Blog

Sep 05

Agent of Change - Are You Really Ready For Business Growth?

Posted by Glenn Talbot at Wednesday, September 05, 2018


Growth can be a daunting path for many business owners. This is necessary throughout the growth/improvement process, not just the start as most people would expect.

According to the Australian Business Indicators report for 2018, the ABS reports the number of businesses exiting the market sector in 2016-17 was 261,450, an increase of 0.5%.


In the same statistical data, 3.1% business entry was up with a 3.5% increase in the second quarter of 2018. So growth is happening, but is it happening in your business? People are leaving a business and people are growing in business- there is a gap. So are you an agent for change or a resistor of growth?

For business owners, this can the road less traveled. There is a trend amongst many high growth businesses, and the common denominators we see are:  


·         Delaying gratification: Sacrificing present comfort for future gains.

·         Acceptance of responsibility: Accepting responsibility for one's own decisions.

·         Dedication to a truth: honesty, both in word and deed.

·         Balancing: Handling conflicting requirements.


If you are experiencing difficulties in your business, it might be time to engage the services of a business growth specialist. This can also be a daunting prospect. Many people are resistant to sharing their financial information. Collecting valuable data and using new information and knowledge to suggest a way forward can induce a moment of panic. Unfortunately, it is a sad reality that these businesses are not interested in growth, but instead, they endure being in a constant state of survival lurching from one crisis or upheaval to the next without a clearly defined and articulated roadmap for their future.

So much can be gained from sourcing someone to help you in your business, a new set of eyes can be a breath of amazing fresh air and can instigate your unique ideas and activate your vision.


Because we all know that when we are on task and belly to belly with our business every day, we can lose sight of the bigger picture and get lost in the details.


I am passionate about influencing and enthusing others through personal advocacy, vision, and drive. Listening carefully and understanding each business’ journey is required so that a true understanding of the circumstances can be explored. In initial interviews we enjoy doing a definite deep dive into a business with the owner, in an opposite scenario this can also become a rescue mission, Houston we have a problem!


Everyone who begins a business is brave, some businesses start off with a bang and then begin to whimper, you see like a fingerprint, each one is different. Sure, there are common factors, but the uniqueness is necessary to encompass the ability for growth and success.

Mission, Vision and a clear set of Values are crucial to moving forward. When you have these facets clearly defined for yourself and the vision for your business combined with a willingness to work on the business and not just in it- anything can happen!

To read Financial Infidelity CLICK HERE



May 03

Financial Infidelity

Posted by Glenn Talbot at Thursday, May 03, 2018

Internal theft costs organizations worldwide an estimated 5 percent of their annual revenues, according to the Association of Certified Fraud Examiners. Price Waterhouse Cooper’s 2018 Global Economic Crime and Fraud Survey finds that 49% of global organizations say economic crime has been experienced by them in the past two years. People inside the organization perpetrate 52% of all frauds. A scary thought, and what about those that aren’t aware? Who is cheating the system, stealing money and why?


We are often called when it is too late. An audit, or a late reconciliation after months of theft will reveal ‘something is up’ then the damage is done!


Often once a theft has been discovered and assessed there will be an underlying problem happening with the perpetrator. Gambling and drug addiction are common factors we see from employees and even business partners. It is very sad, however it is a part of business that must be addressed and identified as soon as possible.


If someone had the mindset and considered it, they will look at the system and find a gap, like a burglar, find a weak spot and use that.


Take a look at what numbers the business has been doing on a regular basis, I always suggest doing this monthly if not weekly and look for anomalies. Leaving it longer can be risky and so damaging. Often small businesses never fully recover from employee theft in the thousands or even hundreds of thousands because of the impact it has on cash flow, not to mention the emotional impact.


Whilst we are trained experts, there are things you can be doing to assist prevention and early identification of theft. Employee theft investigation needs to be swift and effective.


One method we see time and time again is false invoices, someone pays cash and the person stealing will put that money aside and throw away the invoice or delete it. It is when a customer returns for some reason with an invoice that cannot be located, that alarm bells should ring.


Signing off on cash books and checking for missing numbers, bank deposits that do not add up, checking your cash drawer, these are all small things that can help identify a problem. You must have managerial checks and balances in place to help keep your finger on the pulse. Otherwise, it is like leaving the front door open to your house, hoping no one will come in and steal.

It is also very important not to make accusations, as you will require proof that a crime has been committed. However, one tip is not to let on that something is going on within the organization, as this can alert a thief and they can then attempt to cover tracks hindering the investigative process. Gathering evidence is important and then notifying the correct authorities. BUT ALWAYS consider doing a police check. So many people who choose poorly to steal from their employers or business partners are serial offenders and will do so repeatedly, there can be a trail of disaster behind them that only a police check will reveal. You can download a police check here* https://policecheckexpress.com.au/resources/conduct-police-checks-potential-current-employees/


Confidentiality is also crucial, as often a business owner is in denial, someone they trust or have let in their inner ranks might be betraying them, and it can make them feel silly, or naive. However we know from the latest statistics, forensic infidelity is high, it can happen to anyone. If you suspect something might be going on, don't ignore that instinct. Some of the MOST prestigious companies in the world suffer from internal theft, so it really can happen to anyone.


To find out more how you can Fraud proof your business, protect against theft or if you suspect forensic infidelity you can contact us on 0425 851035 or via email at glenn@gtsbookkeeping.com.au.


Mar 22

Low Hanging Fruit

Posted by Glenn Talbot at Thursday, March 22, 2018


Industry rumour has it that The Australian Taxation Office is on the warpath for small business in what may be one of the biggest employee overhauls ever seen and it is going to be epic.


An analysis by Industry Super Australia submitted to the Economics References Committee into Wage Theft and Superannuation Guarantee Non-compliance, indicates that employers failed to pay an aggregate amount of $5.6 billion in SG contributions in 2013-14. On average, that represents 2.76 million affected employees, with an average amount of over $2,000 lost per person in a single year. The ATO’s own risk assessments suggest that between 11% and 20% of employers could be non-compliant with their SG obligations and that non-compliance is “endemic, especially in small businesses and industries where a large number of cash transactions and contracting arrangements occur.”

 

The progression into full scale investigative actions go from there. You do not want to be red flagged by the ATO, and you need to fall within the benchmark expected. All it takes is one employee to make a complaint and the next thing you get the audit call.

 

What does this mean for you and your business? To help you work out where you are sitting, GTS have put together this checklist.


  • Are all of your employees registered with a super fund?
  •  Have you registered your business with a Clearing House?
  •  Are you providing your employees with payslips every pay period?
  •  Are you making the correct contributions?
  • Is your Super Financial  Reporting accurate?
  • Have you paid everyone correctly?
  • Are you on board with the latest awards? Have there been changes?
  • Is your annual leave accrual process up to scratch on the payslips and your internal records?
  • Are all of your company details accurate on payslips? 
  • Are you paying your employees the correct award or do you have a EBA? 

If you are not adhering to Super laws, you are in for some trouble. The penalties are high, tedious and stressful. For example if you are the director of a company that fails to meet an SGC liability in full by the due date automatically becomes personally liable for a penalty equal to the unpaid amount.


GTS are now offering for a limited time a fully customised Super Health Check, we will undertake a complete Audit of your set up and target key areas for attention and recommended actions and strategies. Call Glenn now on to book yours. March is the time to ACT!