A message from our Director:
Welcome to our September e-news.
Spring has sprung and consistent rain has resulted in a nice green tinge across the region. While we know farmers are not out of the woods just yet, it is great to see them getting some relief.
While it is almost business as usual across the north west, the constant linger of COVID-19 is still impacting some of our clients. For those receiving the JobKeeper wage subsidy it is important to remember the changes to business eligibility and payment rates that come into effect on 28 September. Don't forget you can download the Roach Morgan-Jones Guide to JobKeeper 2.0 from our website, which breaks down all the important information for you.
In light of the tough economic times we find ourselves in, I'm very excited to announce a new business advisory program called The Business Health Check by Roach Morgan-Jones. This 8-week program looks at the everyday issues that many small business owners struggle with - profitability, cash flow and compliance.
Given the current economic conditions we now find ourselves in, the program also includes strategies for surviving challenging business conditions, when to raise the red flag and how to plan for your business to perform at its best.
The program will commence on Monday, 19 October 2020 and will give business owners the chance to engage with experience business advisors.
You can find out more information on our website. But hurry, because numbers are strictly limited!
I'd also like to remind clients that Roach Morgan-Jones now offers business benchmarking. Benchmarking allows us to measure the performance of your business or a business you're looking to purchase against industry averages and similar businesses. Our in-depth reports break down each aspect of your business to give you an understanding of what areas need improvement. If you'd like more information about Business Benchmarking, give the office a call on (02) 6766 3777 or you can see an example of our reports on our website.
A business benchmark report is also included for each business that signs up for The Business Health Check.
And remember our Narrabri office is now being serviced fortnightly by myself and Senior Accountant, Andrew Shiels. So if you need to make an appointment, please get in touch.
Yours in business,
Several changes to the JobKeeper wage subsidy are now in effect and it is important that business owners understand what has changed.
The 2 new extensions of JobKeeper are for pay periods:
28 September 2020 to 3 January 2021 (Extension 1)
4 January 2021 to 28 March 2021 (Extension 2)
There are 2 tests to pass to receive JobKeeper extensions:
Employee eligibility test (which includes business participants)
You can be eligible for JobKeeper 2.0 even if you were not eligible for JobKeeper 1.0.
As with the 1st stage of JobKeeper (1 March 2020 to 27 September 2020) an employer must be carrying on a business and their turnover must fall by 30% or more for aggregated turnovers of $1b or less.
Employers will now need to reassess their turnover for each of the 2 new periods:
Extension 1 (28 September 2020 to 3 January 2021), you'll need to demonstrate that your actual GST turnover has fallen in the September 2020 quarter (July, August, September) and compare it to the same quarter in the previous year.
Extension 2 (4 January 2021 to 28 March 2021), you'll need to demonstrate that your actual GST turnover has fallen in the December 2020 quarter (October, November, December) and compare to the previous year’s quarter.
You must use a quarterly comparison not a monthly. The commissioner of taxation will have the discretion to set out alternative tests where the previous quarter is not appropriate or available.
Employee Eligibility Test
The new test date for assessing employees is 1 July 2020. Employees must be fulltime, part-time or long term casual employees, employed as of 1 July 2020.
This is applicable from the 10th JobKeeper fortnight i.e. 3 August 2020 pays onwards.
Once eligible, you must calculate the correct JobKeeper rates for each employee: The new rates are split into a high and low rate (based on average weekly work hours) in the 4 weeks prior to the applicable employment date either 1 March 2020 or 1 July 2020. The threshold is 20 hours. Is your business still eligible? If you pass the eligibility test, then you can continue to receive JobKeeper wage subsidy. It is important to look over changes to employee eligibility and payment rates to work out what you should be paying your employees. If you DO NOT pass the new eligibility test, then you MUST STOP paying you employees JobKeeper top up payments. All employees must now come off the wage subsidy. It is important you pay employees the correct amount, to avoid overpayment. If you need any assistance regarding business eligibility or payment rates, please give the office a call on (02) 6766 3777 or you can visit our website.
Now more than ever business owners need help and advice. In response to the current economic times Roach Morgan-Jones has developed THE BUSINESS HEALTH CHECK, an 8-week business advisory program designed to engage, motivate and inspire. The program looks at the everyday issues that many small business owners struggle with:
Developed from 25 years experience in helping and advising small business owners, the Business Health Check will help you understand your numbers, give you the confidence to make decisions and the control to drive your business profits. For one hour per week in face-to-face, small group meetings this program will give you the accountability, time and tools you have been looking for. COURSE COMMENCES MONDAY, 19 OCTOBER 2020 If you were eligible for the NSW State Government Grant of $10,000 or $3,000 this program is classified as an eligible expense.
Wondering how your business stacks up against the industry? Roach Morgan-Jones now offers Business Benchmarking.
Benchmarking allows us to measure the performance of your business or a business you're looking to acquire against industry averages across the country and businesses of similar size and location. It allows you to understand how each aspect of your business is performing and what areas need improvement.
The benefits of our benchmarking reports include:
Provides an in-depth industry analysis
Details key benchmark comparison (eg income, overheads, net profit, etc)
Offers strategies for business growth
We can model potential profit outcomes based on changes to operations, income, expenses or implementing a strategic plan
Yearly figures for a business can also be benchmarked against their own historical performance, which help you understand changes in business operations
We can prepare an estimated business valuation, which can be used as a guide if you are purchasing or selling a business.
For more information or to have a look at one of our reports, head to our website or give the office a call (02) 6766 3777.
After 20 years of using Banklink to assist clients in bookkeeping and BAS lodgement MYOB who now own Banklink have discontinued the product. It has been replaced with a similar platform which we will use to replace Banklink.
Rest assured for those of you who receive our monthly and quarterly coding reports this will continue. You may notice the reports look slightly different, but the functionality and system will remain the same from your end.
In the next few weeks you may receive an email from us with a link requesting a Google review.
We love feedback and if you are happy with our work we would love you to share this by completing a Google review. These reviews only take a few moments to complete and help us promote our business.
Your feedback is greatly appreciated.
At Roach Morgan-Jones we are always focused on providing the best client service and turnarounds times. Our goal is to make sure our clients are well cared for receive the advice and assistance they need.
We now find ourselves at a point of having some additional capacity at our Narrabri & Tamworth offices so have re-opened our books to new clients. For a couple of years now we have not taken on too many new clients.
If you know of any business looking for a new accountant and are happy with our work we would appreciate your referral.
Travelled for business?
Running your business from home?
The ATO has released information for business owners to help them understand which expenses can be claimed at tax time.
For more information or to download the factsheets, visit the ATO website.
Did you know you can vary your PAYG instalments if you think you will pay too much compared with your estimated tax for the year. To assist businesses affected by COVID-19, the ATO won't apply penalties or interest for the 2020-21 income year for excessive variations when you make your best attempt to estimate your end of year tax.
You can find more information here.
Please call the office on (02) 6766 3777
to make an appointment!