Business awards

Winning a business award can bring about a lot of opportunities for your business. It can be a huge marketing boost and can also help to generate industry recognition, which may help you to attract new and exciting business partners. Employee pride is another major benefit of winning a business award, and it may well help you to attract and retain talent in the future.

There are many business awards that you may be eligible to apply for, but you should always carefully research the reputation of the administering institution. There are several business awards that have attracted criticisms for being non-selective in choosing their finalists, all for the purpose of raising revenue from ticket sales.

As applying for a business award can be an onerous task, you should also carefully consider which award categories you are the most likely to succeed in, as well as which ones are the most closely aligned with your business aims. While application process itself may seem tedious, you should strive to view it as an exciting opportunity for you to examine your business from an overarching perspective, considering your long-term performance, achievements and potential for improvement.

Most award applications require a written submission, typically answering a series of questions and/or addressing criteria. It is advisable to illustrate any claims you make with a concrete example of your achievements. The inclusion of testimonials and relevant case studies will go a long way in making your submission stand out.

The importance of reference checks

A recent high-profile scandal, involving Myer executive recruit Andrew Flanagan and his fictionalised CV, has drawn attention to the importance of checking the references of prospective employees. Mr. Flanagan was dismissed on his first day after it was revealed that his impressive career history was almost entirely fabricated.

The first step you should take when checking references is to confirm the concrete facts presented on the prospective employee’s resume, for example dates of employment, job title, level of responsibility and level of reporting. Wherever it is possible, you should try to get the referee to give you concrete examples to back up their claims about the employee. It can also be helpful to ask them to provide examples of the employee’s performance and behaviour in stressful situations.You should contact multiple referees whenever possible, and attempt to construct an image of any patterns of behaviour that the prospective employee might display.

Be aware that many referees will be cautious in giving their responses, especially to questions that are primarily subjective. Many people will also be reluctant to devote a significant amount of time to answering your questions, so you should carefully consider which questions are the most crucial to shaping your opinion, and be time efficient in the way you present them.

Etiquette tips for business lunches

Having lunch with a potential client, investor or employee can be a great way to make a good impression while taking care of business matters at the same time. However, there are a lot of etiquette considerations, some of them extremely subtle, that you should be aware of. Here are some tips for conducting yourself at a business lunch:

-When extending the invitation you should always offer your guest a couple of different options for time and location

-Arrive a little early to make sure that your table isn’t in an overly crowded or busy area; this can inhibit productive conversations

-Always allow your guest to order first so that your choices don’t impede their decision

-Either organise payment prior to the lunch or be quick and confident in laying down your card

-Refrain from checking your phone throughout the meal

Getting your product range right

As businesses grow, they tend to add more products and services to their range. Research demonstrates that this can lead to reduced sales as customers often become overwhelmed. Creating products with only minor points of difference can also be annoying for customers, as they have to spend time trying to work out which is the right choice. It is businesses’ responsibility to select only the best products to offer customers.

Limiting your range of products/services also demonstrates a degree of confidence in the quality of your products. Not only are customers less likely to purchase a product from an unnecessarily extensive range, but they will also be less satisfied when they do. A customer who is less satisfied is also less likely to purchase the same product again in the future. Additionally, continuing to offer out of date products is not good for your business’s image and brand.

Making your office more productive

It is incredible the impact that the physical characteristics of an office can have upon workplace productivity. Elements such as colour schemes and office layout, which may seem inconsequential, can have tremendous impacts on productivity. Here are three things to consider when redecorating your office space:

Lighting: Natural light has a positive effect on people’s mood and tends to improve their work. Obviously letting in more natural light is not an option for most businesses, but what you can do is rearrange your office to maximise your employees’ exposure to natural light.

Colour: While there has been some of contradictory research into the psychological effects of colour, one thing that people seem to agree on is the stimulating effect of bright and saturated colours. Whenever possible, choose vivid colours for office supplies and furniture.

Plant life: A few nice plants around the office will help to brighten the mood and increase concentration levels. A small pot plant on each desk can be a great way to show employees your appreciation.

Audit activity on the rise

The ATO’s audit activity is on the rise with key areas including payroll tax and GST.

Payroll tax 

Regulators are looking for those who understate or avoid their payroll tax obligations. A few of the common problem areas are:

-contractors

-grouping provisions

-interstate wages

-miscalculating the payroll tax threshold

GST

A business that has a GST refund due is likely to be audited. The trigger for a GST audit is often large or abnormal  refunds, however, it can also be as simple as not reconciling the quarterly activity statements.

The Data and Payment Standard

From 3 November 2014, employers with 20 or more employees will begin using the new Data and Payment Standard, also known as SuperStream, to make superannuation contributions to their employees.

The Data and Payment Standard will streamline the process for many employers when making contributions. It provides a simpler, consistent method of preparing contributions. In most cases, it will provide a single channel for interacting with multiple super funds.

Employers will make super contributions electronically. The contribution data is sent electronically in message format to the fund and the contribution payment is sent electronically through the banking system.

It will also reduce payment processing costs as the manual methods have been removed. Super funds and its members will also benefit from processing contributions faster and improved data quality.

The ultimate goal is to lead to better retirement outcomes for all Australians including:

-reduced administration costs

-higher lifetime savings

-fewer lost accounts

The data message and payment will be linked by a payment reference number which will enable reconciliation at the receiving fund.

Most of the key components required for this change, including e-commerce infrastructure and software solutions, are currently being developed, trialled and implemented.

Difficult conversations in the workplace

It is understandable why employers often avoid having difficult conversations with their employees as it can be an awkward and time consuming process.

The following are some potential legal risks that can arise from avoiding difficult conversations in the workplace:

Anti-bullying claims

New anti-bullying laws came into power on 1 January 2014 which have given workers experiencing bullying a new sphere of protection.

Raising underperformance or misconduct issues with employees at an early stage can help to reduce the chances of accusations of workplace bullying.

Unfair dismissal claims

A key element of procedural fairness is warning an employee about their unsatisfactory workplace performance and giving them a genuine opportunity to respond. Skipping this step may be found to be unfair by the Fair Work Commission.

Also, in the case of a genuine redundancy, an employer must be able to show that it has met any obligations it had under a modern award or enterprise agreement.

Adverse action claims

Having a conversation with an employee about their underperformance or misconduct can help the employee understand the reasons for decisions that may adversely affect them.

This will reduce the risk that employees are likely to suspect and argue that the decision was made for a prohibited reason, such as on a discriminatory ground.

Common mistakes at year-end

Businesses should be aware of their responsibilities at the year-end.

Businesses that are unorganised, or make mistakes in their tax return, can lose out on significant tax savings, as well as find themselves liable for penalties.

Below is some common mistakes that small businesses often make at year-end:

Paying superannuation

A job that is often forgotten by employers is superannuation contributions.  Super is payable 28 days after the end of the quarter. However, it is important to remember, that to claim a deduction for the super contribution the employer must have made the contribution before June 30.

Not paying super by the due date will also lead to a penalty imposed by the ATO.

Lodging group certificates

A common mistake made by business owners is issuing group certificates late and incorrectly reporting the figures.

Employers are required to issue their payment summaries to their employees by July 14 and to the ATO by August 14.

ATO benchmarking

Small business benchmarks are financial ratios that have been developed by the ATO to help compare the performance of similar businesses in an industry. Benchmarks allow the ATO to identify businesses that may be avoiding their tax obligations.

Businesses should take a look at their financials and review their management accounts before June 30. They should be focusing on any unusual large amounts that have been reported as this could be an indicator of an accounting error, or a more serious problem.

Guide to successful business borrowing

It is important for businesses to maintain a good relationship with their bank in order to safeguard their future access to funds.

1. Prepare a strong business plan.

This is one of the first steps to ensure that the bank will identify it as a low risk business and therefore someone they are willing to give funds to. A solid business plan highlights the viability of the business, information about the experience and success of the owners and managers, expenses which the loan will cover,as well as detailed sales expectations.

2. Establishing a personal relationship.

Over time, an owner establishes key contacts within their bank that are familiar with their business and financial needs. Keeping these contacts informed of any changes to the business or cash flow projections before it comes as a surprise will build trust between the bank and the business.

3. Knowing your business inside out.

By keeping themselves updated of their own financial status, by obtaining credit reports and public records, business owners will know what research the banks will obtain when deciding on the amount, if any, to loan to the business.

4. Learn the banking language.

Understanding banking terms such as credit ratings, cost of capital and other financial drivers will place business owners in a strong position when negotiating the terms of their loans.

5. Keep the adviser informed.

Financial advisers are there to advise and will have an intimate knowledge of bank processes. Keeping them posted of any plans or changes will allow them to better advise the business on the best course of action, and ensure that the business will continue to prosper.