advisory Archives - dmca advisory

Welcome Kirsten to the dmca advisory team!

We had an amazing new team member start last month, which we are thrilled to share with you all. Read a little bit about Kirsten and her first week below:

“I am a foodie at heart, I enjoy cooking and baking, but most importantly I love eating and discovering new and exciting recipes! I love going on road trips down the coast and exploring new places. My dog Bella keeps me busy with walks through national parks and down the beach most days. An important part of my life is spending time with family and friends, having a laugh over a few beverages.The first week at dmca advisory, I was welcomed with some amazing gifts and afternoon tea to get to know the team on the first day. Everyone here at dmca advisory have been very kind and friendly, helping me as I learn the ropes. I have enjoyed getting to know the clients that have come into the office over the past week, and look forward to meeting and getting to know many more.”

Welcome Adrienne & Blake to the dmca advisory team

We had a two new team members start this month, which we are very excited about. Read about Adrienne & Blake’s first week at dmca advisory.

“My first week at dmca advisory has been terrific. The gifts on my desk that I received on my first day, were a beautiful touch. Everyone is so friendly, helpful and are a really great team. The training is amazing and thorough and held with great patience” – Adrienne.

“The welcome from dmca advisory has been great – welcome gifts, a morning tea, and a really friendly and welcoming team. The support from the team has been a great help in getting up to speed quickly.” – Blake.

Five tips for working from home

In these difficult times with more and more workers working from home for the first time, here are some tips to increase productivity.

Get up at the same time each day and get out of your PJs. This is about establishing a routine and getting ready for the day.
Make sure you have a dedicated area to work in your home, with a suitable office chair.
Write a ‘to do’ list for the day with clear goals to remain focused – enjoy ticking them off when each task is complete.
Make sure your technology works, and if you have problems, find out who to call so you have an IT master on hand to guide you in sorting them out next time. Also, remember to plug all devices into the power points.
Move around. Sitting at your desk for long periods is bad for your health — and productivity. One advantage of working from home means you can go for a walk in your lunch break in the local area.

What’s the message on superannuation at this time?

The recent crisis facing the global economy is unprecedented and markets are reacting (as you would expect) with volatility. Historically, events like this in the past have resulted in short term panic until there is some kind of clear vision of normality returning – and it will at some point.

For those with a SMSF and for those nearing retirement, it can be a stressful time. While this anxiety is natural, it is important to understand that superannuation is long term strategy and that retirement strategies can be planned to weather this storm. While you can certainly reduce risk by looking closely at your current position and asset classes, this requires a level head and the need to resist the urge to act on impulse.

And let us not forget the current financial crisis may also present many opportunities for growth, provided you make the right decisions at this time, taking into account all factors and your own financial position.

Our experienced team of business advisers, accountants, wealth management experts, insurance consultants and financial planning experts are across the unfolding issues and understand the new government support programs. We are making special times available to provide personal and tailored advice for our clients looking for a helping hand in these uncertain times. I urge you to make an appointment soon so we can talk through the options, and to reassure you that, with guidance, this is a situation that can be managed and the wellbeing of your business and your family protected.

As they say ‘this too will pass’: we just need to hang in there for a rough ride in the meantime. Be assured we have an experienced and dedicated team to help you in these situations, and to ramp up again when the skies have cleared.

Federal Government COVID-19 stimulus package summary

The Federal Government announced a $17.6 billion dollar Coronavirus stimulus package on March 20 with a second-round on March 22 taking the total spend now to $189 billion.

The packages are aimed at supporting businesses and those on low incomes, as well as those who may have suddenly lost their source of income, or paid employment at this time. The latest details are summarised below.

The government has also recently freed up credit for smaller lenders (small banks and credit unions) to allow small businesses to immediately access low-cost loans if they need these in these difficult times. In addition facilities to draw down on super tax-free are also now available.

There are also new tax regulations with a special help centre established to allow businesses to put off BAS payments for the next few months.

Please call us if you would like more information on eligibility, or how to apply for assistance.

Highlights.

Access Job Seeker allowance as well as the government fortnightly subsidy for casual workers, sole traders and those who lose jobs due to Coronavirus. No waiting periods.
New support for low income families and individuals, with special fortnightly supplements announced.
Business boosters – Cashflow support for employing SMEs with a turnover of less than $50 million are eligible for a tax-free payment of up to $100,000 in order to retain staff.
Eligible employers can now apply for a wage subsidy of 50 per cent of an apprentice’s or trainee’s wage for up to nine months from January 1, 2020 to September 20, 2020.
Australian Banking Association has announced all small businesses affected by the crisis will be able to apply for and access a deferral of all loan repayments.
An increase in the instant asset write off threshold from $30,000 to $150,000 for businesses with aggregated annual turnover of less than $500 million until June 30, 2020.
Businesses with a turnover of less than $500 million will be able to deduct an additional 50 per cent of the asset cost in the year of purchase through to June 20, 2021.
New tax plans and extended deadlines for those struggling with cashflow to be negotiated with the ATO. Possible to delay BAS payments.
$15 billion worth of credit released by the Commonwealth for consumers and business owners that need low-cost loans. The money will be distributed through small banks and credit unions who can provide a variety of unsecured loans for distressed businesses and individuals who need it.
A $1 billion fund for regional areas affected by the virus. This is likely to affect industries affected like tourism, agriculture and education. Details are still to be released on these programs.

Details

Low income payments

Those on low incomes will receive a one-off tax-free $750 payment to encourage spending in the economy. These payments will be made from the 31 March 2020 and a second payment from 13 July 2020.

Families who receive family tax benefits are also eligible. There is no application required as the government will pay this money straight into bank accounts of those eligible on either March 31 or 13 July.

The payment will be made to all social security, veteran and other income support recipients and eligible concession card holders. This includes those on Newstart, those who have Commonwealth Seniors Health cards, and families receiving family tax benefits.

Coronavirus supplement and Jobseeker payments

Those who lose their income due to the coronavirus crisis are eligible for Jobseeker payments immediately, and will also be able to access a special Coronavirus supplement of $550 a fortnight.

Freeing up superannuation draw downs

Those who are eligible can now draw down on their superannuation early, up to $10,000 in 2019-20, and a further $10,000 in 2020-21. No tax will be payable on the withdrawals. Applications need to be lodged online through MyGov before July 1. For retirees, the government is also providing more flexibility around how superannuation assets are managed. This new scheme temporarily reduces superannuation minimum drawdown requirements for account-based pensions and similar products by 50 per cent for 2019-20 and 2020-21.

Up to $100,000 for SMEs employing staff

Small and medium-sized businesses will receive up to $100,000 to cover the costs of employee wages and salaries, paid by the Australian Taxation Office based on tax withheld. This measure will happen automatically based on the business activity statements lodged by business. However, there is no provision for those working as sole traders, this scheme applies only to employing businesses. This means payments will be directly linked to keeping someone employed as the tax is calculated and withheld based on a worker’s wage. Eligible businesses that pay salary and wages will receive a minimum payment of $20,000, even if they are not required to withhold tax.

More details here: https://www.theguardian.com/business/2020/mar/22/what-australias-189bn-coronavirus-economic-rescue-package-means-for-you

Tax relief

The Government is offering a deferral of GST, income and other tax payments on a case-by-case basis. Please call us as soon as possible if you need to take advantage of these provisions so we can begin planning to ensure you can access these provisions:

More details here: https://www.ato.gov.au/Media-centre/Media-releases/Support-measures-to-assist-those-affected-by-COVID-19/

Keep jobs — subsidies for employing an apprentice

The government is focused on keeping people in jobs. Around $1.2 billion will be made available as a wage subsidy of 50 per cent of apprentice’s wages for up to nine months from 1 January 2020. If a business cannot keep the apprentice on during this time, the subsidy will move with the person to the new employer.

Instant Asset Write-Off for business now boosted to $150,000

A new raft of incentives has been launched to encourage businesses to spend money quickly. The most significant of these is the increase in the existing instant asset write off – up from $30,000 to $150,000. SMEs can use this program to buy tools, cars, and industrial equipment to use in the business. There is also a separate 15-month incentive to invest through accelerating depreciation deductions if the instant asset write off doesn’t apply. Businesses with a turnover of less than $500m will be able to deduct 50% of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost.)

Regional support grants

With the recent bushfires, many regional areas are suffering from a double whammy of economic crisis. A new $1 billion fund has been established to support regional areas affected by the virus. This is likely to include businesses in areas like tourism, agriculture and education. Details are still being decided, but it is expected to work in a similar way to the grants that became available after the bushfires in badly affected areas.

SA state government incentives

The South Australian government has also announced a $350 million construction-focused package, to be spent in the next 12 months. It includes a $15 million spend on regional health projects and fast tracks of regional upgrades in across the state. It will likely include work on housing, tourism, and road projects in an effort to increase economic activity in the state with the recent loss of trade and international education revenue. So far there has been no word on payroll tax changes, although changes have already been announced in WA and NSW.

What’s to come

It is expected the Federal Government will move to release more funding in coming weeks with specific programs to support badly affected industries including the tourism, retail and hospitality sectors. We will update you when further news comes to hand.

Further Links

https://business.gov.au/risk-management/emergency-management/coronavirus-information-and-support-for-business

https://treasury.gov.au/

Team Anniversaries

This quarter we celebrated a host of team anniversaries, with Sharon reaching the 6-year milestone with dmca advisory, Kate and Jarrad reaching the 5-year milestone and Tiffany reaching the 2-year milestone. We are very lucky to have you all a part of our team and we look forward to what is to come!

Blessing of the Waters Festival Won by Gregory!

The shallow water meant a group of 50 hopefuls raced into the water from the shore this year, instead of leaping off the jetty, to retrieve the cross after it was thrown into the ocean.

Gregory Voukelatos, 22, of Glenelg North, was the first to the cross, running most of the way through the water before swimming the final couple of metres.

The person who is first to emerge from the water with the cross is said to be blessed with good luck and prosperity for the rest of the year.

Mr Voukelatos, of St George Parish in Thebarton, said it was a “good feeling” to nab the prized possession.

“I’ve been doing it for years so to finally win it has been a blessing,” he said.

Adelaide advisory firm drives growth with appointment of new collaborative partner

South Australian business advisory and accounting firm dmca advisory is driving growth this year with a focus on personal relationships and collaborations with like-minded independent consultants, as smaller firms cement their place in the market with a more boutique approach.

dmca advisory, which currently employs 18 people, today announced a new collaboration with Pru Pascoe from EQAdvisory. Ms Pascoe, a chartered accountant and business advisory specialist, has worked with SMEs and family businesses for more than 20 years both as an external advisor and internal financial resource. Ms Pascoe will run her business out of dmca’s Adelaide office and consult on an ‘as needs’ basis on key projects.

dmca advisory director Tania Tonkin said the arrangement was a move toward using ‘virtual teams’, an idea borrowed from the creative industries where this kind of project work is more common. She said while other accounting and advisory firms were looking toward mergers or expansion, dmca’s strategy was to tap into expertise from those that complement the firm’s SME client base.

“Accounting and advisory services operate in a very competitive space. Many smaller firms have tried to grow through mergers with mid-tiers, but often that’s at the expense of personal relationships with clients.

“We’ve found the human touch is still very important, but it’s becoming scarcer. People value the fact that all members of our team know our clients by their first name and can stop to have a chat about what’s happening in their lives. You don’t get a number cruncher just clocking up the billable time.”

“The challenge comes in providing the full breadth of expertise that clients need today. We might work on tax, superannuation strategies and investment advisory, but sometimes we need someone with deep industry knowledge to discuss a particular succession planning strategy, or the legal structure of a new business. Working closely with a number of like-minded experts on a project basis is a way to offer the extensive range of services you’d find at the bigger end of town in a more cost-effective manner for our SME clients.”

Ms Pascoe said she was looking forward to working alongside Tania and the dmca advisory team given their similar values, complementary skill sets and considered approach to providing advisory services.

“Rapid growth in technology and automated solutions in the accounting industry has left many clients feeling that they are missing the human touch in interactions with their advisors and being serviced with a ‘one size fits all approach’ by a new manager every year. Boutique firms, such as dmca advisory and EQAdvisory are able to overcome this by allowing the directors of each firm to stay accessible and in touch with their clients, listening to their needs and providing clarity through tailored solutions and advice.”

Ms Tonkin said emotional intelligence and soft skills were becoming increasingly important in the industry.

“When we interview potential new staff members or partners we are just as likely to rate the ‘friendliness factor’ as we are to review experience and qualifications. Teamwork, client service ethos, and empathy have become the new KPIs.”

dmca advisory’s new collaboration with EQAdvisory adds to the package of ‘financial wellness’ strategies launched by the firm this year, which includes a women’s advisory and mentoring service, and a workplace health and wellbeing rewards program run in conjunction with Australian insurance firm AIA Vitality.

Work Anniversary – Mark Gellert

One of our employees has quietly had his 8 year anniversary with dmca Advisory this quarter. Mark is a fantastic member of the dmca Advisory team and we are very lucky to have him.

If you would like to find out a little more about Mark, click here.

Trends for small business in 2018 that will spur growth

“Having a crystal ball would be handy these days as turmoil on both political and economic fronts makes it hard to accurately predict what kind of a year 2018 might turn out to be. More than ever, small-business owners will need to adapt quickly and find new ways to streamline operations to power growth.”

Here are the trends I see as being most important.

1. Adapt or die – changing technology is here to stay

We have never seen such a rapid pace of technological change. SMEs need to make sure they stay on top of new developments. Agile and integrated are the new buzzwords.

Cloud solutions are now used by most small businesses, many attracted by the additional security and functionality offered. As technology evolves, it’s likely many will be making the move to entirely paperless offices as online and iPhone-friendly solutions trigger new efficiencies and offer a competitive advantage over rivals.

Managing late payments will get easier. This is one of the biggest problems for small business according to small business surveys by cloud accounting provider Xero, who estimate only 50.7 percent of small businesses have positive cash flow (Sept 2017).

Creating invoices quickly, paying suppliers and tracking cash flow is critical. Now highly mobile and customised applications plug into accounting hubs to provide automatic online bill payments, invoice creation, compliance, inventory management, HR and marketing as a one-stop shop.

Data management will enable businesses to gather intelligence to help plan staffing, cash flow and growth strategies. Business advisors can use this information to set KPIs and track performance in real time to help their clients make better business decisions.

2. Advisory services needed to navigate the changes

Keeping up to date with the latest taxation and compliance changes is vital. There are many new developments that are positive for SMEs, but advisory services will be important to help owners make the most of new opportunities for savings.

Changes to legislation like an increase to the small business turnover threshold from $2 million to $10 million open up a raft of new tax concessions.

In addition, superannuation changes have come into effect to give greater flexibility around contributions and these provide valuable tax planning opportunities if used correctly.

Those looking to sell their businesses will need to keep on top of changes and plan in advance to make the most of any concessions available.

3. Customer service is the new black

In a fast-moving world with machines or call centres on the end of most telephone lines, there will be no replacing the value of old-fashioned customer service.

New trends in client service and marketing will focus on creating personal relationships and connecting with existing and new customers.

While data mining is making it easier to track preferences and buying habits, small business can differentiate themselves with a personal approach to safeguard customer loyalty.

Personal follow-up calls, special offers, reward programs, VIP customer offerings, face to face workshops, and social media campaigns are all ways businesses keep customers coming back. Clever businesses will also use feedback programs to measure levels of service to make sure new marketing strategies are effective and spurring growth.

No doubt going the extra mile for a client will be critical in this competitive age where personal touch is a rarity.

Adam Griffiths, Director, DMCA Advisory