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The Importance of Getting the Superannuation Guarantee Correct!

The Importance of Getting the Superannuation Guarantee Correct!

The ATO now receives information from the employees’ superfund so they can match this against superannuation that should be paid by the employer. This process, known as data matching, means more than ever employer’s need to be on top of their superannuation obligations to avoid potential penalties like the Superannuation Guarantee Charge (SGC).

Superannuation Guarantee (SG)

Generally, the superannuation guarantee applies to employees who are over 18 years and are paid at least $450 (before tax) per month. This includes full-time, part-time and casual employees.

As part of an employee’s employment conditions the employer must pay the super guarantee into the employee’s chosen super fund. The amount is calculated as a percentage of the employee’s Ordinary Time Earnings (OTE) which includes commissions, allowances and bonuses. The current percentage is 9.5%.

Employers have 28 days from the end of the quarter to make the SG payments to their employee’s superannuation fund(s). See Table 1 for the payment due date.

Minimum Pay Rates: Employers need to ensure they are adequately paying their employees based on the appropriate award, enterprise agreement or if neither apply the national minimum wage rate that is annually reviewed.

What if you fail to pay the Superannuation Guarantee on time?

For employers that fail to pay their SG payments to their employee’s super funds by the due date they will be liable to pay what is called a Superannuation Guarantee Charge (SGC) to the ATO.

What you need to know about the Superannuation Guarantee Charge:

  • The charge consists of three amounts
    1. A SG shortfall – the amount of SG the employee(s) was not paid
    2. A nominal interest rate of currently 10%
  • An administration fee of $20 per employee per quarter
  • The SG shortfall amount doesn’t just include Ordinary Time Earnings (OTE). It is calculated using the employee’s entire salary or wages which includes any overtime or annual leave loading.
  • The Superannuation Guarantee Charge will not be tax deductible to the employer hence they cannot claim the super contribution or any additional costs or penalties as a tax deduction.
  • The Superannuation Guarantee Charge scheme is currently self-assessed by the employer and the onus is on them to report and correct any missed superannuation contributions.
    • Employees may contact the ATO if they have reason to believe that they are not receiving the correct SG amount from their employer.
    • With the commencement of Single Touch Payroll the ATO will soon be able to track non-compliance via their integration with the Super Funds and SuperStream gateway providers.
  • The payment of the Superannuation Guarantee Charge must be accompanied by a Superannuation Guarantee Charge Statement. Failure to lodge the SGC Statement on time may result in an additional levy of up to 200% of the charge amount.
  • Once the ATO receives the SGC Statement and payment they will transfer the shortfall amount and interest to the employee’s nominated super fund.
  • Employers can contact the ATO to arrange an extension of the cut-off date however interest will continue to accumulate.
  • The ATO has a number of actions available to deal with non-payment of SGC debts including SGC audits and issuing Director Penalty Notices

Table 1

Quarter Period SG payment due date SGC statement & SGC due date
1 1 Jul – 30 Sep 28 October 28 November
2 1 Oct – 31 Dec 28 January 28 February
3 1 Jan – 31 Mar 28 April 28 May
4 1 Apr – 30 Jun 28 July 28 August



Paying your employee’s superannuation obligations on time is of critical importance as the Superannuation Guarantee Charge and potential ATO audit can quickly cripple a business’ cash flow.

To ensure you are being compliant:

  • Know the relevant Awards that apply to your employees
  • Ensure all employees are paid the correct amount per the relevant Award or Agreement
  • Dedicated bookkeeping or payroll software can assist in this regard
  • Ensure the employee superannuation guarantee contributions are paid on time and via a SuperStream compliant gateway


If you have any queries, or need assistance to get your superannuation obligations on track, contact our office:

Watts Price Accountants (Horsham) 03 5382 3001 or

Knights Accounting (Rupanyup) 03 5385 5330 or

Claiming the GST on a new motor vehicle purchase

Claiming the GST on a new motor vehicle purchase

If your business has motor vehicles (under 1 ton & less than 9 passengers) you are probably already aware of the logbook method for claiming business related expenses such as running costs and decline in value.

Earlier this year there was a change to the method for calculating the GST you can claim on the purchase of a new vehicle that now makes it imperative to use a logbook (or diary) for the first four weeks after the new purchase to calculate your business-use percentage for the purpose of calculating the GST you can claim.

For those already keeping a logbook there is no additional requirements as you can use your existing logbook. Our recommendation is that businesses with a motor vehicle should keep a logbook for a continuous period of at least 12 weeks commencing from time of purchase of a motor vehicle, by doing so you satisfy the requirements for calculating both:

  • the GST you can claim on the new motor vehicle purchase and
  • business related expenses you can claim

By keeping a logbook for a continuous period of at least 12 weeks you satisfy the tax office recording requirements for 5 years before you are required to start the process again (if still required and assuming there have been no material changes to your motor vehicle use).


Can I claim the GST on a new car purchase?

Generally speaking, you can claim GST on the purchase of a new motor vehicle if you meet the following criteria:

  • you intend to use your purchase solely or partly in carrying on your business and the purchase does not relate to making input-taxed supplies
  • the purchase price included GST
  • you provide, or are liable to provide, payment for the item you purchased
  • you have a tax invoice from your supplier


How much GST can I claim on a new car?

  • When it comes to claiming GST on a car, it’s very similar to claiming GST on any other business expense.
  • You can only claim the GST to the percentage that it relates to earning an income in your business.
  • So you need to keep a logbook. A logbook tracks the number of business-related kilometres that you drive, and your total kilometres in that time.  This will give you your ‘logbook percentage’.
  • Your logbook percentage will tell you the percentage of GST, and tax deductions for car related expenses that you can claim in your BAS and tax return.
  • Also note that if you buy a car with a GST-inclusive value above the LCT (Luxury Car Tax) threshold, there are limits to the GST you can claim based on the fuel efficiency of the vehicle


When can I claim the GST on a new car?

  • If your business is registered for GST on a cash basis then you can claim the GST on the new car in the quarter that you take delivery (or settlement) of your car. This is because either your finance company has ‘paid’ for the car on that date.  Or, you’ve paid for that car in full from your bank account.
  • Your upfront claim of the GST can be used to fund the first few instalments payable to your finance company.

If you have any questions regarding claiming the GST and/or business-related expenses on motor vehicles please contact our office.

Watts Price Accountants (Horsham) 03 5382 3001 or

Knights Accounting (Rupanyup) 03 5385 5330 or

Economic Response To Coronavirus

In response to the tougher economic conditions the government has announced a stimulus package that will assist most small businesses in some form.

Below are the measures introduced by the government as summarised by NTAA (National Tax & Accountants Association). We have also included a number of links to more detailed articles on the specific incentives.

If you would like to discuss if any of these incentives are appropriate to you please contact our office by phone or email.

Government announces increased tax benefits in response to the Coronavirus

The Government has announced its economic response to the Coronavirus in the form of a $17.6 billion economic stimulus package. The package has been marketed as a measure to protect the economy by maintaining confidence, supporting investment and keeping people in their jobs.

It is expected that an appropriate package of Bills (which will provide further detail in relation to the proposed measures) will be introduced into Parliament in the final sitting week in March 2020 (i.e., presumably from 23 March 2020) for urgent consideration and passage.

The Key Tax Measures include:

• From Thursday 12 March 2020, the instant asset write-off threshold has been increased from $30,000 (for businesses with an aggregated turnover of less than $50 million) to $150,000 (for businesses with an aggregated turnover of less than $500 million) until 30 June 2020.

• A time-limited 15-month investment incentive (through to 30 June 2021) which will operate to accelerate certain depreciation deductions. This measure will also be available to businesses with a turnover of less than $500 million, which will be able to immediately deduct 50% of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost. As announced, this measure is proposed to only apply to new depreciating assets first used, or installed ready for use, by 30 June 2021.

• Tax-free payments of up to $25,000 for eligible small and medium businesses (i.e., with a turnover of less than $50 million that employ staff) based on their PAYG withholding obligations.

• Tax-free payments of $750 to social security, veteran and other income support recipients and eligible concession card holders. It is estimated that around half of those who will benefit will be pensioners. These payments will commence to be automatically made from 31 March 2020.

• Administrative relief from the ATO for some tax obligations for people affected by the Coronavirus outbreak, on a case-by-case basis. Additionally, the ATO is setting up a temporary shop front in Cairns within the next few weeks with dedicated staff specialising in assisting small business and is currently considering further temporary ‘shop fronts’ and face-to-face options.

In addition to these key tax measures, the Government has also announced additional economic stimulus measures including:

• Wage subsidies to support the retention of apprentices and trainees – Employers with less than 20 full-time employees may be entitled to apply for Government funded wage subsidies amounting to 50% of an apprentice’s or trainee’s wage for up to nine months from 1 January 2020 to 30 September 2020. The maximum subsidy for each apprentice/trainee is $21,000. Importantly, where an employer is not able to retain an apprentice, the subsidy will be available to a new employer that employs that apprentice. It is proposed that employers will be able to register for the subsidy from early-April 2020.

• Assistance to severely affected regions – The Government has also committed to set aside $1 billion to support regions and communities that have been disproportionately affected by the economic impacts of the Coronavirus, including those heavily reliant on industries such as tourism, agriculture and education.

This will include:
– The waiver of fees and charges for tourism businesses that operate in the Great Barrier Reef Marine Park and the waiver of entry fees for Commonwealth National Parks.
– The provision of additional assistance to help businesses identify alternative export markets or supply chains.
– Further targeted measures to further promote domestic tourism.

Useful links
The Government’s economic response targets four key areas:

  • Delivering support for business investment
  • Cash flow assistance for employers
  • Stimulus payments to households to support growth
  • Assistance for severely affected regions

Our Contact Details

Watts Price Accountants 03 5382 3001 or
Knights Accounting 03 5385 5330 or

Employer Finalisation Report

Important Change for Employers

Single Touch Payroll (STP) Finalisation Report

The 2019 – 2020 financial year saw the introduction of Single Touch Payroll for all small employers (those with less than 20 employees) which meant employers needed to start providing Wages, PAYG tax and superannuation information in an electronic format to the Tax Office.

As the 2019 – 2020 financial year draws to a close, employers need to be aware of their obligation to lodge a Finalisation Report by July 14, 2020. This finalisation report will provide the ATO with annual Gross wages, PAYGW tax and super information for all staff employed during the financial year. Until this is lodged employees will not be able to lodge their own tax returns!  This replaces the need to issue a Payment Summary to the employee.

All employers will need to:

  • Use their STP solution to ensure the Finalisation Report is lodged by 14 July 2020
    • Check the links below for the relevant software instructions
  • Inform their employees that:
    • They will not be issued with a payment summary
    • They can access their salary information via their myGov account via the ‘Income Statement’
    • Let employees know that they should not lodge their tax return until their status reads ‘Tax Ready’ (check myGov or ask your accountant)

Where Watts Price or Knights Accounting process your STP obligations:

  • We ask that you process your transactions monthly rather than wait until the end of the quarter i.e. process all transaction for April, then May and finally June as soon as possible at the end of the relevant month rather than doing them all in July
  • In June we will request from you a total by employee of the wages paid to date for the year so we can compare this to the total of the wages we have processed for the Year to Date (YTD) via STP
  • The first two weeks in July we will prioritize the processing of these Finalisation Reports to ensure employers meet the July 14 deadline.
  • By July 14 we will contact each employer with a report of the wages for the FY2020 to sign off prior to the lodgement of the Finalisation Report
  • If you are going to be away during June or July or if you will not be paying wages at this time please contact us so we can arrange to lodge your report earlier than the deadline.

Useful Links

ATO STP Finalisation Factsheet

Update Pay Events via Quickbooks Online

STP and Finalisation Xero

End of Year Finalisation MYOB

If you have any questions please contact Watts Price on 5382 3001 or or Knights Accounting on 5385 5330 or

GST Implications for Holiday Houses

GST Implications for Holiday Houses, Stayz (HomeAway), & Air BnB style Properties

Harold and Mage, who live in Ramsay Street Ballarat, currently rent 2 short term stay Holiday 3 Bedroom houses in Torquay through AirBnB that they have operated since 2010. They are increasing their investment in this area by adding another 2 x short term stay, newly constructed 3 Bedroom units to their portfolio in Ballarat available for booking from January 2019. In the future, they may also expand their operation to offering (yet to be constructed) a short term stay 2 Bedroom accommodation in Daylesford on land they own through the same business structure.

Other considerations to note:

  • They lease an entire house/unit when booked. i.e. they do not sell accommodation by the room.
  • They generally use external cleaners for the Torquay property and will clean the Ballarat / Daylesford units themselves after a stay
  • All units/houses are fully furnished, linen and towels are provided, TV’s, DVD’s, Washing Machines, Dryers, fully equipped kitchens, cooking utensils and pots/pans etc.
  • They monitor customer reviews and use AirBnB Manager software features to keep track of which properties are more popular, changes in customer ratings and summarising sales by house/units.
  • They will generally attend to any property maintenance themselves
  • They will make any improvements suggested and required to increase their customer rating on the AirBnB, to attract new clientele and remain competitive in the market.

Hence, a reasonably sophisticated operation of a network of short term stay properties and as a clear alternative to motel/hotel accommodation in their respective locations.

Q – Should the Accommodation Sales attract GST as a Taxable Supply OR be treated like any other rental property as input taxed supplies ie. Rental income?

A – Generally, Accommodation sales for the above example are input taxed and will not attract GST.

Q – Can we claim the GST on the cost of construction of the Ballarat and future Daylesford properties?

A – No, given that the actual and intended use of the property is for accommodation sales that are input taxed sales, the construction costs associated will also be input taxed.



The ATO provides guidance with the two following rulings

  • GSTR 2012/5 Goods and services tax: residential premises (NO GST APPLIES)

where the premises are occupied as a residence              OR for residential accommodation, regardless of the term of occupation.

  • GSTR 2012/6 Goods and services tax: commercial residential premises (GST APPLIES)

Which includes the following seven paragraphs:

  • a hotel, motel, inn, hostel or boarding house;
  • premises used to provide accommodation in connection with a school;
  • a ship that is mainly let out on hire in the ordinary course of a business of letting ships out on hire;
  • a ship that is mainly used for entertainment or transport in the ordinary course of a business of providing ships for entertainment or transport;
  1. da) a marina at which one or more of the berths are occupied, or are to be occupied, by ships used as residences;
  • a caravan park or a camping ground; or
  • anything similar to residential premises described in paragraphs (a) to (e).

Several factors also come into play as to whether the operation is a supply of Commercial Residential Accommodation such as those listed at paragraph 41 of GSTR 2012/6, but not limited to the following:

  • Commercial intention
  • Multiple occupancy (unrelated guest stays in the one unit)
  • Holding out to the public
  • Accommodation is the main purpose
  • Central management
  • Management offers accommodation in its own right.
  • Provision of, or arrangement for, services (Concierge type services)
  • Occupants have status as guests

Harold and Mage can tick many of these boxes, but they lack multiple occupancy and concierge type services like a Bed and Breakfast offers. It is the lack of these type of factors that would likely deem it the provision of Residential Accommodation only as opposed to Commercial Residential Accommodation.

If you are unsure of how your circumstances please contact us at Watts Price Accountants



Laurie Liston, Senior Accountant
Certified Practising Accountant
Watts Price Accountants




This piece was prepared and published as at 14 March 2019



In relation to the above example and Names, characters, businesses, places, events, locales, and incidents are either the products of the author’s imagination or used in a fictitious manner. Any resemblance to actual persons, living or dead, or actual events is purely coincidental. Although the author and publisher have made every effort to ensure that the information above was correct at publication time, the author and publisher do not assume and hereby disclaim any liability to any party for any loss, damage, or disruption caused by errors or omissions, whether such errors or omissions result from negligence, accident, or any other cause.

Data Breach Notification Laws

Are you prepared for the new Data Breach Notification Laws?



On February 22, 2018 the new Data Breach Notification Laws came into effect.

Many Australian organisations are now legally required to notify affected individuals, and the Australian Information Commissioner, of any eligible data breach affecting personal information.

Does this affect your business?

This new legislation applies to any organisation currently subject to responsibilities under the Privacy Act, which essentially includes businesses and not-for-profit organisations with an annual turnover of $3 million or more, and a number of other identified organisations specified in the Act, such as health providers, credit reporting bodies, employee associations and service providers under a Commonwealth contract) and any entity that receives an individual’s tax file number (TFN).

What is an eligible data breach?

An eligible data breach arises when the following three criteria are satisfied:

  1. there is unauthorised access to or unauthorised disclosure of personal information, or a loss of personal information, that an entity holds (soft or hard copy documents)
  2. this is likely to result in serious harm to one or more individuals and
  3. the entity has not been able to prevent the likely risk of serious harm with remedial action

What constitutes Personal Information?

Personal information includes names, signatures, address, telephone number, date of birth, medical records, bank account details, credit information… or any other personal information about an identified, or reasonably identifiable person.

What Do You Do If an Eligible Data Breach Occurs?

If you’re an affected organisation who suspects an eligible data breach has occurred, you have 30 days to assess the breach and determine whether notification is required.

Failure to comply with the mandatory notification regulation is viewed as “interference with privacy of an individual”, and is punishable by forced notification, public apologies, compensation payments and fines up to $360,000 for individuals and $1.8 million for organisations.

Prevention is the best medicine

All business owners, not just those deemed to be affected organisations would be wise to consider what steps they can take to prevent any potential data breaches, this may include:

  • Ensuring adequate security measures are in place.
  • Preparing a data breach response plan
  • With the increasing threat of Cybercrime, Cyber Insurance becomes an important consideration for any business or organisation

What steps has Watts Price Accountants undertaken?

As an organisation that holds client’s TFN and other personal details we have always been overly diligent about security.

Some of the measures we use include:

  • Staff training in how to identify issues, what to do & who to contact
  • IT Usage Policies
  • Mandatory Strong password policy
  • Use of Two Factor Authentication
  • Automatic security and system updates for all computers, server and our website
  • Use of document destruction bags for paper documents and a fire-protected compactus for physical file storage
  • Use of a Firewall to stop ransomware, encrypted threats and phishing attacks, over not only wired but also wireless and mobile networks
  • Anti-virus software
  • Messaging Security software

If your business needs assistance in preparing for the new Data Breach Notification Laws or just some advice on security measures in general please contact Richard Kemp our Practice Manager on 5382 3001 or via email at

Portfolio Management Investment Property Market Presentation


Wednesday night we were fortunate enough to have Steve, Jock, Johnno and Christine from Portfolio Management join us for an information evening on the state of the investment property market.

For those that missed it, the main themes to come out of the presentation were:

  • Over the long term property can provide a great return on your investment
  • Population growth is a key indicator to look at when selecting an investment property as there is a correlation with demand for property in that area
  • When looking to purchase residential property look at suburbs in high population growth areas with:
    • Established infrastructure e.g. roads, good transport links, hospitals, schools, shops etc
    • Where there is limited potential for more land to become available
  • The value of the land is important, look at properties where you can buy below replacement value e.g. if the house burnt down it should cost more to rebuild than it was worth
  • The purchase of existing dwelling is preferable to buying new or off the plan propertiesGeelong_House
  • Don’t be afraid to add value – often a bit of a makeover can add significant long term value
  • It is getting harder to find good value in capital cities like Sydney, Melbourne and Brisbane so be selective
  • Be prepared to look further a field to find the right mix of yield and capital growth, for instance presently parts of Geelong appear to present good value
  • Record low interest rates could be here for a while making it easier to get started
  • There is a trend toward investors using SMSF (Self Managed Super Funds) as an investment vehicle to get into both residential and commercial property

The team at Portfolio Management can help with:

  • Selection based on your criteria or from investment properties they have already researched and are ready to purchase for the right buyer
  • Expert advice
  • Screening of potential tenants
  • Property inspections and more…

To get started please contact your accountant at Watts Price Accountants to discuss just how Portfolio Management can assist you reach your investment property goals.

Contact Details:

Ph: 03 5382 3001


5 Essential Services


5 Essential Services for Small Business Owners


A recent report published by research house Bstar has highlighted the lack of preparedness of many business owners.


The recent Bstar 2016/17 SME Research Report revealed the following observations:


·         Indicates 72 per cent of small businesses don’t have a formal business plan.

·         Only 34 per cent of SMEs spend time on strategic planning.

·         Further, 95 per cent of SMEs believe opportunities exist to grow their business, however only 22 per cent have a plan in place to grow their business’ value.

·         SMEs also have an “urgent” succession planning need, with 90 per cent of SMEs not having a formal succession plan in place.

·         Also, 70 per cent of SMEs believe their business has key person risk, with only 30 per cent believing their business can operate without them.



Does this sound familiar? If so we would like to draw your attention to the following essential service offerings:

  1. Business Plan

A business plan is a formal statement of business goals, reasons they are attainable, and plans for reaching them. It will usually contain background information about the organization or the relative strengths and weaknesses compared to competitors as well as macro issues such as opportunities and threats.

A business plan will help a business to obtain finance, it helps identify potential problems, provides a greater understanding of your marketplace, it provides direction and clarity as well as greater accountability.

Ideal for medium to long term planning and giving your team direction!


  1. Strategic Planning

Strategic planning is a business management activity that is used to set priorities, focus energy and resources, strengthen operations and ensure that employees and other stakeholders are working toward common goals.

It also helps establish agreement around intended outcomes/results, as well as assessing and adjusting the business direction in response to a changing environment.

Ideal for establishing and communicating your short to medium term priorities!


  1. Business Model

A business model is the way in which a company generates revenue and makes a profit from business operations.

A review of your business model involves looking at core activities in relation to current customer and market demands, how efficient the business is, how the business’s goals are progressing, your current financial position and where you sit compared to your competitors in the market.

Ideal for assessing where future profits will come from when growth stalls!


  1. Succession Plan

Succession planning is a process for identifying potential buyers or developing people with the potential to fill key business leadership positions in the business.

Succession planning will help you to maximise the value of your business, it will help identify the main pathways and help set relevant timeframes. It will help identify the key financial considerations, any potential risks that need managing and what personnel and skills needed to be retained within the business.

Ideal for planning and maximising the return from your departure from the business!


  1. Key Person Dependency Risk Analysis

Key person dependency is when either you or one of your employees is solely responsible for something and there is no back-up plan.

To counter key person dependency the focus needs to be on developing the right systems for your business, finding the right talent and/or skillsets, delegation and empowerment, time management, setting priorities while still having adequate control through monitoring the right KPIs and appropriate accountability.

Ideal for business owners that need to free up time for other interests!


All business owners need to plan for their success. If you need assistance in regard to the topics above or any other business development issues we encourage you to contact one of our knowledgeable team members as soon as possible.


Improve Your Cash Flow with EziDebit

Illustration depicting many roadsigns with a cash flow concept. White background.

Improve Your Cash Flow with EziDebit

How Can You Get Paid Quicker?

At Watts Price Accountants we use a provider called EziDebit. They provide Direct Debit and BPAY facilities for Small Businesses so you can greatly improve your cash flow position. That’s correct you can access these great facilities without going through your commercial bank! If you want to speed up your collections process consider EziDebit. Read more below.

You’ve probably used direct debit personally, so you know how convenient it is as a customer. You can set and forget a payment schedule, resting assured bills will be paid on time. As a business, this means you and your customers can focus on other things, and reduce late payment conversations with your customers.  Ezidebit’s direct debit helps your business take control over cash flow by ensuring customer payments are collected on time, every time.  With direct debit, customers authorise payments to be collected automatically from their credit card or bank account. Ezidebit collects and manages these payments on your behalf and transfers settlement amounts to your bank daily, keeping you in control of the payment process, and your cash flow. Whether your business runs on scheduled or on demand payments, for either fixed or variable amounts, Ezidebit can help. We have options for self-serve or managed accounts allowing you the level and flexibility that works best for your business.

With direct debit you get:

  • Reliable cash flow
  • No contracts
  • Reduced admin time chasing payments
  • Local support available by phone or email
  • Increased customer satisfaction
  • Competitive fee structure

Ezidebit integrates with leading software providers, allowing your business a seamless payment solution that saves time and money and reduces unnecessary admin work. Individually receipting payments and chasing late payments will be a thing of the past.

10 Crucial System Tips for Small Business

10 Crucial System Tips for Small Business


Have you ever stopped to notice just how many business owners you come across that are always under the pump, jumping from one urgent problem to another, working ridiculous hours just to stay on top of things. In my experience these business often suffer from a lack of quality systems. Therefore the focus of this article will be looking at some crucial systems small businesses owners can implement to improve the operations of their business.

Firstly, so we are all on the same page let me simply define a system as a way of performing any given task in a consistent way that will give a predictable outcome. This may include computer hardware or software but it is certainly not limited to them. It may include application forms, scripts or any number of resources including people that simplify your various business processes.

10 Systems Tips for Small Businesses

1.    Possibly the most important reason to develop great business systems is to create a better, more consistent customer experience. Look at your customer touch-points and ensure you are delivering a great experience through systems that ensure consistency and reliability.

2.    Don’t rush and make hasty decisions regarding your systems. You should have a strategic plan in place and this should help determine the best systems for you. Your systems need to align to your goals and your vision for the business.

3.    For a small business it is essential that the owner is able to step away from the day to day operations and work on the business. Systems will create that invaluable freedom.

4.    Some basic yet often overlooked systems revolve around your people. Don’t forget your people systems. Ensure you have Performance Standards, Position Descriptions, Procedural manuals, Staff Reviews and Reporting systems in place to get the most from your team members.

5.    Systems help grow your potential sale price. When looking to sell your business a potential buyer is looking at how they can run it without you. If you have no documented systems this will have a detrimental effect on your businesses valuation.

6.    Many businesses implement new systems and they turn out to be a disaster as the team reject them. To maximise the chance of successful implementation don’t impose change (be consultative), communicate the benefits and address any fears.

7.    Avoid biting off more than you can chew. Lack of time and resources can quickly kill good intentions so start small and build momentum through the successful implementation of smaller projects before attempting larger changes.

8.    Systems are a great way to grow your business. I see too many businesses where everyone is busy but there is no growth. The development of systems will create the necessary capacity to help your business grow.

9.    Don’t set and forget. Once you have implemented a system don’t assume it will manage itself. Ensure you review the system at regular intervals and make any changes required to improve the system.

10.Off the shelf software is often expensive and generally better suited to larger organisations than small businesses. When looking for a solution don’t be afraid to get a quote from a Systems Analyst or Software Developer that can develop a customized system for your business on an hourly rate.

Bonus: Get your team involved by creating a culture of continual improvement. Encourage team members to challenge the status quo in an environment that supports and rewards change.

There are a host of reasons why you should be systemizing your business, from improved customer experience, to more freedom, to a higher business valuation, higher productivity, whatever your reason there are numerous options available to you.

Richard Kemp