MONTHLY NEWSLETTER – AUGUST 2023

Newsletter – August 2023

I believe there’s only one real way to start off this month’s newsletter…. Let’s go Tillies! How good is it to have the Aussie Women’s soccer (football) team in the semi-finals for the first time ever, and on home soil too. That was an absolutely nail-biting end to the quarter final, our Matildas had us all stressed out during the extended penalty shootout. But let’s talk TV stats:

1. Highest rating TV program of the past decade,
2. Total overall peak – 7.2 million viewers,
3. These figures don’t reflect viewers in public places or who watched on Optus Sport, and
4. Only behind Kathy Freemans 400-metre final at the 200 Olympics, 8.8 million viewers (although data not tracked in 2000).

These stats are for a quarter final, let’s see how they go with the semi against England!

Let’s go Matilda’s tonight in the Semi-Final!!!

Oh, and if they do get through and win the whole thing, feel free to get in touch as the talk of a snap public holiday may have an effect on your business…

Other things coming up in the next few months we’re looking forward to:

Australian Children’s Content Summit 29 – 31 August. – Carmel will be up the coast attending.

SXSW Sydney 15 – 21 October – we will be hanging around a number of the events. Send us a line if you’re going to be in attendance. We would love to catch up.

In Focus – Taxation

This time of year, it’s always tax talk. While tax isn’t always seen as the most exciting topic, it effects each and everyone of us and is quite complex. Having the right structures and plan in place is crucial to ensure the long term goals of the business and personally coincide with how it’s set up and working from a taxing point of view.

We have split taxation into 3 main categories, summarised below:

Tax Returns and Financial Statements
Ensure compliance and maximise tax savings with our expert tax return and annual financial statement services. Our skilled professionals have extensive knowledge of tax laws and regulations, enabling us to prepare accurate and timely tax returns tailored to your business’s unique circumstances.

Additionally, our comprehensive annual financial statements provide a clear snapshot of your business’s financial position, enabling you to make informed decisions and meet reporting obligations. Trust us to handle your tax returns and annual financial statements with precision, giving you peace of mind and the freedom to focus on your core business activities.

Strategic Tax Planning / Advice 
Unlock opportunities for tax optimisation and strategic financial decision-making with our expert strategic tax planning and advice services. Our knowledgeable team understands the complexities of the tax landscape and works closely with you to develop strategies that align with your business goals.

From identifying potential tax incentives to implementing tax-efficient structures, we proactively analyse your financial situation. Our comprehensive advice empowers you to make informed decisions that positively impact your bottom line. With our strategic tax planning services, you can navigate the ever-changing tax landscape with confidence, ensuring compliance while optimising your tax position. Trust us to be your trusted advisors, helping you uncover hidden opportunities and strategically plan for a prosperous future.

Structuring Advice
We understand that the right structure is crucial for success, and our experienced team provides expert guidance to help you navigate the complexities of business structures. Whether you’re starting a new venture or restructuring an existing one, we evaluate your unique circumstances and objectives to recommend the most suitable structure that aligns with your goals.

From entity selection and incorporation to partnership agreements and restructuring advice, we ensure that your business is positioned for long-term success. With our tailored structuring services, you can streamline operations, minimize risks, and maximize opportunities, allowing you to focus on what you do best.

We are a business proudly built on referrals.  If you know a business owner that would benefit from a fresh take on their accounting, tax and advice needs, please send them our way!

Avoid ATO’S increased tax penalties – reminders and updates

With the ATO shifting its focus on taxpayers with outstanding tax lodgments and debts, find out how to avoid being penalised at the increased penalty rates in 2023–24.

Have you got a plan for growth in your business?

As a business owner, you can get bogged down in the demands of day-to-day business. We can help build your business plan and identify the steps you’ll need to achieve it.

Proving your ongoing business viability through 5 financial reports

Proving that you’re a viable business. We’ve listed the main reasons why lenders and investors want to see solid financial statements before they invest in you.

Xero Subscriptions Price Increase

From 13 September 2023, the cost of Xero Payroll Only, Starter, Standard, Premium and Ultimate plans will increase in Australia:

You can find the updated pricing here – Pricing Update | Xero AU

The price of any optional add-ons you have as part of your subscription will not change.

If we hold the subscription on your behalf, we will shortly be notifying you of the amendment and processing this automatically for you.

If you currently hold your own subscription, please keep the above increase in mind as your September subscription fee is direct debited.

Are Your Services Priced Correctly?

Pricing has been a hot topic, as with the above subscription price increase by Xero, everyone I’m sure has noticed the price of doing business has gone up. The question is, have you re reviewed your pricing and priced your services correctly so you’re not losing out on your margin?

A good starting point, is understanding how your services stack up against competition, but also understanding what the market dictates the prices could reasonably move. This is Price elasticity which is an economic concept that you should get to know. It is instrumental in understanding demand for your product and the price you can set for it.

A price elastic product is one that experiences changes in demand as the price rises or falls. Some products are staples, and their price is inelastic. (Think things like bread or milk). People will buy these regardless of price fluctuations. When your product is price elastic, a price rise might prompt people to buy an alternative product or wait until the price is cheaper. Products that are affected in this way are often non-essential or luxury goods.

Working out price elasticity of demand

You can determine price elasticity of demand, using an equation. The equation takes the percentage change in demand and divides it by the percentage change of price.

For a product that increases 10% in price and sees a 10% drop in demand, their price elasticity of demand is negative 1.

Most products range between negative one and zero.

The pricing factors you need to understand

Here are the factors you should consider before increasing the price of your product:

• Are there substitutes to your product? – If people can easily switch to another product they may be price sensitive.
• Your customer’s budget – If the cost of your product represents a small percentage of your customer’s budget, they may pay less attention to the cost.
• Need or a want? – If your product is a necessity, your customer will buy it no matter the price. But they may not feel very good about the price increase!
• Loyalty to your brand – The goal is to have people choose your product over your competitors on factors other than features and price. Boosting brand loyalty can help to reduce price sensitivity.

With competition increasing in most sectors, understanding your price elasticity can give you the tools to pitch your product competitively.