October 2012

It is hard to believe the 1st quarter of the new financial year is already over!! With only two months until Christmas.... where has the year gone??? Don't forget September Quarter Activity Statements are due soon - click here for upcoming due dates.

This month our feature article Things are Choppy!! looks at the economic slowdown and highlights the importance for business operators to think about their risk management strategies.

Don't forget to register for our Secure Client Area and check out our first Business of the Month. Each month we will be partnering with one of our clients, giving them the chance to promote their business by setting up a display in the Reception area of our office. We will also feature our Business of the Month in our newsletter. This is a great way to advertise your business at no cost. If you are interested in featuring as our Business of the Month, please give us a call. 

Secure Client Area

Don't forget as part of our new website interactive services, you can register for access to our Secure Client Area. This convenient service enables you to:
           

• log into your own personalised secure area to access documents, files and financial reports
• access your secure area anywhere via the internet
• send us files and documents in a safe, secure environment
• easily upload large files you wouldn't be able to otherwise send by email - including QuickBooks and MYOB files

To register for our secure area Client Login, click here.

Feature Article - Things are Choppy!!

The second quarter of the 2012/13 financial year has begun with the Reserve Bank lowering the official cash rate by 0.25% to 3.25% in response to a slowing of economic activity in some parts of Australia.

The government obviously has some concerns with the slowing down of economic activity because it has brought forward its mid-year economic review and is reported to have embarked on a serious review of a wide range of government programs in an attempt to reduce expenditure or defer expenditure to a later time. There has been a 'pause' in approval for some government grant programs in an attempt to defer expenditure to a later time.

The mining industry is facing changing economic activity with decreased economic conditions in China, contributing to lower prices for many mineral products.

Some economists are forecasting a significant improvement in economic activity by mid 2013, which could lead to interest rates rising again. Other economists have a contrary view in that they're not anticipating improved business conditions in the next 12 months.

Debtors' days outstanding (as advised by Dunn & Bradstreet) is approximately 54 days and the Australian Tax Office has stated that approximately $9B is owed by small businesses on Business Activity Statements. These figures confirm that many segments of businesses are experiencing difficult cash flow situations. Banks are closely monitoring loan performance by their customers.

All of this highlights the necessity for business operators to closely monitor their business operations including:     

• Cashflow management with close attention to debtors, stock, work in progress.
• Regular monitoring of the KPIs (Key Performance Indicators) applicable to your business as compared to Budgets.
• Preparing regular financial accounts to monitor actual performance.

It's probably a good time to think about the effect that changing interest rates might have on your business. If you're currently operating with a variable rate, perhaps you should consider locking in a fixed rate.

It's a good time to consider risk management strategies and the variables affecting your business including:

• debtors' days outstanding
• interest rates – variable or fixed?
• business performance
• bank covenant requirements



Times are certainly "choppy" for many businesses. If you are wanting to monitor and improve business performance, grow your business, and position yourself for the future, give us a call. 

Claim the tax-free threshold with more than one employer

With the increase in the tax-free threshold from $6,000 to $18,200 from 1 July 2012, the Tax Office is reminding taxpayers who receive income from more than one employer they are entitled to claim the tax-free threshold for more than one payer at the same time.

Keep in mind if you are considering this strategy, you must be certain your taxable income for the year in question will be no more than $18,200. For more information click here.

Business of the month

Our October business of the month is Wandal Hair & Beauty. Their expert, friendly team have the training and experience to attend to your every need from your head to your toes. There is simply no better way to change your look and style than by getting a new cut and colour with their experienced, passionate and professional team who know what they are doing. Maxwell & Cameron in conjunction with Wandal Hair & Beauty have the following special offers for our valued clients:

For the Ladies
Complimentary Treatment & Blow Wave with any Cut or Colour Service 
Complimentary Eyebrow Wax & 20% off any Beauty Service

For the Gentlemen
$15 Hair Cuts - includes Shampoo, Scalp Massage & Facial Hair Trim

These special offers are valid until midday 6 November 2012.

Kind Regards

www.maxcamaccountants.com.au

Upcoming Office Closures

Please note our office will be closed during the following periods:

STAFF TRAINING
Tuesday 30 October from 1.00pm to 5.00pm
           
CHRISTMAS/NEW YEAR 
Friday 21 December from 1.00pm to
Monday 7 January 2013 at 8.30am

We apologise for any inconvenience caused.

To register for our secure area Client Login, click here.

You can keep up to date with important accounting and business dates and deadlines. More...

The Tax Facts section where you can learn more about tax requirements within Australia. More... 

Try out our new online calculators. More... 

You can also organise an appointment with one of our staff via our special online appointment form. This is particularly useful if you struggle to find the time during normal business hours to phone. Click here to book an appointment.
 

Our first podcast.....Welcome to Maxwell & Cameron

What to expect financially....when you are expecting