In the world of business, the age-old adage "You need to spend money to make money" rings true (generally). Yet, without proper financial planning and budgeting, companies risk overspending, accumulating debt, and jeopardising their financial goals. A well-structured budget serves as a compass, ensuring that businesses allocate resources efficiently, remain accountable, and steer clear of financial turbulence.

For business owners, the importance of crafting a strategic budget cannot be overstated. Here, we delve into the significant advantages of establishing a robust budget for your business:

1. Achieving Financial Goals

Every business owner harbours dreams of growth and expansion.However, without effective financial planning, these aspirations can remain out of reach. A budget serves as the roadmap to your financial objectives, guiding you through resource allocation, cost-saving strategies, and expenditure control. Employing a 3-way model – incorporating budget, forecasts, and cashflow – provides a holistic framework for efficient business planning and management.

2. Prioritising Expenses

Throughout your business journey, there will be periods where specific activities demand prioritisation. However, limited cash flow may hinder such endeavours. By integrating forecasts into your budget, you gain a clearer understanding of where your resources are best deployed. This insight enables you to optimise resource allocation, redistributing funds from less crucial areas to high-priority projects. To achieve this, always consider both your budget and forecast within your financial planning.

3. Effective Debt Management

Debt is an inescapable facet of most businesses, particularly startups and SMBs or SMEs grappling with uneven cash flows. It's easy to overextend credit and accumulate debt in pursuit of growth opportunities.Efficient cash flow management is the linchpin for effective debt management.Your budget should account for inflows and outflows, ensuring you meet payment deadlines without incurring late penalties or additional interest. Clear payment plans in your budget help proactively manage cash flow and honour financial obligations.

4. Preparing for Emergencies

While most expenses are foreseeable, external factors such as economic downturns or unforeseen crises can severely impact businesses. SMBs / SMEs, in particular, are vulnerable, often resorting to borrowing in dire circumstances. A well-structured budget allocates funds to an emergency fund, safeguarding your business from reactive resource reallocation during times of instability. This financial safety net provides the flexibility needed to maintain operations during challenging periods.

5. Informed Financial Decision-Making

Business owners frequently grapple with pivotal decisions that can shape their company's destiny. When it comes to allocating financial resources, having comprehensive information at your disposal is paramount. A3-way financial planning model empowers you to assess the consequences of your choices, from their impact on debt obligations to potential resource redirection from high-priority activities. For instance, deferring bonus payments to the next fiscal year can both reward employees and alleviate tax liability.

The Real Power of Effective Budgeting

Indeed, spending is an integral part of business growth.However, budgeting, along with forecasting and cash flow management, ensures that your expenditure is strategic, timely, and well-directed. Your business can only expand as far as its resources allow, and effective budgeting keeps the engines running smoothly while keeping debt in check.

If you require guidance in budgeting for your business, the Attune Advisory team are perfectly placed to help you formulate and implement a robust financial strategy and budget that is tailored to your business’ unique circumstances.

For insights into how we can assist you with your budget and strategy, reach out to us today on 1300 866 113 or send us an email to start the conversation– your financial success awaits!

‍

As the financial year progresses, it's crucial for both individuals and businesses to stay on top of their tax obligations. To assist you in keeping track of these vital dates and ensure you meet your tax lodgement requirements, we have compiled a comprehensive list of key October deadlines (provided by the Australian Tax Office (ATO)).
 
And remember, even though the first deadline is just weeks away, it’s not too late to get tailored, strategic tax advice and lodgement assistance with the Attune team. Now, let’s dive in...

October 21, 2023

1. PAYG Instalment Notice (Form N)‍

• Pay your annual PAYG instalment notice.
• Lodge only if you need to vary the instalment amount or use the rate method to calculate the instalment.

‍2. PAYG Instalment Activity Statement‍

• Lodge and pay quarter 1, 2023–24 PAYG instalment activity statement if you are the head company of consolidated groups.

‍3. Monthly Business Activity Statement

• Lodge and pay your September 2023 monthly business activity statement.

October 28, 2023

1. Activity Statement

• Lodge and pay quarter 1, 2023–24 activity statement if you choose to receive and lodge by paper and are not an active Single Touch Payroll (STP) reporter.
• Pay your quarter 1, 2023–24 instalment notice (form R, S, or T).
• Lodge the notice only if you need to vary the instalment amount.

2. Super Guarantee Contributions

• ‍‍Ensure you make super guarantee contributions for quarter 1, 2023–24 to funds by this date.
  Note: Employers failing to pay the minimum super contributions for quarter 1 by this date must pay the super guarantee charge and lodge a Superannuation Guarantee Charge statement by 28 November 2023.

‍3. Annual Activity Statement for TFN Withholding‍

• Lodge and pay the annual activity statement for TFN withholding for closely held trusts where a trustee withheld amounts from payments to beneficiaries during the 2022–23 income year.

October 31, 2023

1. Client List Update‍

• This is the final date to add new clients to your client list to ensure their 2023 tax return is covered by the lodgement program.
  Note: The lodgement program is a concession provided to registered agents, and the ATO may request documents to be lodged earlier than the lodgement program due dates.

2. Tax Returns for All Entities‍

• Lodge tax returns for all entities if one or more prior year returns were outstanding as at 30 June 2023.‍

Notes:‍

1. This means all prior year returns must be lodged, not just the immediate prior year.
2. If all outstanding prior year returns have been lodged by 31 October 2023, the lodgement program due dates will apply to the 2023 tax return.
3. Self-managed superannuation funds (SMSFs) in this category must lodge their complete Self-managed superannuation fund annual return by this date.
   ‍

3. Tax Returns for Prosecuted Entities‍

• Lodge a tax return for all entities prosecuted for non-lodgement of prior year returns and advised of a lodgement due date of 31 October 2023.

Notes:‍

1. Some prosecuted clients may have a different lodgement due date – please refer to the letter you received for the applicable due date.
2. Payment (if required) for individuals and trusts in this category is due as advised in their notice of assessment.
3. Payment (if required) for companies and super funds in this category is due on 1 December 2023.
4. SMSFs in this category must lodge their complete Self-managed superannuation fund annual return by this date.

4. Reports and Returns
‍

• Lodge your Annual Investment Income Report (AIIR).
• Lodge your Departing Australia Superannuation Payments (DASP) annual report.
• Lodge your Franking account tax return when both the: Return is a disclosure only (no amount payable); Taxpayer is a 30 June balancer.
  ‍
• Lodge your PAYG withholding annual report no ABN withholding (NAT 3448).
• Lodge your PAYG withholding from interest, dividend, and royalty payments paid to non-residents – annual report (NAT 7187). This report advises amounts withheld from payments to foreign residents for: Interest and unfranked dividend payments that are not reported on an Annual Investment Income Report (AIIR).
  Royalty payments.

• Lodge your PAYG withholding annual report – payments to foreign residents (NAT 12413). This report advises amounts withheld from payments to foreign residents for: Entertainment and sports activities; Construction and related activities; Arranging casino gaming junket activities.
  ‍
• Lodge your lost members report for the period 1 January – 30 June 2023.
• Lodge your TFN report for closely held trusts for TFNs quoted to a trustee by beneficiaries in quarter 1, 2023–24.
  ‍

By adhering to these important tax lodgement deadlines, you can ensure compliance with the ATO and avoid potential penalties. If you have any questions or require assistance with your tax lodgement, don't hesitate to reach out to the Attune Advisory team via 1300 866 113 or by sending us an email. We're here to guide you through the processes and offer tailored, strategic advice to help you build your financial future.

Navigating the intricate world of trusts in Australia can feel like navigating a maze, with one of the pivotal decisions being the choice between an Individual Trustee or a Corporate Trustee. The stakes are high, and making the wrong choice can have significant consequences. At Attune Advisory, we understand the complexities and pressures that small and medium-sized business owners can face, so below, we dissect the differences between a Corporate Trustee and anIndividual Trustee and shed light on why a Corporate Trustee could be a game-changer for your structure.

Corporate Trustee vs.Individual Trustee: Unravelling the Differences

The Basics

To put it simply, an Individual Trustee is a person, while aCorporate Trustee is a company established specifically to act as a trustee.While both options have their merits, your choice should revolve around your long-term goals and the level of control you want to maintain. Discussing your long-term goals with our strategic advisors can make all the difference to how you create your structure.

Why It Matters

Your choice between a Corporate Trustee and an Individual Trustee has a profound impact on how you manage trust assets, personal liability, and even succession planning. Small oversights at this stage can lead to significant challenges in the future, making it a decision that should be carefully considered – and that’s where we can help.

Advantages of a CorporateTrustee

Liability and Protection

A Corporate Trustee offers inherent limited liability. What does this mean for you? It creates a protective barrier between your trust's debts and your personal assets. Moreover, the corporate structure separates the legal ownership of trust assets from the beneficial ownership, safeguarding trust assets from your personal debts. In essence, it's a two-way protective shield, reducing risks and uncertainties.

Succession Planning

While no one enjoys contemplating it, succession planning is considerably more straightforward with a Corporate Trustee. Ownership can be transferred without altering the trust deed, ensuring a seamless process that saves you both time and money.

Why a Corporate Trustee MakesFinancial Sense

Individual trustees often necessitate separate asset titles foreach trust they oversee. In contrast, Corporate Trustees streamline this process, potentially saving you a substantial sum in stamp duty and other transactional costs over time.

Frequently Asked Questions

What's the Initial Cost Comparison?

At first glance, creating an Individual Trustee may appear cheaper, but a Corporate Trustee often proves to be more cost-effective in the long run, considering the benefits it offers.

How Difficult is it toTransition from an Individual to a Corporate Trustee?

While it's possible, this transition involves paperwork, time, and financial expenses. It's usually advisable to make the right choice up front to avoid complications later – once again, it’s best to speak with the Attune team first up to help with making the right choice that suits your specific situation.

What About Tax Implications?

It's important to note that the structure of the trustee does not affect the tax paid by the trust beneficiaries.

We’re Your Path to aTrustworthy Trust

Are you ready to delve deeper into why a Corporate Trustee maybe the optimal choice for your trust structure? We're here to guide you every step of the way with tailored, strategic advice that works for you. You can book an appointment via email with the Attune team or reach out to us at 1300866 113.

‍

As business luminaries like Peter Drucker, RichardBranson, and countless others have emphasised, cash flow is the lifeblood of any enterprise.

At Attune Advisory, we understand that cash flow management is essential for the survival and prosperity of small businesses and in a world where unforeseen challenges can arise at any moment, effective cash flow management becomes paramount. Let's delve into our tips to help you navigate the intricacies of managing your cash flow with finesse.

Creating a Clear Path with Forecasting 

The first step toward mastering your cash flow is to create a detailed cash flow forecast. This strategic tool provides an overview of your anticipated income and expenses over a defined period, often on a monthly or quarterly basis. By anticipating potential cash shortfalls or surpluses, you gain the power to take pre-emptive actions. Whether it's securing short-term funding or establishing payment arrangements with suppliers during tight periods, a cash flow forecast empowers you to navigate through financial uncertainties with confidence. 

The Power of Vigilance and Regular Monitoring 

Keeping your finger on the pulse of your cash flow requires robust accounting systems and vigilance. Choose accounting programs that align with your needs and preferences, and stay proactive by regularly monitoring your cash flow, ideally at least on a monthly basis. By routinely reviewing your cash flow statement and comparing it to your forecast, you can spot discrepancies and potential issues early on, allowing you to address them proactively.

Accelerating Cash Inflows through a Strategic Approach

Implementing strategies to accelerate cash inflows can significantly bolster your financial position. Consider offering discounts for early payments or incentives to customers who pay upfront. Timely invoicing and diligent follow-up on late payments can make a substantial difference in maintaining a healthy cash flow.

Our tailored approach to helping you build strategies for your business means the Attune team is perfectly placed to provide guidance on what options might work best for bolstering your cash-flow situation. 

Taming the Outflow

Controlling your cash outflows is equally essential.Regularly reassess your expenses to identify areas where savings can be achieved. Negotiate improved payment terms with suppliers, explore opportunities to reduce overhead costs, and eliminate unnecessary expenditures.It's crucial to remember that expenses can accumulate over time and easily begin to run away from you, and a prudent review can lead to cost savings and improved cash flow.

Building Resilience

A critical aspect of managing cash flow is establishing an emergency fund or cash reserve. This fund acts as a safety net to handle unexpected expenses or periods of low cash flow. Aim to set aside a percentage of your revenue each month to gradually build up this reserve, providing you with a cushion during turbulent times.

Once again, with some help building your overall strategy, we can offer guidance on how your emergency fund can be structured.

Strategic Inventory Management

If your business is product based, avoid tying up excessive capital in inventory. Optimise your inventory levels by accurately forecasting demand and regularly reviewing and adjusting your inventory orders. Strive for an inventory turnover rate that aligns with your supplier payment terms, enabling you to maximise cash flow efficiency.

For service-based businesses it’s not too far different, ensure you keep a close eye on your schedule and bookings alongside your expenses. 

Collaborative Partnerships 

We’ve said it already, but do what you can to forge collaborate relationships with your suppliers and work together to negotiate favourable payment terms. Extended payment periods or vendor financing options can provide the flexibility needed to preserve cash flow while fulfilling your obligations.

Efficient Receivables Management

Proactive management of accounts receivable is crucial. Similar to providing options for discounts here on-time or early payments are made, clearly define payment terms, send timely reminders for overdue invoices, and establish a systematic approach for following up on late payments. Building strong relationships and maintaining courteous, consistent communication can work wonders in securing timely payments. 

Exploring Financial Options

In times of tight cash flow, consider exploring financing options such as short-term loans, overdrafts and lines of credit, or invoice factoring. However, exercise caution and assess associated costs and risks before proceeding with these alternatives.

As with anything relating to your finance or taxation position, we suggest speaking with the Attune team before proceeding far with lending options and other potentially damaging finance options.  

Continual Adaptation 

As your business evolves, regularly review and update your cash flow forecast. Stay agile by adjusting projections based on new information, shifts in market dynamics, and changes in your business strategy.

Being in touch regularly with our team can ensure we stay abreast of what your business and indeed the strategy that supports your cashflow

Expert Assistance: Attune Advisory’s Commitment

At Attune Advisory, we understand the pivotal role of cashflow in your business's success. While cash flow management can be complex, our experts are here to provide you with valuable insights, guidance, and support.Let us partner with you to ensure your business thrives through effective cashflow management and forecasting. Reach out to Attune Advisory today to explore how we can assist you on your journey to financial prosperity.Call us on 1300 866 113 today to start the conversation, you won’t regret it.

‍