you cannot claim a depreciation deduction for second hand (“previously used”) assets acquired after 9 May 2017 (Budget night). A typical example would be where the asset is acquired as part of the acquisition of residential premises (eg air conditioner, carpets, blinds). Another example is where the asset was purchased second hand from “Gumtree”.
Deductions will still be available for new assets acquired by residential rental property owners.
When preparing your tax return for the year ended 30 June 2018, your accountant may request further substantiation for assets purchased to ensure they are new or fall within the legislative restrictions.
As business advisers at BHR Papalia, we see situations where business owners encounter a degree of difficulty in transitioning from being the “doer” of the work to being the one who supervises others to do just that.
Some reasons why business owners struggle with this transition are things like wanting to make sure quality control is maintained and where the business owners feel they need to be on the job at all times to ensure cost control and a quality outcome for their client. Delegation just becomes too difficult.
This obstacle seems more obvious in certain business types, such as building and trade based businesses for example, but it really applies across most business sectors. Getting yourself ‘off the tools’ in order to manage the processes, delegate and lead the way sometimes becomes an insurmountable challenge.
What this is really all about is the change which occurs when a business owner goes from working in their business to working on their business. Put another way, it means moving away from doing the work to finding the work; you become the “rainmaker” of the business.
We use a number of question and answer processes that are designed to assist business people in this situation to make the gradual paradigm shift that this entails. These are designed to help tease out the aspects of what managing and leading are all about. In essence we all need to grow as our business grows and this is as much about nurturing and learning as it is about making sure the bills are being paid and the money is collected on time from customers.
Therefore the bigger picture about business growth should prompt you to consider a range of very important factors and questions, some of which are:
The above points cover a lot of what becomes your business plan to prosperity. We regularly use an old saying which goes ‘if you fail to plan then you plan to fail’. The lack of attention to your future will often result in another pearl of wisdom which says that ‘people who aim at nothing will hit the target with unerring accuracy’!
The ATO currently requires any employer not meeting their obligations to lodge an SGC Statement Report and rectify the error by paying the outstanding amount. If you do not voluntarily engage with the ATO by lodging the required report, the ATO will potentially take a more aggressive approach in the collection of unpaid amounts, forcing compliance and administering harsh penalties.
If you are found non-compliant through an ATO audit (not by voluntary disclosure) you could be up for penalties of 200% of the SGC outstanding, plus general interest charges on the total outstanding amount.
Further to this, the SGC and late superannuation guarantee payments are not tax deductible.
Haven’t paid your obligations? Well it’s your lucky – amnesty!
The ATO have introduced a Super Guarantee Amnesty period (24/05/2018 – 23/05/2019). This is an opportunity for you to catch up on your obligations, without incurring any hefty fines and you can still claim a tax deduction for the late payments.
Don’t think you are behind? Perhaps this is a good time for a payroll audit to ensure you are paying according to the appropriate awards and that your superannuation calculations are correct. Don’t forget any contractors you pay may also meet the definition of an employee for super guarantee purposes: make sure you include these types of contractors in you payroll audit to ensure you capture the total SG shortfall.
To take advantage of the amnesty there are a couple of things you need to do.
Under the amnesty, employers that are behind will have to pay:
Confused? We get it, it’s a heavily legislated area and reading about it is a sure cure for insomnia! If you aren’t sure about where you are with your super guarantee obligations, give us a call, we can perform an audit or show you where to start if you are behind. We can assist in filling out the correct forms, calculating SGC charges and help you to implement a plan to keep you up to date in the future.