What s Happening in August 2011

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What's Happening at DSR in August?

In this issue:

Preparing for the Rollercoaster Ride
Don't pay more tax than you have to
How to sell your business
5 tips to differentiate your business
The Importance of Insurance
Recommendations
Important Dates
About DSR

Welcome Note

Welcome to What's Happening at DSR in August.

All of us at Davis Stewart Rowland are looking forward to helping you achieve your business and personal goals and work towards building a successful retirement plan.

We aim to bring you interesting and tax effective ideas for saving you money, explore new developments in taxation and the way we do business, and keep you up to date with issues that may affect you and your business.

Remember...

'whatever your financial and accounting needs we can work with you to find a solution".

Preparing for the Rollercoaster Ride

Standards and Poors has downgraded America’s AAA credit rating, local and international markets are volatile and easily spooked, picking changes in interest rates is more akin to crystal ball gazing, the carbon tax is coming, consumer sentiment remains tight and no one is feeling particularly confident. Welcome to the 2011/2012 financial year.

Over the next 12 months business will be working with a range of domestic and external influences that will cause uncertainty. But these swings can be a benefit as well as a headache – but only for strategically sound businesses.

Most SMEs are well downstream from major economic triggers. We don’t cause the problems but are affected because of what is happening to larger businesses, the economy, and consumers. Some industries are more impacted than others.

Expecting business conditions to be ‘more of the same’ over the next 12 months is wishful thinking.

Good businesses always have a clear strategy in place.

For the coming year it will be more important than ever; it will separate the successful from the strugglers.

Read on...

Don't pay more tax than you have to

If you are finalising your end of financial year accounts and calculating your tax position, keep in mind that there are still options available to save you tax. One of these options impacts on the valuation of your trading stock and if stock is a material asset in your business, you should most certainly consider it. This option provides you with different valuation methods that can be applied to your trading stock.

The majority of businesses value their trading stock at cost and in many cases this is the right valuation approach. However the Tax Act gives you the choice of valuing your stock at the lower of cost, market, or replacement value. Read on...

How to sell your business

We’re often asked the best way to sell a business.

There are two key components at play in the sale of a business: structuring the transaction; and, positioning the business to the market. Both elements are important and can significantly impact your result.

Structuring the transaction covers things such as pricing the business, the terms and conditions attaching to the sale, key terms in the contract, and ensuring the transaction structure is as tax effective as possible. Much of the structuring is about ensuring the vendors secure the most efficient and effective outcome from the sale. It is about maximising vendor position. Read on...

Thinking of selling your business? Talk to us today about how to achieve the best possible outcome.

5 tips to differentiate your business

Focus on the customer experience. What’s it really like dealing with your business? Do a blind test and see whether your business and your team really want customers and sales. For most businesses, you’re not delivering a product/ service, your delivering an experience.

What do your customers really want and can you give it to them and still make a profit? Starbucks closed 61 stores in Australia by 2008 (73% of their stores). They misunderstood the sophistication of Australia’s coffee market and no amount of advertising was going to make us change our barista.

Solve the problem. What is it that your business does for your customers? The more you can solve the problems they face and make life easier, the more likely it is that customers will choose you over your competition. It might be as simple as refining how customers choose and order your product, access to information that is valuable (think of the freight companies who offer freight tracking and schedules of a customer’s history) through to product development (online banking didn’t always exist).

Know your product. Do all of your staff know your product or service and do they know what to say about it? The business might seem simple to you but your staff might not naturally realise what needs to be done or said. Inexperienced or poorly trained staff are a huge turn off to all but the keenest customers.

Not everyone wants to be your friend. For many years marketers told you to develop a close relationship with your clients. As a result, everyone wanted you on their database primarily to market to you (almost zero value to your customer). There is no question that there is a value to having a tangible customer base. But realise that your customers are looking for different relationships with different businesses. Understand what it is they want from you and develop the relationship from there. If you make contact give them value - don’t just talk at them about your product.

The Importance of Insurance

As your accountants we do everything we can to ensure that you have a profitable business and a financially sound lifestyle BUT have you secured that business or lifestyle with adequate insurance?

It seems pointless to work hard in your own business or as an employee without taking steps to protect the income that you are generating and that is paying the mortgage, the rent, or any of the other bills that make up your day to day living. More people lose their homes and lifestyle due to accident or illness than by fire so doesn't it make sense to insure the income that provides what you have or hope to have, safeguarding your families future?

There are many different insurance policies with several different insurers and to help you seach for the best cover at a competitive premium Coast & Country Insurance Consultants are available to help you.

Coast & Country Insurance Consultants are a close associate our of practice, tried and trusted and with over 20 years experience in the industry. They are offering their services to clients of Davis Stewart Rowland. Without obligation and without an initial fee, they would love to give you a quote or review your insurances.

Contact them today on 4334 3622, email them on
office@cc-insurance.com (mention Davis Stewart Rowland) or have us refer you to them.

BankLink - Make the Change

The Banklink System is an excellent alternative to bookkeeping and MYOB.

“I have found Banklink to be very convenient in that I no longer have spend time boxing up documents and arranging to have them couriered to and from my accountant’s office. It has also saved the cost of the courier service,
Fiona Brandes”

IT REALLY IS THAT SIMPLE.

So do yourself a favour and talk to us today about using Banklink for your business.

Recommendations

As you well know, the lifeline of any business comes from the recommendations from existing clients.

We know that you have been pleased with our service levels so far, and believe that you may know of other businesses like yours that we could help in the same way. Do you know of anyone who would require our services? We are happy to sit down and discuss their accounting.

And to show our appreciation, each time one of your new business referrals becomes a client, we will send you a bottle of Cloudy Bay Sauvignon Blanc 2009 as a thank you.

Important Dates

14 August - PAYG Withholding Statement Summary (for large withholders >$1M)

21 August - Instalment Activity Statement for the period 1-31 July

25 August - Business Activity Statement for the period 1 Apr - 30 Jun 2011

28 August - Superannuation Guarantee Charge Statements for quarter 4 (Apr - Jun 2011)

About Davis Stewart Rowland

Davis Stewart Rowland is a three partner firm located at The Entrance on the NSW Central Coast. With over 50 years experience we have an in-depth knowledge of what the business owner and investor needs to embark and stay on the path of growth and wealth creation.

We have a unique appreciation of the issues business owners and investors face, which makes us an integral part of our client's advisory team. Our comprehensive approach includes:

Benchmarks
Tax minimisation plans
Cash flow forecasting
Business information processing
Management & strategic advice

Whatever your needs we can help find a solution.

Contact us today