Creating New Roles In Your Business? Here’s A Few Tips

As businesses grow, you will inevitably need to create new roles and hire new staff.

Adding a new member to your team is always challenging; when hiring someone to fill a new position, there is even more pressure to make the right call.

Business owners who can allocate workplace responsibilities efficiently and logically stand to reap significant benefits in the long run.

The challenge is not just choosing the right person but also making sure that you have clearly defined the new role and established your expectations. You should spend time thinking carefully about the skill set, experience and aptitude you will require from your new employee.

Even in times of high turnover, many owners are anxious about the financial commitment of taking on new staff members. While paying additional wages may seem like a gamble, failing to take on the extra labour you need will almost certainly damage your business.

You and your current employees will have much more stress to deal with, and chances are that efficiency and quality may suffer down the line.

In situations where you are worried about taking on a new staff member, it is important not to make the mistake of hiring an inexperienced person on the sole consideration that you are able to pay them a modest salary.

You need to think very carefully about what your business needs today and what you may require from your team as you continue to expand.

For example, as things get busier, you may find that you will need to devote more of your time to dealing with suppliers, and as a result, you will need someone you can trust to manage day-to-day matters at your store.

Hiring new staff and defining their roles within your business is incredibly important to your future success. Staff are the most important asset that a business has, and how management has defined roles and responsibilities can significantly impact employees’ abilities to perform.

Before you start recruiting a new staff member, you should write down all of the tasks you would require a new employee to complete and the responsibilities you may want them to take on in the future.

Once you have written down everything, you can think of, take a step back and look at the list.

At this point, you need to consider whether it will be in the business’s best interests to have a single person take on every task.

You may realise that some of the tasks are suited to an entry-level position, whereas others require specific skills and experience.

If this is the case, you should consider various options for restructuring the division of work between existing roles so that the new role will be suited to a specific type of candidate.

There is also always the option of creating a part-time position, or even two part-time positions,  instead of a full-time role as well, pending business budgets & expenses.

Many businesses will require extra help in busy periods such as the Christmas holidays. When hiring someone for a specific period, you should be upfront with them from the start and clearly explain the dates you have in mind.

Hiring and creating a new role for your business requires careful planning, particularly around payroll, classifying the employee, or even integrating and onboarding them into the pre-existing structure. Speak with a professional business adviser if you are unsure about any of the procedures you may need to implement during the hiring process.

Creating a successful work team

If you’ve never had a bad teamwork experience, then you’re often considered to be very lucky. Creating a successful team at work can be challenging as it forces people with a range of opinions, values, work styles, work goals and past experience to work together in proximity. To help build a successful team, certain measures can be considered:

Choose the right people:
Taking the time to deliberate and choose a group of people with the right skill set for the project can increase the team’s chances of success. Having the right amount of people doing a particular job in the team can help prevent there from being too many workers in one area with other areas failing to be completed. Choosing a diverse team can also provide a broader perspective on the project and allow for growth.

Encourage team-building exercises:
Allowing the team to spend time together before undertaking a collective project can be a good way for them to get to know each other without the pressures of work. This can strengthen relations and make it easier for team members to ask each other questions, ask for help and offer their opinion when the work begins. Having team-building exercises can also help identify who is suited for what role and who works well together.

Have a clear purpose:
Make sure that your team is all on the same page about their purpose and the short-term and long-term goals they should be working towards. It is helpful when these goals are specific and measurable to avoid arguments of what the team is working towards.

Outline performance expectations:
If the team is unsure of what is expected of them, they may get off track or not meet work standards. Outlining deadlines, work quality and work hours can help the team perform effectively. This can also prevent arguments and criticism about each others work performance.

Reward good teamwork:
If the team excels in an area of work, it can be motivating to show your recognition of their achievements. This can be as simple as verbally congratulating the team on their work, or can be more formal, such as a workplace announcement or a spot in the company’s internal newsletter.

Ongoing checkups:
While teams may feel uncomfortable with being micro-managed and feeling like they are under constant surveillance, having simple evaluations throughout the project can be helpful. The results from evaluations can show you if your team is on track as well as if there are any problems that may be arising. This can help the team be motivated to succeed and help you identify and resolve problems early.

Creating a positive work environment

The workplace can be where you spend the majority of your time. Maintaining a positive and healthy environment while at work is therefore critical to your happiness and mental wellbeing. One of the key ways to ensure your workplace is healthy is by having strong relationships with your colleagues. Here are some simple ways you can develop a team-oriented atmosphere and make your time at work more productive and enjoyable.

Social events:
While you may spend a lot of time with your team at work, it would further improve the morale of your workplace to incorporate social events outside of work. Great working teams are those that spend a lot of time together and enjoy each other’s company. When people are engaging together in an activity that isn’t work-related, it can create a more personal and friendly work environment.

You may consider something simple, such as going out for group lunches or coffee dates rather than eating or taking breaks alone. If the logistics of this are difficult, you could book in a shared weekly or fortnightly meal with your colleagues in the same way you would a meeting.

Team rituals:
Similar to team social events, incorporating team rituals into the working day can help to create a sense of collaboration and comradery. Having daily or weekly rituals can help people to feel more deeply involved in the working experience. Rituals to celebrate success may include rewarding milestone achievements like the end of a project or a quota reached or implementing an ‘Employee of the Month’ program. Rituals to build relationships may also benefit your workplace, such as welcoming new employees in a special way or recognising birthdays and other celebrations.

One of the most important motivators for employees is having a sense of fun in the working environment. The best jobs are those that are enjoyable, as the work is motivation in itself. Where there is a positive and collaborative team environment, this will reflect in the quality of work and productivity of the staff.

Creating a business contingency plan

When business is going well, it can be easy to procrastinate planning for the bad times. However, preparing for disaster before it strikes by having a contingency plan can be the key to business survival.

A contingency plan can help businesses prepare for possible circumstances such as natural disasters, employee theft, negative publicity or staff injuries. Having a plan for these contingencies can help your business react faster to unexpected events to prevent ongoing damages, recover from disruptive events, and resume regular business operations as quickly and easily as possible. When writing a contingency plan, consider incorporating the following tactics:

Identify the risks
Think about the key risks that your business could face. This could involve researching your business market, competitors, economy trends, security threats or employment issues. It is a good idea to work with members of different departments in your business in order to foresee potential risks in all sectors.

Prioritise
Once you have identified potential risks, prioritise the ones that are most likely to affect your business. This will ensure that the most relevant issues are addressed first to provide you with a plan if they occur. One way to do this is by creating a risk assessment to identify the most pressing risks.

Create a plan
After identifying the key risks to your business, you can start drafting a contingency plan to mitigate their effects. This should include a clear guideline that outlines what to do when a contingency occurs and how to continue operating the business. The plan should also clarify employee responsibilities, key contact details, timelines of when tasks should be done, restoration processes, and existing resources that can be drawn upon to prevent damage, such as insurance coverage.

Resource assessment
Consider the resources you may need in order to resolve a contingency. This could include extra staff, insurance, PPE, or technical support. In order for the resolution process of a contingency to go smoothly, it is important that you have enough equipment and support so that you don’t have added stress and time going towards finding extra resources.

Share the plan
Once you have written a contingency plan, ensure that they are accessible to your employees and stakeholders. Be receptive to any feedback your employees or stakeholders may have about your plan as there may be room for improvement. It is also important to review your plan over time to ensure that it stays up to date.

Creating a business cash flow forecast

Small business owners are often faced with stressful financial decisions and periods of uncertainty. Having a cash flow forecast can help your business avoid cash shortages by allowing you to track whether your spending is on target, prepare for business expansion, plan for upcoming cash gaps and plan budgets. Here are some tips on cash flow forecasting to help your business be in control of its finances.

Prepare a sales forecast
Existing businesses can look at past years’ sales figures, taking note of busy and quiet periods, and prepare an income prediction based on historical trends. If you’re a new business, you can start by making cash outflow estimates. This can help you plan for what sales you should aim for to cover this and make estimates of predicted sales.

Knowing how much money you’ll have in a week or a month is central to being able to budget and know when to pay your expenses. Whether you receive customer payments at the time of sale, or you receive payments based on a subscription or service, you can schedule expenses and budget based on payment periods.

Account for other income forms
Your business may generate income from sources other than customers. Having an estimate of what income you’ll receive and when allows you to refine your budget and plan around payments. These income sources could include:

  • Grants (such as government grants).
  • Tax refunds.
  • Investments in the business.
  • Deposits.
  • Loans.

Estimate your expenses
Your cash flow forecast should include all your predicted expenses, giving you a detailed outline of the amount you’ll spend and when to help you determine a budgeting schedule and avoid cash shortages. Expenses to consider in your forecast include:

  • Bills such as electricity, water, rent, telephone and internet.
  • Staff wages, including taxes, superannuation or bonuses.
  • The cost of supplies and equipment.
  • Packaging and delivery services.
  • Software subscriptions, such as an office messaging system, accounting system, anti-virus protection, website developing etc.
  • Maintenance and repairs.
  • Business loan or credit card repayments.
  • Staff events.
  • Buying new assets.

Update and refine your forecasts
As your business grows and evolves, your financial situation may change. To keep your projections on track and as accurate as possible, update your cash flow forecast regularly to account for any miscalculations, unpredicted expenses or income and business changes. Taking a few moments every month or so will keep you prepared and prevent you from being caught off guard by a sudden cash-flow crisis.

Crafting Your Own New Year’s Business Resolution In 2024

With business operations underway, a new calendar year presents a perfect opportunity for entrepreneurs and business professionals to reflect on the past and set the stage for future success.

Crafting a meaningful business resolution is not just about setting lofty goals; it’s about creating a plan that resonates with your unique aspirations and challenges. So, how can you develop a New Year business resolution that works for you?

Reflect on the Past Year

Before diving into the future, take a moment to reflect on the past year. Identify key achievements, challenges, and areas for improvement. Understanding your business’s current standing provides valuable insights for crafting a resolution that addresses specific needs.

Define Clear Objectives

A successful business resolution starts with clear objectives. Define what you want to achieve in the coming year, ensuring your goals are specific, measurable, achievable, relevant, and time-bound (SMART). Whether it’s increasing revenue, expanding your customer base, or streamlining internal processes, clarity is key.

Align with Your Vision and Values

Your business resolution should align seamlessly with your company’s vision and values. Consider how your goals contribute to the overall mission of your business. When your resolution reflects your core principles, it becomes a powerful driving force for success.

Break Down Larger Goals into Manageable Steps

Large, overarching goals can be overwhelming. Break them down into smaller, manageable steps. This makes the resolution more achievable and provides a roadmap for progress throughout the year. Celebrate each milestone, reinforcing your commitment to success.

Consider Personal Development

Business success often intertwines with personal development. Identify areas where you can grow as a business owner or professional. Whether enhancing leadership skills, improving time management, or learning new technologies, personal growth contributes significantly to business success.

Embrace Flexibility

While setting clear objectives is crucial, it’s equally important to embrace flexibility. The business landscape is dynamic, and unexpected challenges may arise. A flexible resolution allows for adjustments while focusing on the ultimate goal.

Involve Your Team

If applicable, involve your team in the resolution-setting process. Encourage their input and feedback, fostering a sense of collective ownership. A shared vision increases motivation and commitment, propelling the entire team toward success.

Use Metrics for Evaluation

Establish measurable metrics to evaluate your progress. Regularly assess key performance indicators (KPIs) related to your resolution. This data-driven approach provides valuable insights into what’s working well and areas needing adjustment.

Learn From Setbacks

Setbacks are a natural part of any business journey. Instead of viewing them as failures, see them as opportunities to learn and grow. Analyze setbacks objectively, identify root causes, and use the insights gained to refine your approach moving forward.

Celebrate Achievements

As you progress towards your resolution, take the time to celebrate big and small achievements. Recognise the hard work and dedication that led to success. Positive reinforcement boosts morale and sets the stage for continued excellence.

Coming up with a New Year business resolution that truly works for you involves a thoughtful and strategic approach.

By reflecting on the past, setting clear objectives, aligning with your vision, involving your team, and maintaining flexibility, you’ll create a resolution that drives success and fosters a culture of continuous improvement and achievement.

Cheers to a prosperous New Year for you and your business!

COVID Deductions Rely On Work-Related Purposes (So Here’s What You Might Be Able To Claim)

People across different industries may have different items for work that they can claim a deduction on their tax returns for, but this season may see a few common occurrences across individual tax returns for 2022.

On your individual tax return this year, you may notice a few expenses pertaining to COVID-19-related purchases, such as masks, hand sanitisers and RATs tests that you may be able to claim (depending on your circumstances). These deductions may have specific conditions and requirements that must be met, and failure to comply may result in the Australian Taxation Office disallowing these claims.

Masks and hand sanitiser are claimable deductions for those who have required them to work in their industry (e.g. retail, hospitality, education). This is because they can be claimed as PPE (Personal Protective Equipment), but they must be directly connected to how you earn your income (for example, many State governments mandated at various points last year that hospitality workers were required to wear masks while working). If your place of employment did not provide this PPE to you, and you had to purchase it yourself, it may be claimable.

Rapid Antigen Tests (RATs) however, must be purchased for a work-related purpose. There have been plans to specifically allow deductions for Covid-19 tests such as RATs by the Government to be claimed on individual tax returns.

This legislation is scheduled to be introduced on 1st July to specifically address this, but a COVID-19 RAT test can still be claimable if it is for a work-related purpose. This is the critical point to understand. It is a claimable deduction in this instance because it has been purchased for a work-related reason, or to be able to attend your place of work.

When claiming a deduction, it is important that you keep accurate records (such as receipts) to provide evidence of your purchase, and that these purchases weren’t reimbursed by your employer. If they were reimbursed, you will not be able to claim it back.

If you were working from home during 2021, you may be able to claim back some of the expenses related to this. One of the ways that you may be able to do so is through the ‘shortcut method’. This method allows you to claim 80 cents per hour for each hour worked from home (from 01 March 2020 to 30 June 2022). Importantly though, this includes everything – you don’t need to make other claims for work from home items such as phone, internet, stationery or furniture/equipment depreciation separately.

Depending on your circumstances, choosing the wrong method means you could cheat yourself out of big dollars on your tax return. Discuss your situation with your trusted tax agent so that you can understand what exactly is required from you in the lead up to tax return time.

COVID-19 factors to remember when filing your tax return

The end of the financial year has rolled around again, but this time, COVID-19 may affect the way you fill out your tax return. The ATO has released a range of methods to make tax time easier for businesses and individuals experiencing unprecedented circumstances.

How JobKeeper will affect tax returns

Sole traders receiving JobKeeper payments on behalf of their business are required to include these payments as assessable income for the business. Employees receiving JobKeeper will see that those payments have been automatically filled out in their tax return.

Individuals who have had their wages increase due to JobKeeper should identify whether they have been bumped into a higher tax bracket as a result. If an individual is working multiple jobs and receiving JobKeeper at one of these positions pushes them into a new tax bracket, they may be faced with a higher tax bill on their return if their other employers had continued deducting tax at their original lower rate.

How JobSeeker will affect tax returns

JobSeeker payments are considered taxable income. The ATO will automatically upload JobSeeker details in the ‘Government Payments and Allowances’ section of recipients’ tax returns. However, recipients are advised that there may be a delay in these JobSeeker details being updated, potentially until the end of July. The ATO recommends delaying tax return lodgements until these details are finalised. Recipients that wish to complete their returns prior to this must ensure they include these details themselves, as leaving out assessable income can slow down the return process or result in a bill later.

COVID-19 protective equipment

Occupations that require public interactions may be able to claim personal protective equipment (PPE), including:

  • Face masks
  • Sanitiser
  • Anti-bacterial spray
  • Gloves.

This would typically apply to industries such as healthcare, retail and hospitality. Many workplaces now have this PPE available for employees, however, employees who must pay for their own COVID-19 PPE and are not reimbursed for it will be able to make a claim.

Working from home

The ATO has introduced a new ‘shortcut method,’ which applies from 1 March 2020 to 30 June 2020. Under this new method, employees working from home as a result of COVID-19 can claim expenses incurred at a rate of 80 cents for each hour worked from home. Employees must keep a record of the hours they worked from home as evidence to support their claim.

Deductible running expenses include:

  • Utilities such as heating, cooling and lighting.
  • Cleaning costs for your work area.
  • Mobile or landline phone expenses for work calls.
  • Internet connection.
  • Computer consumables and stationery.
  • Repair costs for home office equipment and furniture.
  • Depreciation of home office equipment, computers, furniture and fittings.
  • Small capital items such as a computer (purchased for the purpose of working from home) can be claimed if they cost under $300. If the cost exceeds $300, the decline in value can be deducted.

COVID-19: cybersecurity considerations when working from home

With COVID-19 motivating many businesses to have employees work from home, the change may be difficult for some teams, especially if they haven’t worked remotely before. The focus is often on your team’s productivity, communication, equipment and ability, however, cybersecurity is a crucial element that should not be overlooked.

Most home networks are not secure. Employees working from home may unintentionally put business assets at risk when they access work related files on their personal devices and through personal wifi connections. Employers should inform workers that their personal devices probably don’t have the security systems that workplace devices have in place, such as anti-virus software, secure network connections and automatic online backup systems. They should therefore avoid downloading business materials onto their personal devices, hard drives, desktops or their own cloud system.

Here are some measures you can consider to strengthen your cybersecurity:

  • Use a virtual private network (VPN).
  • Make sure home routers are secured by changing passwords, installing firmware updates, restricting inbound and outbound traffic, using a high level of encryption and switching off WPS.
  • Don’t use public wifi, such as libraries or shopping centres.
  • Equip employees with up to date security software and manufacturer software updates.
  • Setting up multi factor authentication.
  • Prohibit employees from working in public spaces where others can see their screen.
  • Use encrypted communications.
  • Backup data regularly.

COVID-19 crisis: reviewing your super

While the coronavirus has been causing Australia’s economy to take a recessive turn due to reduced cash flow, there is still no reason to panic about your superannuation investments just yet.

However, if you are a middle-aged worker or a soon-to-be retiree, reviewing your superannuation investment strategy may prove helpful for other future unexpected economic problems. Here are some suggestions on how you can manage your super with a minimised risk strategy:

Build a cash buffer:
Cash will always be a conservative option when it comes to super allocation. For those approaching retirement, investing in cash is a low-return but also a low-risk strategy to protect your savings. Not only should middle-aged workers work towards investing their super funds in cash, but they should also build a physical cash buffer and save on the side without contributing the extra money into super funds. This way, in the off chance that something does go terribly wrong with your super funds, at least you have a cash buffer to help you out.

Financial planner/personal accountant:
If you can spare some extra money to do so, hiring a personal accountant or financial planner will always benefit you in the long run. Unlike super funds which invest your money into outlets deemed profitable by the company itself, a financial planner will help you invest your money into avenues that you personally prefer. While this may mean converting into a self-managed super fund, having sole control of your super funds is never a bad idea.

Pay attention to super fees:
The one thing that you as a super fund holder can choose is the fees you wish to pay a super fund for managing your super. Do your research before committing or switching to a super fund and focus on the fundamentals, such as fees. High fees will obviously negatively impact your retirement savings and while rates may increase at a seemingly minuscule rate, they will add up by the time you can take out your super. Always choose a super fund which is most aligned with your personal values and monetary goals and do adequate market research beforehand.