Blog

As we near the end of the year, it’s a common statement, ‘where has the year gone?” followed by ‘what have I achieved and, critically asking, what goals didn’t I meet?

Don’t stop there! Be bold! Reminisce, review, re-evaluate and be reinvigorated. Take action! Look back, look at the present, then look forward!  

For the Business owner this is a crucial exercise by providing insight into what actually happened, identifying the ‘wins and losses’ and using it as the opportunity to explore possibilities and untapped potential.

Smart Business Proprietors will be asking, ‘what are our results, what went well and what didn’t?’ What puzzles and problems did we face and solve?  The highs, lows, challenges, successes and setbacks. It’s the full gamut!

On a personal level take time to think about your Business values and what drives you. Are you aligned, in tune with your vision and goals, on track or are changes needed for the next year? Daunting!  You might be thinking this is all too hard to think about.

REFLECTION IS IMPORTANT! Keep reading to find out the benefits!

Reflecting, taking the time, and taking a step back, to review, analyse, evaluate and learn from our successes and failures is a productive and empowering exercise. We can take the lessons learned into the New Year as a foundation for future growth.

Embrace reflection with enthusiasm and energy!

Whether you are a solo operator or have employees reflecting on the year has benefits for all concerned. If you created goals at the start of the year revisit them and Business Goals should also be reviewed. The key is to look objectively at the outcomes.

Importantly, ‘reflection’ is not about judging, or criticism it is about learning from our experiences, doing more of what worked, making improvements to areas where needed and being excited about the future, what you can take and create!

Give kudos where due, to yourself or employees. Express gratitude and give recognition, as it brings out the best in most!  And learn from setbacks or mistakes, they provide opportunities for growth and self-improvement.

To help you get started here are some steps to follow.

List your successes. For example, Record sales, projects completed on time & budget, notable accomplishments/ achievements.

In drilling down ask these 4 key questions:

• What happened to make it a success
• Why do we think it happened- what contributed to the result

• What problems or opportunities did it present
• What action did we take 

In a Team setting ask members to share their experiences.  It’s essential all members participate and contribute to the activity. Ensure problems are heard, questions are encouraged and answered and challenges acknowledged.   

List setbacks, problems, failures. What product, project, or process didn’t work? What, why, how!

Drill down asking the same 4 questions

What next

• Ask, identify and explore what are the ‘game-changes’ for the coming year.
• With your Team, revisit the Business Mission, Vision and goals.
• Together, create the vision for the coming year.

Congratulations, you, and your Team are now better prepared and equipped to take on the coming year, keen to contribute, create and achieve mutual goals.

Now more than ever as our communications are driven by technology is there a need for connecting effectively.

What does that mean! 

It’s about actively, fully participating, being there engaging in exchanges of information, whether social, personal or work-related. Simply put, ‘crafting’ the ‘art of human connection’ has never been more critical.

And at a time when you could say we are experiencing challenges every day, with some testing our capabilities and vulnerabilities, meaningful connections are vital. It’s all about feelings, and when under continual pressure, it is easy to feel alone and disconnected. We need to connect and share experiences with others.

Read the research!

Being socially connected helps keep our, your mind and body in good ‘health’ and a healthy you influences the health of your Business and relationships.  Establishing and maintaining strong ties and bonds with those that are concerned with your health and happiness; trustworthy people are the essence of meaningful connections.  

What does meaningful connection look like?

• Going beyond the scripted dialogue, trivial talk! It’s about having authentic conversations, being genuine by sharing our stories and experiences.  It's about putting in the effort to build and improve relationships, our willingness to be involved, ’show up’ and engaging with empathy. These are the ingredients for better connections.
• Listening, actively listening is the key to authentic connections. Hear what others have to say, their opinions. Paying attention and being prepared to acknowledge others' points of view and beliefs and being respectful and understanding of our differences.  
• Eliminating distractions! It starts by putting down that phone! Yes, our ‘devices’ have a place in our business and personal lives, are entwined into our activities but human connectedness can't be replaced.  It is essential to our overall well-being.
• Interacting with impact! You don’t have to be the centre of attention but make the interaction memorable with the quality of the conversation. Give it value by being economical with your words, choosing those that have meaning and purpose, less can be best.   Apply this to any setting, formal or informal.

Crafting and Creating meaningful connections.

• Connecting with your Team requires the ‘real’ you to step forward, to be authentic in your communications.  Importantly, listen and support them during these difficult times. Being open and honest helps build trust and stronger bonds, and with that comes respect and loyalty.  Your staff want to know you have concerns and feelings the same as them.  It is also important for leaders to develop an environment that fosters and encourages a willingness to work together, where everyone can contribute, achieve and feel part of something.
• Building a strong Business community profile and connection has rewards and benefits. Customers return when they feel a real connection with you and your Team. There are simple ways, a smile, a friendly greeting and good service will have them choosing you over your competitors. Many customers want to do business with a Business they feel connected to and with, simply put, if they feel you are like them, you are trusted.
• Connecting with Community. Check out ‘what’s happening’ in your local area. Festivals, Markets, and Walking groups are some of the ways to meet and greet, to get to know your neighbours. Get to know your neighbours, give a friendly wave, maybe share some gardening tips! 
• Businesses, wherever you are located you are part of a ‘community’ . You can make a positive impact by connecting with your ‘neighbourhood’. Caring Businesses will take the opportunity to ‘reach-out, out, build connections and get involved.  Utilising resources there are simple ways, such as ‘investing’, contributing in some-way to local charity's and non-profit organisations. This can be by donation or ’effort’ in various activities, and events. Providing skill-based volunteering is another way to get involved.  Embedding employee volunteerism into your culture is another means for you and your Team to create rewarding and meaningful connections.

     5 Top Tips to crafting and creating your Meaningful Connections

1. Listen, ‘actively’ listen
2. Pay attention to cues, body language
3. Learn the art of conversation
4. Eliminate distractions
5. Be involved

Meaningful connections - we all need them, act now and create yours!

A potential cyber scam victim

Think it couldn’t, wouldn’t, won’t happen to you?

Think again!

According to a recent report we are all at risk of falling victim to SCAMMERS!

Research commissioned by the ACCC showed ‘96% of the population was exposed to scams in the five years to 2021.’

We all need to heed the warnings!

This message broadcast during Scams Awareness week,

‘scammers are a lot more versatile; they evolve quickly and their tactics are becoming increasingly sophisticated and unscrupulous!’

They are relentless in their endeavours and activities, and ever creative in the ways they target the unsuspecting public and Businesses; their mission, to get your money and personal information. 

Examples are more refined spins on their ‘popular’ online purchase and romance scams by incorporating cryptocurrencies or recent events into their messages, and some adopting newer technology'

Scammers tactics include the following;

• Over 45s are targeted with remote access attacks. Criminals posing as tech support to gain access to a victim's device under the guise of performing services.
• Younger people don’t escape. They are targeted with employment and investment scams, for example, pyramid schemes and fake cryptocurrency offers.
• With recent high profile data breaches criminals are posing as government departments and Businesses to carry out identity theft.
• ‘Mum and Dad’ scams targeting unsuspecting parents. Scammers pose as family members asking for help, send some money!
• FREE and GIVEAWAYS - don’t fall for the word ‘free’ when it comes to offers of investment, goods or job offers!
• Scammers say there is a problem or a prize. They can help! Give them your details! Problems you owe money, you are in trouble with a Government agency or there is a family emergency. Prizes- lottery, raffles – send personal information to claim your winnings.

The SCAMS awareness campaign encourages the public to learn about and look out for common scam signs.

The ACCC aims to empower people, by informing the public through raising awareness and providing education, essential tools in helping combat cyber threats.  With a better understanding they are more able to protect themselves and look for tell-tale indicators.   

Action:

• If you think you have been scammed, contact your financial institution immediately.
• Report incidences to SCAMWATCH - scamwatch.gov.au

The Latest scams

With Christmas shopping and mega sales happening scammers are out there just waiting to get their next victim! DON’T let it be you! ! Think before you click or reply!

READ on to help yourself to be better informed and more vigilant

• Shopping online, be aware of ‘fake’ Online shops.
• A newer version involves the use of social media platforms to fake online stores. The store opens for a brief time selling fake jewellery or branded clothing.  After some sales, the stores disappear.
• Watch out for ‘fake’ websites that look like the real thing, often using stolen designs and credentials.
• Methods of payment. The biggest indicator that a retail website is scam is the method payment. If asked for payment by wire transfer, money order, or pre-paid money card, if you do so, unlikely you will receive your bought goods.

Texts:

Phishing scams that use text messages as a way of gaining YOUR personal and financial information.

More scams, check these!

• Messages claiming to be major retailers, examples Big W, Kmart and JB HiFi.
• Texts claiming a loan has been approved and asking you to call a number immediately.
• Messages from MyGov or Medicare advising you have a refund due.
• Texts, emails claiming to be the ATO. Send me your file number! No!
• Text you have WON, a car, major prize or holiday! Really! Sounds too good to be true!

Key takeaways - Do’s and Don’ts

• Do think before you click or reply
• Do monitor your accounts
• Do contact your Bank immediately if concerned
• Do change your passwords
• Do think twice before sharing personal details
• Do report suspicious activity

     X  Don’t give financial or personal information in response to a request that you’re not       expecting. Legitimate, real organisations won’t call, email or text to ask for your personal details, such as social security number, tax file, credit card or bank account.

     X  Don’t call the number they gave you or from a caller ID

 Be smart! Be Alert!

Tis the season to be jolly, celebrations and giving gifts!

As an Employer, you might be thinking about rewarding your staff with gifts and celebrating by holding a Christmas party.

You might also be wondering if giving gifts and providing entertainment has other implications, such as fringe benefits (FBT) and tax implications.

This will depend on the following, whether the gift is:

• An entertainment or non-entertainment gift
• And costs more or less than $300

Read on to find out more!

The ATO advises ‘where a Christmas gift is provided to an employee at a Christmas function that is also provided by the Employer, whether the gift is an exempt benefit needs to be considered separately from the function’.

‘Hampers or presents given to an Employee at a Christmas function are not considered to be the provision of entertainment. As these are not treated as tax-exempt body entertainment benefits, you can consider the minor benefit exemption. For example, a hamper given to each of your employees at a Christmas function – that meets the conditions of the minor benefits exemption rule and is less than $300 – will not attract any FBT’

Giving Gifts to your Clients

Giving your clients gifts at the end of the year is a way of saying ‘thank you’ may help you retain ‘high’ value clients and ultimately generate future income.

But not all Christmas festive gifts are tax deductible! The following are not.

If the gift or thank you is classed as entertainment then No, the expense is not tax deductible.

Under Tax Determination (TD 94/55) entertainment usually relates to immediate consumption of the item of property. Some examples are;

• hot meals
• glasses of champagne
• theatre tickets
• holiday accommodation
• hired entertainers

Some examples you can claim include;

• Bottled spirits
• Cartons, or bottles of beer or wine
• Computers
• Some gift vouchers

Tip: Keep in mind that if a benefit is exempt from FBT, you typically cannot claim it as an income tax deduction, nor claim any GST credits. 

Unsure what this all means, contact Blackburn Accounting we will unwrap and help you understand the gifting tax ‘Rules, fringe benefits tax and Christmas parties.

The Christmas Party

According to the ATO, ‘there is no separate FBT category for Christmas parties and you may encounter different circumstances when providing these events to your staff. The cost of providing a Christmas party is income tax deductible only to the extent that it is subject to FBT. Therefore, any costs that are exempt from FBT (that is, exempt minor benefits and exempt property benefits) cannot be claimed as an income tax deduction.’ The costs of entertaining clients are not subject to FBT and are not income tax deductible.’

‘A Christmas party provided to current employees on your Business premises or worksite on a working day may be an exempt benefit. The costs of associates attending the Christmas party is not exempt, unless it is a minor benefit.’

Example
A small manufacturing company decides to have a party on its business premises on a working day before Christmas. The company provides food, beer and wine.

* Where the benefits are indicated as qualifying for the minor benefits exemption, it is on the basis that the necessary conditions have been satisfied.

Christmas party held off business premises

The costs associated with Christmas parties held off your business premises (for example, a restaurant) will give rise to a taxable fringe benefit for employees and their associates unless the benefits are exempt minor benefits.

Example
Another company decides to hold its Christmas function at a restaurant on a working day before Christmas and provides meals, drinks and entertainment. To find out more,

The ATO website provides details and examples;

 https://www.ato.gov.au/general/fringe-benefits-tax-(fbt)/in-detail/fbt-and-christmas-parties/

Entertainment expenses are not tax deductible unless they are subject to FBT. This means expenses incurred in providing a Christmas party are not generally deductible where the minor benefit FBT exemption applies.