Elite Financial Solutions

Four tips to keep your team motivated!

2012-02-29T19:15:00.003-08:00

   Every small business needs to motivate their employees in order foe the
   team to work more efficiently and produce better results. Using
   monetary and other rewards to improve motivation is a simple idea, but
   doing it fairly and effectively can be challenging.
   Therefore the difficult question is ‘How can you create a compensation
   program that motivates employees, results in a more productive staff
   and is administered fairly and effectively?’ Here are some valuable
   tips.

   1. Establish an action plan: Set realistic goals in your action plan.
       You must always reward top performance and must be as clear as
       possible in establishing realistic and fair goals. This is because
       effective communication is the key ingredient for the entire
       program.

    2. Be creative in determining rewards: Before you launch the plan,
       decide the reward. The reward need not always be cash. Recent
       studies have proven that non-cash rewards are more attractive and
       effective than cash rewards. Offering flexible working hours and
       the occasional Friday afternoon off have proven to be great
       rewards. If cash flow is a problem, then why not implement non cash
       rewards to motivate your staff!

    3. Group rewards may be appropriate, but don't undermine individual
       initiative: Most businesses tend to reward the group and limit
       individual rewards as base pay to keep the simplicity of the
       program. However, that may result in lowerindividual initiative and
       innovation. It is important for individual contribution to be
       valued separately to the group when it is outstanding.

    4. Finally, it is important to keep motivation going:Once you have
       achieved success, don't forget to celebrate! Keep thinking of
       creative ways to increase your motivational strategies, including
       making use of retreats, team-building exercises and travel where
       relevant. Always keep in mind that a motivated workforce will be
       happier, more productive and more profitable, and it ensures a fun
       place to work.

Self Managed Superannuation Funds (SMSF) and Lending

2012-01-29T16:56:00.000-08:00

Has your SMSF loaned money? If so, makesure the loan terms comply with the law and are in the best interests of yourretirement.

The ATO is concerned some trustees arelending money from their fund to people who provide advice or assist in therunning of the fund. This may not be in the best interest of your SMSF, and mayplace your retirement savings at risk.

When a loan agreement is not in the bestinterest of your SMSF - for example, when you have given discount loan rates orfavourable terms - this could have serious consequences. In addition to puttingyour member's benefits at risk, your SMSF could be found to be non-complyingand would, therefore, not qualify for concessional tax rates.

Before lending any money, you should consideryour fund's investment strategy.

If you still decide to go ahead and lendmoney from your SMSF, you should:

l Put in place an appropriate loan agreement and have it signed by allthe parties involved

l Ensure the loan agreement specifies all the terms of the loan, suchas

Ø what the security for the loan is

Ø the repayment period

Ø when repayments will be paid

Ø the amount of the repayments

Ø the interest rate

l Ensure the interest and repayments are received by the fundaccording to the loan agreement

l Take appropriate action to protect the fund's investment if the loanagreement is not followed

l Ensure the loan is sensible and does not put the members' benefitsat risk

l Ensure that the conditions of the loan agreement do not provide theborrower with favourable terms.

Remember that you are the one ultimatelyresponsible for running your SMSF, and you must make sure you understand yourduties, responsibilities and obligations.

Get ready For the Post-Christmas Cash Flow drought….7 ways to stay ahead!

2012-01-15T20:26:00.000-08:00

The global financial crisis is squeezing credit and bank overdrafts andtrade payments have been slowing. Therefore, small businesses should supportthemselves for an economic slowdown in the wake of chaos in internationalfinance markets and a decrease in the value of the Australian dollar. Theyshould be keeping a close watch on cash flow, considering the most appropriatefinance options and improving administration processes. Here are some helpfultips to help your business survive and thrive in challenging market conditions!

1. Get Organised - Keep summaries of all purchase and sales invoices and pettycash dockets. Importantly, keep your bank statements safe as they are a recordof your payments and receipts.

2. Always check the credit status of a new customer - Risks must not be underestimated in the eagerness oftaking on new business. Creditchecks can be done quickly and are relatively inexpensive.

3. Chase overdue accounts regularly - take prompt action to follow up overdue accounts bytelephone and check customers whether they have received invoices.

4. Look for more flexible funding options – why not look into Debtor Finance or a line of credit.

5. Review your suppliers - review the prices of all your suppliers are charging you.Are you too loyal to your suppliers for the wrong reasons? Think of the effect of 10% reduction in coston your profits!

6. Dusts off your business plan- try to reconstruct a winning business plan in 2012. Keep anelectronic copy to make sure changes are easier to track.

7. Call in a businessconsultant – A dedicated financial consultant can help youplan effectively and take advantage of opportunities on the horizon. If youwould like more information on Business Consulting contact James Solomons on(02) 98683900 or james@elitefinance.com.au.

Become a 'Rainmaker' in your business!

2011-12-11T15:19:00.001-08:00

You mayknow what business to start, how to gather the resources; but if you do notknow how to sell, then you might as well close the doors!

As muchas you may dread of prospect of selling, your business needs customers, withoutwhich you are doomed. Regardless of whether you are a one person business or abig venture project, your goal needs to be to become a ‘rainmaker’ and attractnew customers. Here are five useful steps to that can help you become a‘rainmaker’:

1. Find the WHY. Any business can sell aproduct/service and its benefits. To create a truly lasting relationship withyour customers ask yourself why your business does what it does. Once you knowcommunicate it. Apple sells ‘Think Differently’ – they just happen to makegreat computers and phones.

2. Be well prepared and confident beforeyou meet with a new customer or make a first sales call.

3. Determine the competition. Know otherways your customer can get same kind of product or service that you offer. Findout as much as you can, including the price and benefits they are offering.

4. State your benefits by listing downall the reasons why the customer should do business with you or buy yourproduct such as reliability/durability of the product.

5. Quantify the benefit. Determine whatthe benefit actually translates to for that individual or business.

Saving Tips For Xmas!

2011-11-21T17:31:00.001-08:00

Christmasfalls on December 25 every year and we all know it's coming but some of usforget to tell our wallets! This time of year is a favourite among young and old,and the lights, decorations and the joy of being around those you love makes itall the more special.

But how about some tips to helpmake your season even merrier by saving some money? Here are a few ideas tomake your holidays a little easier (and cheaper) to get through and allow youmore relaxation time with family and friends.

Plan, Plan, Plan

Write out your plan listing everything you will need tobuy and do this Christmas. Plan your food shopping list in advance, and check where you can get the cheapest ingredients andgroceries. If you are doing the cooking, workout a menu plan, including everything you will eat and what groceries you needto buy.

Make Your List

Making a list assists you in determining a budget and can helpyou stick to it. Write down the names of those you will be buying presents forand what you plan on buying them. It’s not necessary to spend a small fortuneon presents, choose to embrace aseason of simplicity and go for handmade gifts and fun ideasthat make Christmas more enjoyable anyway. Check out etsy.com for some greathandmade gifts!

Prepare your budget now

Work out how much Christmas will cost you and startputting aside the money for it each week. When you see something on special,buy it from your allocated Christmas money and do not go over budget. Don't rely on credit cards; you don’t want to be stillpaying for Christmas into the New Year!

Stock up each week

If you have your Christmas plan and know what groceriesyou will need, stock up a little each week. It will reduce the stress andexpense the closer it gets to Christmas as you will have absorbed the cost eachweek instead of doing one big Christmas shop. Save the perishables for last!

Look for the sales

There are sales going all the time for various things.Keep an eye out in your letterbox and newspapers for specials at your favouritestores. This way you will know when something on your Christmas list is abargain and you can buy it at a reduced price. A little bit of saving here andthere will add up and make your 2011 Christmas just that little bit easier onyour pocket. HO HO HO !

James Solomons' Business Blog: What are your business' values ....?

2011-11-06T19:20:00.000-08:00

James Solomons' Business Blog: What are your business' values ....?: As published in the November edition of the Western Sydney Business Access magazine http://westernsydneyaccess.com.au/ Every business has a...

James Solomons' Business Blog: Avoid the bunker-down mentality......

2011-10-16T23:20:00.000-07:00

James Solomons' Business Blog: Avoid the bunker-down mentality......: "As publised in the Western Sydney Business Access Magazine, October 2011 Edition" The uncertain and challenging conditions that business o...

Cloud Computing: How it can help your business!

2011-10-09T22:50:00.000-07:00

CloudComputing – Practical Solutions

The new era in computing ishere. A new way to minimise costs, maximise efficiency and best of all run aneffective business. These may sound like dramatic claims, but ‘cloud’ computingis rapidly changing the way business is done. This is not just some fad forcorporations with a huge budget either – it’s a cost effective solution that iscoming to a small business near you!

Whatis Cloud Computing?

Essentially ‘cloud’computing is utilising anysubscription-based or pay-per-use service that, in real time over the Internet,completes essential or business related tasks for you. It’s outsourcing for theweb generation. You don’t need to store your data locally or pay for expensivesoftware licenses, with information instead being stored on secure servers inthe ‘cloud’ that are accessible 24/7 wherever you are in the world. All youneed is a computer or smart phone with an internet connection – it’s thatsimple. Data is always up to date so you can make important business decisionson the go.

Costs

The costs for cloudcomputing services vary, but in essence are much cheaper than traditionalsoftware services. Accounting software provider Xero (EFS Business Partner)starts at only $29 per month and allows much greater flexibility than locallystored software. The costs and dangers of storing information locally also meanthat cloud computing is a logical choice for many businesses. Some cloudservices are even free when supported by advertising!

Uses

The ‘cloud’ in action:

1) Businesses can cut a big chunk out of theirexpenses by choosing to shift employees onto online call and communicationservices where businesses only required to pay minimal costs – from reducedrates for calls to even just the cost of broadband services or similar. Using technologiessuch as VoiP, people can talk face to face over the internet, making use ofvideo and audio technology. This assists businesses to not only communicateeasily and cheaply, but also makes it possible for people to have meetings withclients remotely which in turn drastically cuts down your businesses travelingcosts as well as minimising the downtime of frequently travelling employees.

2) Certain online tools can help you structureyour day and keep track of what you are doing. ‘Toodledo’ is an online serviceallows you to organise and sort your tasks on a tiered model, enabling you tocategorise things by priority. It is also fully optimised for mobile devices,helping you keep organised on the move. Google’s to-do list service alsoprovides links directly to your Gmail account, providing easy access for anycompany that already uses Google’s services like YouTube, Adwords or evenAnalytics. The system is maintained on cloud servers, ensuring that it worksquickly while data is stored in a safe environment.

Cloud computing offersbusinesses the opportunity to leverage services that used to cost a fortune andneeded to be run in house. This means more time to focus on the things thatmatter – growing and developing your business.

For more information onusing Xero Accounting Software to simplify your business and keep up to datewith your finances please contact michael@elitefinance.com.au. or visitwww.xero.com.

Getting Credit Card Debt Under Control

2011-09-18T15:55:00.000-07:00

First things first. To get your credit card debt under controlyou require a realistic assessment of your income and expenses. There are noif's, but's or maybe's about it. If you are consistently spending more then youearn it is time to rectify the situation.

Budget
To get your creditcard spending under control you need to build a debt control strategy that willlead you to becoming debt free or at least reduce your burden. You need to knowhow much your total debt is and how long it will take you to repay that debt atyour current payment rate. By developing a budget that enables you to trackyour income and expenses, you can then begin to cut unnecessary expenses anduse more of your income to pay off your debts. Simple steps such as allocatinga set amount per week to pay off your debt will allow you to get it undercontrol faster. It is important to be realistic with your goals and aim to getyour debt under control as soon as possible.

Consolidate
If you are payingoff multiple cards at varying interest rates you are more then likely payingmore interest then necessary. In this case it would be important to consider adebt consolidation loan. By consolidating your debts you simplify your financesand place all of your debt together into the one account with a fixed interestrate. The proceeds from the loan are used to pay back your other creditors andthen you make monthly payments back to the loan consolidator. Usually theseloans have much more competitive rates then the purcahse interest rate chargedby credit card providers. If you have multiple unsecured debts, you areprobably paying far too much in interest. If you are overwhelmed by unsecureddebt (such as credit card debt or other unsecured loans), consolidating theseunsecured financial obligations has many benefits, including saving youthousands of dollars in the long-term, reducing your total monthly payments,helping you become debt free faster, and improving your credit rating.

One of the mostimportant aspects of debt management is understanding how you got into debt inthe first place. If your debts were a result of spending beyond your means, youmust modify your budget to avoid this situation in the future. Controlling debtrequires self discipline, restraint, and planning. You must address the reasonsthat landed you in the situation in the first place. No plan for getting out ofdebt will ever succeed if you continue along the same path. So take action now!

If credit card debtstruggles are keeping you up at night it is important that you get them undercontrol now! Speak to your bank or credit provider about how you can get yourdebt control back on track.

James Solomons' Business Blog: Risky Business.....

2011-09-14T20:56:00.000-07:00

James Solomons' Business Blog: Risky Business.....: "Article as appeared in the September edition of Western Sydney Business Access....." SMEs are exposed to risks all the time. Some are ri...

Creating a passive income stream

2011-09-11T18:44:00.001-07:00

Passive income comes in many shapes and forms. There are thousands of ways that people have created automatic streams of income, and more are being created all the time.

All sources fall into one of two types of passive income; Investing Passive Income and Business Passive Income. Out of these two primary vehicles, business and investing, an unlimited number of possibilities arise. Mastering just one area and building a portfolio of investments can help you reach your financial and lifestyle goals! This article will focus on how to build passive investment income.
A passive investment may include both a retail financial product and other managed investments where the activities do not constitute the carrying on of a business. Unlike active investors, passive investors buy a security and typically don't actively attempt to profit from short-term price fluctuations. Passive investors instead rely on their belief that in the long term the investment will be profitable.
There are many arenas of investing that can be used to generate passive income. Stocks, bonds, money markets, managed funds, rental properties and other financial investments can be used to generate income. There a wide variety of products available with differing levels of risk. It is important that before making any investment decisions, that you contact your financial advisor to analyse your current financial situation and develop an appropriate strategy. With the right strategy you could be on your way to building multiple streams of income!

Tax Benefits
There are also number of tax benefits that relate to passive investment. A number of deductions can be claimed on your tax return such as interest paid on the loan to fund your investment. With respect to rental properties, you can also claim repairs and maintenance of, rates and taxes, insurance, agent's fees, travel to and from the property to facilitate repairs, and buildings depreciation. Tax deductions can also be claimed as a result of negative gearing, where the costs of keeping the investment instruments exceed the income gained from it.
Owning rental properties can be a great way to put your money into something that will pay you regularly for many years. Unfortunately many people attempt to get into rental real estate they end up spending all of their time managing, maintaining, and overlooking their properties! This is not passive income. If you are working around the clock to maintain your rental properties, you may be earning money but it is requiring your time! Passive income means automation!

Building a passive income is a vital part of wealth creation and an important aspect of balancing risk. After all, wouldn't you rather that your money work for you?

For a more comprehensive analysis of your financial situation and for a strategy to build passive income please contact our head financial planner Christine Hallowes CFP on (02) 9868 3900 or email her at christine@elitefinance.com.au.
The ATO has provided comprehensive guideline on rental property deduction. For more information, please visit http://www.ato.gov.au/corporate/content.aspx?doc=/content/00282530.htm

Thinking of applying for a personal loan? Here are some valuable tips!

2011-09-08T17:07:00.000-07:00

If you are thinking ofborrowing money to buy a car, boat, for debt consolidation, home repairs,medical bills or anything else for that matter, here are some red hot tips tomake the process much easier!

1. Be honest in your loan application
The process of enteringyour personal and financial details should not take more than 15 minutes tocomplete online. Being honest in your application, explaining things like whyyou are applying for a loan or existing debt considerations are essential foryour bank to offer you a loan option that best suits your circumstances. Thereare an increasing variety of different types of personal credit available; carloans, commercial loans, leases, home equity loans, are just some of theexamples. With complex credit rating analysis tools at a financial instituion'sdisposal - honesty is the best policy!

2. Have the right information when applying
Documents typicallyinclude personal identification items (i.e. photo ID like a Driver's licence orpassport), rates notices, and employment wage pay slips or most recent Noticeof Assessment. Further information to have handy include copies of recent bankstatement and other loan accounts. These are often essential when applying forhigher value personal loans. It is important that you confirm with the lenderwhat documents you will need when applying or before attending to theinterview.

3. Try lenders with whom you are a regular customer
Take advantage of thehuman factor. Being a familiar face or regular customer may mean you areoffered a better rate. However, keep lenders competitive by shopping around forbetter value if your primary lender is not willing to play ball!

4. Know what interest rate applies
This advice seems simpleenough yet all too often consumers get caught out with introductory ratediscounts! Always be sure you know what interest rate applies over the completeterm of your loan. Lenders may often ‘sell’ you their finance packages byquoting the monthly repayments only. This may disguise a high interest rate, sobe certain that you know your ongoing obligations.

5. Know how much will be your repayments
Most personal loansrequire a repayment each month with most allowing you to repay weekly,fortnightly or on an ad hoc basis. Your repayment amount will be calculated byyour loan provider and it will be depend on the interest rate, fees and term ofyour loan. The shorter the loan period the less the amount of interest chargedwill be, but the higher the repayment amount.

6. Know about the fees on your loan
If no fees are chargedthen the interest rate might be a little bit higher than a comparable loan fromanother provider. Most loan providers will also charge fees to end the loanearly, for account keeping on a monthly basis or for making any extrarepayments in general. Make sure you know what fees will or can be chargedbefore committing to a loan. If you have extra funds available and areconsidering paying out your loan early, make sure you check before doing so asit may be more beneficial to hold off and only pay the required amount.

For a great personal loan comparison tool visit: www.ratecity.com.au

Government support for small businesses

2011-08-28T15:56:00.000-07:00

The Federal Government and the States and Territories are all keen to support the establishment and growth of small businesses in Australia. A robust small business environment has strong flow on effects for the rest of the economy and as such, encouraging investment and training as well as providing grants to budding entrepreneurs are important aspects of government support for small business.

Funding

The difficulty for many small businesses is finding finance to bring their ideas to reality. Many of the best business concepts don’t come to fruition due to the lack of funding available. Fortunately, there are grant programs available through government agencies to support small businesses in finding adequate funds to start up a new business or grow their existing venture. For example, the Repayable Contributions Program offers various avenues of access to funds for small businesses. Some programs take the form of interest-free, unsecured repayable loan, where all or part of the loan is repayable or conditionally repayable depending on the terms and conditions of the contribution agreement. Please see www.grantslink.gov.au for more information on grant programs.

Training Programs

Training assistance programs are another incentive tool that governments have up their sleeves to encourage investment in small business. Some programs provide financial funding to encourage business owners to create long-term employment opportunities, especially with regards to unemployed individuals and post-secondary graduates. Other programs offer wage subsidies to eligible employers in exchange for employers providing job experiences to post-secondary graduates or unemployed individuals.

In addition to money, the government provides a number of programs which offer valuable services and resources. These might include skills training programs, consulting services, mentorship programs, the opportunity to attend trade fairs abroad and introductions to potential suppliers, partners and customers. In many cases, these services would normally bear a substantial cost, so you're not only getting the business building value of the service, but you're saving money, too!

Helpful Government Links

http://www.australiangovernmentgrants.org/programs.php

http://www.ausindustry.gov.au/Pages/AllAusIndustryPrograms.aspx

http://www.grantslink.gov.au/Info.aspx?NodeID=2

http://www.business.gov.au/BusinessTopics/Grantsandassistance/Pages/default.aspx

http://www.digitalbusiness.gov.au/

http://www.accc.gov.au/content/index.phtml/itemId/815214

http://sblegal.innovation.gov.au/

http://www.innovation.gov.au/SmallBusiness/Pages/default.aspx

http://www.smallbiz.nsw.gov.au/

LOST SUPERANNUATION

2011-08-18T16:48:00.001-07:00

Did you know that billions of dollars is sitting in lost superannuation accounts waiting for Australians to claim?

Lost super is a special term used to describe superannuation benefits that are recorded in the Lost Members Register. Your super benefits may be recorded as lost if your super fund cannot contact you due to changes in your member details or similar events. You may also have lost super if your account has not received any contributions in the past 5 years. If you change jobs regularly or you have had part-time jobs while at school or university, then it is highly likely that you have more than one super account. On average, every working Australian has three super accounts.

Should I be concerned if I think I have lost superannuation?

Don’t worry if you haven’t kept track of your multiple accounts. It’s never too late, but you must locate your super accounts before you can roll them over into one super account.Generally, your super fund/s sends you a statement each year reporting your account balance and fund returns. If you’re not receiving these statements and/or don’t know which super funds that you belong to, then you have access to plenty of services to help you find your lost accounts, and increase your super benefits instantly.

How can I find out if I have lost superannuation?

Use the ATO’s SuperSeeker service (www.ato.gov.au/super) which searches the Lost Members Register and other ATO records, such as unclaimed super money, for your lost super accounts. You can also contact them on the phone for advice and information ( 13 28 65).
Try AUSfund (www.unclaimedsuper.com.au) which looks after the lost super of millions of Australians for some of the largest super funds in Australia. If they have your super, they will find it free.
Ask your current super fund if they offer a service for finding your lost super.
Ask your previous employers for the names of the super funds that received contributions on your behalf

James Solomons' Business Blog: Why cash flow controls are so important in busines...

2011-08-11T18:37:00.000-07:00

James Solomons' Business Blog: Why cash flow controls are so important in busines...: "Picture a scenario where all of your customers decided to delay payment of your invoices by 30 days. How long could your business survive wi..."

Australian Market Outlook

2011-08-04T16:15:00.000-07:00

Even though economists are positive on the outlook of the Australian share market for the remainder of 2011, there are still some concerning factors which have kept average returns in the red over the past 11 months. The European debt crisis, which began as concerns around Greece and its debt servicing ability seem to have spread further in the European Union, with Ireland and Portugal looking increasingly unstable. Further market instability has been seen with increasing oil prices a result of political instability in the Middle East and North Africa. These factors have kept the Australian market quiet on trade and discouraged investment over the past year. Looking forward we should see some of these issues regarding EU debt ease, although not quickly, as the global economy continues to recover post GFC. China’s economic growth has continued and this has benefitted Australia’s large resource companies as strong demand for its products continues. There may be a slight dampening of such demand as the Chinese government attempts to curb inflation on the back of fast economic growth.

The first six months of 2011 has seen the share market fall short of expectations due to events and concerns beyond our shores. Even so, our economy and the businesses that operate within it continue to grow and rebuild, albeit slowly, from the repercussions of the GFC. The forecast for the Australian economy is very strong for the next couple of years. This view is underpinned by the expectation that unemployment will continue to decline and stabilise around 4-5% as more labour resources are required. This is particularly true for the mining and resource service sectors.

Australia’s terms of trade have recently been upgraded creating an income surge which will quickly flow throughout the entire economy with workers, corporations and the government all benefiting. Recent concerns regarding US debt have also had a negative effect on the All Ordinaries. However, recent developments suggest this too is improving with retail sales and production figures up and a trillion dollars’ worth of government spending cuts agreed upon in principle by the US government.

The mood across global markets appears to be decidedly downbeat and the reality is that 2011 was always going to be a tough year. In the short term at least it appears the australian market will continue to respond to poor global conditions and fears of another GFC. However the outlook for the Australian economy is improving and we would expect this economic strength to be reflected in the market movements hopefully toward the end of this year and into 2012.

*The advice provided is of a general nature only. Everyone's financial situation varies so please contact a financial planner at EFS on (02) 9868 3900 for a financial plan that meets your needs.

Elite Financial Solutions ABN 32 077 847 486 provides its financial planning services as an Authorised Representative of Count. ‘Count’ and Count Wealth Accountants® are the trading names of Count Financial Limited, ABN 19 001 974 625. AFS Licence Number 227232. Principal Member of the Financial Planning Association of Australia Limited.

AUSTRALIAN SHARE MARKET OUTLOOK

First home buyers: Choose the right home loan and get ahead

2011-07-24T18:20:00.000-07:00

Looking for a home loan can be daunting. And with the recent rise in interest rates (and future rises expected), finding a competitively priced loan is more important than ever.

With so many home loan products on the market, first home buyers need take heed when comparing loans and make sure they get the right advice from a lending professional. Do your homework and look for loans with features that will save you money over the long term, rather than looking for a short term fix.

Low introductory rates are one tactic banks and financial institutions use to attract customers. What appears to be a good interest rate in the beginning, can often only apply for a few months. From there on, the interest rate skyrockets and the loan ends up costing you more in the long run than a loan which has a standard rate.

First home buyers should be aware of any additional costs before getting locked into a loan. Flexibility is one of the most important components to look for. A loan that has high exit fees or penalises you for making extra repayments is locking you into the loan – discouraging you from looking for a better deal elsewhere and possibly refinancing.

Likewise, beware of any broker who charges exorbitant fees or recommends loans with a very high interest rate, as they are not likely to have your best interests at heart. A reputable loan adviser will go through a range of loan and repayment scenarios to help you decide which suits your needs best and will then recommend loans accordingly. They should not pressure you to take up a loan which you are obviously not comfortable with.

Making certain you are comfortable with the repayment structure is one of the most important considerations when choosing a loan. Having the ability to make regular repayments is one thing, but you should also make sure that the loan structure allows for further interest rate rises. A loan which doesn’t allow this buffer, may expose you to trouble later down the track if your repayments increase and you are unable to afford them.

Getting the right advice and shopping around early seems to be the key to choosing the right loan and owning your home faster. Whether you are taking out your first loan or refinancing a current loan, advice from a qualified adviser can make a world of difference and could mean you save thousands of dollars over the term of your loan.

For more information on choosing the right loan for you, please visit http://www.elitefinance.com.au/ or call (02) 9868 3900 and make an appointment with one of our qualified financial advisors.

Is a Self Managed Superannuation Fund right for me?

2011-07-18T22:28:00.000-07:00

SMSFs an attractive option: top 6 benefits of Self Managed Super Funds

About one third or $420 billion of superannuation savings in Australia is now held in Self Managed Super Funds, or SMSFs, says Christine Hallowes from EFS, part of the Count Wealth Accountants network.

Also known as a ‘Do it Yourself’ or ‘DIY Fund,’ a SMSF is a super fund you set up and manage yourself, in contrast to employer and retail super funds which are managed by professional trustees and managers. “A SMSF member becomes their own fund’s trustee and can seek advice from experts like accountants, financial planners and lawyers when they need it,” says Christine.

A key benefit for many is greater investment choice, which can be tailored to specific retirement goals.

“As well as the conventional asset classes of cash, fixed interest and managed funds, SMSFs also have access to investments such as residential and commercial property and direct shares. For example, business owners may seek to make their business premises an asset of their SMSF.”

Christine also advises that a SMSF can be an excellent vehicle for holding death and disability insurance, giving you and your family peace of mind. “Premiums for death and disability insurance are tax deductible in the SMSF (unlike in situations where death and disability insurance are held outside superannuation), and may be funded from your super contributions or fund account balance.”

Christine notes that, subject to certain rules, a SMSF can also borrow to invest in assets such as residential or commercial property. “These assets are then held in the tax effective superannuation environment, which can result in a significant boost to your retirement savings.”

Once you reach age 55, you can start a pension in your SMSF. Earnings and capital gains from the investment assets that support a pension are not subject to tax in the fund. According to Christine, “by timing asset sales in a SMSF to take advantage of these rules, substantial tax savings can be achieved. That said, it is essential that your fund be reviewed to work out whether this strategy will be effective - which is where a good financial adviser comes in.”

Christine points out that self managed super funds may allow added flexibility in determining how your estate will be paid after your death. “For Australians, superannuation is often the largest asset after the family home so it may be a substantial part of your estate. Therefore, it’s important to ensure that your superannuation funds are paid to your dependants in the most tax effective way.” Christine advises that, when determining the best way to pay your superannuation benefits on death you should consider factors such as tax, family circumstances and other estate assets.

Finally, Christine notes that a pension drawn from a SMSF may allow you to draw tax efficient pension payments to supplement your income as you approach retirement. “You could “salary sacrifice” your employment or business income into the SMSF, while at the same time receiving pension payments. Salary sacrifice contributions are taxed at 15% rather than your marginal tax rate. Pension payments are tax free over age 60 and otherwise are taxed advantageously.” As mentioned, assets that support a pension are subject to zero tax in the fund.

Christine Hallowes is an Authorised Representative of Count Financial Limited, an Australian Financial Services Licence Holder (No. 227232) and

Australia

's largest independently owned network of financial planning accountants and advisers.

The advice provided is general advice only as, in preparing it, we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, objectives and financial circumstances.

Please visit http://www.elitefinance.com.au/ for further information on how a SMSF could be right for you.

How will the carbon price affect you?

2011-07-10T18:32:00.000-07:00

The announcement yesterday by the Gillard government of a $23 a tonne carbon price from July 1, 2012 may mean many things for you and your business. Whilst the tax is targeted toward the 500 or so largest polluters in the nation, the flow on effect in prices may have an impact on your overall financial position.

Families in the lower to middle income range should be, at least initially, compensated through tax cuts and welfare increases. However, for many middle income earning families the tax will have some impact on overall financial position. For example a family with two dependant children earning a combined income of $90,000 a year can expect to be out of pocket by around $120. This increases as taxable income rises. A personal calculator can be found on the Clean Energy Future website which estimates the impact of a carbon tax on you and your family:
https://www.cleanenergyfuture.gov.au/helping-households/household-assistance-estimator/

For small and medium business the carbon tax will also have a real effect on operating costs in the short term. The government has taken the step of increasing the instant asset write-off from $5,000 to $6,500 for purchases after July 1, 2010 which is a step in the right direction. Despite this, there will be increased energy, inventory and other costs passed on that will not be reimbursed by the government. The government has also provided information for small business on their clean energy website:
http://www.cleanenergyfuture.gov.au/helping-business/business-and-a-clean-energy-future/

Every business and individual circumstance will vary and therfore it is important to consult your tax and financial professional for more specific advice.

Please visit our website for more information: http://www.elitefinance.com.au/

James Solomons' Business Blog: SMEs need planning for post GFC Recovery

2011-07-08T00:10:00.000-07:00

James Solomons' Business Blog: SMEs need planning for post GFC Recovery: "'As featured in the July Edition of the Western Sydney Business Access magazine (WSBA)' ALMOST two years have passed since the ‘official’ ..."

SMEs need planning for post GFC recovery....

2011-07-08T00:04:00.000-07:00

Reblogged from James Solomons' Business Blog

"As featured in the July Edition of the Western Sydney Business Access magazine (WSBA)"

ALMOST two years have passed since the ‘official’ end of the Global Financial Crisis (the GFC) however for many small and medium sized businesses (the SMEs) the effects of this downturn in the economy are only just starting to subside.

Big businesses, having the luxury of greater access to resources across the board have been able to move beyond this downturn and are operating back at relatively normal levels again; but what about the SMEs?

The drastic and often cut throat measures taken by many SME owners to survive the GFC, coupled with the banks reigning in business credit in its aftermath and the high level of economic instability has left many businesses seeing the opportunities starting to present themselves in this new period of economic growth but unable to seize them due to their lack of resources.

SMEs were forced to cut back staff numbers and review their operating expenditure to find areas where spending could be reduced. At the same time plans for capital outlays were quashed as existing assets were kept rather than being upgraded and now many of these assets are well past their use by dates.

But these measures to help ease cash flow constraints were somewhat undermined as many of the SMEs customers started stretching out their payment terms. In addition not only were customers taking longer to pay, some were not paying at all! And to further compound the lack of cash inflows the drop in consumer spending meant that sales figures were simply just down overall.

Cash flow constraints during a general economic downturn are a struggle for any business, but during a downturn of the magnitude of the GFC any business that had not planned properly in the good times for the bad were in for a real struggle.

For many years

Australia

experienced strong economic growth and it was easy for almost anyone to register an ABN and a business name and make a buck or two. But it was the smart SME owners that reinvested some of these profits into getting advice on how to plan for the future.

And that is the key to moving ahead in this post GFC business environment. Businesses need to plan for the future.

The businesses that diverted resources pre GFC to defining and implementing a strategic business plan and continued to allocate resources (even if on a reduced scale) to the planning and review process during the GFC to carefully monitor their position and make decisions as they were needed, are the SMEs well positioned to take advantage of the post GFC recovery opportunities.

However, for those businesses that either never allocated resources to planning pre GFC or cut out expenditure on this important process when the GFC hit, are the SMEs that face a tough future.

These are the businesses that would have also cut back on valuable resources or asset upgrades because they didn’t have the plan in place to help them ride out the storm and their decisions would have all been reactive in nature. They now find themselves facing a slow and hard recovery.

But fortunately it is never too late to start planning for the future and below is how we have been helping our business clients to grow both pre and post GFC. This centres around four major steps.

The first step is to conduct a business health check. You need to take stock of exactly what position your business is in at this point in time. Without knowing where you are now, you can not effectively plan for where you want to go.

The next step is to plan for the future. You need to either develop your business plan (if you don’t already have one) or revisit and redefine your existing business plan to set your current goals and objectives.

The third step is to assess what gaps exist in the business in terms of the resources required to help you achieve the goals as defined in your current business plan. And then start looking at how to fill these gaps.

From this point forward SME owners will be equipped with a “Business Game Plan” which at the very minimum sets out the steps needed to achieve their desired goals. But the process doesn’t stop here.

Business plans then have to be implemented and monitored to ensure that the business remains on track to achieving its goals. This is the most challenging step as owners have to often follow through on tough decisions to make it happen.

Whilst the fourth step of implementation is the most challenging the most important steps are the second and third steps. The planning steps are where all the assessments are made of where the business is going and determining how it is going to get there.

This planning phase has to cover the following areas, linking what the desired outcome is with the inputs and resources required.

•• Business strategy; have you got clear sales, marketing and growth objectives to take advantage of the opportunities that will arise as consumer confidence increases?

•• Your service mix; do you have the right service mix in place to meet consumer demand or effectively challenge your competitors?

•• Resources and reserves; do you have in place the right people and financial capabilities to implement a growth strategy?

•• Business information systems; are your business systems in place to record, report and effectively use business and market intelligence?

SME owners will be more responsive and efficient when they have information at their fingertips and by feeding that information back into the business it will ensure that they make smarter decisions which are proactive rather than reactive and that is what helps SMEs to grow.

To summarise, it is all about being focused on sales and marketing strategies to lead the charge, but having a clear understanding of how the business is positioned to handle new business, implementing good measurement tools to provide visibility to management and ensuring that the strategy is appropriate for the business’s capabilities.

SME owners are passionate about what they do but the key to succeeding in this post GFC business environment is for them to be objective when making decisions about their plans for the future.

Once the plans are made, then it is time for the passion to takeover and help seize the opportunities as they present themselves.

How to choose a financial planner....

2011-07-03T14:57:00.000-07:00

Reblogged from James Solomons' Business Blog

Prior to the Global Financial Crisis (or the GFC as it is affectionately now known), the financial planning industry held a somewhat precarious place in the financial services world. It was often on the receiving end of unfavourable media attention thanks to a small number of unscrupulous and often unregulated advisers who had the sole intention of preying on and ripping off unwitting people of their life savings .

With many Australians not really understanding what a financial planner did or what the financial planning process involved, people steered clear of those offering these much needed advice services, and opted for the typical aussie DIY approach to manage their financial affairs. In many cases, it was (and still remains) a “she’ll be right” attitude. However, does this approach provide someone with ‘peace of mind’?

Post GFC, during the aftermath of its destruction the financial planning industry was dragged into the spotlight as fingers were pointed. But in many cases the blame being laid at the feet of financial planners was misplaced. This was generally as a direct result of the lack of knowledge of what a good financial planner does and what impact financial planners actually had on the losses incurred by so many Australians as well as other investors around the world.

As is often the case in life, the fear of the unknown is what stops people from moving out of their comfort zone and this analogy can be applied to the financial planning process. Sitting down to identify your financial and lifestyle goals, then having a plan prepared which shows you how you can achieve these goals and then challenging yourself to trust this advice and make the changes identified are all factors which can take someone out of their comfort zone. With any ‘plan’, financial or non financial, the outcomes are never guaranteed and for many this fact leads them away from getting the advice they need.

The GFC however, has highlighted the need to obtain financial advice from professionals to reduce the risk of making the wrong choices when it comes to one's financial affairs and since the GFC there have been a wave of reforms to make the financial planning industry more regulated and more transparent so as to give people both financial and legal protection as well as to build faith in the profession.

The Financial Planning Association of Australia (or FPA), the peak body governing and representing financial planners and the financial planning industry within Australia lists the definition of financial planning as; “Financial Planning is the process of developing strategies to help you manage your financial situation so that you can protect and build wealth, enjoy life and achieve financial security” . The FPA website also contains information as to what the financial planning process is as well as when you may need advice along with other invaluable information concerning the industry.

But what really is financial planning? Who are financial planners? And what is a financial plan? Quite simply, financial planning is about identifying what your financial and non financial goals are (B), taking stock of where you are now (A) and working out how you can go from A to B in a comfortable and secure way. Financial planners are the professionals who help you do this and a financial plan is the roadmap you get that outlines how all of this is going to happen. In essence, the financial planning process is all about ‘adding’ value to your financial situation that you otherwise could not have achieved without having received the advice.

That all seems very simple and straightforward, so why are many Australians still scared of the process? For most, it is a question of trust. Who do you trust to give you advice that in most cases is life changing? It’s a tough decision for an individual to make and they would sincerely hope that the person that they put this trust into takes this responsibility seriously and acts in their best interest at all times.

So how do you choose a financial planner? At a minimum, you should always choose a financial planner who is a member of the FPA and if possible is also a CFP. CFP stands for Certified Financial Planner and is a designation which indicates that this planner has undergone extensive formal training and maintains this level of expertise through regular ongoing training. It also means that this person is bound by the FPA’s Code of Conduct which covers many ethical, legal and professional requirements.

From this it is all about building a relationship with the financial planner. Without this relationship there can be no trust and a good financial planner will take the time to get to know you and your entire personal situation. Without doing this, it is virtually impossible for a financial planner to provide advice that is adequately tailored to your personal needs.

Hence why in many cases financial planners who are either your accountant or work within the accounting firm you use are well placed to provide the advice as they have this relationship with you already. But that is not to say that financial planners working on their own or within a financial planning firm are any less competent and it does really come down to the relationship and the level of trust an individual has with their financial planner of choice.

And what about the actual financial plan? What does it actually cover? In reality it covers a whole host of things. A good financial plan takes into account your entire financial and personal situation. It can cover retirement strategies, investment strategies, superannuation strategies, savings plans, budgeting and lending strategies just to name a few areas. It can be for you as an individual or it can be for your business.

And if you have a good financial planner, it will provide advice on the best personal insurance options available to you including income protection insurance, life and disablement insurance and trauma insurance. Because with any plan you have to protect against the unforseen and so insuring the sources of income that will provide the opportunity to achieve these financial and lifestyle goals is a must.

Finally, good financial planners see this financial plan as a ‘work in progress’. A set and forget approach to financial planning doesn’t work and once the process has started and the seeds have been planted it is a life long commitment from both sides. (Hence why the relationship between planner and client is vital to the success of the financial plan).

At a minimum your financial plan should be reviewed on a yearly basis to ensure it remains on track to achieving your goals. Things change and a good financial plan has the ability to be flexible to absorb those changes and allows your financial planner to make adjustments where needed to ensure your short and long terms goals are still achieved.

There are many examples out there of the benefits of engaging the services of a financial planner and going through the financial planning process. The FPA website has published a booklet with easy to read real life case studies which not only highlight the benefits of getting proper financial advice but also to help show the value that a good financial planner can provide to you.

Xero

2011-06-30T21:46:00.000-07:00

Xero software makes maintaining records and compliance easy! Real time income and spending updates allow you and your accountant to commumicate effectively and keep on top of your accounts, providing a better understanding of your position and allowing greater flexibility. As it is hosted in the 'cloud' there is no need for complex installation processes or backing up your data on a CD or usb. Simply use your secure login to access your accounts from anywhere, anytime. For more information visit the Xero website or contact an accountant at EFS.

EFS Bulletin July

2011-06-30T18:50:00.000-07:00

NEW WEBSITE

Since its inception, Elite Financial Solutions has always offered a broad range of Information Technology, Financial/Corporate, Business Development and other key services to meet your requirements in today’s rapidly changing business environment.

With this concept in mind, we are currently implementing an expansion of our IT services to incorporate online bookkeeping, ecommerce, and the continued expansion of our specialist activities. Therefore we are very pleased to announce the imminent launch of our new interactive web practice.

Services available online will include finance calculators, specialist content and valuable taxation information.

www.elitefinance.com.au

ASSET – YOUR INCOME

One in six women and one in four men between the ages of 35 and 65* can expect to be off work for 6 months or more due to an accident or disability, according to our Financial Planner, Christine Hallowes.

However despite these alarming statistics, few Australians consider the financial ramifications of being out of work for an ongoing period of time - until it happens to them.

THE FEDERAL BUDGET

The Federal Budget contained a number of relatively minor amendments, with the main focus on restricting spending to bring the Budget back into surplus by 2012/13.

There were several announcements relating to superannuation, tax and pensions that could have an effect on your financial position.

If you think you may be affected and have questions, our financial planner Christine can provide more information about what action you need to take.

THINKING ABOUT STARTING A NEW BUSINESS?

Before you launch into the process of setting up your own business, read through the suggestions below for some vital steps to consider:

Is it right for you?

It takes more than just a good idea to start a business. Commitment and dedication are also important because getting your idea off the ground can often involve long hours and many sacrifices – well worth it if you are passionate about your business.

You need to have good business management skills to keep the business running effectively. This is especially true since, according to the Australian Bureau of Statistics, most new enterprises fail within their first five years of operation!

TAX TIPS FOR SMALL BUSINESSES

Taxes are one of the most important issues facing small, growing businesses. Business owners need to ensure that they are meeting all their responsibilities to the ATO – and also seizing every opportunity to reduce their taxes.

Remember important deadlines

We are all aware that the ATO requires individual tax returns to be lodged by a certain deadline. Similarly, the ATO has deadlines for businesses to lodge activity statements, GST returns, FBT reports, PAYG withholding reports, superannuation and income tax returns.

URGENT ACTION NEEDED: UPDATING YOUR COMPANY’S CONSTITUTION

On 1 July 2010 the Government amended Section 254T of the Corporations Act 2001. Due to this change, Company Directors now have to satisfy each of the following three separate criteria before declaring to pay a dividend:

2011-06-30T18:46:00.001-07:00