Small business NAS guide – backup & share

Posted on September 9, 2021 by Angus Jones

What would happen if a laptop was stolen or, more commonly, if a hard drive failed in your PC. A backup strategy of your critical IT gives you protection when something goes wrong. Consider what the cost to your business would be of losing that data. Backup of data can also be combined with data sharing, so the relevant people in your business can share and work on the same files. In this guide, we will look at the ideal solution in buying a small business NAS. This guide will cover why you need a NAS, what you need to understand about a NAS, and how to decide which small business NAS.

A NAS or Networked Attached Storage is a computer attached to your IT network that provides storage for files that- can be shared with multiple PC’s on your business network or via the internet for authorised users.

WHY should buy a small business NAS?

NAS technology and simplicity have come a long way over the years. A NAS solution will provide you with a robust method to keep your data secure and share files easily amongst your business.

To understand more about storage and file-sharing, read our other guide first

Very simply, a NAS is like a local Google drive replacement. Any PC or client device on your network can connect to the NAS to backup data and share files.

This will ensure that you can restore data to continue to run your business in the event of a disaster. It also allows your employees to be more productive by sharing files and collaborating on projects.

WHAT does a NAS do?

A NAS is an appliance which means it is designed to do one thing very well. Although it is a computer, it is not an extremely powerful computer. It is not intended to have a monitor or keyboard attached to it. From a business perspective, it can potentially be used to do additional tasks, including video streaming, website and email hosting or photo management.

NAS File Sharing

A folder will appear on your computer with files stored on the NAS that you and other authorised uses can access and edit.

NAS Data Backup

A backup of your PC is made onto the NAS. Enabling you to recover files in the event of a disaster. Note that a NAS can further secure data by duplicating its data internally and or externally to the NAS box.

Advantages of a NAS vs Cloud Storage

A NAS solution will more likely cost more than using a cloud subscription but:

Data is all in your control and secure within your business. Versus being on the cloud most likely hosted in another country
A NAS makes sharing a large file easy. Large files on the cloud will take longer to load and will cost you more to store.
Total control of your backups. You control your ability to restore data.
Fixed upfront cost versus variable unknown.
A NAS is a long-term solution that can grow with you.
Photo’s, videos, and presentations can be stored in their full resolution without making quality sacrifices to keep them on the cloud.

Remote access is possible from any internet-connected location. Still, it is possible to switch this functionality off if you have any security concerns.

HOW do you decide which NAS is right for you?

You should consider the following features when making your decision on which NAS will suit your business:

Number of drive bays – This is the number of slots available to insert a hard drive. For redundancy, we suggest you have a minimum of two bays with a recommendation of 4 for a small business allowing expansion.

Hot-swap trays – if your NAS supports hot-swap, it means a disk can be removed whilst the NAS continues to run. Depending on how the drives are configured, you could exchange a faulty drive with no interruption to the NAS file serving.

Type & Size of drives – Drive come in two physical 2.5 or 3.5 inches sizes. These drives are where your data is stored and could be a Hard disk drive or the much more expensive Solid State Drive (SSD), which is faster finding data. The capacity of the drives is measured in TB. You should buy based on your capacity needs.

Drive configuration – This should be a choice as part of your setup. You may hear the technical terms RAID (Redundant Array of Inexpensive Disks) or JBOD (Just Bunch Of Disks). Your ideal setup is RAID with two or more drives, where data is duplicated onto both drives; thus, you still have all your data if one drive fails. This means two 8TB drives will only give you 8TB total storage. Adding additional drives will add storage to your existing storage array.

Cache acceleration – Some units offer the ability of a solid-state drive in the form of an NVMe SSD. These SSD drives are expensive, but when used in the NAS can considerably increase performance by acting as a buffer and caching system to speed up file transfer.

Memory expansion – Some NAS units will allow additional memory to be added. This will improve the multitasking performance of the unit. This will future proof your needs for this box. If you add more users (PC’s), extra memory will improve performance.

Lan port – This is the ethernet port on the unit for connecting to your router or switch. Its speed will be measured in Mb or Gb. Look for a unit that supports 1Gb as a minimum. The throughput of a 1Gb port can transfer up to a 125MB file in one second. A wired NAS will give you better performance and reliability than one attached by W-Fi

USB ports allow a printer to be shared, additional drives to be attached, and backing up data for offsite storage.

Tamper-proof – If the NAS has no power or drives have been removed, the unit will not function. Any safeguards like lockable storage bays will reduce accidental downtime.

OS support – Ensure the NAS will work with your PC or MAC and the application you want to use it with.

Wizard setup – Setting up a NAS does require some IT knowledge. Vendors supplying setup wizards will make the setup process far easier. This is a very powerful and productive tool for your business, and extra help can be obtained by talking to an IT professional if it is beyond you.

Security – Does the solution have comprehensive built-in security tools to protect your NAS against evolving threats. Does it support data encryption if you require that level of protection?

Software – Included software tools can be very powerful. This might include deduplication software that only saves duplicates of files once, thus saving space. Backup software that allows you to manage all your PC’s backup from a single console giving you extra peace of mind.

Backups – Review what software is provided and can do both scheduled backups and real-time backups. A single management console to monitor your staff backups will help you ensure backups are complete to aid business recovery if required.

HINTS

Document version control. Some NAS solutions allow you to recover previously saved old versions of a document for when you deleted information that you should not have.

Synology is the brand with the highest reputation for small business NAS requirements. Small Business Answers is using a Synology DiskStation DS420+ NAS. This 4-drive server can support up to 108TB of storage and is ideal for a small business at an affordable price. It does not come with any hard drives. These can be purchased based on your needs. You can add extra storage (drives) and memory as your business grows to meet future needs. The set-up wizard and included software make this a simple solution to implement and deliver more than most small businesses require.

SUMMARY – Small Business NAS

A NAS will give you business peace of mind that employees can easily collaborate. Also, their data is backed up, meaning you can recover files easily and ensure business continuity.

A business-appropriate NAS solution will make implementation simple with little ongoing maintenance.

A NAS for small businesses can be purchased at leading electrical retailers, office supply and IT resellers.

Synology is offering a free webinar to learn more about Upgrading your backup solution to meet modern backup challenges
Thursday, 7 October 2021 | 14:00 – 15:00 AEDT (Sydney, UTC+11)
Register Now

GST do I have to pay it?

Posted on May 6, 2021 by Angus Jones

They say two things are certain in life, death and taxes. We certainly hope your small business lives a long and prosperous life and that you never fall foul of the taxman. In this guide, we will explain the GST and show you that it is not a tax you pay but instead one you help collect from the final consumer.

The Goods and Services Tax (GST) is a broad-based tax of 10% on most goods, services, and other items sold or consumed in Australia. If you are registered for GST, you must add GST on all your applicable taxable sales unless they are GST-free or input-taxed. You are able to claim credits for GST included in the price of business purchases of goods and services.

WHY do I need to register?

If your business exceeds $75,000 turnover or provides taxi or ride-sharing services you must register and charge for GST! You need to register within 21 days of exceeding the turnover threshold.

WHAT are the steps to follow for Standard GST registration?

Register for GST online, by phone or through a registered agent. Make sure you get an Australian Business Number (ABN) first. https://www.ato.gov.au/Business/GST/Registering-for-GST/
Determine which of the goods and services you sell must include GST.
Issue tax invoices when you sell something which GST is included you must issue an invoice clearly showing the 10% GST added. For example, $100 x 1.1 = $110 inc GST. Under Australian legislation, all goods and services pricing should be indicated as total price with GST included. For example, from the previous example, $110 inc GST, not $100 ex GST.
GST credits for anything that you have bought for your business. Collect tax invoices that show GST has been paid . Link

Australian GST-free products and services
Most basic foods, some education courses and some medical, health and care products and services are exempt from GST.
Exports of goods and services from Australia are generally GST-free.
The supply of a service is GST-free if the recipient of the service is outside Australia.
Further info

Your accounting system should clearly show how much GST you have collected and paid. (Be sure to read our essential guide on Accounting software as this will simplify the process). Ensure you put aside any GST money you have collected, as it must be paid to the tax office and it is not your business’s revenue. You will pay your GST collected minus your allowable credits to the ATO.
Lodge a BAS statement. A Business Activity Statement (BAS) is your report to the ATO on your GST activity. You can lodge online through MyGov, the ATO Business Portal, directly through some accounting software, tax agent, or mail.
If your turnover is less than $20 million you must lodge quarterly otherwise monthly. More details can be found in our How to Complete a BAS guide.

The Australian tax office requires GST invoices to include certain information and this will differ based on the sale being below or above $1000. The above $1000 format can be used for the lesser value. The specific requirements and a suggested format can be found here https://www.ato.gov.au/business/gst/Tax-invoices/

BAS due by Quarter	Due date
1. July, August, and September	28 October
2. October, November, and December	28 February
3. January, February, and March	28 April
4. April, May, and June	28 July

HINTS

Keep good records
Ensure your sales reconcile with your bank statements
Keep all your tax invoice and GST records for 5 years
GST is not claimable on private expenses such as entertainment and food
All claims must be in Australian dollars
When claiming a tax credit for less than $82.50 for you only need one of the following; a tax invoice, a cash register receipt, a receipt, or an invoice.
You cannot make credit claims for invoices that do not include GST
Further GST and BAS tips can be found on the ATO website

If you sell something that is GST exempt you can still claim credits for the GST included in the price of purchases you use to make your GST-free sales.

SUMMARY – GST do I have to pay it

In summary, GST will be part of your business, so ensure you keep accurate records and employ an appropriate person to help and/or use a software tool to ensure you stay compliant.

Car Expenses

Posted on May 3, 2021 by Angus Jones

Work-related car expenses are among the simplest business expenses that can be claimed against your tax bill, thus saving you money. However, claiming does require some discipline. There are different methods like the ATO cents per km and logbook methods to choose from. This guide will help you decide which car expense deduction method is right for your small business.

A car expense is a cost associated with the running of a car and can include fuel, tyres, servicing, repairs, insurance, tolls, parking, registration, hiring, interest on vehicle loans, lease payments and depreciation. A work-related expense is one that is incurred whilst performing your job.

WHY should I bother?

To claim a motor vehicle expense, you must be able to provide the Australian Tax Office (ATO) a sound justification for the kilometres that you travelled for work purposes. Unfortunately, just because you have a work vehicle that may even advertise your services on the side, it does not mean you can claim 100% of its costs. The ATO is looking to understand how much you used this vehicle for business purposes versus private usage. So, unfortunately, the trip down to the beach in the ute is unlikely to be a tax deduction.

When you add up the costs of owning and running a vehicle, these costs can run up to hundreds of dollars a week. Over a year, that is thousands of dollars. If some of this can be claimed, it is much better in your pocket.

WHAT can I claim as car expenses?

Claimable work travel includes:

Travel between work locations
Travel to a customer
Travel to pick up work equipment or supplies
Travel to work-related conferences and training courses

Travel from your home to work is not a tax deduction. This includes travel where you may do minor work-related tasks such as collecting mail. Travel from home to work can be claimed where:

You are a home-based business, so any business travel can be claimed such as visiting the bank or accountant.
You need to transport bulky items to and from their usual place of work where there is no reasonably secure storage provided on-site. For example, a tradie van or ute contains the tools of the trade.
You need to travel to a different location for business purposes, such as a customer meeting before or after work.
You are on-call, and thus your work has commenced before you leave your home. This would include emergency services, medical staff and after hour repair technicians.

HOW do I claim car expenses?

There are three ATO methods to claim motor vehicle expenses:

1. Cents per km method
2. Logbook method
3. Actual cost method

You may only use one method per year per vehicle.

If you are a Sole Trader or Partnership, you can choose between cents per km or the logbook method. However, if you own a motorcycle or a vehicle designed to carry either greater than one tonne or nine or more passengers, you must use the actual cost method. Thus, if you are a tradie with a one-tonne, ute you must keep actual records all year long.

If you are a Company or Trust, you also must use the actual costs method.

Cents per kilometre method

Every year you can claim up to 5000 kilometres per car based on a cents per kilometre deduction. For the 20/21 tax year, this rate is $0.72 per km. You must provide electronic or written evidence such as a diary to substantiate your kilometres travelled. We suggest you record the date, starting and ending kilometres and reason for travel. If you made a business trip in the 20/21 tax year of 32km, you could claim 32 x $0.72=$23.04.

Logbook method

The logbook method is a means to calculate the percentage of business travel versus private travel. It requires you to keep an electronic or written logbook per car for a single 12-week period within the taxation year.

As a separate exercise, you must record all your car-related expenses for that income year such as fuel and servicing expenses. Although we don’t recommend it, costs can be estimated based on odometer readings.

If over the 12 weeks you travelled 10,000 k kilometres and 6,000 were for business, then your business usage would be 60% (6,000/10,000). If your car expenses, including depreciation, were $9,000 for the income year, you could claim $5,400 ($9,000 x 60%).

The ATO states your logbook must include:

when the logbook period starts and ends
the vehicles odometer readings at the beginning and end of the logbook period
the distance the car travelled during the logbook period
kilometres travelled for each journey. If you make multiple journeys on the same day, you can record them as a single journey
- reason for the trip (business reason or private use)
- date of the journey
- odometer readings at the beginning and end of the trip
the odometer readings at the start and end of each subsequent income year your logbook is valid for
the business-use percentage for the logbook period
the brand, model, engine capacity and rego of the car.

Actual cost method

The actual cost method requires you to keep track of every journey and every cost for that vehicle whilst it is owned by the business. As part of this process, you must keep the same sort of records as per the logbook method, but for 52 weeks or the time you have owned the vehicle. The costs for the year, including depreciation, can then multiply by your actual business use percentage to work out the deduction you can claim.

If you provide a vehicle to an employee or a spouse, tax implications are best discussed with a tax accountant.

HINTS

At the time of writing, the government provides a tax incentive to write a car off in the current financial year via temporary full expensing.

If your employee uses their own car for your business, your business can claim a deduction for any motor vehicle allowances or reimbursements you pay them for their costs, such as the cost of fuel.

There are various smartphone applications available to help you keep track of vehicle expenses, just search car logbook apps in your app store. Some of these will use GPS tracking to make your input easier. The ATO also provides a handy app to keep track of vehicle trips and other business expenses and income.

If using the logbook method best not to include your 4-week driving holiday as part of the 12 week calculation period.

Information on buying vs leasing can be found here.

A guide to buying a van can be found here.

SUMMARY – work-related car expenses

Business use of a vehicle is tax-deductible. There are three methods to claim a deduction; the choice depends on your business structure and the type of vehicle you use. Accurate record-keeping is important and will make your life so much easier come tax return time. If in doubt about anything discussed in this guide, we recommend you contact your accountant or seek clarification from the ATO

Budgeting for your future

Posted on April 22, 2021 by Angus Jones

As many small businesses look for ways to bounce back from the many financial pressures experienced during the global pandemic, it can be difficult to pinpoint exactly where to start. Thus budgeting for your future is important.

Whether business leaders like it or not, a budget will be the guiding force that helps them get back on their feet and make strides towards a financially fit future.

For those looking at the best place to start, here are five ways to map out a business budget you’ll actually stick to.

1. Tally your income sources

Where are your main sources of income coming from?

Start by looking at your sales figures, and then add any other sources of income for your business throughout the month.

Do you run any additional services alongside your main product or service offering? This can all add up when it comes to funds coming into your business.

No matter how many income sources you have, it’s essential to account for any and all income flowing into your business. Then tally all those sources to get a clear picture of your total monthly income.

You may also want to differentiate between recurring and one-off income in your accounting software. If you decide to take on any external funding down the track, this will demonstrate consistent revenue to potential investors.

2. Determine fixed costs

Once you’ve sorted out your streams of income, now it’s time to get a handle on your fixed costs.

Fixed costs are any expenses that remain the same from month to month. These include your rent or mortgage, any loan repayments, as well as operating overheads like recurring equipment leasing payments, licenses, or insurances.

Are there ways you can cut down on these fixed costs? Perhaps refinancing your property mortgage or negotiating a lower interest rate for your loan might be a solution? It’s usually worth doing your research into different, more cost-effective platforms, especially in a competitive market with interest rates at record lows. Even if you don’t feel like you have time to look at your loan, it is important to always revisit your options and do your research on new products and rates in the market. Currently, with interest rates at all-time lows, it is a great time to save a significant amount of money, so it is worth allocating time to assess the options available.

3. Calculate your variable expenses

At the end of each month, work out your variable expenses. These costs don’t come with a fixed price tag and can vary in price from month to month, such as electricity, phone bills, or water bills.

These costs can often fluctuate based on usage, so it’s a good idea to go through them with a fine-tooth comb to work out which expenses you need and what ones you can opt out of. Especially if your team only works from the office flexibly instead of full-time. Still, paying for that unused Spotify subscription for office beats?

Maybe the water cooler is no longer on duty, or the fax machine is out of commission? Do you really need to order that extra box of whiteboard markers and backup printer ink? One benefit of transitioning to remote or hybrid working arrangements is that you can cut out any unnecessary expenses that you’re not using regularly anymore.

4. Set up an emergency fund

As a business owner, you’ll know that accidents, issues or a once-in-a-lifetime pandemic can happen. Whether your computer system crashes, the toaster sparks a fire or a freak flood creates water damage, you need to be prepared for any unexpected costs.

Make sure you have some extra funds (around three months worth) tucked away for a rainy day, so you have peace of mind that you’re equipped to cover any surprise costs that come your way.

5. Evaluate your budget monthly, and stick to it

Once you’ve worked out a snapshot of your profit and loss, and you can determine what needs to be covered in your monthly budget, stick to the budget and track its success.

Health-check your budget at least once a month to ensure you have more revenue coming in than costs going out.

Are you actually maintaining your budget? Or blowing it? What expenses can you minimise? Do you have extra budget to play with? Do you really need another desk plant or novelty mug to get the job done? (spoiler: you don’t).

Again, for those businesses eventually looking to raise capital, demonstrating the ability to maintain a lean-burn rate is gold to investors.

In order to be profitable and accurately budget for the future, it’s important to make the necessary adjustments and be realistic with your financial picture.

6. Make your money work for you

As a business owner, you will always have expenses, it is part of running a company, but that doesn’t mean that it needs to be a dead cost for the business.

It is always a good idea to look at your options and think of ways to make your money work better for you.

Think about different ways to manage your cash flow. Always consider taking advantage of loyalty points and how you can use your business expenses to gain rewards through the loyalty programs on offer.

By Brodie Haupt, CEO and co-founder of digital lending and payments provider WLTH

For more tips on budgeting for the future, see Small Business Answers various guides here.

Set up a Wi-Fi network

Posted on March 31, 2021 by Angus Jones

Before you find someone to help you set up a Wi-Fi network, you will be pleased to know that the process is extremely easy. In this guide, we will look at the possibilities and help you decide what to buy and how to set it up to ensure the best productivity.

Wi-Fi is a wireless sharing technology that allows devices such as computers (laptops and desktops), smartphones and other equipment (printers and video cameras) to connect to the Internet.

WHY should I have a Wi-Fi network?

Suppose you are transferring large amounts of data, or you need a mission-critical connection to the internet. In that case, you should not have a Wi-Fi connection, you should instead use a cable connection to your modem or Wi-Fi router. An ethernet cable will allow faster transfer speeds and a more reliable connection.

However, if you want to seamlessly move to different places in your home or office without being tied to cables, Wi-Fi is a must. Wi-Fi encourages collaboration but, most importantly, simplicity rather than having to do expensive hardware and cabling installs.

If you run a business where your guest might benefit from Wi-Fi, it is also simple to provide them with access to the internet, but not access your private computer resources and files.

WHAT do I need to set up a Wi-Fi network?

Small Business Answers have a separate article on setting up a computer network covering all the higher-level information you need to understand.

Steps to set up a Wi-Fi network:

You will need to sign up for an Internet plan where you should consider what speed and capacity will suit your needs
Buy a wireless router. A wireless router is a device that does two key functions. The router function allows a single internet connection provided by a modem (device to connect you to the internet) to be distributed across many devices. It is very simplistically like a single power point and adding a power board – you can now plug more things in. The wireless function allows a radio connection of devices without any cables, thus wireless. The connected device like a Notebook will, of course, need its own power source like a battery.
Connect your wireless router to your modem with the supplied ethernet cable.
Set up your wireless router. See the next section for more details.
Connect your devices with a password to your router (more details below). Password protection does two things. First, it stops just anyone connecting to your network, like neighbours or some random person using your network to download movies. Secondly, it prevents others from getting unauthorised access to your network, which might allow them access to private information. More details on internet security can be found in this guide.
Decide who else will have access and under any restrictions.

Which wireless router should I buy?

Our sister site www.Gadgetguy.com.au has reviews on various models to help you decide. Your friendly office supply or consumer electronics store will also have some good advice.

There are some different types you need to understand first:

4G/5G router – different from others as it uses the mobile phone network to access the internet. No broadband connection required, and it will work anywhere there is mobile phone coverage. Internet access will, however, be more expensive.
Standard Wireless router – most common and economical solution.
Wi-Fi mesh router – provides multiple units that enable a much greater coverage area in your place of work with a seamless transfer from one mesh unit to the next. This means a more reliable internet connection for the user.
Business access points and small business solutions – Specific products designed for larger offices or to give Wi-Fi access to customers. There is a simple unit from Netgear called an Orbi Pro. Beyond this, we suggest you seek professional advice.

A wireless router may have been provided to you by your internet provider. These routers are generally the most basic models and may not work as well as a product bought for the purpose. It may lack coverage, capacity (number of connected devices) and speed of transfer.

HOW do I set up a wireless router?

Before you break into a sweat, a simple setup will require you to

Configure a Wi-Fi Router

Select a central location for the router
Connect the supplied ethernet cable from your router to the internet modem
Connect to a power point and turn it on if it has a switch
Look on the bottom/back of the unit for a network name (SSID) and password. The preconfigured name and password will be unique to your router
On your PC or phone, select WI-FI and look for a match to your new router’s network name. Select and add the password
You are now connected

Advanced setup:

Your router will come with instructions that will allow you to make more customisation to your router settings. These will include more complicated setups like a mesh router and directions on downloading an app to your smartphone to assist with the installation and administration process. You will be able to change your network name and password, alter security restrictions or limitations to groups or individuals and the ability to set up a guest network.

A guest network is a key feature you should enable on your router. This means any visitors to your business can benefit from access to the internet but not have access to your printers, shared file systems, POS units etc. Within the router setup menu, which can be reached by either the provided app or by entering a sequence of numbers (IP address) into your connected internet browser (instructions in the router box). Once connected, select the Wi-Fi or wireless section and enable a guest network. Here you can give the separate network a name and password, which you can then provide to your customers.

HINTS

If you do need additional support, see our guide to IT support.

A standard wireless routers coverage can be increased using a Wi-Fi extender which increases the distance covered from the router but by using a different Wi-Fi network name. This is not as simple as a mesh solution but a cheaper way of extending coverage. See our guide on how to improve your Wi-Fi

SUMMARY – Set up a Wi-Fi network

A wireless router will enable you to wirelessly connect your devices to the internet like a PC. This simple device removes the need for cabling and allows mobility within your business premise. A router may be supplied by your internet provider. Still, a higher quality unity easily available from a local retailer is more likely to provide a more productive result. Simple setup can be done in minutes by a novice with more advanced configurations allowing you greater security and control as well as allowing you to set up a 2^nd network for visitors, excluding them any access to your private resources.

How to Invoice

Posted on March 31, 2021 by Angus Jones

As a small business owner, you need to keep track of how much money is coming in and how much money is going out. The collection and creation of invoices is a key way to achieve this. Thus you need to know how to invoice.

In this guide, we will look at why, in most cases, legally, you must provide invoices to your customers and how you go about creating one. We will also look at when and how you want to get paid.

An invoice is a time-imprinted business document that itemises and records a transaction between a seller and a buyer. If the goods or services were purchased on credit, the invoice usually specifies the terms of the deal and provides information on the available methods of payment.

WHY should I invoice my customers?

If your business turnover exceeds $75,000, you must register for and pay GST. See our guide on GST. When you make a sale of $82.50 or more, including GST, you must issue an invoice.

If your business has a turnover of less than $75,000, your customers may demand an invoice, and even if they don’t, it is simply good business practice. We have written a comprehensive guide on Record Keeping.

Legally you must keep a copy of your invoices for 5 years. This can be a paper copy or electronic. These copies will help you fill out your BAS.

If a customer requests an invoice, you must provide it in under 28 days.

WHAT terms should I offer my customers?

Before we look at the invoice itself, a very important decision needs to be made about whether you will offer your customers any credit. This is when you expect to get paid for the goods or services that you are providing. Options include:

Deposit – You require a percentage of the total upfront to start work
Cash on delivery – full payment is made at the time of delivery of the product
Payment on completion of work – full payment is made at the time of completing a service
Progress payments – a schedule of payments normally with milestones are set through the project
Credit terms – the customer is given a set number of days to pay
Discount for early payment – You offer an incentive or discount to pay an invoice early, like a 5% discount if they pay within 7 days

Ideally, you get paid early or at the time of delivery, however, many businesses will not accept that if you want to do business with them. Unfortunately, some companies have conditions whereby you have to accept terms of up to 120 days if you want their business. This is robbery, and the norm would be 30 days. The longer a business takes to pay you helps their balance sheet, the quicker you get paid helps your balance sheet.

You will also need to decide what payment methods you will accept. A bank transfer will be the most attractive as it will not attract fees, you don’t have to handle cash, and the money should move to your account within 24 hours. Cash will require you to visit the bank. If you decide to accept a credit card or Buy Now Pay Later (BNPL – for example PayPal), you will get the money straight away, but you will have to pay a merchant fee in the form of a percentage of the transaction. This payment form is convenient for the customer and will get the money to you fast.

Whatever form of payment or payment terms you decide to use, you will need to consider when building your cost model.

HOW to invoice

By far, the easiest way to produce an invoice is through an accounting package. If you create one manually, this can easily be done using a spreadsheet or word processing application. You will find many templates available in those applications, as well as downloadable templates from the internet.

In Australia, an invoice must include:

the heading “tax invoice”
Your business or trading name
your Australian business number (ABN)
date of the invoice
a description of the items sold, including the units (hours or goods) and price
the GST amount– this can be shown separately or, if the GST amount is exactly one-eleventh of the total price, a statement which states ‘Total price includes GST’ (only applies if you are liable for GST)
If the invoice is over $1,000, including GST, you must also include the buyers’ identity or ABN

Example

Tax Invoice

Freds Shop 17 Fake St
ABN: 32 123 456 789 Your Town State Postcode

Date: 25 March 2021

To:         Valuable customer
              56 Down Rd
              Town State Postcode

Description                                                   Quantity             Total
Widgets                                                          1                           $40.00
Labour                                                            2hrs                     $80.00

Total Price including GST $132
GST $12.00

HINTS

Now you have created your invoice, you need to send it to your customer, with the most common form these days being via email. Ensure you have the right contact, and it is also worth copying it to a company’s accounts payable team. You can, of course, hand-deliver or post.

If your customers do not pay your invoices, read more about your options in our guide on bad debts.

The tax office provides guides on requirements for tax invoices here.

SUMMARY – How to Invoice

Accurate invoicing will help you keep your business in check and the ATO happy. An invoice can be easily created. You can use an accounting package to help with the greater task of managing to invoice and your accounts. If your turnover exceeds $75,000, you must provide invoices that specify GST. Invoices are not required for amounts less than $82.50, including GST.

How to Improve Wi-Fi

Posted on February 26, 2021 by Angus Jones

We rely so heavily on Internet connections these days, and we are quick to blame the broadband provider when it does not work. However, the question you should be really asking is How to improve Wi-Fi?

WiFi a wireless radio transmission allowing computers, tablets, smartphones, Printers, Camera’s and other WiFi enabled devices to connect to the internet or communicate with one another within a set area.

WHY should I worry about Wi-Fi black spots?

Wi-Fi is designed for in-building use with a range of about 10 to 30 meters. Its range is such as to not interfere with someone else’s Wi-Fi network in the next building. Wi-Fi is unlikely to pass through water or thick steel but can pass through walls which will reduce the signal strength.

The better the connection you have (signal strength), the more reliable and faster your connection will be. Remember, though, your internet connection will never be faster than the broadband plan you have subscribed to. See our guide on Internet Plans and Provision.

WHAT do I need for Wi-Fi?

Everything you need to know about setting up a Wi-Fi router and a computer network can be found in this guide.

HOW to Improve Wi-Fi?

Our sister publication has created a simple guide for improving Wi-Fi performance.

Place your Router in the middle of all the Wi-Fi action
The best place to position your Wi-Fi router will be in the centre of where the devices (or people) are located in your office.
Connect data guzzlers to your Router by Ethernet cable
Your Router will have some ethernet plugs on the back of it. Any device that uses lots of data like a network backup drive or a busy printer may be best directly connected via an ethernet cable.
If your place of business is dual-level or longer than 30m, you need Wi-Fi extenders
Some Wi-Fi routers are better than others at transmitting; however, the 10m to 30m limit is real, so a product called a Wi-Fi extender placed within the range of the Wi-Fi router will then extend the coverage a further 10 to 30m.
The trick is Ethernet backhaul – not Mesh Wi-Fi
Referring back to point 3. A long ethernet cable plugged into the Wi-Fi extender (especially if out of Wi-Fi range) will provide you coverage at a greater distance and at a faster speed.

HINTS – How to improve Wi-Fi

A speed test like www.speedtest.net will give you an indication of what speed your internet is running at. Do a test with a PC connected by ethernet cable directly to your Router, then do a test over Wi-Fi. This will show you what the best case is and if you have a problem. The faster speed is better.

Visit Gadget Guy to read the one-page guide on Kill Wi-Fi blackspots in 5 simple steps

SUMMARY – Improve Internet speed

Put simply, if you have poor internet, look for a solution. We suggest you start by understanding your broadband plan speed. Test its actual speed, then the speeds of your Wi-Fi connected devices in your office.

You will be pleasantly surprised by the effect of fast internet on your and any employee’s productivity.

Website design for subscribers, leads, and sales

Posted on February 1, 2021 by Angus Jones

Website design is critical for your business success. When you open a web page, do you read it or do you scan it? We all want instant gratification to quickly find what we want. A well-designed website will engage readers and help you achieve your goals. This guide will look at why web design is essential and look at what you should consider to get the best result.

Web design can be defined two ways.
1. Referring to the design of the website displayed on the internet and the consumer experience. The experience of viewing the page includes its layout, the content contained and the graphic design.
2. To create and maintain a website using a process of planning, conceptualising and arranging content. Website design uses specialised software and templates combined with human creativity.

WHY should I care about good website design?

The best layouts for sales are deeply influenced by conversion science (study of converting a user’s interest into a sale). This means layouts are critical for marketers who want more subscribers, leads, and sales.

A visitor’s first impression of your website is critical! Layout and design are what influences that first impression.

More than 90% of first-impressions are design-driven. A visitor will form an opinion of your site in less than a second.

A recent study indicates that nearly 50% of all web visitors will decide if your site is worth their time based on design alone.

Colours and graphics contribute to a website’s design. Still, it is the layout that is most important when it comes to user experience and digital conversions.

WHAT makes a good website?

Simple to use – users should not have to work out how to use it
Intuitive – makes information easy to find
Streamline – marketing fluff or clutter is removed
Engagement – convince readers you are worthy of their time
Easy to read – simple text and layout means lazy readers will absorb
Consistency – colours, fonts, and imagery are consistent and on-brand helping visitors connect with you
Responsive – ensures superior experience no matter if consumed on a desktop, tablet or a mobile
Fast – our patience is stretched if a web page takes too long to load

For information on steps to create a website refer to our guide to building a website to boost your brand

HOW do I ensure my website design is effective?

Let’s face it, not all of us are creative, and if we are, we may not then have the skill set to briefly explain a product or service. The net result is web design takes a specific set of skills that may collaborate with several individuals with different abilities.

Web design has become much simpler with the availability of user-friendly software tools and the availability of template-based building tools. You have many options to do it yourself or completely outsource the project to something in the middle, like getting some help with some graphics. See our guide on graphic design.

Some key practical attributes of a good website:

Use lots of white space to highlight the headline and call-to-action
If the visitor wants to learn more, they can scroll down
Simple (cut-down) menu that makes finding what you need simple and intuitive
Show an example of the solution at work
Visitors can understand why they would need the solution, which helps to push the conversion
Have a call to action that is static – it’s always prominent, even as visitors scroll down and continue to read
Keep the menu static, so readers always have access to other content
Ensure the layout is pleasing and easy to read so visitors will be engaged
Use clearly marked headings with simple explanations and links for more info
Have information to learn enough to drive a conversion based on someone skimming
Use words and images that will draw attention
At the bottom of a page list out links that make it easy to navigate the site with minimum clicks and scrolling
Put essential information above the fold requiring little visitor input (landing page info on screen)
Ensure your menu items are simple to understand, and you should have a practical website layout to drive more sales
Video can be an effective way to tell a story quickly. Ensure the video is short and clearly explains a customer benefit
Use pop-ups to collect customer data and consider an exit pop-up to reignite interest in your site

HINTS

Good web design is only part of the equation of having a successful business. If you have a product that no one wants or your pricing is not right, the best website is unlikely to solve this. For more helpful info see our guide on marketing to grow your business.

You need to be credible. The design will get you eyeballs, but you will never see them again unless your content is of high quality and relevant to the reader.

Don’t be afraid to use offers. This offer could relate to price, availability, bonuses etc. There is a reason year after year, retailers use sales to boost sales.

Test your new site. Ask family friends, business associates etc. to look at your new site and give their frank feedback. Don’t accept the answer “Good” ask them specific questions.

SUMMARY – Website to drive sales

Having a website and something to sell is a start, but that website must be engaging to attract a buyer to look further and persuasive to help you close a sale. You can do some simple things with the website layout, content, and graphic design to give your site an unfair advantage over your competitors.

Tips to improve your business cyber health

Posted on December 3, 2020 by Angus Jones

Many small businesses are struggling with taking the first steps to improve their cyber health.

Australian SMEs know cybersecurity is important, regardless of how they rate their understanding of it. However, they face significant barriers when attempting to implement good cybersecurity practices, with 62% of SMEs, revealing they have experienced a cybersecurity incident (ACSC).

Mallika Sathi, Vice President, Cyber Security & Intelligence Solutions & Digital Identity at Mastercard APAC, has shared her top tips for small businesses to improve their cyber health.

Small businesses can also access the Global Cyber Alliance toolkit, which is a free and effective tool business can use today to take immediate action to reduce risk.

Additionally, earlier this year, Mastercard launched the Getting Back to Small Business campaign that gives business peace of mind that as they navigate and adapt to the new normal, their businesses and their consumers are safe and secure.

The Getting Back to Small Business program offers support to businesses ranging from setting up their online retail front and ensuring their cyber health is in check, to securing payments for consumers and enhancing checkout security, and everything in between.

Cyber Health top tips from Mallika:

Use strong passwords: Use strong, unique passwords for each online account and update them regularly – don’t store passwords on your computer.
Knowledge is power: Know who you are dealing with online. Check that you are dealing with a trusted, reliable business or supplier by confirming their company details and researching online feedback and complaints.
Multi-factor authentication: Small businesses should implement MFA wherever possible. The multiple layers make it much harder for criminals to attack your business. When paying anyone externally, this will ensure the transactions are secure.
Scam awareness: Even large or small businesses can be victims of scams. Protect yourself and your business by being aware of the common scams targeting small businesses. Fraudsters are using very sophisticated phishing emails to steal data or download malware to your computer.
Security Tools: Install security software for your business to minimise fraud and reduce chargebacks costs & customer disputes. Protect against the ever-changing cyber threats and remember to back-up your computer and mobile devices regularly.
Educate yourself: Being prepared for a data breach is a must for businesses of all sizes. Small businesses need to have a data breach response checklist in place to ensure they understand the steps to take.

For more information see our handy guide on Internet Security and protecting from cyber threat.

Catch how 2 brothers built a billion-$ business from scratch

Posted on December 3, 2020 by Angus Jones

How do two immigrant brothers with no money, limited industry knowledge and amateur technical skills build some of Australia’s most successful digital businesses, with a combined exit valued at more than $1 billion?
It’s a good question. It’s one Gabby, and Hezi Leibovich gets asked every day, which is why they wrote their new book, Catch of the Decade.
You may not have heard of these men! You probably won’t recognise their faces, but you’ll almost certainly know some of the brands they built, sold or merged for more than $1 billion after just 13 years in business.

Here are just a few of them:

Catchoftheday: Australia’s most popular shopping site
EatNow/Menulog: an app that revolutionised the food delivery business
Scoopon: a major disruptor in the services and entertainment sector
Luxury Escapes: a travel deal site that made luxury travel affordable for all.

How did you come up with the idea of Catch?

Gabby: From selling at the market, we graduated to operating little eBay stores out of our garages. We were doing okay, but we were up against the likes of Deals Direct and just didn’t have the budget or resources to compete. We knew we needed a point of difference. We were always reading, watching and listening to everything going on in our industry. So when a friend of ours told us about Woot, a US-based daily deals concept website, we thought maybe we could do the same in Australia.

What was the Woot concept?

Hezi: Woot was a deals site that sold one product every day at midnight. The deal lasted for 24 hours, and then the sale was over. The website was written with a cool style of copywriting that was both arrogant and funny and had an ‘I don’t give a shit’ vibe to it, which we really liked. The prices they offered were so good, the items would sell out within hours, often in minutes! We liked the concept a lot. The best part? No-one in Australia had ever heard of Woot, so the concept was wide open for us to launch in Australia. Our motto had always been ‘better to copy and excel than to be original and mediocre’, and this was no different.

What was one of the biggest challenges you faced when building Catch of the Day?

Gabby: Getting the big, prestigious brands to sell to us. Believe it or not, they’d say, ‘We can’t sell to you because you don’t have bricks and mortar presence.’ In other words, we didn’t have a door! Can you believe how stupid that was! The reality was, they just didn’t understand what online business was. Very few did when we started. We were ahead of the curve.

Was there a moment in your business journey when everything changed?

Gabby: Yes, it was when the computer industry saw sense and decided that they would let us sell their products on our Catch of the Day website.

What did you do to convince them?

Gabby: There was a big supplier expo event being held by Ingram Micro, a powerful industry distributor. We weren’t invited, but I decided to go anyway. I brought with me a hundred A4 fliers about Catch of the Day to hand out to everyone. I wore my suit (I never wear suits, but I had to look the part!), got in, and went to work, handing out my flier to all the suppliers. It worked like magic. The next day we were inundated with calls from big brands like Toshiba, Asus, Canon and others saying, ‘please sell our products’. After that, we never had any difficulty getting quality brands to sell to us.

What did you learn from this experience?

Gabby: That’s there’s always a way. Our dad had a saying: “If the front door and the back door are closed, try another door. There’s always a third door.’

How did the Catch website get started?

Hezi: We hired a programmer we found for $1500 on Odesk who lived in some remote Ukrainian village. It was going well until we were ready to launch: the guy just suddenly disappeared, and we couldn’t get in touch with him for a week. I remember having sleepless nights. I thought he’d run off with all the code and our money and was now sipping piña coladas in some bar in Kiev. Every hour during the night, I would turn on my laptop in bed to see if he had written to explain what had happened, but there was nothing. I started to lose hope. Then, one morning a few days later, I got a message from him, apologising and explaining that his village got flooded. He’d lost all power for a few days, and he couldn’t contact us. Turns out, he was an honest man. A great developer? Not so much. But it got us started.

As the business grew, what did a typical day look like for the founders of Catch?

Hezi: A typical day for us would look something like this: upon waking, we’d check our emails. We’d drive to the office, be at our desks by 8 am, solve the problems from the night before (we were a 24/7 business), attend a supplier meeting at 9 am, juggle a thousand different balls and decisions throughout the morning, eat a hurried lunch at our desk, have more meetings with suppliers in the afternoon, head home at 8 pm, have a quick dinner, kiss the kids, say hello to our wives, hit the desk for another few hours, answer more emails and have team discussions on Messenger, get to bed around 1 am and then get up and do it all again the next day. You could say we ‘bootstrapped’ it.

What advice would you give to people wanting to launch their own websites or their own business?

Gabby: Execute quickly. We have a policy at Catch that has guided our every action: ‘Decide by midnight, execute by midday.’ Don’t wait for perfection, because there’s no such thing, and never forget that the first draft of everything is shit. Looking back, the web page we launched was terrible. It’s embarrassing really, but that’s what got us started. It was super basic: just a simple logo of a fisherman, a counter that counted down from 24 hours, a single product and a product description with a sales spiel that walked the chutzpah line of bold, arrogant and blatant.

Hezi: Take our advice and just focus on the features that make the product work, that distinguish it in the market, and release it quickly to capture the opportunity. All the rest, the ‘nice-to-have’ features, can come later. Put it this way: if you’re happy with your first draft, you’ve launched too late.

5 ways to be a better buyer

While you’ve either got the talent or you ain’t, here are a few strategies from Gabby and Hezi that will make you a better buyer.

Be curious: read sales catalogues, check out the industry journals in your sector, listen to podcasts, or if you’re in retail, just walk through shopping centres and have a look around. Curiosity goes hand in hand with learning; the more you immerse yourself in your niche, the more educated you will become.
Know your category: Knowledge allows you to spot a deal the moment it comes your way. Great entrepreneurial companies and individuals always ask ‘why?’, and that curiosity powers their creativity.
Be honest: Do the right thing. This is the quickest way to build trust. If you’re a jerk, the word will quickly get around. We always believed that honesty (and integrity) are the best policies.
Build a relationship with your seller: Try to get face to face with your customers as often as possible, or Zoom them if you can’t meet in person. Try to get off email as quickly as you can. Everyone prefers to deal with a friend rather than just a faceless executive hiding behind a computer.
Pay your suppliers on time: Even better, pay them ahead of time. They’ll never forget you.

Catch of the Decade is out now. Find out more at www.catchofthedecade.com.au.

If this story has inspired you to start a business yourself find out more with our guide to Start a Small business