MONTHLY NEWSLETTER – JULY 2023

Newsletter – July 2023

New Year New Me – The best thing about the finance industry is you get two new years, albeit one slightly less exciting than the other (financial year is obviously the most exciting….for us anyway).

The team here are raring to kick off FY24 with a bang and looking forward to the fresh start. We spent 30 June throwing axes (at a board, not each other). Overall winner was Rob and it’s definitely harder than it looks! Some might say Joanne is the real winner spending 4 weeks in Germany though, lucky her.

We’re scheduling in FY23 tax work now and will be in touch when it’s time to complete them. However, feel free to reach out if you’re ready and we can bring that forward.

Now is also a great time to consider setting your business goals, budgets and plan for the next year. Get in touch with our team if you would like to work through these to start the year off strong.

In Focus – Virtual CFO

Ever wondered what a CFO does? A CFO, or Chief Financial Officer, is responsible for managing an organisation’s financial activities, including; strategic planning, financial reporting, risk management, capital management, investor relations, and team leadership. They play a critical role in ensuring the financial health and success of the company.

Having a gun CFO can be highly beneficial to a business, particularly as it grows and scales. The downside? Cost. Employing a full time or part time CFO directly can be costly as they’re hard to come by, in demand and their specialist knowledge attracts the appropriate price tag. Many businesses, particularly growing, often need these services but the barrier to entry is what stalls it.

The middle ground? A Virtual CFO. A Virtual CFO will utilise their in house resources and provide a premium service at a lower price and touch point than a full time CFO.

This is particularly beneficial for small to mid-sized businesses that may not require a full-time, in-house CFO but still need professional financial guidance to drive their success

The way we work

At the very least, monthly touch points/catch ups to review results and plan for the coming months, systems review and integrations, strategic decision sounding board and more. We also offer full finance department function, package them all up and you have a strong finance team to help your business grow and succeed. We’re with you every step of the way and have multiple accountants across your business so you’re never left in the dark.

Essentially the outsourced finance department. We spend time in your books on a day-to-day basis, keeping them complete and up to date. We can also manage payments, debtors, super and BAS/IAS lodgements. This ensures you’re able to review your numbers and be confident in your decision making. On top of this, our CFO service can assist in budgeting, cash flow, strategic decision making and more.

Get in touch if you would like to discuss these options further, we can tailor the package to suit your needs.

We are a business proudly built on referrals.  If you know a business owner that would benefit from a fresh take on their accounting, tax and advice needs, please send them our way!

Your upcoming tax calendar for July and August

With the start of the new tax year upon us, please do not forget about your final tax obligations for
2023. Here is a list of key tax dates for July and August 2023.

5 challenges for small business – and how to beat them!

Want to know how to beat the most common business challenges?

We’ve highlighted five common challenges and the simple ways to overcome them.

Keeping your business cash liquid – the difference between cashflow and profit

Do you know the difference between profits and cash flow? We’ll help you understand why cash is king and how to improve your cash flow management AND profitability

Why Your 2023 Tax Refund May Be Less Than Expected

We know many of our clients look forward to tax time as this usually means refunds, extra money on the mortgage, top up savings, used for new equipment or even going towards a holiday.

With that in mind, we thought it prudent to make you aware the refund you’re expecting may be lower than previous years. This is due to the Low and Middle Income Tax Offset ceasing from the 2022 year.

The Low and Middle Income Offset was introduced as part of the government’s efforts to provide tax relief to low and middle-income earners. It provided a tax offset of up to $1,500 for individuals with a taxable income between $48,000 and $90,000. Additionally, for taxpayers earning less than $48,000, the offset gradually reduced at a rate of 3 cents per dollar until it reached a minimum offset of $255.

The government believes that the LMITO has served its purpose in providing temporary relief to low and middle-income earners. As the economy has recovered and employment rates have improved, the need for this offset has diminished. The government’s focus has shifted towards other policy priorities, such as supporting businesses and stimulating economic growth all the while attempting to curb inflation.

If you have been eligible for this offset in previous years, you will no longer be able to claim the additional tax relief it provided. As a result, your tax on your income may be higher this year, leading to a potentially lower tax refund or a higher tax liability.

To navigate this change effectively, it is important to review your financial situation and adjust your budget accordingly. Consider reassessing your spending habits and exploring other opportunities to save money. Additionally, it may be beneficial to explore other eligible deductions and tax offsets that can help optimise your tax position.

Remember, tax reform is constantly happening, particularly with changes in Government. Keep an eye on our newsletters and budget summaries for updates

Have You Considered Your Enviromental Impact?

This week, Coldplay released the first-known sustainability report for a music tour. Measuring their carbon footprint, they announced that compared to their 2016-2017 tour, Coldplay achieved a 47% reduction in carbon emissions. The report is an awesome example of environmentally aware business.

Here at Count Out Loud, we’ve been following the regulatory changes around climate-related disclosures and non-financial reporting because we believe that every rockstar, and business, should have the tools to produce credible reports on their carbon footprint. You may be aware that the Australian Treasury is currently in the process of its second consultation on proposed changes to the way businesses are required to measure and report on their environmental impact. This consultation was in direct response to the watershed release of the global standards for sustainability reporting called the ISSBs.

In the last quarter of the 2022/23 Financial Year, our team undertook training in carbon accounting to make sure that we have the knowledge and the skills to be able to support each of our clients in this changing environment. Whether you’re already a net zero hero or simply a climate-curious citizen – we want to be your partner in leaving a positive impact on the planet with credible accounting and reporting.

Considering your environmental impact, need help with measurement or your larger clients may be impacted by the new reporting requirements? Get in touch with our team to start the consultation process.